Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 72

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 72
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ger Consideration or the Operating Partnership Merger Consideration, as applicable.

The Parties, their respective affiliates, the Exchange Agent, and any other applicable withholding agent, as applicable, shall be entitled to deduct and withhold from the Merger Consideration and the Operating Partnership Merger Consideration, and any amounts in respect of the Reorganization, as applicable (and any other consideration otherwise payable pursuant to the Merger Agreement or deemed paid for Tax purposes), such amounts as it is required to deduct and withhold with respect to such payments under the Code or any other provision of state, local or foreign Law. Any such amounts so deducted and withheld will be paid over to the applicable Governmental Entity in accordance with applicable Law and will be treated for all purposes of the Merger Agreement as having been paid to the person in respect of which such deduction and withholding was made.

In accordance with the amendments to the Declaration of Trust (in the form attached as Appendix D to the Information Circular), Registered Holders will be granted the right to dissent in respect of the Transaction and be paid the fair value of their Units. Although the amendments to the Declaration of Trust will not be effective until the Transaction Resolution is approved by the Requisite Vote, Registered Holders will be able to exercise dissent rights in the manner set forth in the amendments to the Declaration of Trust (“Dissent Rights”) as if it were in force prior to its approval.

Registered Holders who are considering exercising their Dissent Rights should carefully review the description of such rights set forth in this Information Circular, as well as the amendments to the Declaration of Trust.

Any Registered Holder who properly dissents to the Reorganization in compliance with the amendments to the Declaration of Trust will, in the event the Transaction is completed, be deemed to have transferred their Units to the REIT for cancellation at the Reorganization Effective Time without any further act or formality on such Registered Holder’s part, and in consideration therefor, the REIT shall be deemed to have issued to such Registered Holder a debt-claim to be paid the fair value of those Units, and, in respect of the Units so deemed to be transferred: (i) the dissenting Registered Holder shall have been deemed to have executed and delivered all consents, releases, assignments and waivers, statutory or otherwise, required to transfer and assign such units to the REIT; and (ii) such Units shall be cancelled by the REIT and the register of Unitholders shall be revised accordingly. Any Registered Holder who properly dissents will only be entitled to be paid