Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 81

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 81
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ply with the REIT provisions of the Code, to comply with the requirements of any taxing authority or governmental agency or to determine
any such compliance.

Our board of directors may
increase or decrease the 9.8% ownership limit. In addition, to the extent consistent with the REIT provisions of the Code, our board
of directors may, pursuant to our charter, waive the 9.8% ownership limit for a purchaser of our stock. As a condition to such waiver
the intended transferee must give written notice to the board of directors of the proposed transfer no later than the fifteenth day prior
to any transfer which, if consummated, would result in the intended transferee owning shares in excess of the ownership limit. Our board
of directors may also take such other action as it deems necessary or advisable to protect our status as a REIT. Pursuant to our charter,
our board of directors has, from time to time, waived the ownership limit for certain of our stockholders.

The provisions described
above may inhibit market activity and the resulting opportunity for the holders of our capital stock and warrants to receive a premium
for their shares or warrants that might otherwise exist in the absence of such provisions. Such provisions also may make us an unsuitable
investment vehicle for any person seeking to obtain ownership of more than 9.8% of the outstanding shares of our capital stock.

<div align='center'>22

CERTAIN
PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</div>

We have summarized certain
terms and provisions of the Maryland General Corporation Law and our charter and bylaws. This summary is not complete and is qualified
by the provisions of our charter and bylaws, and the Maryland General Corporation Law. See “Where You Can Find More Information.”

For restrictions on ownership
and transfer of our capital stock contained in our charter, see “Restrictions on Ownership and Transfer and Repurchase of Shares.”

Maryland Business Combination Act

Under the Maryland Business
Combination Act, “business combinations” between a Maryland corporation and an interested stockholder or an affiliate of
an interested stockholder, as such terms are defined in the Act, are prohibited for five years after the most recent date on which the
interested stockholder becomes an interested stockholder. These business combinations include a merger, consolidation, share exchange,
or, in circumstances specified in the statute, an asset transfer or issuance or reclassification of equity securities. The statute permits
various exemptions