Company: RWT-PA
Filing Date: 2025-04-01
Form Type: DEF 14A
Source: 0000930236-25-000012
Chunk: 80

Company: REDWOOD TRUST INC
Filing Date: 2025-04-01
Form: DEF 14A
Chunk 80
---
 transaction.

The terms of the severance and change of control arrangements that were in place with NEOs at the end of 2024 are described in more detail below under “Potential Payments upon Termination or Change of Control.”

Redwood does not provide for excise tax gross-ups for change-in-control severance payments . Redwood does not have any agreements in place with any NEO (or any other employee) that provide for an excise tax gross-up for a change-in-control severance payment, whether imposed under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) or otherwise. The Committee does not intend to offer any such excise tax gross-up provisions in any future agreements.

<div align='center'>74</div>

| Section IV - Compensation-Related Policies and Tax Considerations |     |   |     |                                                                                      |
|                                                                   |     | Ø |     | Mandatory Executive Stock Ownership Requirements                                     |
|                                                                   |     | Ø |     | Prohibition on Use of Margin, Pledging, and Hedging in Respect of Redwood Securities |
|                                                                   |     | Ø |     | Clawback Policy                                                                      |
|                                                                   |     | Ø |     | Tax Considerations                                                                   |
|                                                                   |     | Ø |     | Accounting Standards                                                                 |

#### Mandatory Executive Stock Ownership Requirements
As described on pages 16-17 of this Proxy Statement under the heading “Stock Ownership Requirements — Required Stock Ownership by Executive Officers,” the Committee maintains mandatory stock ownership requirements with respect to Redwood’s executive officers, which the Committee believes foster long-term alignment between executives and stockholders. The Committee regularly conducts a review of the executive stock ownership requirements and most recently updated these requirements in December 2022.

Mandatory Executive Stock Ownership Requirements

◦ Each executive officer is required to own common stock with a value at least equal to (i) 6.25 times current salary for the Chief Executive Officer, (ii) 3.25 times current salary for the President, and (iii) three times current salary for the other executive officers;

◦ Five years are allowed to initially attain the required level of ownership and five years are allowed to acquire additional incremental shares if promoted to a position with a higher requirement or when a salary increase results in a higher requirement (if not in compliance at the indicated times, then the executive officer is required to retain net after-tax shares of common stock delivered as compensation from the 2014 Incentive Plan or from the Executive Deferred Compensation Plan until compliance is