Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 16

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 16
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 his affiliates such a wavier with respect to Old Common Shares of Old NXDT. These waivers will be subject to certain initial and ongoing conditions designed to protect New NXDT’s status as a REIT. |

| ● | New NXDT’s Board of Directors Has the Power to Cause New NXDT to Issue Additional Shares of New NXDT’s Stock without Stockholder Approval. The New NXDT Charter authorizes New NXDT to issue additional authorized but unissued shares of common or preferred stock. In addition, New NXDT’s board of directors may, without stockholder approval, amend the New NXDT Charter to increase the aggregate number of shares of New Common Stock or the number of shares of stock of any class or series that New NXDT has authority to issue and classify or reclassify any unissued shares of common or preferred stock and set the preferences, rights and other terms of the classified or reclassified shares. As a result, New NXDT’s board of directors may establish a series of shares of common or preferred stock that could delay or prevent a transaction or a change in control that might involve a premium price for shares of New Common Stock or otherwise be in the best interest of New NXDT’s stockholders. |

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Certain provisions of Maryland law may limit the ability of a third party to acquire control of New NXDT.

Certain provisions of the MGCL may have the effect of inhibiting a third party from acquiring New NXDT or of impeding a change of control under circumstances that otherwise could provide New NXDT’s common stockholders with the opportunity to realize a premium over the then-prevailing market price of such shares, including:

| ● | “control share” provisions that provide that holders of “control shares” of New NXDT (defined as voting shares of stock that, if aggregated with all other shares of stock owned or controlled by the acquirer, would entitle the acquirer to exercise one of three increasing ranges of voting power in electing directors) acquired in a “control share acquisition” (defined as the direct or indirect acquisition of issued and outstanding “control shares”) have no voting rights except to the extent approved by New NXDT’s stockholders by the affirmative vote of at least two-thirds of all of the votes entitled to be cast on the matter, excluding all interested shares. |

Pursuant to the Maryland Business Combination Act, New NXDT’s board of directors by resolution intends to exempt from the provisions of the Maryland Business Combination Act all business combinations (1) between our