Equity

Limited Partnership Units

At March 31, 2015, Tier OP had 432,586 units of limited partnership interest held by third parties. These units of limited partnership interest are convertible into an equal number of shares of our common stock.

Series A Convertible Preferred Stock

As of March 31, 2015, we had outstanding 10,000 shares of Series A participating, voting, convertible preferred stock (the “Series A Convertible Preferred Stock”) to Behringer Harvard REIT I Services Holdings, LLC. The redemption value of these shares at March 31, 2015, is approximately $4.6 million.

Stock Plans

Our 2005 Incentive Award Plan allowed for equity-based incentive awards to be granted to our Employees and Key Personnel (as defined in the plan) as detailed below:

Stock options. As of March 31, 2015, we had outstanding options held by our independent directors to purchase 75,000 shares of our common stock at a weighted average exercise price of $6.69 per share. These options have a maximum term of 10 years and were exercisable one year after the date of grant. The options were anti-dilutive to earnings per share for each period presented.

Restricted stock units. We have outstanding restricted stock units held by our independent directors. These units vest 13 months after the grant date. Subsequent to vesting, the restricted stock units will be converted to an equivalent number of shares of common stock upon the earlier to occur of the following events or dates: (i) separation from service for any reason other than cause; (ii) a change in control of the Company; (iii) death; or (iv) specific dates chosen by the independent directors that range from June 2015 to June 2019. Expense is measured at the grant date based on the estimated fair value of the award and is recognized over the vesting period. The restricted stock units were anti-dilutive to earnings per share for each period presented. The following is a summary of the number of restricted stock units outstanding as of March 31, 2015 and 2014:



	March 31, 2015	March 31, 2014
Outstanding at the beginning of the year	83,043	37,407
Outstanding at the end of the period (1)	83,043	37,407

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(1) As of March 31, 2015, 37,407 restricted stock units are vested.

Restricted stock. We have outstanding restricted stock held by employees. Restrictions on these shares lapse in 25% increments annually over the four-year period following the grant date. Compensation cost is measured at the grant date, based on the estimated fair value of the award and is recognized as expense over the service period based on a tiered lapse schedule and estimated forfeiture rates. The restricted stock was anti-dilutive to earnings per share for each period presented. The following is a summary of the number of shares of restricted stock outstanding as of March 31, 2015 and 2014:



	March 31, 2015		March 31, 2014
Outstanding at the beginning of the year	711,376		423,325
Issued (1)	640,865		450,065
Restrictions lapsed (2)	(202,354	)	(105,831	)
Outstanding at the end of the period	1,149,887		767,559

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(1) Shares issued in 2015 had a grant price of $4.48 per share. Shares issued in 2014 had a grant price of $4.20 per share.

(2) 60,376 and 33,592 of these shares were surrendered in 2015 and 2014, respectively, to pay withholding tax.