Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 87

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 87
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The Board shall not (A) (i) change, withdraw, or qualify in any manner adverse to NXDT the Recommendation, (ii) approve, adopt or recommend any Company Acquisition Proposal, (iii) fail to include the Recommendation in the Information Circular, (iv) within five (5) Business Days of NXDT’s written request, fail to make or reaffirm the Recommendation following the date any Company Acquisition Proposal or any material modification thereto is first published or sent or given to the Unitholders, (v) fail to recommend against any Company Acquisition Proposal that is a tender offer or exchange offer within 10 Business Days after the commencement of such tender offer or exchange offer or (vi) publicly propose or agree to any of the foregoing (any of the actions described in clauses (i) through (vi), an “Adverse Recommendation Change”) or (B) approve, adopt or recommend (or agree to, resolve or propose to approve, adopt or recommend), cause or permit the REIT or any of its Subsidiaries to enter into, any Alternative Acquisition Agreement.

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Notwithstanding the foregoing, at any time prior to obtaining the Requisite Vote, the Board may:

| (i) | effect an Adverse Recommendation Change if an Intervening Event has occurred and the Board determines, after consultation with its outside legal counsel, that the failure to take such action would reasonably be expected to be inconsistent with the trustees’ or directors’ duties under applicable law; or |

| (ii) | effect an Adverse Recommendation Change and/or terminate the Merger Agreement: |

| a. | in response to an unsolicited written bona fide Company Acquisition Proposal that the Board determines, after consultation with its outside legal counsel and financial advisors, constitutes a Superior Proposal after having complied with, and giving effect to all of the adjustments which may be offered by NXDT and such Company Acquisition Proposal is not withdrawn; and |

| b. | the Board determines, after consultation with its outside legal counsel, that the failure to take such action would reasonably be expected to be inconsistent with the trustees’ or directors duties under applicable law. |

The Board will only be entitled to effect an Adverse Recommendation Change and/or terminate the Merger Agreement if:

| (i) | the REIT has provided a prior written notice (a “Notice of Change of Recommendation”) to NXDT that the REIT intends to take such action, identifying the Person making the Superior Proposal and describing the material terms and conditions of