Company: RWT-PA
Filing Date: 2025-01-16
Form Type: 424B5
Source: 0001104659-25-004099
Chunk: 29

Company: REDWOOD TRUST INC
Filing Date: 2025-01-16
Form: 424B5
Chunk 29
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 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,
the trustee and the paying agent of such election prior to the beginning of such 365-day period. Upon our failure to timely give such
notice, the notes will be immediately subject to acceleration as provided above.

The holders of a majority
principal amount of the outstanding notes may waive all past defaults (except with respect to non-payment of principal or interest) and
rescind any such acceleration with respect to the notes and its consequences if (1) rescission would not conflict with any judgment
or decree of a court of competent jurisdiction and (2) all existing events of default (other than the non-payment of the principal
of and interest on the notes or the failure to deliver amounts due upon conversion that have become due solely by such declaration of
acceleration) have been cured or waived.

The trustee will be under
no obligation to exercise any of the rights or powers under the indenture at the request or direction of any of the holders unless such
holders have offered to the trustee indemnity and/or security satisfactory to it against any loss, liability or expense. Except to enforce
the right to receive payment of principal or interest when due, no holder may pursue any remedy with respect to the indenture or the
notes unless:

| (1) | such                                                                                   
 holder has previously given the trustee notice that an event of default is continuing; |

| (2) | holders                                                                                        
 of at least 25% principal amount of the outstanding notes have requested the trustee to pursue 
 the remedy;                                                                                    |

| (3) | such                                                                                        
 holders have offered the trustee security or indemnity satisfactory to it against any loss, 
 liability or expense;                                                                       |

| (4) | the                                                                                        
 trustee has not complied with such request within 60 days after the receipt of the request 
 and the offer of security or indemnity; and                                                |

| (5) | the                                                                                        
 holders of a majority principal amount of the outstanding notes have not given the trustee 
 a direction that, in the opinion of the trustee, is inconsistent with such request within  
 such 60 day period.                                                                        |

<div align='center'>S-17</div>

Subject to certain restrictions,
the holders of a majority principal amount of the outstanding notes are given the right to direct the time, method and place of conducting
any proceeding for any remedy available to the trustee or of exercising any