Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 46

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 46
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 day prior to the date of such transfer (a “Charitable Transfer”), and such person will acquire no rights in such shares; provided, that if the transfer to the charitable trust described by the foregoing would not be effective for any reason to prevent the violation of the Restrictions, then the transfer of that number of shares of Old NXDT that otherwise would cause any person to violate the Restrictions will be void ab initio, and the intended transferee will acquire no rights in such shares of Old NXDT. 
 (i)        To the extent that, upon a Charitable Transfer, a violation of any provision of the Declaration of Trust governing restrictions on transfer and ownership of shares would nonetheless be continuing (for example where the ownership of shares of Old NXDT by a single charitable trust would violate the 100 shareholder requirement applicable to REITs), then shares of Old NXDT will be transferred to that number of charitable trusts, each having a distinct charitable trustee and a charitable beneficiary or charitable beneficiaries that are distinct from those of each other trust, such that there is no violation of any such provisions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
 (ii)         In determining which shares of Old NXDT should be subject to a Charitable Transfer, shares of Old NXDT will be so transferred to a charitable trust in such manner that minimizes the aggregate value of the shares of Old NXDT that are transferred to the charitable trust (except to the extent that the Board determines that the shares of Old NXDT transferred to the charitable trust will be those directly or indirectly held or beneficially owned or constructively owned by a person or persons that caused or contributed to the application of the provision of the Declaration of Trust requiring a Charitable Transfer), and to the extent not inconsistent therewith, on a pro rata basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |     |          |

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| Old NXDT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |     | New NXDT |
| If the Board at any time determines that a transfer or other event has taken place that results in a violation of the Restrictions or the terms relating to a Charitable Transfer, or that a person intends to acquire or has attempted to acquire beneficial ownership or constructive ownership of any shares in violation of the same (whether or not such violation is intended), the Board will take such action as it deems advisable to refuse to give effect to or to prevent such transfer or other event, including, without limitation, causing Old NXDT to redeem shares of Old