SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant x
Filed by a Party other than the Registrant ¨
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| ¨ | Preliminary Proxy Statement |
| ¨ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
| ¨ | Definitive Proxy Statement |
| x | Definitive Additional Materials |
| ¨ | Soliciting Materials Pursuant to Rule 14a-11(c) or Rule 14a-12 |
DSI Realty Income Fund XI
(Name of Registrant as Specified In Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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| x | No fee required. |
| ¨ | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
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| (3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it is determined): |
| (4) | Proposed maximum aggregate value of transaction: |
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| ¨ | Fee paid previously with preliminary materials. |
| ¨ | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing fee for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
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| (4) | Date Filed: |
IMPORTANT NOTICE
From Your General Partners...
| DSI Realty Income Funds A California Limited Partnership 6700 E. Pacific Coast Hwy. #150 Long Beach, CA 90803 |
CONSENT SOLICITATION STATEMENT SUPPLEMENT
Dear Partner:
On May 12, 2003, we mailed to you definitive proxy statements soliciting your consent to an amendment of your limited partnership agreements. The proposed amendments (“Proposal”) would institute a review period of ten days in connection with any proposed offers to purchase limited partnership units. In addition, it would provide the General Partners with a right to match or exceed the proposed offers. The purpose of the Proposal is to permit the General Partners to provide relevant information to the limited partners concerning offers for limited partnership units and to permit the General Partners to match or exceed the price.
The Dissident Limited Partners who have sued to enjoin the Proposal, and have sent you letters dated May 23, 2003 and May 30, 2003, have suggested that the following will occur if the Proposal is approved, which we provide for your consideration:
| ¨ The | partnership units will become harder, or impossible, to sell to anyone but the General Partners. |
| ¨ You | will no longer have the option to sell your partnership units on secondary market services. |
| ¨ Potential | buyers will not make offers to purchase limited partnership units if the General Partners have a right of first refusal. |
| ¨ The | Proposal will remove all ways of getting out of this investment other than selling to the General Partners. |
| ¨ The | General Partners will benefit from the Proposal and thus have a conflict of interest. |
| ¨ The | value of partnership units will decrease. |
Although we do no believe that these risks are likely to occur, you should consider them in making your decision to consent to or reject the Proposal. Please be assured that we expect to continue to provide our investors a high rate of income and appreciate the opportunity to serve your investment needs, and therefore encourage you to vote “FOR” the Proposal. You should read this consent solicitation statement supplement in conjunction with the definitive consent solicitation statements you have received. We invite you to call your DSI Representative or the General Partners’ Office with any questions you may have at (800) 732-1733.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Supplement may contain certain forward-looking statements and you are cautioned not to place undue reliance upon such statements.