Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 135

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 135
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 time of such devise or gift) and (b) the market price on the date New NXDT accepts, or New NXDT’s designee, accepts such offer. New NXDT may reduce the amount so payable to the trustee by the amount of any distribution that New NXDT made to the prohibited owner before New NXDT discovered that the shares had been automatically transferred to the trust and that are then owed by the prohibited owner to the trustee as described above, and New NXDT may pay the amount of any such reduction to the trustee for distribution to the charitable beneficiary. New NXDT has the right to accept such offer until the trustee has sold the shares of New NXDT’s stock held in the trust as discussed below. Upon a sale to New NXDT, the New NXDT Charter provides that the interest of the charitable beneficiary in the shares sold terminates, and the trustee must distribute the net proceeds of the sale to the prohibited owner and must distribute any distributions held by the trustee with respect to such shares to the charitable beneficiary.

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If New NXDT does not buy the shares, the trustee must, within 20 days of receiving notice from New NXDT of the transfer of shares to the trust, sell the shares to a person or entity designated by the trustee who could own the shares without violating the ownership limits or the other restrictions on ownership and transfer of New NXDT’s stock. After the sale of the shares, the New NXDT Charter provides that the interest of the charitable beneficiary in the shares transferred to the trust will terminate and the trustee must distribute to the prohibited owner an amount equal to the lesser of (a) the price paid by the prohibited owner for the shares (or, if the prohibited owner did not give value for the shares in connection with the event causing the shares to be held in the trust (for example, in the case of a gift, devise or other such transaction), the market price of the shares on the day of the event causing the shares to be held in the trust) and (b) the sales proceeds (net of any commissions and other expenses of sale) received by the trust for the shares. The trustee may reduce the amount payable to the prohibited owner by the amount of any distribution that New NXDT paid to the prohibited owner before New NXDT discovered that the shares had been automatically transferred to the trust and that are then owed by the prohibited owner to the trustee as described above. Any net sales proceeds in excess of the amount payable to the prohibited owner must be paid immediately