Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 22

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 22
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 do, we will not need to make certain cash payments, provide indemnifications with respect to structural changes and make other accommodations for such third parties to obtain these consents. Any such indemnity or other accommodation may, among other things, adversely affect our operating results. Even if we are able to obtain such consents or approvals, doing so may require a significant amount of management time and attention, which could divert the attention of our management from running our day-to-day business and from accomplishing the other aspects of the Conversion and thus may delay our timetable.

New NXDT’s rights and the rights of New NXDT’s stockholders to recover claims against New NXDT’s independent directors are limited, which could reduce your and our recovery against them if they negligently cause New NXDT to incur losses.

Maryland law provides that a director has no liability in the capacity as a director if he or she performs his or her duties in good faith, in a manner he or she reasonably believes to be in the company’s best interest and with the care that an ordinarily prudent person in a like position would use under similar circumstances. As permitted by the Maryland General Corporation Law (the “MGCL”), the New NXDT Charter limits the liability of New NXDT’s directors and officers to New NXDT and its stockholders for money damages, except for liability resulting from:

| ● | actual receipt of an improper benefit or profit in money, property or services; or |

| ● | a final judgment based upon a finding of active and deliberate dishonesty by the director or officer that was material to the cause of action adjudicated. |

In addition, the New NXDT Charter authorizes New NXDT, and the New NXDT Bylaws require New NXDT, to indemnify New NXDT’s directors and officers for actions taken by them in those capacities and to pay or reimburse their reasonable expenses in advance of final disposition of a proceeding to the maximum extent permitted by Maryland law.

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New NXDT intends to enter into indemnification agreements with New NXDT’s directors and executive officers that provide for indemnification to the maximum extent permitted by Maryland law.

As a result, New NXDT and its stockholders may have more limited rights against New NXDT’s directors and officers than might otherwise exist under common law. Accordingly, in the event that actions taken by any of New NXDT’s directors or officers are immune or exculpated from, or indemnified against, liability but which impede New NXDT’s performance, New