SHAREHOLDER SERVICING AGREEMENT KINETICS MUTUAL FUNDS, INC., on behalf of each of its series listed on Schedule A (the "Funds") Kinetics Asset Management, Inc. White Plains, New York 10605 Gentlemen:
SHAREHOLDER
SERVICING
AGREEMENT
KINETICS
MUTUAL FUNDS, INC.,
on
behalf of each of its series listed on Schedule A (the
"Funds")
Kinetics
Asset Management, Inc.
0000
Xxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxx
Xxxxxx, Xxx Xxxx 00000
Gentlemen:
We
herewith confirm our agreement with you as follows:
You
will
perform or arrange for others, including organizations, whose customers or
clients are shareholders of the Funds (the "Shareholder Servicing Agents")
to
perform all shareholder servicing functions and maintenance of shareholder
accounts not performed by us or by our Transfer Agent ("Shareholder Services").
You may make payments from time to time from any Shareholder Servicing Fees
(as
defined below) received under this Agreement, to defray the costs of, and to
compensate others, including Shareholder Servicing Agents with whom our
distributor has entered into written agreements, for performing Shareholder
Services.
In
consideration of your performance of the Shareholder Services, we will pay
you a
Service Fee, as defined by Article III of the Conduct Rules, of the National
Association of Securities Dealers, Inc., at the annual rate of one-quarter
of
one (0.25%) percent of the Funds' average daily net assets (the "Shareholder
Servicing Fee"). Your fee will be accrued by us daily, and will be payable
on
the last day of each calendar month for services performed hereunder during
that
month or on such other schedule as you shall request of us in writing. You
may
waive your right to any fee to which you are entitled hereunder, provided such
waiver is delivered to us in writing.
You
will
in your sole discretion determine the amount of any payments made by you to
Shareholder Servicing Agents pursuant to this Agreement, and you may from time
to time in your sole discretion increase or decrease the amount of such
payments; provided, however, that no such payment will increase the amount
which
we are required to pay to you under either this Agreement or any management
agreement between you and us, or otherwise.
You
will
be responsible for the payment of all expenses incurred by you in rendering
the
foregoing services, except that we will pay the cost of typesetting, printing
and delivering our prospectus to existing shareholders of the Funds and of
preparing and printing subscription application forms for shareholder accounts.
Payments
to Shareholder Servicing Agents to compensate them for providing shareholder
servicing and related administrative functions are subject to compliance by
them
with the terms of written agreements satisfactory to our Board of Directors
to
be entered into between our distributor and the Shareholder Servicing
Agents.
We
will
expect of you, and you will give us the benefit of, your best judgment and
efforts in rendering these services to us, and we agree as an inducement to
your
undertaking these services that you will not be liable hereunder for any mistake
of judgment or for any other cause, providing that nothing herein shall protect
you against any liability to use or to our shareholders by reason of willful
misfeasance, bad faith or gross negligence in the performance of your duties
hereunder, or by reason of your reckless disregard of your obligations and
duties hereunder.
This
Agreement will become effective on the date hereof and will remain in effect
until August 31, 2000 and, thereafter, for successive twelve (12) month periods
(computed from each May 1st), provided that such continuation is specifically
approved at least annually by vote of our Board of Directors and of a majority
of those of our directors who are not Interested Persons (as defined in the
1940
Act), and have no direct or indirect financial interest in the operation of
this
Agreement, cast in person at a meeting called for the purpose of voting on
this
Agreement. This Agreement may be terminated at any time, without the payment
of
any penalty, by vote or a majority of our entire Board of Directors, and by
a
vote of a majority of our Directors who are not Interested Persons (as defined
in the 1940 Act), and who have no direct or indirect financial interest in
the
operation of this Agreement, or by vote of a majority of our outstanding voting
securities, as defined in the 1940 Act, on sixty (60) days' written notice
to
you, or by you on sixty (60) days' written notice to us.
This
Agreement may not be transferred, assigned, sold or in any manner hypothecated
or pledged by you and this Agreement shall terminate automatically in the event
of any such transfer, assignment, sale, hypothecation or pledge by you. The
terms "transfer", "assignment" and "sale" as used in this paragraph shall have
the meanings ascribed thereto by governing law and in applicable rules or
regulations of the Securities and Exchange Commission thereunder.
Except
to
the extent necessary to perform your obligations hereunder, nothing herein
shall
be deemed to limit or restrict your right, or the right of any of your officers,
directors or employees who may also be a director, officer or employee of ours,
or of a person affiliated with us, as defined in the 1940 Act, to engage in
any
other business or to devote time and attention to the management or other
aspects of any other business, whether of a similar or dissimilar nature, or
to
render services of any kind to another corporation, firm, individual or
association.
If
the
foregoing is in accordance with your understanding, will you kindly so indicate
by signing and returning to us the enclosed copy hereof.
Very
truly yours,
Dated:
December 15, 1999
| KINETICS MUTUAL FUNDS, INC., on behalf of |
| each of its series listed on Schedule A |
| By:___________________________________________ |
| Name: |
| Title: |
ACCEPTED:
KINETICS
ASSET MANAGEMENT, INC.
By:_________________________________
Name:
Title:
SCHEDULE
A
The
following list comprises each of the series of KINETICS MUTUAL FUNDS, INC.
covered by the foregoing Agreement:
| 1. |
The
Internet Fund
|
| 2. |
The
Internet Emerging Growth Fund
|
| 3. |
The
Paradigm Fund
|
| 4. |
The
Medical Fund
|
| 5. |
The
Small Cap Opportunities Fund
|
| 6. |
The
Kinetics Government Money Market
Fund
|
This
Schedule A was updated with Board Approval on: February
23, 2004
