Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 214

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 214
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 the Board may provide for the conversion, exercise or exchange of outstanding awards for new awards, or, if no equivalent awards are available, for the accelerated vesting or delivery of Units under awards, or for a cash-out of outstanding awards.

In the event of any Unit distribution, Unit split, combinations or exchange of Units, merger, consolidation, spin‑off or other distribution of NHT’s assets to the Unitholders (other than normal cash distributions), or any other similar change affecting the Units, the account of each Participant and the Deferred Units outstanding under the Deferred Unit Plan shall be adjusted in such manner, if any, as the Board may in its discretion deem appropriate to reflect the event. However, no amount will be paid to, or in respect of, a Participant under the Deferred Unit Plan or pursuant to any other arrangement, and no additional Deferred Units will be granted to such Participant to compensate for a downward fluctuation in the price of the Units, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.

The following restrictions are placed on grants of Deferred Units under the current Deferred Unit Plan:

| ● | no Deferred Unit may be granted if such grant would have the effect of causing the total number of Units subject to Deferred Units to exceed the total number of Units reserved for issuance under the Deferred Unit Plan; and |

| ● | the aggregate fair market value on the date of grant of Units issuable pursuant to all security based compensation arrangements of NHT granted or issued to any non-employee Trustee shall not exceed $200,000 per annum; provided that such limits shall not apply to awards (including Deferred Units) taken in lieu of any Trustee Fees and a one-time initial grant to a Trustee upon such Trustee joining the Board. |

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The Deferred Unit Plan provides that Unitholder approval is not required for any amendment to the Deferred Unit Plan except for any amendment or modification that:

| ● | results in any increase in the number of Deferred Units issuable under the plan; or |

| ● | permit Deferred Units granted under the plan to be transferable or assignable other than for normal estate settlement purposes. |

Without limiting the general amendment powers described above and for greater certainty, Unitholder approval is not required for amendments to the Deferred Unit Plan:

| ● | for the purpose of making formal, minor or technical modifications to any of the provisions of the plan, including amendments of a “housekeeping” nature; |