WAIVER AND REIMBURSEMENT AGREEMENT
Agreement
(“Agreement”) dated as of the 27th day of April 2006 by and between
Kinetics Mutual Funds, Inc. (“Kinetics Mutual Funds”), a Maryland corporation
and a registered investment company under the Investment Company Act of 1940,
as
amended, and Kinetics Asset Management, Inc. (the “Adviser”).
BACKGROUND
Kinetics
Mutual Funds offers, or will offer, an Institutional Class in each of its
Internet Fund, Internet Emerging Growth Fund, Paradigm Fund, Medical Fund,
Small
Cap Opportunities Fund and Market Opportunities Fund (together, “Kinetics
Funds”).
The
Kinetics Funds are feeder funds that invest all their assets in corresponding
master portfolios of Kinetics Portfolios Trust.
The
Adviser serves as investment adviser to each master portfolio of Kinetics
Portfolios Trust pursuant to Investment Advisory Agreements between the Adviser
and Kinetics Portfolios Trust dated as of May 1, 2000 (January 1, 2006 with
respect to the Market Opportunities Portfolio).
The
Adviser has or will enter into a Shareholder Servicing Agreement with Kinetics
Mutual Funds under which the Adviser may perform, or arrange for others to
perform, certain shareholder functions for the Institutional Class.
The
parties to this Agreement wish to provide for an undertaking by the Adviser
to
waive certain fees and/or reimburse expenses of Kinetics Mutual Funds’
Institutional Class.
AGREEMENT
THEREFORE,
in consideration of the foregoing, the parties intending to be legally bound
hereby, agree as follows:
The
Adviser shall, from the date of this Agreement until May 1, 2007 (May 1 of
each
renewal period if this Agreement is renewed), waive all or a portion of the
fees
under the Shareholder Servicing Agreement to which the Adviser is entitled
and/or reimburse expenses of other shareholder organizations so that the
shareholder servicing fee is no more than 0.05% of the average daily net assets
of the Institutional Class.
The
Adviser acknowledges and agrees that it shall not be entitled to collect on
or
make a claim for waived fees or reimbursed expenses at any time in the future.
This
Agreement shall be governed by and construed under the laws of the State of
Maryland, without regard to its conflict of law provisions. This Agreement
may
be signed in counterparts.
The
Waiver and Reimbursement Agreement by and between Kinetics Mutual Funds, Inc.
and the Adviser dated as of April 25, 2005 is herby terminated.
This
Agreement shall not be terminated before May 1, 2007 and will renew
automatically each fiscal year thereafter unless the Adviser or Kinetics Mutual
Funds terminates the Agreement by providing written notice to the other party
60-days prior to the beginning of Kinetics Mutual Funds’ next fiscal
year.
IN WITNESS WHEREOF, the parties hereto have caused this
instrument to be executed by their officers designated below as of the day
and
year first above written.
| KINETICS MUTUAL FUNDS, INC. | KINETICS ASSET MANAGEMENT, INC. |
| By: /s/ Xxxxx Xxxxx | By:/s/ Xxxxxx Xxxxxxxx |
