Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 209

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 209
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 affiliates, not NHT.

Annual Cash Bonuses

Annual cash bonuses are discretionary and are not awarded pursuant to a formal incentive plan. Annual cash bonuses are awarded based on qualitative and quantitative performance standards and reward the performance of the named executive officer individually. The determination of NHT’s performance may vary from year to year depending on economic conditions and conditions in the real estate industry, and may be based on measures such as Unit price performance, the meeting of financial targets against budget, the meeting of acquisition objectives and balance sheet performance. Individual performance factors vary, and may include completion of specific projects or transactions and the execution of day-to-day management responsibilities. Annual cash bonuses are paid by the Advisor or its affiliates, not NHT.

Long-Term Compensation Plans

Grants of (i) equity-based incentive awards under the Omnibus Plan (which may include restricted equity units, performance-based awards, Deferred Units, NHT OP Profits Interest Units and other awards convertible, exercisable or exchangeable into or otherwise based on Units), and (ii) Deferred Units under the Deferred Unit Plan are used to align the interests of the named executive officers more closely with the interests of the Unitholders, since they are tied to NHT’s financial and Unit trading performance and vest or accrue over a number of years. The Board, acting on the recommendation of the Compensation, Governance and Nominating Committee, may designate individuals eligible to receive grants of equity-based incentive awards. In determining grants of such awards, an individual’s performance and contributions to NHT’s success, relative position, tenure and past grants will be taken into consideration.

Deferred Unit Plan

The following is a summary of the terms of the REIT’s amended and restated deferred unit plan (the “Deferred Unit Plan”) dated September 11, 2023. The Deferred Unit Plan allows for the grant of Deferred Units to Participants.

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The maximum number of Deferred Units reserved for issuance under the Deferred Unit Plan at any time is 2,844,256 (representing approximately 9.7% of NHT’s outstanding Units as of the date hereof). As of the date hereof, 1,295,668 Deferred Units have been granted under the Deferred Unit Plan. Pursuant to the TSXV policies, the number of Units issuable pursuant to all of NHT’s security based compensation arrangements in aggregate is a fixed specified number of Units up to a maximum of 20% of NHT’s issued and outstanding Units as at