Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 231

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 231
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 conflicts of interest. The Board has the ultimate responsibility for the stewardship of the Code of Conduct.

In order to ensure compliance with the Code of Conduct, NHT personnel are encouraged to talk to supervisors, managers or other appropriate personnel about observed illegal or unethical behavior and when in doubt about the best course of action in a particular situation. Employees may report violations of the Code of Conduct anonymously. It is the policy of NHT not to allow retaliation for reports of misconduct by others made in good faith. It is, at the same time, unacceptable to file a report knowing it is false.

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| Board Committees |

The Board has established two committees: the Audit Committee and the Compensation, Governance and Nominating Committee.

| Audit Committee |

The Audit Committee consists of four Trustees, all of whom are persons determined by NHT to be financially literate within the meaning of National Instrument 52-110 – Audit Committees (“NI 52-110”), and a majority of whom are persons determined by NHT to be Independent Trustees within the meaning of NI 52-110.

The Audit Committee is currently comprised of Graham Senst (Chair), Neil Labatte, Jerry Patava and James Dondero. Mr. Senst, Mr. Labatte and Mr. Patava have been determined by NHT to be independent and are residents of Canada. Each of the Audit Committee members has an understanding of the accounting principles used to prepare financial statements and varied experience as to the general application of such accounting principles, as well as an understanding of the internal controls and procedures necessary for financial reporting. For details regarding the relevant education and experience of each member of the Audit Committee, see “Matters to be Considered at the Meeting–2. Election of Trustees”.

The Board has adopted a written charter for the Audit Committee, which sets out the Audit Committee’s responsibilities. A copy of the Audit Committee’s written charter is attached to this Information Circular as Appendix H. The Audit Committee has direct communication channels with the Chief Financial Officer and the external auditors of NHT to discuss and review such issues as the Audit Committee may deem appropriate.

Part 6 of NI 52-110 exempts issuers listed on the TSXV from the requirements of Parts 3 (Composition of the Audit Committee) and 5 (Reporting Obligations) of NI-52-110. As a result, all of the members of the Committee are not required to be independent within the meaning of NI 52-110; however,