Company: NXDT
Filing Date: 2025-04-23
Form Type: S-4/A
Source: 0001437749-25-012810
Chunk: 39

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-04-23
Form: S-4/A
Chunk 39
---
 the Board immediately prior to the Conversion.

The New NXDT Charter provides that the number of New NXDT directors may only be increased or decreased by the board of directors pursuant to the New NXDT Bylaws. The New NXDT Bylaws provide that the number of New NXDT directors may be established, increased or decreased by New NXDT’s board of directors but, unless the New NXDT Bylaws are amended, may not be fewer than the minimum number required by the MGCL, nor more than fifteen. The New NXDT Charter and New NXDT Bylaws provide for a single of class directors elected for a term of one year.

Subject to the terms of any class or series of preferred stock, vacancies on New NXDT’s board of directors may be filled only by a majority of the remaining directors, even if the remaining directors do not constitute a quorum, and any director elected to fill a vacancy will hold office for the remainder of the full term of the directorship in which the vacancy occurred and until his or her successor is duly elected an qualified.

Each of New NXDT’s directors will be elected by its stockholders to serve until the next annual meeting of the stockholders and until his or her successor is duly elected and qualified. Under the New NXDT Charter, there is no cumulative voting in the election of directors. Subject to the terms of any class or series of preferred stock, including the rights of the holders of the New Series A Preferred Stock with respect to the election of Preferred Stock Directors (as defined in the section titled “Description of New NXDT’s Capital Stock” below), the holders of a majority of the outstanding shares of New Common Stock and New Series A Preferred Stock, voting as a single class, can elect all of the directors then standing for election. Directors of New NXDT will be elected by a plurality of all votes cast in the election of directors.

Removal of Directors

Subject to the terms of any class or series of preferred stock, the New NXDT Charter provides that a director may be removed only for cause (as defined in the New NXDT Charter) and only by the affirmative vote of a majority of the votes entitled to be cast generally in the election of directors. This provision, when coupled with the exclusive power of New NXDT’s board of directors to fill vacancies, subject to the terms of any class or series of preferred stock, on New NXDT’s board of directors, precludes stockholders from removing incumbent directors (except for cause and upon a substantial affirmative vote) and filling the