SECURITIES
PURCHASE AGREEMENT


 


This
Securities Purchase Agreement (this “Agreement”) is dated as of February 28, 2017, between InnSuites Hospitality
Trust, an Ohio unincorporated real estate investment trust (the “Trust”), and each purchaser identified on
the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively, the
“Purchasers”).


 


WHEREAS,
subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933,
as amended (the “Securities Act”), the Trust desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Trust, securities of the Trust as more fully described in this Agreement.


 


NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration
the receipt and adequacy of which are hereby acknowledged, the Trust and each Purchaser agree as follows:


 


1.
On February 28, 2017 or another date that is mutually acceptable to the parties (the “Closing Date”), upon
the terms and subject to the conditions set forth herein, the Trust agrees to sell, and the Purchasers, severally and not
jointly, agree to purchase hereunder, (i) that aggregate number of Shares of Beneficial Interest of the Trust set forth on
such Purchaser’s signature page hereto (the “Shares”) (which aggregate number of Shares for all
Purchasers shall be 111,111, at a purchase price of $1.80 per Share and the aggregate principal amount set forth on such
Purchaser’s signature page hereto (the “Subscription Amount”). Each Purchaser shall deliver to the
Trust, via wire transfer, certified check of immediately available funds, or another method acceptable to the Trust, an
amount equal to such Purchaser’s Subscription Amount as set forth on its signature page hereto. Upon satisfaction of
the covenants and conditions set forth herein, the closing of the transactions contemplated herein (the
“Closing”) shall occur at the offices of the Trust or such other location as the parties shall mutually
agree.


 


2.
Representations and Warranties of the Purchasers. As of the date hereof and as of the Closing Date, each of the Purchasers
hereby represents and warrants to the Trust as follows:


 


(a)
The Purchaser is agreeing to purchase the Shares solely for the Purchaser’s own account and for investment and not with
a view toward the distribution thereof. The Purchaser understands that the Shares which the Purchaser is purchasing will not
be registered under the Securities Act or applicable state securities laws and, therefore, cannot be resold unless registered
under the Securities Act and applicable state securities laws, or unless an exemption from registration is available. The
Purchaser acknowledges that because of the restrictions on the transferability of the Shares, the Purchaser must bear the
economic risk of the Purchaser’s investment in the Shares.


 


(b)
The Purchaser has read carefully and is familiar with the Trust’s filings with the Securities and Exchange Commission
(the “Commission”), including its last annual report on Form 10-K and subsequent quarterly reports on Form
10-Q, and understands the contents thereof, including the risks associated with an investment in the Shares; the Purchaser
has been provided the opportunity, to the Purchaser’s satisfaction, to ask questions and receive answers concerning the
terms and conditions of the offering of the Shares; all of the Purchaser’s questions have been answered to the
Purchaser’s satisfaction; and the Purchaser has been supplied with all additional information requested and deemed
necessary by the Purchaser to make an investment decision with respect to the Shares.


 




    	 	 	 



    	 



    


 


(c)
The Purchaser presently qualifies as an “accredited investor” as such term is defined in Rule 501 under the
Securities Act.


 


(d)
Except as set forth in the Trust’s filings with the Commission, the Purchaser is not an “affiliate” of the
Trust (it being understood that an “affiliate” means any person or entity that, directly or indirectly
through one or more intermediaries, controls or is controlled by or is under common control with a person as such terms are
used in and construed under Rule 405 and Rule 144 under the Securities Act).


 


(e)
The Purchaser: (i) is familiar with investments of this type and has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the
Shares; (ii) does not have an overall commitment to investments that are not readily marketable that is disproportionate to
the Purchaser’s net worth, and the Purchaser’s investment in the Shares will not cause such overall commitment to
become excessive; and (iii) has adequate net worth and means of providing for the Purchaser’s current needs and
personal contingencies to sustain a complete loss of the Purchaser’s investment in the Shares.


 


(f)
The Purchaser is fully aware that the Shares are being issued and sold in reliance upon the exemption provided for by Section
4(a)(2) of the Securities Act and similar exemptions provided under state securities laws on the grounds that no public
offering is involved and that the representations, warranties and agreements set forth in this Agreement are essential to the
claiming of such exemptions.


 


(g)
The Purchaser: (i) is purchasing the Shares with the Purchaser’s own funds and not with the funds of any other person,
firm or entity; (ii) is acquiring the Shares for the Purchaser’s own account; and (iii) has no reason to anticipate a
change in personal circumstances, financial or otherwise, that would cause the Purchaser to sell or distribute, or
necessitate or require any sale or distribution of, the Shares, and no other person, firm or entity has or will have any
beneficial interest in the Shares.


 


(h)
The Purchaser will cooperate in filing, or authorizing the filing on the Purchaser’s behalf, of any report or form
required by the Commission or any state securities agencies to be filed in connection with the purchase of the
Shares.


 


(i)
The person(s) executing this Agreement, has the right, power, authority and capacity to sign and deliver this Agreement and
perform all obligations hereunder on behalf of the Purchaser. The Purchaser understands, represents and warrants that this
Agreement is binding on the Purchaser and enforceable in accordance with its terms.


 


(j)
The Purchaser, if a business entity, represents and warrants that the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized by the Purchaser. The Purchaser, if a business
entity, was not formed for the specific purpose of acquiring the Shares to which this Agreement relates.


 




    	 	 	 



    	 



    

 


(k)
The Purchaser is presently a bona fide resident of the state set forth on the signature page hereof and the address set forth
thereon is the Purchaser’s true and correct residence. The Purchaser has no present intention of becoming a resident of
any other state or jurisdiction.


 


(l)
The Purchaser understands that nothing in this Agreement or any other materials presented to the Purchaser in connection with
the purchase and sale of the Shares constitutes legal, tax or investment advice. The Purchaser has consulted such legal, tax
and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of
the Shares.


 


(m)
The Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented
at any seminar or any other general solicitation or general advertisement. The Purchaser has had a pre-existing relationship
with the Trust prior to contemplating an investment contemplated herein.


 


(n)
Purchaser acknowledges that he is a sophisticated investor familiar with investments of this type and assumption of investment
risks associated therewith and further acknowledges that the Trust is entering into this Agreement with Purchaser in reliance
on this acknowledgment and with Purchaser’s understanding, acknowledgment and agreement that the Trust is in possession
of material non-public information regarding the Trust (the “Non-Public Information”), which Non-Public Information
may be material to a reasonable investor, such as Purchaser, when making investment decisions, including the decision to enter
into this Agreement, and Purchaser’s decision to enter into this Agreement is being made with full recognition and acknowledgment
that the Trust is in possession of the Non-Public Information that it has not disclosed to Purchaser.


 


(o)
Purchaser hereby acknowledges that he has reached his own decision to buy the Shares relying exclusively on his own due diligence
review, notwithstanding the Trust’s possession of, and nondisclosure of, the Non-Public Information. Purchaser (i) waives
any claim, or potential claim, he has or may have against the Trust or its affiliates, successors or assigns relating to the Non-Public
Information, (ii) is aware of the effects of such waiver, and (iii) is willing to proceed with the purchase of the Shares on this
basis.


 


(p)
Purchaser specifically acknowledges that the Trust has not released its financial results for the fourth quarter of, or full year
for, its fiscal year ended January 31, 2017, and that any such release may include information that could be material to a reasonable
investor, such as Purchaser. Purchaser has determined to purchase the Shares pursuant to this Agreement expressly acknowledging
that the Trust has not yet released such financial results.


 




    	 	 	 



    	 



    

 


(q)
Purchaser agrees and acknowledges that the provisions of this Section are being provided by Purchaser expressly for the benefit
of the Trust and its affiliates, successors and assigns.


 


3.
Representations and Warranties of the Trust. As of the date hereof and as of the Closing Date, the Trust hereby represents
and warrants to each of the Purchasers as follows:


 


(a)
The Trust is an entity duly organized, validly existing and in good standing under the laws of the State of Ohio, with the
requisite power and authority to perform its obligations under this Agreement and to consummate the transactions contemplated
hereby.


 


(b)
Subject to Section 4(a)(C) hereof, (i) the Trust has the requisite power and authority to enter into and perform its
obligations under this Agreement; (ii) the execution, delivery and performance of this Agreement have been duly authorized by
all necessary action on the part of the Trust; and (iii) assuming the due authorization, execution and delivery by each of
the Purchasers, this Agreement will, when executed, constitute valid and binding obligations of the Trust in accordance with
its terms.


 


(c)
The Trust currently has an unlimited number of Shares of Beneficial Interest available for issuance under its Declaration of
Trust. As of December 14, 2016, the Trust has 9,678,495 Shares of Beneficial Interest issued and outstanding.


 


(d)
Subject to Section 4(a)(C) hereof, the Shares issuable to the Purchasers pursuant to this Agreement have been duly authorized
and, when issued to the Purchasers pursuant to this Agreement, will be validly issued, fully paid and nonassessable and free
and clear of any and all encumbrances (other than restrictions upon transfer imposed by applicable securities laws). Assuming
the accuracy of the representations of the Purchasers set forth in this Agreement, the Shares issuable to the Purchasers
hereunder will be issued in compliance with all applicable federal and state securities laws.


 


4.
Closing Conditions. 


 


(a)
The obligations of the Trust hereunder in connection with the Closing are subject to the following conditions being
met:


 


a. The
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers
contained herein;


 


b. All
obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have
been performed; 


 


c. The
approval by the NYSE MKT of the Trust’s additional listing application
regarding the aggregate number of the Shares to be issued to the Purchasers in this offering shall have been obtained;
and


 




    	 	 	 



    	 



    

 


d.
The delivery by each Purchaser of the signed copy of this Agreement and the Subscription Amount.


 


(b)
The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions
being met:


 


a. The
accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Trust
contained herein;


 


b. All
obligations, covenants and agreements of the Trust required to be performed at or prior to the Closing Date shall have been
performed;


 


c. The
approval by the NYSE MKT of the Trust’s additional listing application
regarding the aggregate number of the Shares to be issued to the Purchasers in this offering shall have been obtained;
and


 


d. The
delivery by the Trust of the signed copy of this Agreement and the stock certificates for the Shares. 


 


5.
Each of the Purchasers, severally and not jointly, agrees to indemnify and hold harmless the Trust and its founders,
trustees, officers, agents, attorneys, representatives and other shareholders from any and all losses to any of them arising
out of the breach of any of such Purchaser’s agreements, representations or warranties set forth in this Agreement. All
representations, warranties and agreements contained in this Agreement and the indemnification contained in this section
shall survive the purchase and sale of the Shares.


 


6.
Each of the Purchaser’s understands that this Agreement is binding on the Purchaser, and any heirs, personal
representatives, successors or assigns of the Purchaser, and may not be canceled, revoked, transferred or assigned by the
Purchaser or by any of them. This Agreement may only be amended by prior written agreement between the Trust and the
Purchaser.


 


7.
Certificates for the Shares shall bear a legend substantially in the following form:


 


THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (II) PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AS EVIDENCED
BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, THE SUBSTANCE
OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE TRUST.


 


8.
This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and supersedes all
prior agreements and understandings, oral or written, with respect to such matters. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and
shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they
would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.


 


9.
This Agreement will be governed by and construed in accordance with the laws of the State of Ohio, notwithstanding any
conflict of law provision to the contrary. Any dispute or disagreement related to this Agreement or the purchase of the
Shares by the Purchasers shall be heard by a state or federal court located in Cleveland, Ohio, and the Purchaser hereby
expressly waives the Purchaser’s right to object to such venue on the grounds of lack of personal jurisdiction or forum non-conveniens.


 


10.
REF hereby provides an option for 3 months ending June 1, 2017 for IHT to repurchase the REF shares at the original
price.


 


[Signature
Page Follows]


 




    	 	 	 



    	 



    

 


IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement, which may be executed in one or more counterparts, as
of the date set forth above.


 


	INDIVIDUALS
    SIGN HERE:	Subscription
    Amount:	$100,000
	 	 	 	 
	Sign
    Here:	/s/
    Charles Strickland	Number
    of Shares:	55,556
	Print
    Name:	Charles
E. Strickland	 	 



 


	ENTITIES
    SIGN HERE:	 	 
	 	 	Address:	3910
    Americe Court Oceanside, CA. 92056
	Name
    of Entity:	N/A	 	
	Sign
    Here:	

        N/A
		
	Print
    Name:	N/A
		 
	Title:	

        N/A
	 	 
	 	 	 	 
	Accepted
    by:	 	 
	 	 	 	 
	INNSUITES
    HOSPITALITY TRUST	 	 
	 	 	 	 
	Sign
    Here:	/s/
    AdamRemis	 	 
	Print
    Name:	Adam
Remis, CFO
	 	 
	Title:	

        Executive
	 	 


 




    	 	 	 



    	 



    

 


IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement, which may be executed in one or more counterparts, as
of the date set forth above.


 


	INDIVIDUALS
    SIGN HERE:	Subscription
    Amount:	$100,000
	 	 	 	 
	Sign
    Here:	N/A	Number
    of Shares:	55,556
	Print
    Name:	N/A	 	 



 


	ENTITIES
    SIGN HERE:	 	 
	 	 	Address:	1625
    E Northern Ave, Suite #105 Phoenix, AZ 85020
	Name
    of Entity:	Rare
    Earth Financial, LLC	 	
	Sign
    Here:	/s/
James Wirth
	 	
	Print
    Name:	James
Wirth
	 	 
	Title:	CEO
	 	 
	 	 	 	 
	Accepted
    by:	 	 
	 	 	 	 
	INNSUITES
    HOSPITALITY TRUST	 	 
	 	 	 	 
	Sign
    Here:	/s/
AdamRemis	 	 
	Print
    Name:	Adam
Remis, CFO
	 	 
	Title:	

        Executive