EX-99.2 2 tm2329059d1_ex99-2.htm EXHIBIT 99.2

Exhibit 99.2

 

First Amended Complaint in the Maryland Litigation

 

(see attached)

 

 

 

 

ALLEN R. HARTMAN * IN THE
11211 Katy Freeway, Suite 309    
Houston, TX 77079 * CIRCUIT COURT
     
and * FOR
     
HARTMAN VREIT XXI, INC., * BALTIMORE CITY
11211 Katy Freeway, Suite 309    
Houston, TX 77079 * Case No.: 24C23003722
     
Plaintiffs, *  
     
v. *  
     
SILVER STAR PROPERTIES REIT, INC. *  
(F/K/A HARTMAN SHORT TERM    
INCOME PROPERTIES XX, INC.) *  
300 E. Lombard Street    
Baltimore, MD 21202 *  
     
SERVE ON: Resident Agent *  
  Incorp. Services, Inc.    
  1519 York Road *  
  Lutherville, MD 21093    
and *  
     
GERALD W. HADDOCK, CHAIRMAN OF *  
THE EXECUTIVE COMMITTEE, in his    
capacity as a member of the Board of *  
Directors and Executive Committee of Silver    
Star Properties REIT, Inc. *  
300 E. Lombard Street    
Baltimore, MD 21202 *  
     
SERVE ON: Resident Agent *  
  Incorp. Services, Inc.    
  1519 York Road *  
  Lutherville, MD 21093    
and *  
     
JACK I. TOMPKINS, DIRECTOR, *  
EXECUTIVE COMMITTEE in his capacity    
as a member of the Board of Directors and *  
Executive Committee of Silver Star Properties    
REIT, Inc. *  
300 E. Lombard Street    
Baltimore, MD 21202 *  

 

 

 

 

SERVE ON: Resident Agent *  
  Incorp. Services, Inc.    
  1519 York Road *  
  Lutherville, MD 21093    
and *  
     
JAMES S. STILL, DIRECTOR, EXECUTIVE *  
COMMITTEE in his capacity as a member of    
the Board of Directors and Executive *  
Committee of Silver Star Properties REIT, Inc.    
300 E. Lombard Street *  
Baltimore, MD 21202    
  *  
SERVE ON: Resident Agent    
  Incorp. Services, Inc. *  
  1519 York Road    
  Lutherville, MD 21093 *  
     
Defendants. *  
     
*     *     *     *     *     *     *     *     *     *     * * *     *     *     *     *     *     *     *     *     *     *

  

FIRST AMENDED COMPLAINT FOR DECLARATORY AND PRELIMINARY AND PERMANENT INJUNCTIVE RELIEF

 

Allen R. Hartman and Hartman vREIT XXI, Inc., stockholders of more than 5% of the common stock of Silver Star Properties REIT, Inc. (“Silver Star”), a Maryland corporation, file this Amended Complaint to compel Silver Star and its board of directors to hold an annual meeting of stockholders as required by Md. Corp. and Assn. art. § 2-501, to compel Silver Star to provide a stockholder list to plaintiffs as required by Md. Corp. and Assn. art. § 2-513, to declare a purported amended bylaw passed in response to this suit in an attempt to avoid an annual stockholder meeting void and unenforceable, and for preliminarily and permanent injunctive relief requiring Silver Star to provide a stockholder list to plaintiffs and to enjoin Silver Star from proceeding under the amended bylaw, and allege as follows:

 

- 2 -

 

 

INTRODUCTION

 

1.            As more fully set forth below, the current directors (other than Allen Hartman) of Silver Star (the “Directors”) are seeking to entrench themselves by doing everything possible to avoid an annual meeting at which new directors can be elected. The Directors have: (1) refused to call an annual meeting of stockholders as required by the Maryland General Corporation Law, Md. Corps. & Assn’s §§ 1-101 through 3-907 (the “MGCL”); (2) refused to provide plaintiffs with access to a stockholder list as required by the MGCL; and (3) in response to the original complaint in this action seeking an order compelling an annual meeting, have purported to amend the bylaws of Silver Star (the “Bylaws”) to allow Silver Star to avoid holding an annual meeting. The amendment to the Bylaws violates the MGCL and the Third Amended and Restated Articles of Incorporation of Silver Star, as corrected and amended to date (the “Charter”) and/or was passed in bad faith.

 

The entrenched directors are proceeding to solicit stockholders of Silver Star pursuant to the purportedly amended Bylaws. Plaintiffs seek preliminary and permanent injunctive relief against any solicitation pursuant to the amended Bylaws, a declaration that the amended Bylaws is void and unenforceable, an order compelling Silver Star to provide plaintiffs with its stockholder list and an order compelling the holding of an annual meeting.

 

The Parties

 

2.            Plaintiff Allen R. Hartman (“Hartman”) owns shares of Silver Star’s common stock.

 

3.            Plaintiff Hartman vREIT XXI, Inc. (“Hartman vREIT”) owns shares of Silver Star’s common stock.

 

- 3 -

 

 

4.            Hartman and Hartman vREIT together are the record owners of more than 5% of the outstanding shares of common stock of Silver Star and have been such record owners for at least six months.

 

5.            Defendant Silver Star is a Maryland corporation taxed as a Real Estate Investment Trust (“REIT”). While Silver Star is registered with the Securities and Exchange Commission, its stock is not publicly traded.

 

6.            Defendants Gerald W. Haddock, Jack I. Thompkins, and James S. Still are Directors of Silver Star and comprise its Executive Committee through which Silver Star purports to operate.

 

7.            The Directors are subject to personal jurisdiction in Maryland by virtue of being directors of a Maryland corporation. Under Maryland law, service on directors of a Maryland corporation is effective by serving the Resident Agent of the corporation for which they are directors. Md. Code Ann., Cts. and Jud. Proc. § 6-102.1.

 

The Underlying Dispute

 

8.            Hartman and the Directors who serve on the Executive Committee have been involved in disputes. Hartman, while still a director of Silver Star, was removed from its Executive Committee.

 

9.            As relevant here, Hartman believes that the Executive Committee has embarked on a plan of action for Silver Star to sell its current assets comprised of commercial real estate in Texas at too low a value and to embark on an unwise strategy of investing in self-storage facilities.

 

10.          The entrenched Executive Committee disagrees with Hartman.

 

11.          Plaintiffs seek the ability afforded to them under the MGCL and the Charter and Bylaws to vote for directors at a duly called annual meeting of stockholders and/or to communicate with Silver Star’s stockholders who can decide to vote for directors who express their view of the direction Silver Star should take by voting for directors in a usual stockholder election.

 

- 4 -

 

 

COUNT I

(FAILURE TO HOLD A STOCKHOLDER MEETING)

 

12.          The allegations in paragraphs 1 – 11 are incorporated herein by reference.

 

13.          Section 2-501 of the MGCL (“Section 2-501”) provides that a “corporation shall hold an annual meeting of its stockholders to elect directors and transact any other business within its powers[,]”

 

14.          The annual meeting of stockholders of a corporation provides an opportunity for stockholders to elect members of the Board of Directors.

 

15.          Section 8.1 of the Charter provides as follows:

 

There shall be an annual meeting of the Stockholders, to be held upon written notice at such time (at least 30 days after the delivery of the annual report) and convenient location, within or outside of the State of Maryland, as shall be determined by or in the manner prescribed by the Bylaws, for the election of the Directors . . . The Directors shall take reasonable steps to ensure that the annual meeting is held.

 

(Emphasis added).

 

16.          Prior to August 25, 2023, when this suit was filed, Section 2 of Article II of the Silver Star’s Bylaws provided that “[a]n annual meeting for the election of directors . . . shall be held on a date and time set by the Board of Directors in each year commencing with calendar year 2010.”

 

17.          Silver Star failed to hold an annual meeting in 2022 and has not held, or indicated that it intends to hold, an annual meeting thus far in 2023.

 

18.          To assure that Silver Star would hold an annual meeting in 2023, counsel for Hartman wrote to the Senior Vice-President and General Counsel of the Company (“Silver Star’s Counsel”) in a letter dated July 19, 2023 transmitted by e-mail seeking confirmation that Silver Star would hold an annual meeting on or before December 31, 2023 as required by Section 2-501, the Charter and the Legal Bylaws. A copy of the letter is appended as Exhibit 1.

 

- 5 -

 

 

19.          A simple confirmation that such a meeting would be scheduled and held would have obviated the need for this lawsuit.

 

20.          Instead, Silver Star’s Counsel ambiguously responded to multiple requests for confirmation that an annual meeting would be scheduled and held on or before December 31, 2023. In the final request, Mr. Hartman’s counsel again asked for confirmation that the prior response meant that such a meeting would be held on or before December 31, 2023 and “[i]f I do not hear from you by August 10th, then I will assume that you are unwilling to confirm that a meeting will be called in 2023. . .” Silver Star’s Counsel again responded ambiguously that “The timing of a meeting is up to the Executive Committee . . . I have made all of the representations that I can give you at the present time.” A copy of the chain of e-mails is attached as Exhibit 2.

 

21.          The failure to simply confirm that an annual meeting of stockholders will be scheduled and held on or before December 31, 2023 was all the more troubling given ongoing disputes between Mr. Hartman and the other members of Silver Star’s Directors.

 

22.          On August 25, 2023, counsel for plaintiffs provided a copy of the original complaint in this matter to Silver Star’s Counsel by e-mail.

 

23.          On August 30, 2023, Silver Star filed a Current Report on Form 8-K with the SEC to disclose that, effective August 28, 2023 – just three days after receiving a copy of the original complaint – the Executive Committee had amended Section 2 of Article II of the Legal Bylaws, pursuant to a First Amendment to the Bylaws of Silver Star (the “Amended Bylaw”), to purportedly permit stockholders to elect directors “without a meeting, if a consent in writing or by electronic transmission to such action is given by a quorum of the stockholders[.]” A copy of the Amended Bylaw is attached as Exhibit 3.

 

- 6 -

 

 

24.          The Executive Committee’s action in approving the Amended Bylaw was, in addition to being unlawful as discussed in Count III below, clearly taken in an attempt to accomplish an end run around having an annual meeting, entrenching the Executive Committee, and disenfranchising stockholders, including plaintiffs, of their important right to vote for directors of their choice at a duly called and held annual meeting.

 

25.          Given the timetable that must be followed in scheduling an annual meeting, plaintiffs are filing herewith a motion to expedite consideration of this matter.

 

COUNT II

(Failure to Comply With Stockholder Demand To Inspect Stock Ledger and
Injunctive Relief)

 

26.          The allegations in paragraphs 1 – 11 are incorporated herein by reference.

 

27.          Section 2-513 of the MGCL (“Section 2-513”) provides that stockholders who “together are and for at least six months have been stockholders of record . . . of at least 5 percent of the outstanding stock of any class of a corporation” have the right “on request or in writing or by electronic transmission, inspect and copy during usual business hours the corporation’s books of account and its stock ledger. . ..”

 

28.          In addition to the unqualified right afforded by Section 2-513, Section 8.7 and Section 8.8 of the Charter guarantees to “any Stockholder” the right to inspect and copy Silver Star’s stockholder list “in connection with matters relating to Stockholder’s voting rights, and the exercise of Stockholder rights under federal proxy laws.”

 

29.          On August 25, 2023, pursuant to Section 2-513(b) and the Charter, plaintiffs demanded that Silver Star permit them to inspect and copy Silver Star’s stock ledger within 20 days of the request and requested that such list be provided electronically. A copy of the demand is appended as Exhibit 4.

 

- 7 -

 

 

30.          As with the demand for an annual meeting of stockholders, Silver Star did not respond.

 

31.          By e-mail dated September 19, 2023, counsel for plaintiffs asked in-house counsel for Silver Star to confirm that Silver Star’s stock ledger was available.

 

32.          Silver Star again did not respond.

 

33.          By e-mail dated September 25, 2023, counsel for plaintiffs advised counsel for Silver Star that Tom Lightsey of Holman Fenwick Willan LLP in Houston, Texas, as the plaintiffs’ agent, would be at Silver Star’s principal office on Tuesday, September 26, 2023 between 2:00 p.m. and 5:00 p.m. for the purpose of inspecting and copying Silver Star’s stock ledger.

 

34.          Silver Star’s Counsel responded that Silver Star would not permit inspection and, as a basis therefor, incorrectly asserted (citing to case law from outside Maryland that addressed the law of the District of Columbia) that plaintiffs did not articulate a legitimate purpose for the requested inspection.

 

35.          Plaintiffs seek to inspect the stock ledger so that they have the ability to communicate with stockholders. Neither the MGCL nor the Charter requires plaintiffs to articulate any basis for demanding such inspection.

 

36.          Silver Star’s rejection of the demand for inspection was improper.

 

37.          Silver Star is contacting stockholders pursuant to the Amended Bylaw challenged herein.

 

- 8 -

 

 

38.          By refusing to provide Plaintiffs with a stockholder list, Silver Star and the Executive Committee are improperly attempting to preclude Plaintiffs from communicating with Silver Star’s stockholders regarding the election of directors.

 

39.          The request for inspection of the stockholder list is urgent and requires preliminary injunctive relief.

 

40.          Plaintiffs will be irreparably injured if Silver Star and the Executive Committee can contact stockholders but they cannot.

 

COUNT III

(Declaration that Purported Bylaw Amendment Is Void and Unenforceable and Preliminary and Permanent Injunctive Relief)

 

41.          The allegations in paragraphs 1-11 are incorporated herein by reference.

 

42.          Plaintiffs seek a declaratory judgment pursuant to Md. Code. Ann., Cts. & Jud. Proc. Art. Section 3-406 to determine a question of actual controversy between the parties. Plaintiffs’ status as stockholders are being affected by the Amended Bylaw which violates Maryland law.

 

43.          The Amended Bylaw purports to allow the election of directors and transaction of business without an annual meeting of the stockholders of Silver Star “if a consent in writing or by electronic submission to such action is given by a quorum of the stockholders[.]”

 

44.          The Amended Bylaw is void and unenforceable for any of three reasons: (1) the right to amend the bylaws cannot be delegated to an Executive Committee; (2) the Amended Bylaw violates MGCL 2-505(b)(2) because the Charter does not permit the purported change; and/or (3) the Amended Bylaw was enacted in bad faith in response to this lawsuit in an attempt to avoid holding an annual meeting.

 

- 9 -

 

 

45.          The Amended Bylaw states that it was passed “by the Executive Committee (the ‘Committee’) of the Board of Directors (the ‘Board’) of the Company exercising its decision-making power of the Board[.]”

 

46.          The Amended Bylaw is void and unenforceable because MGCL Section 2-411(a)(2)(iii) expressly prohibits the Board from delegating to the Executive Committee the power to amend the Bylaws.

 

47.          Alternatively, the Amended Bylaw is void and unenforceable because Silver Star’s Charter does not permit a consent to the election of directors by less than unanimous consent of the stockholders. MGCL Section 2-505(b)(2) provides that the right of common stockholders entitled to elect directors cannot be amended without unanimous stockholder consent unless the charter of the corporation so provides:

 

If authorized by the charter of a corporation, the holders of shares of common stock entitled to vote generally in the election of directors may take action or consent to any action by providing a consent in writing or by electronic transmission of the stockholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a stockholders meeting at which all stockholders entitled to vote on the action were present and voted if the corporation gives notice of the action not later than 10 days after the effective date of the action to each holder of shares of the class or series of common stock and to each stockholder who, if the action had been taken at a meeting, would have been entitled to notice of the meeting.

 

(Emphasis added).

 

48.          The Charter does not authorize the holders of Silver Star’s common stock to take action (including consenting to the election of directors without an annual meeting) other than with the unanimous consent thereof.

 

49.          Section 2-210(a) of the MGCL prohibits the bylaws of a Maryland corporation from containing any provision that is “inconsistent with law[.]” The Amended Bylaw is “inconsistent with law” because it provides that directors can be elected without unanimous consent which is not authorized by the Charter.

 

- 10 -

 

 

50.          Even if the Charter authorized stockholders to take action without unanimous consent, it is improper for the Directors to avoid an annual meeting by amending the Bylaws to write out the provisions requiring an annual meeting.

 

51.          Alternatively, even if the Amended Bylaw was duly adopted, a bylaw will not be enforced “if it was adopted in bad faith, for the purpose of entrenching the corporation’s board of directors and not for the benefit of stockholders.” Hanks, James J, Jr., Maryland Corporation Law, § 3.12.

 

52.          The Amended Bylaw was adopted in bad faith in response to this lawsuit seeking an annual meeting of the stockholders at which directors could be elected to determine the direction the corporation should take.

 

53.          Silver Star is contacting stockholders pursuant to the Amended Bylaw.

 

54.          Plaintiffs’ rights as stockholders of Silver Star will be irreparably harmed in the absence of injunctive relief prohibiting Silver Star from soliciting stockholder consent to dispense with an annual meeting pursuant to the Amended Bylaw.

 

WHEREFORE, plaintiff requests the Court to:

 

1.Order the Executive Committee and the Board of Silver Star to schedule and hold an annual meeting of its stockholders on or before a date certain in accordance with the requirements of the Maryland Code and the Charter and legal Bylaws;

 

2.Order Silver Star to provide the stock ledger to plaintiffs for inspection and copying (or by electronic transmission) within five (5) days;

 

3.Declare the Amended Bylaw void and unenforceable;

 

- 11 -

 

 

4.Preliminarily and permanently enjoin Silver Star from seeking consents for the election of directors without an annual meeting pursuant to the Amended Bylaw.

 

5.Enter a preliminary injunction compelling Silver Star to provide the stockholder list to plaintiffs; and

 

6.For such other and further relief as the nature of the cause may require.

 

 

DATED: October 19, 2023 Respectfully submitted,  
     
     
  /s/  
  Jerrold A. Thrope (CPF #8105010249)  
  Gordon Feinblatt LLC  
  1001 Fleet Street, Suite 700  
  Baltimore, Maryland 21202  
  jthrope@gfrlaw.com  
  (410) 576-4295 (Phone/Fax)  
     
  Counsel for Plaintiffs  

 

CERTIFICATE OF SERVICE

 

I HEREBY CERTIFY that on this 19th day of October, 2023, a copy of the foregoing Amended Complaint will be served on the resident agent for all defendants.

 

  /s/  
  Jerrold A. Thrope  

 

- 12 -

 

 

GORDO N a FEINBLATT,ll' AT T O IU \ 1 - :. YS ! \ T l ! \ \ V A ND H E \ \ I), 1 \ 1 : L r. I N ( 1 111): - i l · ' F , , , · I ll ' . 'ii h. - 12,, ,, .1h11 h.:i n 4il ).! l r l , 1 \ \ , ' \ Pt ll h '.' 1 1 1 1 JI : - 1., I ' - 1 I I i t 1 " .. H ,: 11.. , w, \ IP "l l I · : H ;o 4 1 \ ' 1 ;( , . , : Ju l y !9, 2023 \ ' I i \ EMAIL (111rn t· 11 i11 (i i hi - rl'it.<:Om) M1d1ad Ra c u i n , Es qui r <.: Sc 1110r Vi e t: Pn.: s id1.:11l nnd Ge n e ral Co un se l S r l vt: r S1 11 r Pm pc1 i i<.: s R E I T, Inc. 2909 Il rll c r o n , S u i te 420 I l o u s l o 11 , TX 77057 R e; Allen 1. - lc,nnrnn Dear '.'v l r . R nc u . in : This firm r ep r ese nt s ! \ li e n R. l lnr tm an , llannian v R t.::!T X X ! , In c . , , rnd I [; 1r t nw11 XX H o ldm gs , In c . , w h o, a l ong with !h e i r rclnl c d cnlilics ( co l h: c ti vcl y, th e " [ J ;i rt111 ; 111 E11 ti ti c - s"). uw n slrn r c:::: of common sto c k o r Si l ve r S lur Prop e rtie s REIT , In c., a tv 1ar y land c rnp, ral io n ("Si l ve r S t a r " ) . Sct: tion 2 - 50 l (a) o r th e M a , y l a nd Genera l C or poration Law pruv i des thal a Mar y l and co rpora t io n "yhn/1 hold an m1nu.il rnc t: tin g o f' i t s s to ck ho l d e r s t o c l t:cl uir cc tli rs a11J lnm s.ic t c11 1 y othL: r b us in ess wit hi n its pow e r s . .. S i mil a rl y, Se c ti o n 2 u C J \ rticlc II u C S i l v1 T . Star's b y l a 11 - s ( th e "B ylaws") pro v id es 1hat · ' [ a]u arui u a l 111 cc l i 11 g o f s tn c kho klcr s for the eke l i on o r d1n .:c t o r s an d th e t r a n s a c t ion or a n y bu sim; ss w it h i n lh c p owers o f t h e C or p o rat in 11 s/ru/1 b e held o n a d;itc anti u! th e l im e s d by th e B oa rd of dm.:clo r s in e a c h yt.:a r[ . f' S il ve r Star ha s r c pca(l!d l y brca c:l t l' d Maryland la w n n d the Bylaws b y not hold i n g :111 Hn11L1 a l 111 \ .!c l111 g o f st o c: kl rn lder s. S il ve r Star ha s not ye t held a n 1 11111w d 111 c c ti11 g in 0 2 .l a 11tl ivl r . I larlman l u ld u s that Si l v e r S l <11 's bo a rd o f tl irc c l o r s ha s im li t.:c1led to h11 n t h at it do cs 11 0 1 rn te ml tO t·, 1111H · <.:O J1V C 1H .: flll ann ual m ee t i n g in '.W:2 3. T o avoid auy dir ecto r c n1n.:11 c h111c11 l. th · H unm :rn E nti tie s b e l i e ve t lrn t it i s imperative t h a t s tu ck h o ld c r s b e g i ven th e oppo rtu n i t y 1 0 d cc t d ire c t ors 1 1h o wi l l r e pre se nt th em and se r ve their inter es ts. Pl c: n se confini1 b y A u g n !i t 2, 2023 111 , H r he b o ard o f clire c t OI:' - o f S il ve r S tar w i l l c n l l 11 11d c onvene <1 11 annm il m eet in g o f' s t oc k h o lde r s 0 11 or be Core D c c(: mlJ cr 3 1 , 10 23 . I f S1 lw r Srnr fa i l s t o co mpl y wi th t hi s demand, th e n th e H ar !mn11 Entitie s will pr o mp tl y l'ile s uit 10 co rnpd n 11 EXHIBIT 1

 

1 GORDON· FElNBLATI c ' \ I I l)H' - . I · \ ' \ I I \ \ \ ' /vl i c ll,1 c l Rac u s i 11 , [:squire Jul y 19. 2023 Page 2 annual m ee tin g a nd /o r ra h : :; u c h ot h e r ac ti ons n s 1h cy deem nppropri11u.: to en urc tha1 th e co mp os i ti,m or th e b oa rd or di rector p roperly re fl ects the will o f tht: slock h ul d cr$. Since re l y, cc.;: Mr . / \ li en R. Hnr l n1m1 ( vi a e - mail) Jerrold - '" - · Thrope, Es q. (v i a e m a il )

 

Thrope, J e rro ld A . From: Sent: To: C c: S ubj ec t: Bu l gin, And r ew D. T ue <;day, Au g u s t 8, 2023 3:27 P M M ich ae l Racusi/ \ Th r op e , Je r ro ld / \ . RE : S ilv er St a r Proper tie s RfIT , Inc. • , \ li e n Har1rnan M i chae l , 1 no t e that you h ave not r etu rn e d my cal l from last week or re s ponded in a m ean i ngful way to my l ast e m ai l asking for a very str a i g ht - fo r ward respons e t o o ur demand. If you fa il to co nf i rm - in no unce r ta in t e r ms - b y the c l ose o f business tomorrow that Si l ver St ar' s Board will ca ll an a nn u a l meeting of !:>to c khold ers to be held on o r before December 31, 2 023 , then the Hc1rlman En t i t i e s w ill f il e a co m plain t in the C ir c u it Cour t fo r Ba lt im o r e C i t y, Mc1ryland aga in st Sil ve r Star a nd i ts Board pur sua nt to which it wi ll seek to compel a 2023 annual m e etin g . We w i l l not reac h out again before filing s u it. / \ NOY / \ NDR F. W BUI .G IN , M F M nt H GORDON FE]NBLArr L LC · 1 00 1 f=" L E ET S'l REET . S U I T E 7 0 0 , B ALT IM ORE . M D 2 1 2 0 2 U IR ECI D I A L AN D : r Ax: (/1 1 0) 07 6 - 4 ? 8 0 M OOIL E '. (4 4 3) 8 5 7 - 1 I 33 F · M AIL : / \ B U t _ C IN @ GF R L / \ W .C O M IJ 1 0 : Ht 11 - ': / / W W W .(, F H L / \ W . C O M / A N D HE W f) LJ l Q! N / · 0 0 0 0 00 0 \ BEST PL/IC ES ro \ '.' OflK ·. IB! D t1)A ε 0 0 1 . 1 . , f o , n .. . f . ' • . l n - b . J - o n · l. From: l3ulgin, Andr e w D . <a bu l gin@gfr l aw.co m> Se nt : Thur s d <1y, 1'.l.1 1 g u st 3, 2023 3:24 PM To: Mi c hael R acus in < m racusin@ hi - reit .co m > Cc : Thrope, J e rrold A. < j t.hro pe@gfr law .c o m > Subject: RE: Si lv e r S tar Prop e rt i es REIT, In c . • All e n H a rt m an EX H I B I T 2 With r es p ect, your r esponsesappea r dis i n ge n uous an d e vas i v e . I'm no t ask i ng you to co mmit t o a date i n 2 0 23 o n which the m ee t i ng w ill b e held. I'm s im p l y ask i ng you t o confirm that Si lv e r St a r' s Board will ca ll a n annu a l m eet in g to b e he l d o n SO M E DATE i n 2023. You s e em to not want to do t h a t. Th e Maryland Ge n e ra l C orporatio n Law and S il v e r S t ar' s bylaw s req uir e

 

an ann u a l meeting each ye a r. So, my req ues t sim p l y calls for a y es or no a nsw er - wi l l the Board ca ll an annual meeting ot stockholders to be held on SOME DATE in 2023 ? / \ NUY / \ NDHE:W AU L. G IN . ivl L MUU 1 G o 1m o N F E 1N l3 1 Arr L. L C l 001 Fl .I·I I S T l Ll: r . SlH 1· 1 70 0 . lJ1 \ I l'IMOl L . Mf')? I ?0? D1 1 i c c T I )1, \ I / \ NI) I /1.X ' (/ \ 1 0 ) !J76/ \ ?80 IVl O l : l l L C: (IJ 113) 8 5 7 - 1 1 33 ! · M AIL : / \ 0 U LGIN@ Cr RL.. / \ W.C O M B 1 0 : U .I:!J?.:_/ / W W W .GFR J ccA W , (: O M / ANDREW 8ULGLN/ From: Michael Racusin < mr a cusin(cuhi - reit.com> Sent: Thur s day, Au g u st 3, 2023 3:17 PM To : Bul g in, Andrew D. <9.b.._u l g in @gfrl aw . c om > Cc: Thr ope, Jerrold A . < jthr op e@g fr l aw.co m > Subject: [ EX TERNAL] R E: Silver Sta r Prop er tie s REIT, I n c. - Allen Hartman Attention : Thi s email was sent from someone outside of Gordon Feinblatt LLC. Alway us e caution when opening attachments or clicl<l n g /inl<s from unlcnown se nder s or when receiving unexp ecte d email s . The timing of a m eeti n g i s up to t he Execu t i v e Co mm i tt e e of th e Co mp any's Boarrl of Dir ecto rs. I ha v e mad e all of th e r e present ations that I ca n give to you at the current tim e . Your s truly, M I CHA E L KA CUS IN I SEN 1 o n VICE PRESIDENT / \ N D u E NER1 \ I. COUNSEL S IL VER S T A R PROPERT I ES REIT, I NC. 2909 l !itlcroll: S ui t P. ll.20 Ho u st on , TX 17057 800.880.2212 Toll Fr<:c I 713586.2612 Off i ce I 713.724 3708 Ce ll n 1ra c u in @ hi • reit . c9m I ww w. hH e it. c.9 _ 11 } S I LV ER STAR - P R O l' i' R r l l S • q, .: .. CONFIDENTl/ \ ll lY NOTICE. l h e info rmJli o n contamed , ., thi s m essag e (ind11d1ng attach,nrnt;) is les<1il \ ' pn v,l e <>d nd ro nf11Jt>,n , .11 ,11,d pro t c t e d f ro m d i<clow r f) by th e U ec r.ron ic Co m m un icnl!ons l' n vac y Act, 18 U SC' 2510 - 25 :>1. II the r e a cl or of th e mPssagc i not t h P i n , u ndf>d r,·cip1en t. y ou M e hNcby no11Hr.d th, 1l a n y rnt<.'nlion, di ssP m ina lio n, 1. Ji s ttlb ut,nn, or copyine u f t h is co 11 11 ri unica tio,, l s st ri c tly prnhihitrd. If y o 11 r ec e i v e d thi s comrmrnic;nion in n o r , ple<1 se no ti fy 1 1 irnm ct .li t ly a11d delete the orig i n ! m ess gc. n, n k you. 2

 

F r om : Bule in , Andr e w D. 9 b \ d g intu r, f rl c1w . co1 n > Se nt : Thur s day, Au g u s t 3 , 2 02 3 1:20 PM To: M ich a e l Racusin <m racu s in @ hi • r ei t . com > Cc: Thrope, J e r ro ld / \ . < j t hro _ pe o r !) > Subject: RE: Si lver Sta r Prop e r ti es RE I T, Inc. - All e n Hartman Mr . Racusin, Although you seem re lu ct ant for some reason to p rovi d e a st r aight - fo rward a n sw e r to a very s im p l e and s t r a i g ht - fo r w ard qu est ion , I int e r pret your r esponse to mean that the Board an d/ or its Execut i ve Committee wil l ca l l an an n ual m ee tin g of st ock ho ld er s t o be held on or before December 31, 2023. P l ease l et me k now im m ed i ate ly if my int erp ret at ion of your response is co rr ect or i n cor r ect so that the Hartman Fntities can take appropriate a c tion . I f I do not hear from you by Augus t 10 t h th en I wi ll assume t ha t yo u a re unw illin g to confirm t ha t a m eet in g , wi ll b e cal l e d in 2023 and the H ar tm an En t iti es will act accor ding l y. ANDY ANDREW BULGIN. M L M OE R GORDON FEINOL/ \ .TT L L C 1 0 0 I F LEE r S T RE l:. 1. S UI r L 7 0 0 . 0 / \ L T IM Ol < E . M D ?. 1 ?O;.> D m Ec r DIAL AN O f" A X: (l l l 0) 5 7 6 ,1200 M O IJI L C: ( /J/J .3 ) t35 7 - 1 1 33 [ MAIL: 6.! Q 3 t,. G J_N @l, Ff" < I..AW . C::Q .M R i o : H TT r : / / _ w _ww .G F R LJ \ W .( "c_O l \ 1./ i \ N D H E W Fl Ul G IN / From: Mic l 1a e l R acu s i n < mra c u s in @) hi - r e it. com > Sent: Thur s day, August 3, 2023 11:J 5 AM To: Bu l gin, Andrew D. <a b u l g in@gf rl aw. c o m > Cc: Thrope , Jerrold A . < it hro p _ @ , y f.i: J a w. c om > S ub j ec t : (EXTER NAL) RE: Silv e r Sta r Pro per t i e s REIT, Inc . · A ll en Hartman A tt e ntion : Th i s e mail wa s sent from so m eo n e outs id e of Gordon Fein blatt LLC. AlwCJys u e caution w h en opening att c,chme nt s or clicking links from unl<nown s end er. or when rece iving unexpected em a ils. . , .)

 

Mr_ Bu l g i n , To answer your q u estion, t h ey int end to comp l y w i th the req uir em ents. T h e act ual t1n1i ng is up to t h e and the Executive Comrni tt ee of th e Company's Board o f Direc tor s. Yours tr uly , MICH/ \ EL RACUSIN j SFN !O R VIC[ PRl: IDFi \ lT / \ i \ 10 Ci P - i'J ER/ \ L COU NSEi SILVER S TAR PROPERT IES RE IT, IN C. 1.009 1 - 11llcrolt Suite :f20 Ho 1 sto n , TX 7 /0!.> I 800.880.2212 Toi! Free j J'l3 5862Cl;, Off , ce I 713 7?4.3Jllll C"I! !!J td tu sj11@hi - rei t. co m I •ww.lii - re1t.rom SILVER ST AR • J - l' RO I' E RT I t S - CONfl DENT/l \ ll lY NO 11! E : T he in fo rrn ation ro oua inr d in t .hi s m ess age (incl11dir1g attachments) i legally privrlcgcd a nd rnntidenli,,i ,111CI pro 1 c cterl from di clo s1Jrf' by t h e ( h:ctro n i c Communica ti o n P1 , v;1cy / \ ct. JS U SC 2510·25? t . ti tne r ade , o f 1 h e m , s g c i ; not the inten <l d r. , cipi e nl , yol• M e h ernby notifie d 1 h,1t any 1i>t<>ntio11, dissemination, di t ribu ti on, or copying c( I his comn wnir ati o n b l r i c t ly prolubited . If you received tiir< comm u nicJtio n i n l"«or. pi e.lie noti f v u s i rnmed i dlely Jrtd de l e t e t h o, ip,i n;ll mr s ge. Th,,nk you. From : !3ulgin , Andrew D . < a bul gi n @gfr l aw.com > Sent: Tu es d ay, A u g u st 1, 2023 4:0 3 PM To: Michael Ra c u s in < m racus i n@h i - re it. com > Cc: Thrope, Jerrold A . < j tl1ro 1 fr la w.£ QL!].> Subject: RE: S il ver Star Properties R E I T, Inc. - A ll en Hartrrnrn Mr. Racu si n, Thank you for your r es pon se . To make su r e that I co rr e c t ly und e r s t a n d your s t at e m e nt, pl e a se confirm, a s r e que sted in my l et t er, that Sil v er Star Propert ie s REIT, In c . int end s to ca ll an a nnu al m e e t ing of stoc kh o ld ers to be held on or b e fo re Decem be r 31 , 2023. A Nn l? F W BULGIN, i'v C ! MHI R GORDON FE: I N B L / \ n · LLC 1 oo 1 ru 1::.., s r 1<1::1 1, S ui IL 700. A111. : 11MO l L. M l > ? 1 ?02 D !R F.<.: T DIAL ANDFAX: (4 1 0) !:S7o - /J 280 M OBILE: (4 4 3) 8 5 7 - 1 I 33 E - MA I L: A01!.L ..,f3 1 N@ G F '" l<LAW .C O M B 1 0 ; HT T P: / / W W W . F l LAW.C O £ )/ l \ !::!.PR!;_ \ :Y Q..V.l,,QI /.

 

0000000 BIEST Pl A Cr s TO W(>i{K D7 l•' 1 From: Michael R acu s in <mracu sin@hi - r ei t .cgrp > Sent: Tu es day, Au g u s t 1, 2023 4:36 PM To: 13ulgin, And r ew D. <abu l g in.@lg frl aw. r.om> C c: Thrope, Jerrold A. < jthr opc @ gf r l a w. rn m > S ubj ect: [EXTERNALl RE: Si l ver Star Properties REIT, In c. · Allen Har t man Attention: This e mofl w a s se nt from someo ne o uc side of Gordon F e inblatt LLC. Al w oy u , e c aution wh e n o p e ning ut ra t h m en h o r clicking links from unknown sender s o r w/len re c eiving un e " pe c t e d email s. Mr. Bulgin, Thank you for con tac ti ng me ab o u t t hi s issue. P l ease be a dvised that Silver S t ar Pro per tie s REIT , In c (the "C o m pany" ) and the F.xecutive Commii te e of the Co rnpany ' s Board of Direct o r s intends to corn ply with th e term s of the Co mpany' s go v ern i ng docu m en ts and app li cab l e l aw. Yours truly, MICH/ \ EL RACUSIN I SEN I OR vi er PR l' S I DENT l \ i'JD (i ENr.R1 \ I. CO UN SEL SI LV ER STAR PRO PERT I ES RE IT , IN C. 7.909 Hillcroft SuiiP 4 ?.fl H o uston, TX 77057 800.880.2212 To ll Frnc I 713.586.2612 Office I ! 13 . i 24.3 / 08 Ce ll 111racu _ g n .@ [ 1i - r e it.co111 I yv:tJw.h1 rc 1t. c9n 1 S I LV ER ST AR '/,,1 - P RO P l RT I 1 : S - ij.,; CONF I OENTl1l \ 1Tr NOTICE · l h e i n f o rrn ,Hion con t i nc d in this 1n c, s ,1ge (incluthn g attachn1cnts) i s l1>r,ally \ )l'ivtle gcd a n d co11 l idc11l 1<1I ,11 1(1 pro l ct ted Iro n , d11r,lo \ t11 by th o E le ctron ic Co ,nrnun icotions Priv cv A c t , .l8 U SC 2 l0 - - 2 5 J.l. II I h e r ad c r or th e m e _;ag , ' 1; n o t th e int.endN I «'c ip1cn t . y o u ,I r(! hcrclJy notifwd , u , 11 ;my re10r111tin, di sse min a ti on. d is tributi on, o , copy i n3 o l lhis commu ni c t ion is , tn t tl y prol11bltcd. If you received th , i co rnnw r1 i t ;i1ion i n !! r w r. µlea ,s t lllltify u, i1nn 1( ' di J tely Jn( I d ele t e t he o , , glnal message. T h a nk you. 5

 

Fro m : eulgin, And r e w D. < 9 bt!.l.gfil@gfrlaw . co ru > S en t: Wednesday, J,ily 19, 2023 3:38 PM To : M i chae l Racusin <rnraCLJiiJl@..hi rcil. £ orn, ; Cc: Thrope, J e r rold / \ . <jt hr o pe @g frl uv, .w m > S ub jec t: Silver Star Pro pert i es REIT, Inc . - All e n Harl man Dear Mr. R acusin, Pl ease see the att ac h e d lett e r. ANDY A N DRE W UULGIN, M F l \ 1 11Fr < G or - m o N F E IN B U \ TT LLC 1 0 0 1 rJ . .F F - 1 S T h'L l T . S U I I l - 7 0 0 . UAI T I M O H L. MD ?. l ? O DIF LCT 0 1/ \ I _ ; (Ii l 0) 57 6, - 12 8 0 M ORIL F : (443) 857 - 1 i :J:J E· M / \ IL !',0 lJ L G IN @ (i ,Ff_'!LA W .C O 1.31 0 : )JTTP:/ C,/ VW W . G F R I AW.COM/ / \ NDli.f_'N C!U L.G I N/ GORDC)N • F E I NBLATT, 1,c 1 \ tT 1 rn : - .: 1 : Y 5 , \ T I \ \ \ ' ----------- · - ----- The infomation supplied i n this me ssa g e rnay be legally privileged . If you a re ll1 e i ntended recip i ent of th is message, the sender does no t in t end d e liv ery lo you to wa iv e any priviloge or righ t pertaining to t his message. If y o u h ave rece i ved this message in e rror, please immediately notify the se nder by return e - mail , and de l ete th e errant me ssage . Th , mk you. The information supplied in thi s m ess a ge may be l ega lly privile ged . If you are th e i nt e nded rnc 1 pient o f this message, the sender doe s not i nt e nd d e liv er y t o y ou to waive a ny privil ege or righ t p e r t a ining to thi s messngc . If you have rece iv ed this messc,ge in e rror . p l ease immedi ate ly notify t he sende r l)y return e - mai l , and rlelete the e rr ant message . Tli rn 1 k you . - Theinform ation supplied in this me ssa ge may be l e gally privileg e d. If you are the int e nd e d r ec ip i ent of this m essage, the sender doe s not int e n d del iv e ry lo you to waive an y privile g e or right p erta inin g to t h i s message. If you hav e r ece iv ed this message in erro r , please Immediately notify th e se nder by retuni e - mail. and delete th e e rrant me ssage. Thank you. · ---- · - · ------- The inform a ti on s upplied in th is m ess ag e may be l egally pr ivi l eged. If you are t he in t ended recip ie n l of t his message. the sender doe s no t i n tend d e livery to you to waive an y pr ivil e g e o r ri gh t pertaining to this m essage. If you have received this me ssa ge in e rror, please imm e di a t e ly notify th e se nder by r etu rn e - mail , and dele te the e rr a nt message. Thank yo11. 6

 

EX - 3. 1 2 firstamendmenttotheby l awso.htm EX - 3.1 FIRST AMENDMENT TO THE BYLAWS OF SILVER STAR PROPERTIES REIT, INC. a Maryland corporation This FIRST AMENDMENT TO THE BYLAWS ("First Amendment") of SILVER STAR PROPERTIES REIT, INC . (F/K/A HARTMAN SHORT TERM INCOME PROPERTIES XX , INC . ), a Maryland corporation (the "Company") i s entered into and effective as of August 28 , 2023 , by the Executive Committee (the "Committee " ) of the Board of Directors ("Board") of the Company exercising its decision - making power of the Board . A ll defined terms not defined herein sha ll have the meaning ascribed to them in the By l aws (as defined below) . RECITALS: WHEREAS, the Company is governed by the bylaws of the Company effective as of March 30 , 2009 (t h e "Bylaws"); · WHEREAS , pursuant to Article XIV of the Bylaws the Board of Directors may adopt, a lt er or repeal t h e Bylaws; and WHEREAS , the Committee wishes to a lt er the By l aws as stated h erein . AGREEMENT: NOW , THEREFORE , the By l aws a r e hereby amended as fo ll ows : 1. Artic l e II, "Meetings of Stockho ld ers", Section 2 , "Annua l Meeting " sha ll be deleted in it s entirety and replaced with : "The stockholders sha ll e l ect directors and transac t any bus in ess within the pow e rs of the Corporat i on either (i) in person at an annua l meet in g, which may be accomp li shed telephonically or r emote l y v i a the int ernet , or (i i ) without a meeting , if a consent in writing or by e l e ctron i c transmission to such action i s given by a quorum of the stockho ld ers , at th e discretion of the Board of Directors . " 2. Article II , "Meetings of Stockho ld ers", Section 4 , "Notice" sha ll be ame n d e d to a ll ow notice to be s ent e l ec tronica ll y and such notice s h a ll be d eemed delivered immediately after send in g to th e stockho l der 's ema il address ofr ecord . [Signatures appear on the following page] EXHIBIT 3

 

IN WITNESS WHEREOF, this First Amendment has been executed by the parties hereto. I s Gerald Haddock Gerald Haddock, Executive Cha irman Is Jack Tompkins Jack Tompkins, Director /s Jam es Still Jame s Still, Director

 

GORDON· FEINBLATfi \ c AT T O RN EY S AT L A \ \ ' ANDREWD. BlJJ .G I N PLIO: -- IE/FAX 410.576.4280 a b u l gi o @gf rl aw . com 1001 l' I. EETSI R EEI" St :1 n:; 700 13A l : I I MOllE, MD 21202 - 41 4 6 410 . 576.4000 www .g frla,,·. m c 1, i \ .ugust 25, 2023 VIA EMAIL (m racus i n(7i ) hi - rc i t.com ) Michael R ac u si n, Esquir e Senior Vice President and Genera l Co u nse l Silver Star P roperties R E I T, In c. 2909 H illc roft, Suite 420 Houston, T X 77057 R e: Har t ma n Entit i es · Books and R eco rd s D ema n d D ea r Mr. Racusin: As you know , t hi s firm represents Alle n R . Hartman , Hartman vREIT XX ! , In c . ('' vRE I T"), and ce rt a in of their related e nti tie s . Based on the nu mber of i ssued and o ut sta ndin g s har es of com m on s t oc k of S ilver Star Properties R E IT , In c., a Maryland corporat i on (''S il ver S t a r "), reported in Si l ver Sta r 's m ost r ecen t Quarterly Repo r t o n Fo1m 1 0 - Q filed w i th th e Sec uri t ie s and Exc h ange Co mmi ss ion on August 11, 2023, Mr. Hartman and vR.EIT arc t h e r eco rd o wners of, in t he a ggreg at e, at l east 5% o f th e issued and o u tstand in g sha r es of S i lve r Star 's co mm on stoc k , and t hey ha ve held suc h s har es for at leas! six months. Although S ilv er Sta r ' s s t ock r eco rd s s h ould b e sufficien t t o es t a b li sh the forego i ng ow n e r s hi p assertion, we have att a c h ed h e r e to cer ti fi c ati o n s by Mr. Ha tt m a n a nd v R E I T as to t hei r record owne r ship of th e commo n s tock. Pu r s u a nt lo Sect i on 2 - 5 I 3 of t he M ary l a nd G e n e ral Corporat i o n Law (t he " MGC L " ), Mr. Ha rt man and vRE I T h e r e b y r eq u est a copy of S ilv er Sta r 's stoc k l edger or, in th e even t that Si l ver Star does n o t ma i nta in the original or a duplicate s t ock ledger at its principal office, a list of Silver Star's stockholders that in c lude s th ei r nam es a nd contac t in fonn a ti on from Si l ve r Star ' s transfer age nt. In accor dan ce w ith MGCL Sec t i on 2 - 513(c), the foregoing records mu s t be made availab l e wi thin 20 d ays of t h e dale h ereof (i.e., b y Septembe r 14, 2023), a n d we re q uest that it be made avai labl e by e l ect ro ni c tran smissio n se n t t o t he und ers i g n e d. T h is letter s h ould n ot be construed us n reques t under Rule I 4a - 7 of th e Sec u rities and Exc han ge Act of 19 3 4 , as amended , alt hou gh t h e Hartman Entities reserve all rights to r equest stoc kh olde r in fon n ation pursuant lo suc h rule . EXHIBIT 4

 

GORDON. FEINBLATI , L ( ATn rnNH .11 1 " , ' I Michael Racu s i n, Esqu ire AugusL 25, 2023 P age 2 We thank you in advan ce fo r your prom pt attention to th is matter. Si n cere l y, I n Oocu S l gnad b y : A J And r ew D . Bulgin cc: Mr. Allen R. H a 1t m an (via e - m ail) J e 1rnld A. Th r ope, E s q. (via email)