Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 79

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 79
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 securities) at a price not to exceed the price paid by
the purported transferee (or, if no consideration was paid by the purported transferee, the Market Price (as defined in our charter)
of the excess securities on the date of the purported transfer), at which point the excess securities will automatically be exchanged
for the stock or warrants, as the case may be, to which the excess securities are attributable. If a purported transferee receives a
higher price for designating an ultimate transferee, such purported transferee shall pay, or cause the ultimate transferee to pay, such
excess to us. In addition, such excess securities held in trust are subject to purchase by us at a purchase price equal to the lesser
of (a) the price per share or per warrant, as the case may be, in the transaction that created such excess securities (or, in the
case of a devise or gift, the Market Price at the time of such devise or gift), reduced by the amount of any distributions received in
violation of the charter that have not been repaid to us, and (b) the Market Price on the date we elect to purchase the excess securities,
reduced by the amount of any distributions received in violation of the charter that have not been repaid to us.

Upon a purported transfer
of excess securities, the purported transferee shall cease to be entitled to distributions, voting rights, and other benefits with respect
to the shares of capital stock or warrants except the right to payment of the purchase price for the shares of capital stock or warrants
on the retransfer of securities as provided above. Any dividend or distribution paid to a purported transferee on excess securities prior
to our discovery that shares of capital stock have been transferred in violation of our charter shall be repaid to us upon demand. If
these transfer restrictions are determined to be void, invalid, or unenforceable by a court of competent jurisdiction, then the purported
transferee of any excess securities may be deemed, at our option, to have acted as an agent on our behalf in acquiring the excess securities
and to hold the excess securities on our behalf.

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All certificates representing
shares of capital stock and warrants will bear a legend referring to the restrictions described above.

Any person who acquires shares
or warrants in violation of our charter, or any person who is a purported transferee such that excess securities result, must immediately
give written notice or, in the event of