EXHIBIT 10.1


 


BEHRINGER HARVARD OPPORTUNITY REIT I, INC.


AMENDED AND RESTATED 2004 INCENTIVE AWARD PLAN


STOCK OPTION AGREEMENT


 


Behringer Harvard
Opportunity REIT I, Inc., a Maryland corporation (the “Company”), hereby
grants to the optionee named below (“Optionee”) an option (this “Option”) to
purchase the total number of shares shown below of Common Stock of the Company
(“Shares”) at the exercise price per share set forth below (the “Exercise Price”),
subject to all of the terms and conditions of this Stock Option Agreement and
the Behringer Harvard Opportunity REIT I, Inc. Amended and Restated 2004
Incentive Award Plan (the “Plan”). 
Unless otherwise defined herein, capitalized terms used herein shall
have the meanings ascribed to them in the Plan. 
The terms and conditions of the Plan are incorporated herein by
reference.


 


 


Shares Subject to Option:


 


Exercise Price Per
Share:*


 


Term of
Option:*    TEN (10) YEARS


 


Vesting:


 


Shares subject to
issuance under this Option shall be eligible for exercise according to the
vesting schedule described in Section 10 of this Stock Option
Agreement.


 


IN
WITNESS WHEREOF, this Stock Option Agreement has been
executed by the Company by a duly authorized officer as of the date specified
hereon.


 


BEHRINGER HARVARD
OPPORTUNITY REIT I, INC.


 


	
  By:

  	
   

  	
   

  



 


Grant
Date:


 


Type
of Stock Option Intended:


 


o                    Incentive
Stock Option (ISO)


 


o                    Non-Qualified
Stock Option (NQSO)


 


Optionee hereby
acknowledges receipt of a copy of the Plan, represents that Optionee has read
and understands the terms and provisions of the Plan, and accepts this Option
subject to all the terms and conditions of the Plan and this Stock Option
Agreement.  Optionee acknowledges that
there may be adverse tax consequences upon exercise of this Option or
disposition of Shares purchased by exercise of this Option, and that Optionee
should consult a tax adviser prior to such exercise or disposition.


 


 


	
   

  	
   

  
	
  [Name of
  Optionee]

  



 






*If this Option is
intended to be an ISO, then the Exercise Price Per Share must be at least equal
to the Fair Market Value per share (or 110% of such Fair Market Value if the
Optionee owns 10% or more of the Company) and the Term of Option may not exceed
10 years (5 years in the case of an Optionee who owns more than 10% of the
Company).


 

















 


1.             Exercise Period of Option.  Subject to the terms and conditions of this
Stock Option Agreement and the Plan, and unless otherwise modified in writing
signed by the Company and Optionee, this Option may be exercised with respect
to all of the Shares subject to this Option, but only according to the vesting schedule described
in Section 10 below, prior to the date which occurs on the last day of the
Term of Option set forth on the face hereof following the Grant Date
(hereinafter “Expiration Date”).


 


2.             Restrictions on Exercise.  This Option may not be exercised, unless such
exercise is in compliance with the Securities Act of 1933 and all applicable
state securities laws, as they are in effect on the date of exercise, and the
requirements of any stock exchange or national market system on which the
Company’s Shares may be listed at the time of exercise.  Optionee understands that the Company is
under no obligation to register, qualify or list the Shares subject to this
Option with the Securities and Exchange Commission (“SEC”), any state
securities commission or any stock exchange to effect such compliance.  Also, this Option may not be exercised within
the first six (6) months of the Grant Date noted hereon (except in
situations otherwise allowed by this Option and Section 7(e)(8)(B) of
the Fair Labor Standards Act) if the Optionee is currently, at the time of
exercise, or has been at any time within the two (2) year period
immediately preceding exercise, a non-exempt (as defined in the Fair Labor
Standards Act) employee of the Company.


 


3.  Termination of Option.


 


(a)           If
the Optionee is an employee of the Company, except as provided below in this
Section, this Option shall be immediately forfeited and may not be exercised
after the date which is ninety (90) days after Optionee ceases to perform
services for the Company, or any Parent or Subsidiary.  Optionee shall be considered to perform
services for the Company, or any Parent or Subsidiary, for all purposes under
this Section and Section 10 hereof, if Optionee is an officer or
full-time employee of the Company, or any Parent or Subsidiary, or if the Board
determines that Optionee is rendering substantial services as a part-time
employee, consultant, contractor or advisor to the Company, or any Parent or
Subsidiary.  The Board shall have
discretion to determine whether Optionee has ceased to perform services for the
Company, or any Parent or Subsidiary, and may determine that a material
reduction or decrease in responsibilities is a cessation of the performance of
services.  The effective date on which
services are determined by the Board to have ceased is the “Termination Date”.


 


(i)            Termination
for Cause.  If Optionee ceases to
perform services for the Company, or any Parent or Subsidiary, for Cause, this
Option shall immediately be forfeited, along with any and all rights or
subsequent rights attached thereto, as of the Termination Date, but in no event
later than the Expiration Date.  For this
purpose, “Cause” shall be defined as set forth in the written employment agreement
between the Optionee and the Company, or, if no such written agreement exists
or if “Cause” is not defined in such written employment agreement, “Cause”
shall be defined as set forth in the Plan, or, if not defined in the Plan, “Cause”
shall mean actions or omissions harmful to the Company as determined by the
Board in its sole and absolute discretion.


 


(ii)           Death.
 If Optionee ceases to perform
services for the Company, or any Parent or Subsidiary, as a result of the death
of Optionee, this Option, to the extent (and only to the extent) that it would
have been exercisable by Optionee on the Termination Date, may be exercised by
Optionee’s legal representative within one (1) year after the Termination
Date, but in no event later than the Expiration Date.


 


(iii)          Disability.  If
Optionee ceases to perform services for the Company, or any Parent or
Subsidiary, as a result of the disability (within the meaning of Code
§22(e)(3)) of Optionee (as determined by the Board in its sole discretion),
this Option, to the extent (and only to the extent) that it would have been
exercisable by Optionee on the Termination Date, may be exercised by Optionee
within one (1) year after the Termination Date, but in no event later than
the Expiration Date.


 


(iv)          No Right to Employment or Other Relationship.  Nothing in the Plan or this Stock Option
Agreement shall confer on Optionee any right to continue in the employ of, or
other relationship with, the Company, or any Parent or Subsidiary, or limit in
any way the right of the Company, or any Parent or Subsidiary, to terminate
Optionee’s employment or other relationship at any time, with or without cause.


 


(b)           If
the Optionee is an Outside Director (as defined in the Plan), except as
provided by the Board or a committee thereof at the time of grant or
thereafter, in the event an Outside Director’s service to the Company
terminates before the Options have vested, any Option granted to such Outside
Director that has not vested shall be cancelled and the Outside Director shall
have no further right or interest in such forfeited Option.  Except as provided by the Board or a
committee thereof at the time of grant or thereafter, in the event an Outside
Director’s service to the Company terminates for any reason, any vested Option
shall be cancelled upon the first to occur of (i) the first anniversary of
the date that shares of the Company’s Common Stock are first listed on a
national stock exchange or a national market system, and (ii) the tenth
anniversary of the date of grant.


 


4.             Manner of Exercise.


 


(a)           Exercise Agreement. 
This Option shall be exercisable by delivery to the Company of an
executed Exercise and Stockholder Agreement (“Exercise Agreement”) in such form
as may be approved or accepted by the Company, which shall set forth Optionee’s
election to exercise this Option with respect to some or all of the Shares
subject to this Option, the number of Shares subject to this Option being
purchased, and any restrictions imposed on the Shares subject to this Option
(including, without limitation, vesting or performance-based restrictions,
rights of the Company to re-purchase Shares acquired pursuant to the exercise
of an Option, voting restrictions, investment intent restrictions, restrictions
on transfer, “first refusal” rights of the Company to purchase Shares acquired
pursuant to the exercise of an Option prior to their sale to any other person, “drag
along” rights requiring the sale of shares to a third party purchaser in
certain circumstances, “lock up” type restrictions in the case of an initial
public offering of the Company’s stock, restrictions or limitations that would
be applied to stockholders under any applicable restriction agreement among the
stockholders, and restrictions under applicable federal securities laws, under
the requirements of any stock exchange or market upon which such Shares are
then listed and/or traded, and/or under any blue sky or state securities laws
applicable to such Shares).  The Company
may modify the required Exercise Agreement at any time for any reason
consistent with the Plan.  If the
Optionee receives a hardship distribution from a Code §401(k) plan of the
Company, or any Parent or Subsidiary, this Option may not be exercised during
the six (6) month period following the hardship withdrawal (unless the
Company determines that such exercise would not jeopardize the
tax-qualification of such Code §401(k) plan).


 


(b)           Exercise Price.  Such
Exercise Agreement shall be accompanied by full payment of the Exercise Price
for the Shares being purchased.  Payment
for the Shares being purchased may be made in U.S. dollars in cash (by check),
or by delivery to the Company of a number of Shares which have been owned and
completely paid for by the holder for at least six (6) months prior to the
date of exercise (i.e., “mature shares” for
accounting purposes) having an aggregate fair market value equal to the amount
to be tendered, or a combination thereof. 
In addition, this Option may be exercised through a brokerage
transaction following registration of the Shares under Section 12 of the
Securities Exchange Act of 1934 as permitted under the provisions of Regulation
T promulgated by the Federal Reserve Board applicable to cashless exercises.


 


(c)           Withholding Taxes. 
Prior to the issuance of Shares upon exercise of this Option, Optionee
must pay, or make adequate provision for, any applicable federal or state
withholding obligations of the Company. 
Optionee may provide for payment of withholding taxes upon exercise of
the Option by requesting that the Company retain Shares with a Fair Market
Value equal to the minimum amount of taxes required to be withheld.  In such case, the Company shall issue the net
number of Shares to Optionee by deducting the Shares retained from the Shares
exercised.


 


(d)           Issuance of Shares.  Provided that such Exercise Agreement and
payment are in form and substance satisfactory to counsel for the Company, the
Company shall cause the Shares purchased to be issued in the name of Optionee
or Optionee’s legal representative. 
Optionee shall not be considered a Stockholder until such time as Shares
have been issued as noted on the stockholder register of the Company.


 


5.             Notice of Disqualifying Disposition of ISO Shares.  If this Option is an ISO, and if Optionee
sells or otherwise disposes of any of the Shares acquired pursuant to this ISO
on or before the later of (a) the date two (2) years after the Grant
Date, or (b) the date one (1) year after exercise of the ISO, with
respect to the Shares to be sold or disposed, Optionee shall and hereby agrees
to immediately notify the Company in writing of such sale or disposition.  Optionee acknowledges and agrees that
Optionee may be subject to income tax withholding by the Company on the
compensation income recognized by Optionee from any such early disposition by
payment in cash or out of the current wages or earnings payable to Optionee,
and Optionee agrees to remit same to Company upon request.  Optionee also hereby agrees that Optionee
shall include the compensation from such early disposition in the Optionee’s
gross income for federal tax purposes.


 


6.             Nontransferability of Option.  This Option may not be transferred in any
manner, other than by will or by the laws of descent and distribution.  In addition, except as expressly permitted
under the Plan for NQSOs, during Optionee’s lifetime, this Option may only be
exercised Optionee.  The terms of this
Option shall be binding upon the executor, administrators, successors and
assigns of Optionee.  However, if this
Option is a NQSO, it may be transferred to the extent allowed by the Plan.


 


7.             Tax Consequences. 
OPTIONEE UNDERSTANDS THAT THE GRANT AND EXERCISE OF THIS OPTION, AND THE
SALE OF SHARES OBTAINED THROUGH THE EXERCISE OF THIS OPTION, MAY HAVE TAX
IMPLICATIONS THAT COULD RESULT IN ADVERSE TAX CONSEQUENCES TO OPTIONEE.  OPTIONEE REPRESENTS THAT OPTIONEE HAS
CONSULTED WITH, OR WILL CONSULT WITH, HIS OR HER TAX ADVISOR; OPTIONEE FURTHER
ACKNOWLEDGES THAT OPTIONEE IS NOT RELYING ON THE COMPANY FOR ANY TAX, FINANCIAL
OR LEGAL ADVICE; AND IT IS SPECIFICALLY UNDERSTOOD BY THE OPTIONEE THAT NO
REPRESENTATIONS OR ASSURANCES ARE MADE AS TO THE QUALIFICATION OF THIS OPTION
AS AN ISO OR AS TO ANY PARTICULAR TAX TREATMENT WITH RESPECT TO THE OPTION. OPTIONEE
ALSO ACKNOWLEDGES THAT EXERCISE OF AN ISO OPTION MUST GENERALLY OCCUR WITHIN
NINETY (90) DAYS OF TERMINATION OF EMPLOYMENT, REGARDLESS OF ANY LONGER PERIOD
ALLOWED BY THIS STOCK OPTION AGREEMENT.


 


8.             Interpretation.  Any dispute regarding the interpretation of
this Stock Option Agreement shall be submitted to the Board or the Committee,
which shall review such dispute in accordance with the Plan.  The resolution of such a dispute by the Board
or Committee shall be final and binding on the Company and Optionee.


 


9.             Entire Agreement and Other Matters.  The Plan and the Exercise Agreement are
incorporated herein by this reference. 
Optionee acknowledges and agrees that the granting of this Option
constitutes a full accord, satisfaction and release of all obligations or commitments
made to Optionee by the Company or any of its officers, directors, stockholders
or affiliates with respect to the issuance of any securities, or rights to
acquire securities, of the Company or any of its affiliates.  This Stock Option Agreement, the Plan and the
Exercise Agreement constitute the entire agreement of the parties hereto, and
supersede all prior understandings and agreements with respect to the subject
matter hereof.  This Stock Option
Agreement and the underlying Option are void ab initio
unless this Certificate has been executed by the Optionee and the Optionee has
agreed to all terms and provisions hereof.


 


10.          Vesting and Exercise of Shares.  Subject to the terms of the Plan, this
Stock Option Agreement and the Exercise Agreement, the Optionee shall be
entitled to purchase, pursuant to the exercise of this Option, the percentage
of the Shares subject to this Option shown below based upon the time elapsed from
the Grant Date of this Option (as noted hereon) at the time of exercise:


 




	
  Vesting Schedule:

  	
   

  
	
  Percentage Vested:

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  






 


If the above calculation
of Shares available for purchase through exercise of this Option would result
in a fraction, any fraction will be rounded to zero.  Employees of the Company must have engaged in
Continuous Service to the Company throughout the respective vesting period.  For purposes of this Stock Option Agreement, “Continuous
Service” means a period of continuous performance of services by Optionee for
the Company, a Parent, or a Subsidiary, as determined by the Board in its sole
and absolute discretion.


 

















 


11.          Special California Provisions.  Anything contained in this Stock Option Agreement
or the Plan to the contrary notwithstanding, in order for the grant or exercise
of this Option to be exempt from the securities laws of the State of
California, the following provisions apply in the event that the Optionee is a
resident of State of California: (i) the total number of shares issuable
upon exercise of all outstanding Stock Incentives under the Plan plus the total
number of shares issuable under any
other stock option, stock bonus or similar plan of the Company shall not exceed
thirty percent (30%) of the then outstanding shares of capital stock of the
Company, measured on an as converted to common basis, unless a percentage
higher than thirty percent (30%) is approved by at least two-thirds of the
Company’s outstanding capital stock; (ii) the Company hereby represents
that the Exercise Price of this Option is at least 85% of the Fair Market Value
of a share of Common Stock (110% of Fair Market Value of a share of Common
Stock if the Participant owns more than 10% of the combined voting power of all
classes of stock of the Company); (iii) Optionee shall receive the annual
financial statements of the Company in accordance with Section 260.140.46
of Title 10 of the California Code of Regulations; and (iv) Optionee shall
be delivered a copy of the Plan with this Stock Option Agreement.