Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 210

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 210
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 the date of implementation of the Deferred Unit Plan. NHT currently maintains one other security based compensation plan, the Omnibus Plan, which allows for the grant of various equity-based awards to eligible participants. The maximum number of Units that are available for issuance under the Omnibus Plan is 3,026,155 (representing approximately 10.3% of NHT’s outstanding Units as of the date hereof).

If any Deferred Unit granted under the Deferred Unit Plan is terminated, surrendered, forfeited, expired or is cancelled, new Deferred Units may thereafter be granted covering such Units, subject to any required prior approval by the TSXV or other stock exchange upon which the Units are then listed. At all times, the REIT will reserve and keep available a sufficient number of Units to satisfy the requirements of all outstanding Deferred Units granted under the Deferred Unit Plan.

The Deferred Unit Plan will be administered by the Board and the Compensation, Governance and Nominating Committee. The administration of the Deferred Unit Plan shall be subject to and performed in conformity with all applicable laws, regulations, orders of governmental or regulatory authorities and the requirements of any stock exchange on which the Units are listed. Should the Compensation, Governance and Nominating Committee, in its sole discretion, determine that it is not desirable or feasible to provide for the redemption of Deferred Units in Units, including by reason of any such laws, regulations, rules, orders or requirements, it shall notify the Participants of such determination and on receipt of such notice each Participant shall have the option of electing that such redemption obligations be satisfied by means of a cash payment by the REIT equal to the Average Market Price (as defined below) of the Units that would otherwise be delivered to a Participant in settlement of Deferred Units on the redemption date (less any applicable withholding taxes). Each Participant shall comply with all such laws, regulations, rules, orders and requirements, and shall furnish the REIT with any and all information and undertakings, as may be required to ensure compliance therewith.

Participants may be awarded Deferred Units, each of which is economically equivalent to one Unit, from time to time at the discretion of the Board on recommendation of the Compensation, Governance and Nominating Committee (“Granted DUs”). Participants may also, subject to the terms of the Deferred Unit Plan, elect to receive up to 100% of his or her annual retainer (including fees for serving as Chair of the Board or a committee of the Board) and meeting fees for a calendar year otherwise payable in cash (“Trustee