Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 90

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 90
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 by NXDT because (a) the Board has effected an Adverse Recommendation Change, the REIT has entered into an Alternative Acquisition Agreement or the REIT has breached or failed to perform in any of its covenants; or (b) a breach has occurred on the part of the Company, NHT Holdings, NHT Intermediary or NHT OP that would cause certain conditions precedent to be incapable of being satisfied by the Outside Date; or (ii) by the Company because, prior to obtaining the Requisite Vote, the Board effects an Adverse Recommendation Change in connection with a Superior Proposal; or (iii) by either NXDT or the Company because the Mergers have not been consummated on or before the Outside Date, then the Company shall pay the Company Termination Fee, which is $370,000.

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If Merger Agreement is terminated by the Company because a breach has occurred on the part of the NXDT Parties that would cause certain conditions precedent to be incapable of being satisfied by the Outside Date, then NXDT shall pay to the Company the NXDT Termination Amount, which is $370,000.

Prior to the Company Merger Effective Time, NXDT shall purchase customary “tail” or “run-off” policies of trustees’ and officers’ liability insurance (the “Tail Insurance”) providing protection as favourable in the aggregate as the protection provided by the policies maintained by the Company in effect immediately prior to the Company Merger Effective Time and providing protection in respect of claims arising from facts or events which occurred on or prior to the Company Merger Effective Time. Such policies shall cover the Company so as to maintain coverage under the policies in effect prior to the Company Merger Effective Time without any reduction in scope or coverage for a period of six (6) years from the Company Merger Effective Time. NXDT shall not be required to pay annual premiums for insurance in excess of 300% of the most recent annual premiums paid by the Company, prior to the date of the Merger Agreement.

From and after the Company Merger Effective Time, NXDT shall, and shall cause the Surviving Company and the Surviving OP to indemnify, defend and hold harmless each current or former director, trustee or officer of the Company or any of the Company Subsidiaries and each fiduciary under benefit plans of the Company or any of the Company Subsidiaries (each, an “Indemnified Party”) against (i) all losses, expenses