<SEC-DOCUMENT>0001144204-16-111180.txt : 20160701
<SEC-HEADER>0001144204-16-111180.hdr.sgml : 20160701
<ACCEPTANCE-DATETIME>20160701154432
ACCESSION NUMBER:		0001144204-16-111180
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160701
DATE AS OF CHANGE:		20160701
GROUP MEMBERS:		JOHN PETRY
GROUP MEMBERS:		SESSA CAPITAL GP, LLC
GROUP MEMBERS:		SESSA CAPITAL IM GP, LLC
GROUP MEMBERS:		SESSA CAPITAL IM, L.P.

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Ashford Hospitality Prime, Inc.
		CENTRAL INDEX KEY:			0001574085
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				462488594
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	005-87737
		FILM NUMBER:		161746807

	BUSINESS ADDRESS:	
		STREET 1:		14185 DALLAS PARKWAY
		STREET 2:		SUITE 1100
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254
		BUSINESS PHONE:		(972) 490-9600

	MAIL ADDRESS:	
		STREET 1:		14185 DALLAS PARKWAY
		STREET 2:		SUITE 1100
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75254

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Sessa Capital (Master), L.P.
		CENTRAL INDEX KEY:			0001618360
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			E9
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		SC 13D/A

	BUSINESS ADDRESS:	
		STREET 1:		1350 AVENUE OF THE AMERICAS
		STREET 2:		SUITE 3110
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		212-257-4410

	MAIL ADDRESS:	
		STREET 1:		1350 AVENUE OF THE AMERICAS
		STREET 2:		SUITE 3110
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
</SEC-HEADER>
<DOCUMENT>
<TYPE>SC 13D/A
<SEQUENCE>1
<FILENAME>v443506_sc13da.htm
<DESCRIPTION>SC 13D/A
<TEXT>
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Schedule 13D</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Under the Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Amendment No. 12)*</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>Ashford Hospitality Prime, Inc.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Name of Issuer)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>Common Stock, $0.01 par value per share</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Title of Class of Securities)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>044102101</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(CUSIP Number)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Thomas R. Stephens</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Bartlit Beck Herman Palenchar &amp; Scott
LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">1899 Wynkoop Street, Suite 800</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Denver, Colorado 80202</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>(303) 592-3100</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Name, Address and Telephone Number of Person</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Authorized to Receive Notices and Communications)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><U>June 28, 2016</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Date of Event which Requires Filing of
this Statement)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If the filing person has previously filed
a statement on Schedule&nbsp;13G to report the acquisition that is the subject of this Schedule&nbsp;13D, and is filing this schedule
because of &sect;&sect; 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. <FONT STYLE="font-family: Wingdings">&#168;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Note: Schedules filed in paper format shall
include a signed original and five copies of the schedule, including all exhibits. See Rule&nbsp;13d-7 for other parties to whom
copies are to be sent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">*The remainder of this cover page shall
be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any
subsequent amendment containing information which would alter disclosures provided in a prior cover page.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The information required on the remainder
of this cover page shall not be deemed to be &quot;filed&quot; for the purpose of Section&nbsp;18 of the Securities Exchange Act
of 1934 (&quot;Act&quot;) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other
provisions of the Act (however, see the Notes).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&#9;(Continued on following pages)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUSIP No. 044102101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Names of Reporting Persons.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Sessa Capital (Master), L.P.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check the Appropriate Box if a Member of a Group (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp; &nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font: 10pt Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC Use Only</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">4.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Source of Funds (See Instructions)&nbsp;&nbsp;&nbsp;OO</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">6.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Citizenship or Place of Organization:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cayman Islands</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Beneficially</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Voting Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Owned by </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Each</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reporting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Person With</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 60%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 34%; border-top: Black 1pt solid; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">11.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; padding-left: 0.375in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.</FONT></TD>
    <TD STYLE="width: 94%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">13.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;8.2%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">14.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Type of Reporting Person (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;PN</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUSIP No. 044102101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Names of Reporting Persons.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Sessa Capital GP, LLC</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check the Appropriate Box if a Member of a Group (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp; <FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="font: 10pt Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC Use Only</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">4.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Source of Funds (See Instructions) &nbsp;&nbsp;&nbsp;&nbsp;AF</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">6.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Citizenship or Place of Organization:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Beneficially</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Voting Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Owned by</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Each</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reporting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Person With</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 60%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 34%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">11.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate Amount Beneficially Owned by Each Reporting Person</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0.375in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">12.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">13.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;8.2%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">14.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Type of Reporting Person (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;OO</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUSIP No. 044102101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Names of Reporting Persons.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Sessa Capital IM, L.P.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check the Appropriate Box if a Member of a Group (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(B) &nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC Use Only</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">4.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Source of Funds (See Instructions) &nbsp;&nbsp;&nbsp;AF</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">6.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Citizenship or Place of Organization:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Beneficially </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Voting Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Owned by </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Each</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reporting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Person With</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; border-top: Black 1pt solid; text-align: justify; text-indent: 0.375in">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"><FONT STYLE="font-family: Times New Roman, Times, Serif">11.</FONT></TD>
    <TD STYLE="width: 60%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate Amount Beneficially Owned by Each Reporting Person&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0.375in; width: 34%"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">12.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">13.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;8.2%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">14.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Type of Reporting Person (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;IA</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUSIP No. 044102101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Names of Reporting Persons.&nbsp;&nbsp;&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Sessa Capital IM GP, LLC</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check the Appropriate Box if a Member of a Group (See Instructions)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT></FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="margin: 0pt 0">(B)&nbsp; <FONT STYLE="font: 10pt Wingdings"><FONT STYLE="font-family: Wingdings">&#120;</FONT></FONT></P>


</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC Use Only</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Source of Funds (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;AF</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if Disclosure of Legal Proceedings is Required Pursuant
    to Items 2(d) or 2(e)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Citizenship or Place of Organization:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Beneficially</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Voting Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Owned by </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Each</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reporting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Person With</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 60%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 34%; border-top: Black 1pt solid; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">11.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate Amount Beneficially Owned by Each Reporting Person </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0.375in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%"><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 93%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;8.2%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Type of Reporting Person (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;OO</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUSIP No. 044102101</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 93%; border-top: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Names of Reporting Persons.&nbsp;&nbsp;&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">John Petry</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check the Appropriate Box if a Member of a Group (See Instructions)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&#168;</FONT>&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><P STYLE="margin: 0pt 0">(B) &nbsp;<FONT STYLE="font-family: Wingdings">&#120;</FONT></P>


</TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">3.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">SEC Use Only</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">4.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Source of Funds (See Instructions)&nbsp;&nbsp; AF</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">5.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if Disclosure of Legal Proceedings is Required Pursuant
    to Items 2(d) or 2(e)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">6.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Citizenship or Place of Organization:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United
    States</FONT></TD>
    </TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 6%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 36%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shares </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Beneficially</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">8.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Voting Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Owned by </FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Each</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">9.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reporting</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Person With</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">10.</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Shared Dispositive Power</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 60%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 34%; border-top: Black 1pt solid; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">11.&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Aggregate Amount Beneficially Owned by Each Reporting Person </FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify; text-indent: 0.375in"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,330,726</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; border-top: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 94%; border-top: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">12.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)&nbsp;&nbsp;&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">13.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;8.2%</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">14.&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Type of Reporting Person (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;IN</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in; text-align: justify">Items 4 and 7 of the statement on Schedule
13D relating to the Common Stock, $0.01 par value per share (the &ldquo;Shares&rdquo;) of Ashford Hospitality Prime, Inc., a Maryland
corporation (&ldquo;AHP&rdquo;) previously filed by (i) Sessa Capital (Master), L.P., a Cayman Islands exempted limited partnership
(&ldquo;Sessa Capital&rdquo;), as a result of its direct ownership of Shares, (ii) Sessa Capital GP, LLC, a Delaware limited liability
company (&ldquo;Sessa Capital GP&rdquo;), as a result of being the sole general partner of Sessa Capital, (iii) Sessa Capital IM,
L.P., a Delaware limited partnership (&ldquo;Sessa IM&rdquo;), as a result of being the investment adviser for Sessa Capital, (iv)
Sessa Capital IM GP, LLC, a Delaware limited liability company (&ldquo;Sessa IM GP&rdquo;), as a result of being the sole general
partner of Sessa IM, and (v) John Petry, as a result of being the manager of Sessa Capital GP and Sessa IM GP (Sessa Capital, Sessa
Capital GP, Sessa IM, Sessa IM GP and Mr. Petry are collectively referred to as the &ldquo;Reporting Persons&rdquo;), are hereby
amended as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Item 4. Purpose of Transaction</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">No change except for
the addition of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 28, 2016, AHP
and each of its directors, other than Monty Bennett, filed a motion for contempt against Sessa Capital in U.S. District Court for
the Northern District of Texas alleging that Sessa Capital violated the district court&rsquo;s injunction issued on May 20, 2016
by issuing two press releases, one on June 3, 2016 and one on June 14, 2016. Sessa Capital believes the motion to be without merit
and is part of the Ashford Group&rsquo;s ongoing campaign against the Reporting Persons. Sessa Capital intends to vigorously oppose
the motion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The district court&rsquo;s
order containing the injunction was filed as an exhibit to amendment 8 to this Statement on Schedule 13D. The district court&rsquo;s
order enjoined Sessa Capital from soliciting proxies for Sessa Capital&rsquo;s candidates for election to the AHP board or distributing
proxy materials regarding Sessa Capital&rsquo;s candidates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The press
releases were filed as exhibits to amendments 10 and 11, respectively, to this Statement on Schedule 13D. The June 3 press
release announced the action of the U.S. Court of Appeals for the Fifth Circuit to expedite the Reporting Persons&rsquo;
appeal of the May 20, 2016 district court order and the circuit court&rsquo;s decision not to delay AHP&rsquo;s annual
meeting of stockholders on June 10, 2016 or lift the district court&rsquo;s injunction prohibiting Sessa from soliciting
proxies on behalf of the Sessa candidates. The June 3 press release also stated that Sessa was urging AHP stockholders to
follow the recommendation of Institutional Shareholder Services to withhold their votes for all of AHP&rsquo;s incumbent
directors at the meeting. In the June 14 press release, Sessa Capital commented on the unprecedented rebuke delivered by AHP
stockholders at the June 10 meeting, in which AHP stockholders chose to withhold support rather than voting for the incumbent
AHP directors by a nearly 2:1 ratio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On June 29, 2016, the
Reporting Persons filed a motion to dismiss Ashford Inc.&rsquo;s suit purporting to allege that the Reporting Persons have tortiously
interfered with the advisory agreement between Ashford Inc. and AHP and committed civil conspiracy to tortiously interfere with
the agreement. Ashford Inc.&rsquo;s suit also requests as relief a declaration that the advisory agreement&rsquo;s termination
fee is valid and enforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Reporting Persons&rsquo;
memorandum in support of their motion to dismiss argues that (i) Ashford Inc.&rsquo;s claims are actually claims for alleged violations
of Sections 13(d) and 14(a) of the Securities Exchange Act of 1934, as amended, which Ashford Inc. lacks standing to bring, (ii)
Ashford Inc. failed to state claims for tortious interference and conspiracy, and (iii) the termination fee, which Ashford Inc.
describes as being &ldquo;hundreds of millions of dollars,&rdquo; is an illegal and unenforceable penalty under Texas law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of the motion
for contempt is attached as Exhibit 1 and incorporated by reference in this Item 4 in its entirety. The foregoing description of
the motion for contempt is qualified in its entirety by reference to such Exhibit, and the foregoing descriptions of district court&rsquo;s
order and the two press releases described above are qualified in their entirety by reference to the text of such injunction and
press releases as previously filed with this Statement on Schedule 13D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of the memorandum
in support of the motion to dismiss is attached as Exhibit 2 and incorporated by reference in this Item 4 in its entirety. The
foregoing description of the memorandum is qualified in its entirety by reference to such Exhibit,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Reporting Persons
intend to continue to monitor actions by AHP&rsquo;s board, and, depending on the outcome of the pending litigation, among other
factors previously reported in this Statement on Schedule 13D, will consider taking further action to protect their interests and
the interests of stockholders, which actions may involve plans or proposals of the type described in Item 4(a) through (j) of Schedule
13D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 7. Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The following documents are filed as exhibits
to this statement:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.75in; text-align: left">Exhibit 1</TD><TD STYLE="text-align: justify">Motion for Contempt for Violation of Preliminary Injunction
dated June 28, 2016 filed by Ashford Hospitality Prime, Inc., Douglas A. Kessler, Stefani D. Carter, Curtis B. McWilliams, W.
Michael Murphy, Matthew D. Rinaldi and Andrew Strong.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.75in; text-align: left">Exhibit 2</TD><TD STYLE="text-align: justify">Memorandum in support of defendants&rsquo; motion to
dismiss dated June 29, 2016.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Signature</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">After reasonable inquiry and to the best
of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 50%; padding-right: 0; padding-left: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date: June
30, 2016</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ John Petry</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 0; padding-left: 0; text-align: justify">John Petry, individually, as manager
of Sessa Capital GP, LLC, the general partner of Sessa Capital (Master), L.P., and as manager of Sessa Capital IM GP, LLC, the
general partner of Sessa Capital IM, L.P.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<!-- Field: Page; Sequence: 9 -->
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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES DISTRICT COURT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FOR THE NORTHERN DISTRICT OF TEXAS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DALLAS DIVISION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD HOSPITALITY PRIME, INC.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Plaintiff,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P., SESSA CAPITAL GP, LLC,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL IM, L.P., SESSA CAPITAL IM GP, LLC,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">JOHN E. PETRY, PHILIP B. LIVINGSTON, LAWRENCE A.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUNNINGHAM, DANIEL B. SILVERS and CHRIS D.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">WHEELER,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Defendants;</P></TD>
    <TD STYLE="width: 5%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="width: 45%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NO. 3:16-cv-00713-N</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">and</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD HOSPITALITY PRIME, INC.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Plaintiff,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P., SESSA CAPITAL GP, LLC,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL IM, L.P., SESSA CAPITAL IM GP, LLC,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">JOHN E. PETRY, PHILIP B. LIVINGSTON, LAWRENCE A.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CUNNINGHAM, DANIEL B. SILVERS and CHRIS D.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">WHEELER,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Defendants;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Counterclaim-Plaintiff;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD HOSPITALITY PRIME, INC.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Counterclaim-Defendant;</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">NO. 3:16-cv-00527-N</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<!-- Field: Page; Sequence: 10 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; border-top: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Third-Party Plaintiff,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD INC., ASHFORD HOSPITALITY ADVISORS LLC,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">MONTY J. BENNETT, DOUGLAS A. KESSLER, STEFANI D.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CARTER, CURTIS B. MCWILLIAMS, W. MICHAEL</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">MURPHY, MATTHEW D. RINALDI, and ANDREW</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">STRONG,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Third-Party Defendants.</P></TD>
    <TD STYLE="width: 5%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
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    <TD STYLE="width: 45%; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 39.7pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PLAINTIFF COUNTERCLAIM-DEFENDANT ASHFORD
PRIME&rsquo;S</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>MOTION FOR CONTEMPT FOR VIOLATION
OF PRELIMINARY INJUNCTION</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Plaintiff Counterclaim-Defendant
Ashford Hospitality Prime, Inc. (&ldquo;Ashford Prime&rdquo; or the &ldquo;Company&rdquo;) and Third Party Defendants Douglas A.
Kessler, Stefani D. Carter, Curtis B. McWilliams, W. Michael Murphy, Matthew D. Rinaldi and Andrew Strong respectfully submit this
motion to hold Sessa Capital (Master), L.P. (&ldquo;Sessa&rdquo;) in contempt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 186.05pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>INTRODUCTION</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Ashford Prime has been
forced to bring this motion to stop Sessa from perpetuating its pattern of flouting the Court&rsquo;s clear instructions, including
Sessa&rsquo;s improper continuation of its unlawful campaign for the Company&rsquo;s board of directors and disruption of the Company&rsquo;s
corporate governance processes in brazen disregard of the Court&rsquo;s order issued on May 20, 2016 (the &ldquo;Order&rdquo;).
In the Order, the Court enjoined Sessa from &ldquo;submitting or purporting to submit Sessa&rsquo;s candidates to Ashford Prime&rsquo;s
shareholders for election to the board for its 2016 annual meeting&rdquo; and &ldquo;soliciting proxy votes for Sessa&rsquo;s candidates
or distributing any proxy materials regarding Sessa&rsquo;s candidates.&rdquo; Order at 12. Despite the unambiguous terms of the
Order, Sessa has deliberately continued to distribute solicitation materials on behalf of its invalid slate of candidates and campaign
against the Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">For example, on June
3, 2016, one week before the annual meeting, Sessa issued a press release that &ldquo;<B><I>urged</I></B>&rdquo; Ashford Prime&rsquo;s
stockholders to &ldquo;<B><I>withhold their votes for all of Ashford Prime&rsquo;s incumbent directors at the meeting</I></B>.&rdquo;
This is an unequivocal solicitation under Rule 14a-1, which defines a &ldquo;solicitation&rdquo; as, among other things, <B><I>&ldquo;[t]he
furnishing of </I></B>. . . <B><I>communications to security holders under circumstances reasonably calculated to result in the
procurement, withholding or revocation of a proxy</I></B>. 17 C.F.R. &sect; 240.14a-1(<I>l</I>)(1)(iii) (emphasis added). Further,
on June 14, 2016, Sessa issued a press release in which it took credit for the withhold votes recorded at the annual meeting, disparaged
the board and management, and politicked on behalf of its slate for a supposed &ldquo;new election.&rdquo; This, too, is a solicitation
under well-settled law. <I>See, e.g.</I>, <I>Cap. Real Est. Inv&rsquo;rs Tax Exempt Fund Ltd. P&rsquo;ship v. Schwartzberg</I>,
917 F. Supp. 1050, 1059 (S.D.N.Y. 1996) (holding that &ldquo;press releases easily meet the basic definition of solicitation&rdquo;
where they contained &ldquo;sharp criticism of the [company]&rsquo;s principals&rdquo;). And to eliminate any doubt as to Sessa&rsquo;s
intentions, <B><I>it filed both press releases as proxy materials with the Securities and Exchange Commission</I></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Sessa&rsquo;s contempt
for this Court&rsquo;s orders and instructions should not be tolerated.<SUP>1</SUP> Accordingly, Ashford Prime respectfully requests
that Sessa be held in contempt and that its demonstrated history of willful misconduct be punished with appropriate sanctions,
including the dismissal of its Counterclaim with prejudice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>ARGUMENT</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&ldquo;A party commits
contempt when he violates a definite and specific order of the court requiring him to perform or refrain from performing a particular
act or acts with knowledge of the court&rsquo;s order.&rdquo; <I>Travelhost, Inc. v. Blandford</I>, 68 F.3d 958, 961 (5th Cir.
1995). The elements of civil contempt are &ldquo;(1) that a court order was <I>in effect</I>, and (2) that the order required
certain conduct by the respondent, and (3) that the respondent failed to comply with the court's order.&rdquo; <I>Ingalls v. Thompson
</I>(<I>In re Bradley</I>), 588 F.3d 254, 264 (5th Cir. 2009) (emphasis in original). &ldquo;The contemptuous actions need not
be willful so long as the contemnor actually failed to comply with the court&rsquo;s order.&rdquo; <I>Am. Airlines, Inc. v. Allied
Pilots Ass&rsquo;n</I>, 228 F.3d 574, 581 (5th Cir. 2000). &ldquo;Good faith is not a defense to civil contempt; the question
is whether the alleged contemnor complied with the court&rsquo;s order.&rdquo; <I>Chao v. Transocean Offshore, Inc</I>., 276 F.3d
725, 728 (5th Cir. 2002).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>1</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa&rsquo;s
disregard for the Order is part of a consistent pattern of behavior in which Sessa has simply refused to comply with the instructions
of the Court. In another example, Sessa&rsquo;s counsel improperly obstructed the discovery process by its disobedience of the
April 25, 2016 decision by Magistrate Judge Horan. [713 Dkt. No. 52]. Magistrate Judge Horan ordered that Ashford Prime was permitted
to probe Sessa&rsquo;s improper coordination with its limited partners at depositions. Despite Magistrate Judge Horan&rsquo;s clear
decision, Sessa&rsquo;s counsel improperly instructed its witnesses not to answer Ashford Prime&rsquo;s questions and frustrated
Ashford Prime&rsquo;s ability to understand the illicit coordination between Sessa and its limited partners. [713 Dkt. No. 77-3
at App. 583-86 (Ex. I, Petry Tr. 8:8-11:12); <I>id</I>. at App. 607-16 (Ex. J, Moin Tr. 125:6-134:17)].</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>A.</B></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><B>The Court Granted Ashford Prime&rsquo;s Motion For Preliminary Injunction And Enjoined Sessa From Soliciting Proxy Votes
Or Distributing Proxy Materials </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">On May 20, 2016, the
Court entered the Order [713 Dkt. No. 83]<SUP>2</SUP> granting Ashford Prime&rsquo;s motion for preliminary injunction [713 Dkt.
No. 37] and denying Sessa&rsquo;s motion for preliminary injunction [527 Dkt. No. 12]. The Order invalidated Sessa&rsquo;s slate
and enforced the Directors&rsquo; determination that Sessa and its Purported Nominees had violated the Bylaws. [713 Dkt. No. 83
at 12]. The Court held that allowing Sessa&rsquo;s misconduct to continue unabated would cause irreparable harm to Ashford Prime.
In particular, the Court held that the injunction was necessary to protect Ashford Prime because &ldquo;[a]llowing the Sessa nominees
to stand for election or solicit proxy votes or distribute proxy materials regarding the nominees when they are ineligible will
cause Ashford Prime irreparable injury.&rdquo; <I>Id</I>. at 11. The Court made clear that the injunction served the public interest
by &ldquo;diminish[ing] shareholder confusion at the annual meeting&rdquo; by prohibiting Sessa from continuing to solicit votes
for its &ldquo;invalid and ineligible&rdquo; slate of candidates. <I>Id</I>. The Court further held that the balance of hardships
weighed in favor of Ashford Prime because &ldquo;allowing Sessa to solicit proxies could potentially cause Ashford Prime&rsquo;s
shareholders to cast meaningless votes for invalid nominees.&rdquo; <I>Id</I>. at 11-12.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><SUP>2</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cites
to the dockets for Case Nos. 3:16-cv-00527-N and 3:16-cv-00713-N begin with the short case number followed by the docket number
of the pleading and, where applicable, the page reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">The Order set forth two
categories of restrictions on Sessa&rsquo;s conduct, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 1in">&nbsp;</TD>
    <TD STYLE="width: 0.5in; font-size: 10pt; padding-left: 0in"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&ldquo;[T]he Court enjoins Sessa, or any person acting in active concert with Sessa, from submitting or purporting to submit Sessa&rsquo;s candidates to Ashford Prime&rsquo;s shareholders for election to the board for its 2016 annual meeting;&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font: 10pt Symbol">&middot;</FONT></TD>
    <TD STYLE="font-size: 10pt; text-align: justify"><FONT STYLE="font-size: 10pt">&ldquo;[T]he Court enjoins Sessa, or any person acting in active concert with Sessa, <B>from soliciting proxy votes for Sessa&rsquo;s candidates or distributing any proxy materials regarding Sessa&rsquo;s candidates</B>.&rdquo;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">[713 Dkt. No. 83 at 12] (emphasis
added). Thus, the Order clearly barred Sessa from continuing its election campaign. The Order&rsquo;s language is direct,
straightforward, and unequivocal: Sessa is enjoined from &ldquo;soliciting proxy votes for Sessa&rsquo;s candidates or
distributing any proxy materials regarding Sessa&rsquo;s candidates.&rdquo; <I>Id</I>. Though Sessa subsequently filed a
Notice of Appeal on May 23, 2016, and a Motion for Modification of this Court&rsquo;s Preliminary Injunction and Stay of the
Annual Stockholders Meeting on May 25, 2016  &ndash; which was denied by the Fifth Circuit on June 2, 2016 &ndash; Sessa has <I>not</I>
sought clarification of the Order from this Court or otherwise suggested that it considers there to be any ambiguity in the
Order&rsquo;s prohibition against Sessa&rsquo;s solicitation of proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>B.</B></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><B>Sessa Repeatedly Violated The Court&rsquo;s Order By Distributing Proxy Materials And Continuing Its Unlawful Campaign For
The Board </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">In violation of the
Order&rsquo;s injunction, Sessa has continued to press forward with its campaign by issuing press releases and filing proxy materials
that were plainly calculated to influence voting by the Company&rsquo;s stockholders and sow confusion as to the legitimacy of
the reelection of the Directors. For example, on June 3, 2016, Sessa issued a press release and filed a Schedule 14A (together,
the &ldquo;June 3 Proxy Materials&rdquo;) that, while ostensibly relating to the Fifth Circuit&rsquo;s decision to reject Sessa&rsquo;s
motion seeking a stay of the 2016 annual meeting and grant Sessa&rsquo;s motion seeking an expedited appeal, explicitly urged
Ashford Prime&rsquo;s stockholders to withhold their votes for the Directors. <I>See </I>App. 6-9, Declaration of Matthew G. Nielsen
(&ldquo;Nielsen Decl.&rdquo;), Ex. A. Indeed, the intention of the June 3 Proxy Materials is made clear in the title of the press
release, which states: &ldquo;<B><I>Sessa recommends Ashford Prime Shareholders Follow the Recommendation of ISS and Withhold
Their Votes for <U>All</U> Incumbent Directors.</I></B>&rdquo; <I>Id</I>. (emphasis added). The press release further states that,
&ldquo;<B><I>Sessa urges Ashford Prime stockholders to follow the recommendation of Institutional Shareholder Services (&ldquo;ISS&rdquo;)
and withhold their votes for all of Ashford Prime&rsquo;s incumbent directors at the meeting</I></B>.&rdquo; <I>Id. </I>(emphasis
added). What is more, the press release, in the guise of reporting the recommendation of Institutional Shareholder Services, contains
four paragraphs of sharp criticisms of the Directors, Ashford Prime&rsquo;s corporate governance practices, and the Company&rsquo;s
performance. <I>Id</I>. The press release concludes with a quote by Defendant John Petry: &ldquo;<B><I>[W]e concur with ISS&rsquo;s
recommendation that Ashford Prime&rsquo;s shareholders withhold their votes for the election of all incumbent nominees.</I></B>&rdquo;
<I>Id</I>. (emphasis added).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">On June 14,
2016, Sessa issued another press release and related Schedule 14A (the &ldquo;June 14 Proxy Materials,&rdquo; together with
the June 3 Proxy Materials, the &ldquo;Proxy Materials&rdquo;) intended to cast doubt on the legitimacy of the election. <I>See
id</I>. at 11-13, Ex. B. Once again, the title of the press release dispels any confusion as to Sessa&rsquo;s
intentions: &ldquo;<B><I>Sessa Capital Intends to Seek a New Election</I></B>.&rdquo; <I>Id</I>. (emphasis added). In the
June 14 Proxy Materials, Sessa credited the withhold votes recorded at the 2016 Annual Meeting to its illicit proxy campaign,
stating, &ldquo;we believe that the stockholders <B><I>vindicated our criticisms</I></B> with these election results.&rdquo; <I>Id</I>.
(emphasis added). Sessa also maligned the election process &ndash; ordered by this Court &ndash; as not resulting in a
&ldquo;fair and free election,&rdquo; questioned the Directors&rsquo; &ldquo;legitimacy as representatives of the
shareholders,&rdquo; and announced its purported intention to somehow &ldquo;seek a new election.&rdquo; <I>Id</I>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">The Proxy Materials are
textbook proxy solicitations. &ldquo;The Proxy Rules and relevant case law broadly define the term &lsquo;solicitation&rsquo; in
the proxy context.&rdquo; <I>Kaufman v. Cooper Cos., </I>719 F. Supp. 174, 184 (S.D.N.Y. 1989). Rule 14a-1 defines &ldquo;solicitation&rdquo;
as, among other things, <B><I>&ldquo;[t]he furnishing of </I></B>. . . <B><I>communications to security holders under circumstances
reasonably calculated to result in the procurement, withholding or revocation of a proxy</I></B>. 17 C.F.R. &sect; 240.14a-1(<I>l</I>)(1)(iii)
(emphasis added). &ldquo;In determining whether a communication is &lsquo;reasonably calculated&rsquo; to influence the shareholder
vote, the courts look to the purpose of the communication and the totality of circumstances in which it was made.&rdquo; <I>Shamrock
Holdings, Inc. v. Polaroid Corp.</I>, 709 F. Supp. 1311, 1327 (D. Del. 1989) (citation omitted). The term &ldquo;&lsquo;solicitation&rsquo;
comprehends not only direct requests to furnish, revoke, or withhold proxies, but also &lsquo;communications which may indirectly
accomplish such a result or constitute a step in the chain of communications ultimately designed to accomplish such a result.&rsquo;&rdquo;
<I>Schwartzberg</I>, 917 F. Supp. at 1059 (citation omitted). &ldquo;This definition has been interpreted as including communications
that are &lsquo;part of a continuous plan ending in solicitation and which prepare[s] the way for its success.&rsquo;&rdquo; <I>Mason-Dixon
Bancshares, Inc. v. Anthony Invs., Inc.</I>, No. Civ.A. CCB-96-3836, 1997 WL 33482710, at *5 (D. Md. Mar. 3, 1997) (quoting <I>SEC
v. Okin</I>, 132 F.2d 784, 786 (2d Cir. 1943)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">The Proxy Materials easily
meet the definition of solicitation. As a threshold matter, Sessa admitted that these documents constitute solicitation materials
by filing them as additional definitive soliciting materials to its Schedule 14A Definitive Proxy Statement, dated February 26,
2016, in which Sessa declared &ldquo;<B><I>[w]e are soliciting your proxy to be used at the Annual Meeting to elect Lawrence A.
Cunningham, Philip B. Livingston, John E. Petry, Daniel B. Silvers and Chris D. Wheeler as directors of the Company.</I></B>&rdquo;
<I> </I>App. 17, Nielsen Decl., Ex. C<B> </B>(emphasis added). Further, the plain language and timing of the Proxy Materials clearly
reflect Sessa&rsquo;s intent to influence the Company&rsquo;s stockholders to vote against the Directors. The June 3 Proxy Materials,
issued just one week in advance of the 2016 Annual Meeting, <B><I>expressly</I></B> urge Ashford Prime&rsquo;s stockholders to
&ldquo;<B><I>withhold their votes for all of Ashford Prime&rsquo;s incumbent directors at the meeting.</I></B>&rdquo; <I>Id.</I>
at 8, Ex. A (emphasis added). This instruction unequivocally falls within Rule 14a-1&rsquo;s definition of a solicitation, which
encompasses &ldquo;<B><I>communications to security holders under circumstances reasonably calculated to result in the procurement,
withholding or revocation of a proxy</I></B>.&rdquo; 17 C.F.R. &sect; 240.14a-1(<I>l</I>)(1)(iii) (emphasis added). The June 14
Proxy Materials, issued just days after the 2016 Annual Meeting, brazenly took credit for the withhold votes recorded at the meeting
and campaigned on behalf of Sessa&rsquo;s slate for a supposed &ldquo;new election.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">What is more, the Proxy
Materials disparage the Directors, the Company&rsquo;s corporate governance, and the Company&rsquo;s performance. It is well-established
that press releases that seek to influence an election through criticism of management and the board constitute solicitation materials.
<I>See, e.g., Schwartzberg</I>, 917 F. Supp. at 1059 (holding that &ldquo;press releases easily meet the basic definition of solicitation&rdquo;
where they contained &ldquo;sharp criticism of the [company]&rsquo;s principals&rdquo;); <I>Kaufman</I>, 719 F. Supp. at 185 (holding
that &ldquo;communications speak[ing] critically of the incumbent management&rdquo; form a &ldquo;step in the chain of communications
ultimately seeking shareholders&rsquo; proxies for the upcoming Annual Meeting&rdquo;); <I>Canadian Javelin Ltd. v. Brooks</I>,
462 F. Supp. 190, 194 (S.D.N.Y. 1978) (holding that mailings, including articles unfavorable to management made during proxy fight,
constituted solicitations).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>C.</B></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><B>Sessa Should Be Held In Contempt And Sanctioned For Its Willful Disregard For The Court&rsquo;s Orders </B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Sessa has violated the
terms of the preliminary injunction in place in this case, is in contempt of the Court&rsquo;s Order, and should be sanctioned
for its brazen misconduct. &ldquo;&lsquo;It is settled law that the power to punish for contempt is an inherent power of the federal
courts and that it includes the power to punish violations of their own orders.&rsquo;&rdquo; <I>In re</I> <I>Bradley</I>, 588
F.3d at 265 (citation omitted); <I>see also</I> <I>Krauth v. Exec. Telecard, Ltd.</I>, 870 F. Supp. 543, 548 (S.D.N.Y. 1994) (&ldquo;The
choice of a proper remedy to purge contempt is within the discretion of the court.&rdquo;). &ldquo;Upon a finding of contempt,
the district court has broad discretion in assessing sanctions to protect the sanctity of its decrees and the legal process.&rdquo;
<I>Test Masters Educ. Servs., Inc. v. Singh</I>, 428 F.3d 559, 582 (5th Cir. 2005). They court may issue a broad array of remedial
and punitive sanctions including the &ldquo;&lsquo;imposition of fines, the awarding of costs, and the shifting of fees.&rsquo;&rdquo;
<I>Johnson Serv. Grp., Inc. v. Fr.</I>, Civ. A. No. 3:10-CV-1988-D, 2011 WL 2273529, at *2 (N.D. Tex. June 9, 2011) (citation omitted);
<I>see also Starving Students, Inc. v. S &amp; S Starving Student Movers, Inc.</I>, Civ. A. No. 4:12-cv-03308, 2014 WL 4967226,
at *1 (S.D. Tex. Sept. 29, 2014) (sanctioning defendants found in contempt of preliminary injunction); <I>Gaalla v. Citizens Med.
Ctr.</I>, Civ. A. No. V-10-14, 2010 WL 5387610, at *6-7 (S.D. Tex. Dec. 17, 2010) (same). In addition, &ldquo;&lsquo;[a] court&rsquo;s
inherent power includes the ability to order the dismissal of a case.&rsquo;&rdquo; <I>Enovative Techs., LLC v. Leor</I>, 110 F.
Supp. 3d 633, 637-38 (D. Md. 2015) (quoting <I>Projects Mgmt. Co. v. Dyncorp Int&rsquo;l LLC</I>, 734 F.3d 366, 373 (4th Cir. 2013))
(dismissing action due to the defendant&rsquo;s &ldquo;continu[ation] violation of the Court&rsquo;s preliminary injunction order&rdquo;).
&ldquo;[Several] factors [are] to be considered in the imposition of a civil contempt sanction: (1) the harm from noncompliance;
(2) the probable effectiveness of the sanction; (3) the financial resources of the contemnor and the burden the sanctions may impose;
and (4) the willfulness of the contemnor in disregarding the court&rsquo;s order.&rdquo; <I>Lamar Fin. Corp. v. Adams</I>, 918
F.2d 564, 567 (5th Cir. 1990) (citing <I>U.S. v. United Mine Workers of Am.</I>, 330 U.S. 258 (1947)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Sessa&rsquo;s
conduct has frustrated the Company&rsquo;s corporate governance processes and cast a cloud of confusion onto the election
&ndash; the very irreparable harm the Order sought to prevent. Indeed, because the harm inflicted upon Ashford Prime and its
stockholders is irreparable, there is no amount of money damages that can completely remediate Sessa&rsquo;s misconduct.
Worse, Sessa has repeatedly and willfully disobeyed the Court&rsquo;s unambiguous instructions. Sessa removed any doubt as to
its intent to distribute solicitation materials by filing the Proxy Materials as additional soliciting materials.
Sessa&rsquo;s unclean hands should bar it from proceeding with its Counterclaim seeking equitable relief. Accordingly,
Ashford Prime respectfully submits that the appropriate sanction for Sessa&rsquo;s blatant misconduct is to dismiss
Sessa&rsquo;s Counterclaim with prejudice and award Ashford Prime reimbursement of the level of reasonable attorneys&rsquo;
fees and expenses (of the several million dollars that has been expended thus far) as the Court believes appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 193.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>CONCLUSION</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">For the foregoing reasons,
Sessa has repeatedly violated the clear terms of multiple orders issued by this Court. Sessa has continued to unlawfully campaign
for election on behalf of its disqualified candidates, including by filing proxy materials and engaging in the solicitation of
proxies directed at the Company&rsquo;s stockholders. Sessa&rsquo;s unlawful gamesmanship and unclean hands should not be rewarded.
Ashford Prime respectfully requests that the Court enter an order holding Sessa in contempt and sanctioning Sessa, including, but
not limited to (i) dismissing Sessa&rsquo;s Counterclaim with prejudice; (ii) awarding Ashford Prime a portion of its reasonable
attorneys&rsquo; fees and expenses incurred thus far, and (iii) granting all further relief that the Court deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">Dated: June 28, 2016</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Respectfully submitted,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: small-caps 10pt Times New Roman, Times, Serif"><B>Andrews
    Kurth</B></FONT><B><FONT STYLE="font: 10pt Times New Roman, Times, Serif"> LLP</FONT></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 46%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><I>/s/ Matthew G. Nielsen</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Matthew G. Nielsen</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Texas Bar No. 2403279</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">matthewnielsen@andrewskurth.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Bradley W. Foster</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Texas Bar No. 07283200</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">bradfoster@andrewskurth.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">James C. Bookhout</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Texas Bar No. 24087187</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">1717 Main Street, Suite 3700</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Telephone:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(214) 659-4400</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Facsimile:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(214) 659-4401</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">&ndash; <I>and </I>&ndash;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt; font-variant: small-caps"><B>Cadwalader, Wickersham &amp; Taft</B></FONT><B><FONT STYLE="font-size: 10pt">
    LLP</FONT></B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Martin L. Seidel (admitted <I>pro hac vice</I>)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Nathan M. Bull (admitted <I>pro hac vice</I>)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Jared J. Stanisci (admitted <I>pro hac vice</I>)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">200 Liberty Street</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">New York, NY 10281</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Telephone: (212) 504-6000</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Facsimile: (212) 406-6666</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">Email: martin.seidel@cwt.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ATTORNEYS FOR PLAINTIFF ASHFORD HOSPITALITY PRIME, INC.</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>


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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>CERTIFICATE OF CONFERENCE</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">Pursuant to Local
Rule 7.1(a), on June 28, 2016, counsel for Ashford Prime contacted counsel for Sessa via email and attempted to contact counsel
for Sessa via telephone regarding the relief requested in this motion. Counsel for Sessa did not respond, and this motion is therefore
filed as opposed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 216.05pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; padding-left: 9pt"><FONT STYLE="font-size: 10pt"><I>/s/ Matthew G. Nielsen</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 154.35pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>CERTIFICATE OF SERVICE</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">I certify that, pursuant
to L.R. 5.1(d), on June 28, 2016, a copy of the foregoing document was served on all counsel of record via the Court&rsquo;s CM/ECF
Filing System, including the following counsel for parties opposed to the foregoing relief:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Paul J. Skiermont</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Eliot J. Walker</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Shellie Stephens</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-variant: small-caps">Skiermont
Derby</FONT> LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">2200 Ross Avenue, Suite 4800W</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Dallas, TX 75201</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">214/978-6600</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fax: 214/978-6601</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">pskiermont@skiermontderby.com<B> </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">ewalker@skiermontderby.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">sstephens@skiermontderby.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Glen Summers</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">John D. Byars</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Joseph W. Doman</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><FONT STYLE="font-variant: small-caps">Bartlit Beck
Herman Palenchar &amp; Scott</FONT> LLP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Courthouse Place</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">54 West Hubbard</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Suite 300</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Chicago, IL 60654</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">312-494-4443</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Fax: 312-494-4440</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">glen.summers@bartlit-beck.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">john.byars@bartlit-beck.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">joe.doman@bartlit-beck.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"><I>Attorneys for Sessa Capital (Master) LP</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 216.05pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="font: 10pt Times New Roman, Times, Serif; width: 80%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><I>/s/ Matthew G. Nielsen</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">-10-</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>



<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0; text-align: right"><B>Exhibit 2</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">UNITED STATES DISTRICT COURT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">FOR THE NORTHERN DISTRICT OF TEXAS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DALLAS DIVISION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">ASHFORD INC. and ASHFORD HOSPITALITY</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">ADVISORS LLC</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">SESSA CAPITAL (MASTER), L.P., SESSA CAPITAL GP, LLC, SESSA CAPITAL
        IM, L.P., SESSA CAPITAL IM GP, LLC, JOHN E. PETRY, PHILIP B. LIVINGSTON, LAWRENCE A. CUNNINGHAM, DANIEL B. SILVERS and CHRIS D.
        WHEELER,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#9;Defendants.</P></TD>
    <TD STYLE="width: 3%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">)</P>
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        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Case No. 3:16-cv-1566-N</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>ORAL ARGUMENT <BR>
REQUESTED</B></P></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>MEMORANDUM IN SUPPORT OF DEFENDANTS&rsquo;
MOTION TO DISMISS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>PLAINTIFFS&rsquo; COMPLAINT PURSUANT TO FRCP 12(b)(6)</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

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    <TD COLSPAN="2" STYLE="text-indent: 0in">INTRODUCTION</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">1</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in; width: 7%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 83%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 10%; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD COLSPAN="2" STYLE="text-indent: 0in">FACTUAL BACKGROUND</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
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    <TD STYLE="text-indent: 0in">I.</TD>
    <TD STYLE="text-indent: 0in">Plaintiffs</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">II.</TD>
    <TD STYLE="text-indent: 0in">Defendants</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">III.</TD>
    <TD STYLE="text-indent: 0in">The Reason Sessa Engaged in the Proxy Fight</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">4</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">IV.</TD>
    <TD STYLE="text-indent: 0in">The TAAA</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">5</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
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    <TD COLSPAN="2" STYLE="text-indent: 0in">PROCEDURAL BACKGROUND </TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">7</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
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    <TD COLSPAN="2" STYLE="text-indent: 0in">LEGAL STANDARDS </TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
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    <TD COLSPAN="2" STYLE="text-indent: 0in">ARGUMENT </TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">9</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

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    <TD STYLE="width: 7%; text-indent: 0in">I.</TD>
    <TD STYLE="width: 83%; text-indent: 0in">Plaintiffs&rsquo; Purported Tortious Interference and Civil Conspiracy Claims Are Actually Claims for Alleged Violations of Sections 13(d) and 14(a) of the Act, Which Plaintiffs Lack Standing to Bring</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
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    <TD STYLE="text-indent: 0in">II.</TD>
    <TD STYLE="text-indent: 0in">The Termination Fee Is an Illegal and Unenforceable Penalty</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">11</TD></TR>
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    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%; text-indent: 0in">A.</TD>
    <TD STYLE="width: 76%; text-indent: 0in">Texas Law Concerning Penalty Provisions</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">B.</TD>
    <TD STYLE="text-indent: 0in">The Termination Fee</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">C.</TD>
    <TD STYLE="text-indent: 0in">The Harm Is Not &ldquo;Incapable or Difficult of Estimation&rdquo;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">D.</TD>
    <TD STYLE="text-indent: 0in">The Termination Fee Is Not a &ldquo;Reasonable Forecast of Just Compensation&rdquo;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">14</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">&nbsp;</P>

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    <TD STYLE="width: 14%">&nbsp;</TD>
    <TD STYLE="width: 7%; text-indent: 0in">1.</TD>
    <TD STYLE="width: 76%; text-indent: 0in">The Termination Fee Formula Uses a Multiplier of 22 That Never Changes</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">14</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">2.</TD>
    <TD STYLE="text-indent: 0in">The Termination Fee Is Grossed Up for Taxes</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">15</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">3.</TD>
    <TD STYLE="text-indent: 0in">The Same Termination Fee Formula Applies to Every Triggering Event</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">15</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">4.</TD>
    <TD STYLE="text-indent: 0in">Ashford Prime Pays the Termination Fee if it Is Greater Than Actual Damages</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">16</TD></TR>
</TABLE>
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    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%; text-indent: 0in">E.</TD>
    <TD STYLE="width: 76%; text-indent: 0in">The Court Should Deny Plaintiffs&rsquo; Prayer for a Declaration</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">16</TD></TR>
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    <TD STYLE="width: 7%; text-indent: 0in">III.</TD>
    <TD STYLE="width: 83%; text-indent: 0in">Plaintiffs Fail to State Claims for Tortious Interference</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">16</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">&nbsp;</P>

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    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 7%; text-indent: 0in">A.</TD>
    <TD STYLE="width: 76%; text-indent: 0in">Plaintiffs Have Not Pleaded Facts That Give Rise to a Reasonable Inference of Any Interference</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">B.</TD>
    <TD STYLE="text-indent: 0in">Plaintiffs Have Failed to Plead Other Facts Necessary to Maintain Their Purported Cause of Action for Tortious Interference with Business Relations</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">20</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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    <TD STYLE="width: 14%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 7%">1.</TD>
    <TD STYLE="text-indent: 0in; width: 76%">Plaintiffs Have Not Alleged the Existence of a Contract</TD>
    <TD STYLE="text-indent: 0in; width: 10%; text-align: right; vertical-align: bottom">20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD>
    <TD STYLE="text-indent: 0in">2.</TD>
    <TD STYLE="text-indent: 0in">Plaintiffs Have Not Alleged Intentional Interference</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">20</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; width: 7%">C.</TD>
    <TD STYLE="text-indent: 0in; width: 76%">Plaintiffs Have Failed to Plead Other Facts Necessary to Maintain Their Purported Cause of Action for Tortious Interference with Prospective Business Relations</TD>
    <TD STYLE="text-indent: 0in; text-align: right; width: 10%; vertical-align: bottom">22</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

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    <TD STYLE="width: 7%; text-indent: 0in">IV.</TD>
    <TD STYLE="width: 83%; text-indent: 0in">Plaintiffs Fail to State a Claim for Civil Conspiracy</TD>
    <TD STYLE="width: 10%; text-indent: 0in; text-align: right; vertical-align: bottom">22</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">V.</TD>
    <TD STYLE="text-indent: 0in">Plaintiffs Are Not Entitled to a Temporary Injunction</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD COLSPAN="2" STYLE="text-indent: 0in">CONCLUSION </TD>
    <TD STYLE="text-indent: 0in; text-align: right; vertical-align: bottom">23</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TABLE OF AUTHORITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 80%; font-weight: bold">Cases</TD>
    <TD STYLE="width: 20%; text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>7547 Corp. v. Parker &amp; Parsley Dev. Partners, L.P.</I>, <BR>
38 F.3d 211 (5th Cir. 1994)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">10, 11</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Anderton v. Cawley</I>, <BR>
378 S.W.3d 38 (Tex. App. &ndash; Dallas 2012, no pet.)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">16, 23</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>ARV Offshore Co. v. Con-Dive, L.L.C.</I>, <BR>
514 Fed. Appx. 524 (5th Cir. <I>2013</I>)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Ashcroft v. Iqbal</I>, <BR>
556 U.S. 662 (<I>2009</I>)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>BB/Naperville LP v. Worchell</I>, <BR>
No. 94-10075, 1994 WL 500030 (5th Cir. 1994)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">15</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Bell Atl. Corp. v. Twombly</I>, <BR>
550 U.S. 544 (2007)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>COC Servs., Ltd. V. CompUSA, Inc.</I>, <BR>
150 S.W.3d 654 (Tex. App. &ndash; Dallas 2004)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">17</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Concorde Funds, Inc. v. Value Line, Inc.</I>, <BR>
No. 04 Civ. 9932(NRB), 2006 WL 522466 (S.D.N.Y. Mar. 2, 2006)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">17, 18, 19, 20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Exxon Co. v. Allsup</I>, <BR>
808 S.W.2d 648 (Tex. App. &ndash; Corpus Christi 1991)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">23</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>GAF Corp. v. Milstein</I>, <BR>
453 F.2d 709 (2d Cir. 1971) <I>cert. denied</I>, 406 U.S. 910 (1972)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">10</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Gearhart Indus., Inc. v. Smith Int&rsquo;l, Inc.</I>, <BR>
741 F.2d 707 (5th Cir. 1984)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">10</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Gresham v. Wells Fargo Bank, N.A.</I>, <BR>
No. <I>15</I>-40748, 2016 WL 1127717 (5th Cir. Mar. 21, 2016)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Lovelace v. Software Spectrum Inc.</I>, <BR>
78 F.3d 1015 (5th Cir. 1996)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">3</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><I>Milam v. Nat&rsquo;l Ins. Crime Bureau</I>, <BR>
989 S.W.2d 126 (Tex. App. &ndash; San Antonio 1999, no pet.)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Phillips v. Phillips</I>, <BR>
820 S.W.2d 785 (Tex. 1991)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">12, 13, 16</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I>&nbsp;&nbsp;</I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 80%; padding-left: 0.15in; text-indent: -0.15in"><I>Rodarte v. Investeco Grp., L.L.C., </I><BR> 299 S.W.3d
400 (Tex. App. &ndash; Houston (14th Dist.) 2009)</TD>
    <TD STYLE="width: 20%; text-align: right; vertical-align: bottom">24</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Scurlock v. Lovvorn</I>, <BR>
410 S.W.2d <I>525</I> (Tex. Civ. App. &ndash; Dallas 1966, no writ)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Southwestern Bell Tel. </I><BR>
<I>Co. v. John Carlo Tex., Inc.</I>, 843 S.W.2d 470 (Tex. 1992)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Stewart v. Basey</I>, <BR>
245 S.W.2d 484 (Tex. 1952)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">15</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Texas Oil Co. v. Tenneco Inc.</I>, <BR>
917 S.W.2d 826 (Tex. App. &ndash; Houston (14th Dist.) 1994), <I>rev&rsquo;d on other grounds sub nom</I></TD>
    <TD STYLE="text-align: right; vertical-align: bottom">19, 20</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Victoria Bank &amp; Trust Co. v. Brady</I>, <BR>
811 S.W.2d 931 (Tex. 1991)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">16, 19, 20, 21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.15in; text-indent: -0.15in"><I>Virginia Bankshares Inc., v. Sandberg</I>, <BR>
501 U.S. 1083 (<I>1991</I>)</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">10</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I>&nbsp;&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.15in; text-indent: -0.15in"><I></I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 80%; font-weight: bold">Statutes and Codes</TD>
    <TD STYLE="width: 20%; text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">Securities Exchange Act of 1934, as amended, Section 13(d)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">passim</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">Securities Exchange Act of 1934, as amended, Section 14(a)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">passim</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">Tex. Bus. &amp; Com. Code &sect; 2.718(a)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">12</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Rules</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">Fed.R.Civ.P. 2(b)(6)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">3, 9</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Other Authorities</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: right; font-weight: bold; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in"><I>Ballantine&rsquo;s Law Dictionary</I> (2010)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">13</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in"><I>Restatement (Second) of Torts </I>&sect; 8A (1965)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">21</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-indent: 0in">&nbsp;</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-indent: 0in">Thomas Lee Hazen, <I>The Law of Securities Regulation</I> &sect; 10.3[2] (5th ed. 2005)</TD>
    <TD STYLE="text-align: right; text-indent: 0in; vertical-align: bottom">10</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Defendant Sessa Capital (Master), L.P. (&ldquo;Sessa&rdquo;)
along with defendants John E. Petry, Philip B. Livingston, Lawrence A. Cunningham, Daniel B. Silvers, and Chris D. Wheeler (the
&ldquo;Sessa Candidates&rdquo;) and defendants Sessa Capital, GP, LLC, Sessa Capital IM, L.P., and Sessa Capital IM GP, LLC (together
with Sessa and the Sessa Candidates, the &ldquo;Defendants&rdquo;) hereby submit the following Memorandum in Support of their Motion
to Dismiss the complaint filed by plaintiffs Ashford Inc. and Ashford Hospitality Advisors LLC (&ldquo;Ashford LLC&rdquo; and together
with Ashford Inc., &ldquo;Plaintiffs&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">INTRODUCTION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">This action arises out of a proxy contest in
which Sessa nominated the Sessa Candidates to run against the incumbent directors of Ashford Hospitality Prime, Inc. (&ldquo;Ashford
Prime&rdquo;) for seats on the Ashford Prime board of directors. Sessa owns 8.2% of the common stock of Ashford Prime. Sessa exercised
its right as a stockholder of Ashford Prime to nominate the Sessa Candidates in an effort to address Ashford Prime&rsquo;s poor
performance and atrocious corporate governance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">However, the incumbent directors of Ashford
Prime took an extensive series of actions to entrench themselves and prevent a free and fair election from taking place at the
June 10, 2016 annual meeting of stockholders of Ashford Prime. Among the incumbent directors&rsquo; acts is a campaign of frivolous
litigation. This action is the <B><U>third</U></B> lawsuit that Ashford Prime or its affiliates have commenced against Sessa and
the Sessa Candidates as part of that campaign.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The incumbent directors&rsquo; other actions
culminated in their announcement in their definitive proxy statement on April 25, 2016 that they had determined that Sessa&rsquo;s
nomination materials were &ldquo;deficient&rdquo; for &ldquo;fail[ure] to disclose . . . plans and proposals for the company and
its assets,&rdquo; and Defendant Livingston&rsquo;s alleged &ldquo;omi[ssion of] information about [Company] securities holdings&rdquo;
and &ldquo;resume padding.&rdquo; The definitive proxy statement stated that votes cast for any Sessa Candidate would be &ldquo;invalid,&rdquo;
and that the Company did &ldquo;not intend to count any stockholder votes for Sessa&rsquo;s proposed nominees.&rdquo; On May 20,
2016, this Court upheld the incumbent directors&rsquo; disqualification of every Sessa Candidate, applying the business judgment
rule under Maryland law to enjoin the Sessa Candidates from standing for election on June 10 and Sessa from soliciting proxies.
On June 10, the incumbent directors ran unopposed and were re-elected by default. But in an unprecedented rebuke, Ashford Prime&rsquo;s
stockholders sent a loud and clear message by choosing, by margins that for some incumbents exceeded 2-1, the only option available
to them other than voting for the incumbent directors &ndash; the vote to &ldquo;withhold&rdquo; approval.<I> </I>Plaintiffs&rsquo;
continued pursuit of their complaint shows it is nothing more than retaliation against Sessa for the proxy contest and an effort
to further intimate stockholders of Ashford Prime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs have brought substantially the same
causes of action for alleged violations of Sections 13(d) and 14(a) of the Securities Exchange Act of 1934 (the &ldquo;Act&rdquo;)
that Ashford Prime brought against Defendants in its cases already pending before this Court. But in this case, Plaintiffs have
no standing to maintain these claims because they are neither stockholders of Ashford Prime nor the issuer of Ashford Prime&rsquo;s
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs attempt to disguise their claims
as tortious interference claims and a claim for civil conspiracy to commit tortious interference. They do so by making an implausible
set of allegations that Defendants&rsquo; supposed violations of Section 13(d) and 14(a) interfered with the advisory agreement
between Plaintiffs and Ashford Prime. As explained in this brief, even if these allegations were true, they do not support a claim
for tortious interference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Finally, in their prayer for relief, Plaintiffs
seek a declaration that the &ldquo;Termination Fee Provision&rdquo; in the advisory agreement between Plaintiffs and Ashford Prime
is valid and enforceable. However, they have no right to such declaratory relief because the Termination Fee is an illegal and
unenforceable penalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">For these and for other reasons set forth in
this brief, Plaintiffs&rsquo; complaint fails to state any claim for which relief can be granted and therefore should be dismissed
pursuant to Federal Rule of Civil Procedure 12(b)(6).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">FACTUAL BACKGROUND</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">I.</TD><TD>Plaintiffs</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Non-party Ashford Prime is a publicly traded
Maryland corporation. (Am. Compl. &para; 13) Its business is investing in the hotel industry. (Am. Compl. &para; 1) Non-party Ashford
Hospitality Trust, Inc. (&ldquo;Ashford Trust&rdquo;) is a Maryland corporation formed in 2003 to invest in hotels, primarily in
the United States. <I>See </I>527 ECF No. 13-1, App. 23-24, excerpts from Ashford Trust 2014 10-K.<SUP> <FONT STYLE="font: 10pt Times New Roman, Times, Serif">1</FONT></SUP>
Ashford Trust spun-off Ashford Prime in November 2013. <I>See id.</I>,<I> </I>App. 14, excerpts from Ashford Prime 2014 10-K.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiff Ashford Inc. is a publicly-traded
Delaware corporation that is an asset and hedge fund manager. <I>See id.</I>,<I> </I>App. 78. Ashford Trust spun off Ashford Inc.
in November 2014. <I>Id. </I>Ashford Inc. also provides advisory services to Ashford Prime through its operating subsidiary, Plaintiff
Ashford LLC. <I>Id. </I>These advisory services are provided pursuant to the Third Amended and Restated Advisory Agreement attached
to Plaintiffs&rsquo; complaint as Exhibit 1 (the &ldquo;TAAA&rdquo;). (Am. Compl. &para; 1)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Non-party Monty J. Bennett is the Chairman of
the Board and Chief Executive Officer of each of Ashford Prime, Ashford Trust and the Plaintiffs. 713 ECF No. 72, App. 34, Ashford
Inc. 13-D dated Sept. 17, 2015. As of March 10, 2015, Bennett owned approximately 5% of Ashford Prime&rsquo;s common stock. 527
ECF No. 13-2, App. 303, excerpts from Ashford Prime 14-A dated Apr. 17, 2015. As of January 22, 2016, Bennett owned 11% of Ashford
Inc.&rsquo;s common stock and stood to receive an additional 8.9% under a deferred compensation plan.<I> Id.</I>, App. 326, Ashford
Inc. 14-A dated Jan. 27, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>1</SUP> In considering a motion to dismiss
pursuant to Federal Rule of Civil Procedure 12(b)(6), the Court may take judicial notice of matters of public record that are
outside the complaint, including court filings in related litigation and filings with the Securities and Exchange Commission.
<I>See Gresham v. Wells Fargo Bank, N.A.,</I> No. 15-40748, 2016 WL 1127717 at *3 (5th Cir. Mar. 21, 2016); <I>see also, Lovelace
v. Software Spectrum Inc.,</I> 78 F.3d 1015, 1017-18 (5th Cir. 1996).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Pursuant to the TAAA, Plaintiffs appoint all
of Ashford Prime&rsquo;s corporate management. (Am. Compl., Ex. 1 &sect; 2.2, <I>see id.</I> &sect; 2.1(m) &amp; (y)) In fact,
David Brooks executed the TAAA on behalf of each of Ashford Prime and the Plaintiffs. (Am. Compl., Ex. 1, signature blocks)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">II.</TD><TD>Defendants</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Sessa is a hedge fund that owns approximately
8.2% of Ashford Prime&rsquo;s common stock. (Am. Compl. &para;&para; 16, 39) Sessa Capital GP, LLC is the sole general partner
of Sessa. (Am. Compl. &para;&nbsp;16) Sessa Capital IM, L.P. is the investment advisor for Sessa. <I>Id.</I> Sessa IM GP LLC is
the sole general partners of Sessa Capital IM, L.P. <I>Id.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In an effort to address Ashford Prime&rsquo;s
poor corporate governance and related stock underperformance, Sessa sought to nominate the Sessa Candidates to run for election
to Ashford Prime&rsquo;s seven-member board of directors. (Am. Compl. &para; 40)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">III.</TD><TD>The Reason Sessa Engaged in the Proxy Fight</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The incumbent directors have consistently failed
to act in the best interests of Ashford Prime and its stockholders. Instead, they approved transactions benefitting only Bennett
and Plaintiffs, which he also controls. For example, in 2015, Ashford Prime liquidated approximately $50 million in marketable
securities and invested the proceeds in a hedge fund managed by Mr. Bennett. 527 ECF No. 1-1 at 5, Ashford Prime&rsquo;s 14-A dated
Feb. 12, 2016. Then, on July 31, 2015, Ashford Prime purchased 8.8% of Ashford Inc.&rsquo;s stock for a 59% premium over the trading
price that day, thereby taking out Ashford Inc.&rsquo;s largest outside stockholder in advance of a controversial merger that Ashford
Inc. would announce a few months later. <I>Id.</I> at 4.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">IV.</TD><TD>The TAAA</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As stockholders increasingly raised concerns
about such self-dealing and other issues, the incumbent directors responded by taking a series of improper actions to entrench
themselves in office. These actions have been detailed for and acknowledged by the Court. 527 ECF No. 113, Order dated May 20,
2016; 713 ECF No. 83, Order dated May 20, 2016. Of particular relevance for purposes of this motion to dismiss is the adoption
of the Proxy Penalty described below and Section 16 in the TAAA, which provides for &ldquo;Key Money Investments.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In 2014 and 2015, Ashford Prime&rsquo;s public
stockholders began to evidence their displeasure with the incumbent directors. At the May 2014 annual meeting, stockholders overwhelmingly
approved a stockholder proposal (over the directors&rsquo; vigorous opposition) to opt out of the Maryland Unsolicited Takeover
Act and thereby remove certain barriers to a change of control. 527 ECF No. 13-1, App. 126, Ashford Prime 8-K dated May 13, 2014;
166, Ashford Prime 14-A dated Apr. 14, 2014. Then, at the May 2015 annual meeting, the stockholders rejected a management proposal
to ban stockholder nominations of director candidates unless the nominating stockholder held at least 1% or more of Ashford Prime&rsquo;s
stock continuously for at least one year to nominate director candidates. 527 ECF No. 13-1, App. 176, Ashford Prime 8-K dated May
12, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On June 10, 2015, just weeks after losing the
stockholder vote on its proposal to ban virtually all stockholders from nominating board candidates, Ashford Prime entered into
the TAAA the Plaintiffs. (Am. Compl., Ex. 1) The TAAA fundamentally altered the terms of the previous advisory agreement with Plaintiffs
in ways that were highly detrimental to the Company. For instance, the TAAA gave Plaintiffs the supposed right to terminate the
TAAA and collect a penalty (the &ldquo;Termination Fee&rdquo;) if the incumbent directors no longer constitute at least a majority
of the board of Ashford Prime, unless the incumbent directors recommend or approve their successors. (Am. Compl., Ex. 1 &sect;&sect;
12(d), 12(e)(ii), &amp; 12(f)) Sessa has referred to this mechanism in the related litigation pending in this Court as the &ldquo;Proxy
Penalty.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Although the exact amount of the Termination
Fee is not known because it is calculated with inputs known only to Plaintiffs, Plaintiffs allege that it is in the hundreds of
millions of dollars. (Am. Compl. &para; 2) Yet Ashford Prime&rsquo;s market capitalization is only approximately $400 million and
Ashford Inc.&rsquo;s market capitalization is only approximately $150 million. This is a remarkably bad deal for Ashford Prime.
And a remarkably good deal for Bennett and Plaintiffs. That is not surprising given the incumbent directors&rsquo; history of acceding
to transactions that benefit Bennett and Plaintiffs and are to the detriment of Ashford Prime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The supposed trade for the Proxy Penalty was
the so-called &ldquo;Key Money&rdquo; provision in Section 16 of the TAAA, in which Plaintiffs agreed to consider providing Ashford
Prime with a &ldquo;mutually agreed upon investment (&lsquo;<I>Key Money Investments</I>&rsquo;)&rdquo; to help Ashford Prime acquire
properties. (Am. Compl., Ex. 1 &sect; 16(a)) The relevant portion of Section 16 is subsection (a), which follows (emphasis added):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">(a)</TD><TD STYLE="text-align: justify"><U>Key Money Investment.</U> The Advisor [the Plaintiffs] hereby agrees, from time to time, to
contribute to a to-be-specified taxable REIT subsidiary of the Company [Ashford Prime] or other affiliate of the Company<B>, a
mutually agreed upon investment</B> (&ldquo;<I>Key Money Investments</I>&rdquo;) to facilitate the acquisition of one or more properties
(&ldquo;<I>Key Money Assets</I>&rdquo;) by the Company <B>if the independent board members of each of the Company and the Advisor
have determined that without such an investment, the acquisition of such property would be uneconomic to the Company</B>. Key Money
Investments made will be in the form of, but will not be limited to, cash, notes, equity of the Advisor, the acquisition of furniture,
fixture and equipment (&ldquo;<I>FF&amp;E</I>&rdquo;) by Advisor for use at the acquired property, any other investment mutually
agreed to by the Company and the Advisor, or any combination thereof. All terms of any such Key Money Investment <B>will be in
the form agreed to by the Advisor and the Company</B> at the time the Advisor makes such an investment, and to the extent a Key
Money Investment is made by the Advisor, the Company agrees and acknowledges that it will utilize the Advisor as the asset manager
with respect to the related Key Money Asset and will pay the Key Money Asset Management Fee that is included in the definition
of Base Fees for such asset management services. The Advisor and the Company may agree to additional incentive fees based on the
performance of any Key Money Asset (&ldquo;<I>Key Money Incentive Fees</I>&rdquo;). <B>All terms and conditions of any Key Money
Investment (including additional incentive fees) will be documented</B> in an addendum to this Agreement or a separate asset management
agreement, as determined appropriate by the parties.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs are not required to provide any Key
Money whatsoever. <I>Id. </I>In order for such an obligation to arise, Plaintiffs and Ashford Prime must &ldquo;mutually agree&rdquo;
on the investment; Ashford Prime has to identify a property it wants to purchase; the independent directors of Ashford Prime and
the independent directors of Plaintiffs must determine that without such an investment; the acquisition of &ldquo;such property&rdquo;
would be &ldquo;uneconomic&rdquo; to Ashford Prime; Ashford Prime and Plaintiffs must agree on the form and terms and conditions
of the Key Money Investment; and the agreement must be documented by the parties. <I>Id.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">PROCEDURAL BACKGROUND</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On February 3, 2016, Sessa commenced an action
in Maryland seeking to require the incumbent directors to approve the Sessa Candidates in order to neutralize the Proxy Penalty
(the &ldquo;Maryland Action&rdquo;). On February 25, 2016, Ashford Prime responded by filing a lawsuit against Defendants in this
Court (&ldquo;Ashford I&rdquo;) alleging Defendants had violated Sections 13(d) and 14(a) of the Securities Exchange Act of 1934
(the &ldquo;Act&rdquo;). 527 ECF No. 1 &para; 1, Compl. On March 8, 2016, Ashford Prime filed a virtually identical lawsuit against
Defendants in the District Court for Dallas County, Texas (&ldquo;Ashford II&rdquo;). (District Court of Dallas County, Texas,
44th Judicial District, Cause No. DC-16-02738, removed to the Northern District of Texas, Dallas Division, Case No. 3:16-cv-00713-N
on March 14, 2016.) On March 23, 2016, the Plaintiffs filed their first version of this lawsuit in the District Court for Dallas
County, Texas (&ldquo;Ashford III&rdquo;). (District Court of Dallas County, Texas, 101st Judicial District, Cause No. DC-16-03340.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In order to consolidate the litigation in one
court, on March 14, 2016, Sessa dismissed the Maryland Action, filed an answer, counterclaims and third-party claims in Ashford
I, and removed Ashford II to this Court. 527 ECF No. 6, Answer &amp; Countercl.; 713 ECF No. 1, Notice of Removal. Sessa and Ashford
Prime filed competing motions for preliminary injunctive relief in Ashford I and Ashford II. On May 20, 2016, the Court entered
an order denying Sessa&rsquo;s preliminary injunction motion and granting Ashford Prime&rsquo;s preliminary injunction motion.
527 ECF No. 113; 713 ECF No. 83. Sessa immediately filed a notice of appeal and on June 2, the Fifth Circuit granted Sessa&rsquo;s
request that its appeal be expedited. But the Court&rsquo;s Order prevented the Sessa Candidates from running for election to the
Ashford Prime Board on June 10, 2016. 527 ECF No. 113 at 12, Order dated May 12, 2016; 713 ECF No. 83 at 12, Order dated May 12,
2016. As a result, the incumbent directors ran unopposed and were re-elected by default. (App. 5, Ashford Prime 8-K dated June
13, 2016.) But Ashford Prime&rsquo;s stockholders voted in large numbers to &ldquo;withhold&rdquo; their approval. For some incumbents,
the margin of &ldquo;withhold&rdquo; to &ldquo;approve&rdquo; exceeded 2-1. The only option available to them other than voting
for the incumbent directors &ndash; the vote to &ldquo;withhold&rdquo; approval. (<I>Id.</I>)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs&rsquo; original complaint in this
case asserted a hodgepodge of frivolous claims for tortious interference for contract and prospective business relations, unjust
enrichment, money had and money received, negligent misrepresentation, and civil conspiracy, and also sought a declaratory judgment.
None of Plaintiffs&rsquo; original six causes of action alleged violations of Sections 13(d) and 14(a) of the Act. While the parties
pursued litigation in Ashford I and Ashford II, Defendants moved to dismiss Plaintiffs complaint in Ashford III in state court
pursuant to Texas&rsquo;s anti-SLAPP statute, the Texas Citizens Participation Act, as a retaliation against Sessa for its &ldquo;exercise
of the right of free speech, right to petition, or right of association.&rdquo; Defendants also moved to dismiss Plaintiffs&rsquo;
causes of action as lacking any basis in law or fact.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">On June 8, 2016, Plaintiffs amended their complaint
in an effort to stave off dismissal. They dropped all of their causes of action except their tortious interference claims and their
civil conspiracy claim, which is derivative of their tortious interference claims, although they kept a prayer for relief for a
declaration that the &ldquo;Termination Fee Provision&rdquo; is valid and enforceable and that the Plaintiffs are entitled to the
Termination Fee if a majority of the incumbent directors are replaced. They also significantly altered their factual allegations,
making it clear for the first time that they were actually suing Defendants for alleged violations of Sections 13(d) and 14(a)
of the Act just as Ashford Prime had already done in this Court. On June 10, 2016, Defendants removed Plaintiffs&rsquo; amended
complaint to this Court. Defendants now seek dismissal of the amended complaint for the reasons set forth herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">LEGAL STANDARDS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">To survive a Rule 12(b)(6) motion to dismiss,
a complaint must contain &lsquo;sufficient factual matter, accepted as true, to &lsquo;state a claim to relief that is plausible
on its face.&rsquo;&rdquo; <I>Ashcroft v. Iqbal</I>, 556 U.S. 662, 678 (2009) (quoting <I>Bell Atl. Corp. v. Twombly</I>, 550 U.S.
544, 570 (2007)). &ldquo;A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw
the reasonable inference that the defendant is liable for the misconduct alleged.&rdquo; <I>Id.</I> (citing <I>Twombly</I>, 550
U.S. at 556). &ldquo;The plausibility standard is not akin to a &lsquo;probability requirement,&rsquo; but it asks for more than
a sheer possibility that a defendant has acted unlawfully.&rdquo; <I>Id.</I> (quoting <I>Twombly</I>, 550 U.S. at 556).</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">ARGUMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">I.</TD><TD>Plaintiffs&rsquo; Purported Tortious Interference and Civil Conspiracy Claims Are Actually Claims for Alleged Violations of
Sections 13(d) and 14(a) of the Act, Which Plaintiffs Lack Standing to Bring</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs&rsquo; claims are based on the allegation
that Sessa made &ldquo;material omissions&rdquo; in its proxy materials by failing to disclose (1) a supposed plan to &ldquo;effectuate
a fire sale of Ashford Prime&rdquo;; (2) supposed plans to stop Ashford Prime&rsquo;s acquisitions of property; (3) risks that
Sessa&rsquo;s undisclosed plans could result in payment of the termination fee; (4) Defendant Livingston&rsquo;s purchase of 4,000
shares of Ashford Prime; (5) the supposed formation of a &ldquo;group&rdquo; by Sessa and Defendant Livingston to &ldquo;seize
control of the Ashford Prime Board;&rdquo; (6) Defendant Livingston&rsquo;s &ldquo;[CPA] license expired over a decade ago;&rdquo;
and (7) &ldquo;several messages were posted in a members-only investor forum called &lsquo;Value Investors Club&rsquo; founded
and controlled by Petry.&rdquo; (Am. Compl. &para;&nbsp;73)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs allege that these &ldquo;omissions&rdquo;
were &ldquo;unlawful when any person solicits proxies in violation of SEC rules/regulations that specifically require disclosure
of omitted information.&rdquo; (Am. Compl. &para; 73 n.10) Plaintiffs&rsquo; complaint identifies Sections 13(d) and 14(a) of the
Act as the securities laws provisions that Defendants supposedly violated. (Am. Compl. &para;&para; 43, 44, 47, 48, 56, &amp; 83)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs allege these omissions &ldquo;scared
off lenders in the debt markets, and thus, hindered or made it nearly impossible for Plaintiffs to perform all of their obligations
under the Advisory Agreement (<I>i.e., </I>acquiring Key Money Investments for Ashford Prime).&rdquo; (Am. Compl. &para; 74) Plaintiffs
further allege that these &ldquo;omissions&rdquo; caused (1) Ashford Prime and Ashford Inc. to incur substantial expenses in connection
with the proxy contest, (2) Plaintiffs and Ashford Prime to &ldquo;fall short of financial goals and objectives set out by the
Ashford Prime Board,&rdquo; (3) &ldquo;the abnormal depression of Ashford Prime&rsquo;s stock price,&rdquo; (4) the loss of fees
and equity compensation under the Advisory Agreement, (5) &ldquo;Ashford Inc. to be unable to obtain loans or raise equity in the
capital markets,&rdquo; and/or (vi) &ldquo;prevented opportunities to increase Key Money Asset Management Fees.&rdquo; <I>Id.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs purport to bring tortious interference
and civil conspiracy causes of action based on these allegations. (<I>See, e.g., </I>Am. Compl. &para;&para; 67, 73, 82, &amp;
83) But Plaintiffs are actually suing Defendants for alleged violations of Sections 13(d) and 14(a) of the Act. Plaintiffs lack
standing to bring those claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Only an issuer and its shareholders have
an implied private right of action to sue for violations of Section 13(d) of the Act. <I>See Gearhart Indus., Inc. v. Smith Int&rsquo;l,
Inc.</I>, 741 F.2d 707, 714-15 (5th Cir. 1984); <I>GAF Corp. v. Milstein</I>, 453 F.2d 709<I>, </I>719 (2d Cir. 1971) <I>cert.
denied</I>, 406 U.S. 910 (1972). Likewise, only stockholders &ldquo;with voting rights&rdquo; have standing under Section 14(a).
<I>7547 Corp. v. Parker &amp; Parsley Dev. Partners, L.P.</I>, 38 F.3d 211, 229-30 (5th Cir. 1994) (citing <I>Virginia Bankshares
Inc., v. Sandberg</I>,<I> </I>501 U.S. 1083, 1106-08 (1991)); Thomas Lee Hazen, <I>The Law of Securities Regulation</I> &sect;
10.3[2] (5th ed. 2005) (&ldquo;[S]ince the proxy regulations are designed to protect shareholder voting rights, standing should
be limited to shareholders who had a right to vote.&rdquo;). Indeed, the Fifth Circuit has specifically denounced &ldquo;open[ing]
a Pandora&rsquo;s box by extending&rdquo; the right to sue under section 14(a) &ldquo;to any person potentially injured by a proxy
statement&rdquo; such as &ldquo;disappointed potential merger partners, disgruntled employees, etc.&rdquo; <I>7547 Corp.</I>, 38
F.3d at 230.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Here, Plaintiffs attempt to bring claims under
Sections 13(d) and 14(a) based on Sessa&rsquo;s SEC filings related to Ashford Prime, a publicly traded corporation that is separate
and distinct from the plaintiffs. Plaintiffs do not allege that they are Ashford Prime stockholders. Nor can they claim status
as the issuer of Ashford Prime stock. Plaintiffs therefore lack standing to bring claims based on Sessa&rsquo;s alleged violations
of Sections 13(d) and 14(a). The Court should dismiss with prejudice each of Plaintiffs&rsquo; causes of action for tortious interference
and for civil conspiracy to avoid &ldquo;open[ing] a Pandora&rsquo;s box&rdquo; by extending standing under the securities laws
to plaintiffs who those statutes were not intended to protect. <I>See 7547 Corp.</I>, 38 F.3d at 230.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">II.</TD><TD>The Termination Fee Is an Illegal and Unenforceable Penalty</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In their prayer for relief, Plaintiffs seek
several declarations from the Court, including that (i)&nbsp;the Termination Fee Provision is unambiguous, valid, and enforceable;
and (ii) Ashford Inc. has the right and is entitled to the Termination Fee upon a &ldquo;Change of Control of the Company.&rdquo;
(Am. Compl., Section X at 44)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Presumably in support of this prayer for relief,
Plaintiffs made several allegations about the Termination Fee, including that Defendants have &ldquo;casted doubt as to the viability
of the Termination Fee&rdquo; (Am. Compl. &para; 4); have &ldquo;seemingly engaged in the unauthorized practice of law and solicited
the Ashford Prime Board to retain their services as counsel, by wrongfully referring to the Termination Fee as &lsquo;invalid&rsquo;
and &lsquo;unenforceable,&rsquo; &lsquo;unjust and excessive,&rsquo; and &lsquo;confusing and potentially disproportionate&rdquo;
(<I>id.</I>); have &ldquo;caused confusion as to the viability of the Advisory Agreement and Termination Fee (Am. Compl. &para;
7); have secret plains to &ldquo;repudiate the Advisory Agreement/Termination Fee&rdquo; (Am. Compl. &para; 45); and have demanded
that Plaintiffs cause Ashford Prime to &ldquo;eliminate the Termination Fee&rdquo; (Am. Compl. &para; 52). Plaintiffs&rsquo; allegations
are irrelevant and they are not entitled to the relief they seek because the Termination Fee is an illegal penalty and therefore
unenforceable pursuant to Texas law.<FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>2</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>2</SUP> Texas law governs the TAAA. (Am. Compl.,
Ex. 1 &sect; 18)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="margin: 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Texas
Law Concerning Penalty Provisions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Penalty provisions in contracts are illegal
under Texas law. <I>See</I> Tex. Bus. &amp; Com. Code &sect;&nbsp;2.718(a) (&ldquo;Damages for breach by either party may be liquidated
in the agreement but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the breach,
the difficulties of proof of loss, and the inconvenience or non-feasibility of otherwise obtaining an adequate remedy. A term
fixing unreasonably large liquidated damages is void as a penalty.&rdquo;). The question of whether a contract provision operates
as an unenforceable penalty is a question of law for the Court to decide. <I>Phillips v. Phillips</I>,<I> </I>820 S.W.2d 785,
788 (Tex. 1991). Whenever there is a doubt as to whether a clause is a liquidated damages provision or a penalty, the clause should
be declared a penalty. <I>Scurlock v. Lovvorn</I>,<I> </I>410 S.W.2d 525, 532 (Tex. Civ. App. &ndash; Dallas 1966, no writ). Under
Texas law, a liquidated damages provision will be enforced only when both prongs of a two-part test are met. First, the harm caused
must be &ldquo;incapable or difficult of estimation,&rdquo; and second, the amount of liquidated damages must be &ldquo;a reasonable
forecast of just compensation.&rdquo; <I>Phillips</I>,<I> </I>820 S.W.2d at 788. &ldquo;Damages in a breach of contract case are
generally measured as just compensation for losses actually sustained as a result of the breach and are meant to restore the injured
party to the position he would have occupied had the breaching party performed the contract.&rdquo; <I>ARV Offshore Co. v. Con-Dive,
L.L.C.</I>, 514 Fed. Appx. 524, 527 (5th Cir. 2013) (citations omitted) (applying Texas law).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Termination Fee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The TAAA states that the Termination Fee is
&ldquo;liquidated damages.&rdquo; (Am. Compl., Ex. 1 &sect;&nbsp;12(i)) Liquidated damages are a &ldquo;sum stipulated and agreed
upon by the parties, at the time of entering into a contract, as being payable as compensation for loss suffered in the event
of a breach.&rdquo; <I>Ballantine&rsquo;s Law Dictionary</I> (2010).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The TAAA further states that Ashford Prime must
pay Plaintiffs the Termination Fee if Plaintiffs terminate the TAAA for an &ldquo;uncured default,&rdquo; if Ashford Prime terminates
the agreement due to Plaintiffs&rsquo; &ldquo;unsatisfactory performance&rdquo; or &ldquo;imposition of &ldquo;unfair fees,&rdquo;
or if Plaintiffs terminate the Agreement as a result of a &ldquo;Company Change of Control.&rdquo; (Am. Compl., Ex. 1 &sect;&nbsp;12(e)(ii))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The penal nature of the Termination Fee is underscored
by this one-way street; there are no circumstances in which Plaintiffs have to pay the Termination Fee to Ashford Prime. The Termination
Fee is also massive and bears no resemblance to a &ldquo;reasonable forecast of just compensation.&rdquo; Ashford Inc. alleges
that the Termination Fee is &ldquo;hundreds of millions of dollars.&rdquo; (Am. Compl. &para; 2) That is more than half of Ashford
Prime&rsquo;s market value of approximately $400 million. It is also far more than Ashford Inc.&rsquo;s entire market capitalization
of approximately $150 million. It is very bad for Ashford Prime and very good for Bennett and Plaintiffs. That is not surprising
given the incumbent directors&rsquo; history of acceding to acts that benefit Bennett and Plaintiffs and are to the detriment of
Ashford Prime.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As set forth below, the Termination Fee should
not be enforced because the harm it supposedly compensates for is not &ldquo;incapable or difficult of estimation,&rdquo; and it
is not &ldquo;a reasonable forecast of just compensation.&rdquo; <I>Phillips</I>,<I> </I>820 S.W.2d at 788.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Harm Is Not &ldquo;Incapable or Difficult of Estimation&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The TAAA provides that in certain cases, such as termination in the event of an uncured default by Ashford
Prime, Ashford Prime must pay Plaintiffs &ldquo;the greater of the Termination Fee or Actual Damages.&rdquo; (Am. Compl., Ex. 1
Preamble &amp; Section 12(e)(ii)) This allowance for payment of Actual Damages means that any harm that could arise as a result
of an event that triggers termination is capable of estimation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Termination Fee Is Not a &ldquo;Reasonable Forecast of Just Compensation&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A review of the Termination Fee formula reveals the Termination Fee is not a reasonable forecast of just compensation
due to the use of arbitrary multipliers that never change and because it lards up the Termination Fee with estimates of Plaintiffs&rsquo;
tax liabilities. The Termination Fee is not a reasonable forecast for the additional reasons that it is the same no matter the
event that triggers it and because it must be paid if it is greater than Actual Damages.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Termination Fee Formula Uses a Multiplier of 22 That Never Changes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Under the TAAA, the Termination Fee is <B>always
at least </B>(A) 1.1 multiplied by 12 multiplied by the &ldquo;Net Earnings of the Advisor [Plaintiffs] for the 12-month period
preceding the termination date of this Agreement&rdquo; plus (B) a tax gross up at &ldquo;an assumed combined [state and federal
tax] rate of 40%. (Am. Compl. &para; 37) Part A of the Termination Fee formula can be expressed as Net Earnings of Plaintiffs
for the preceding 12 months (&ldquo;Earnings&rdquo;) multiplied by 13.2. Part B of the Termination Fee formula can be expressed
as the amount calculated in Part A divided by 0.6. Simplifying even further, the minimum Termination Fee is Earnings months multiplied
by 22.<SUP>3</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>3</SUP> The two alternative calculations
of the Termination Fee contained in the TAAA could raise the Termination Fee to more than 22 times Plaintiffs&rsquo; Earnings.
(Am. Compl. &para; 37) Plaintiffs do not publicly disclose the information necessary to calculate the two alternatives, and each
of the two alternatives changes on every trading day, permitting Plaintiffs to time any termination of the TAAA in a way to capture
the highest possible Termination Fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The multiplier of 22 never changes. The term of the TAAA is ten years from its Effective Date of June 10,
2015. (Am. Compl., Ex. 1 Preamble &amp; Section 12(a)) Roughly nine years remain on the TAAA term. Yet if Plaintiffs were able
to terminate the TAAA and trigger the Termination Fee today, the Termination Fee would not be nine times Earnings or some slightly
higher multiple, it would be <B>at least</B> 22 times their Earnings, not discounted to present value. The multiplier of 22 stays
the same no matter how many years remain in the TAAA&rsquo;s term. For instance, with five years remaining, the Termination Fee
is still 22 times Earnings. With one year remaining, the Termination Fee is still 22 times Earnings. The Termination Fee is completely
disconnected from a forecast of any compensation, much less &ldquo;just compensation.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Termination Fee Is Grossed Up for Taxes</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Termination Fee also includes a gratuitous
addition for Plaintiffs&rsquo; federal and state income taxes, which the TAAA assumes to be 40% of Net Earnings. (Am. Compl. &para;
37) If Plaintiffs are even subject to such tax rates, such taxes are amounts Plaintiffs have to pay in the normal course of performance
of the TAAA. The inclusion of this tax gross up inflates the Termination Fee beyond anything that could be said to be a reasonable
forecast of just compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Same Termination Fee Formula Applies to Every Triggering Event</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">A contract that provides the same liquidated damages for any breach is &ldquo;unreasonable and a violation
of the principle of just compensation.&rdquo; <I>See BB/Naperville LP v. Worchell</I>, No. 94-10075, 1994 WL 500030, *7 (5th Cir.
1994) (citing <I>Stewart v. Basey</I>,<I> </I>245 S.W.2d 484, 487 (Tex. 1952). Here, the same Termination Fee applies in the context
of a &ldquo;Company Change of Control,&rdquo; an uncured default by Ashford Prime, or Plaintiffs&rsquo; &ldquo;unsatisfactory performance&rdquo;
or imposition of fees that are &ldquo;not fair.&rdquo; (Am. Compl., Ex. 1 &sect;&sect; 12(e) &amp; 12(f)) This means the Termination
Fee is an unenforceable penalty clause. <I>See BB/Naperville LP</I>, 1994 WL 500030 at *7<I> </I>(failure to distinguish between
lesser and greater breaches of the agreement means provision is unenforceable penalty).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1.5in; text-indent: -0.5in">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ashford
Prime Pays the Termination Fee if it Is Greater Than Actual Damages</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The TAAA provides that in certain cases, Ashford Prime must pay Plaintiffs &ldquo;the greater of the Termination
Fee or Actual Damages.&rdquo; (Am. Compl., Ex. 1 Preamble &amp; Section 12(e)(ii)) This demonstrates that the Termination Fee is
penal in nature because it must be paid if it is <B>greater</B> than Actual Damages. It also shows that the Termination Fee is
not meant to be a reasonable forecast of just compensation. The Termination Fee is therefore an illegal and unenforceable penalty
on its face. <I>See Phillips</I>,<I> </I>820 S.W.2d at 789 (refusing to enforce a liquidated damages provision requiring one party
to pay the other a multiple of actual damages).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Court Should Deny Plaintiffs&rsquo; Prayer for a Declaration</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">For the foregoing reasons, the Termination Fee
provision in the TAAA is unenforceable in its entirety. As a result, the Court should deny Plaintiffs&rsquo; prayer for relief
seeking a declaration that the Termination Fee provision is unambiguous, valid, and enforceable, and that Ashford Inc. has the
right and is entitled to the Termination Fee upon a &ldquo;Change of Control of the Company.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Fail to State Claims for Tortious Interference</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Even if Plaintiffs were attempting to assert valid tortious interference claims rather than Sections 13(d)
and 14(a) claims in disguise, they have failed to do so. The elements of tortious interference with an existing business relationship
are &ldquo;(1) the existence of a contract subject to interference, (2) the act of interference was willful and intentional, (3)
such intentional act was a proximate cause of plaintiff&rsquo;s damage, and (4) actual damage or loss occurred.&rdquo; <I>Victoria
Bank &amp; Trust Co. v. Brady</I>, 811 S.W.2d 931, 939 (Tex. 1991). The elements of tortious interference with a prospective business
relationship are (1) a reasonable probability that the parties would have entered into a business relationship; (2) an intentional,
malicious intervention or an independently tortious or unlawful act performed by the defendant with a conscious desire to prevent
the relationship from occurring or with knowledge that the interference was certain or substantially likely to occur as a result
of its conduct; (3) a lack of privilege or justification for the defendant&rsquo;s actions; and (4) actual harm or damages suffered
by the plaintiff as a result of the defendant&rsquo;s interference. <I>Anderton v. Cawley</I>, 378 S.W.3d 38, 59 (Tex. App. &ndash;
Dallas 2012, no pet.) (citation omitted). Plaintiffs have not pleaded key elements of either of these causes of action. In addition,
many of their allegations are simply implausible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Have Not Pleaded Facts That Give Rise to a Reasonable Inference of Any Interference</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Actual interference is a necessary element for each tortious interference cause of action. But conduct affecting
contracts or prospective business relations in an attenuated manner is insufficient to satisfy the element of interference. <I>See</I>
<I>Concorde Funds, Inc. v. Value Line, Inc.</I>, No. 04 Civ. 9932(NRB), 2006 WL 522466, *7 (S.D.N.Y. Mar. 2, 2006) (applying Texas
law); <I>see also COC Servs., Ltd. V. CompUSA, Inc.</I>, 150 S.W.3d 654 (Tex. App. &ndash; Dallas 2004) (finding a complicated
linkage of inferences insufficient to support a claim of tortious interference).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><I>Concorde Funds, Inc. v. Value Line, Inc.
</I><FONT STYLE="font: 10pt Times New Roman, Times, Serif">is instructive. In that case, plaintiff, a fund
manager, alleged that the defendant, an investment advisor, interfered with its contracts with the shareholders of one of plaintiff&rsquo;s
funds. <I>Concorde Funds, Inc.</I>, 2006 WL 522466, at *6. Specifically, plaintiff alleged that defendant had induced plaintiff
&ldquo;through a series of misrepresentations and false promises&rdquo; to liquidate an investment fund, thereby rendering performance
under those contracts with shareholders associated with the fund impossible. <I>Id.</I> The court applied Texas law and held that
plaintiff failed to allege actual interference because &ldquo;nowhere d[id] plaintiff allege that defendants had any contact with
its shareholders, let alone any communications suggesting that they were trying to lure the shareholders away from&rdquo; plaintiff.
<I>Id</I>. at *7. Rather &ldquo;[t]he fact that defendant&rsquo;s conduct may have eventually impacted plaintiff&rsquo;s existing
contracts was only because plaintiff itself decided to liquidate&rdquo; the fund. <I>Id.</I> Thus, there was no suggestion that
defendant &ldquo;knowingly interfered with those contracts.&rdquo; <I>Id. </I>The court held that &ldquo;where a defendant&rsquo;s
conduct affected certain contracts in such an attenuated way&rdquo; there was no tortious interference claim as a matter of law.
<I>Id. </I>To hold otherwise would &ldquo;eviscerate the requirement of interference.&rdquo; <I>Id</I>. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Here, Plaintiffs&rsquo; theory of interference
is even more attenuated than the theory rejected in <I>Concorde</I>. The contract underlying Plaintiffs&rsquo; purported tortious
interference with contract claim is the TAAA, specifically Section 16. (Am. Compl. &para;&para; 67, 71) The supposed prospective
business relations in Plaintiffs&rsquo; prospective business relations claim are &ldquo;Plaintiffs&rsquo; future management and
operating of Ashford Prime for which Plaintiffs are likely to enter additional agreements, modifications, or extensions.&rdquo;
(Am. Compl. &para; 76)</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs allege that Defendants&rsquo; supposed
Sections 13(d) and 14(a) violations caused (1)&nbsp;&ldquo;unreasonable amounts of risk and uncertainty,&rdquo; which (2) &ldquo;depressed
the stock prices of Ashford Prime and Ashford Inc.,&rdquo; which (3) precluded Ashford Inc. from &ldquo;raising capital from lenders
in the debt markets and caused lenders to question Ashford Inc.&rsquo;s future revenues and long-term cash flows,&rdquo; which
in turn has (4) &ldquo;inhibited Ashford Inc. from raising capital, performing under the Advisory Agreement, and acquiring new
revenue streams.&rdquo; (Am. Compl. &para; 61) Regarding step (3), Plaintiffs elaborate that Ashford Inc. has &ldquo;approached
dozens of financial institutions and lenders and has been unable to close any sort of financing arrangement, which would allow
Ashford Inc. to purchase the Project Companies<SUP>4</SUP> or provide Key Money Investments to Ashford Prime.&rdquo; (Am. Compl.
&para; 60) Plaintiffs&rsquo; tortured and attenuated theory of interference fails as a matter of law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>4</SUP> &ldquo;Project Companies,&rdquo; as
used in Plaintiffs&rsquo; complaint, are unidentified small businesses that Ashford Inc. alleges it attempted to acquire.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">As in <I>Concorde</I>,<I> </I>Plaintiffs&rsquo;
theory of interference relies on too many intervening occurrences. In <I>Concorde</I>, a single intervening occurrence &ndash;
the plaintiff&rsquo;s decision, based upon defendants&rsquo; alleged misrepresentations, to liquidate the fund &ndash; was sufficient
for the court to find no interference. <I>Concorde Funds, Inc.</I>, 2006 WL 522466, at *7. In this case, among several intervening
occurrences,<SUP>5</SUP> the most glaring is the refusal of lenders to provide funds to Ashford Inc. As with the shareholders
of the liquidated fund in <I>Concorde</I>, Plaintiffs failed to allege that Defendants had any communications with these unidentified
&ldquo;dozens&rdquo; of lenders, let alone that Defendants even knew about them. Moreover, as with the lack of communications
with shareholders of the liquidated fund in <I>Concorde</I>, Plaintiffs failed to allege any supposed violations of Sections 13(d)
and 14(a) suggesting that Defendants were trying to convince lenders not to provide financing to Plaintiffs. This becomes even
more clear when the nature of Defendants&rsquo; alleged omissions are considered. It is simply implausible that Defendants made
any of the alleged omissions with the intent to affect lender decisions to provide financing to Ashford Inc. This is particularly
true of the supposed failure to disclose Livingston&rsquo;s purchase of 4,000 shares (about .013% of issued shares) of Ashford
Prime stock and the expiration of his CPA license.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in; text-align: left">Also important is that Plaintiffs
failed to allege that Defendants improperly interfered with Plaintiffs&rsquo; attempts to obtain loans from these &ldquo;dozens&rdquo;
of unknown lenders. Plaintiffs do not allege the existence of any actual contracts with the unknown lenders. Plaintiffs do not
allege that Defendants knew the identity of any of these lenders or that Plaintiffs were approaching them in order to obtain financing
to fund Key Money Investments or for Ashford Inc. to purchase Project Companies.<SUP>6</SUP> As a matter of law, there can be
no tortious interference without such knowledge. <I>Victoria Bank &amp; Trust Co. v. Brady</I>, 811 S.W.2d at 939 (a necessary
element of a tortious interference with contract claim is the existence of a contract); <I>See Texas Oil Co. v. Tenneco Inc.</I>,
917 S.W.2d 826, 834 (Tex. App. &ndash; Houston (14th Dist.) 1994), <I>rev&rsquo;d on other grounds sub nom</I> (tortious interference
with prospective business relations claim cannot be maintained absent actual knowledge of the prospective contract or business
relation). Plaintiffs do not salvage their claims by alleging that Defendants &ldquo;had a conscious desire to prevent Ashford
Prime and its advisors (<I>i.e</I>., Ashford Inc. and Ashford, LLC) from obtaining financing in order to provide Key Money Investments
and acquire the Project Companies.&rdquo;<SUP>7</SUP> (Am. Compl. &para; 78) This allegation of &ldquo;conscious desire&rdquo;
is based on Defendants&rsquo; alleged acts and Sessa being active in financial markets, not on Defendants&rsquo; actual knowledge
of a prospective lending relationship. <I>Id. </I>This is tantamount to an implausible allegation that Defendants should have
known about the prospective lending relationships and is insufficient to plead that Defendants had the actual knowledge necessary
to find that they intentionally interfered with Plaintiffs&rsquo; supposed prospective relations with the &ldquo;dozens&rdquo;
of unidentified lenders. <I>See Texas Oil Co.</I>,<I> </I>917 S.W.2d at 834.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>5</SUP> These include the process by which
market participants allegedly interpreted Defendants&rsquo; supposed violations of Sections 13(d) and 14(a) to create so much
uncertainty as to depress the stock prices of Ashford Prime and Ashford Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><SUP>6</SUP> Nor could Defendants have known; Plaintiffs
allege that the identity of the Project Companies is secret. (Am. Compl. &para; 60 n.7)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;<SUP>7</SUP> This allegation is also
implausible given that a Key Money Investment can take any mutually agreed upon form, including cash, notes, equity of Plaintiffs,
and even furniture. (Am. Compl., Ex. 1 &sect;&nbsp;16(a)) Furthermore, the only time that Ashford Inc. provided a Key Money Investment
to Ashford Prime, 90% was in Ashford Inc. stock and only $200,000 was in cash. (App. 10, Ashford Inc. 2015 10-K) Based on this
history and Ashford Inc.&rsquo;s substantial cash reserves there is no basis to expect Plaintiffs would seek a loan to finance
a Key Money Investment. (App. 14, Ashford Inc. 2016 10-Q dated May 10, 2016)</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0">&nbsp;</P>


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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In sum, any effect of Defendants&rsquo;
alleged violations of Sections 13(d) and 14(a) on Plaintiffs performance of the TAAA are simply too attenuated to establish that
there has been any interference with the TAAA or any future contractual relations arising out of the TAAA. Allowing either of Plaintiffs&rsquo;
tortious interference claims to go forward would &ldquo;eviscerate the requirement of interference.&rdquo; <I>See Concorde Funds,
Inc.</I>, 2006 WL 522466, at *7.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Have Failed to Plead Other Facts Necessary to Maintain Their Purported Cause of Action for Tortious Interference with Business
Relations</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Have Not Alleged the Existence of a Contract</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">An actual contract subject to interference
is necessary to maintain a tortious interference with business relations claim. <I>Victoria Bank &amp; Trust Co.</I>,<I> </I>811
S.W.2d at 939. Plaintiffs have failed to allege the existence of an actual contract subject to interference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The contract underlying Plaintiffs&rsquo;
claim is Section 16 of the TAAA. (Am. Compl. &para; 71) Plaintiffs have no obligations under Section 16. It merely says that Plaintiffs
will consider providing Key Money Investments to Ashford Prime subject to future agreements regarding the form and terms and conditions
of the Key Money Investments. (Am. Compl., Ex. 1 &sect; 16) And Section 16 makes no mention of Ashford Inc. acquiring Project Companies,
much less any obligation that Ashford Inc. acquire Project Companies. <I>Id.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Section 16(a) establishes that, before any
obligation of Plaintiffs exists, several things must happen. There must be a property that Ashford Prime wants to acquire. <I>Id.</I>
The independent board members of each of Plaintiffs and Ashford Prime must decide that without the Key Money Investment, &ldquo;the
acquisition of such property would be uneconomic to Ashford Prime.&rdquo; <I>Id. </I>Plaintiffs and Ashford Prime must agree what
form the Key Money Investment will take &ndash; it can be anything, including cash, notes, equity of the Plaintiffs, or furniture.
<I>Id.</I> All other &ldquo;terms and conditions&rdquo; of the Key Money Investment must be agreed upon by Plaintiffs and documented.
<I>Id. </I>Plaintiffs do not allege that any of these things happened. And tellingly, they have not produced any documentation
evidencing an agreement to provide a Key Money Investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Since Section 16 contains no obligation
for Plaintiffs to provide Key Money Investments or for Ashford Inc. to purchase Project Companies, Plaintiffs cannot maintain a
claim for tortious interference with contract.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -0.5in">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Have Not Alleged Intentional Interference</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Intentional interference with a contract
is necessary to maintain a cause of action for tortious interference with business relations. <I>See Victoria Bank &amp; Trust
Co.</I>,<I> </I>811 S.W.2d at 939. Defendants must have at least believed that the consequences of their actions are substantially
certain to result from it. <I>Southwestern Bell Tel. Co. v. John Carlo Tex., Inc.</I>, 843 S.W.2d 470, 472 (Tex. 1992) (citing
<I>Restatement (Second) of Torts </I>&sect; 8A (1965)). Even if Section 16 of the TAAA obligated Plaintiffs to provide Key Money
Investments or obligated Ashford Inc. to purchase the Project Companies, Plaintiffs have not alleged that Defendants intentionally
interfered with such contract.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">As already discussed, Plaintiffs allege
that interference with Section 16 of the TAAA took place after a long series of occurrences. If Defendants intended such interference
to take place, it follows that they would have had to have intended every intermediate step in Plaintiffs&rsquo; theory of interference.
This is simply implausible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In particular, no reasonable inference can
be reached that Defendants intended for the supposed violations of Sections 13(d) and 14(a) to depress the stock prices of Ashford
Prime and Ashford Inc. The subject matter of the supposed &ldquo;omissions&rdquo; does not lend itself to the conclusion any such
result was intended or &ldquo;substantially certain,&rdquo; particularly the &ldquo;omissions&rdquo; concerning Livingston&rsquo;s
purchase of .013% of the stock of Ashford Prime and the expiration of his CPA license. Furthermore, Sessa has always maintained
that Ashford Prime is <I>undervalued</I>. 713 ECF No.&nbsp;73, App. 1178, Ashford Prime 13-D dated Sept. 2, 2015. This cannot be
reconciled with a desire to depress the stock price of Ashford Prime. And Sessa owns 8.2% of the stock of Ashford Prime. 713&nbsp;ECF
No. 72, App. 59, Ashford Prime 14-A dated Feb. 4, 2016. It is implausible that Sessa would injure itself by intentionally depressing
the stock price of Ashford Prime merely to interfere with the Key Money provisions of the TAAA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In addition, as already explained, Plaintiffs
have failed to make any plausible allegation that Defendants intended or were &ldquo;substantially certain&rdquo; that their alleged
acts would interfere with Plaintiffs&rsquo; ability to obtain loans for the purposes of Section 16 of the Advisory Agreement. Plaintiffs
have failed to plead that Sessa even knew the identities of the supposed lenders or that Plaintiffs were attempting to obtain loans
to provide Key Money Investments to Ashford Prime and to enable Ashford Inc. to purchase Project Companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">At an even more basic level, Plaintiffs
have failed to allege that Defendants knew or should have known Ashford Prime was attempting to purchase a particular piece of
property and that Plaintiffs had an agreement to provide a Key Money Investment to Ashford Prime for such purpose. Nor have Plaintiffs
alleged that Defendants knew or should have known that Ashford Inc. had an agreement purchase Project Companies. Without Defendants
having such knowledge, Plaintiffs cannot establish intentional interference with Section 16 of the TAAA. <I>See Exxon Co. v. Allsup</I>,
808 S.W.2d 648, 656 (Tex. App. &ndash; Corpus Christi 1991).</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -0.5in">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Have Failed to Plead Other Facts Necessary to Maintain Their Purported Cause of Action for Tortious Interference with Prospective
Business Relations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The elements of tortious interference with
a prospective business relationship are (1) a reasonable probability that the parties would have entered into a business relationship;
(2) an intentional, malicious intervention or an independently tortious or unlawful act performed by the defendant with a conscious
desire to prevent the relationship from occurring or with knowledge that the interference was certain or substantially likely to
occur as a result of its conduct; (3) a lack of privilege or justification for the defendant&rsquo;s actions; and (4) actual harm
or damages suffered by the plaintiff as a result of the defendant&rsquo;s interference. <I>Anderton</I>, 387 S.W.3d at 59.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Thus, Plaintiffs must allege that there
is a &ldquo;reasonable probability that [they] would have entered into a business relationship&rdquo; but that they were prevented
from doing so by Defendants&rsquo; supposed interference. <I>Id. </I>Plaintiffs have not done so. Instead, they allege that &ldquo;Defendants&rsquo;
pattern of omissions/conduct is interfering not only with Plaintiffs&rsquo; contractual rights under the Advisory Agreement, but
also with Plaintiffs&rsquo; future management and operating of Ashford Prime for which Plaintiffs are likely to enter additional
agreements, modifications, or extensions.&rdquo; (Am. Compl. &para; 76)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A reasonable probability requires more than
mere negotiations taking place. <I>Milam v. Nat&rsquo;l Ins. Crime Bureau</I>, 989 S.W.2d 126, 131-32 (Tex. App. &ndash; San Antonio
1999, no pet.). But Plaintiffs do not suggest that even negotiations have taken place. They do not provide any detail about the
supposed prospective agreements or allege that those agreements have been discussed, proposed or considered by Ashford Prime. Indeed,
these future agreements appear entirely speculative; Plaintiffs suggest this claim is based on an extension of the TAAA that Plaintiffs
&ldquo;will necessarily and probably enter into&rdquo; but only at the end of the TAAA&rsquo;s term in 2025. (Am. Compl. &para;
76) In addition, they allege that they are &ldquo;likely to enter&rdquo; those agreements despite Defendants&rsquo; alleged interference.
<I>Id. </I>This is inconsistent with the requirement that Defendants&rsquo; supposed interference prevent Plaintiffs from entering
into the prospective agreement.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Moreover, for the same reasons already discussed
above, Plaintiffs have failed to allege any intentional interference with their supposed prospective business relations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Fail to State a Claim for Civil Conspiracy</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Conspiracy is a derivative tort and a plaintiff
must show that defendants were also liable for some underlying tort in order to prevail on this claim. <I>See</I> <I>Rodarte v.
Investeco Grp., L.L.C.</I>, 299 S.W.3d 400, 413 (Tex. App. &ndash; Houston (14th Dist.) 2009) (affirming dismissal civil conspiracy
claim where dismissal underlying claims of tortious interference and breach of fiduciary duty had already been affirmed). Therefore,
if a plaintiff is unable to maintain the underlying tort claim, the plaintiff cannot maintain a claim for civil conspiracy. <I>Id.</I></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Plaintiffs base their civil conspiracy cause
of action on Defendants&rsquo; supposed violations of Sections 13(d) and 14(a) of the Act. (Am. Compl. &para; 83) Plaintiffs have
no standing to sue for the alleged Sections 13(d) and 14(a) violations and they cannot, in the alternative, maintain their purported
tortious interference claims. So their civil conspiracy cause of action must be dismissed.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs
Are Not Entitled to a Temporary Injunction</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Plaintiffs also seek temporary injunctive
relief based upon their purported cause of action for &ldquo;tortious interference with contract, tortious interference with business,
and declaratory judgment against Defendants, as indicated in the Petition.&rdquo; (Am. Compl. &para; 87) For the reasons already
explained, Plaintiffs&rsquo; purported tortious interference claim should be dismissed. And Plaintiffs have not pleaded facts entitling
them to a declaratory judgment, but merely sought a declaratory judgment in their prayer for relief. Even if their pleadings were
not deficient, the Termination Fees are liquidated damages that are unenforceable because they are an illegal penalty. Therefore,
Plaintiffs are not entitled to temporary injunctive relief.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">CONCLUSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the foregoing reasons, Sessa respectfully
requests this Court to dismiss Plaintiffs&rsquo; complaint in its entirety with prejudice. Sessa also respectfully requests oral
argument on this matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SKIERMONT DERBY LLP</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dated: June 29, 2016</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>s/ Paul J. Skiermont</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Paul J. Skiermont</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Texas State Bar No. 24033073</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: pskiermont@skiermontderby.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Eliot J. Walker </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Texas State Bar No. 24058165 </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: ewalker@skiermontderby.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Shellie Stephens </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Texas State Bar No. 24079398</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: sstephens@skiermontderby.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">2200 Ross Ave., Suite 4800W</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Dallas, Texas 75201</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Telephone No.: (214) 978-6600</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Facsimile No.: (214) 978-6601</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Of Counsel:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>BARTLIT BECK HERMAN PALENCHAR &amp; SCOTT LLP</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Glen E. Summers (<I>Pro Hac Vice)</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: glen.summers@bartlit-beck.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Joseph Doman (<I>Pro Hac Vice)</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: joe.doman@bartlit-beck.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">1899 Wynkoop Street, 8th Floor</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Denver, Colorado 80202</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Telephone No. (303) 592-3100</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Facsimile No.: (303) 592-3140</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">John D. Byars (<I>Pro Hac Vice pending)</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Email: john.byars@bartlit-beck.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Courthouse Place</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">54 W. Hubbard St., Suite 300</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Chicago, Illinois 60654</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Telephone No. (312) 494-4400</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Facsimile No.:&nbsp;&nbsp;(312) 494-4440</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Attorneys for Sessa Capital (Master), L.P., Sessa Capital GP, LLC, Sessa Capital IM, L.P., Sessa Capital IM GP, LLC, John E. Petry, Philip B. Livingston, Lawrence A. Cunningham, Daniel B. Silvers, Chris D. Wheeler</I></B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><U>CERTIFICATE OF SERVICE</U></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 29, 2016, I electronically submitted
the foregoing document with the clerk of court for the U.S. District Court, Northern District of Texas, using the electronic case
filing system of the court. I hereby certify that I have served all counsel and/or pro se parties of record electronically or by
another manner authorized by Federal Rule of Civil Procedure 5(b)(2).</P>

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    <TD STYLE="width: 35%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>s/ Paul J. Skiermont</I></FONT></TD>
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    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Paul J. Skiermont</FONT></TD>
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