ADMINISTRATION AGREEMENT



            Agreement dated as of March 14, 2005 by and among State Street Bank

and Trust Company, a Massachusetts trust company (the "Administrator"), the

Value Line Funds listed on Schedule A (each, a "Fund" and collectively, the

"Funds") and Value Line, Inc. (the "Adviser").



            WHEREAS, each Fund is registered as an open-end, management

investment company under the Investment Company Act of 1940, as amended (the

"1940 Act"), offering shares in one or more portfolios listed on Schedule A

(each such portfolio shall be included, as applicable, in the terms "Fund" or

"Funds" as used herein);



            WHEREAS, the Funds desire to retain the Administrator to furnish

certain administrative services to the Funds, and the Administrator is willing

to furnish such services, on the terms and conditions hereinafter set forth; and



            WHEREAS, the Adviser serves as the investment adviser to each Fund

and desires to enter into this Agreement for the limited purposes set forth in

Sections 5, 6, 7 and 13(d).



            NOW, THEREFORE, in consideration of the premises and mutual

covenants herein contained, the parties hereto agree as follows:



1.    APPOINTMENT OF ADMINISTRATOR



            The Funds hereby appoint the Administrator to perform the services

described herein with respect to the Funds for purposes of providing certain

administrative services for the period and on the terms set forth in this

Agreement. The Administrator accepts such appointment and agrees to render the

services stated herein.



            In the event that the Funds wish to retain the Administrator to act

as administrator hereunder with respect to additional portfolios or funds

("Additional Funds") hereinafter established by the Funds or by other management

investment companies that are advised by the Adviser, the Administrator shall be

notified in writing. Upon written acceptance by the Administrator, such

Additional Fund shall become subject to the provisions of this Agreement to the

same extent as the existing Funds, except to the extent that such provisions

(including those relating to the compensation and expenses payable by the Funds)

may be modified with respect to each Additional Fund in writing by the

Additional Fund and the Administrator prior to the time of the addition of the

Additional Fund.



2.    DELIVERY OF DOCUMENTS



            Each Fund will promptly deliver to the Administrator copies of each

of the following documents and all future amendments and supplements, if any:



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            a.    The Fund's Articles of Incorporation or Declaration of Trust,

                  as applicable, and by-laws;



            b.    The Fund's currently effective registration statement under

                  the Securities Act of 1933, as amended (the "1933 Act"), and

                  the 1940 Act and the Fund's Prospectus(es) and Statement(s) of

                  Additional Information relating to all portfolios and all

                  amendments and supplements thereto as in effect from time to

                  time;



            c.    Certified copies of the resolutions of the Board of

                  Directors/Trustees of the Fund (the "Board") authorizing (1)

                  the Fund to enter into this Agreement and (2) certain

                  individuals on behalf of the Fund to (a) give instructions to

                  the Administrator pursuant to this Agreement and (b) sign

                  checks and pay expenses;



            d.    A copy of the investment advisory agreement between the Fund

                  and the Adviser; and



            e.    Such other certificates, documents or opinions which the

                  Administrator may, in its reasonable discretion, deem

                  necessary or appropriate in the proper performance of its

                  duties.



3.    REPRESENTATIONS AND WARRANTIES OF THE ADMINISTRATOR



            The Administrator represents and warrants to each Fund that:



            a.    It is a Massachusetts trust company, duly organized and

                  existing under the laws of The Commonwealth of Massachusetts;



            b.    It has the corporate power and authority to carry on its

                  business in The Commonwealth of Massachusetts;



            c.    All requisite corporate proceedings have been taken to

                  authorize it to enter into and perform this Agreement;



            d.    No legal or administrative proceedings have been instituted or

                  threatened which would impair the Administrator's ability to

                  perform its duties and obligations under this Agreement; and



            e.    Its entrance into this Agreement shall not cause a material

                  breach or be in material conflict with any other agreement or

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