Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 225

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 225
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 by an individual or entity of an interest in an entity that owns, beneficially or constructively, shares of New NXDT’s stock), could, nevertheless, cause that individual or entity, or another individual or entity, to own beneficially or constructively shares of New NXDT’s stock in excess of the ownership limits.

New NXDT’s board of directors, in its sole discretion, may exempt, prospectively or retroactively, a particular stockholder from the ownership limits or establish a different limit on ownership (the “excepted holder limit”) if New NXDT’s board of directors determines that:

| • | no individual’s beneficial or constructive ownership of New NXDT’s stock will result in our being “closely held” under Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise result in our failing to qualify as a REIT; and |

| • | such stockholder does not and will not own, actually or constructively, an interest in a tenant of ours (or a tenant of any entity owned or controlled by us) that would cause New NXDT to own, actually or constructively, more than a 9.8% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant (or the Board determines that revenue derived from such tenant will not affect our ability to qualify as a REIT). |

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The New NXDT Charter provides that any violation or attempted violation of any such representations or undertakings will result in such stockholder’s shares of stock being automatically transferred to a charitable trust, and the purported owner or transferee acquiring no rights in such shares. As a condition of granting the waiver or establishing the excepted holder limit, New NXDT’s board of directors may require an opinion of counsel or a ruling from the IRS, in either case in form and substance satisfactory to New NXDT’s board of directors, in its sole discretion, in order to determine or ensure our status as a REIT and such representations and undertakings from the person requesting the exception as New NXDT’s board of directors may require in its sole discretion to make the determinations above. New NXDT’s board of directors may impose such conditions or restrictions as it deems appropriate in connection with granting such a waiver or establishing an excepted holder limit. It is expected that New NXDT’s board of directors will grant waivers from the ownership limits