Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 28

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 28
---
 under “—Information Rights” below (including Section 314(a) of the Trust Indenture
Act) will, for the first 365 days after the occurrence of such an event of default, consist exclusively of the right to receive additional
interest on the notes at a rate equal to (i) 0.25% per annum of the principal amount of the notes outstanding for each day during
the first 185-day period on which such event of default is continuing beginning on, and including, the date on which such an event of
default first occurs and (ii) 0.50% per annum of the principal amount of the notes outstanding for each day during the 180-day period
on which such event of default is continuing beginning on, and including, the 186th day on which such event of default is continuing.

If we so elect, such additional
interest will be payable in the same manner and on the same dates as the stated interest payable on the notes. On the 366th day after
such event of default (if the event of default relating to the reporting obligations is not cured or waived prior to such 366th day),
the notes will be subject to acceleration as provided above (and, for the avoidance of doubt, such additional interest will cease to
accrue). The provisions of the indenture described in this and the preceding paragraph will not affect the rights of holders of notes
in the event of the occurrence of any other event of default. In the event we do not elect to pay the additional interest following an
event of default in accordance with this and the preceding paragraph or we elected to make such payment but do not pay the additional
interest when due, the notes will be immediately subject to acceleration as provided above. In no event shall additional interest payable
pursuant to the foregoing election accrue at a rate per year in excess of the applicable rate specified in the immediately preceding
paragraph, regardless of the number of events or circumstances giving rise to requirements to pay such additional interest. With regard
to any event of default relating to our failure to comply with our obligations as set forth under “—Information Rights”
below, no additional interest shall accrue after such event of default has been cured.

In order to elect to pay
the additional interest as the sole remedy during the first 365 days after the occurrence of an event of default relating to the failure
to comply with the reporting obligations in accordance with the immediately preceding two paragraphs, we must notify all holders of notes,