Kinetics Advisers LLC

Item 5 Fees and Compensation

Generally, the Firm generally receives a management fee and a performance fee (also referred to as an incentive fee)
for the management of assets. A management fee is the fee the Firm charges on Fund assets and is generally
deducted from an investor’s capital account monthly, in arrears. A performance fee is a fee based on a share of
capital gains on, or capital appreciation of, the assets of a Fund. Performance fees are generally deducted from an
investor’s capital 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 Offering
Documents of the Fund. Performance fees are further described under Item 6 of this Brochure. Management and
performance fees may be subject to waiver by the Firm in certain instances including, but not limited to, investments
by Employees and owners of the Firm.

Investors in the Private Funds will incur brokerage and other transaction costs as noted below and under Item 12 of
this Brochure. Investors in the Private Funds are subject to certain fees and expenses of the Funds, which primarily
consist of custodial and/or prime brokerage fees charged by custodian(s), administration fees charged by
administrator(s), audit fees charged by auditor(s), and brokerage commissions and transaction fees charged by
broker-dealers. The Firm does not receive, directly or indirectly, any of these fees. Per each Funds’ Offering
Documents, these fees may also include, exchange fees, SEC fees, transfer taxes, wire transfer and electronic fund
processing fees, and commissions or mark-ups/mark-downs on security transactions. Fees, including custodial, audit
and administration fees may be negotiated between the Private Funds and the respective party.

Supervised persons (defined as any officers, partners, directors or other persons occupying a similar status or
performing similar functions, or employees, or other persons who provide investment advice on the Firm’s behalf
and are subject to the Firm’s supervision and control) are not compensated on the sale of securities or other
investment products; however, as noted under Item 10, KBD, an affiliate of the Firm, has a contractual agreement
with the Firm (or its affiliate) for the payment of fees for the referral of investors to the Private Funds. Similarly, the
Firm has contractual agreements with other third-party marketers as further described under Item 10 of this
Brochure. KBD is a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory
Authority (“FINRA”). Any fees paid to KBD or third-party marketers are paid directly by the Firm and are not paid
by investors in the Private Funds.

Some Private Fund investors, including employees of the Firm, may negotiate or be entitled to terms and conditions
that differ from those of other Private Fund investors with respect to fees and other provisions. Private investment
funds are not appropriate for all investors. Eligible prospective investors and current investors may refer to each
Private Fund’s Offering Documents for a complete list of risks, expenses, investment minimums and other important
information.

Item 7       Types of Clients

The Firm generally provides investment advisory services to private funds, which are exempt from registration
under the Investment Company Act of 1940 (the “Investment Company Act”). Investors in the Private Funds may
be comprised of individuals, trusts, banks, investment companies, pension and profit-sharing plans, endowments and
foundations, corporations, partnerships and certain other foreign entities.

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.