Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 56

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 56
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 the time of the change in control; (b) all awards with respect to which the vesting or amount is based on the satisfaction of certain management objectives or other performance-based criteria will be deemed to be achieved or fulfilled at the greater of (i) the performance achieved (as determined by the Compensation Committee) or (ii) at the target level of performance applicable to the award, prorated based on the elapsed proportion of the performance period as of the date of the change in control; and (c) all awards will be paid or settled on the date of the change in control. In addition, for each option right or SAR with an option price or base price greater than the consideration offered in connection with such change in control, the Compensation Committee may elect to cancel such option right or SAR without any payment to the participant.

The A&R 2023 Plan includes a definition of “change in control.” In general, except as may be otherwise prescribed by the Compensation Committee in any award agreement, a change in control will be deemed to have occurred if: (a) individuals who constitute the Board on the effective date of the A&R 2023 Plan cease for any reason to constitute at least a majority of the Board, unless their replacements are approved as described in the A&R 2023 Plan (subject to certain exceptions described in the A&R 2023 Plan); (b) a person or group becomes the beneficial owner of 35% or more of the then-outstanding Old Common Shares or the combined voting power of our then-outstanding securities entitled to vote generally in the election of trustees, subject to certain exceptions; (c) Old NXDT closes a reorganization, merger, consolidation, significant sale or purchase of assets, in each case which causes the persons or groups who are the beneficial owners of 35% or more of the then-outstanding Old Common Shares or the combined voting power of our then-outstanding securities entitled to vote generally in the election of trustees to cease to be such beneficial owners of the entity resulting from such transaction, in substantially the same proportions of ownership as immediately prior to such transaction, as further described in the A&R 2023 Plan; (d) Old NXDT’s shareholders approve its complete liquidation or dissolution; or (e) the Adviser is terminated.

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Management Objectives

The A&R 2023 Plan permits Old NXDT to grant awards subject to the achievement of certain specified management objectives. Management objectives are defined as