Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 2009

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 2009
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 NHT Holdings and NHT to make distributions to its equity owners in a manner that allows it to (a) meet the distribution requirements set for the in Code Section 857 for qualification as a REIT and (b) avoid any federal income or excise tax liability imposed by the Code.

Section 5.2.

All amounts withheld pursuant to the Code or any provisions of any state, local or non-U.S. tax law and with respect to any allocation, payment or distribution to any Member or Assignee shall be treated as amounts distributed to such Member or Assignee pursuant to for all purposes under this Agreement.

Section 5.3.

Proceeds from a Sale of the Company and any other cash received or reductions in reserves made after commencement of the liquidation of the Company shall be distributed to the Members in accordance with .

Section 5.4.

Notwithstanding any provision to the contrary contained in this Agreement, the Company and the Manager, on behalf of the Company, shall not make a distribution to any Member on account of its interest in the Company if such distribution would violate the Act or other applicable law.

<div align='center'>ARTICLE 6.
ALLOCATIONS</div>

Section 6.1.

(a) After giving effect to the special allocations set forth in of attached hereto for the applicable taxable year or other allocation period, and subject to of attached hereto, Net Income for each taxable year or other allocation period shall be allocated to the Members’ Capital Accounts in the following order of priority:

(1) First, to the holders of Common Units and LTIP Units until the cumulative Net Income allocated to such holders under this equals the cumulative Net Loss allocated to such holders under (pro rata in accordance with the excess of such Net Loss over such Net Income for each such holder); and

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(2) Next, to the holders of Common Units and LTIP Units pro rata in accordance with their respective Percentage Interests.

(b) After giving effect to the special allocations set forth in of attached hereto for the applicable taxable year or other allocation period, and subject to of attached hereto, Net Loss for each taxable year or other allocation period shall be allocated to the holders of Common Units and LTIP Units with positive balances in their Economic Capital Account Balances in accordance with such balances until their Economic Capital Account Balances are reduced to zero.

For purposes of determining allocations of Net Loss pursuant to , a holder of a Profits LTIP Unit shall