Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 23

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 23
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 of any class or series of preferred stock, including the rights of the holders of the New Series A Preferred Stock with respect to the election of Preferred Stock Directors (as defined in the section titled “Description of New NXDT’s Capital Stock” below), the holders of a majority of the outstanding shares of New Common Stock and New Series A Preferred Stock, voting as a single class, can elect all of the directors then standing for election. Directors of New NXDT will be elected by a plurality of all votes cast in the election of directors.

Removal of Directors

Subject to the terms of any class or series of preferred stock, the New NXDT Charter provides that a director may be removed only for cause (as defined in the New NXDT Charter) and only by the affirmative vote of a majority of the votes entitled to be cast generally in the election of directors. This provision, when coupled with the exclusive power of New NXDT’s board of directors to fill vacancies, subject to the terms of any class or series of preferred stock, on New NXDT’s board of directors, precludes stockholders from removing incumbent directors (except for cause and upon a substantial affirmative vote) and filling the vacancies created by such removal with their own nominees.

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Business Combinations

Under the MGCL, certain “business combinations” (including a merger, consolidation, statutory share exchange or, in certain circumstances, an asset transfer or issuance or reclassification of equity securities) between a Maryland corporation and an “interested stockholder” (defined generally as any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding shares of voting stock or an affiliate or associate of the corporation who, at any time within the two-year period immediately prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then outstanding stock of the corporation), or an affiliate of any such interested stockholder, are prohibited for five years after the most recent date on which such interested stockholder becomes an interested stockholder. Thereafter any such business combination must be generally recommended by the board of directors of the corporation and approved by the affirmative vote of at least (a) 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation and (b) two-thirds of the votes entitled to be cast by holders of voting stock of the corporation, other than shares held by the interested stockholder who will (or whose affiliate will