Company: NXDT
Filing Date: 2025-04-11
Form Type: S-4
Source: 0001437749-25-011826
Chunk: 48

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-11
Form: S-4
Chunk 48
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 as expressed in the Securities Act and is therefore unenforceable.

<div align='center'>29

PROPOSAL 4‒
APPROVAL OF THE AMENDED AND RESTATED
NEXPOINT DIVERSIFIED REAL ESTATE TRUST

2023 LONG TERM INCENTIVE PLAN</div>

Executive Summary and Selected Plan Information

| Introduction                                                                          
 Proposed Share Reserve                                                                |     | We are asking our shareholders to approve an amendment and restatement of the NexPoint Diversified Real Estate Trust 2023 Long Term Incentive Plan (the “2023 Plan”, and as amended and restated, the “A&R 2023 Plan”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 On April 4, 2025, the Compensation Committee recommended that the Board approve the A&R 2023 Plan, and the Board unanimously approved and determined that the A&R 2023 Plan was advisable and in the best interests of the company and its shareholders. The Board subsequently directed that a proposal to approve A&R 2023 Plan be submitted for consideration by our shareholders at the Annual Meeting.                                                                                                                                                                                                                                                                                                                              
 The A&R 2023 Plan is based on the 2023 Plan with updates to, among other things, increase the total number of our authorized Old Common Shares available for grant, describe what will happen to awards in connection with a Change in Control and extend the termination date of the A&R 2023 Plan to the tenth anniversary of the effective date of the A&R 2023 Plan, which will be the date the A&R 2023 Plan is approved by our shareholders.                                                                                                                                                                                                                                                                                       
 Our Board believes that the effective use of equity and equity-linked long-term incentive compensation awards is vital to our ability to attract, retain, reward, and motivate our key employees and directors. Shareholder approval of the A&R 2023 Plan will allow us to continue to provide these incentives. If we do not obtain approval of the A&R 2023 Plan, then once we exhaust the share reserve under the 2023 Plan, we will lose access to an important compensation tool that is key to our ability to attract, motivate, reward, and retain our key management and directors.                                                                                                                                              
 The number of Old Common Shares that will be authorized for issuance pursuant to the A&R 2023 Plan will not exceed, in the aggregate, 3,310,000 (the “Overall Share Limit”), which includes 765,000 Old Common Shares requested for purposes of this proposal and the 2,545,000 Old