Company: NXDT
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001437749-25-013177
Chunk: 49

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-25
Form: 424B3
Chunk 49
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withstanding the foregoing, the award may provide for acceleration of vesting and/or exercise in the event of a participant’s retirement, death or disability, in the event of a double-trigger change in control of Old NXDT (as described below) or where such awards are not assumed or converted into replacement awards (as described below). The Compensation Committee may grant awards covering up to 5% of the maximum number of Old Common Shares reserved for issuance under the A&R 2023 Plan (subject to adjustment as provided in the A&R 2023 Plan) for issuances under the A&R 2023 Plan, without regard to the Minimum Vesting Requirement.

Types of Awards Under the A&R 2023 Plan

Pursuant to the A&R 2023 Plan, Old NXDT may grant option rights (including ISOs), SARs, restricted shares, restricted share units (“RSUs”), performance shares, performance units, cash incentive awards, profits interest units and certain other awards based on or related to the Old Common Shares.

Each grant of an award under the A&R 2023 Plan will be evidenced by an award agreement or agreements which will contain such terms and conditions as the Compensation Committee may determine, consistent with the A&R 2023 Plan. Each award may be subject to time-based, service-based or performance-based vesting. A brief description of the types of awards which may be granted under the A&R 2023 Plan is set forth below.

| Option Rights |     | An option right is a right to purchase shares of Old NXDT upon the exercise of the option right. Option rights granted under the A&R 2023 Plan may consist of ISOs, non-qualified options that are not intended to qualify as an ISO or a combination of both. ISOs may only be granted to participants who meet the definition of employee under Section 3401(c) of the Code. Except with respect to Substitute Awards and Assumed Plan Awards, option rights must have an exercise price per share that is not less than the fair market value of a share on the date of grant, and with respect to ISOs granted to holders of at least 10% of Old NXDT’s Old Common Shares, such ISOs must have an exercise price per share that is not less than 110% of the fair market value of a share on the date of grant. The term of an option right may not extend more than ten years after the date of the grant; provided, that in the case of ISOs granted to holders of