Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 21

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 21
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 indenture provides that, unless otherwise provided by the terms of the applicable series of debt
securities, upon compliance with certain conditions:

| · | we                                                                                          
 may omit to comply with the covenant described under the heading “Consolidation, Merger     
 and Sale of Assets” and certain other covenants set forth in the indenture, as well         
 as any additional covenants which may be set forth in the applicable prospectus supplement; 
 and                                                                                         |

| · | any                                                                                          
 omission to comply with those covenants will not constitute a Default or an Event of Default 
 with respect to the debt securities of that series (“covenant defeasance”).                  |

The conditions include:

| · | depositing                                                                                     
 with the trustee money and/or U.S. government obligations or, in the case of debt securities   
 denominated in a single currency other than U.S. Dollars, government obligations of            
 the government that issued or caused to be issued such currency, that, through the payment     
 of interest and principal in accordance with their terms, will provide money in an amount      
 sufficient in the opinion of a nationally recognized firm of independent public accountants    
 or investment bank to pay and discharge each installment of principal of, premium and interest 
 on and any mandatory sinking fund payments in respect of the debt securities of that series    
 on the stated maturity of those payments in accordance with the terms of the indenture and     
 those debt securities; and                                                                     |

| · | delivering                                                                                     
 to the trustee an opinion of counsel to the effect that the holders of the debt securities     
 of that series will not recognize income, gain or loss for U.S. federal income tax purposes    
 as a result of the deposit and related covenant defeasance and will be subject to U.S. federal 
 income tax on the same amounts and in the same manner and at the same times as would have      
 been the case if the deposit and related covenant defeasance had not occurred.                 |

No Personal Liability
of Directors, Officers, Employees or Securityholders

None of our past, present
or future directors, officers, employees or securityholders, as such, will have any liability for any of our obligations under the debt
securities or the indenture or for any claim based on, or in respect or by reason of, such obligations or their creation. By accepting
a debt security, each holder waives and releases all such liability. This waiver and release is part of the consideration for the issue
of the debt securities. However,