| A.   | THP owns and operates the Tucson InnSuites Best Western Hotel & Suites, a 159-unit hotel in Tucson, Arizona (the “Property”). |
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| B.   | THP is currently owned 100% by RRF and RRF LP LLC owned 100% by RRF. |
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| C.   | Rare Earth and RRF wish to restructure THP creating Class A, Class B and Class C Limited Partnership Interests (referred to collectively as “Interests”), and cause THP to offer and sell 160 (or more not to exceed 232) Class A Interests in THP to accredited investors at $10,000 per interest for $1,600,000 (The offer may allow sale of up to 232 units for $2,320,000) (the “Offering”).  Rare Earth, as the new GP of THP, will coordinate the offering and sale of Class A Interests to third parties.  Rare Earth and other Affiliates may purchase Interests under the offering. |
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| D.   | As a part of the restructuring, RRF would exchange its current Membership Interests in THP for 400 Class B Interests in THP. (subject to adjustment based on an independent appraisal) |
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|   | REF may purchase up to 62 THP Class C Interests in THP.  Proceeds from the Offering will be used in part to redeem Class B Interests, and may be used in part to redeem Class C Interests. |
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|  (a) |  Elect REF as GP (RRF may or may not continue to be Co-GP)  REF to have final GP decision authority. |
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| (b)   | Create three classes of Partnership Interests authorized for issuance in amounts sufficient to accommodate the offering and the restructuring issuances to Rare Earth and RRF, and provide for distribution and liquidation rights and preferences as described in Section 3 and 6 below and the exchange provided for in Recital D above; and |
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| (c)   | Name Rare Earth as GP with initial subscription for up to 32 Class C units. |
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|                                 | Immediately Upon Restructuring    | In the Event of SaleOf 160 Class A Interests | In the Event of Sale of 232 Class A Interests |
|--------------------------------------|----------------------------------------|----------------------------------------------|-----------------------------------------------|
| Owners                               | Interests                              | Interests                                    | Interests                                     |
| Third Parties                        |    0 Class A            | 160 Class A                                  | 232 Class A                                   |
|  RRF                            |   400 Class B                |  243 Class B                            | 171 Class B                                   |
|  Rare Earth                     |    0 Class C            |   32 Class C                       |  62 Class C                              |
|  Authorized & Unissued |       65 |   30                               |       0         |
|  Total                          |     465            | 465                                          |     465                   |