Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 211

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 211
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means that the lender should have other sources of collateral with which to cover its loan, and thus may not pursue a forced sale, even
if authorized to do so. Further, to the extent that the subject loan will have covenants tied to the value of its overall collateral
package, valuing the Pledged Shares according to the market price of our Class A common stock mitigates the risk related to even
a precipitous drop in such market price, as such a drop might not result in a significant reduction in the value of the lender’s
overall collateral package to the point of causing a default, in which case, all else being equal, the lender would not have a forced
sale right at all.

The Pledging Policy simultaneously
fulfills the objectives and strategy of the board of directors to further the alignment of stockholder interests by heavily weighting
the compensation of our executive officers and directors in company equity, while recognizing their legitimate need to access liquidity
from their earned equity if desired, providing them with a method to do so without having to sell their equity to access that liquidity,
thereby reducing their ownership and diluting their alignment with stockholder interests.

Anti-Hedging Policy

Our insider trading policy
expressly prohibits the company’s directors, officers and employees from engaging in any of the following hedging transactions
with respect to any company securities at any time: short sales (including short sales “against the box”); buying or selling
puts or calls; buying financial instruments designed to hedge or offset any decrease in the market value of company securities owned
by the individual directly or indirectly, including prepaid variable forward contracts, equity swaps, collars and exchange funds; and
frequent trading to take advantage of fluctuations in share price.

Clawback Policy

Our compensation committee
has adopted a policy on the possible recoupment, or “clawback,” of Incentive Fees from our Manager. The policy will be invoked
in the event that (a) the company is required to restate its financial statements due to material noncompliance with any financial
reporting requirement under U.S. federal securities laws (whether or not based on fraud or misconduct) and the board of directors or
the compensation committee has not determined that such restatement (i) is required or permitted under GAAP in connection with the
adoption or implementation of a new accounting standard, or (ii) was caused by the company’s decision to change its accounting
practice, as permitted by applicable law, and (