Company: RWT-PA
Filing Date: 2025-03-03
Form Type: S-3ASR
Source: 0001104659-25-019828
Chunk: 35

Company: REDWOOD TRUST INC
Filing Date: 2025-03-03
Form: S-3ASR
Chunk 35
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 any period in which the number of record stockholders
is 200 or less, of the number or value of our outstanding shares will receive a questionnaire from us by January 30 requesting information
as to how the shares are held. In addition, our charter requires that such stockholders must provide written notice to us by 30 days
after January 1 stating the name and address of the record stockholder, the number of shares beneficially owned and a description
of how the shares are held. In practice, we have generally permitted our stockholders to comply with the foregoing charter requirement
by responding to our annual REIT questionnaire. Further, each stockholder upon demand is required to disclose to us in writing such information
with respect to the direct and constructive ownership of shares and warrants as our board of directors deems reasonably necessary to
comply with the REIT provisions of the Code, to comply with the requirements of any taxing authority or governmental agency or to determine
any such compliance.

Our board of directors may
increase or decrease the 9.8% ownership limit. In addition, to the extent consistent with the REIT provisions of the Code, our board
of directors may, pursuant to our charter, waive the 9.8% ownership limit for a purchaser of our stock. As a condition to such waiver
the intended transferee must give written notice to the board of directors of the proposed transfer no later than the fifteenth day prior
to any transfer which, if consummated, would result in the intended transferee owning shares in excess of the ownership limit. Our board
of directors may also take such other action as it deems necessary or advisable to protect our status as a REIT. Pursuant to our charter,
our board of directors has, from time to time, waived the ownership limit for certain of our stockholders.

The provisions described
above may inhibit market activity and the resulting opportunity for the holders of our capital stock and warrants to receive a premium
for their shares or warrants that might otherwise exist in the absence of such provisions. Such provisions also may make us an unsuitable
investment vehicle for any person seeking to obtain ownership of more than 9.8% of the outstanding shares of our capital stock.

<div align='center'>24

CERTAIN
PROVISIONS OF MARYLAND LAW AND OF OUR CHARTER AND BYLAWS</div>

We have summarized certain
terms and provisions of the Maryland General Corporation Law and our charter and bylaws. This summary is not complete