Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 111

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 111
---
 of New Common Stock or shares of any class or series of stock ranking on a parity with the New Series B Preferred Stock as to the payment of dividends and distributions made for purposes of and in compliance with requirements of any incentive, benefit or stock purchase plan of New NXDT or any subsidiary thereof, or a redemption, purchase or acquisition of stock of any class or series of stock ranking on a parity with the New Series B Preferred Stock as to the payment of dividends and distributions or stock ranking junior to the New Series B Preferred Stock as to the payment of dividends and the distribution of assets upon liquidation as permitted under the New NXDT Charter) for any consideration (or any monies be paid to or made available for a sinking fund for the redemption of any such stock), directly or indirectly, by New NXDT (except by conversion into or exchange for stock ranking junior to the New Series B Preferred Stock as to the payment of dividends and the distribution of assets upon liquidation, or options, warrants or rights to subscribe for or purchase stock ranking junior to the New Series B Preferred Stock as to the payment of dividends and the distribution of assets upon liquidation, and except for purchases or exchanges pursuant to a purchase or exchange offer made on the same terms to all holders of shares of New Series B Preferred Stock and all holders of shares of any class or series of stock ranking on a parity with the New Series B Preferred Stock as to the payment of dividends and distributions).

If, for any taxable year, New NXDT elects to designate as “capital gain dividends” (as defined in Section 857 of the Code) any portion (the “Capital Gains Amount”) of the dividends (as determined for U.S. federal income tax purposes) paid or made available for the year to holders of all classes and series of stock (the “Total Dividends”), then the portion of the Capital Gains Amount that will be allocable to the holders of shares of New Series B Preferred Stock will be the amount that the total dividends (as determined for U.S. federal income tax purposes) paid or made available to the holders of shares of New Series B Preferred Stock for the year bears to the Total Dividends. New NXDT may elect to retain and pay income tax on its net long-term capital gains. In such a case, the holders of shares of New Series B Preferred Stock would include in income their appropriate share of New NXDT’s undistributed long-term capital gains, as designated by New NXDT.

Any dividend or other distribution payment made on the