Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 219

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 219
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 may amend the Omnibus Plan or outstanding awards, or terminate the Omnibus Plan as to future grants of awards, except that the Compensation, Governance and Nominating Committee will not be able to alter the terms of an award if it would affect materially and adversely a participant’s rights under the award without the participant’s consent. Unitholder approval is required for any amendment to the Omnibus Plan that increases the number of Units available for issuance under the Omnibus Plan or the individual award limitations specified therein (except with respect to certain adjustments as described above), modifies the class of persons eligible for participation in the Omnibus Plan, extends the term of any award granted beyond its original expiration date, permits an award to be exercisable beyond 10 years from its grant date (except where an expiration date would have fallen within a blackout period of NHT), permits awards to be transferred other than for normal estate settlement purposes, or deletes or reduces the range of amendments which require approval of the Unitholders, or to the extent required by law.

| Suspension of Omnibus Plan and Deferred Unit Plan |

| Compensation Risk |

The Compensation, Governance and Nominating Committee considers the implications of the risks associated with NHT’s compensation policies and practices as part of its responsibility to ensure that the compensation for the Trustees and the named executive officers align the interests of the Trustees and named executive officers with Unitholders and NHT as a whole. NHT’s insider trading policy prohibits all officers and Trustees of NHT from selling “short” or selling “call options” on any of NHT’s securities and from purchasing financial instruments, such as prepaid variable forward contracts, equity swaps, collars or units of exchange funds that are designed to hedge or offset a decrease in the market value of equity securities granted to such executive officers and Trustees as compensation or held directly or indirectly by such person.

| Unit Ownership Policy |

NHT has established Unit ownership guidelines (the “Unit Ownership Policy”) for the Trustees and executive officers of NHT to further align the interests of Trustees and executive officers with those of the Unitholders. The Unit Ownership Policy establishes minimum equity ownership levels for each Trustee and executive officer of NHT to be achieved within the later of five years from the date of (i) the policy, and (ii) becoming a member of senior management or a Trustee, as applicable. The Unit Ownership Policy provides for the following guidelines.

| Participant                               | Target Equity Ownership Level                                                                        |
| Chief Executive Officer                   | 5 times annual base salary                                                                           
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