Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 51

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 51
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CL allows current and former directors and officers, among others, to be indemnified against judgments, penalties, fines, settlements and reasonable expenses actually incurred in connection with any proceeding to which they may be made or threatened to be made a party by reason of their service in those capacities unless the following can be established:

| ● | an act or omission of the director or officer was material to the cause of action adjudicated in the proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty; |

| ● | the director or officer actually received an improper personal benefit in money, property or services; or |

| ● | with respect to any criminal proceeding, the director or officer had reasonable cause to believe his or her act or omission was unlawful. |

A court may order indemnification if it determines that the director or officer is fairly and reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the basis that personal benefit was improperly received. However, indemnification for an adverse judgment in a suit by the corporation or in its right, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses. The MGCL permits a corporation to advance reasonable expenses to a director or officer upon receipt of a written affirmation by the director or officer of his or her good-faith belief that he or she has met the standard of conduct necessary for indemnification and a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed if it is ultimately determined that the standard of conduct was not met.

To the maximum extent permitted by Maryland law, the New NXDT Charter contains a provision that limits directors’ and officers’ liability to New NXDT and its stockholders for monetary damages, and the New NXDT Charter and New NXDT Bylaws require New NXDT to indemnify and, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses in advance of final disposition of a proceeding to New NXDT’s directors and officers and permit New NXDT to provide such indemnification and advance of expenses to its employees and agents.

Indemnification may reduce the legal remedies available to New NXDT and New NXDT’s stockholders against the indemnified individuals. The aforementioned provisions of the New NXDT Charter and New NXDT Bylaws may not reduce the exposure of directors and officers to liability under securities laws’ nor do they limit a