EXTENSION AMENDMENT

EXTENSION AMENDMENT

From:		Highland Funds II, on behalf of its series Highland Small-Cap Equity Fund
		c/o Highland Capital Management Fund Advisors, L.P. 000 Xxxxxxxx Xxxxx, Xxx. 000
		Xxxxxx, XX 00000
		Attn: Will Xxxxx
		Facsimile no.: (000) 000-0000
To:		The Bank of New York Mellon
Re:		Extension Amendment
Date:		May 13, 2019

In accordance with Section 1.01 of the Master Margin Loan Agreement dated as of May 18, 2017, between Highland Funds II, on behalf of its series Highland Small-Cap Equity Fund (the “Borrower”), and The Bank of New York Mellon (the “Bank”), the Borrower hereby proposes to extend the Maturity Date and make such other adjustments as are specified herein. If the Bank accepts, then upon the Bank’s execution of this Extension Amendment (the date of such execution, the “Extension Effective Date”), the Maturity Date (the “Old Maturity Date”) shall be extended to the New Maturity Date specified below (the “New Maturity Date”) and the following terms shall apply for the period from and including the Extension Effective Date to but excluding the New Maturity Date.

New Maturity Date:		May 16, 2020
New Margin Loan Commitment Amount:		$25,000,000
New Spread:		1.20%
New Commitment Fee Rate:		0.40%

If you accept the proposal set out above, please execute this Extension Amendment and return a copy to us.

[Signature Page Follows]

EXTENSION AMENDMENT

Yours Sincerely,

HIGHLAND FUNDS II, on behalf of

Highland Small-Cap Equity Fund

By:    /s/ Xxxxx Xxxxxx                            

        Name: Xxxxx Xxxxxx

        Title: Assistant Treasurer

Extension Amendment accepted and executed as of     May 14, 2019                         by

THE BANK OF NEW YORK MELLON

By:    /s/ Xxxxxxx Xxxxxxx                                                         

    Name: Xxxxxxx Xxxxxxx

    Title: Director

By:    /s/ Xxxxxx Xxxxx                                                 

    Name: Xxxxxx Xxxxx

    Title: Managing Director