Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 233

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 233
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of directors in connection with the execution of the Merger Agreement. Each quarterly installment of the Base Management Fee will be payable
in cash, except as may otherwise be specified by written agreement of the company and the Manager with respect to payment of all or any
portion thereof in C-LTIP Units, calculated pursuant to the formula above.

Incentive Fee

We will pay our Manager an
incentive fee (the “Incentive Fee”) with respect to each calendar quarter (or part thereof that the Management Agreement is
in effect) in arrears.

The Incentive Fee will be
an amount, not less than zero, equal to the difference between (1) the product of (i) 20% and (ii) the difference between
(a) the company’s adjusted funds from operations (“AFFO”) for the previous 12-month period and (b) the product
of (A) the product of (x) the weighted average of the price per share of equity securities as derived from the Net Asset Value
and the issue price of equity securities issued in future offerings and transactions, multiplied by (y) the weighted average number
of all shares of our common stock outstanding on a fully-diluted basis (including any restricted stock units, any restricted shares of
our common stock, LTIP Units, and other shares of our common stock underlying awards granted under incentive plans and units in the Operating
Partnership) in the previous 12-month period multiplied by (B) 8%, and (2) the sum of any Incentive Fee paid to our Manager
with respect to the first three calendar quarters of such previous 12-month period; provided, however, that no Incentive Fee is payable
with respect to any calendar quarter unless AFFO is greater than zero for the four most recently completed calendar quarters. One half
of each quarterly installment of the Incentive Fee will be payable in C-LTIP Units, calculated pursuant to the formula above. The
remainder of the Incentive Fee will be payable in cash or in C-LTIP Units, at the election of our board of directors, in each case calculated
pursuant to the formula above.

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The following example illustrates
how we would calculate our quarterly Incentive Fee in accordance with the Management Agreement. Our actual results may differ materially
from the following example.

Assume the following:

| · | AFFO for the 12-month period