DONDERO JAMES D 4

What Happened
James D. Dondero (reported as a 10% owner) received a grant of 197,789 restricted stock units (RSUs) on April 2, 2026. The Form 4 also shows exercises/conversions of derivative instruments on April 3 and April 4, 2026 for a combined 70,114 shares (36,830 on April 3 and 33,284 on April 4). The reported transactions list $0.00 as the per-share amount for the grant and for the reported dispositions/conversions.

Key Details

• Transaction dates: Grant (A) on 2026-04-02; Exercises/Conversions (M) on 2026-04-03 and 2026-04-04.
• Share counts: 197,789 RSUs granted; 36,830 and 33,284 shares exercised/converted (70,114 total).
• Prices/Value: Reported at $0.00 per share in the filing for these items (typical for RSU grants and many conversions reported as derivative settlements). No cash value is listed in the Form 4 excerpt.
• Filing/timeliness: Form covers period ending 2026-04-02 and was filed 2026-04-06; the filing appears timely.
• Footnotes of note:
  • F1/F8: Each RSU represents a contingent right to one share; the April 2, 2026 RSUs vest in four installments (2027–2030) and settlement generally occurs within 10 days of vesting (may be cash at committee’s discretion).
  • F9/F10: Earlier RSU grants (2023 and 2025) and their vest schedules are disclosed.
  • F3–F7: Many shares are held by funds/vehicles managed by NexPoint-related entities; Mr. Dondero may be deemed an indirect beneficial owner of those shares but disclaims beneficial ownership except to the extent of his pecuniary interest.
• Shares owned after transaction: Not specified in the provided excerpt of the filing.

Context
These entries are primarily grants of RSUs and conversions/exercises of derivative awards rather than open-market purchases or discretionary sales. For RSUs, the common pattern is grant → vest → conversion/settlement; the Form 4 shows both acquisition and immediate disposition entries for the exercised amounts, which often reflect settlement mechanics (for example, shares issued and then withheld or surrendered as part of settlement/tax withholding), though the filing itself does not state the precise reason for the dispositions. As a 10% owner with holdings across managed funds and trusts, Mr. Dondero’s Form 4 reflects both personal and entity-related disclosures rather than a straightforward insider “buy” signal.