KINETICS portfolios trust


                    ADDENDUM TO INVESTMENT ADVISORY AGREEMENT


     THIS ADDENDUM  dated March 29, 2001 to the  Investment  Advisory  Agreement
dated as of the 1st day of May, 2000, by and between KINETICS  PORTFOLIOS TRUST,
a  Delaware  business  corporation  (the  "Trust")  on behalf of its  series the
Internet Portfolio (the "Portfolio") and KINETICS ASSET MANAGEMENT,  INC., a New
York  corporation  (the  "Adviser").  At a Board  meeting duly held on Thursday,
March 29,  2001,  the Board of  Trustees  of the Trust  approved  the  following
Addendum to the Agreement.

     Subparagraph (f) of Section 7 Investment  Advisory Fee shall be amended and
replaced in its entirety as follows:

                    "(f)  Any  fee  withheld  or  voluntarily  reduced  and  any
               Portfolio expense absorbed by the Adviser voluntarily or pursuant
               to an  agreed  upon  expense  cap  shall  be  reimbursed  by  the
               Portfolio  to the Adviser,  if so  requested  by the Adviser,  no
               later than the third  fiscal year  succeeding  the fiscal year of
               the withholding,  reduction or absorption if the aggregate amount
               actually paid by the Portfolio toward the operating  expenses for
               such fiscal year (taking into account the  reimbursement)  do not
               exceed the  applicable  limitation  on Portfolio  expenses.  Such
               reimbursement  may not be paid to the Adviser for any fiscal year
               prior to the Portfolio's  payment of such year's current expenses
               if such practice  would  require the Adviser to waive,  reduce or
               absorb  current  Portfolio  expenses  in  excess  of the  expense
               limitation  in effect at the time the  unreimbursed  expense  was
               actually incurred."