Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 211

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 211
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 Fees”) in the form of Deferred Units (“Elected DUs” and, together with the Granted DUs, shall all be considered Deferred Units for purposes of the Deferred Unit Plan).

The number of Deferred Units granted at any particular time pursuant to the Deferred Unit Plan will be equal to (i) the elected amount in respect of Trustee Fees, as determined by a Trustee, divided by the Average Market Price of a Unit on the award date, plus (ii) the Granted DUs, if any, granted to such Trustee. “Average Market Price” of a Unit means the volume weighted average price of the Units traded on the TSXV, for the five trading days immediately preceding such date (or, if such Units are not then listed and posted for trading on the TSXV, on such stock exchange on which the Units are listed and posted for trading as may be selected for such purpose by the Board); provided that, for so long as the Units are listed and posted for trading on the TSXV, the Average Market Price shall not be less than the market price, as calculated under the policies of the TSXV and provided, further, that with respect to Deferred Units issued to a U.S. taxpayer, such Participant and the number of Units subject to such issuance shall be identified by the Board prior to the start of the applicable five trading day period. In no event shall the Average Market Price be less than the Discounted Market Price (as such term is defined in the TSXV Corporate Finance Manual).

Under no circumstances shall Deferred Units be considered Units nor entitle a Participant to any rights as a Unitholder, including, without limitation, voting rights, distribution entitlements (other than as set out below) or rights on liquidation.

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Whenever cash distributions are paid on the Units, additional Deferred Units will be credited to the Participant’s Deferred Unit account (“Additional DUs”). The number of such Additional DUs to be credited to a Participant’s Deferred Unit account in respect of a cash distribution paid on the Units shall be calculated by dividing the amount which is equal to the aggregate distributions that would have been paid to such Participant if the Deferred Units in the Participant’s Deferred Unit account had been Units divided by the Average Market Price on the distribution payment date. Deferred Units credited to a Participant shall count towards a Trustees’ ownership requirements as prescribed from time to time by the Board. For greater certainty, any Additional DUs shall count toward the limits set forth in Article