April 15, 2025

Top 6 Reasons to Vote for the Replacement of the Board

There are a lot of emails being sent by Silver Star that are confusing and misleading as Gerald Haddock tries to put a positive spin on his mismanagement. To cut through the noise, below are six truths that make the whole process very clear.

1. We won the lawsuit in Maryland state court in November. The judge ruled that Silver Star must have a shareholder meeting before July 21st, to vote on the liquidation of the company.

2. The value of the company has dropped 70% under Haddock’s leadership. He sold over 25 properties in a little over a year, mostly in 2024, at fire sale prices that were as low as 27% of what they had them in the books for at the time.

3. Occupancy dropped like a rock under Haddock’s management. He fired all the leasing agents and property managers and the marketing people, so it is not

surprising that the occupancy dropped so dramatically. Since Silver Star is very

opaque and delinquent in their SEC-required disclosures, we can’t tell you the exact occupancy numbers but I can give you some typical examples. They lost 6 floors of Galan Nursing at the OTC property, and they then turned around and hired the same broker that pulled the tenant out of the building to re-lease the space she had just vacated. Another example is Gulf Interstate that went from about 90% occupancy to about 20% occupancy when the Anchor tenant moved out.

4. Last week Haddock awarded himself 1 million shares of stock. His employment agreement calls for him to be awarded another 2 million shares of stock, under certain circumstances. This totals almost 5% of the company and about $6 million dollars in value. Fortunately, dilution of your interests through the award of additional shares to Haddock can be prevented by removing him from the board and terminating his employment agreement.

5. When we take over the company, our plan for liquidation will be to put the

Walgreens and mini storage properties on the market immediately and start

returning capital to you this year. The legacy assets that remain will be leased up

and sold in an orderly fashion.

6. You will soon be getting a proxy card from Silver Star that will ask you to vote for a replacement board of directors so that we can remove the board and stop the methodical destruction of the company.

Thank you very much for your support. I appreciate each and every one of you. God bless you. Happy Easter! God will deliver the victory!

Sincerely,

Al Hartman