Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 83

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 83
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C”, will constitute a USRPI unless certain exceptions
apply. A domestic corporation will constitute a USRPHC if 50% or more of the corporation’s assets on any of certain testing dates
during a prescribed testing period consist of interests in real property located within the United States, excluding for this purpose,
interests in real property solely in a capacity as creditor. We do not believe we are currently, and do not anticipate becoming, a USRPHC.
However, because the determination of whether we are a USRPHC depends on the fair market value of our USRPIs relative to the fair market
value of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC
or will not become one in the future.

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Even if we were a USRPHC,
our capital stock will not constitute a USRPI so long as we are a “domestically controlled qualified investment entity.”
A “domestically controlled qualified investment entity” includes a REIT in which at all times during a five-year testing
period less than 50% in value of its stock is held directly or indirectly by non-United States persons, subject to certain ownership
rules. For purposes of determining whether a REIT is a “domestically controlled qualified investment entity,” ownership by
non-United States persons generally will be determined by looking through certain pass-through entities and U.S. corporations, including
non-public REITs and certain non-public foreign-controlled domestic C corporations, and treating a public qualified investment entity
as a non-United States person unless such entity is a “domestically controlled qualified investment entity.” Notwithstanding
the foregoing ownership rules, a person who at all applicable times holds less than 5% of a class of a REIT’s stock that is “regularly
traded” on an established securities market in the United States is treated as a United States person unless the REIT has actual
knowledge that such person is not a United States person or is a foreign-controlled person. Although we believe that we are a “domestically
controlled qualified investment entity,” because our common stock is (and, we anticipate, will continue to be) publicly traded,
we cannot make any assurance that we will remain a “domestically controlled qualified investment entity.”

Even if we were a USRPHC
and we do not qualify as a “domestically