Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 213

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 213
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 REIT (the “Redemption Date”) for (i) one fully paid and non‑assessable Unit issued from treasury to the Participant or as the Participant may direct, (ii) if so elected by the Participant, a cash payment, subject to the approval of the Board, or (iii) a combination of Units and cash as contemplated by paragraphs (i) and (ii) above.

For Participants that are U.S. taxpayers, each vested Deferred Unit credited to a Participant’s Deferred Unit account will be redeemed automatically on the date of the Trustee’s Separation from Service for (i) one fully paid and non-assessable Unit issued from treasury to the Participant or as the Participant may direct, (ii) if so elected by the Participant, a cash payment, subject to the approval of the Board, or (iii) a combination of Units and cash as contemplated by paragraphs (i) and (ii) above. “Separation from Service” has the meaning given to such phrase in U.S. Treasury Regulation § 1.409A-1(h).

Any cash payments made by the REIT to a Participant in respect of Deferred Units to be redeemed for cash shall be calculated by multiplying the number of Deferred Units to be redeemed for cash by the Average Market Price per Unit as at the Redemption Date or date of the Trustee’s Separation from Service, as applicable.

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No fractional Units will be issued pursuant to the redemption of Deferred Units. At the time of redemption, fractional Deferred Units shall be rounded down, and no payment shall be made to the Participant with respect to the fractional Deferred Units standing to the Participant’s credit after the maximum number of whole Units due to such Participant have been issued by the REIT.

Upon payment in full of the value of the vested Deferred Units and the forfeiture of the unvested Deferred Units, the Deferred Units shall be cancelled.

Notwithstanding anything else in Article 10 of the Deferred Unit Plan, in the event of the death of a Participant, all previously awarded Deferred Units shall be redeemable only within one year after such death, and then only by the person or persons to whom the Participant’s rights under the Deferred Units shall pass by the Participant’s will or the laws of descent and distribution.

In the event of certain consolidations, mergers or similar transactions of NHT, certain sales or other disposition of NHT’s Units, certain liquidation events or sales or dispositions of all or substantially all of NHT’s assets,