Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 34

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 34
---
 a purchase price equal to the lesser
of (a) the price per share or per warrant, as the case may be, in the transaction that created such excess securities (or, in the case
of a devise or gift, the Market Price at the time of such devise or gift), reduced by the amount of any distributions received in violation
of the charter that have not been repaid to us, and (b) the Market Price on the date we elect to purchase the excess securities, reduced
by the amount of any distributions received in violation of the charter that have not been repaid to us.

Upon a purported transfer
of excess securities, the purported transferee shall cease to be entitled to distributions, voting rights, and other benefits with respect
to the shares of capital stock or warrants except the right to payment of the purchase price for the shares of capital stock or warrants
on the retransfer of securities as provided above. Any dividend or distribution paid to a purported transferee on excess securities prior
to our discovery that shares of capital stock have been transferred in violation of our charter shall be repaid to us upon demand. If
these transfer restrictions are determined to be void, invalid, or unenforceable by a court of competent jurisdiction, then the purported
transferee of any excess securities may be deemed, at our option, to have acted as an agent on our behalf in acquiring the excess securities
and to hold the excess securities on our behalf.

<div align='center'>23</div>

All certificates representing
shares of capital stock and warrants will bear a legend referring to the restrictions described above.

Any person who acquires shares
or warrants in violation of our charter, or any person who is a purported transferee such that excess securities result, must immediately
give written notice or, in the event of a proposed or attempted transfer that would be void as set forth above, give at least 15 days
prior written notice to us of such event and shall provide us such other information as we may request in order to determine the effect,
if any, of the transfer on our status as a REIT. In addition, as required under the REIT provisions of the Code, every record owner of
more than 5.0%, during any period in which the number of record stockholders is 2,000, or 1.0%, during any period in which the number
of record stockholders is greater than 200 but less than 2,000, or 1/2%, during