Horizon Kinetics Asset Management LLC

Item 5    Fees and Compensation

HKAM’s advisory fee schedules are based on, among other things, the type of investment product.

Kinetics Mutual Funds, Inc. Fees

The Firm receives a management fee based on the assets under management in client accounts. Fees from KMFs
are deducted and paid monthly in arrears pursuant to the investment advisory agreement between the Firm and
KMFs.

The Firm receives a management fee of between 0.90% and 1.25% of the assets under management for its services
as investment manager to KMFs. The complete list of expenses attributable to each fund is located in each fund’s
most recent prospectus, which can be accessed here: www.kineticsfunds.com.

Investors holding shares of KMF are subject to certain fees and expenses, which primarily consist of brokerage and
transaction fees charged by executing brokers, administration fees charged by the administrator, and audit fees
charged by the auditor. Investors should consult the prospectus of KMF for a complete list of fees and expenses
relating to an investment. There may also be fees for exchange fees, SEC fees, advisory and administrative fees
charged by mutual fund companies and exchange-traded funds held in the portfolios, custodial fees, transfer taxes,
wire transfer and electronic fund processing fees, and commissions or mark-ups/mark-downs on security
transactions. Many fees, including custodian, audit and administrative fees may be negotiated between KMFs and
the service provider.

Separately Managed Account Fees

The Firm’s fee schedule for SMAs distinguishes between private clients and institutional accounts. Institutional
accounts are generally those that invest a minimum of $5 million. Fees are generally paid directly or deducted
from a client’s account quarterly, in arrears, although certain clients may elect to pay the Firm in advance. Clients
invested through wrap programs sponsored by third party financial institutions generally pay the wrap program
sponsor and/or custodian directly. In that instance, the Firm receives its fee from the sponsor and/or custodian.

The Firm reserves the right to negotiate minimum account size, dependent upon various factors, including, but not
limited to, the scope of the advisory services provided, economies of scale, the expectation of future assets, and
any historic relationship with HKAM. Certain types of delivery versus payment (DVP) arrangements may result
in higher minimums than those stated.

Fees for client accounts are generally based on the market value of the assets under management in accordance
with the schedules stated below. Certain Custom Accounts may charge fees that are higher or lower than other
accounts that have holdings similar to the strategies listed below.

The Firm may also offer strategies that impose a performance fee (also referred to as an incentive fee). A
performance fee is a fee based on a share of capital gains on, or capital appreciation of, the assets of an account.
Performance fees are generally deducted from an investors account annually, at the end of every calendar year, but
may also be deducted quarterly. Performance fees may also be subject to a “high water mark,” or other “hurdle
rate,” pursuant to the investment management agreement.

Fees may be assessed either monthly or quarterly (the “accounting period”), using a 365-day calendar, and either
in advance or in arrears, in accordance with the terms of the offering memorandum, client’s investment management
agreement and/or the practices of the sponsor program servicing the client account. Typically, clients authorize the
deduction of fees from their accounts; however, certain clients may choose to be billed directly.

Fees are generally calculated based on the period-end market value of all assets in the client account, including
securities, cash and cash equivalents. Security values are determined in accordance with HKAM’s written pricing
policies and procedures which primarily rely on pricing from independent third-party sources but may be made by
HKAM where such third-party pricing is not available or where it reasonably believes third-party prices are

incorrect. Fees for accounts that are active for partial accounting periods are prorated, based on the number of days
the account was open.

Clients with a portion of their separately managed account assets invested in KMF, the Renn Fund, the ETFs or the
private funds managed by HKAM are not charged a fee on the portion of their account invested in such products.
However, accounts that hold funds managed by HKAM will incur the costs related to being a shareholder in such
funds, including management fees, administrative fees, and other similar fees as described in each products’
applicable offering documents. The annual total net expense ratio for a particular fund may be higher or lower than
the management fee HKAM charges for an investment account.

Clients may pay investment management fees in advance; however, HKAM does not require prepayment of
advisory fees. If a Client has paid fees in advance, upon termination, HKAM will remit to the Client the remaining
prorated portion of any prepaid fees.

The Firm’s basic SMA fee schedule is as follows. Please note that fees may be negotiated with certain clients.

Private Client Accounts:

      Strategy                                       Fees                            Investment Minimum
          All-Cap
          Asia Opportunities
          Core Value                                   First $5 million = 1.00%
          Japanese Special Opportunities               Next $5 million = 0.95%
          Large Cap                                    Next $15 million = 0.85%              $500,000
          Research Select                              Over $25 million = 0.75%
          Small Cap
          Spin-Off
          Strategic Value

Institutional Accounts:

Although fees may be negotiated, the Firm’s basic fee schedules and investment minimum amounts are stated
...

Item 7    Types of Clients

HKAM provides investment advice to a wide variety of clients, including but not limited to pension and profit-
sharing plans, Taft-Hartley plans, public funds, endowments and foundations, supranational entities, government-
sponsored entities, educational and healthcare facilities and other corporate entities, as well as to high-net-worth
clients through model delivery, dual-contract, and wrap fee programs. In addition, HKAM provides investment
advisory services to the following types of clients:

    1.   Kinetics Mutual Funds, Inc. a series of U.S. open-end investment companies registered under the
         Investment Company Act;

    2.   U.S. open-end investment companies registered under the Investment Company Act where the Firm
         serves as sub-adviser;

    3.   U.S. exchange traded funds registered under the Investment Company Act;

    4.   A U.S. closed-end investment company registered under the Investment Company Act;

    5.   A European UCIT, listed on the Euronext Amsterdam Stock Exchange and Euronext Dublin Stock
         Exchange;

    6.   Institutional and retail separate accounts, which are offered directly by the Firm, through third party
         financial intermediaries, and through model delivery platforms; and

    7.   Private investment funds that are appropriate for institutional and high net worth investors.

Investors in these products are required to adhere to the criteria established in the applicable Offering Documents,
prospectus, or similar offering document or investment management agreement for purposes of maintaining an
account with the Firm.

Minimum Investment Amounts

   Kinetics Mutual Funds, Inc.

KMF is set up in a master/feeder structure, except for one fund that is not part of the master/feeder structure.
Kinetics Portfolio Trust, a statutory trust organized pursuant to a Declaration of Trust under the laws of the State
of Delaware, was established in 2000 and is comprised of a series of mutual funds, certain of which are non-
diversified, and others of which are diversified. KMF is a Maryland corporation established in 1999 that is
comprised of open-end management investment companies. Each fund is a feeder fund that invests all of its
investable assets in a corresponding “master” portfolio.

The minimum investment for all but the institutional classes of KMF is $2,500. Institutional class minimums are
$1,000,000. Minimums may be waived under certain circumstances as outlined in the prospectus.

   The Renn Fund, Inc.

The Renn Fund trades on the New York Stock Exchange and as such there is no minimum investment amount
attributable to the fund.

   Exchange Traded Funds

There is no minimum investment amount for the ETFs.

Separately Managed Accounts

The minimum account size for an SMA is generally $500,000; however, the Firm may allow a lesser amount in its
sole discretion. Notwithstanding the minimum account sizes referenced under Item 5 (Fees and Compensation),
the requirements for opening and maintaining a separate accounts varies based on the account’s applicable
investment management agreement. All such minimum investment size requirements listed herein vary and may
be negotiated on a case-by-case basis.

    Private Funds

Investors in the private funds are required to adhere to the criteria established in each private funds’ Offering
Documents. The minimum investment for the private funds varies whereby most funds require an investment of
greater than $250,000; however, for certain funds, the investment minimum is $25,000. Regardless of the stated
minimum, the Firm has the right to allow a lesser amount.