Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 82

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 82
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 50% of the outstanding stock are approved for the acquiring person. Under
certain circumstances, the corporation may redeem shares acquired in a control share acquisition if voting rights for such shares have
not been approved. The statute does not apply (a) to shares acquired in a merger, consolidation, or share exchange if the corporation
is a party to the transaction or (b) to acquisitions approved or exempted by the charter or bylaws of the corporation. A corporation’s
board of directors has an “opt-out” power, exercisable through amendment of the corporation’s bylaws (which could be
changed by the stockholders), to exempt in advance any control share acquisition from the Maryland Control Share Acquisition Act. Our
bylaws contain a provision exempting from the Maryland Control Share Acquisition Act acquisitions by certain persons of shares of our
common stock in accordance with waivers from the ownership limit in our charter granted to such persons by our board of directors.

The Maryland Control Share
Acquisition Act could have the effect of discouraging offers to acquire us and of increasing the difficulty of consummating any such
offers.

Board of Directors, Vacancies, and Removal of Directors

All directors are elected
annually to serve until the next annual meeting of stockholders and until their respective successors are duly elected and qualify.

Pursuant to our election
to be subject to certain provisions of the Maryland General Corporation Law, any vacancy on our board of directors may be filled only
by the affirmative vote of a majority of the remaining directors in office, even if the remaining directors do not constitute a quorum,
and any director elected to fill a vacancy shall serve for the remainder of the full term of the directorship in which such vacancy occurred
and until a successor is elected and qualifies. A director may be removed with or without cause by the affirmative vote of a majority
of all the votes entitled to be cast generally for the election of directors.

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Charter Amendments and Extraordinary Corporate Actions

Under Maryland law, a Maryland
corporation generally cannot dissolve, amend its charter, merge, sell all or substantially all of its assets, engage in a share exchange,
convert or engage in similar transactions outside the ordinary course of business, unless approved by the affirmative vote of stockholders
entitled to cast at least two-thirds of the votes entitled to be cast on the matter. However, a Maryland corporation may provide in its
charter for approval of these matters by a lesser percentage, but not less