Document:

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                                                                    EXHIBIT 10.5

                         BEHRINGER HARVARD REIT I, INC.
                     NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN
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                         BEHRINGER HARVARD REIT I, INC.
                     NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

                                   SECTION 1.
                                     PURPOSE

         The purpose of this Plan is to promote the interests of the Company by
providing the opportunity to purchase Shares to Directors in order to attract
and retain Directors by providing an incentive to work to increase the value of
Shares and a stake in the future of the Company which corresponds to the stake
of each of the Company's shareholders. The Plan provides for the grant of
Options to aid the Company in obtaining these goals.

                                   SECTION 2.
                                   DEFINITIONS

         Each term set forth in this Section shall have the meaning set forth
opposite such term for purposes of this Plan and any Option Agreements under
this Plan (unless noted otherwise), and for purposes of such definitions, the
singular shall include the plural and the plural shall include the singular, and
reference to one gender shall include the other gender. Note that some
definitions may not be used in this Plan, and may be inserted here solely for
possible use in Option Agreements issued under this Plan.

         2.1      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 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.

         2.2      BOARD means the Board of Directors of the Company.

         2.3      CAUSE shall mean an act or acts by a Director involving (a)
the use for profit or disclosure to unauthorized Persons of confidential
information or trade secrets of the Company, or Affiliate of the Company, (b)
the breach of any contract with the Company, or any Affiliate of the Company,
(c) the violation of any fiduciary obligation to the Company, or any Affiliate
of the Company, (d) the unlawful trading in the securities of the Company, or
any Affiliate of the Company, or of another corporation based on information
gained as a result of the performance of services for the Company, or any
Affiliate of the Company, (e) a felony conviction or the failure to contest
prosecution of a felony, or (f) willful misconduct, dishonesty, embezzlement,
fraud, deceit or civil rights violations, or other unlawful acts.

         2.4      CHANGE OF CONTROL means either of the following:

                  (a)      any transaction or series of transactions pursuant to
which the Company sells, transfers, leases, exchanges or disposes of
substantially all (i.e., at least eighty-five percent (85%)) of its assets for
cash or property, or for a combination of cash and property, or for other
consideration; or

                  (b)      any transaction pursuant to which Persons who are not
current shareholders of the Company acquire by merger, consolidation,
reorganization, division or other business combination or transaction, or by a
purchase of an interest in the Company, an interest in the Company so that after
such transaction, the shareholders of the Company immediately prior to such
transaction no longer have a controlling (i.e., 50% or more) voting interest in
the Company.

However, notwithstanding the foregoing, in no event shall any public offering of
the Company's stock constitute a Change of Control.

         2.5      CODE means the Internal Revenue Code of 1986, as amended.
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         2.6      COMMITTEE means any committee appointed by the Board to
administer the Plan, as specified in Section 5 hereof. Any such committee shall
be comprised entirely of Directors.

         2.7      COMMON Stock means the common stock of the Company.

         2.8      COMPANY means Behringer Harvard REIT I, Inc., a Maryland
corporation, and any successor to such organization.

         2.9      DIRECTOR means a member of the Board.

         2.10     EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended.

         2.11     EXERCISE PRICE means, with respect to an Option, the price
which shall be paid to purchase one (1) Share upon the exercise of such Option
granted under this Plan.

         2.12     FAIR MARKET VALUE of each Share on any date means the price
determined below as of the close of business on such date (provided, however, if
for any reason, the Fair Market Value per share cannot be ascertained or is
unavailable for such date, the Fair Market Value per share shall be determined
as of the nearest preceding date on which such Fair Market Value can be
ascertained):

                  (a)      If the shares of Common Stock are traded on any
national stock exchange, its Fair Market Value of a Share shall be the average
closing sale price for such shares on such exchange or system for the five
consecutive trading days ending on the date of such determination; or

                  (b)      If the shares of Common Stock are not listed on any
national stock exchange but are quoted on the National Market of the National
Association of Securities Dealers, Inc. Automated Quotation ("NASDAQ") System
the Fair Market Value of a Share shall be the average of the high "bid" and low
"ask" prices of a share of Common Stock as reflected on NASDAQ on the date of
such determination; or

                  (c)      If the shares of Common Stock are not traded or
listed as provided above the per share sales price of the Common Stock if there
is a current public offering of the Common Stock; or

                  (d)      the fair market value of a share of Common Stock as
determined by the Board.

         2.13     INSIDER means an individual who is, on the relevant date, an
officer, director or ten percent (10%) beneficial owner of any class of the
Company's equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act.

         2.14     OPTION means an option granted under this Plan to purchase
Shares which is not intended by the Company to satisfy the requirements of Code
Section 422.

         2.15     OPTION AGREEMENT means an agreement between the Company and
the recipient of an Option evidencing an award of an Option.

         2.16     OUTSIDE DIRECTOR means a Director who is not an employee of
the Company and who qualifies as a "non-employee director" under Rule
16b-3(b)(3) under the 1934 Act, as amended from time to time.

         2.17     PERSON means an individual, corporation, partnership, estate,
trust (including a trust qualified under Section 401(a) or 501(c)(17) of the
Code), a portion of a trust permanently set aside for or to be used exclusively
for the purposes described in Section 642(c) of the Code, association, private
foundation within the meaning of Section 509(a) of the Code, joint stock company
or other legal entity, any governmental body including any agency or political
subdivision thereof, and a "group" as that term is used for purposes of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended.

         2.18     PLAN means the Behringer Harvard REIT I, Inc. Non-Employee
Director Stock Option Plan, as may be amended from time to time.

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         2.19     SHARE means a share of the Common Stock of the Company.

                                   SECTION 3.
                            SHARES SUBJECT TO OPTIONS

         The total number of Shares that may be issued pursuant to Options under
this Plan shall not exceed one million (1,000,000), as adjusted pursuant to
Section 10. Such Shares shall be reserved, to the extent that the Company deems
appropriate, from authorized but unissued Shares, and from Shares which have
been reacquired by the Company. Furthermore, any Shares subject to an Option
which remain after the cancellation, expiration or exchange of such Option
thereafter shall again become available for use under this Plan.

                                   SECTION 4.
                                 EFFECTIVE DATE

         The effective date of this Plan, as documented hereby, shall be the
date it is adopted by the Board, as noted in resolutions effectuating such
adoption.

                                   SECTION 5.
                                 ADMINISTRATION

         5.1      GENERAL ADMINISTRATION. This Plan shall be administered by the
Board. The Board, acting in its absolute discretion, shall exercise such powers
and take such action as expressly called for under this Plan. The Board shall
have the power to interpret this Plan and, subject to the terms and provisions
of this Plan, to take such other action in the administration and operation of
the Plan as it deems equitable under the circumstances. The Board's actions
shall be binding on the Company, on each affected Director, and on each other
Person directly or indirectly affected by such actions.

         5.2      AUTHORITY OF THE BOARD. Except as limited by law or by the
Articles of Incorporation or Bylaws of the Company, and subject to the
provisions herein, the Board shall have full power to select eligible Directors
who shall participate in the Plan, to determine the sizes and types of Options
in a manner consistent with the Plan, to determine the terms and conditions of
Options in a manner consistent with the Plan, to construe and interpret the Plan
and any agreement or instrument entered into under the Plan, to establish, amend
or waive rules and regulations for the Plan's administration, and to amend the
terms and conditions of any outstanding Options as allowed under the Plan and
such Options. Further, the Board may make all other determinations which may be
necessary or advisable for the administration of the Plan.

         5.3      DELEGATION OF AUTHORITY. The Board may delegate its authority
under the Plan, in whole or in part, to a Committee appointed by the Board
consisting of not less than one (1) director. The members of the Committee shall
be appointed from time to time by, and shall serve at the discretion of, the
Board. The Committee shall act according to the policies and procedures set
forth in the Plan and to those policies and procedures established by the Board,
and the Committee shall have such powers and responsibilities as are set forth
by the Board. Reference to the Board in this Plan shall specifically include
reference to the Committee where the Board has delegated its authority to the
Committee, and any action by the Committee pursuant to a delegation of authority
by the Board shall be deemed an action by the Board under the Plan. With respect
to Committee appointments and composition, only a Committee comprised solely of
two (2) or more Outside Directors may grant Options to Insiders that will be
exempt from Section 16(b) of the Exchange Act. Notwithstanding the above, the
Board may assume the powers and responsibilities granted to the Committee at any
time, in whole or in part. Furthermore, notwithstanding the above, no decision
may be made by a member of a Committee which would affect only Options held by
such member or only Options held by such member and other members of such
Committee; however, the Board may make decisions which would affect Options held
by any member of the Board.

         5.4      DECISIONS BINDING. All determinations and decisions made by
the Board (or its delegate) pursuant to the provisions of this Plan and all
related orders and resolutions of the Board shall be final, conclusive and
binding on all Persons, including the Company, its stockholders, Directors, and
their estates and beneficiaries.

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         5.5      INDEMNIFICATION FOR DECISIONS. No member of the Board or the
Committee shall be liable for any action taken or determination made hereunder
in good faith. Service on the Committee shall constitute service as a director
of the Company so that the members of the Committee shall be entitled to
indemnification and reimbursement as directors of the Company pursuant to its
bylaws and applicable law. In addition, the members of the Board, Committee
shall be indemnified by the Company against (a) the reasonable expenses,
including attorneys' fees actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, to which they or any of them may
be a party by reason of any action taken or failure to act under or in
connection with the Plan, any Option granted hereunder, and (b) against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such individual is liable for gross negligence or misconduct in
the performance of his duties, provided that within sixty (60) days after
institution of any such action, suit or proceeding a Committee member or
delegatee shall in writing offer the Company the opportunity, at its own
expense, to handle and defend the same.

                                   SECTION 6.
                         ELIGIBILITY & TERMS OF OPTIONS

         6.1      DIRECTORS ELIGIBLE FOR GRANTS OF OPTIONS. The individuals
eligible to receive Options hereunder shall be solely those individuals who are
Directors and who are not employees of the Company or any Affiliate of the
Company. Such Directors may receive Options hereunder in accordance with the
provisions of Section 6.2 below.

         6.2      GRANT OF OPTIONS. The Board, in its absolute discretion, shall
grant Options under this Plan to those Directors who are eligible under Section
6.1 above (an "eligible Director") from time to time and shall have the right to
grant new Options in exchange for outstanding Options. Options shall be granted
to eligible Directors selected by the Board, and the Board shall be under no
obligation whatsoever to grant Options to all Directors, or to grant all Options
subject to the same terms and conditions. The number of Shares as to which an
Option shall be granted shall be determined by the Board in its sole discretion,
subject to the provisions of Section 3 as to the total number of Shares
available for grants under this Plan. However, notwithstanding anything in this
Plan to the contrary, in no event shall an Option be granted to a Director under
this Plan if the Shares available for purchase subject to such grant, when added
to all other Shares available for purchase and all other Shares purchased
pursuant to other Options issued under this Plan, would exceed ten percent (10%)
of the issued and outstanding Shares of the Company determined as of the date of
grant of such Option.

                                    SECTION 7
                                TERMS OF OPTIONS

         7.1      NECESSITY OF OPTION AGREEMENTS. Each Option shall be evidenced
by an Option Agreement executed by the Company and the recipient of the Option,
which shall incorporate such other terms and conditions as the Board, acting in
its absolute discretion, deems consistent with the terms of this Plan, and which
shall be in such form and contain such terms and conditions as the Board in its
discretion may, subject to the provisions of the Plan, from time to time
determine. The Board and/or the Company shall have complete discretion to modify
the terms and provisions of an Option in accordance with Section 12 of this
Plan.

         7.2      EXERCISE PRICE. Subject to adjustment in accordance with
Section 10 and the other provisions of this Section, the Exercise Price for each
Share subject to an Option shall be equal to $12.00 prior to the completion of
the Company's initial public offering of Common Stock, and thereafter, shall be
no less than one hundred twenty percent (120%) of the Fair Market Value of such
Share, and shall be set forth in the applicable Option Agreement.

         7.3      OPTION TERM. Each Option granted under this Plan shall be
exercisable in whole or in part at such time or times as set forth in the
related Option Agreement, but no Option Agreement shall:

                  (a)      make an Option exercisable before the date such
Option is granted; or

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                  (b)      make an Option exercisable after the earlier of:

                           (i)      the date such Option is exercised in full;

                           (ii)     the date which is the fifth (5th)
anniversary of the date such Option is granted;

                           (iii)    the date on which the Director ceases to be
a Director for Cause;

                           (iv)     three (3) months following the date on which
the Director ceases to be a Director (for any reason other than death or
disability or for Cause); or

                           (v)      one (1) year following the date on which the
Director ceases to be a Director because of death or disability.

An Option Agreement may provide for the exercise of an Option after the service
of a Director has terminated for any reason whatsoever, including death or
disability, as long as it is consistent with the above provisions. The
Director's rights, if any, upon termination of service will be set forth in the
applicable Option Agreement.

         7.4      PAYMENT. Options shall be exercised by the delivery of a
written notice of exercise to the Company, setting forth the number of Shares
with respect to which the Option is to be exercised accompanied by full payment
for the Shares. Payment for shares of Stock purchased pursuant to exercise of an
Option shall be made in cash or, unless the Option Agreement provides otherwise,
by delivery to the Company of a number of Shares which have been owned and
completely paid for by the holder for at least six (6) months prior to the date
of exercise (i.e., "mature shares" for accounting purposes) having an aggregate
Fair Market Value equal to the amount to be tendered, or a combination thereof.
However, notwithstanding the foregoing, with respect to any Option recipient who
is an Insider, a tender of shares or a cashless exercise must (1) have met the
requirements of an exemption under Rule 16b-3 promulgated under the Exchange
Act, or (2) be a subsequent transaction the terms of which were provided for in
a transaction initially meeting the requirements of an exemption under Rule
16b-3 promulgated under the Exchange Act. Unless the Option Agreement provides
otherwise, the foregoing exercise payment methods shall be subsequent
transactions approved by the original grant of an Option. Except as provided
below, payment shall be made at the time that the Option or any part thereof is
exercised, and no Shares shall be issued or delivered upon exercise of an Option
until full payment has been made by the Option holder. The holder of an Option,
as such, shall have none of the rights of a stockholder.

         7.5      CONDITIONS TO EXERCISE OF AN OPTION. Each Option granted under
the Plan shall vest and shall be exercisable at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Board shall
specify in the Option Agreement, subject to Section 7.3 above. The Board may
impose such restrictions on any Shares acquired pursuant to the exercise of an
Option as it may deem advisable, including, without limitation, vesting or
performance-based restrictions, rights of the Company to re-purchase Shares
acquired pursuant to the exercise of an Option, voting restrictions, investment
intent restrictions, restrictions on transfer, "first refusal" rights of the
Company to purchase Shares acquired pursuant to the exercise of an Option prior
to their sale to any other Person, "drag along" rights requiring the sale of
shares to a third party purchaser in certain circumstances, "lock up" type
restrictions in the case of an initial public offering of the Company's stock,
restrictions or limitations that would be applied to shareholders under any
applicable restriction agreement among the shareholders, and restrictions under
applicable federal securities laws, under the requirements of any stock exchange
or market upon which such Shares are then listed and/or traded, and/or under any
blue sky or state securities laws applicable to such Shares. Notwithstanding any
provision of this Plan or any Option Agreement to the contrary, in no event
shall any Option granted under this Plan be exercisable if such exercise would
jeopardize the status of the Company as a "real estate investment trust" as
defined in Code Section 856.

         7.6      TRANSFERABILITY OF OPTIONS. An Option shall not be
transferable or assignable except by will or by the laws of descent and
distribution, and, except as otherwise provided in the Option Agreement, an
Option may also be transferred by an Option holder as a bona fide gift (i) to
his spouse, lineal descendant or lineal ascendant, siblings and children by
adoption, (ii) to a trust for the benefit of one or more individuals described
in clause (i) and no other Persons, or (iii) to a partnership of which the only
partners are one or more individuals

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described in clause (i), in which case the transferee shall be subject to all
provisions of the Plan, the Option Agreement and other agreements with the
Option holder in connection with the exercise of the Option and purchase of
Shares. An Option shall be exercisable, during the Option holder's lifetime,
only by the Option holder; provided, however, that in the event the Option
holder is incapacitated and unable to exercise his or her Option, such Option
may be exercised by such Option holder's legal guardian, legal representative,
or other representative whom the Board deems appropriate based on applicable
facts and circumstances. The determination of incapacity of an Option holder and
the determination of the appropriate representative of the Option holder who
shall be able to exercise the Option if the Option holder is incapacitated shall
be determined by the Board in its sole and absolute discretion.

                                   SECTION 8.
                              SECURITIES REGULATION

         Each Option Agreement may provide that, upon the receipt of Shares as a
result of the exercise of an Option or otherwise, the Option holder shall, if so
requested by the Company, hold such Shares for investment and not with a view of
resale or distribution to the public and, if so requested by the Company, shall
deliver to the Company a written statement satisfactory to the Company to that
effect. Each Option Agreement may also provide that, if so requested by the
Company, the Option holder shall make a written representation to the Company
that he or she will not sell or offer to sell any of such Shares unless a
registration statement shall be in effect with respect to such Shares under the
Securities Act of 1933, as amended ("1933 Act"), and any applicable state
securities law or, unless he or she shall have furnished to the Company an
opinion, in form and substance satisfactory to the Company, of legal counsel
acceptable to the Company, that such registration is not required. Certificates
representing the Shares transferred upon the exercise of an Option granted under
this Plan may at the discretion of the Company bear a legend to the effect that
such Shares have not been registered under the 1933 Act or any applicable state
securities law and that such Shares may not be sold or offered for sale in the
absence of an effective registration statement as to such Shares under the 1933
Act and any applicable state securities law or an opinion, in form and substance
satisfactory to the Company, of legal counsel acceptable to the Company, that
such registration is not required.

                                   SECTION 9.
                                  LIFE OF PLAN

         No Option shall be granted under this Plan on or after the earlier of:

                  (a)      the tenth (10th) anniversary of the effective date of
this Plan (as determined under Section 4 of this Plan), in which event this Plan
otherwise thereafter shall continue in effect until all outstanding Options have
been exercised in full or no longer are exercisable, or

                  (b)      the date on which all of the Shares reserved under
Section 3 of this Plan have (as a result of the exercise of Options granted
under this Plan) been issued or no longer are available for use under this Plan,
in which event this Plan also shall terminate on such date.

                                   SECTION 10.
                                   ADJUSTMENT

         Notwithstanding anything in Section 12 to the contrary, the number of
Shares reserved under Section 3 of this Plan, the number of Shares subject to
Options granted under this Plan, and the Exercise Price of any Options, shall be
adjusted by the Board in an equitable manner to reflect any change in the
capitalization of the Company, including, but not limited to, such changes as
stock dividends or stock splits. Furthermore, the Board shall have the right to
adjust (in a manner which satisfies the requirements of Code Section 424(a)) the
number of Shares reserved under Section 3, and the number of Shares subject to
Options granted under this Plan, and the Exercise Price of any Options and the
specified exercise price of any Stock Appreciation Rights in the event of any
corporate transaction described in Code Section 424(a) which provides for the
substitution or assumption of such Options. If any adjustment under this Section
creates a fractional Share or a right to acquire a fractional Share, such
fractional Share shall be disregarded, and the number of Shares reserved under
this Plan and the number subject to any Options granted under this Plan shall be
the next lower number of Shares, rounding all fractions

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downward. An adjustment made under this Section by the Board shall be conclusive
and binding on all affected Persons and, further, shall not constitute an
increase in the number of Shares reserved under Section 3.

                                   SECTION 11.
                        CHANGE OF CONTROL OF THE COMPANY

         Except as otherwise provided in an Option Agreement, if a Change of
Control occurs, and if the agreements effectuating the Change of Control do not
provide for the assumption or substitution of all Options granted under this
Plan, with respect to any Option granted under this Plan which is not so assumed
or substituted (a "Non-Assumed Option"), the Board, in its sole and absolute
discretion, may, with respect to any or all of such Non-Assumed Options, take
any or all of the following actions to be effective as of the date of the Change
of Control (or as of any other date fixed by the Board occurring within the
thirty (30) day period immediately preceding the date of the Change of Control,
but only if such action remains contingent upon the effectuation of the Change
of Control) (such date referred to as the "Action Effective Date"):

                  (a)      Unilaterally cancel such Non-Assumed Option in
exchange for:

                           (i)      whole and/or fractional Shares (or for whole
         Shares and cash in lieu of any fractional Share) or whole and/or
         fractional shares of a successor (or for whole shares of a successor
         and cash in lieu of any fractional share) which, in the aggregate, are
         equal in value to the excess of the Fair Market Value of the Shares
         which could be purchased subject to such Non-Assumed Option determined
         as of the Action Effective Date (taking into account vesting) over the
         aggregate Exercise Price for such Shares; or

                           (ii)     cash or other property equal in value to the
         excess of the Fair Market Value of the Shares which could be purchased
         subject to such Non-Assumed Option determined as of the Action
         Effective Date (taking into account vesting) over the aggregate
         Exercise Price for such Shares; and/or.

                  (b)      Unilaterally cancel such Non-Assumed Option after
providing the holder of such Option with (1) an opportunity to exercise such
Non-Assumed Option to the extent vested within a specified period prior to the
date of the Change of Control, and (2) notice of such opportunity to exercise
prior to the commencement of such specified period.

However, notwithstanding the foregoing, to the extent that the recipient of
Non-Assumed Option is an Insider, payment of cash in lieu of whole or fractional
Shares or shares of a successor may only be made to the extent that such payment
(1) has met the requirements of an exemption under Rule 16b-3 promulgated under
the Exchange Act, or (2) is a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless an Option Agreement
provides otherwise, the payment of cash in lieu of whole or fractional Shares or
in lieu of whole or fractional shares of a successor shall be considered a
subsequent transaction approved by the original grant of an Option.

                                   SECTION 12.
                            AMENDMENT OR TERMINATION

         This Plan may be amended by the Board from time to time to the extent
that the Board deems necessary or appropriate; provided, however, no such
amendment shall be made absent the approval of the shareholders of the Company
(a) to increase the number of Shares reserved under Section 3, except as set
forth in Section 10 or pursuant to the provisions of Section 3, (b) to extend
the maximum life of the Plan under Section 9 or the maximum exercise period
under Section 7, (c) to decrease the minimum Exercise Price under Section 7, (d)
to change the number of Shares subject to Options under Section 6, or (e) to
change the designation of Directors eligible for Options under Section 6. The
Board also may suspend the granting of Options under this Plan at any time and
may terminate this Plan at any time. The Company shall have the right to modify,
amend or cancel any Option after it has been granted if (I) the modification,
amendment or cancellation does not diminish the rights or benefits of the Option
recipient under the Option, (II) the Option holder consents in writing to such
modification, amendment or cancellation, (III) there is a dissolution or
liquidation of the Company, (IV) this Plan and/or the Option Agreement expressly
provides for such modification,

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amendment or cancellation, or (V) the Company would otherwise have the right to
make such modification, amendment or cancellation by applicable law.

                                   SECTION 13.
                                  MISCELLANEOUS

         13.1     SHAREHOLDER RIGHTS. No Option holder shall have any rights as
a shareholder of the Company as a result of the grant of an Option to him or to
her under this Plan or his or her exercise of such Option pending the actual
delivery of Shares subject to such Option to such Option holder.

         13.2     NO GUARANTEE OF CONTINUED RELATIONSHIP. The grant of an Option
to an Option holder under this Plan shall not constitute a contract for services
and shall not confer on an Option holder any rights upon the termination of his
or her service relationship with the Company in addition to those rights, if
any, expressly set forth in the Option Agreement which evidences his or her
Option.

         13.3     WITHHOLDING. While it is not anticipated to be necessary, the
Company shall have the power and the right to deduct or withhold, or require an
Option holder to remit to the Company as a condition precedent for the
fulfillment of any Option, an amount sufficient to satisfy Federal, state and
local taxes, domestic or foreign, required by law or regulation to be withheld
with respect to any taxable event arising as a result of this Plan and/or any
action taken by an Option holder with respect to an Option. Whenever Shares are
to be issued to an Option holder upon exercise of an Option, the Company shall
have the right to require the Option holder to remit to the Company, as a
condition of exercise of the Option, an amount in cash (or, unless the Option
Agreement provides otherwise, in Shares) sufficient to satisfy federal, state
and local withholding tax requirements at the time of exercise. However,
notwithstanding the foregoing, to the extent that an Option holder is an
Insider, satisfaction of withholding requirements by having the Company withhold
Shares may only be made to the extent that such withholding of Shares (1) has
met the requirements of an exemption under Rule 16b-3 promulgated under the
Exchange Act, or (2) is a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless the Option Agreement
provides otherwise, the withholding of shares to satisfy federal, state and
local withholding tax requirements shall be a subsequent transaction approved by
the original grant of an Option. Notwithstanding the foregoing, in no event
shall payment of withholding taxes be made by a retention of Shares by the
Company unless the Company retains only Shares with a Fair Market Value equal to
the minimum amount of taxes required to be withheld.

         13.4     CONSTRUCTION. This Plan shall be construed under the laws of
the State of Maryland.

                                                                        926813v5

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                                                                    EXHIBIT 10.7

                         BEHRINGER HARVARD REIT I, INC.
                       NON-EMPLOYEE DIRECTOR WARRANT PLAN
<PAGE>
                         BEHRINGER HARVARD REIT I, INC.
                       NON-EMPLOYEE DIRECTOR WARRANT PLAN

                                   SECTION 1.
                                     PURPOSE

      The purpose of this Plan is to promote the interests of the Company by
encouraging non-employee Directors to purchase Shares by providing an incentive
to work to increase the value of Shares and a stake in the future of the Company
which corresponds to the stake of each of the Company's shareholders. The Plan
provides for the automatic grant of Warrants to aid the Company in obtaining
these goals.

                                   SECTION 2.
                                   DEFINITIONS

      Each term set forth in this Section shall have the meaning set forth
opposite such term for purposes of this Plan and any Warrant Agreements under
this Plan (unless noted otherwise), and for purposes of such definitions, the
singular shall include the plural and the plural shall include the singular, and
reference to one gender shall include the other gender. Note that some
definitions may not be used in this Plan, and may be inserted here solely for
possible use in Warrant Agreements issued under this Plan.

      2.1   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 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.

      2.2   BOARD means the Board of Directors of the Company.

      2.3   CAUSE shall mean an act or acts by a Director involving (a) the use
for profit or disclosure to unauthorized Persons of confidential information or
trade secrets of the Company, or any Affiliate of the Company, (b) the breach of
any contract with the Company, or any Affiliate of the Company, (c) the
violation of any fiduciary obligation to the Company, or any Affiliate of the
Company, (d) the unlawful trading in the securities of the Company, or any
Affiliate of the Company, or of another corporation based on information gained
as a result of the performance of services for the Company, or any Affiliate of
the Company, (e) a felony conviction or the failure to contest prosecution of a
felony, or (f) willful misconduct, dishonesty, embezzlement, fraud, deceit or
civil rights violations, or other unlawful acts.

      2.4   CHANGE OF CONTROL means either of the following:

            (a)   any transaction or series of transactions pursuant to which
the Company sells, transfers, leases, exchanges or disposes of substantially all
(i.e., at least eighty-five percent (85%)) of its assets for cash or property,
or for a combination of cash and property, or for other consideration; or

            (b)   any transaction pursuant to which Persons who are not current
shareholders of the Company acquire by merger, consolidation, reorganization,
division or other business combination or transaction, or by a purchase of an
interest in the Company, an interest in the Company so that after such
transaction, the shareholders of the Company immediately prior to such
transaction no longer have a controlling (i.e., 50% or more) voting interest in
the Company.

However, notwithstanding the foregoing, in no event shall any public offering of
the Company's stock constitute a Change of Control.

      2.5   CODE means the Internal Revenue Code of 1986, as amended.
<PAGE>
      2.6   COMMITTEE means any committee appointed by the Board to administer
the Plan, as specified in Section 5 hereof. Any such committee shall be
comprised entirely of Directors.

      2.7   COMMON STOCK means the common stock of the Company.

      2.8   COMPANY means Behringer Harvard REIT I, Inc., a Maryland
corporation, and any successor to such organization.

      2.9   DIRECTOR means a member of the Board.

      2.10  EXCHANGE ACT means the Securities Exchange Act of 1934, as amended.

      2.11  EXERCISE PRICE means, with respect to a Warrant, the price which
shall be paid to purchase one (1) Share upon the exercise of such Warrant
granted under this Plan.

      2.12  FAIR MARKET VALUE of each Share on any date means the price
determined below as of the close of business on such date (provided, however, if
for any reason, the Fair Market Value per share cannot be ascertained or is
unavailable for such date, the Fair Market Value per share shall be determined
as of the nearest preceding date on which such Fair Market Value can be
ascertained):

            (a)   If the shares of Common Stock are traded on any national stock
exchange, its Fair Market Value of a Share shall be the average closing sale
price for such shares on such exchange or system for the five consecutive
trading days ending on the date of such determination; or

            (b)   If the shares of Common Stock are not listed on any national
stock exchange but are quoted on the National Market of the National Association
of Securities Dealers, Inc. Automated Quotation ("NASDAQ") System the Fair
Market Value of a Share shall be the average of the high "bid" and low "ask"
prices of a share of Common Stock as reflected on NASDAQ on the date of such
determination; or

            (c)   If the shares of Common Stock are not traded or listed as
provided above the per share sales price of the Common Stock if there is a
current public offering of the Common Stock; or

            (d)   the fair market value of a shares of Common Stock as
determined by the Board.

      2.13  INSIDER means an individual who is, on the relevant date, an
officer, director or ten percent (10%) beneficial owner of any class of the
Company's equity securities that is registered pursuant to Section 12 of the
Exchange Act, all as defined under Section 16 of the Exchange Act.

      2.14  OUTSIDE DIRECTOR means a Director who is not an employee of the
Company and who qualifies as a "non-employee director" under Rule 16b-3(b)(3)
under the 1934 Act, as amended from time to time.

      2.15  PERSON means an individual, corporation, partnership, estate, trust
(including a trust qualified under Section 401(a) or 501(c)(17) of the Code), a
portion of a trust permanently set aside for or to be used exclusively for the
purposes described in Section 642(c) of the Code, association, private
foundation within the meaning of Section 509(a) of the Code, joint stock company
or other legal entity, any governmental body including any agency or political
subdivision thereof, and a "group" as that term is used for purposes of Section
13(d)(3) of the Securities Exchange Act of 1934, as amended.

      2.16  PLAN means the Behringer Harvard REIT I, Inc. Director Warrant Plan,
as may be amended from time to time.

      2.17  PLAN PERIOD means the period beginning on the effective date of this
Plan and continuing until the earlier to occur of (1) the termination of this
Plan, or (2) 5:00 p.m. EDST on the date of listing of the Shares on a national
securities exchange or NASDAQ.

      2.18  SHARE means a share of the Common Stock of the Company.

              Behringer Harvard Reit I, Inc. Director Warrant Plan
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      2.19  WARRANT means a warrant granted under this Plan to purchase Shares
which is not intended by the Company to satisfy the requirements of Code
Section 422.

      2.20  WARRANT AGREEMENT means an agreement between the Company and the
recipient of a Warrant evidencing an award of a Warrant. The form of the Warrant
Agreement is attached hereto.

                                   SECTION 3.
                           SHARES SUBJECT TO WARRANTS

      The total number of Shares that may be issued pursuant to Warrants under
this Plan shall not exceed one million (1,000,000), as adjusted pursuant to
Section 10. Such Shares shall be reserved, to the extent that the Company deems
appropriate, from authorized but unissued Shares, and from Shares which have
been reacquired by the Company. Furthermore, any Shares subject to a Warrant
which remain after the cancellation, expiration or exchange of such Warrant
thereafter shall again become available for use under this Plan.

                                   SECTION 4.
                                 EFFECTIVE DATE

      The effective date of this Plan, as documented hereby, shall be the date
it is adopted by the Board, as noted in resolutions effectuating such adoption.

                                   SECTION 5.
                                 ADMINISTRATION

      5.1   GENERAL ADMINISTRATION. This Plan shall be administered by the
Board. The Board, acting in its absolute discretion, shall exercise such powers
and take such action as expressly called for under this Plan. The Board shall
have the power to interpret this Plan and, subject to the terms and provisions
of this Plan, to take such other action in the administration and operation of
the Plan as it deems equitable under the circumstances. The Board's actions
shall be binding on the Company, on each affected Director, and on each other
Person directly or indirectly affected by such actions.

      5.2   AUTHORITY OF THE BOARD. Except as limited by law or by the Articles
of Incorporation or Bylaws of the Company, and subject to the provisions herein,
the Board shall have full power to determine the terms and conditions of
Warrants in a manner consistent with the Plan, to construe and interpret the
Plan and any agreement or instrument entered into under the Plan, to establish,
amend or waive rules and regulations for the Plan's administration, and to amend
the terms and conditions of any outstanding Warrants as allowed under the Plan
and such Warrants. Further, the Board may make all other determinations which
may be necessary or advisable for the administration of the Plan.

      5.3   DELEGATION OF AUTHORITY. The Board may delegate its authority under
the Plan, in whole or in part, to a Committee appointed by the Board consisting
of not less than one (1) director. The members of the Committee shall be
appointed from time to time by, and shall serve at the discretion of, the Board.
The Committee shall act according to the policies and procedures set forth in
the Plan and to those policies and procedures established by the Board, and the
Committee shall have such powers and responsibilities as are set forth by the
Board. Reference to the Board in this Plan shall specifically include reference
to the Committee where the Board has delegated its authority to the Committee,
and any action by the Committee pursuant to a delegation of authority by the
Board shall be deemed an action by the Board under the Plan. With respect to
Committee appointments and composition, only a Committee comprised solely of two
(2) or more Outside Directors may grant Warrants to Insiders that will be exempt
from Section 16(b) of the Exchange Act. Notwithstanding the above, the Board may
assume the powers and responsibilities granted to the Committee at any time, in
whole or in part. Furthermore, notwithstanding the above, no decision may be
made by a member of a Committee which would affect only Warrants held by such
member or only Warrants held by such member and other members of such Committee;
however, the Board may make decisions which would affect Warrants held by any
member of the Board.

      5.4   DECISIONS BINDING. All determinations and decisions made by the
Board (or its delegate) pursuant to the provisions of this Plan and all related
orders and resolutions of the Board shall be final,

              Behringer Harvard Reit I, Inc. Director Warrant Plan
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conclusive and binding on all Persons, including the Company, its stockholders,
Directors, and their estates and beneficiaries.

      5.5   INDEMNIFICATION FOR DECISIONS. No member of the Board or the
Committee shall be liable for any action taken or determination made hereunder
in good faith. Service on the Committee shall constitute service as a director
of the Company so that the members of the Committee shall be entitled to
indemnification and reimbursement as directors of the Company pursuant to its
bylaws and applicable law. In addition, the members of the Board, Committee
shall be indemnified by the Company against (a) the reasonable expenses,
including attorneys' fees actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, to which they or any of them may
be a party by reason of any action taken or failure to act under or in
connection with the Plan, any Warrant granted hereunder, and (b) against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such individual is liable for gross negligence or misconduct in
the performance of his duties, provided that within sixty (60) days after
institution of any such action, suit or proceeding a Committee member or
delegatee shall in writing offer the Company the opportunity, at its own
expense, to handle and defend the same.

                                   SECTION 6.
                         ELIGIBILITY & GRANT OF WARRANTS

      6.1   DIRECTORS ELIGIBLE FOR GRANTS OF WARRANTS. The individuals eligible
to receive Warrants hereunder shall be solely those individuals who are
Directors and who are not employees of the Company or any Affiliate of the
Company. Such Directors shall automatically receive Warrants hereunder in
accordance with the provisions of Section 6.2 below.

      6.2   GRANT OF WARRANTS. During the Plan Period, those Directors who are
eligible under Section 6.1 above and who purchase at least 25 Shares as of any
date during such Plan Period shall automatically be granted a Warrant on such
date of purchase entitling such Director to purchase one (1) Share for every
twenty-five (25) Shares such Director has purchased on such Purchase Date. The
terms and provisions of such Warrants shall be determined under Section 7 below.

                                   SECTION 7.
                                TERMS OF WARRANTS

      7.1   WARRANT AGREEMENTS. Each Warrant shall be evidenced by a Warrant
Agreement executed by the Company and the recipient of the Warrant, which shall
incorporate such other terms and conditions as the Board, acting in its absolute
discretion, deems consistent with the terms of this Plan, and which shall be in
such form and contain such terms and conditions as the Board in its discretion
may, subject to the provisions of the Plan, from time to time determine. The
Board and/or the Company shall have complete discretion to modify the terms and
provisions of a Warrant in accordance with Section 12 of this Plan.

      7.2   EXERCISE PRICE. Subject to adjustment in accordance with Section 10
and the other provisions of this Section, the Exercise Price for each Share
subject to a Warrant shall be equal to $12.00 prior to the completion of the
initial public offering of the Common Stock, and thereafter, shall be equal to
one hundred twenty percent (120%) of the Fair Market Value of such Share, and
shall be set forth in the applicable Warrant Agreement.

      7.3   WARRANT TERM. Each Warrant granted under this Plan shall be
exercisable in whole or in part at such time or times as set forth in the
related Warrant Agreement, but no Warrant Agreement shall:

            (a)   make a Warrant exercisable before the date such Warrant is
granted; or

            (b)   make a Warrant exercisable after the earlier of:

                  (i)   the date such Warrant is exercised in full; or

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                  (ii)  the date which is the fifth (5th) anniversary of the
date such Warrant is granted;

                  (iii) the date on which the Director ceases to be a Director
for Cause; or

                  (iv)  one (1) year following the date on which the Director
ceases to be a Director for any reason other than Cause (including death or
disability).

A Warrant Agreement may provide for the exercise of a Warrant after the service
of a Director has terminated for any reason whatsoever, including death or
disability, as long as it is consistent with the above provisions. The
Director's rights, if any, upon termination of service will be set forth in the
applicable Warrant Agreement; or

      7.4   PAYMENT. Warrants shall be exercised by the delivery of a written
notice of exercise to the Company, setting forth the number of Shares with
respect to which the Warrant is to be exercised accompanied by full payment for
the Shares. Payment for shares of Stock purchased pursuant to exercise of a
Warrant shall be made in cash or, unless the Warrant Agreement provides
otherwise, by delivery to the Company of a number of Shares which have been
owned and completely paid for by the holder for at least six (6) months prior to
the date of exercise (i.e., "mature shares" for accounting purposes) having an
aggregate Fair Market Value equal to the amount to be tendered, or a combination
thereof. However, notwithstanding the foregoing, with respect to any Warrant
recipient who is an Insider, a tender of shares or a cashless exercise must (1)
have met the requirements of an exemption under Rule 16b-3 promulgated under the
Exchange Act, or (2) be a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless the Warrant
Agreement provides otherwise, the foregoing exercise payment methods shall be
subsequent transactions approved by the original grant of a Warrant. Except as
provided below, payment shall be made at the time that the Warrant or any part
thereof is exercised, and no Shares shall be issued or delivered upon exercise
of a Warrant until full payment has been made by the Warrant holder. The holder
of a Warrant, as such, shall have none of the rights of a stockholder.

      7.5   CONDITIONS TO EXERCISE OF A WARRANT. Each Warrant granted under the
Plan shall vest and shall be exercisable at such time or times, or upon the
occurrence of such event or events, and in such amounts, as the Board shall
specify in the Warrant Agreement, subject to Section 7.3 above. The Board may
impose such restrictions on any Shares acquired pursuant to the exercise of a
Warrant as it may deem advisable, including, without limitation, vesting or
performance-based restrictions, rights of the Company to re-purchase Shares
acquired pursuant to the exercise of a Warrant, voting restrictions, investment
intent restrictions, restrictions on transfer, "first refusal" rights of the
Company to purchase Shares acquired pursuant to the exercise of a Warrant prior
to their sale to any other Person, "drag along" rights requiring the sale of
shares to a third party purchaser in certain circumstances, "lock up" type
restrictions in the case of an initial public offering of the Company's stock,
restrictions or limitations that would be applied to shareholders under any
applicable restriction agreement among the shareholders, and restrictions under
applicable federal securities laws, under the requirements of any stock exchange
or market upon which such Shares are then listed and/or traded, and/or under any
blue sky or state securities laws applicable to such Shares. Notwithstanding any
provision of this Plan or any Warrant Agreement to the contrary, in no event
shall any Warrant granted under this Plan be exercisable if such exercise would
jeopardize the status of the Company as a "real estate investment trust" as
defined in Code Section 856.

      7.6   TRANSFERABILITY OF WARRANTS. A Warrant shall not be transferable or
assignable except by will or by the laws of descent and distribution, and,
except as otherwise provided in the Warrant Agreement, a Warrant may also be
transferred by a Warrant holder as a bona fide gift (i) to his spouse, lineal
descendant or lineal ascendant, siblings and children by adoption, (ii) to a
trust for the benefit of one or more individuals described in clause (i) and no
other Persons, or (iii) to a partnership of which the only partners are one or
more individuals described in clause (i), in which case the transferee shall be
subject to all provisions of the Plan, the Warrant Agreement and other
agreements with the Warrant holder in connection with the exercise of the
Warrant and purchase of Shares. A Warrant shall be exercisable, during the
Warrant holder's lifetime, only by the Warrant holder; provided, however, that
in the event the Warrant holder is incapacitated and unable to exercise his or
her Warrant, such Warrant may be exercised by such Warrant holder's legal
guardian, legal representative, or other representative whom the Board deems
appropriate based on applicable facts and circumstances. The determination of
incapacity of a Warrant holder and the determination of the appropriate

              Behringer Harvard Reit I, Inc. Director Warrant Plan
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representative of the Warrant holder who shall be able to exercise the Warrant
if the Warrant holder is incapacitated shall be determined by the Board in its
sole and absolute discretion.

                                   SECTION 8.
                              SECURITIES REGULATION

      Each Warrant Agreement may provide that, upon the receipt of Shares as a
result of the exercise of a Warrant or otherwise, the Warrant holder shall, if
so requested by the Company, hold such Shares for investment and not with a view
of resale or distribution to the public and, if so requested by the Company,
shall deliver to the Company a written statement satisfactory to the Company to
that effect. Each Warrant Agreement may also provide that, if so requested by
the Company, the Warrant holder shall make a written representation to the
Company that he or she will not sell or offer to sell any of such Shares unless
a registration statement shall be in effect with respect to such Shares under
the Securities Act of 1933, as amended ("1933 Act"), and any applicable state
securities law or, unless he or she shall have furnished to the Company an
opinion, in form and substance satisfactory to the Company, of legal counsel
acceptable to the Company, that such registration is not required. Certificates
representing the Shares transferred upon the exercise of a Warrant granted under
this Plan may at the discretion of the Company bear a legend to the effect that
such Shares have not been registered under the 1933 Act or any applicable state
securities law and that such Shares may not be sold or offered for sale in the
absence of an effective registration statement as to such Shares under the 1933
Act and any applicable state securities law or an opinion, in form and substance
satisfactory to the Company, of legal counsel acceptable to the Company, that
such registration is not required.

                                   SECTION 9.
                                  LIFE OF PLAN

      No Warrant shall be granted under this Plan on or after the earlier of:

            (a)   the tenth (10th) anniversary of the effective date of this
Plan (as determined under Section 4 of this Plan), in which event this Plan
otherwise thereafter shall continue in effect until all outstanding Warrants
have been exercised in full or no longer are exercisable, or

            (b)   the date on which all of the Shares reserved under Section 3
of this Plan have (as a result of the exercise of Warrants granted under this
Plan) been issued or no longer are available for use under this Plan, in which
event this Plan also shall terminate on such date.

                                   SECTION 10.
                                   ADJUSTMENT

      Notwithstanding anything in Section 12 to the contrary, the number of
Shares reserved under Section 3 of this Plan, the number of Shares subject to
Warrants granted under this Plan, the number of Shares to be granted pursuant to
Section 6 of this Plan, and the Exercise Price of any Warrants, shall be
adjusted by the Board in an equitable manner to reflect any change in the
capitalization of the Company, including, but not limited to, such changes as
stock dividends or stock splits. Furthermore, the Board shall have the right to
adjust (in a manner which satisfies the requirements of Code Section 424(a)) the
number of Shares reserved under Section 3, and the number of Shares subject to
Warrants granted under this Plan, and the Exercise Price of any Warrants and the
specified exercise price of any Stock Appreciation Rights in the event of any
corporate transaction described in Code Section 424(a) which provides for the
substitution or assumption of such Warrants. If any adjustment under this
Section creates a fractional Share or a right to acquire a fractional Share,
such fractional Share shall be disregarded, and the number of Shares reserved
under this Plan and the number subject to any Warrants granted under this Plan
shall be the next lower number of Shares, rounding all fractions downward. An
adjustment made under this Section by the Board shall be conclusive and binding
on all affected Persons and, further, shall not constitute an increase in the
number of Shares reserved under Section 3.

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                                   SECTION 11.
                        CHANGE OF CONTROL OF THE COMPANY

      Except as otherwise provided in a Warrant Agreement, if a Change of
Control occurs, and if the agreements effectuating the Change of Control do not
provide for the assumption or substitution of all Warrants granted under this
Plan, with respect to any Warrant granted under this Plan which is not so
assumed or substituted (a "Non-Assumed Warrant"), such Warrant shall terminate
and be forfeited immediately upon the occurrence of the Change of Control;
provided, however, the Board, in its sole and absolute discretion, may, with
respect to any or all of such Non-Assumed Warrants, take any or all of the
following actions to be effective as of the date of the Change of Control (or as
of any other date fixed by the Board occurring within the thirty (30) day period
immediately preceding the date of the Change of Control, but only if such action
remains contingent upon the effectuation of the Change of Control) (such date
referred to as the "Action Effective Date"):

            (a)   Unilaterally cancel such Non-Assumed Warrant in exchange for:

                  (i)   whole and/or fractional Shares (or for whole Shares and
      cash in lieu of any fractional Share) or whole and/or fractional shares of
      a successor (or for whole shares of a successor and cash in lieu of any
      fractional share) which, in the aggregate, are equal in value to the
      excess of the Fair Market Value of the Shares which could be purchased
      subject to such Non-Assumed Warrant determined as of the Action Effective
      Date (taking into account vesting) over the aggregate Exercise Price for
      such Shares; or

                  (ii)  cash or other property equal in value to the excess of
      the Fair Market Value of the Shares which could be purchased subject to
      such Non-Assumed Warrant determined as of the Action Effective Date
      (taking into account vesting) over the aggregate Exercise Price for such
      Shares; and/or.

            (b)   Unilaterally cancel such Non-Assumed Warrant after providing
the holder of such Warrant with (1) an opportunity to exercise such Non-Assumed
Warrant to the extent vested within a specified period prior to the date of the
Change of Control, and (2) notice of such opportunity to exercise prior to the
commencement of such specified period.

However, notwithstanding the foregoing, to the extent that the recipient of
Non-Assumed Warrant is an Insider, payment of cash in lieu of whole or
fractional Shares or shares of a successor may only be made to the extent that
such payment (1) has met the requirements of an exemption under Rule 16b-3
promulgated under the Exchange Act, or (2) is a subsequent transaction the terms
of which were provided for in a transaction initially meeting the requirements
of an exemption under Rule 16b-3 promulgated under the Exchange Act. Unless a
Warrant Agreement provides otherwise, the payment of cash in lieu of whole or
fractional Shares or in lieu of whole or fractional shares of a successor shall
be considered a subsequent transaction approved by the original grant of a
Warrant.

                                   SECTION 12.
                            AMENDMENT OR TERMINATION

      This Plan may be amended by the Board from time to time to the extent that
the Board deems necessary or appropriate; provided, however, no such amendment
shall be made absent the approval of the shareholders of the Company (a) to
increase the number of Shares reserved under Section 3, except as set forth in
Section 10 or pursuant to the provisions of Section 3, (b) to extend the maximum
life of the Plan under Section 9 or the maximum exercise period under Section 7,
(c) to change the Exercise Price under Section 7, (d) to change the number of
Shares subject to Warrants under Section 6, or (e) to change the designation of
Directors eligible for Warrants under Section 6. The Board also may suspend the
granting of Warrants under this Plan at any time and may terminate this Plan at
any time. The Company shall have the right to modify, amend or cancel any
Warrant after it has been granted if (I) the modification, amendment or

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cancellation does not diminish the rights or benefits of the Warrant recipient
under the Warrant, (II) the Warrant holder consents in writing to such
modification, amendment or cancellation, (III) there is a dissolution or
liquidation of the Company, (IV) this Plan and/or the Warrant Agreement
expressly provides for such modification, amendment or cancellation, or (V) the
Company would otherwise have the right to make such modification, amendment or
cancellation by applicable law.

                                   SECTION 13.
                                  MISCELLANEOUS

      13.1  SHAREHOLDER RIGHTS. No Warrant holder shall have any rights as a
shareholder of the Company as a result of the grant of a Warrant to him or to
her under this Plan or his or her exercise of such Warrant pending the actual
delivery of Shares subject to such Warrant to such Warrant holder.

      13.2  NO GUARANTEE OF CONTINUED RELATIONSHIP. The grant of a Warrant to a
Warrant holder under this Plan shall not constitute a contract for services and
shall not confer on a Warrant holder any rights upon the termination of his or
her service relationship with the Company in addition to those rights, if any,
expressly set forth in the Warrant Agreement which evidences his or her Warrant.

      13.3  WITHHOLDING. While it is not anticipated to be necessary, the
Company shall have the power and the right to deduct or withhold, or require a
Warrant holder to remit to the Company as a condition precedent for the
fulfillment of any Warrant, an amount sufficient to satisfy Federal, state and
local taxes, domestic or foreign, required by law or regulation to be withheld
with respect to any taxable event arising as a result of this Plan and/or any
action taken by a Warrant holder with respect to a Warrant. Whenever Shares are
to be issued to a Warrant holder upon exercise of a Warrant, the Company shall
have the right to require the Warrant holder to remit to the Company, as a
condition of exercise of the Warrant, an amount in cash (or, unless the Warrant
Agreement provides otherwise, in Shares) sufficient to satisfy federal, state
and local withholding tax requirements at the time of exercise. However,
notwithstanding the foregoing, to the extent that a Warrant holder is an
Insider, satisfaction of withholding requirements by having the Company withhold
Shares may only be made to the extent that such withholding of Shares (1) has
met the requirements of an exemption under Rule 16b-3 promulgated under the
Exchange Act, or (2) is a subsequent transaction the terms of which were
provided for in a transaction initially meeting the requirements of an exemption
under Rule 16b-3 promulgated under the Exchange Act. Unless the Warrant
Agreement provides otherwise, the withholding of shares to satisfy federal,
state and local withholding tax requirements shall be a subsequent transaction
approved by the original grant of a Warrant. Notwithstanding the foregoing, in
no event shall payment of withholding taxes be made by a retention of Shares by
the Company unless the Company retains only Shares with a Fair Market Value
equal to the minimum amount of taxes required to be withheld.

      13.4  CONSTRUCTION. This Plan shall be construed under the laws of the
State of Maryland.

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<PAGE>
                                 FORM OF WARRANT

                         BEHRINGER HARVARD REIT I, INC.
                     NON-EMPLOYEE DIRECTOR WARRANT NO.
                                                       ----

NO SALE, TRANSFER, PLEDGE OR OTHER DISPOSITION OF THIS WARRANT OR THE SHARES
PURCHASABLE HEREUNDER SHALL BE MADE EXCEPT PURSUANT TO REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR PURSUANT TO AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER THAT REGISTRATION IS NOT REQUIRED. TRANSFER OF THIS
WARRANT IS ALSO RESTRICTED BY THAT CERTAIN BEHRINGER HARVARD REIT I, INC.
NON-EMPLOYEE DIRECTOR WARRANT PLAN, A COPY OF WHICH IS AVAILABLE FROM THE
ISSUER.

                  WARRANT TO PURCHASE SHARES OF COMMON STOCK OF
                             BEHRINGER REIT I, INC.

Exercisable commencing on           , 200  Void after 5:00 P.M. Eastern Standard
Time on           , 200  (the "Exercise Closing Date").

THIS CERTIFIES that, for value received,                  (the "Warrantholder"),
or registered assign, is entitled, subject to the terms and conditions set forth
in this Warrant (the "Warrant"), to purchase from Behringer REIT I, Inc., a
Maryland corporation (the "Company" and the "Issuer"), such number of fully paid
and nonassessable Shares of common stock of the Company (the "Shares") as is
reflected on the books of the Company at any time during the period commencing
on           , 200   and continuing up to 5:00 P.M. eastern standard time on
          , 200  , at $12.00 per Share, and is subject to all the terms thereof,
including the limitations on transferability as set forth in that certain
Behringer Harvard REIT I, Inc. Non-Employee Director Warrant Plan.

THIS WARRANT may be exercised by the holder thereof, in whole or in part, by the
presentation and surrender of this Warrant with the form of Election to Purchase
duly executed, with signature(s) guaranteed, at the principal office of the
Company (or at such other address as the Company may designate by notice to the
holder hereof at the address of such holder appearing on the books of the
Company), and upon payment to the Company of the purchase price in cash or by
certified check or bank cashier's check. The Shares so purchased shall be deemed
to be issued to the holder hereof as the record owner of such Shares as of the
close of business on the date on which this Warrant shall have been surrendered
and payment made for such Shares. The Shares so purchased shall be registered to
the holder (and, if requested, certificates issued) promptly after this Warrant
shall have been so exercised and unless this Warrant has expired or has been
exercised, in full, a new Warrant identical in form, but representing the number
of Shares with respect to which this Warrant shall not have been exercised,
shall also be issued to the holder hereof.

NOTHING CONTAINED herein shall be construed to confer upon the holder of this
Warrant, as such, any of the rights as a stockholder of the Company.

                                    BEHRINGER HARVARD REIT I, INC.

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

              Behringer Harvard Reit I, Inc. Director Warrant Plan
                                     Page 9

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