Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 208

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 208
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 Fee and certain expenses provided for in the Advisory Agreement until operations of NHT and NHH stabilized. On November 25, 2020, the Advisor reinstated the Advisory Fee, however, the Advisor agreed to defer payment of the Advisory Fee until NHT is cash flow positive and can sustain the payments.The Advisor did not collect any fees for the year ended December 31, 2022. In August 2023, the REIT commenced repayment of a portion of the accrued Advisory Fees and, for the year ended December 31, 2023, the Advisor collected fees in the amount of $2,500,000. See below under “Advisory and Management Agreements”.

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The following discussion describes the significant elements of NHT’s executive compensation program. The Chief Executive Officer, Chief Financial Officer, Chief Information Officer, Executive Vice President, Head of Lodging and Vice President, Asset Management are referred to herein as the “named executive officers” in accordance with applicable Canadian securities laws.The named executive officers are employees of the Advisor (or an affiliate thereof) and the Advisor has sole responsibility for determining the compensation of the named executive officers, other than with respect to the granting of Unit-based compensation, which is the responsibility of the independent Trustees. NHT does not have any employment agreements with members of senior management and does not pay any cash compensation to any individuals serving as officers. A portion of the compensation paid to those employees of the Advisor is attributable to time spent on the activities of NHT.

Principal Elements of Compensation

The compensation of the named executive officers includes three principal elements: (a) base salary which will be paid by the Advisor; (b) discretionary cash bonuses which will be paid by the Advisor; and (c) long-term incentives, which may consist of restricted equity units, performance-based awards, Deferred Units, options, membership units of NHT OP designated as “NHT OP Profits Interest Units” or other equity-based incentive compensation awards granted under the Omnibus Plan and/or the Deferred Unit Plan, each as described in further detail below.

Base Salaries

Base salaries are intended to provide an appropriate level of fixed compensation that will assist in employee retention and recruitment. Base salaries are determined on an individual basis, taking into consideration the past, current and potential contribution to NHT’s success, the position and responsibilities of the named executive officers and competitive industry pay practices for other real estate investment trusts and companies of comparable size. Base salaries are paid by the Advisor or its