Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 24

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 24
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 of common stock or preferred stock and to classify or reclassify unissued shares of common or preferred stock and
thereafter to issue the classified or reclassified shares provides us with increased flexibility in structuring possible future
financings and acquisitions and in meeting other needs which might arise. These actions can be taken without stockholder approval,
unless stockholder approval is required by applicable law or the rules of any stock exchange or automated quotation system on which
our securities may be listed or traded. Although we have no present intention of doing so, we could issue a class or series of stock
that could delay, defer, or prevent a transaction or a change in control of Redwood Trust that might involve a premium price for
holders of common stock or otherwise be in their best interest. We have no shares of preferred stock presently outstanding.

<div align='center'>15

DESCRIPTION
OF PREFERRED STOCK</div>

Our charter authorizes our
board of directors to classify from time to time any unissued shares of stock in one or more classes or series of preferred stock and
to reclassify any previously classified but unissued preferred stock of any class or series in one or more classes or series. If we offer
preferred stock pursuant to this prospectus in the future, the applicable prospectus supplement will describe the terms of such preferred
stock, including the following, where applicable:

| · | the                                                                                     
 designation of the shares and the number of shares that constitute the class or series; |

| · | the                                                                                           
 dividend rate (or the method of calculating dividends), if any, on the shares of the class    
 or series and the priority as to payment of dividends with respect to other classes or series 
 of our shares of stock;                                                                       |

| · | whether                                                                                          
 dividends will be cumulative or non-cumulative and, if cumulative, the date from which dividends 
 on the preferred stock will accumulate;                                                          |

| · | the                                                                   
 dividend periods (or the method of calculating the dividend periods); |

| · | the                                           
 voting rights of the preferred stock, if any; |

| · | the                                                                                       
 liquidation preference and the priority as to payment of the liquidation preference with  
 respect to other classes or series of our stock and any other rights of the shares of the 
 class or series upon our liquidation or winding-up;                                       |

| · | the                                                             
 provision for a sinking fund, if any, for such preferred stock; |

| · | whether                                                                                  
 or not and on what terms the shares