Highland Investment Advisors LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
 ASSET MANAGEMENT
 HIA offers direct asset management services to advisory Clients. HIA charges an annual
 investment advisory fee based on the total assets under management as follows:
 Annualized Advisory Fee Schedule

     Portfolio Size                            Annual Fee as % of Portfolio
     First $250,000 ($0 – $250,000)                        1.25%
     Next $2,250,000 ($250,001 - $2,500,000)               1.00%
     Next $2,500,000 ($2,500,001 - $5,000,000)             0.75%
     Above $5,000,000                                      0.50%
     Charitable/Non-profit Organizations                   0.45%

    Portfolio Size                            Annual Fee as % of Portfolio
    First $250,000 ($0 – $250,000)                   1.25%
    Next $2,250,000 ($250,001 - $2,500,000)          1.00%
    Next $2,500,000 ($2,500,001 - $5,000,000)        0.75%
    Above $5,000,000                                 0.50%
    Charitable/Non-profit Organizations              0.45%

The annual fee is negotiable based upon certain criteria (e.g., historical relationship, type of
assets, anticipated future earning capacity, anticipated future additional assets, dollar
amounts of assets to be managed, related accounts, account composition, negotiations with
Clients, etc.). Fees are billed quarterly in arrears based on an average daily balance of the
account for the previous quarter. Additionally, this is a tiered/blended fee schedule, the asset
management fee is calculated by applying different rates to different portions of the
portfolio. HIA may group certain related Client accounts for the purposes of achieving the
minimum account size and determining the annualized fee.
The calculation for the average daily balance is based on the formula (A/D) x F.
       A = the sum of the daily balances in the billing period
       D = number of days in the billing period
       F = quarterly management fee
For example (based on quarterly billing period): the first step taken using the average-
daily-balance calculation method would be to take the average of the values of the Client’s
account over the course of the entire quarter. For instance 85 days at $1 million plus six days
at $500,000 averages out to approximately $967,032. This account would be charged
$2,573.83 for the quarter.
        AUM               Quarterly Fee     Total
        First $250,000 x .003125 =          $781.25
        Next $717,032 x .0025 =             $1,792.58
        Grand total for the quarter         $2,573.83
HIA may also utilize the services of a Sub-Advisor to manage Clients’ investment portfolios.
HIA will enter into Sub-Advisor agreements with other registered investment advisor firms.
When using Sub-Advisors, the Client will not pay additional fees. The Sub-Advisors fees are
inclusive of the total fee disclosed by HIA.
Lower fees for comparable services may be available from other sources. Clients may
terminate their account within five (5) business days of signing the Investment Advisory
Agreement with no obligation and without penalty. After the initial five (5) business days,
the agreement may be terminated by HIA with thirty (30) days written notice to Client and
by the Client at any time with written notice to HIA. For accounts opened or closed mid-
billing period, fees will be prorated based on the days services are provided during the given
period. All unpaid earned fees will be due to HIA. Client shall be given thirty (30) days prior
written notice of any increase in fees. Any increase in fees will be acknowledged in writing

by both parties before any increase in said fees occurs.
ASSET HELD AWAY
HIA offers discretionary direct asset management services to advisory Clients. HIA charges
an annual investment advisory fee based on the total assets under management as follows:

         Portfolio Size                            Annual Fee as % of Portfolio
         First $250,000 ($0 – $250,000)                   1.25%
         Next $2,250,000 ($250,001 - $2,500,000)          1.00%
         Next $2,500,000 ($2,500,001 - $5,000,000)        0.75%
         Above $5,000,000                                 0.50%
         Charitable/Non-profit Organizations              0.45%
The annual fee is negotiable. The Advisory Fee for the initial period will be paid on a pro rata
basis based on the number of days in the billing period for which services under this
Agreement were provided, in arrears, based on the billing period ending value of the Client’s
managed assets, in accordance with the fee schedule listed in the Agreement. For all future
periods, the Advisory Fee will be assessed and payable each billing period, in arrears, based
on the balance of Client’s managed assets as of the prior period-end, in accordance with the
fee schedule listed in the Agreement. By executing this Agreement, Client is authorizing HIA
to debit its Advisory Fees directly from one or more of the Client’s Accounts. The Advisory
Fee payable for any Held Away Account will be deducted directly from another Client
Account, and if there are insufficient funds available in another Client Account or HIA
believes that deducting the Advisory Fee from another Client Account would be prohibited
by applicable law, it will invoice the Client.
No fee adjustment will be made for Account deposits and withdrawals during a billing period.
In addition to the fees paid to HIA, investments used in managing the Account may subject
Client to additional fees. For example, mutual funds, index funds, exchange traded funds and
private funds typically charge ongoing management fees and have other expenses for the
operation of those funds. These fees should not be confused with “loads” or commissions.
HIA does not receive any additional compensation, either directly or indirectly, from these
investments.
FINANCIAL PLANNING AND CONSULTING
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Item 7: Types of Clients
Description
 HIA generally provides investment advice to individuals, high net worth individuals, trusts,
 estates, or charitable organizations, and non-profits. Client relationships vary in scope and
 length of service.

Account Minimums
 HIA requires a minimum of $500,000 to open an account. In certain instances, the
 minimum account size may be lowered or waived.