Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 228

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 228
---
 out under “Matters to be Considered at the Meeting–2. Election of Trustees”.

The independent Trustees hold in-camera sessions at the conclusion of each regularly scheduled Board and committee meeting. The Lead Trustee of the Board conducts the in-camera sessions of the Board and the Chair of each committee conducts the in-camera sessions of its committee, as applicable, without management or the other non-independent Trustees present.

<div align='center'>-140-</div>

| Nomination of Trustees |

Other than the NexPoint Holders’ nominees nominated pursuant to the Investor Rights Agreement, all Board nominees are nominated by the Compensation, Governance and Nominating Committee, who make such nominations after considering the mix of skills and experience it believes are necessary to further NHT’s goals. The written charter of the Compensation, Governance and Nominating Committee sets out the committee’s responsibilities with respect to nominating Board member candidates, which include to: (i) review annually the competencies, skills and personal qualities of the Board, in light of current and expected future needs; (ii) seek individuals qualified (in the context of the needs of NHT) to become members of the Board; (iii) review and recommend to the Board, the membership and allocation of Board members to the various committees of the Board; and (iv) consider the level of diversity on the Board.

The Compensation, Governance and Nominating Committee will seek prospective candidates who are independent, have recognized functional and industry experience, sound business judgement, high ethical standards, time to devote to the Board and the ability to contribute to the Board’s diversity (with respect to gender, experience, geography, ethnicity and age).

Trustees elected at an annual meeting are elected for a term expiring at the close of the subsequent annual meeting and are eligible for re-election. Trustees appointed by the Trustees between meetings of Unitholders in accordance with the Declaration of Trust are appointed for a term expiring at the close of the next annual meeting and are eligible for election or re-election, as the case may be.

Effective August 31, 2022, upon recommendation of the Compensation, Governance and Nominating Committee, after considering the benefits of a larger Board with new skillsets and experiences, the Board approved the appointment of Jerry Patava as Trustee. Mr. Patava's extensive experience in the hospitality industry and in public company governance will significantly contribute to the Board.

| Term Limits |

NHT does not impose term limits on its Trustees, as it takes the view that term limits are an arbitrary mechanism