Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 82

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 82
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 from its provisions, including business combinations that are exempted by provision in the charter of the corporation.
Our charter provides that we elect not to be governed by the provisions of the Maryland Business Combination Act.

Maryland Control Share Acquisition Act

The Maryland Control Share
Acquisition Act causes persons who acquire beneficial ownership of stock at levels of 10%, 33%, and more than 50% (control share acquisitions)
to lose the voting rights of such stock unless voting rights are restored by the stockholders at a meeting by vote of two-thirds of all
the votes entitled to be cast on the matter (excluding stock held by the acquiring stockholder or the corporation’s officers or
employee directors). The Maryland Control Share Acquisition Act affords a cash-out election for stockholders other than the acquiring
stockholder, at an appraised value (but not less than the highest price per share paid by the acquiring person in the control share acquisition),
payable by the corporation, if voting rights for more than 50% of the outstanding stock are approved for the acquiring person. Under
certain circumstances, the corporation may redeem shares acquired in a control share acquisition if voting rights for such shares have
not been approved. The statute does not apply (a) to shares acquired in a merger, consolidation, or share exchange if the corporation
is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. A corporation’s
board of directors has an “opt-out” power, exercisable through amendment of the corporation’s bylaws (which could be
changed by the stockholders), to exempt in advance any control share acquisition from the Maryland Control Share Acquisition Act. Our
bylaws contain a provision exempting from the Maryland Control Share Acquisition Act acquisitions by certain persons of shares of our
common stock in accordance with waivers from the ownership limit in our charter granted to such persons by our board of directors.

The Maryland Control Share
Acquisition Act could have the effect of discouraging offers to acquire us and of increasing the difficulty of consummating any such
offers.

Board of Directors, Vacancies, and Removal of Directors

All directors are elected
annually to serve until the next annual meeting of stockholders and until their respective successors are duly elected and qualify.

Pursuant to our election
to be subject to certain provisions of the Maryland General Corporation Law, any vacancy on our board of directors may be filled only
by the affirmative vote of a majority of the remaining directors in office,