HANSEN DOUGLAS B 4

What Happened

• Douglas B. Hansen, a director of Redwood Trust, converted/exercised 20,729 deferred stock units into 20,729 shares of Redwood Trust common stock on 2026-05-26. The reported fair-market value of the shares on the conversion date was $5.28 per share, totaling $109,449. This was a conversion/distribution of deferred compensation units into stock, not an open-market purchase or sale of already-issued shares.

Key Details

• Transaction date: 2026-05-26 (Form 4 filed 2026-05-27).
• Transaction type/code: M — exercise/conversion of derivative (conversion of Deferred Stock Units to common stock).
• Shares acquired: 20,729 at $5.28 per share (value = $109,449).
• Derivative instrument disposition: 20,729 derivative units were settled/converted (reported at $0.00 for the derivative line, reflecting settlement rather than a cash sale).
• Shares owned after transaction: Not specified in the provided excerpt of the filing.
• Filing timeliness: No late filing indicated.

Context

• These were Deferred Stock Units being distributed or converted under the Executive Deferred Compensation Plan (per filing footnotes). Footnotes note the per-unit value is based on the fair market value on the transaction date, the units had an original grant-date fair value, a mandatory holding period applied, and deferred units have no expiration date. This conversion represents settlement of deferred compensation into common stock rather than a market buy or sale; it should be viewed as an administrative conversion of previously granted deferred units.