Exhibit 10.16

BILL BARRETT CORPORATION        STOCK OPTION AGREEMENT  (2008 Stock Option PlanIncentive Stock Options)

THIS STOCK OPTION AGREEMENT (the "Agreement") is made and entered into as of the "Grant Date" listed on Exhibit 1 (the "Date of
Grant") by and between Bill Barrett Corporation, a Delaware corporation (the "Company"), and the person listed as "Granted To" on Exhibit 1 (the "Optionee").

WITNESSETH:

WHEREAS, effective as of Date of Grant, the Optionee received a stock option to purchase shares of the Company's Common Stock pursuant
to the Company's 2008 Stock Incentive Plan (as amended, restated or otherwise modified from time to time, the "2004 Plan") in order to provide the Optionee with an opportunity for investment in the
Company and additional incentive to pursue the success of the Company, and this option is to be for the number of shares, at the price per share and on the terms set forth in this Agreement;

WHEREAS,
pursuant to the 2008 Plan the Company may issue options and other equity interests covering up to 3,000,000 shares of Common Stock;

WHEREAS,
the Company intends that the stock option granted pursuant to this Agreement qualify as an incentive stock option (an "Incentive Option") to the full extent permitted pursuant
to Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"), and that to the extent the stock option does not qualify as an Incentive Stock Option, it shall be considered a
non-qualified stock option (a "Non-Qualified Option"); and

WHEREAS,
the Optionee desires to receive an option on the terms and conditions set forth in this Agreement.

NOW,
THEREFORE, the parties agree as follows:

1.Grant Of Option.    The Company hereby grants to the Optionee, as a matter of
separate agreement and not in lieu of salary or any other compensation for services, the right and option (the "Option") to purchase all or any part of an aggregate of the "Number of Shares" listed on
Exhibit 1 of the authorized and unissued $.001 par value common stock of the Company (the "Option Shares") pursuant to the terms and conditions set forth in this Agreement.

2.Option Price.    At any time when shares are to be purchased pursuant to the
Option, the purchase price for each Option Share shall be the "Exercise Price Per Share" listed on Exhibit 1 (the "Option Price").

3.Exercise Period.



---





Date

Time Vested Portion Of OptionFirst Anniversary of Date of Grant


25
%Second Anniversary of Date of Grant


50
%Third Anniversary of Date of Grant


75
%Fourth Anniversary of Date of Grant


100
%


Notwithstanding
the foregoing, the Option shall become fully Time Vested upon a Change In Control (as defined in the Plan) or immediately prior thereto to the extent set forth in the
Plan if but only if the Optionee is employed by the Company or any of its subsidiaries immediately prior to such Change In Control.



4.Exercise Of Option.



2

---





5.Payment For Option Shares.    If payment for the Option Price is made other than by
a method described in Sections 5(a), 5(b) or 5(c), the Option Price shall be paid in cash, certified funds, or Optionee's check. Payment shall be considered made when the Treasurer of the
Company receives delivery of the
payment at the Company's address, provided that a payment made by check is honored when first presented to the Optionee's bank. Payment for the exercise of an Option may be made pursuant to the
following methods:



3

---





6.Withholding Taxes.    The Company may take such steps as it deems necessary or
appropriate for the withholding of any taxes which the Company is required by any law or regulation or any governmental authority, whether federal, state or local, domestic or foreign, to withhold in
connection with the Option including, but not limited to, the withholding of all or any portion of any payment owed by the Company to the Optionee or the withholding of issuance of Option Shares to be
issued upon the exercise of the Option.

7.Securities and Tax Laws Requirements.



4

---





8.Transferability Of Option.    No Option shall be transferable by the Optionee
otherwise than by will or by the laws of descent and distribution or, in the case of a Non-Qualified Option, pursuant to a domestic relations order (within the meaning of
Rule 12a-12 promulgated under the Exchange Act), and Options shall be exercisable during the lifetime of an Optionee only by the Optionee or the Optionee's guardian or legal
representative. Notwithstanding the foregoing, with advance written consent of the Company, Non-Qualified Options may be transferred to Permitted Transferees (as defined below) of the
Optionee, and for purposes of this Agreement, a Permitted Transferee of an Optionee shall be deemed to be the Optionee. The terms of an Option shall be final, binding and conclusive upon the
beneficiaries, executors, administrators, heirs and successors of the Optionee. A "Permitted Transferee" means (i) the spouse of the Optionee, (ii) a trust, or family partnership, the
sole beneficiary of which is the Optionee, the spouse of or, any person related by blood or adoption to, the Optionee; provided, that any such transfers to a Permitted Transferee do not conflict with
or constitute a violation of state or federal securities laws.

9.Adjustment By Stock Split, Stock Dividend, Etc.In the event that each of the
outstanding shares of Common Stock (other than shares held by dissenting stockholders which are not changed or exchanged) of the Company should be changed into, or exchanged for, a different number or
kind of shares of stock or other securities of the Company, or if further changes or exchanges of any stock or other securities into which the Common Stock shall have been changed, or for which it
shall have been exchanged, shall be made (whether by reason of merger, consolidation, reorganization, recapitalization, stock dividends, reclassification, split-up, combination of shares
or otherwise), then the Option Shares shall be subject to adjustment as provided in the Plan.

10.Change in Control.    In the event of a Change in Control (as defined in the
Plan), the Option and the Option Shares shall be governed by the provisions of Section 13 of the Plan.

11.Common Stock To Be Received Upon Exercise.    Optionee understands that the
Company is under no obligation to register the issuance of the Option Shares or the resale of the Option Shares under the Securities Act of 1933, as amended (the "Act"), and that in the absence of any
such registration, the Option Shares cannot be sold unless they are sold pursuant to an exemption from registration under the Act. The Company is under no obligation to comply, or to assist the
Optionee in complying, with any exemption from such registration requirement, including supplying the Optionee with any information necessary to permit routine sales of the Option Shares under
Rule 144 of the Securities and Exchange Commission. Optionee also understands that with respect to Rule 144, routine sales of securities made in reliance upon such Rule can be made only
in limited amounts in accordance with the terms and conditions of the Rule, and that in cases in which the Rule is inapplicable, compliance with either Regulation A or another disclosure
exemption under the Act will be required. Thus, the Option Shares will have to be held indefinitely in the absence of registration under the Act or an exemption from registration.

Furthermore,
the Optionee fully understands that issuance of the Option Shares may not be registered under the Act and that if their issuance is not registered, they will be issued in
reliance upon an exemption which is available only if Optionee acquires such shares for investment and not with a view to distribution. Optionee is familiar with the phrase "acquired for investment
and not with a view to
distribution" as it relates to the Act and the special meaning given to such term in various releases of the Securities And Exchange Commission.

12.Privilege Of Ownership.    Optionee shall not have any of the rights of a
stockholder with respect to the shares covered by the Option except to the extent that one or more certificates for such shares shall be delivered to him upon exercise of the Option.

5

---



13.Relationship To Employment Or Position.    Nothing contained in this Agreement
(i) shall confer upon the Optionee any right with respect to continuance of Optionee's employment by, or position or affiliation with, or relationship to, the Company, or (ii) shall
interfere in any way with the right of the Company at any time to terminate the Optionee's employment by, position or affiliation with, or relationship to, the Company.

14.Notices.    All notices, requests, demands, directions and other communications
("Notices") concerning this Agreement shall be in writing and shall be mailed or delivered personally or sent by telecopier or facsimile to the applicable party at the address of such party set forth
below in this Section 14. When mailed, each such Notice shall be sent by first class, certified mail, return receipt requested, enclosed in a postage prepaid wrapper, and shall be effective on
the fifth business day after it has been deposited in the mail. When delivered personally, each such Notice shall be effective when delivered to the address for the respective party set forth in this
Section 14, provided that it is delivered on a business day and further provided that it is delivered prior to 2:00 p.m., local time of the party to whom the notice is being delivered,
on that business day; otherwise, each such Notice shall be effective on the first business day occurring after the Notice is delivered. When sent by telecopier or facsimile, each such Notice shall be
effective on the day on which it is sent provided that it is sent on a business day and further provided that it is sent prior to 2:00 p.m., local time of the party to whom the Notice is being
sent, on that business day; otherwise, each such Notice shall be effective on the first business day occurring after the Notice is sent. Each such Notice shall be addressed to the party to be notified
as shown below:

(a) if to the Company:

Bill Barrett Corporation
1099 18th Street
Suite 2300
Denver, Colorado 80202
Facsimile No. (303) 291-0420
Attention: Treasurer(b) if to the Optionee:

Address of file with Company's payroll records


Either
party may change its respective address for purposes of this Section 14 by giving the other party Notice of the new address in the manner set forth above.

15.General Provisions.    This instrument (a) contains the entire agreement
between the parties, (b) may not be amended nor may any rights hereunder be waived except by an instrument in writing signed by the party sought to be charged with such amendment or waiver,
(c) shall be construed in accordance with,
and governed by the laws of the state in which the Company is then incorporated, and (d) shall be binding upon and shall inure to the benefit of the parties and their respective personal
representatives and assigns, except as above set forth. All pronouns contained herein and any variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural as
the identity of the parties hereto may require.

6

---



QuickLinks