Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 132

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 132
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 use its reasonable best efforts to take such actions as are necessary or appropriate to preserve the status of New NXDT as a REIT; however, if the New NXDT board of directors determines that it is no longer in the best interests of New NXDT to attempt to, or continue to, qualify as a REIT under the Code, such board may authorize New NXDT to revoke or otherwise terminate its REIT election pursuant to the Code. |

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| Old NXDT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |     | New NXDT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Duration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| The Declaration of Trust provides that the duration of Old NXDT is perpetual, subject to its earlier termination in accordance with the provisions of the Declaration of Trust.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     | The duration of New NXDT is perpetual, subject to earlier termination as provided for by the MGCL.                                                                                                                                                                                                                                                                                                                                                                                                      |
| Personal Liability Shareholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Delaware law provides that shareholders of a Delaware statutory trust are entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the Delaware General Corporation Law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     | The MGCL provides that stockholders of a Maryland corporation are generally shielded from personal liability for the corporation’s debts or obligations.                                                                                                                                                                                                                                                                                                                                                |
| Limitation of Liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Delaware law permits Old NXDT to include in its governing instruments a provision limiting any fiduciary or other duties of Old NXDT’s trustees and officers to our shareholders and Old NXDT for money damages, as well as liabilities for breach of contract, provided that a governing instrument may not limit or eliminate liability for any act or omission that constitutes a bad faith violation of the implied covenant of good faith and fair dealing. Further, Delaware law provides that a trustee, when acting in such capacity, shall not be personally liable to any person other than the statutory trust or shareholder for any act, omission or obligation of the statutory trust or any trustee thereof; and an officer, when acting in such capacity, shall not be personally liable to any person other than the statutory trust or a trustee or shareholder for any act, omission or obligation of the statutory trust or any trustee thereof. The Declaration of