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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Behringer Harvard Opportunity REIT I,&amp;#160;Inc. (which may be referred to as the &amp;#8220;Company,&amp;#8221; &amp;#8220;we,&amp;#8221; &amp;#8220;us,&amp;#8221; or &amp;#8220;our&amp;#8221;) was incorporated in November&amp;#160;2004 as a Maryland corporation and has elected to be taxed, and currently qualifies, as a real estate investment trust (&amp;#8220;REIT&amp;#8221;) for federal income tax purposes.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Our financial statements are presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business as we proceed through our disposition phase.&amp;#160; As is usual for opportunity-style real estate investment programs, we are structured as a finite life entity, and have entered the final phase of operations.&amp;#160; This phase includes the selling of our assets, retiring our liabilities, and distributing net proceed to shareholders.&amp;#160; We have experienced significant losses and may generate negative cash flows as mortgage note obligations and expenses exceed revenues.&amp;#160;&amp;#160; If we are unable to sell a property when we determine to do so, it could have a significant adverse effect on our cash flows that are necessary to meet our mortgage obligations and our ability to satisfy our other liabilities in the normal course of business.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Our ability to continue as a going concern is, therefore, dependent upon our ability to sell real estate investments to pay down debt as it matures if extensions or new financings are unavailable, and our ability to fund ongoing costs of our Company, including our development and operating properties.&lt;/font&gt;&lt;/p&gt;
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