Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 89

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 89
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 with the required certification, but that qualify for a reduced rate under
an applicable income tax treaty, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund
with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable
income tax treaty.

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Sale or Other Taxable Disposition

A Non-U.S. Holder will
not be subject to U.S. federal income tax on any gain realized upon the sale, exchange, redemption, retirement or other taxable
disposition of a debt security (such amount excludes any amount allocable to accrued and unpaid interest, which generally will be treated
as interest and may be subject to the rules discussed above in “Material U.S. Federal Income Tax Considerations—Federal
Income Tax Considerations for Holders of Our Capital Stock and Debt Securities—Taxation of Holders of Our Debt Securities—Non-U.S. Holders—Payments
of Interest”) unless:

| · | the                                                                                         
 gain is effectively connected with the Non-U.S. Holder’s conduct of a trade or              
 business within the United States (and, if required by an applicable income tax treaty, the 
 Non-U.S. Holder maintains a permanent establishment in the United States to which such      
 gain is attributable); or                                                                   |

| · | the                                                                                        
 Non-U.S. Holder is a nonresident alien individual present in the United States for 183     
 days or more during the taxable year of the disposition and certain other requirements are 
 met.                                                                                       |

Gain described in the first
bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder
that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income
tax treaty) on such effectively connected gain, as adjusted for certain items.

A Non-U.S. Holder described
in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an
applicable income tax treaty) on gain realized upon the sale or other taxable disposition of a debt security, which may be offset by
U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the United States),
provided the Non-U.S. Holder has timely filed U.S