Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 85

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 85
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, in which case the Non-U.S. Holder will be subject
to a 30% tax on the Non-U.S. Holder’s capital gains (or such lower rate specified by an applicable income tax treaty), which
may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident
of the United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.
In addition, even if we are a domestically controlled qualified investment entity, upon disposition of our capital stock, a Non-U.S. Holder
may be treated as having gain from the sale or other taxable disposition of a USRPI if the Non-U.S. Holder (1) disposes of such
stock within a 30-day period preceding the ex-dividend date of a distribution, any portion of which, but for the disposition, would have
been treated as gain from the sale or exchange of a USRPI and (2) acquires, or enters into a contract or option to acquire, or is deemed
to acquire, other shares of that stock during the 61-day period beginning with the first day of the 30-day period described in clause (1),
unless such class of stock is “regularly traded” and the Non-U.S. Holder did not own more than 10% of such class of
stock at any time during the one-year period ending on the date of the distribution described in clause (1).

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If gain on the sale, exchange
or other taxable disposition of our capital stock were subject to taxation under FIRPTA, the Non-U.S. Holder would be required to
file a U.S. federal income tax return and would be subject to regular U.S. federal income tax with respect to such gain in
the same manner as a taxable U.S. Holder (subject to any applicable alternative minimum tax and a special alternative minimum tax
in the case of nonresident alien individuals). In addition, if the sale, exchange or other taxable disposition of our capital stock were
subject to taxation under FIRPTA and if shares of the applicable class of our capital stock were not “regularly traded” on
an established securities market, the purchaser of such capital stock generally would be required to withhold and remit to the IRS 15%
of the purchase price.

Redemption or Repurchase by Us

A redemption or repurchase
of shares of our