Document:

EX-10.2

 Exhibit 10.2 

FORM OF 
 ADVISORY
AGREEMENT 
 BY AND AMONG 

NEXPOINT RESIDENTIAL TRUST, INC., 

NEXPOINT RESIDENTIAL TRUST OPERATING PARTNERSHIP, L.P. 

AND 
 NEXPOINT REAL
ESTATE ADVISORS, L.P. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 1.
	 	Definitions	  	 	1	  
	 2.
	 	Appointment	  	 	3	  
	 3.
	 	Duties of the Advisor	  	 	3	  
	 4.
	 	Authority of Advisor	  	 	6	  
	 5.
	 	No Partnership or Joint Venture	  	 	6	  
	 6.
	 	Bank Accounts	  	 	6	  
	 7.
	 	Records; Access; Confidentiality	  	 	6	  
	 8.
	 	Limitations on Activities	  	 	7	  
	 9.
	 	Compensation	  	 	7	  
	 10.
	 	Expenses	  	 	8	  
	 11.
	 	Other Services	  	 	8	  
	 12.
	 	Other Activities of the Advisor	  	 	9	  
	 13.
	 	Term and Termination	  	 	9	  
	 14.
	 	Payments and Duties Upon Termination	  	 	10	  
	 15.
	 	Limitation of Liability, Exculpation and Indemnification by the Company and Operating Partnership	  	 	10	  
	 16.
	 	Indemnification by the Advisor	  	 	11	  
	 17.
	 	Notices	  	 	11	  
	 18.
	 	Modification	  	 	12	  
	 19.
	 	Severability	  	 	12	  
	 20.
	 	Governing Law; Arbitration	  	 	12	  
	 21.
	 	Entire Agreement	  	 	13	  
	 22.
	 	No Waiver	  	 	13	  
	 23.
	 	Pronouns and Plurals	  	 	13	  
	 24.
	 	Headings	  	 	13	  
	 25.
	 	Execution in Counterparts	  	 	13	  

  
 i 

 ADVISORY AGREEMENT 

THIS ADVISORY AGREEMENT (this “Agreement”), dated as of
                         , 2015, is entered into by and among NexPoint Residential Trust, Inc., a Maryland corporation (the
“Company”), NexPoint Residential Trust Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”), and NexPoint Real Estate Advisors, L.P., a Delaware limited partnership
(the “Advisor“). 
 RECITALS 

A. The Company is a Maryland corporation created in accordance with Maryland General Corporation Law and intends to elect to qualify as a REIT
for U.S. federal income tax purposes. 
 B. The Company is the sole member of the general partner, and is the initial limited partner, of the
Operating Partnership. 
 C. The Company and the Operating Partnership desire to avail themselves of the experience, sources of information,
advice, assistance and certain facilities of the Advisor and its Affiliates and to have the Advisor undertake the duties and responsibilities set forth in this Agreement, on behalf of, and subject to the supervision of the Board of Directors of the
Company, all as provided in this Agreement. 
 D. The Advisor is willing to render such services, subject to the supervision of the Board of
Directors of the Company, on the terms and conditions set forth in this Agreement. 
 E. The Board of Directors, including a majority of the
Independent Directors, have approved this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
agreements contained herein, the parties hereto, intending to be legally bound, hereby agree as follows: 
 1. Definitions. As
used in this Agreement, the following terms have the definitions set forth below: 
 “1940
Act” means the Investment Company Act of 1940, as amended. 
 “Administrative Fee” means
an annual fee, payable monthly, in an amount equal to 0.20% of the Average Real Estate Assets, determined in accordance with Section 9(b). 

“Advisor” means NexPoint Real Estate Advisors, L.P., a Delaware limited partnership. 

“Affiliate” or “Affiliated” means with respect to any Person, (i) any Person
directly or indirectly controlling, controlled by or under common control with such other Person; (ii) any executive officer, director, trustee or general partner of such other Person; and (iii) any legal entity for which such Person acts
as an executive officer, director, trustee or general partner. For purposes of this definition, the terms “controls,” “is controlled by,” or “is under common control with” shall mean the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of an entity, whether through ownership or voting rights, by contract or otherwise. 

“Articles of Incorporation” means the Articles of Amendment and Restatement of the Company, as hereafter
amended from time to time. 
 “Average Real Estate Assets” means the average of the
aggregate book value of Real Estate Assets before reserves for depreciation or other non-cash reserves, computed by taking the average of the book values of Real Estate Assets at the end of each month (or partial month) (i) for which
any fee under this Agreement is calculated or (ii) during the year for which any Expense reimbursement under this Agreement is calculated. 

“Board of Directors” or “Board” means the Board of Directors of the Company. 

 “Bylaws” means the bylaws of the Company, as amended and as
the same are in effect from time to time. 
 “Code” means the Internal Revenue Code of
1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended and any successor provision thereto, as interpreted by
any applicable regulations as in effect from time to time. 
 “Contributed Assets” means all of the
Real Estate Assets described in the information statement filed as an exhibit to the Registration Statement as properties to be
owned or subject to probable acquisition by the Company or the Operating Partnership upon completion of the Spin-Off. 

“Director” means a member of the Board of Directors. 

“Distribution Date” means the “distribution date,” as such term is defined in the information
statement included in the Registration Statement. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
 “Highland” means Highland Capital Management, L.P., a Delaware limited partnership. 

“Independent Director” means a Director who would not be an “interested person” (as defined in the 1940 Act)
of the Company. 
 “Investment Guidelines” means the investment guidelines and other investment
parameters for Investments, financing activities and other operations established from time to time by the Board or as disclosed in the Registration Statement. 

“Investments” means any investments by the Company or the Operating Partnership in Real Estate Assets or
any other asset. 
 “Joint Ventures” means any joint venture or partnership arrangements
(other than between the Company and the Operating Partnership) in which the Company or the Operating Partnership or any of their subsidiaries is a co-venturer, member or partner, which are established to own Investments. 

“Loans” means any indebtedness or obligations in respect of borrowed money or evidenced by bonds, notes,
debentures, deeds of trust, letters of credit or similar instruments, including mortgages and mezzanine loans. 

“Management Fee” means an annual fee, payable monthly, in an amount equal to 1.00% of the Average Real
Estate Assets, determined in accordance with Section 9(b). 
 “New Assets” means all of the Average Real Estate
Assets other than the Contributed Assets. 
 “NYSE” means the New York Stock Exchange. 

“Offering” means any public or private offering of equity or debt securities of the Company that is consummated
subsequent to the date of this Agreement, excluding Shares offered under any employee benefit plan of the Company and Shares distributed in the Spin-Off. 

“Offering Expenses” means any and all expenses (other than underwriters’ discounts) paid or to be
paid by the Company in connection with an Offering, including, without limitation, the Company’s legal, accounting, printing, mailing and filing fees and other documented offering expenses. 

“Operating Expenses” means all out-of-pocket expenses of the Advisor in performing services for the Company, including
the expenses incurred by the Advisor in connection with any provision by the Advisor of 

  
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legal, accounting, financial and due diligence services performed by the Advisor that outside professionals or outside consultants would otherwise perform. Operating Expenses also include the
Company’s pro rata share of rent, telephone, utilities, office furniture, equipment, machinery and other office, internal and overhead expenses of the Advisor required for the Company’s operations. Operating Expenses do not include
expenses for the administrative services described on Exhibit A to this Agreement. 
 “OP Units” means units of
limited partnership interest in the Operating Partnership. 
 “Person” means an individual,
corporation, partnership, joint venture, association, company (whether of limited liability or otherwise), trust, bank or other entity, or government or any agency or political subdivision of a government. 

“Real Estate Assets” means any investment by the Company or the Operating Partnership (including, without limitation,
reserves for capital expenditures) in unimproved and improved Real Property (including, without limitation, fee or leasehold interests, options and leases) either directly, through a direct or indirect subsidiary of the Company or the Operating
Partnership or through a Joint Venture. 
 “Real Property” means real property owned from time to time
by the Company or the Operating Partnership, either directly, through a direct or indirect subsidiary of the Company or the Operating Partnership or through a Joint Venture, which consists of (i) land only, (ii) land, including the
buildings located thereon, (iii) buildings only, (iv) real estate-related securities (including preferred stock), mortgage, bridge or mezzanine loans, or (v) such investments the Board or the Advisor designate as Real Property to the
extent such investments could be classified as Real Property. 
 “Registration
Statement” means the Company’s Registration Statement on Form 10 (No. 001-36663), as amended from time to time. 

“REIT” means a “real estate investment trust” within the meaning of Sections 856 through 860 of the Code.

 “Securities Act” means the Securities Act of 1933, as amended. 

“Shares” means the shares of the Company’s common stock, par value $0.01 per share. 

“Spin-Off” has the meaning given in the information statement filed as an exhibit to the Registration Statement. 

“Stockholders” means the registered holders of the Shares. 

“VWAP” means volume-weighted average price. 

2. Appointment. The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor to perform the
services set forth herein on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 

3. Duties of the Advisor. The Advisor, in its capacity as manager of the assets and the day-to-day operations of the Company and the
Operating Partnership, at all times will be subject to the supervision of the Company’s Board of Directors and will have only such functions and authority as the Company may delegate to it including, without limitation, the functions and
authority identified herein and delegated to the Advisor hereby. The Advisor will be responsible for the day-to-day operations of the Company and will perform (or cause to be performed) such services and activities relating to the assets and
operations of the Company as may be appropriate, including, without limitation: 
 (a) serve as the Company’s and the Operating
Partnership’s investment and financial advisor; 
 (b) provide the daily management for the Company and the Operating Partnership and
perform and supervise the various administrative functions necessary for the day-to-day management of the operations of the 

  
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Company and the Operating Partnership, including the administrative services described on Exhibit A to this Agreement; 

(c) investigate, select, and, on behalf of the Company and the Operating Partnership, engage and conduct business with such Persons as the
Advisor deems necessary to the proper performance of its obligations hereunder, including, but not limited to, consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, real estate management companies, real estate operating companies, securities investment advisors, mortgagors, the
registrar and the transfer agent and any and all agents for any of the foregoing, including Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing
services, including, but not limited to, entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing; 

(d) consult with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s
financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed
to be undertaken by the Company or the Operating Partnership; 
 (e) subject to the provisions of Section 4 hereof, (i) participate
in formulating an investment strategy and asset allocation framework, (ii) locate, analyze and select potential Investments, (iii) structure and negotiate the terms and conditions of transactions pursuant to which acquisitions and
dispositions of Investments will be made; (iv) research, identify, review and recommend acquisitions and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership in compliance with the
investment objectives and policies of the Company; (v) negotiate the terms of and arrange for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or
otherwise deal with, Investments; (vi) negotiate and enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Real Estate
Assets; (vii) actively oversee and manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information for each of the Investments and the overall portfolio; (viii) select
Joint Venture partners, structure and negotiate corresponding agreements and oversee and monitor these relationships; (ix) engage, oversee, supervise and evaluate property managers who perform services for the Company or the Operating
Partnership; (x) engage, oversee, supervise and evaluate Persons with whom the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xi) manage accounting and other record-keeping functions
for the Company and the Operating Partnership, including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and generating an annual budget for the Company; and (xii) recommend various liquidity events to the
Board when appropriate; 
 (f) upon request, but no less than quarterly, provide the Board with periodic reports regarding prospective
investments; 
 (g) negotiate the terms of and make investments in, and dispositions of, Investments within the discretionary limits and
authority as granted by the Board; 
 (h) within the discretionary limits and authority as granted by the Board, negotiate on behalf of the
Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company and the Operating Partnership, and negotiate on behalf of the Company and the Operating Partnership with investment banking firms and
broker-dealers or negotiate private sales of Shares or obtain Loans for the Company and the Operating Partnership, but in no event in such a manner so that the Advisor shall be acting as broker-dealer or underwriter; provided, further,
that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company or the Operating Partnership; 

  
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 (i) at least quarterly, and at any other time reasonably requested by the Board, obtain reports
(which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of Investments or contemplated investments of the Company and the Operating Partnership; 

(j) at least quarterly, and at any other time reasonably requested by the Board, make reports to the Board of its performance of services to
the Company and the Operating Partnership under this Agreement (including reports with respect to potential conflicts of interest involving the Advisor or any of its Affiliates), the composition and characteristics of the Company’s portfolio,
and compliance with the Company’s Investment Guidelines and other policies approved from time to time by the Board; 
 (k) provide the
Company and the Operating Partnership with all necessary cash management services; 
 (l) deliver to, or maintain on behalf of, the Company
copies of all appraisals obtained in connection with the investments in any Real Estate Assets as may be required to be obtained by the Board; 

(m) notify the Board of all proposed transactions outside of the Advisor’s delegated authority before they are completed and obtain Board
approval of same; 
 (n) negotiate and effect any private placement of OP Units, tenancy-in-common (TIC) or other interests in Investments as
may be approved by the Board; 
 (o) perform investor-relations and Stockholder communications functions for the Company; 

(p) render such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein; 

(q) maintain the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with the
Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies; 
 (r) do all things necessary to assure its
ability to render the services described in this Agreement; 
 (s) advise the Company and the Operating Partnership regarding the maintenance
of the Company’s qualification as a REIT and monitor the Company’s compliance with the various REIT qualification requirements and other rules set forth in the Code and any applicable treasury regulations promulgated under the Code, as
amended from time to time, and use its commercially reasonable efforts to cause the Company to maintain its qualification as a REIT for U.S. federal income tax purposes; 

(t) advise the Company and the Operating Partnership regarding the maintenance of their exemptions from the status of an investment company
required to register under the 1940 Act, and monitor compliance with the requirements for maintaining such exemptions and using commercially reasonable efforts to cause them to maintain such exemptions from such status; 

(u) assist the Company and the Operating Partnership in qualifying to do business in all applicable jurisdictions in which the Company, the
Operating Partnership or their subsidiaries do business, and ensure that the Company, the Operating Partnership and their respective subsidiaries obtain and maintain all applicable licenses; 

(v) assist the Company and the Operating Partnership in complying with all regulatory requirements applicable to them with respect to their
business activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Exchange Act, the Securities Act
or the NYSE; 
 (w) if requested by the Company, provide, or cause another qualified third party to provide, such internal audit, compliance
and control services as may be required for the Company, the Operating Partnership and their subsidiaries to comply with applicable law (including the Securities Act and the Exchange Act), regulation (including Securities and Exchange Commission
regulations) and the rules and requirements of the NYSE or such other securities exchange on which the Shares are listed, and as otherwise requested by the Board; 

(x) handle and resolve on behalf of the Company and the Operating Partnership (including their respective subsidiaries) all routine claims,
disputes or controversies, including all routine litigation, arbitration, settlement 

  
 5 

 
or other proceedings or negotiations, in which the Company, the Operating Partnership or their respective subsidiaries may be involved or to which they may become subject, subject to such
limitations or parameters as may be imposed from time to time by the Board; and 
 (y) use commercially reasonable efforts to cause the
Company, the Operating Partnership and their respective subsidiaries to comply with all applicable laws. 
 Notwithstanding the foregoing, to the extent
such duties may be delegated by an investment company consistent with Section 15 of the 1940 Act, the Advisor may delegate any of the foregoing duties to any Person so long as the Advisor remains responsible for the performance of the duties
set forth in this Section 3; provided, however, that the delegation by the Advisor of any of the foregoing duties to another Person shall not result in an increased Administrative Fee, Management Fee or additional expenses payable
hereunder. 
 4. Authority of Advisor. 

(a) Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 8), and subject to
the continuing and exclusive authority of the Board over the management of the Company, the Company, acting on the authority of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in
Section 3. 
 (b) Notwithstanding anything herein to the contrary, the Advisor shall obtain the prior approval of the Board, any
particular Directors specified by the Board or any committee of the Board, as the case may be, in connection with (i) any Investment for which the portion of the consideration paid out of the Company’s Equity (defined below) equals or
exceeds $50,000,000, (ii) any investment that is inconsistent with the Company’s publicly disclosed Investment Guidelines as in effect from time to time, or, if none are then publicly disclosed, as otherwise adopted by the Board from time
to time, or (iii) any engagement of Affiliated service providers on behalf of the Company or the Operating Partnership, which engagement terms will be negotiated on an arm’s length basis. “Equity” means the
Company’s cash on hand, exclusive of the proceeds of any debt financing incurred or to be incurred in connection with the relevant Investment. 

(c) If a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents and
other information required by them to properly evaluate the proposed transaction. 
 (d) For the period and on the terms and conditions set
forth in this Agreement, the Company, the Operating Partnership and each of their respective subsidiaries hereby constitutes, appoints and authorizes the Advisor as its true and lawful agent and attorney-in-fact, in its name, place and stead, to
negotiate, execute, deliver and enter into agreements, instruments and authorizations on their behalf, on such terms and conditions as the Advisor, acting in its sole and absolute discretion, deems necessary or appropriate (subject to any
limitations imposed by the Board). This power of attorney is deemed to be coupled with an interest. 
 5. No Partnership or Joint
Venture. The parties to this Agreement are not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers or impose any liability as such on either of them. 

6. Bank Accounts. The Advisor may establish and maintain one or more bank accounts in its own name
for the account of the Company or the Operating Partnership or in the name of the Company and the Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on
behalf of the Company or the Operating Partnership, consistent with the authority granted under Section 4 and in such other circumstances as the Board may approve, provided that no funds shall be commingled with the funds of the Advisor; and
the Advisor shall upon request render appropriate accountings of such collections and payments to the Board and to the auditors of the Company. 

7. Records; Access; Confidentiality. The Advisor shall maintain appropriate books of accounts and records of all its activities
hereunder and make such records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and from time to time. The Advisor shall at all

  
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reasonable times have access to the books and records of the Company and the Operating Partnership. The Advisor shall keep confidential any and all information obtained in connection with the
services rendered under this Agreement and shall not disclose any such information (or use the same except in furtherance of its duties under this Agreement) to unaffiliated third parties except (i) with the prior written consent of the Board,
(ii) to legal counsel, accountants or other professional advisors or consultants engaged by the Company, (iii) to appraisers, financing sources and others in the ordinary course of the Company’s business, (iv) to governmental
officials having jurisdiction over the Company and the Operating Partnership (including their respective subsidiaries), (v) in connection with any governmental or regulatory filings of the Company, the Operating Partnership or of their
subsidiaries, or disclosure or presentations to Company investors, (vi) as required by law or legal process to which the Advisor or any Person to whom disclosure is permitted hereunder is a party, or (vii) to the extent such information is
otherwise publicly available through the actions of a Person other than the Advisor not resulting from Advisor’s violation of this Section 7. The confidentiality provisions of this Section 7 shall survive for a period of one year
after the expiration or earlier termination of this Agreement. 
 8. Limitations on Activities. Notwithstanding anything
herein to the contrary, the Advisor shall not intentionally or with gross negligence, reckless disregard or bad faith take any action that, would (a) adversely affect the maintenance of the Company’s qualification as a REIT under the Code,
unless the Board has determined that the maintenance of the Company’s REIT qualification is not in the best interests of the Company and its Stockholders, (b) subject the Company to regulation under the 1940 Act, except to the extent the
Company and the Advisor have undertaken in this Agreement and the Articles of Incorporation to comply with Section 15 of the 1940 Act in connection with the entry into, continuation of, or amendment of this Agreement or any advisory agreement
(c) be contrary to or inconsistent with the Company’s Investment Guidelines or (d) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company or its Shares, or
otherwise not be permitted by the Articles of Incorporation or Bylaws, except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential impact of such
action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for acting in accordance with the specific instructions of the Board so
given. The Advisor shall comply in all material respects with all applicable law and regulations, including, without limitation, applicable provisions of the Investment Advisers Act of 1940, as amended, and the regulations promulgated thereunder.

 9. Compensation. 

(a) During the term hereof, as the same may be extended from time to time, the Company shall pay the Advisor the Administrative Fee and the
Management Fee. The Advisor shall compute each installment of the Administrative Fee and the Management Fee as promptly as possible after the end of the month with respect to which such installment is payable. The accrued fees will be payable
monthly as promptly as possible after the end of each month during which this Agreement is in effect. A copy of the computations made by the Advisor to calculate such installment shall thereafter, for informational purposes only, promptly be
delivered to the Board. The Administrative Fee and the Management Fee shall be paid in cash unless the Advisor elects, in its sole discretion, to receive all or a portion of the Administrative Fee and the Management Fee in Shares; provided,
that (i) such election to receive all or a portion of the fees in Shares shall be made by notice to the Board (the “Election Notice”) at the time the Advisor delivers to the Board the computation of the
Administrative Fee and the Management Fee for such month and (ii) the Advisor’s ability receive Shares in payment of all or a portion of the Administrative Fee and the Management Fee shall be subject to Section 9(c). To the extent that the
Advisor elects to receive Shares in payment of all or a portion of the Administrative Fee or the Management Fee for any particular month, the number of Shares payable to the Advisor for such month shall equal (A) the dollar amount of the
portion of the monthly installment of the Administrative Fee and the Management Fee payable in Shares (as set forth in the Election Notice) divided by (B) the VWAP per Share for the 10 trading days prior to the end of the month for which the
Management Fee will be paid. The Management Fee shall be payable independent of the performance of the Company, the Operating Partnership or the Investments. 

(b) In calculating the Administrative Fee and the Management Fee, the Company will categorize the Average Real Estate Assets into either
Contributed Assets or New Assets. The Administrative Fee on the 

  
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Contributed Assets may not exceed $                    1 in any calendar year. The Management Fee on the Contributed Assets may not exceed
$                    2 in any calendar year. The Administrative Fee and the Management Fee on
the portion of the Average Real Estate Assets categorized as New Assets will not be subject to any maximum amount in any calendar year. The Adviser may waive a portion of its fees. If this Agreement becomes effective subsequent to the first day of a
month or shall terminate before the last day of a month, compensation for such month shall be computed in a manner consistent with the calculation of the fees payable on a monthly basis. 

(c) The Advisor’s ability to receive Shares in payment of all or a portion of the Administrative Fee or the Management Fee due to the
Advisor under this Agreement shall be subject to the following: (i) the ownership of such Shares by the Advisor shall not violate the limit on ownership of Shares set forth in the Articles of Incorporation or otherwise raise a material risk to
the status of the Company as a REIT, after giving effect to any exception from such limit that the Board may grant to the Advisor or its Affiliates; and (ii) the Company’s issuance of such Shares to the Advisor shall comply with all
applicable restrictions under the U.S. federal securities laws and the rules of the NYSE. 
 (d) The Company agrees to provide reasonable
registration rights to the Advisor and its Affiliates in a form of registration rights agreement to be mutually agreed. 
 10.
Expenses. 
 (a) In addition to the compensation paid to the Advisor pursuant to Section 9, the Company or the Operating
Partnership shall pay directly or reimburse the Advisor for all of the documented Operating Expenses and Offering Expenses (together, “Expenses”) paid or incurred by the Advisor or its Affiliates in connection with the
services it provides to the Company and the Operating Partnership pursuant to this Agreement. Any Expenses payable by the Company or reimbursable to the Advisor pursuant to this Agreement shall not be in amounts greater than those which would be
payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s length basis. Reimbursement of Operating Expenses under this Section 10, plus Administrative Fees and Management Fees
under Section 9, may not exceed 1.5% of Average Real Estate Assets for any calendar year or portion thereof, provided, however, that this limitation will not apply to legal, accounting, financial, due diligence and other service
fees incurred in connection with extraordinary litigation and mergers and acquisitions and other events outside the Company’s ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the
acquisition or disposition of Real Estate Assets. 
 (b) The Advisor shall prepare a statement documenting all Expenses incurred during each
month, and shall deliver such statement to the Company within 15 business days after the end of each month. Expenses incurred by the Advisor on behalf of the Company and the Operating Partnership and payable pursuant to this Section 10 shall be
reimbursed no later than the 15th business day immediately following the date of delivery of such statement of Expenses to the Company. 

11. Other Services. Should the Board request that the Advisor or any director, officer or employee thereof render services for
the Company and the Operating Partnership other than set forth in Section 3, such services shall be separately compensated at such customary rates and in such customary amounts as are agreed upon by 

 

	1 	The Administrative Fee on the Contributed Assets will be capped at an amount intended to be equal to the annual administrative fee that would have been payable on the Contributed Assets under the Administrative Services
Agreement of NexPoint Credit Strategies Fund. 

	2 	The Management Fee on the Contributed Assets will be capped at an amount intended to be equal to the annual management fee that would have been payable on the Contributed Assets under the Amended and Restated Investment
Advisory Agreement of NexPoint Credit Strategies Fund. 

  
 8 

 
the Advisor and the Board, including a majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services
pursuant to the terms of this Agreement. 
 12. Other Activities of the Advisor. Except as set forth in this Section 12,
nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of
other programs advised, sponsored or organized by Highland or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee, or stockholder of the Advisor or its Affiliates to engage in or
earn fees from any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association and earn fees for rendering such services; provided, however,
that the Advisor must devote sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement. The Advisor may, with respect to any investment in which the Company is a participant, also render
advice and service to each and every other participant therein, and earn fees for rendering such advice and service. Specifically, it is contemplated that the Company may enter into Joint Ventures or other similar co-investment arrangements with
certain Persons, and pursuant to the agreements governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor will earn fees for rendering such advice and
service. 
 The Board acknowledges that the Advisor and its Affiliates are subject to various conflicts of interest, including
without limitation, those set forth in the Registration Statement and the Advisor’s Form ADV. The Advisor shall report to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which
creates or is reasonably likely to create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other partnership, corporation, firm, individual, trust or association. 

13. Term and Termination. 

(a) Duration. This Agreement shall become effective on the date first set forth above, such date being the date on which this Agreement
has been executed following: (1) the approval of the Company’s Board of Directors, including approval by a vote of a majority of the Independent Directors, cast in person at a meeting called for the purpose of voting on such approval, in
each case in accordance with Section 15 of the 1940 Act, regardless of whether the 1940 Act is otherwise applicable to the Company; (2) the approval by a “vote of a majority of the outstanding voting securities” (as defined in
the 1940 Act) of the Company and (3) the approval by a “vote of a majority of the outstanding voting securities” (as defined in the 1940 Act) of NexPoint Credit Strategies Fund. Unless terminated as herein provided, this Agreement
shall remain in full force and effect until the date that is two years after the effective date of this Agreement. Subsequent to such initial period of effectiveness, this Agreement shall continue in full force and effect, subject to paragraph
13(c), so long as such continuance is approved at least annually (a) by either the Company’s Board of Directors or by a “vote of a majority of the outstanding voting securities” (as defined in the 1940 Act) of the Company and
(b) in either event, by the vote of a majority of the Independent Directors, cast in person at a meeting called for the purpose of voting on such approval, in accordance with Section 15 of the 1940 Act. 

(b) Amendment. No provision of this Agreement may be amended, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the amendment, waiver, discharge or termination is sought. Any amendment of this Agreement shall comply with, and be approved in accordance with, the requirements of Section 15 of the
1940 Act and any applicable rules thereunder, regardless of whether the 1940 Act is otherwise applicable to the Company. 
 (c)
Termination. This Agreement may be terminated at any time, without payment of any penalty, by vote of the Board of Directors, or by a “vote of a majority of the outstanding voting securities” (as defined in the 1940 Act) of the
Company, or by the Advisor, in each case on not more than 60 days’ nor less than 30 days’ prior written notice to the other party. 

(d) Automatic Termination. This Agreement shall automatically and immediately terminate in the event of its “assignment” (as
defined in the 1940 Act). 

  
 9 

 14. Payments and Duties Upon Termination. 

(a) Amounts Owed. After the Effective Termination Date, the Advisor shall be entitled to receive from the Company or the
Operating Partnership within 30 days after the effective date of such termination all amounts then accrued and owing to the Advisor. 

(b) Advisor’s Duties. The Advisor shall promptly upon termination of this Agreement: 

(i) pay over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled; 

(ii) deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board; 
 (iii) deliver to the Board all assets, including
all Investments, and documents of the Company and the Operating Partnership then in the custody of the Advisor; and 
 (iv) reasonably
cooperate with the Company and the Operating Partnership, at the Company’s expense, to provide an orderly management transition. 

15. Limitation of Liability, Exculpation and Indemnification by the Company and Operating Partnership. 

(a) Whether or not expressly provided in this Agreement, every provision of this Agreement relating to the conduct or affecting the liability
of or affording protection to the Advisor or any of its respective Affiliates and their respective partners, members, officers, directors, employees and agents (including parties acting as agents for the execution of transactions) (each, a
“Covered Person” and collectively, “Covered Persons”) shall be subject to the provisions of this Section. 

(b) To the fullest extent permitted by law, no Covered Person shall be liable to the Company and the Operating Partnership (including but not
limited to (i) any act or omission by any Covered Person in connection with the conduct of the business of the Company or the Operating Partnership, that is determined by such Covered Person in good faith to be in or not opposed to the best
interests of the Company or the Operating Partnership, (ii) any act or omission by any Covered Person based on the suggestions of any professional advisor of the Company or the Operating Partnership whom such Covered Person believes is authorized to
make such suggestions on behalf of the Company or the Operating Partnership, (iii) any act or omission by the Company or the Operating Partnership, or (iv) any mistake, negligence, misconduct or bad faith of any broker or other agent of the Company
or the Operating Partnership selected by the Covered Person with reasonable care), unless any act or omission by such Covered Person constitutes bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or reckless disregard of
its duties (as determined by a non-appealable judgment of a court or arbitration proceeding of competent jurisdiction). 
 (c) A Covered
Person may consult with legal counsel or accountants selected by such Covered Person and any act or omission by such Covered Person on behalf of the Company or the Operating Partnership or in furtherance of the business of the Company or the
Operating Partnership in good faith in reliance on and in accordance with the advice of such counsel or accountants shall be full justification for the act or omission, and such Covered Person shall be fully protected in so acting or omitting to act
if the counsel or accountants were selected with reasonable care. 
 (d) To the fullest extent permitted by law, the Company or the Operating
Partnership shall indemnify and save harmless Covered Persons, from and against any and all claims, liabilities, damages, losses, costs and expenses, including amounts paid in satisfaction of judgments, in compromises and settlements, as fines and
penalties and legal or other costs and expenses of investigating or defending against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Covered Person and arise out of or in
connection with the business or investments of the Company or the Operating Partnership, or the performance by the Covered Person of its responsibilities hereunder, provided that the 

  
 10 

 
Covered Person shall not be entitled to indemnification hereunder to the extent the Covered Person’s conduct constitutes bad faith, fraud, willful misfeasance, intentional misconduct, gross
negligence or reckless disregard of its duties (as determined by a non-appealable judgment of a court or arbitration proceeding of competent jurisdiction). The termination of any proceeding by settlement, judgment, order or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a presumption that the Covered Person’s conduct constituted bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or reckless disregard of its duties. 

(e) Expenses incurred by a Covered Person in defense or settlement of any claim that shall be subject to a right of indemnification hereunder,
shall be advanced by the Company or the Operating Partnership prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the Covered Person to repay the amount advanced to the extent that it shall be determined
ultimately that the Covered Person is not entitled to be indemnified hereunder. 
 (f) The right of any Covered Person to the indemnification
provided herein shall be cumulative of, and in addition to, any and all rights to which the Covered Person may otherwise be entitled by contract or as a matter of law or equity and shall be extended to the Covered Person’s successors, assigns
and legal representatives. 
 (g) The provisions of this Section are expressly intended to confer benefits upon Covered Persons and such
provisions shall remain operative and in full force and effect regardless of the expiration or any termination of this Agreement. 
 (h) No
Covered Person shall be liable hereunder for any settlement of any action or claim effected without its written consent thereto. 
 16.
Indemnification by the Advisor.  
 (a) The Advisor shall indemnify and hold harmless the Company and the Operating Partnership
from all claims, liabilities, damages, losses, costs and expenses, including amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and expenses of investigating or defending
against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or reckless
disregard of its duties; provided, however, that the Advisor shall not be held responsible for any action of the Board in following or declining to follow any written advice or written recommendation given by the Advisor. 

(b) Notwithstanding anything in this Agreement to the contrary, the aggregate maximum amount that the Advisor may be liable to the Company or
the Operating Partnership pursuant to this Agreement shall, to the extent not prohibited by law, never exceed the amount of the Management Fees received by the Advisor under this Agreement prior to the date that the acts or omissions giving rise to
a claim for indemnification or liability shall have occurred. In no event shall the Advisor be liable for special, exemplary, punitive, indirect, or consequential loss, or damage of any kind whatsoever, including without limitation lost profits. The
foregoing limitations shall not apply to the extent such damages are determined in a final binding non-appealable court or arbitration proceeding to result from the bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or
reckless disregard of its duties of the Advisor. 
 (c) The provisions of this Section are expressly intended to confer benefits upon the
Company and the Operating Partnership and such provisions shall remain operative and in full force and effect regardless of the expiration or any termination of this Agreement. 

17. Notices. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless
some other method of giving such notice, report or other communication is required by the Articles 

  
 11 

 
of Incorporation, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand, by courier or overnight carrier or by registered or certified mail
to the addresses set forth below: 
  

			
	To the Company:		 NexPoint Residential Trust, Inc.
 300 Crescent
Court
 Suite 700
 Dallas, Texas 75201

Attention: Brian Mitts
  

with a copy to:
  

Jones Day
 2727 N. Harwood Street

Dallas, Texas 75201
 Attention: Charles T. Haag

		
	To the Operating Partnership:		 NexPoint Operating Partnership, LP
 300 Crescent
Court
 Suite 700
 Dallas, Texas 75201

Attention: Brian Mitts
  

with a copy to:
  

Jones Day
 2727 N. Harwood Street

Dallas, Texas 75201
 Attention: Charles T. Haag

		
	 To the Advisor:
		 NexPoint Real Estate Advisors, L.P.
 300
Crescent Court
 Suite 700
 Dallas, Texas 75201

Attention: Brian Mitts
  

with a copy to:
  

Highland Capital Management, L.P.
 300 Crescent Court

Suite 700
 Dallas, Texas 75201

Attention: Thomas Surgent

 Any party may at any time give notice in writing to the other parties of a change in its address for the
purposes of this Section 17. 
 18. Modification. This Agreement shall not be amended, supplemented, modified, terminated,
or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees. 

19. Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be
affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 

20. Governing Law; Arbitration. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the
State of New York as at the time in effect, without regard to the principles of conflicts of laws thereof. In the event there is an unresolved legal dispute between the parties and/or any of their respective officers, directors, partners, employees,
agents, Affiliates or other representatives that involves legal 

  
 12 

 
rights or remedies arising from this Agreement, the parties agree to submit their dispute to binding arbitration under the authority of the Federal Arbitration Act;
provided, however, that Highland or such applicable Affiliate thereof may pursue a temporary restraining order and/or preliminary injunctive relief in connection with any confidentiality covenants or
agreements binding on the other party, with related expedited discovery for the parties, in a court of law, and, thereafter, require arbitration of all issues of final relief. The arbitration will be conducted by the American Arbitration
Association, or another, mutually agreeable arbitration service. A panel of three arbitrators will preside over the arbitration and will together deliberate, decided and issue the final award. The arbitrators shall be duly licensed to practice law
in the State of Texas. The discovery process shall be limited to the following: Each side shall be permitted no more than (i) two party depositions of six hours each (Each deposition is to be taken pursuant to the Texas Rules of Civil Procedure);
(ii) one non-party deposition of six hours; (iii) twenty-five interrogatories; (iv) twenty-five requests for admission; (v) ten requests for production (In response, the producing party shall not be obligated to produce in excess of 5,000 total
pages of documents. The total pages of documents shall include electronic documents); (vi) one request for disclosure pursuant to the Texas Rules of Civil Procedure. Any discovery not specifically provided for in this paragraph, whether to parties
or non-parties, shall not be permitted. The arbitrators shall be required to state in a written opinion all facts and conclusions of law relied upon to support any decision rendered. The arbitrators will not have the authority to render a decision
that contains an outcome determinative error of state or federal law, or to fashion a cause of action or remedy not otherwise provided for under applicable state or federal law. Any dispute over whether the arbitrators have failed to comply with the
foregoing will be resolved by summary judgment in a court of law. In all other respects, the arbitration process will be conducted in accordance with the American Arbitration Association’s dispute resolution rules or other mutually
agreeable, arbitration service rules. The party initiating arbitration shall pay all arbitration costs and arbitrator’s fees, subject to a final arbitration award on who should bear costs and fees. All proceedings shall be conducted in Dallas,
Texas, or another mutually agreeable site. Each party shall bear its own attorneys fees, costs and expenses, including any costs of experts, witnesses and/or travel, subject to a final arbitration award on who should bear costs and fees. The duty to
arbitrate described above shall survive the termination of this Agreement. Except as otherwise provided above, the parties hereby waive trial in a court of law or by jury. All other rights, remedies, statutes of limitation and defenses applicable to
claims asserted in a court of law will apply in the arbitration. 
 21. Entire Agreement. This Agreement contains the
entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any
nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

22. No Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by
the party asserted to have granted such waiver. 
 23. Pronouns and Plurals. Whenever the context may require, any
pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa. 

24. Headings. The titles of Sections and Subsections contained in this Agreement are for convenience only, and they neither form
a part of this Agreement nor are they to be used in the construction or interpretation hereof. 
 25. Execution in
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same
instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 

  
 13 

 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above. 
  

							
			NEXPOINT RESIDENTIAL TRUST, INC.
			
			By:		  

					Name:
					Title:
		
			NEXPOINT RESIDENTIAL OPERATING PARTNERSHIP, LP
		
			 By: NexPoint Residential Trust Operating Partnership GP, LLC., its General Partner

					
				
					By:		  

							Name:
							Title:
		
			NEXPOINT REAL ESTATE ADVISORS, L.P.
			
			By:		  

					Name:
					Title:

 [Signature Page to Advisory Agreement] 

 EXHIBIT A 

Description of Administration Services. 

Advisor will perform the following administration services: 
  

	(i)	Prepare monthly transaction listings; 

  

	(ii)	Supply various normal and customary portfolio and Company statistical data as requested on an ongoing basis; 

  

	(iii)	Prepare for execution and file the Company’s Federal and state tax returns: prepare a fiscal tax provision in coordination with the annual audit; prepare an excise tax provision; and prepare all relevant 1099
calculations; 

  

	(iv)	Coordinate contractual relationships and communications between the Company and its contractual service providers; 

  

	(v)	Coordinate printing of the Company’s annual shareholder reports; 

  

	(vi)	Prepare income and capital gain distributions; 

  

	(vii)	Prepare the quarterly and annual financial statements; 

  

	(viii)	Monitor the Company’s compliance with the Internal Revenue Code of 1986, as amended, SEC reporting requirements; 

  

	(ix)	Prepare, coordinate with the Company’s counsel and coordinate the filing with the SEC: quarterly reports on Form 10-Q; annual reports on Form 10-K, in each case based upon information provided by the Company;
assist in the preparation of Forms 3, 4 and 5 pursuant to Section 16 of the 1934 Act for the officers and directors of the Company, such filings to be based on information provided by those persons; 

 

	(x)	Assist in the preparation of notices of meetings of shareholders, coordinate preparation of proxy statements, including obtaining information required to be disclosed by applicable regulations and the engagement of
proxy solicitors on behalf of the Company; 

  

	(xi)	Assist in obtaining directors’ and officers’/errors and omissions insurance policies for the Company, including evaluation of insurance carriers, recommending appropriate coverage levels and evaluating the
costs thereof, as such policies are approved by the Company’s Board of Directors; 

  

	(xii)	Draft agendas and resolutions for quarterly and special board meetings; 

  

	(xiii)	Coordinate the preparation, assembly and posting of board materials; 

  

	(xiv)	Attend board meetings and draft minutes thereof; 

  

	(xv)	Maintain the Company’s calendar to assure compliance with various filing and board approval deadlines; 

  

	(xvi)	Assist the Company in the handling of SEC examinations and responses thereto; 

  

	(xvii)	If the chief executive officer or chief financial officer of the Company is required to provide a certification as part of the Company’s Form 10-Q or Form 10-K filing pursuant to regulations promulgated by the SEC
under Section 302 of the Sarbanes-Oxley Act of 2002, Advisor will provide (to such person or entity as agreed between the Company and Advisor) a sub-certification in support of certain matters set forth in the aforementioned certification, such
sub-certification to be in such form and relating to such matters as agreed between the Company and Advisor from time to time. Advisor shall be required to provide the subcertification only during the term of the Agreement and only if it receives
such cooperation as it may request to perform its investigations with respect to the sub-certification. For clarity, the sub-certification is not itself a certification under the Sarbanes-Oxley Act of 2002 or under any other regulatory requirement;

	(xviii)	Prepare and coordinate the Company’s state notice filings; 

  

	(xix)	Furnish the Company office space in the offices of Advisor, or in such other place or places as may be agreed from time to time, and all necessary office facilities, simple business equipment, supplies, utilities and
telephone service for managing the affairs of the Company; 

  

	(xx)	Perform clerical, bookkeeping and other administrative services not provided by the Company’s other service providers; 

  

	(xxi)	Determine or oversee the determination of the Company’s Average Real Estate value in accordance with the Company’s policies as adopted from time to time by the Board of Directors; 

 

	(xxii)	Oversee the maintenance by the Company’s custodian and transfer agent and dividend disbursing agent of certain books and records of the Company and maintain (or oversee maintenance by such other persons as approved
by the Board of Directors) such other books and records required by law or for the proper operation of the Company; 

  

	(xxiii)	Prepare such information and reports as may be required by any stock exchange or exchanges on which the Company’s shares are listed; 

 

	(xxiv)	Determine the amounts available for distribution as dividends and distributions to be paid by the Company to its shareholders; calculate, analyze and prepare a detailed income analysis and forecast future earnings for
presentation to the Board of Directors; prepare and arrange for dividend notices to shareholders, as applicable, and provide the Company’s dividend disbursing agent and custodian with such information as is required for such parties to effect
the payment of dividends and distributions and to implement the Company’s dividend reinvestment plan, if any; 

  

	(xxv)	Serve as liaison between the Company and each of its service providers; 

  

	(xxvi)	Assist in monitoring and tracking the daily cash flows of the individual assets of the Company, as well as security position data of portfolio investments; assist in resolving any identified discrepancies with the
appropriate third party, including the Company’s custodian, administrative agents and other service providers, through various means including researching available data via agent notices, financial news and data services, and other sources;

  

	(xxvii)	Monitor compliance with leverage tests under the Company’s credit facility, if any, and communicate with leverage providers and rating agencies; 

 

	(xxviii)	Coordinate negotiation and renewal of credit agreements for presentation to the Board of Directors; 

  

	(xxix)	Coordinate negotiations of agreements with counterparties and the Company’s custodian for derivatives and similar transactions, as applicable; 

 

	(xxx)	Provide assistance with the closing of Real Estate Asset purchases and dispositions; 

  

	(xxxi)	Coordinate and oversee the provision of legal services to the Company; 

  

	(xxxii)	Cooperate with the Company’s independent registered public accounting firm in connection with audits and reviews of the Company’s financial statements, including interviews and other meetings, as necessary;

  

	(xxxiii)	Provide Secretary and any Assistant Secretaries, Treasurer and any Assistant Treasurers and other officers for the Company as requested; 

 

	(xxxiv)	Develop or assist in developing guidelines and procedures to improve overall compliance by the Company; 

  

	(xxxv)	Determine and monitor expense accruals for the Company; 

  

	(xxxvi)	Authorize expenditures and approve bills for payment on behalf of the Company; 

  

	(xxxvii)	Monitor the number of shares of the Company registered and assist in the registration of additional shares, as necessary; 

	(xxxviii)	Exercise or procure the exercise of any rights of the Company with respect to any class action proceedings or other legal action concerning investments of the Company; 

 

	(xxxix)	Prepare such reports as the Board of Directors of the Company may request from time to time; and 

  

	(xl)	Perform such additional administrative duties relating to the administration of the Company as may subsequently be agreed upon in writing between the Company and Advisor.PFE-12.31.2014-Ex10.8

Exhibit 10.8

AMENDMENT No. 2
to the

PFIZER INC. NONFUNDED DEFERRED COMPENSATION
AND SUPPLEMENTAL SAVINGS PLAN

WHEREAS, Pfizer Inc. (the “Company”) sponsors the Pfizer Inc. Nonfunded Deferred Compensation and Supplemental Savings Plan (the “PSSP”), for certain of a select group of its management employees and former management employees; 

WHEREAS, the Board of Directors of the Company (the “Board”) in its December, 2013 meeting adopted a resolution which approved the amendment and/or restatement of certain of the Company’s U.S. and Puerto Rico defined contribution qualified and nonqualified savings plans, including any related trust or other agreements, to:  (1) change the timing of the Company’s matching contribution to a quarterly basis from a per pay period basis; and (2) require, except in the event of retirement, disability, or death, that participants be actively employed at the end of each quarter to receive such matching contribution relating to that quarter, and the Board authorized each of the appropriate officers and committees of the Board and the Company, or their respective designees, to take any and all actions necessary, advisable or appropriate to effectuate such resolution, including but not limited to, preparing forms of amendments and/or restatements of (a) the Plans, and/or (b) any related trust or other agreements;    

WHEREAS, the Board of Directors of the Company (the “Board”) in its September 23, 2014 meeting adopted a resolution which approved the amendment and/or restatement of certain of the Company’s U.S. and Puerto Rico defined contribution qualified and nonqualified savings plans, including any related trust or other agreements, to require that matching contributions are invested pursuant to the investment allocations elected by the participant, and the Board authorized each of the appropriate officers and committees of the Board and the Company, or their respective designees, to take any and all actions necessary, advisable or appropriate to effectuate such resolution, including but not limited to, preparing forms of amendments and/or restatements of (a) the Plans, and/or (b) any related trust or other agreements;    

WHEREAS, the Company would now like to adopt the specific provisions to the PSSP reflecting the foregoing resolutions as well as some non-substantive amendments and clarifications; 

WHEREAS, the Savings Plan Committee of the Company is adopting these amendments pursuant to its authority in Section 11 of the PSSP;

NOW THEREFORE BE IT:

RESOLVED, that effective on April 1, 2014, the PSSP is amended to provide that: (1) the timing of the Company’s matching contribution is changed to a quarterly basis from a per pay period basis; and (2) except in the event of retirement, disability, or death, participants must be actively employed at the end of each quarter to receive such matching contribution relating to that quarter; 

RESOLVED, that effective on January 1, 2015, the PSSP is amended to add a one year statute of limitations for filing lawsuits after the denial of an appeal and clarify that there is no suspension of installment payments upon rehire; 

RESOLVED, that effective with respect to earnings on and after January 1, 2015, the PSSP is amended to provide that that Company matching contributions are invested pursuant to the investment allocations elected by the participant; 

RESOLVED, that the amendments to the PSSP set forth in Exhibit A as appended hereto are approved, and it is formally acknowledged that such amendments constitute and are hereby adopted as part of the official Plan documents of the PSSP, for any and all purposes, until such time as the PSSP may be further amended or restated in its entirety; and 

RESOLVED,  that the proper Company officers or their delegates be, and hereby are, and each of them be, and hereby is, authorized, empowered and directed to take all such additional and further actions as they or counsel for the Company shall deem necessary, advisable or appropriate to restate the Plan and related trust to carry out the intent and purposes of these resolutions, including, but not limited to, the implementation of further amendments, restatements or clarifications throughout or with respect to the Plan.

SAVINGS PLAN COMMITTEE

Date:  December 5, 2014                /S/  JANICE BEAUCHAMP
Janice Beauchamp
        

Date:  December 3, 2014                /S/  BRIAN BYALA
Brian Byala
        

Date:  December 4, 2014                /S/  JOSEPH GRUBER
Joseph Gruber
        

Date:  December 3, 2014                /S/  BRIAN MCMAHON
Brian McMahon
        

Date:  December 10, 2014                /S/  TRACY MILLER
Tracy Miller

Date:  December 3, 2014                /S/  STEPHEN PENNACCHIO
Stephen Pennacchio
        

Date:  December 3, 2014                /S/  WILLIAM ROCHE 
William Roche
        

Exhibit A
Amendment to the
Pfizer Inc. Nonfunded Deferred Compensation and Supplemental Savings Plan (the “PSSP”)

*     *     *

(New material in bold and italics; deletions crossed out)

		
	1.
	Section 3.4 is amended to read as follows:

3.4    Amount of Elections.  Each election for Excess Regular Earnings Deferrals to the Plan filed by an Eligible Employee must specify the amount of Excess Regular Earnings Deferrals in a whole percentage from 1% to 20% (30% effective January 1, 2013) of the Member’s Excess Regular Earnings (from 1% to 15% for Members located in Puerto Rico) unless the Committee establishes a lesser percentage for the Plan Year.
		
	2.
	Effective April 1, 2014, Section 4.1 is amended to read as follows:

4.1    General Rule.
(a)    An Employer Accrual will be credited to a Member’s Account with respect to the eligible portion of Excess Regular Earnings Deferrals of such Member at the Member’s applicable percentage rate of “Matching Contributions” with respect to “After-Tax Contributions,”  “Before-Tax Contributions,” and Roth 401(k) Contributions under the Qualified Plan.  The Employer Accrual shall be credited as soon as practicable following the payroll period, and effective April 1, 2014, as soon as practicable following the last day of the calendar quarter provided the Member is actively employed on such date, for which the Excess Regular Earnings Deferrals are made.  An Employer Accrual (based on the Member’s matching contribution formula under the Qualified Plan) also will be credited to the Account of a Member who elects to defer a percent of his or her bonus that otherwise would have been deferred under the Pfizer Deferred Compensation Plan, subject to the requirements of Section 409A.  Such Employer Accrual shall be credited as soon as practical following the payroll period, and effective April 1, 2014, as soon as practicable following the last day of the calendar quarter provided the Member is actively employed on such date, in which the bonus is deferred.  In no event shall a Special Accrual be subject to Employer Accruals under this Section 4.1.  Notwithstanding anything in this Section 4.1 to the contrary, for purposes of any distribution or withdrawal under the Plan, except as otherwise provided under Section 5.4, the amounts distributed or withdrawn shall be valued as of the last business day of the calendar quarter preceding the calendar quarter of the distribution or withdrawal.

(b)    An eligible Member who is not actively employed by an Employer on the last day of the calendar quarter as a result of such Member’s death, Long-Term Disability, Retirement, approved paid (including short-term disability) or unpaid leave of absence or military leave (provided that such Employee must return from military leave in accordance with USERRA to receive such contribution), shall receive his or her Employer Accrual for such calendar quarter: 

		
	(i)
	based on his or her After-Tax Contributions and/or Before-Tax Contributions up until the date upon which he or she is no longer actively employed as a result of any such 

death, Long-Term Disability or Retirement in the event of his or her death, Long-Term Disability or Retirement, or  
		
	(ii)
	based on his or her After-Tax Contributions and/or Before-Tax Contributions for the applicable calendar quarter in the event of any paid (including short-term disability) or unpaid leave of absence or military leave.

		
	(iii)
	“Long-Term Disability” for purposes of this Section 6.2, is the Employee’s absence from active employment while eligible for and receiving disability benefits under one of the Company’s long-term disability plans. “Retirement” for purposes of this Section 6.2, is a termination of employment with an Employer after the Eligible Employee has attained either (i) age 65, or (ii) age 55 with at least 10 Years of Service.

		
	3.
	Effective with respect to contributions on and after January 1, 2015, the first paragraph of Section 5.4 is amended to read as follows:

5.4    Investments.  All Excess Regular Earnings Deferrals and Retirement Savings Contributions will be credited with an amount equal to the amount which would have been earned had such amounts been actually invested in one or more of the “Funds” (other than the Pfizer Match Fund) available for investment under the Qualified Plan, as the Member may be defaulted into or elect from time to time, in one percent (1%) increments.  To the extent no investment election is provided with respect to a Special Accrual when such Special Accrual is credited to the Plan or otherwise, the Special Accrual shall be deemed to be invested in the default fund under the Plan.  The portion of the Member’s Account attributable to Employer Accruals shall be deemed to be invested in the Pfizer Match Fund.  Rules similar to those which govern the Qualified Plan shall apply for purposes of determining the value of the deemed investments (but based on this Plan’s valuation dates) and the timing, frequency and permissibility of investment transfers.  No provision of this Plan shall require the Company or any other Employer to actually invest any amount in any “Fund” or in any other investment vehicle.  The Plan is an unfunded plan that is not subject to the funding requirements of ERISA, meaning that there are no actual investments held in a trust.  The Accounts represent unsecured obligations of the Company, and no funds are set aside from the Company’s general assets to cover such Accounts.  The Plan is subject to the full faith and credit of the Company, and Members would be general creditors in the event of the Company’s insolvency.  Except as otherwise provided in this Section, distributions and withdrawals from the Plan are valued as of the last business day of the calendar quarter preceding the calendar quarter of the distribution.  Withdrawals on account of an Unforeseeable Emergency are valued as of the last business day of the month preceding the day that the withdrawal request is received.  Payments that would otherwise be made but are delayed on account of a Member being a Key Employee are valued on the distribution date.

		
	4.
	Section 6.1 is amended to read as follows:

6.1    Distribution of Benefits.  Unless otherwise specifically provided for in the Plan, distribution of a Member’s Grandfathered Amounts shall be paid in accordance with the distribution provisions of the Prior Plans.  Except as otherwise provided in this Section and the Plan, a Member shall be paid the balance of his Account following his or her Separation of from Service in accordance with the  Payment Option or Payment Options elected (or deemed elected by the Member) by the Member as permitted under the Plan.  A Member may have different Payment Option elections with respect to the portions of his or her Account, for example, for a Special Accrual or for a Member who was ineligible or a period of time and subsequently became eligible and was permitted or deemed to have made a new Payment Option election under the Plan with respect to future accruals under the Plan and in accordance with Section 409A.
		
	5.
	The second paragraph of Section 6.8 is amended to read as follows:

Members who have elected to receive their distribution (or portion thereof) in installments may not change the corresponding election once their installment distributions have begun or in the event of a rehire.

		
	6.
	Effective January 1, 2015, Section 9.4 is amended to read as follows:

    
9.4    Limitation on Period for Filing Claims.  No claim for benefits based upon a claim that contributions were not properly made under this Plan shall be approved under this Plan, and no action may be brought for benefits under this Plan pursuant to the denial of such a claim pursuant to Section 9.3 of this Plan, unless such claim for benefits is duly filed under Section 9.3 of this Plan no later than the last day of the second Plan Year beginning after the Plan Year in which the claim alleges that the contributions should have been credited.  No court action may be brought for benefits under this Plan pursuant to the denial of a Claim unless duly filed no later than the one year anniversary of the final denial of such Claim by the Committee.

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