Company: ADAMM
Filing Date: 2025-01-10
Form Type: 424B5
Source: 0001104659-25-002551
Chunk: 107

Company: ADAMAS TRUST, INC.
Filing Date: 2025-01-10
Form: 424B5
Chunk 107
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 the unrelated business taxable income provisions of the Code; and

•

any rural electrical or telephone cooperative.

For this reason, our charter prohibits disqualified organizations from owning our stock.

#### Requirements for Qualification

#### Organizational Requirements
A REIT is a corporation, trust, or association that meets each of the following requirements:

(1)

It is managed by one or more trustees or directors.

(2)

Its beneficial ownership is evidenced by transferable shares, or by transferable certificates of beneficial interest.

(3)

It would be taxable as a domestic corporation, but for Sections 856 through 860 of the Code.

(4)

It is neither a financial institution nor an insurance company subject to special provisions of the U.S. federal income tax laws.

(5)

At least 100 persons are beneficial owners of its shares or ownership certificates.

(6)

Not more than 50% in value of its outstanding shares or ownership certificates is owned, directly or indirectly, or by application of certain attribution rules, by five or fewer individuals, which the U.S. federal income tax laws define to include certain entities, during the last half of any taxable year.

(7)

It elects to be a REIT, or has made such election for a previous taxable year, and satisfies all relevant filing and other administrative requirements established by the IRS that must be met to elect and maintain REIT status.

(8)

It meets certain other qualification tests, described below, regarding the nature of its income and assets and the distribution of its income.

(9)

It uses a calendar year for U.S. federal income tax purposes and complies with the recordkeeping requirements of the U.S. federal income tax laws.

(10)

It has no earnings and profits from any non-REIT taxable year at the close of any taxable year.

We must meet requirements 1 through 4, 8 and 9 during our entire taxable year and must meet requirement 5 during at least 335 days of a taxable year of 12 months, or during a proportionate part of a taxable year of less than 12 months. Requirements 5 and 6 applied to us beginning with our 2005 taxable year. If we comply with all the requirements for ascertaining the ownership of our outstanding stock in a taxable year and have no reason to know that we violated requirement 6, we will be deemed to have satisfied requirement 6 for that taxable year. For purposes of determining share ownership under requirement 6, an “individual” generally includes a supplemental unemployment