0000950134-07-004591 Sample Contracts

INVESTMENT ADVISORY AGREEMENT
Investment Advisory Agreement • March 1st, 2007 • Highland Funds I • Delaware

AGREEMENT made as of ___, 2007, by and between Highland Capital Management, L.P., a Delaware limited partnership (the “Adviser”), and Highland Funds I, a Delaware statutory trust (the “Trust”), on behalf of its series, Highland High Income Fund (the “Fund”).

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INITIAL CAPITAL AGREEMENT
Initial Capital Agreement • March 1st, 2007 • Highland Funds I

THIS INITIAL CAPITAL AGREEMENT (the “Agreement”) is entered into as of ___, 2007, by and between Highland Capital Management, L.P., a Delaware limited partnership (the “Purchaser”), and Highland Funds I, a Delaware statutory trust (the “Trust”), on behalf of its investment portfolio or series, Highland High Income Fund (the “Fund”). The parties to this Agreement hereby agree as follows:

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