Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 28

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 28
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 service of the applicable Trustee on the Board, the Compensation, Governance and Nominating Committee shall accept and recommend acceptance of the resignation by the Board. Within 90 days following the Meeting, the Board shall make its decision, on the Compensation, Governance and Nominating Committee’s recommendation. Following the Board’s decision on the resignation, the Board shall promptly disclose, via press release (a copy of which shall be provided to the TSXV), its decision as to whether or not to accept the Trustee’s resignation offer, including the reasons for rejecting the resignation offer, if applicable. A Trustee who tenders his or her resignation pursuant to the Majority Voting Policy will not be permitted to participate in any meeting of the Board or the Compensation, Governance and Nominating Committee at which the resignation is considered. In the event of a “contested election”, where the number of nominees for trustee exceeds the number of trustees to be elected, subject to applicable law, the voting method to be applied for purposes of electing trustees at the meeting will be determined by the Chair of the meeting in his or her sole discretion.

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Nominees

Pursuant to an investor rights agreement among NHT and certain Unitholders of NHT who are principals and affiliates of NexPoint Real Estate Advisors VI, L.P. (collectively, the “NexPoint Holders”) dated March 29, 2019 (the “Investor Rights Agreement”), the NexPoint Holders are granted the right to nominate two Trustees (such nominees are subject to election together with the remaining Trustees at annual meetings of Unitholders) subject to the NexPoint Holders owning, in the aggregate, 20% or more of the then-outstanding Units (determined as if all Class B Units are redeemed for Units), such number being reduced to one nominee if the NexPoint Holders own, in the aggregate, less than 20% but 10% or more of the then-outstanding Units (determined as if all Class B Units are redeemed for Units). Upon the NexPoint Holders’ aggregate ownership falling below 10%, the NexPoint Holders will not have any Board nomination rights. Notwithstanding the foregoing, where the Board is comprised of four or fewer Trustees, as long as the NexPoint Holders own, in the aggregate, 10% or more of the then-outstanding Units (determined as if all Class B Units are redeemed for Units), the NexPoint Holders are