As previously disclosed in a Current Report on Form 8-K filed by Whitestone REIT (the “Company”) with the Securities and Exchange Commission on May 14, 2021, at the Company's 2021 Annual Meeting of Shareholders held on May 13, 2021, Jack L. Mahaffey was reelected by a plurality of votes cast, but received more votes "withheld" from his election than "for" his election. In accordance with the Corporate Governance Guidelines adopted by the Board for plurality voting with majority resignation standard, Mr. Mahaffey tendered his conditional resignation to the Board on May 13, 2021. Pursuant to the Corporate Governance Guidelines, the Nominating and Corporate Governance Committee (the "Committee") of the Board considered Mr. Mahaffey's tendered resignation and made a recommendation to the full Board whether to accept or reject the conditional resignation. Mr. Mahaffey did not participate in the deliberations of the Committee or of the Board. In determining whether to accept or reject Mr. Mahaffey's conditional resignation, the Committee and the Board considered a number of factors relative to the best interests of the Company and its shareholders, including the following: Mr. Mahaffey’s significant contributions to the growth, governance, and stability of the Company throughout his tenure as trustee since 2000; the value of Mr. Mahaffey’s institutional knowledge, expertise and familiarity with the Company’s business resulting from such tenure; Mr. Mahaffey’s past roles as the Chairman of various committees of the Board; the overall performance of the Company during Mr. Mahaffey’s tenure as a trustee and his commitment to the continued success of the Company; the composition, needs and makeup of the Board, including the mix of talent, skill and experience represented; the overall benefits derived, and to be derived, by the Board and Company management from Mr. Mahaffey’s participation in and contributions to Board discussions; and the difficulty of replacing Mr. Mahaffey’ experience and expertise on the Board. After consideration and discussion of all these factors, the Board determined that the resignation of Mr. Mahaffey would be detrimental to, and not in the best interests of, the Company and its shareholders. The Board unanimously voted on July 15, 2021, to decline Mr. Mahaffey’s offer of resignation. Accordingly, Mr. Mahaffey will continue to serve as a trustee of the Company until the Company’s 2022 Annual Meeting of Shareholders or until Mr. Mahaffey’s successor is duly elected and qualified or his earlier resignation or removal. On July 15. 2021, Mr. Mahaffey notified the Board that he will not stand for re-election at the conclusion of his present term. Mr. Mahaffey’s decision not to stand for re-election was not related to any disagreement with the Company. The Board is mindful of the results of our 2021 Annual Meeting and intends to re-affirm its commitment to the evolving corporate governance standards sought by certain of our larger institutional shareholders and proxy advisory organizations. As a result, the Board has determined to, among others: (i) conduct a shareholder outreach program to understand and discuss shareholder concerns and (ii) appoint David F. Taylor, the Company’s Lead Independent Trustee, to replace Mr. Mahaffey as chairman of the Committee effective as of July 15, 2021.