Company: BHM
Filing Date: 2025-10-08
Form Type: S-11
Source: 0001104659-25-097905
Chunk: 204

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-10-08
Form: S-11
Chunk 204
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 sole purpose of serving as a hedging arrangement. In addition, within ten (10) days following each annual
meeting of the company’s stockholders, each pledgor must certify to the audit committee that its Pledged Shares comprised thirty
percent (30%) or less of the time-weighted value of the creditor’s collateral package, inclusive of the Pledged Shares.

The Pledging Policy’s
restrictions, structuring and certification obligations are intended to mitigate the risks from a forced sale due to a default under the
subject loan or as a result of a decline in the market price of our Class A common stock, should such market price be the valuation
parameter applicable to the lender’s collateral package. First, even if an event occurred that would enable a lender to exercise
forced sale rights, the fact that the Pledged Shares will be limited to thirty percent (30%) of the time-weighted collateral package 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