Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 36

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 36
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 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 from its provisions, including business combinations that are exempted by provision in the charter of the corporation.
Our charter provides that we elect not to be governed by the provisions of the Maryland Business Combination Act.

Maryland Control Share
Acquisition Act

The Maryland Control Share
Acquisition Act causes persons who acquire beneficial ownership of stock at levels of 10%, 33%, and more than 50% (control share acquisitions)
to lose the voting rights of such stock unless voting rights are restored by the stockholders at a meeting by vote of two-thirds of all
the votes entitled to be cast on the matter (excluding stock held by the acquiring stockholder or the corporation’s officers or
employee directors). The Maryland Control Share Acquisition Act affords a cash-out election for stockholders other than the acquiring
stockholder, at an appraised value (but not less than the highest price per share paid by the acquiring person in the control share acquisition),
payable by the corporation, if voting rights for more than 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