Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 24

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 24
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) be a party to the business combination or held by an affiliate or associate of the interested stockholder. These provisions of the MGCL do not apply, however, to business combinations that are approved or exempted by our Board prior to the time that someone becomes an interested stockholder or comply with certain fair price requirements set forth in the MGCL.

Pursuant to the statute, New NXDT’s board of directors will elect, by resolution, to exempt from the Maryland Business Combination Act all business combinations (a) between New NXDT and the Adviser, Jim Dondero and certain of his affiliates or their respective affiliates and (b) between New NXDT and any other person, provided that in the latter case the business combination is first approved by New NXDT’s board of directors (including a majority of directors who are not affiliates or associates of such person). Consequently, the five-year prohibition and the supermajority vote requirements will not apply to a business combination between us and our Adviser and its affiliates or to a business combination between us and any other person if New NXDT’s board of directors has first approved the combination. As a result, any person described in the preceding sentence may be able to enter into business combinations with New NXDT that may not be in the best interest of New NXDT’s stockholders, without compliance by New NXDT with the supermajority vote requirements and other provisions of the statute. We cannot assure you that New NXDT’s board of directors will not amend or repeal this resolution in the future.

Control Share Acquisitions

The MGCL provides that holders of “control shares” of a Maryland corporation acquired in a “control share acquisition” (defined as the direct or indirect acquisition of issued and outstanding “control shares,” subject to certain exceptions) have no voting rights with respect to such shares except to the extent approved by New NXDT’s stockholders by the affirmative vote of at least two-thirds of all of the votes entitled to be cast on the matter. Shares owned by the acquirer, an officer of the corporation or an employee of the corporation who is also a director of the corporation are excluded from shares entitled to vote on the matter.

“Control shares” are voting shares of stock that, if aggregated with all other such shares of stock owned by the acquirer, or in respect of which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within