Document:

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                                                                    EXHIBIT 10.3

                    PROPERTY MANAGEMENT AND LEASING AGREEMENT

         This PROPERTY MANAGEMENT AND LEASING AGREEMENT (this "Management
Agreement") is made and entered into as of the ____ day of _________________,
2002, by and among BEHRINGER HARVARD REIT I, INC., a Maryland corporation ("BH
REIT"), BEHRINGER HARVARD OPERATING PARTNERSHIP I LP, a Texas limited
partnership ("BH OP"), and HPT MANAGEMENT SERVICES LP, Texas limited partnership
(the "Manager").

         WHEREAS, BH OP was organized to acquire, own, operate, lease and manage
real estate properties on behalf of BH REIT; and

         WHEREAS, BH REIT intends to raise money from the sale of its common
stock to be used, net of payment of certain offering costs and expenses, for
investment in the acquisition or construction of income-producing real estate
and other real estate-related investments (including the making or purchase of
mortgage loans), some or all of which are to be acquired and held by Owner (as
hereinafter defined) on behalf of BH REIT; and

         WHEREAS, Owner intends to retain Manager to manage and coordinate the
leasing of certain of the real estate properties acquired by Owner under the
terms and conditions set forth in this Management Agreement;

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound hereby, do
hereby agree, as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Except as otherwise specified or as the context may otherwise require,
the following terms have the respective meanings set forth below for all
purposes of this Management Agreement, and the definitions of such terms are
equally applicable both to the singular and plural forms thereof:

1.1 "Affiliate" means, with respect to any Person, (i) any Person directly or
indirectly owning, controlling or holding, with the power to vote, 10% or more
of the outstanding voting securities of such other Person; (ii) any Person 10%
or more of whose outstanding voting securities are directly or indirectly owned,
controlled or held, with the power to vote, by such other Person; (iii) any
Person directly or indirectly controlling, controlled by or under common control
with such other Person; (iv) any executive officer, director, trustee

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or general partner of such other Person; and (v) any legal entity for which such
Person acts as an executive officer, director, trustee or general partner.

1.2 "Gross Revenues" means all amounts actually collected as rents or other
charges for the use and occupancy of the Properties, but shall exclude interest
and other investment income of Owner and proceeds received by Owner for a sale,
exchange, condemnation, eminent domain taking, casualty or other disposition of
assets of Owner.

1.3 "Improvements" means buildings, structures, equipment from time to time
located on the Properties and all parking and common areas located on the
Properties.

1.4 "Lease" means, unless the context otherwise requires, any lease or sublease
made by Owner as landlord or by its predecessor.

1.5 "Management Fees" has the meaning set forth in Section 5.1 hereof.

1.6 "Owner" means BH REIT, BH OP and any joint venture, limited liability
company or other Affiliate of BH REIT or BH OP that owns, in whole or in part,
on behalf of BH REIT, any Properties.

1.7 "Person" means an individual, corporation, association, business trust,
estate, trust, partnership, limited liability company or other legal entity.

1.8 "Properties" means all real estate properties owned by Owner and all tracts
as yet unspecified but to be acquired by Owner containing income-producing
improvements or on which Owner will construct income-producing improvements.

                                   ARTICLE II

                APPOINTMENT OF MANAGER; SERVICES TO BE PERFORMED

2.1 Appointment of Manager. Owner hereby engages and retains Manager as the
manager and as tenant coordinating agent of the Properties, and Manager hereby
accepts such appointment on the terms and conditions hereinafter set forth; it
being understood that this Management Agreement shall cause Manager to be, at
law, Owner's agent upon the terms contained herein.

2.2 General Duties. Manager shall devote its best efforts to performing its
duties hereunder to manage, operate, maintain and lease the Properties in a
diligent, careful and vigilant manner. The services of Manager are to be of
scope and quality not less than those generally performed by professional
property managers of other similar properties in the area. Manager shall make
available to Owner the full benefit of the judgment, experience and advice of
the members of Manager's organization and staff with respect to the policies to
be pursued by Owner relating to the operation and leasing of the Properties.

2.3 Specific Duties. Manager's duties include the following:

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                  (a) Lease Obligations. Manager shall perform all duties of the
         landlord under all Leases insofar as such duties relate to operation,
         maintenance, and day-to-day management. Manager shall also provide or
         cause to be provided, at Owner's expense, all services normally
         provided to tenants of like premises, including where applicable and
         without limitation, gas, electricity or other utilities required to be
         furnished to tenants under Leases, normal repairs and maintenance, and
         cleaning, and janitorial service. Manager shall arrange for and
         supervise the performance of all installations and improvements in
         space leased to any tenant that are either expressly required under the
         terms of the lease of such space or that are customarily provided to
         tenants.

                  (b) Maintenance. Manager shall cause the Properties to be
         maintained in the same manner as similar properties in the area.
         Manager's duties and supervision in this respect shall include, without
         limitation, cleaning of the interior and the exterior of the
         Improvements and the public common areas on the Properties and the
         making and supervision of repair, alterations, and decoration of the
         Improvements, subject to and in strict compliance with this Management
         Agreement and the Leases. Construction activities undertaken by
         Manager, if any, will be limited to activities related to the
         management, operation, maintenance, and leasing of the Property (e.g.,
         repairs, renovations, and leasehold improvements).

                  (c) Leasing Functions. Manager shall coordinate the leasing of
         the Properties and shall negotiate and use its best efforts to secure
         executed Leases from qualified tenants, and to execute same on behalf
         of Owner, if requested, for available space in the Properties, such
         Leases to be in form and on terms approved by Owner and Manager, and to
         bring about complete leasing of the Properties. Manager shall be
         responsible for the hiring of all leasing agents, as necessary for the
         leasing of the Properties, and to otherwise oversee and manage the
         leasing process on behalf of Owner.

                  (d) Notice of Violations. Manager shall forward to Owner
         promptly upon receipt all notices of violation or other notices from
         any governmental authority, and board of fire underwriters or any
         insurance company, and shall make such recommendations regarding
         compliance with such notice as shall be appropriate.

                  (e) Personnel. Any personnel hired by Manager to maintain,
         operate and lease the Property shall be the employees or independent
         contractors of Manager and not of Owner of such Property, BH OP or BH
         REIT. Manager shall use due care in the selection and supervision of
         such employees or independent contractors. Manager shall be responsible
         for the preparation of and shall timely file all payroll tax reports
         and timely make payments of all withholding and other payroll taxes
         with respect to each employee.

                  (f) Utilities and Supplies. Manager shall enter into or renew
         contracts for electricity, gas, steam, landscaping, fuel, oil,
         maintenance and other services as are customarily furnished or rendered
         in connection with the operation of similar rental property in the
         area.

                  (g) Expenses. Manager shall analyze all bills received for
         services, work and supplies in connection with maintaining and
         operating the Properties, pay all such bills when due, and, if
         requested by Owner, pay, when due, utility and water charges, sewer
         rent and assessments, and any other amount payable in respect to the
         Properties. All bills shall be paid by Manager within the time required
         to obtain discounts, if any. Owner may from time to time request that
         Manager forward certain bills to Owner promptly after receipt, and
         Manager shall comply with any such request. Manager shall pay all
         bills, assessments, real property taxes, insurance premiums and any

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         other amount payable in respect to the Properties out of the Account
         (as hereinafter defined). All expenses shall be billed at net cost
         (i.e., less all rebates, commissions, discounts and allowances, however
         designed).

                  (h) Monies Collected. Manager shall timely collect all rent
         and other monies, in the form of a check or money order, from tenants
         and any sums otherwise due Owner with respect to the Properties in the
         ordinary course of business. Owner authorizes Manager to request,
         demand, collect and provide receipt for all such rent and other monies
         and to institute legal proceedings in the name of Owner for the
         collection thereof and for the dispossession of any tenant in default
         under its Lease.

                  (i) Banking Accommodations. Manager shall establish and
         maintain a separate checking account (the "Account") for funds relating
         to the Properties. All monies deposited from time to time in the
         Account shall be deemed to be trust funds and shall be and remain the
         property of Owner and shall be withdrawn and disbursed by Manager for
         the account of Owner only as expressly permitted by this Management
         Agreement for the purposes of performing the obligations of Manager
         hereunder. No monies collected by Manager on Owner's behalf shall be
         commingled with funds of Manager. The Account shall be maintained, and
         monies shall be deposited therein and withdrawn therefrom, in
         accordance with the following:

                           (i)      All sums received from rents and other
                                    income from the Properties shall be promptly
                                    deposited by Manager in the Account. Manager
                                    shall have the right to designate two or
                                    more persons who shall be authorized to draw
                                    against the Account, but only for purposes
                                    authorized by this Management Agreement.

                           (ii)     All sums due to Manager hereunder, whether
                                    for compensation, reimbursement for
                                    expenditures, or otherwise, as herein
                                    provided, shall be a charge against the
                                    operating revenues of the Properties and
                                    shall be paid and/or withdrawn by Manager
                                    from the Account prior to the making of any
                                    other disbursements therefrom.

                           (iii)    By the 15th day after the end of each month,
                                    Manager shall forward to Owner all monies
                                    contained in the Account other than a
                                    reserve of $5,000 and any other amounts
                                    otherwise provided in the budget, which
                                    shall remain in the Account.

                  (j) Ownership Agreements. Manager has received copies of (and
         will be provided with copies of future) Articles of Incorporation,
         Agreements of Limited Partnership, Joint Venture Partnership Agreements
         and Operating Agreements, each as may be amended from time to time, of
         Owner, as applicable (the "Ownership Agreements") and is familiar with
         the terms thereof. Manager shall use reasonable care to avoid any act
         or omission that, in the performance of its duties hereunder, shall in
         any way conflict with the terms of Ownership Agreements.

                  (k) Signs. Manager shall place and remove, or cause to be
         placed and removed, such signs upon the Properties as Manager deems
         appropriate, subject, however, to the terms and conditions of the
         Leases and to any applicable ordinances and regulations.

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2.4 Approval of Leases, Contracts, Etc. In fulfilling its duties to Owner,
Manager may and hereby is authorized to enter into any leases, contracts or
agreements on behalf of Owner in the ordinary course of the management,
operation, maintenance and leasing of the Property.

2.5 Accounting, Records and Reports.

                  (a) Records. Manager shall maintain all office records and
         books of account and shall record therein, and keep copies of, each
         invoice received from services, work and supplies ordered in connection
         with the maintenance and operation of the Properties. Such records
         shall be maintained on a double entry basis. Owner and persons
         designated by Owner shall at all reasonable time have access to and the
         right to audit and make independent examinations of such records, books
         and accounts and all vouchers, files and all other material pertaining
         to the Properties and this Management Agreement, all of which Manager
         agrees to keep safe, available and separate from any records not
         pertaining to the Properties, at a place recommended by Manager and
         approved by Owner.

                  (b) Monthly Reports. On or before the 15th day after the end
         of each month during the term of this Management Agreement, Manager
         shall prepare and submit to Owner the following reports and statements:

                           (i)      rental collection record;

                           (ii)     monthly operating statement;

                           (iii)    copy of cash disbursements ledger entries
                                    for such period, if requested;

                           (iv)     copy of cash receipts ledger entries for
                                    such period, if requested;

                           (v)      the original copies of all contracts entered
                                    into by Manager on behalf of Owner during
                                    such period, if requested; and

                           (vi)     copy of ledger entries for such period
                                    relating to security deposits maintained by
                                    Manager, if requested.

                  (c) Budgets and Leasing Plans. Not later than November 15 of
         each calendar year, Manager shall prepare and submit to Owner for its
         approval an operating budget and a marketing and leasing plan on each
         Property for the calendar year immediately following such submission.
         In connection with any acquisition of a Property by Owner, Manager
         shall prepare a budget and marketing and leasing plan for the remainder
         of the calendar year. The budget and marketing and leasing plan shall
         be in the form of the budget and plan approved by Owner prior to the
         date thereof. As often as reasonably necessary during the period
         covered by any such budget, Manager may submit to Owner for its
         approval an updated budget or plan incorporating such changes as shall
         be necessary to reflect cost over-runs and the like during such period.
         If Owner does not disapprove any such budget within 30 days after
         receipt thereof by Owner, such budget shall be deemed approved. If
         Owner shall disapprove any such budget or plan, it shall so notify
         Manager within said 30-day period and explain the reasons therefor. If
         Owner disapproves of any budget or plan, Manager shall submit a revised
         budget or plan, as applicable, within 10 (ten) days of receipt of the
         notice of disapproval, and Owner shall have 10 (ten) days to provide
         notice to Manager if it disapproves of any such revised budget or plan.
         Manager will not incur any costs other than those estimated in any
         budget except for:

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                           (i)      tenant improvements and real estate
                                    commissions required under a Lease;

                           (ii)     maintenance or repair costs under $5,000 per
                                    Property;

                           (iii)    costs incurred in emergency situations in
                                    which action is immediately necessary for
                                    the preservation or safety of the Property,
                                    or for the safety of occupants or other
                                    persons (or to avoid the suspension of any
                                    necessary service of the Property);

                           (iv)     expenditures for real estate taxes and
                                    assessment; and

                           (v)      maintenance supplies calling for an
                                    aggregate purchase price less than $25,000
                                    per annum for all Properties.

Budgets prepared by Manager shall be for planning and informational purposes
only, and Manager shall have no liability to Owner for any failure to meet any
such budget. However, Manager will use its best efforts to operate within the
approved budget.

                  (d) Legal Requirements. Manager shall execute and file when
         due all forms, reports, and returns required by law relating to the
         employment of its personnel. Manager shall be responsible for notifying
         Owner in the event it receives notice that any Improvement on a
         Property or any equipment therein does not comply with the requirements
         of any statute, ordinance, law or regulation of any governmental body
         or of any public authority or official thereof having or claiming to
         have jurisdiction thereover. Manager shall promptly forward to Owner
         any complaints, warnings, notices or summonses received by it relating
         to such matters. Owner represents that to the best of its knowledge
         each of its Properties and any equipment thereon will upon acquisition
         by Owner comply with all such requirements. Owner authorizes Manager to
         disclose the ownership of the Property by Owner to any such officials.
         Owner agrees to indemnify, protect, defend, save and hold Manager and
         its stockholders, officers, directors, employees, managers, successors
         and assigns (collectively, the "Indemnified Parties") harmless of and
         from any and all Losses (as defined in Section 3.5(a) hereof) that may
         be imposed on them or any or all of them by reason of the failure of
         Owner to correct any present or future violation or alleged violation
         of any and all present or future laws, ordinances, statutes, or
         regulations of any public authority or official thereof, having or
         claiming to have jurisdiction thereover, of which it has actual notice.

                                   ARTICLE III

           AUTHORITY GRANTED TO MANAGER AND CERTAIN OWNER OBLIGATIONS

3.1 Authority As To Tenants, Etc. Owner agrees and does hereby give Manager the
following exclusive authority and powers (all of which shall be exercised either
in the name of Manager, as Manager for Owner, or in the name or Owner entered
into by Manager as Owner's authorized agent, and Owner shall assume all expenses
in connection with such matters):

                  (a) to advertise each Property or any part thereof and to
         display signs thereon, as permitted by law;

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                  (b) to lease the Properties to tenants;

                  (c) to pay all expenses of leasing such Property, including
         but not limited to, newspaper and other advertising, signage, banners,
         brochures, referral commissions, leasing commissions, finder's fees and
         salaries, bonuses and other compensation of leasing personnel
         responsible for the leasing of the Property;

                  (d) to cause references of prospective tenants to be
         investigated, it being understood and agreed by the parties hereto that
         Manager does not guarantee the creditworthiness or collectibility of
         accounts receivable from tenants, users or lessees; and to negotiate
         new Leases and renewals and cancellations of existing Leases that shall
         be subject to Manager obtaining Owner's approval;

                  (e) to collect from tenants all or any of the following: a
         late rent administrative charge, a non-negotiable check charge, credit
         report fee, a subleasing administrative charge and/or broker's
         commission; and Manager need not account for such charges and/or
         commission to Owner;

                  (f) to terminate tenancies and to sign and serve in the name
         of Owner of each Property such notices as are deemed necessary by
         Manager;

                           (i)      to institute and prosecute actions to evict
                                    tenants and to recover possession of the
                                    Property or portions thereof;

                           (ii)     with Owner's authorization, to sue for and
                                    in the name of Owner and recover rent and
                                    other sums due; and to settle, compromise,
                                    and release such actions or suits, or
                                    reinstate such tenancies. All expenses of
                                    litigation including, but not limited to,
                                    attorneys' fees, filing fees, and court
                                    costs that Manager shall incur in connection
                                    with the collecting of rent and other sums,
                                    or to recover possession of any Property or
                                    any portion thereof, shall be deemed to be
                                    an operational expense of the Property.
                                    Manager and Owner shall concur on the
                                    selection of the attorneys to handle such
                                    litigation.

3.2 Operational Authority. Owner agrees and does hereby give Manager the
following exclusive authority and powers (all of which shall be exercised either
in the name of Manager, as Manager for Owner, or in the name or Owner entered
into by Manager as Owner's authorized agent, and Owner shall assume all expenses
in connection with such matters):

                  (a) to hire, supervise, discharge, and pay all labor required
         for the operation and maintenance of each Property including but not
         limited to on-site personnel, managers, assistant managers, leasing
         consultants, engineers, janitors, maintenance supervisors and other
         employees required for the operation and maintenance of the Property,
         including personnel spending a portion of their working hours (to be
         charged on a pro rata basis) at the Property. All expenses of such
         employment shall be deemed operational expenses of the Property.

                  (b) to make or cause to be made all ordinary repairs and
         replacements necessary to preserve each Property in its present
         condition and for the operating efficiency thereof and all alterations
         required to comply with lease requirements, and to decorate the
         Property;

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               (c) to negotiate and enter into, as Manager of the Property,
         contracts for all items on budgets that have been approved by Owner,
         any emergency services or repairs for items not exceeding $5,000,
         appropriate service agreements and labor agreements for normal
         operation of the Property, which have terms not to exceed three years,
         and agreements for all budgeted maintenance, minor alterations, and
         utility services, including, but not limited to, electricity, gas,
         fuel, water, telephone, window washing, scavenger service, landscaping,
         snow removal, pest exterminating, decorating and legal services in
         connection with the Leases and service agreements relating to the
         Property, and other services or such of them as Manager may consider
         appropriate; and

                  (d) to purchase supplies and pay all bills.

Manager shall use its best efforts to obtain the foregoing services and
utilities for the Property under terms that are as cost-effective and otherwise
favorable to Manager as possible for the quality of services and utilities
required. Owner hereby appoints Manager as Owner's authorized Manager for the
purpose of executing, as Manager for said Owner, all such contracts. In
addition, Owner agrees to specifically assume in writing all obligations under
all such contracts so entered into by Manager, on behalf of Owner of the
Property, upon the termination of this Agreement, and Owner shall indemnify,
protect, save, defend and hold Manager and the other Indemnified Parties
harmless from and against any and all Losses resulting from, arising out of or
in any way related to such contracts and that relate to or concern matters
occurring after termination of this Agreement, but excluding matters arising out
of Manager's willful misconduct, gross negligence and/or unlawful acts. Manager
shall secure the approval of, and execution of appropriate contracts by, Owner
for any non-budgeted and non-emergency/contingency capital items, alterations or
other expenditures in excess of $5,000 for any one item, securing for each item
at least three written bids, if practicable, or providing evidence satisfactory
to Owner that the contract amount is lower than industry standard pricing, from
responsible contractors. Manager shall have the right from time to time during
the term hereof, to contract with and make purchases from Affiliates of Manager,
provided that contract rates and prices are competitive with other available
sources. Manager may at any time and from time to time request and receive the
prior written authorization of Owner of the Property of any one or more
purchases or other expenditures, notwithstanding that Manager may otherwise be
authorized hereunder to make such purchases or expenditures.

3.3 Rent and Other Collections. Owner agrees and does hereby give Manager the
exclusive authority and powers (all of which shall be exercised either in the
name of Manager, as Manager for Owner, or in the name or Owner entered into by
Manager as Owner's authorized agent, and Owner shall assume all expenses in
connection with such matters) to collect rents and/or assessments and other
items, including but not limited to tenant payments for real estate taxes,
property liability and other insurance, damages and repairs, common area
maintenance, tax reduction fees and all other tenant reimbursements,
administrative charges, proceeds of rental interruption insurance, parking fees,
income from coin operated machines and other miscellaneous income, due or to
become due and give receipts therefor and to deposit all such Gross Revenue
collected hereunder in the Account. Manager may endorse any and all checks
received in connection with the operation of any Property and drawn to the order
of Owner, and Owner shall, upon request, furnish Manager's depository with an
appropriate authorization for Manager to make such endorsement. Manager shall
also have the exclusive authority to collect and handle tenants' security
deposits, including the right to apply such security deposits to unpaid rent,
and to comply, on behalf of Owner of the Property, with applicable state or
local laws concerning security deposits and interest thereon, if any. Manager
shall not be required to advance any monies for the care or management of any
Property. Owner agrees to advance all monies necessary therefor. If

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Manager shall elect to advance any money in connection with a Property, Owner
agrees to reimburse Manager forthwith and hereby authorizes Manager to deduct
such advances from any monies due Owner. In connection with any insured losses
or damages relating to any Property, Manager shall have the exclusive authority
to handle all steps necessary regarding any such claim; provided that Manager
will not make any adjustments or settlements in excess of $10,000 without
Owner's prior written consent.

3.4 Payment of Expenses. Owner agrees and does hereby give Manager the exclusive
authority and power (all of which shall be exercised either in the name of
Manager, as Manager for Owner, or in the name or Owner entered into by Manager
as Owner's authorized agent, and Owner shall assume all expenses in connection
with such matters) to pay all expenses of the Property from the Gross Revenue
collected in accordance with Section 3.3 above, from the Account. It is
understood that the Gross Revenue will be used first to pay the compensation to
Manager as contained in Article 5 below, then operational expenses and then any
mortgage indebtedness, including real estate tax and insurance impounds, but
only as directed by Owner in writing and only if sufficient Gross Revenue is
available for such payments. Nothing in this Agreement shall be interpreted in
such a manner as to obligate Manager to pay from Gross Revenue, any expenses
incurred by Owner prior to the commencement of this Agreement, except to the
extent Owner advances additional funds to pay such expenses.

3.5 Certain Owner Indemnification Obligations.

                  (a) On Termination. In the event this Agreement is terminated
         for any reason prior to the expiration of its original term or any
         renewal term, Owner shall indemnify, protect, defend, save and hold
         Manager and all of the other Indemnified Parties harmless from and
         against any and all claims, causes of action, demands, suits,
         proceedings, loss, judgments, damage, awards, liens, fines, costs,
         attorney's fees and expenses, of every kind and nature whatsoever
         (collectively, "Losses"), that may be imposed on or incurred by Manager
         by reason of the willful misconduct, gross negligence and/or unlawful
         acts (such unlawfulness having been adjudicated by a court of proper
         jurisdiction) of Owner.

                  (b) Property Damage, Etc. Owner agrees to indemnify, defend,
         protect, save and hold Manager and all of the other Indemnified Parties
         harmless from any and all Losses in connection with or in any way
         related to the Property and from liability for damage to the Property
         and injuries to or death of any person whomsoever, and damage to
         property; provided, however, that such indemnification shall not extend
         to any such Losses arising out of the willful misconduct, gross
         negligence and/or unlawful acts (such unlawfulness having been
         adjudicated by a court of proper jurisdiction) of Manager or any of the
         other Indemnified Parties. Manager shall not be liable for any error of
         judgment or for any mistake of fact or law, or for any thing that it
         may do or refrain from doing, except in cases of willful misconduct,
         gross negligence and/or unlawful acts (such unlawfulness having been
         adjudicated by a court of proper jurisdiction).

3.6 Environmental Matters. Owner hereby warrants and represents to Manager that
to the best of Owner's knowledge, no Property, upon acquisition by Owner, nor
any part thereof, will be used to treat, deposit, store, dispose of or place any
hazardous substance that may subject Manager to liability or claims under the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C.A. Section 9607) or any constitutional provision, statute, ordinance, law,
or regulation of any governmental body or of any order or ruling of any public
authority or official thereof, having or claiming to have jurisdiction
thereover. Furthermore, Owner

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agrees to indemnify, protect, defend, save and hold Manager and all of the other
Indemnified Parties from any and all Losses involving, concerning or in any way
related to any past, current or future allegations regarding treatment,
depositing, storage, disposal or placement by any party other than Manager of
hazardous substances on the Property.

3.7 Legal Status of Properties. Owner represents that to the best of its
knowledge each Property and any equipment thereon, when acquired by Owner, will
comply with all legal requirements and authorizes Manager to disclose the
identity of the Owner of the Property to any such officials and agrees to
indemnify, protect, defend, save and hold Manager and the other Indemnified
Parties harmless of and from any and all Losses that may be imposed on them or
any of them by reason of the failure of Owner to correct any present or future
violation or alleged violation of any and all present or future laws,
ordinances, statutes, or regulations of any public authority or official
thereof, having or claiming to have jurisdiction thereover, of which it has
actual notice. In the event it is alleged or charged that any Improvement or any
equipment on a Property or any act or failure to act by Owner with respect to
the Property or the sale, rental, or other disposition thereof fails to comply
with, or is in violation of, any of the requirements of any constitutional
provision, statute, ordinance, law, or regulation of any governmental body or
any order or ruling of any public authority or official thereof having or
claiming to have jurisdiction thereover, and Manager, in its sole and absolute
discretion, considers that the action or position of Owner, with respect thereto
may result in damage or liability to Manager, Manager shall have the right to
cancel this Agreement at any time by written notice to Owner of its election so
to do, which cancellation shall be effective upon the service of such notice.
Such cancellation shall not release the indemnities of Owner set forth in this
Agreement and shall not terminate any liability or obligation of Owner to
Manager for any payment, reimbursement, or other sum of money then due and
payable to Manager hereunder.

3.8 Extraordinary Payments. Owner agrees to give adequate advance written notice
to Manager if Owner desires that Manager make any extraordinary payment, out of
Gross Revenue, to the extent funds are available after the payment of Manager's
compensation as provided for herein and all operational expenses, of mortgage
indebtedness, general taxes, special assessments, or fire, boiler or any other
insurance premiums.

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                                   ARTICLE IV

                                    EXPENSES

4.1 Owner's Expenses. Except as otherwise specifically provided, all costs and
expenses incurred hereunder by Manager in fulfilling its duties to Owner shall
be for the account of and on behalf of Owner. Such costs and expenses shall
include the wages and salaries and other employee-related expenses of all
on-site and off-site employees of Manager who are engaged in the operation,
management, maintenance and leasing or access control of the Properties,
including taxes, insurance and benefits relating to such employees, and legal,
travel and other out-of-pocket expenses that are directly related to the
management of specific Properties. All costs and expenses for which Owner is
responsible under this Management Agreement shall be paid by Manager out of the
Account. In the event the Account does not contain sufficient funds to pay all
said expenses, Owner shall fund all sums necessary to meet such additional costs
and expenses.

4.2 Manager's Expenses. Manager shall, out of its own funds, pay all of its
general overhead and administrative expenses.

                                    ARTICLE V

                             MANAGER'S COMPENSATION

5.1 Management Fees. Commencing on the date hereof, Owner shall pay Manager
property management and leasing fees in an amount equal to three percent (3.0%)
of Gross Revenues (the "Management Fees") on a monthly basis from the rental
income received from the Properties over the term of this Management Agreement.
Manager's compensation under this Section 5.1 shall apply to all renewals,
extensions or expansions of Leases that Manager has originally negotiated. In
the event Manager assists with planning and coordinating the construction of any
tenant-paid finish-out or improvements, Manager shall be entitled to receive
from any such tenant an amount equal to not greater than five percent (5.0%) of
the cost of such tenant improvements.

5.2 Leasing Fees. In addition to the compensation paid to Manager under Section
5.1 above, Manager shall be entitled to receive a separate fee for the Leases of
new tenants and renewals of Leases with existing tenants in an amount not to
exceed the fee customarily charged in arm's length transactions by others
rendering similar services in the same geographic area for similar properties as
determined by a survey of brokers and agents in such area.

5.3 Audit Adjustment. If any audit of the records, books or accounts relating to
the Properties discloses an overpayment or underpayment of Management Fees,
Owner or Manager shall promptly pay to the other party the amount of such
overpayment or underpayment, as the case may be. If such audit discloses an
overpayment of Management Fees for any fiscal year of more than the correct
Management Fees for such fiscal year, Manager shall bear the cost of such audit.

                                      -11-
<PAGE>

                                   ARTICLE VI

                          INSURANCE AND INDEMNIFICATION

6.1 Insurance to be Carried.

                  (a) Manager shall obtain and keep in full force and effect
         insurance on the Properties against such hazards as Owner and Manager
         shall deem appropriate, but in any event insurance sufficient to comply
         with the Leases and Ownership Agreements shall be maintained. All
         liability policies shall provide sufficient insurance satisfactory to
         both Owner and Manager and shall contain waivers of subrogation for the
         benefit of Manager.

                  (b) Manager shall obtain and keep in full force and effect, in
         accordance with the laws of the state in which each Property is
         located, employer's liability insurance applicable to and covering all
         employees of Manager at the Properties and all persons engaged in the
         performance of any work required hereunder, and Manager shall furnish
         Owner certificates of insurers naming Owner as a co-insured and
         evidencing that such insurance is in effect. If any work under this
         Management Agreement is subcontracted as permitted herein, Manager
         shall include in each subcontract a provision that the subcontractor
         shall also furnish Owner with such a certificate.

6.2 Insurance Expenses. Premiums and other expenses of such insurance, as well
as any applicable payments in respect of deductibles shall be borne by Owner.

6.3 Cooperation with Insurers. Manager shall cooperate with and provide
reasonable access to the Properties to representatives of insurance companies
and insurance brokers or agents with respect to insurance that is in effect or
for which application has been made. Manager shall use its best efforts to
comply with all requirements of insurers.

6.4 Accidents and Claims. Manager shall promptly investigate and shall report in
detail to Owner all accidents, claims for damage relating to Ownership,
operation or maintenance of the Properties, and any damage or destruction to the
Properties and the estimated costs of repair thereof, and shall prepare for
approval by Owner all reports required by an insurance company in connection
with any such accident, claim, damage, or destruction. Such reports shall be
given to Owner promptly, and any report not so given within 10 (ten) days after
the occurrence of any such accident, claim, damage or destruction shall be noted
in the monthly operating statement delivered to Owner pursuant to Section
2.5(b). Manager is authorized to settle any claim against an insurance company
arising out of any policy and, in connection with such claim, to execute proofs
of loss and adjustments of loss and to collect and receipt for loss proceeds.

6.5 Indemnification. Manager shall hold Owner harmless from and indemnify and
defend Owner against any and all claims or liability for any injury or damage to
any person or property whatsoever for which Manager is responsible occurring in,
on, or about the Properties, including, without limitation, the Improvements
when such injury or damage shall be caused by the negligence of Manager, its
agents, servants, or employees, except to the extent that Owner recovers
insurance proceeds with respect to such matter. Owner will indemnify and hold
Manager harmless against all liability for injury to persons and

                                      -12-
<PAGE>
damage to property caused by Owner's negligence and which did not result from
the negligence of misconduct of Manager, except to the extent Manager recovers
insurance proceeds with respect to such matter.

                                   ARTICLE VII

                              TERM AND TERMINATION

7.1 Term. This Agreement shall commence on the date first above written and
shall continue until the third anniversary of such date and thereafter for
successive three year renewal periods, unless on or before 30 days prior to the
date last above mentioned or on or before 30 days prior to the expiration of any
such renewal period, Manager shall notify Owner in writing that it elects to
terminate this Agreement, in which case this Agreement shall be thereby
terminated on said last mentioned date. In addition, and notwithstanding the
foregoing, Owner may terminate this Agreement at any time upon delivery of
written notice to Manager not less than thirty (30) days prior to the effective
date of termination, in the event of (and only in the event of) a showing by
Owner of willful misconduct, gross negligence, or deliberate malfeasance by
Manager in the performance of Manager's duties hereunder. In addition, either
party may terminate this Agreement immediately upon the occurrence of any of the
following:

                  (a) A decree or order is rendered by a court having
         jurisdiction (i) adjudging Manager as bankrupt or insolvent, or (ii)
         approving as properly filed a petition seeking reorganization,
         readjustment, arrangement, composition or similar relief for Manager
         under the federal bankruptcy laws or any similar applicable law or
         practice, or (iii) appointing a receiver or liquidator or trustee or
         assignee in bankruptcy or insolvency of Manager or a substantial part
         of the property of Manager, or for the winding up or liquidation of its
         affairs, or

                  (b) Manager (i) institutes proceedings to be adjudicated a
         voluntary bankrupt or an insolvent, (ii) consents to the filing of a
         bankruptcy proceeding against it, (iii) files a petition or answer or
         consent seeking reorganization, readjustment, arrangement, composition
         or relief under any similar applicable law or practice, (iv) consents
         to the filing of any such petition, or to the appointment of a receiver
         or liquidator or trustee or assignee in bankruptcy or insolvency for it
         or for a substantial part of its property, (v) makes an assignment for
         the benefit of creditors, (vi) is unable to or admits in writing its
         inability to pay its debts generally as they become due unless such
         inability shall be the fault of the other party, or (iv) takes
         corporate or other action in furtherance of any of the aforesaid
         purposes.

7.2 Manager's Obligations Upon Termination. Upon the termination of this
Management Agreement, Manager shall have the following duties:

                  (a) Manager shall deliver to Owner or its designee, all books
         and records with respect to the Properties.

                  (b) Manager shall transfer and assign to Owner, or its
         designee, all service contracts and personal property relating to or
         used in the operation and maintenance of the Properties, except
         personal property paid for and owned by Manager. Manager shall also,
         for a period of sixty (60) days immediately following the date of such
         termination, make itself available to

                                      -13-
<PAGE>
         consult with and advise Owner, or its designee, regarding the
         operation, maintenance and leasing of the Properties.

                  (c) Manager shall render to Owner an accounting of all funds
         of Owner in its possession and shall deliver to Owner a statement of
         all Management Fees claimed to be due to Manager and shall cause funds
         of Owner held by Manager relating to the Properties to be paid to Owner
         or its designee.

7.3 Owner's Obligations Upon Termination. Owner shall pay or reimburse Manager
for any sums of money due it under this Agreement for services and expenses
prior to termination of this Agreement. All provisions of this Agreement that
require Owner to have insured, or to protect, defend, save, hold and indemnify
or to reimburse Manager shall survive any expiration or termination of this
Agreement and, if Manager is or becomes involved in any claim, proceeding or
litigation by reason of having been Manager of Owner, such provisions shall
apply as if this Agreement were still in effect.

The parties understand and agree that Manager may withhold funds for sixty (60)
days after the end of the month in which this Agreement is terminated to pay
bills previously incurred but not yet invoiced and to close accounts. Should the
funds withheld be insufficient to meet the obligation of Manager to pay bills
previously incurred, Owner will, upon demand, advance sufficient funds to
Manager to ensure fulfillment of Manager's obligation to do so, within ten (10)
days of receipt of notice and an itemization of such unpaid bills.

                                  ARTICLE VIII

                                  MISCELLANEOUS

8.1 Notices. All notices, approvals, consents and other communications hereunder
shall be in writing, and, except when receipt is required to start the running
of a period of time, shall be deemed given when delivered in person or on the
fifth day after its mailing by either party by registered or certified United
States mail, postage prepaid and return receipt requested, to the other party,
at the addresses set forth after their respect name below or at such different
addresses as either party shall have theretofore advised the other party in
writing in accordance with this Section 8.1.

<TABLE>
<CAPTION>
<S>                      <C>
             Owner:      BEHRINGER HARVARD OPERATING PARTNERSHIP I LP
                         c/o Behringer Harvard REIT I, Inc.
                         1323 North Stemmons Freeway, Suite 210
                         Dallas, Texas 75207
                         Attention:  Chief Operating Officer

             Manager:    HPT MANAGEMENT SERVICES LP
                         1323 North Stemmons Freeway, Suite 204
                         Dallas, Texas 75207
                         Attention:  Chief Operating Officer
</TABLE>

8.2 Governing Law; Venue. This Management Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, and any action
brought to enforce the agreements made

                                      -14-
<PAGE>
hereunder or any action which arises out of the relationship created hereunder
shall be brought exclusively in Dallas County, Texas.

8.3 Assignment. Manager may delegate partially or in full its duties and rights
under this Management Agreement but only with the prior written consent of
Owner. Owner acknowledges and agrees that any or all of the duties of Manager as
contained herein may be delegated by Manager and performed by a person or entity
("Submanager") with whom Manager contracts for the purpose of performing such
duties. Owner specifically grants Manager the authority to enter into such a
contract with a Submanager; provided that Owner shall have no liability or
responsibility to any such Submanager for the payment of the Submanager's fee or
for reimbursement to the Submanager of its expenses or to indemnify the
Submanager in any manner for any matter; and provided further that Manager shall
require such Submanager to agree, in the written agreement setting forth the
duties and obligations of such Submanager, to indemnify Owner for all Losses
incurred by Owner as a result of the willful misconduct, gross negligence and/or
unlawful acts of the Submanager. This Management Agreement shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and assigns.

8.4 No Waiver. The failure of Owner to seek redress for violation or to insist
upon the strict performance of any covenant or condition of this Management
Agreement shall not constitute a waiver thereof for the future.

8.5 Amendments. This Management Agreement may be amended only by an instrument
in writing signed by the party against whom enforcement of the amendment is
sought.

8.6 Headings. The headings of the various subdivisions of this Management
Agreement are for reference only and shall not define or limit any of the terms
or provisions hereof.

8.7 Counterparts. This Management Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, and it shall not be
necessary in making proof of this Management Agreement to produce or account for
more than one such counterpart.

8.8 Entire Agreement. This Management Agreement contains the entire
understanding and all agreements between Owner and Manager respecting the
management of the Properties. There are no representations, agreements,
arrangements or understandings, oral or written, between Owner and Manager
relating to the management of the Properties that are not fully expressed
herein.

8.9 Disputes. If there shall be a dispute between Owner and Manager relating to
this Management Agreement resulting in litigation, the prevailing party in such
litigation shall be entitled to recover from the other party to such litigation
such amount as the court shall fix as reasonable attorneys' fees.

8.10 Activities of Manager. The obligations of Manager pursuant to the terms and
provisions of this Management Agreement shall not be construed to preclude
Manager from engaging in other activities or business ventures, whether or not
such other activities or ventures are in competition with Owner or the business
of Owner.

8.11 Independent Contractor. Manager and Owner shall not be construed as joint
venturers or partners of each other pursuant to this Management Agreement, and
neither shall have the power to bind or

                                      -15-
<PAGE>
obligate the other except as set forth herein. In all respects, the status of
Manger to Owner under this Agreement is that of an independent contractor.

8.12 No Third-Party Rights. Nothing expressed or referred to in this Management
Agreement will be construed to give any Person other than the parties to this
Management Agreement any legal or equitable right, remedy or claim under or with
respect to this Management Agreement or any provision of this Management
Agreement, except such rights as shall inure to a successor or permitted
assignee pursuant to Section 8.3.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                      -16-
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Property Management
and Leasing Agreement as of the date first above written.

                                   BEHRINGER HARVARD REIT I, INC.

                                   By:  ______________________________________
                                          Robert M. Behringer
                                          President

                                   BEHRINGER HARVARD OPERATING PARTNERSHIP I LP

                                   By:  Behringer Harvard REIT I, Inc.
                                           General Partner

                                       By:  _______________________________
                                              Robert M. Behringer
                                              President

                                      -17-
<PAGE>
                                   HPT MANAGEMENT SERVICES LP

                                   By:  _______________________________
                                          Robert M. Behringer
                                          President

                                      -18-<PAGE>
                                                                    EXHIBIT 10.4

                                ESCROW AGREEMENT

Wells Fargo Bank Iowa, National Association
666 Walnut N8200-034
Corporate Trust Services, PFG
Des Moines, IA  50309

         Re:  Behringer Harvard REIT I, Inc.

Ladies and Gentlemen:

BEHRINGER HARVARD REIT I, INC., a Maryland corporation (the "Company"), will
issue in a public offering (the "Offering") shares of its common stock (the
"Stock") pursuant to a Registration Statement on Form S-11 filed by the Company
with the Securities and Exchange Commission. Behringer Securities LP, a Texas
limited partnership (the "Dealer Manager"), will act as dealer manager for the
offering of the Stock. The Company is entering into this agreement to set forth
the terms on which Wells Fargo Bank Iowa, National Association (the "Escrow
Agent"), will hold and disburse the proceeds from subscriptions for the purchase
of the Stock in the Offering until such time as: (i) proceeds from nonaffiliates
of the Company have been received for Stock, resulting in total minimum capital
raised of $2,500,000 (the "Required Capital"); (ii) in the case of proceeds
received from residents of Pennsylvania ("Pennsylvania Investors"), the Company
has received subscriptions for Stock resulting in total minimum capital raised
of $44,000,000, not including subscriptions from Pennsylvania Investors (the
"Pennsylvania Required Capital"); and (iii) in the case of subscriptions
received from residents of New York ("New York Investors"), the Company has
received proceeds for Stock resulting in total minimum capital raised of
$2,500,000, not including proceeds from New York Investors (the "New York
Required Capital").

The Company hereby appoints Wells Fargo Bank Iowa, National Association as
Escrow Agent for purposes of holding the proceeds from the subscriptions for the
Stock, on the terms and conditions hereinafter set forth:

1. Persons subscribing to purchase the Stock (the "Subscribers") will be
instructed by the Dealer Manager or any soliciting dealers to remit the purchase
price in the form of checks, drafts, wires, Automated Clearing House (ACH)or
money orders (hereinafter "instruments of payment") payable to the order of
"Wells Fargo Bank Iowa, Behringer Harvard REIT I, Inc." Any checks received made
payable to a party other than the Escrow Agent shall be returned to the
soliciting dealer who submitted the check. Within one (1) business day after
receipt of instruments of payment from the Offering, the Dealer Manager will
send to the Escrow Agent: (a) each Subscriber's name, address, executed IRS Form
W-9, number of shares purchased, and purchase price remitted, and (b) the
instruments of payment from such Subscribers ( the "Subscription Materials"),
for deposit by the Escrow Agent into an interest-bearing deposit account
entitled "ESCROW ACCOUNT FOR THE BENEFIT OF SUBSCRIBERS FOR COMMON STOCK OF
BEHRINGER HARVARD REIT I, INC." (the "Escrow Account"), which deposit shall
occur within one (1) business day after its receipt of all the Subscription
Materials, until such Escrow Account has closed pursuant to Section 3(a) hereof.
Instruments of payment received from Pennsylvania Investors (as identified as
such by the Company) shall be accounted for separately in a subaccount entitled
"ESCROW ACCOUNT FOR THE BENEFIT OF PENNSYLVANIA INVESTORS" (the "Pennsylvania
Escrow Account"), until such Pennsylvania Escrow Account has closed pursuant to
Section 3(a) hereof. Instruments of payment received from New York Investors (as
identified as such by the Company) shall be accounted for separately in a
subaccount entitled "ESCROW ACCOUNT FOR THE BENEFIT OF NEW YORK INVESTORS" (the
"New York Escrow Account"), until such New York Escrow Account has closed
pursuant to Section 3(a) hereof. Each of the Escrow Accounts, Pennsylvania
Escrow Account, and New York Escrow Account will be established and maintained
in such a way as to permit the interest income calculations described in
paragraph 7.

2. The Escrow Agent agrees to promptly process for collection the instruments of
payment upon deposit into the applicable Escrow Account, Pennsylvania Escrow
Account, or New York Escrow Account. Deposits shall be held in the Escrow
Account, the Pennsylvania Escrow Account, and the New York Escrow Account until
such funds

<PAGE>

are disbursed in accordance with paragraph 3 hereof. If any of the instruments
of payment are returned to the Escrow Agent for nonpayment prior to receipt of
the Required Capital or, in connection with subscriptions from Pennsylvania
Investors, the Pennsylvania Required Capital or, in connection with
subscriptions from New York Investors, the New York Required Capital, the Escrow
Agent shall promptly notify the Dealer Manager and the Company in writing via
mail, email or facsimile of such nonpayment, and is authorized to debit the
Escrow Account, the Pennsylvania Escrow Account, or the New York Escrow Account,
as applicable, in the amount of such returned payment as well as any interest
earned on the amount of such payment.

3.       (a)      Subject to the provisions of subparagraphs 3(b)-3(f) below:

                  (i) once collected funds in the Escrow Account are an amount
                  equal to or greater than the Required Capital, the Escrow
                  Agent shall promptly notify the Company and, upon receiving
                  written instruction from the Company, (A) disburse to the
                  Company, by check, ACH or wire transfer, the funds in the
                  Escrow Account representing the gross purchase price for the
                  Stock, and (B) disburse to the Subscribers or the Company, as
                  applicable, any interest thereon pursuant to the provisions of
                  subparagraph 3(f). For purposes of this Agreement, the term
                  "collected funds" shall mean all funds received by the Escrow
                  Agent that have cleared normal banking channels and are in the
                  form of cash or a cash equivalent. After such time the Escrow
                  Account shall remain open and the Company shall continue to
                  cause subscriptions for the Stock that are not to be deposited
                  in the Pennsylvania Escrow Account or the New York Escrow
                  Account to be deposited therein until the Company informs the
                  Escrow Agent in writing to close the Escrow Account, and
                  thereafter any subscription documents and instruments of
                  payment received by the Escrow Agent from Subscribers other
                  than Pennsylvania Investors and New York Investors shall be
                  forwarded directly to the Company.

                  (ii) regardless of any closing of the Escrow Account, the
                  Company and the Dealer Manager shall continue to forward
                  instruments of payment and Subscription Materials received
                  from Pennsylvania Investors for deposit into the Pennsylvania
                  Escrow Account to the Escrow Agent until such time as the
                  Company notifies the Escrow Agent in writing that total
                  subscription proceeds (not including the amount then in the
                  Pennsylvania Escrow Account) equal or exceed the Pennsylvania
                  Required Capital. Upon receipt of a written notice from the
                  Company that total subscription proceeds (not including the
                  amount then in the Pennsylvania Escrow Account) equaling or
                  exceeding the Pennsylvania Required Capital have been received
                  in collected funds, the Escrow Agent shall (A) disburse to the
                  Company, by check, ACH or wire transfer, the funds then in the
                  Pennsylvania Escrow Account representing the gross purchase
                  price for the Stock, and (B) disburse to the Pennsylvania
                  Investors or the Company, as applicable, any interest thereon
                  pursuant to the provisions of subparagraph 3(f). Following
                  such disbursements, the Pennsylvania Escrow Account will close
                  and thereafter any Subscription Materials and instruments of
                  payment received by the Escrow Agent from Pennsylvania
                  Investors shall be deposited directly to the Escrow Account
                  (or to the Company, if it has closed the Escrow Account, as
                  instructed in writing by the Company).

                  (iii) regardless of any closing of the Escrow Account, the
                  Company and the Dealer Manager shall continue to forward
                  instruments of payment and Subscription Materials received
                  from New York Investors for deposit into the New York Escrow
                  Account to the Escrow Agent until such time as the Company
                  notifies the Escrow Agent in writing that total subscription
                  proceeds (not including the amount then in the New York Escrow
                  Account) equal or exceed the New York Required Capital. Upon
                  receipt of a written notice from the Company that total
                  subscription proceeds (not including the amount then in the
                  New York Escrow Account) equaling or exceeding the New York
                  Required Capital have been received in collected funds, the
                  Escrow Agent shall (A) disburse to the Company, by check, ACH
                  or wire transfer, the funds then in the New York Escrow
                  Account representing the gross purchase price for the Stock,
                  and (B) disburse to the New York Investors or the Company, as
                  applicable, any interest thereon pursuant to the provisions of
                  subparagraph 3(f). Following such disbursements, the New York
                  Escrow Account will close and thereafter any Subscription
                  Materials and instruments of payment received by the Escrow
                  Agent

                                       2
<PAGE>

                  from New York Investors shall be deposited directly to the
                  Escrow Account (or to the Company, if it has closed the Escrow
                  Account, as instructed in writing by the Company).

         (b) If, at the close of business on __________ ___, 2003 (the
         "Expiration Date") the Escrow Agent shall promptly notify the Company
         if it is not in receipt of evidence of Subscription Materials accepted
         on or before the Expiration Date, and instruments of payment dated not
         later than that the Expiration Date, for the purchase of Stock
         providing for total purchase proceeds that equal or exceed the Required
         Capital (from all sources but exclusive of any funds received from
         subscriptions for Stock from entities which the Company has notified
         the Escrow Agent are affiliated with the Company). In the event, the
         Escrow Agent is not in possession of an executed IRS Form W-9 from any
         Subscriber, the Company shall provide the Escrow Agent an executed IRS
         Form W-9 from such Subscriber within ten (10) calendar days after such
         notice. On the tenth (10th) day following the receipt of such notice,
         the Escrow Agent shall promptly return directly to each Subscriber the
         collected funds deposited in the Escrow Account, the Pennsylvania
         Escrow Account, and the New York Escrow Account on behalf of such
         Subscriber (unless earlier disbursed in accordance with paragraph
         3(c)), or shall return the instruments of payment delivered, but not
         yet processed for collection prior to such time, together with interest
         in the amounts calculated pursuant to paragraph 7 for each Subscriber
         at the address provided by the Dealer Manager or the Company. In the
         event an executed IRS Form W-9 is not received for each Subscriber
         within ten (10) calendar days, the Escrow Agent shall thereupon remit
         an amount to the Subscribers in accordance with the provisions hereof,
         withholding thirty percent (30%) of any interest income on subscription
         proceeds (determined in accordance with paragraph 7) attributable to
         those Subscribers for whom the Escrow Agent does not possess an
         executed IRS Form W-9. However, the Escrow Agent shall not be required
         to remit any payments until funds represented by such payments have
         been collected.

         (c) Notwithstanding subparagraphs 3(a) and 3(b) above, if the Escrow
         Agent is not in receipt of evidence of subscriptions accepted on or
         before the close of business on such date that is 120 days after
         commencement of the Offering (the Company will notify the Escrow Agent
         of the commencement date of the Offering) (the "Initial Escrow
         Period"), and instruments of payment dated not later than that date,
         for the purchase of Stock providing for total purchase proceeds (from
         all sources other than Pennsylvania Investors) that equal or exceed the
         Pennsylvania Required Capital, the Escrow Agent shall promptly notify
         the Company. Thereafter, the Company shall send to each Pennsylvania
         Investor by certified mail within ten (10) calendar days after the end
         of the Initial Escrow period a notification in the form of Exhibit A.
         If, pursuant to such notification, a Pennsylvania Investor requests the
         return of his or her subscription funds within ten (10) calendar days
         after receipt of the notification (the "Request Period") and the Escrow
         Agent is not in possession of an executed IRS form W-9, the Company
         shall provide the Escrow Agent with an executed IRS Form W-9 from each
         such Pennsylvania Investor within ten (10) calendar days after
         receiving notice from such Pennsylvania Investor. The Escrow Agent
         shall promptly refund directly to each Pennsylvania Investor the
         collected funds deposited in the Pennsylvania Escrow Account on behalf
         of such Pennsylvania Investor, or shall return the instruments of
         payment delivered, but not yet processed for collection prior to such
         time, to the address provided by the Dealer Manager or the Company,
         together with interest income in the amounts calculated pursuant to
         paragraph 7. If an executed IRS Form W-9 is not received for such
         Pennsylvania Investor within ten (10) calendar days, the Escrow Agent
         shall thereupon remit an amount to such Pennsylvania Investor in
         accordance with the provisions hereof, withholding thirty percent (30%)
         of any interest income earned on subscription proceeds (determined in
         accordance with paragraph 7) attributable to such Pennsylvania Investor
         for whom the Escrow Agent does not possess an executed IRS Form W-9.
         However, the Escrow Agent shall not be required to remit such payments
         until funds represented by such payments have been collected by the
         Escrow Agent.

         (d) The subscription funds of Pennsylvania Investors who do not request
         the return of their subscription funds within the Request Period shall
         remain in the Pennsylvania Escrow Account for successive 120-day escrow
         periods (a "Successive Escrow Period"), each commencing automatically
         upon the termination of the prior Successive Escrow Period, and the
         Company and Escrow Agent shall follow the notification and payment
         procedure set forth in subparagraph 3(c) above with respect to the
         Initial Escrow Period for each Successive Escrow Period until the
         occurrence of the earliest of (i) the Expiration Date, (ii) the receipt
         and acceptance by the Company of subscriptions for the purchase of
         Stock with total collected funds that equal or exceed the Pennsylvania
         Required Capital and the disbursement of the

                                       3
<PAGE>

         Pennsylvania Escrow Account on the terms specified herein, or (iii) all
         funds held in the Pennsylvania Escrow Account having been returned to
         the Pennsylvania Investors in accordance with the provisions hereof.

         (e) If the Company rejects any subscription for which the Escrow Agent
         has collected funds, the Escrow Agent shall, upon the written request
         of the Company, promptly issue a refund to the rejected Subscriber. If
         the Company rejects any subscription for which the Escrow Agent has not
         yet collected funds but has submitted the Subscriber's check for
         collection, the Escrow Agent shall promptly return the funds in the
         amount of the Subscriber's check to the rejected Subscriber after such
         funds have been collected. If the Escrow Agent has not yet submitted a
         rejected Subscriber's check for collection, the Escrow Agent shall
         promptly remit the Subscriber's check directly to the Subscriber.

         (f) At any time after funds are disbursed upon the Company's acceptance
         of subscriptions pursuant to subparagraph 3(a) above on the tenth
         (10th) day following the date of such acceptance, the Escrow Agent
         shall promptly provide directly to each Subscriber the amount of the
         interest payable to the Subscribers; provided that the Escrow Agent is
         in possession of such Subscriber's executed IRS Form W-9. In the event,
         the Escrow Agent is not in possession of an executed IRS Form W-9 from
         any Subscriber, the Company shall provide the Escrow Agent with an
         executed IRS Form W-9 from such Subscriber within ten (10) calendar
         days after acceptance of such subscription. In the event an executed
         IRS Form W-9 is not received for each Subscriber within such period,
         the Escrow Agent shall remit an amount to the Subscribers in accordance
         with the provisions hereof, withholding thirty percent (30%) of any
         interest income on subscription proceeds (determined in accordance with
         paragraph 7) attributable to those Subscribers for whom the Escrow
         Agent does not possess an executed IRS Form W-9. However, the Escrow
         Agent shall not be required to remit any payments until funds
         represented by such payments have been collected by the Escrow Agent.
         The forgoing notwithstanding, interest, if any, earned on accepted
         subscription proceeds will be payable to a Subscriber only if the
         Subscriber's funds have been held in escrow by the Escrow Agent for at
         least 35 days; interest, if any, earned on accepted subscription
         proceeds of Subscribers' funds held less than 35 days will be payable
         to the Company.

4. The Escrow Agent shall report to the Company weekly on the account balances
in the Escrow Account, the Pennsylvania Escrow Account, and the New York Escrow
Account and the activity in each account since the last report.

5. Prior to the disbursement of funds deposited in the Escrow Account, the
Pennsylvania Escrow Account, or the New York Escrow Account in accordance with
the provisions of paragraph 3 hereof, the Escrow Agent shall invest all of the
funds deposited as well as earnings and interest derived therefrom in the Escrow
Account, the Pennsylvania Escrow Account, and the New York Escrow Account, as
applicable, in the "Short-Term Investments" specified below. In the event that
instruments of payment are returned for nonpayment, the Escrow Agent is
authorized to debit the Escrow Account, the Pennsylvania Escrow Account, or the
New York Escrow Account, as applicable, in accordance with paragraph 2 hereof.

         "Short-Term Investments" include obligations of, or obligations
guaranteed by, the United States government or bank money-market accounts or
certificates of deposit of national or state banks that have deposits insured by
the Federal Deposit Insurance Corporation (including certificates of deposit of
any bank acting as a depository or custodian for any such funds) which can be
readily sold or otherwise disposed of for cash without any disposition of the
offering proceeds invested.

The following securities are not permissible investments:

         (a)      money market mutual funds;
         (b)      corporate equity or debt securities;
         (c)      repurchase agreements;
         (d)      bankers' acceptances;
         (e)      commercial paper; and
         (f)      municipal securities.

                                       4
<PAGE>

The Escrow Agent shall invest the funds deposited in the Escrow Account, the
Pennsylvania Escrow Account, and the New York Escrow Account in the arrangements
provided in Exhibit C attached hereto.

6. The Escrow Agent is entitled to rely upon written instructions received from
the Company, unless the Escrow Agent has actual knowledge that such instructions
are not valid or genuine; provided that, if in the Escrow Agent's opinion, any
instructions from the Company are unclear, the Escrow Agent may request
clarification from the Company prior to taking any action, and if such
instructions continue to be unclear, the Escrow Agent may rely upon written
instructions from the Company's legal counsel in distributing or continuing to
hold any funds. However, the Escrow Agent shall not be required to disburse any
funds attributable to instruments of payment which have not been processed for
collection, until such funds are collected and then shall disburse such funds in
compliance with the disbursement instructions from the Company.

7. If the Offering terminates prior to receipt of the Required Capital or one or
more Pennsylvania Investors elects to have his or her subscription returned in
accordance with paragraph 3, interest income earned on subscription proceeds
deposited in the Escrow Account (the "Escrow Income"), the Pennsylvania Escrow
Account (the "Pennsylvania Escrow Income"), and the New York Escrow Account (the
"New York Escrow Income") shall be remitted to Subscribers in accordance with
paragraph 3 and without any deductions for escrow expenses. Each Subscriber's
pro rata portion of Escrow Income, Pennsylvania Escrow Income, or New York
Escrow Income shall be determined as follows: the total amount of Escrow Income
(or Pennsylvania Escrow Income or New York Escrow Income, as appropriate) shall
be multiplied by a fraction, (i) the numerator of which is determined by
multiplying the number of shares of Stock purchased by said Subscriber times the
number of days said Subscriber's proceeds are held in the Escrow Account, the
Pennsylvania Escrow Account, or the New York Escrow Account, as applicable,
prior to the date of disbursement, and (ii) the denominator of which is the
total of the numerators for all such Subscribers in such account. The Company
shall reimburse the Escrow Agent for all escrow expenses. The Escrow Agent shall
remit all such Escrow Income, Pennsylvania Escrow Income, and New York Escrow
Income in accordance with paragraph 3. Upon receiving the Required Capital and
if the Company chooses to leave the Escrow Account open after receiving the
Required Capital than it shall make regular acceptances of subscriptions
therein, but no less frequently than monthly, and the Escrow Income from the
last such acceptance shall be calculated and remitted to the Subscribers as set
forth above as of the day of such acceptance.

8. The Escrow Agent shall receive compensation as set forth in Exhibit B
attached hereto.

9. In performing any of its duties hereunder, the Escrow Agent shall not incur
any liability to anyone for any damages, losses, or expenses, except for willful
misconduct, breach of trust, or gross negligence. Accordingly, the Escrow Agent
shall not incur any such liability with respect to any action taken or omitted
(a) in good faith upon advice of the Escrow Agent's counsel given with respect
to any questions relating to the Escrow Agent duties and responsibilities under
this Agreement, or (b) in reliance upon any instrument, including any written
instrument or instruction provided for in this Agreement, not only as to its due
execution and validity and effectiveness of its provisions but also as to the
truth and accuracy of information contained therein, which the Escrow Agent
shall in good faith believe to be genuine, to have been signed or presented by a
proper person or persons and to conform to the provisions of this Agreement.

10. The Company hereby agrees to indemnify and hold the Escrow Agent harmless
against any and all losses, claims, damages, liabilities, and expenses,
including reasonable attorneys' fees and disbursements, that may be imposed on
or incurred by the Escrow Agent in connection with acceptance of appointment as
the Escrow Agent hereunder, or the performance of the duties hereunder,
including any litigation arising from this Agreement or involving the subject
matter hereof, except where such losses, claims, damages, liabilities, and
expenses result from willful misconduct, breach of trust, or gross negligence.

11. In the event of a dispute between the parties hereto sufficient in the
Escrow Agent's discretion to justify doing so, the Escrow Agent shall be
entitled to tender into the registry or custody of any court of competent
jurisdiction all money or property in its hands under this Agreement, together
with such legal pleadings as deemed appropriate, and thereupon be discharged
from all further duties and liabilities under this Agreement. In the event of
any uncertainty as to the duties hereunder, the Escrow Agent may refuse to act
under the provisions of this Agreement pending order of a court of competent
jurisdiction and shall have no liability to the Company or to any other person
as a result of such action. Any such legal action may be brought in such court
as the Escrow Agent

                                       5
<PAGE>

shall determine to have jurisdiction thereof. The filing of any such legal
proceedings shall not deprive the Escrow Agent of its compensation earned prior
to such filing.

12. All communications and notices required or permitted by this Agreement shall
be in writing and shall be deemed to have been given when delivered personally
or by messenger or by overnight delivery service or when received via telecopy
or other electronic transmission, in all cases addressed to the person for whom
it is intended at such person's address set forth below or to such other address
as a party shall have designated by notice in writing to the other party in the
manner provided by this paragraph:

         (a)      if to the Company:

                  Behringer Harvard REIT I, Inc.
                  1323 North Stemmons Freeway, Suite 210
                  Dallas, Texas 75207
                  Fax:  (214) 655-1610
                  Attention:  President and Chief Executive Officer

         (b)      if to the Dealer Manager:

                  Behringer Securities LP
                  1323 North Stemmons Freeway, Suite 202
                  Dallas, Texas 75207
                  Fax:  (214) 655-6801
                  Attention:  Chief Operating Officer of Harvard Property Trust,
                              LLC, General Partner

         (c)      if to the Escrow Agent:

                  Wells Fargo Bank Iowa, National Association
                  666 Walnut
                  N8200-034
                  Corporate Trust Services, PFG
                  Des Moines, IA 50309
                  Fax: (515) 245-3337
                  Attention:  M.J. Dolan

Each party hereto may, from time to time, change the address to which notices to
it are to be delivered or mailed hereunder by notice in accordance herewith to
the other parties.

13. This Agreement shall be governed by the laws of the State of Texas as to
both interpretation and performance without regard to the conflict of laws rules
thereof.

14. The provisions of this Agreement shall be binding upon the legal
representatives, successors, and assigns of the parties hereto.

15. The Company and the Dealer Manager hereby acknowledge that Wells Fargo Bank
Iowa, N.A. is serving as Escrow Agent only for the limited purposes herein set
forth, and hereby agree that they will not represent or imply that, by serving
as Escrow Agent hereunder or otherwise, have investigated the desirability or
advisability of investment in the Company or have approved, endorsed, or passed
upon the merits of the Stock or the Company, nor shall they use the name of the
Escrow Agent in any manner whatsoever in connection with the offer or sale of
the Stock other than by acknowledgment that is has agreed to serve as Escrow
Agent for the limited purposes herein set forth.

16. This Agreement and any amendment hereto may be executed by the parties
hereto in one or more counterparts, each of which shall be deemed to be an
original.

                                       6
<PAGE>

17. Except as otherwise required for subscription funds received from
Pennsylvania Investors and New York Investors as provided herein, in the event
that the Escrow Agent receive instruments of payment after the Required Capital
has been received and the proceeds of the Escrow Account have been distributed
to the Company, the Escrow Agent is hereby authorized to deposit such
instruments of payment within one (1) business day to any deposit account as
directed by the Company. The application of said funds into a deposit account or
to forward such funds directly to the Company, in other case directed by the
Company shall be a full acquittance to the Escrow Agent, who shall not be
responsible for the application of said funds thereafter.

18. The Escrow Agent shall be bound only by the terms of this Escrow Agreement
and shall not be bound by or incur any liability with respect to any other
agreements or understanding between any other parties, whether or not the Escrow
Agent has knowledge of any such agreements or understandings.

19. Indemnification provisions set forth herein shall survive the termination of
this Agreement.

20. In the event that any part of this Agreement is declared by any court or
other judicial or administrative body to be null, void, or unenforceable, said
provision shall survive to the extent it is not so declared, and all of the
other provisions of this Agreement shall remain in full force and effect.

21. Unless otherwise provided in this Agreement, final termination of this
Escrow Agreement shall occur on the date that all funds held in the Escrow
Account are distributed either (a) to the Company or to Subscribers pursuant to
paragraph 3 hereof or (b) to a successor escrow agent upon written instructions
from the Company.

22. The Escrow Agent has no responsibility for accepting, rejecting, or
approving subscriptions.

23. This Agreement shall not be modified, revoked, released, or terminated
unless reduced to writing and signed by all parties hereto, subject to the
following paragraph.

If, at any time, any attempt is made to modify this Agreement in a manner that
would increase the duties and responsibilities of the Escrow Agent or to modify
this Agreement in any manner which the Escrow Agent shall deem undesirable, or
at any other time, the Escrow Agent may resign by providing written notice to
the Company and until (a) the acceptance by a successor escrow agent as shall be
appointed by the Company; or (b) thirty (30) days after such written notice has
been given, whichever occurs sooner, the Escrow Agent's only remaining
obligation shall be to perform its duties hereunder in accordance with the terms
of the Agreement.

24. The Escrow Agent may resign at any time from its obligations under this
Escrow Agreement by providing written notice to the Company. Such resignation
shall be effective on the date specified in such notice which shall be not less
than thirty (30) days after such written notice has been given. The Escrow Agent
shall have no responsibility for the appointment of a successor escrow agent.

25. The Escrow Agent may be removed for cause by the Company by written notice
to the Escrow Agent effective on the date specified in such written notice. The
removal of the Escrow Agent shall not deprive the Escrow Agent of its
compensation earned prior to such removal.

                            [Signature page follows]

                                       7
<PAGE>

Agreed to as of the ____ day of ________________, 2002.

                                        BEHRINGER HARVARD REIT I, INC.

                                        By:
                                            ------------------------------------
                                            Robert M. Behringer, President

                                        BEHRINGER SECURITIES LP

                                        By: Harvard Property Trust, LLC
                                            Its General Partner

                                        By:
                                            ------------------------------------
                                            Gerald J. Reihsen, III
                                            Chief Operating Officer

The terms and conditions contained above are hereby accepted and agreed to by:

WELLS FARGO BANK IOWA, NATIONAL ASSOCIATION

By:
    ------------------------------------

Name:
     -----------------------------------
Title:
      ----------------------------------

                                       8
<PAGE>

                                    EXHIBIT A

                   [Form of Notice to Pennsylvania Investors]

You have tendered a subscription to purchase shares of common stock of Behringer
Harvard REIT I, Inc. (the "Company"). Your subscription is currently being held
in escrow. The guidelines of the Pennsylvania Securities Commission do not
permit the Company to accept subscriptions from Pennsylvania residents until an
aggregate of $44,000,000 of gross offering proceeds have been received by the
Company. The Pennsylvania guidelines provide that until this minimum amount of
offering proceeds is received by the Company, every 120 days during the offering
period Pennsylvania Subscribers may request that their subscription be returned.

If you wish to continue your subscription in escrow until the Pennsylvania
minimum subscription amount is received, nothing further is required.

If you wish to terminate your subscription for the Company's common stock and
have your subscription returned please so indicate below, sign, date, and return
to the Escrow Agent, Wells Fargo Bank, at the address below.

I hereby terminate my prior subscription to purchase shares of common stock of
Behringer Harvard REIT I, Inc. and request the return of my subscription funds.
I certify to Behringer Harvard REIT I, Inc. that I am a resident of
Pennsylvania.

                                        Signature

                                        Signature:
                                                  ------------------------------

                                        Name:
                                             -----------------------------------
                                                    (please print)

                                        Date:
                                             -----------------------------------

Please send the subscription refund to:

-----------------------------------

-----------------------------------

-----------------------------------

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