Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 51

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 51
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 initial draft of the Merger Agreement for the Proposed Transaction.

On August 13, 2024, a meeting of the independent Trustees of the REIT (the “Independent Trustees”) was held to discuss the Proposed Transaction, including the role of the Independent Trustees and process for evaluating the Proposed Transaction. Goodmans noted that Winston had provided an initial draft of the Merger Agreement for Goodmans’ review. The Independent Trustees requested that a term sheet setting forth key terms for the Proposed Transaction (including a proposed price for the Units) be provided. Goodmans then discussed certain procedures that would be relevant in connection with the Proposed Transaction, including the formation of a special committee. The Independent Trustees requested that Goodmans circulate a draft special committee mandate, as well as information on fee ranges for other recent special committees. The Independent Trustees and Goodmans discussed the retention of legal counsel for the Special Committee and determined that Goodmans would act as legal counsel to the Special Committee. The Independent Trustees and Goodmans then discussed the process for retaining an independent financial advisor and Goodmans provided a list of potential financial advisors based on their experience, qualifications, reputation and independence from the REIT and NXDT.

Later that day, Goodmans circulated to the Independent Trustees a draft special committee mandate and resolutions approving same, a summary chart of recent special committee fee arrangements, a memorandum outlining the Independent Trustees’ duties and responsibilities in the context of the Proposed Transaction and a chart summarizing some of the key issues for the consideration of the Independent Trustees.

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On September 5, 2024, NXDT provided a draft of a term sheet in respect of the Proposed Transaction, which provided an initial outline of, among other things, the Reorganization (as defined below) and the Mergers (as defined below) which Goodmans reviewed and provided comments on.

On September 15, 2024, the Independent Trustees met with Goodmans to discuss the term sheet provided in respect of the Proposed Transaction. The Independent Trustees confirmed their intention to form a special committee to evaluate the Proposed Transaction and determined that Neil Labatte would serve as chair. Goodmans agreed to finalize the mandate based on the agreed-upon fees and would circulate to the Board, together with resolutions approving the formation of the special committee and mandate.

On September 15 2024, the Board approved the formation of the special committee of the REIT (the “Special Committee”), consisting of Neil Labatte, Graham Senst and Jerry Patava, with a mandate to