<SEC-DOCUMENT>0001144204-16-122354.txt : 20160901
<SEC-HEADER>0001144204-16-122354.hdr.sgml : 20160901
<ACCEPTANCE-DATETIME>20160831201741
ACCESSION NUMBER:		0001144204-16-122354
CONFORMED SUBMISSION TYPE:	SC 13D/A
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20160901
DATE AS OF CHANGE:		20160831
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:		161864367

	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>v446127_sc13da.htm
<DESCRIPTION>SC 13D/A
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin-top: 0; text-align: center; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 12pt">SECURITIES
AND EXCHANGE COMMISSION</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 12pt">Washington,
D.C. 20549</FONT></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. 13)*</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>August 31, 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"><FONT STYLE="font-family: Times New Roman, Times, Serif">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><FONT STYLE="font-family: Wingdings">&uml;</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: 0pt 0; text-align: center">(Continued on following pages)</P>

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


<!-- Field: Page; Sequence: 1 -->
    <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 COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">CUSIP No. 044102101</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 95%; 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">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 STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</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;&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;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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 47%; 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>
<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">&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: 5%"><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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.5in; width: 35%"><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"><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>
    <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">12.</FONT></TD>
    <TD COLSPAN="2"><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>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">13.</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;9.1%</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">14.</FONT></TD>
    <TD COLSPAN="2"><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; text-indent: 0.5in">&nbsp;</P>


<!-- Field: Page; Sequence: 2; Options: NewSection; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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 COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">CUSIP No. 044102101</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 95%; 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">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 STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 27pt">&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;&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;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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 47%; 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>
<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">&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: 5%"><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; padding-left: 0.5in; width: 35%"><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">&nbsp;</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>
    <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">12. </FONT></TD>
    <TD COLSPAN="2"><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>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">13.</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;9.1%</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">14.&nbsp;&nbsp;</FONT></TD>
    <TD COLSPAN="2"><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>


<!-- Field: Page; Sequence: 3; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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 COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">CUSIP No. 044102101</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 95%; 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">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 STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</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;&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;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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 47%; 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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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>
<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">&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: 5%"><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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.5in; width: 35%"><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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">12. </FONT></TD>
    <TD COLSPAN="2"><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>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">13. </FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;9.1%</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">14.</FONT></TD>
    <TD COLSPAN="2"><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>


<!-- Field: Page; Sequence: 4; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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 COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">CUSIP No. 044102101</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 95%; 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">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 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 STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</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;&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;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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 47%; 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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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>
<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">&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: 5%"><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</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.5in; width: 35%"><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"><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>
    <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">12.</FONT></TD>
    <TD COLSPAN="2"><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>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">13.</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;9.1%</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">14.</FONT></TD>
    <TD COLSPAN="2"><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>


<!-- Field: Page; Sequence: 5; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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 COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">CUSIP No. 044102101</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="width: 95%; 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">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">John Petry</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 STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(A)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(B)&nbsp;&nbsp;</FONT><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 0.25in">&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><P STYLE="margin: 0pt 0">Source of Funds (See Instructions)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AF</P>


</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;United States</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: 20%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Number of</FONT></TD>
    <TD STYLE="width: 8%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">7.</FONT></TD>
    <TD STYLE="width: 25%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Sole Voting Power</FONT></TD>
    <TD STYLE="width: 47%; 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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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>
<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">&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: 5%"><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</FONT></TD>
    <TD STYLE="width: 35%; border-bottom: Black 1pt solid; padding-left: 0.5in"><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"><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>
    <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">12.</FONT></TD>
    <TD COLSPAN="2"><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>
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">13.</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif">Percent of Class Represented by Amount in Row (11)&nbsp;&nbsp;&nbsp;9.1%</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">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <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">14.</FONT></TD>
    <TD COLSPAN="2"><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; text-indent: 0.5in">&nbsp;</P>


<!-- Field: Page; Sequence: 6; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">Items 4, 5 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-indent: 0.5in; text-align: justify">On August 9, 2016, AHP issued a press release
announcing certain corporate governance changes that AHP characterized as &ldquo;enhancements.&rdquo; The Reporting Persons believe
AHP&rsquo;s press release is misleading and fails to disclose information necessary for AHP stockholders to understand and assess
the purported enhancements.</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; text-indent: 0.5in; text-align: justify">AHP announced that it would separate the
roles of Chairman and CEO. But AHP&rsquo;s press release failed to reveal that, unlike most public companies, this change will
have little, if any, impact at AHP because AHP has a highly unusual arrangement in which Ashford Inc. appoints AHP&rsquo;s CEO.
So while Monty Bennett, AHP&rsquo;s Chairman, will apparently surrender his CEO title, Ashford Inc., which Mr. Bennett controls
as its Chairman and CEO, will appoint AHP&rsquo;s new CEO. The Reporting Persons believe that separation of AHP&rsquo;s Chairman
and CEO roles is largely illusory in such circumstances and that AHP&rsquo;s disclosures surrounding the change are, therefore,
misleading.</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; text-align: justify">In addition, AHP announced that stockholders
will be permitted to have their director nominees included in AHP&rsquo;s proxy statement, subject to narrow constraints and extensive
requirements. Among the requirements are that the stockholders have held at least 3% of the Shares for at least 3 years, which
means that no stockholders currently meet the standard because AHP has not even been public for 3 years. The Reporting Persons
believe it is troubling that AHP&rsquo;s proxy access proposal does not designate the stockholder-nominated directors as &ldquo;continuing
directors&rdquo; under the unusual terms of the Proxy Penalty in AHP&rsquo;s advisory agreement with Ashford Inc. While appearing
to grant a tiny handful of stockholders limited access to AHP&rsquo;s proxy statement, AHP&rsquo;s incumbent directors continue
to cling to the ability to use the Proxy Penalty to threaten and coerce stockholders into voting for the incumbent directors by
treating such stockholder-nominated directors as counting towards triggering the Proxy Penalty. The Reporting Persons believe that
AHP&rsquo;s failure to commit to fair elections of directors means that AHP&rsquo;s corporate governance will continue to raise
serious concerns for stockholders and discourage investors from considering an investment in the Shares.</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; text-align: justify">AHP also announced it would adopt a majority
voting standard in uncontested elections. AHP has failed to reveal the amendment to its articles that will implement the change,
but has disclosed a related bylaw amendment that the Reporting Persons believe is fatally flawed and, once again, is disclosed
in a misleading fashion.</P>

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


<!-- Field: Page; Sequence: 7; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Specifically, buried in the details of AHP&rsquo;s
bylaw amendment is a provision under which &ldquo;withhold votes&rdquo; will be ignored when determining if a director has received
a majority of the votes. AHP thus takes the position that a withhold vote is not a vote against a nominee. By counting only &ldquo;for&rdquo;
votes in the director election, the Reporting Persons believe this bylaw officially turns the AHP election process into even more
of a farce than it is already. This position is particularly telling because stockholders overwhelmingly voted to withhold votes
from each of the incumbent directors at the 2016 annual meeting. AHP&rsquo;s board apparently is adopting a majority vote provision
that will give incumbent directors cover to ignore withhold votes in the future.</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; text-align: justify">In addition, the bylaw amendment includes
no requirement that a defeated director resign from the board and be replaced. Under Maryland law, an incumbent director continues
to serve until his or her replacement is elected. So a director who fails to be re-elected under AHP&rsquo;s majority vote proposal
will continue to serve. Even if the rejected incumbent resigned, under the bylaw proposal, the AHP board apparently could reject
the resignation in the same way the board rejected the resignations of each board member after a majority of the stockholders withheld
their votes from the incumbent directors at the 2016 annual meeting. Based on the information about the proposal disclosed to date,
the Reporting Persons believe the AHP board is essentially replacing its existing toothless &ldquo;Corporate Governance Guidelines&rdquo;
with a bylaw of even less substance, while at the same time touting the change in the press release as an &ldquo;enhancement&rdquo;
in corporate governance. Rather than trying to game its ISS Quickscore, the Reporting Persons believe AHP should provide its stockholders
with improvements of substance.</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; text-align: justify">The Reporting Persons believe that AHP is
continuing the campaign of misinformation that AHP&rsquo;s management and board have followed for many months. The Reporting Persons
will continue to monitor AHP&rsquo;s announcements on corporate governance and developments with respect to offers to acquire AHP.</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 August 2, 2016,
a panel of the Court of Appeals for the Fifth Circuit held a hearing on Sessa Capital&rsquo;s appeal of the district court&rsquo;s
decisions in the lawsuits between AHP and Sessa Capital. A copy of Sessa Capital&rsquo;s opening brief dated June 24, 2016 and
Sessa Capital&rsquo;s reply brief dated July 19, 2016 are attached as Exhibits 1 and 2, respectively, and incorporated by reference
in this Item 4 in their entirety.</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-indent: 0.5in; text-align: justify">Also on August 2, 2016, Sessa Capital filed
a reply in support of its motion to dismiss the amended complaint filed by Ashford Inc. against Sessa Capital. This motion to dismiss
asserts in part that the termination fee in AHP&rsquo;s advisory agreement with Ashford Inc. is an unenforceable penalty. A copy
of Sessa Capital&rsquo;s reply dated August 2, 2016 in support of its motion to dismiss Ashford Inc.&rsquo;s amended complaint
is attached as Exhibit 3 and incorporated by reference in this Item 4 in its entirety.</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">Sessa Capital reviews
its investment in AHP on a continuing basis and, depending upon the price of and other market conditions relating to the Shares;
developments affecting AHP, AHP&rsquo;s business and prospects; Sessa Capital&rsquo;s investment objectives and the other investment
opportunities available to Sessa Capital; general stock market and economic conditions; tax considerations; the matters discussed
in the next paragraph; and other factors then deemed relevant, Sessa Capital may decide to increase or decrease the size of its
investment in AHP, including: (i) acquiring additional Shares and/or other equity, debt, notes, other securities, or derivative
or other instruments that are based upon or relate to the value of the Shares or AHP (collectively, &ldquo;Securities&rdquo;) in
the open market or otherwise; (ii) disposing of any or all of its Securities in the open market or otherwise; and (iii) engaging
in hedging or similar transactions with respect to the Securities.</P>

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


<!-- Field: Page; Sequence: 8; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">AHP's articles of incorporation
effectively limit beneficial ownership of the Shares by any person or group to 9.8% of the Shares outstanding, without AHP&rsquo;s
consent. Based on communications from AHP representatives, the Reporting Persons do not believe such a waiver would be forthcoming
and do not intend to request one prospectively. As a result of AHP&rsquo;s repurchases of Shares, the Reporting Persons&rsquo;
beneficial ownership of Shares has increased from 8.2% to 9.1%. According to AHP&rsquo;s recent disclosures, AHP has continued
authority under its repurchase program to repurchase additional shares. The Reporting Persons intend to manage Sessa Capital&rsquo;s
position, which would include the disposition of Shares, to ensure that it remains below the 9.8% ownership threshold set forth
in AHP&rsquo;s articles.</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 5. Interest in Securities of AHP</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-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-indent: 0.5in; text-align: justify">(a) As of the date of this amendment, Sessa
Capital directly owns 2,330,726 Shares, representing approximately 9.1% of the 25,644,258 outstanding Shares as of August 5, 2016,
as reported in AHP&rsquo;s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2016. Sessa
Capital GP, Sessa IM, Sessa IM GP and Mr. Petry, by virtue of the relationships set forth under Item 2 of this statement, may be
deemed to indirectly beneficially own the Shares directly owned by Sessa Capital.</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"><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 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: 20%; padding-left: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit 1</FONT></TD>
    <TD STYLE="width: 80%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Opening brief of Appellants dated June 24, 2016. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit 2</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reply brief of Appellants dated July 19, 2016. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.5in">&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Exhibit 3</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Reply in support of Defendants&rsquo; motion to dismiss dated August 2, 2016. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.5in; text-indent: -1in">&nbsp;</P>


<!-- Field: Page; Sequence: 9; Value: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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>

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

<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: 47%; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 53%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Date: August 31, 2016</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">/s/ John Petry</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">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. </FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: justify">&nbsp;</P>


<!-- Field: Page; Sequence: 10; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center">Page <!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v446127_ex99-1.htm
<DESCRIPTION>EXHIBIT 1
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

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

<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>Case No. 16-10671</B></P>

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL (MASTER), L.P.,</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Defendant&ndash;Third Party Plaintiff &ndash;
Appellant</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL GP, L.L.C.; SESSA CAPITAL IM,
L.P.; SESSA CAPITAL IM</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">GP, L.L.C.; JOHN E. PETRY; PHILIP B. LIVINGSTON; LAWRENCE A.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">CUNNINGHAM; DANIEL B. SILVERS; CHRIS D. WHEELER,</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DOUGLAS A. KESSLER; ANDREW STRONG; STEFANI D.
CARTER; CURTIS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">B. MCWILLIAMS; MONTY J. BENNETT; ASHFORD HOSPITALITY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">ADVISORS, L.L.C.; ASHFORD, INCORPORATED; MATTHEW</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">D. RINALDI; W. MICHAEL MURPHY,</P>

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Consolidated w/16-10672</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL (MASTER), L.P.; SESSA CAPITAL
GP, L.L.C.; SESSA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">CAPITAL IM, L.P.; SESSA CAPITAL IM GP, L.L.C.; JOHN E. PETRY; PHILIP B.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">LIVINGSTON; LAWRENCE A. CUNNINGHAM;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DANIEL B. SILVERS; CHRIS D. WHEELER,</P>

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

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

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


<!-- Field: Page; Sequence: 1 -->
    <DIV STYLE="margin-top: 6pt; 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: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">On Appeal from the 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, Dallas Division</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Civ. Nos. 3:16-cv-00527-N and 3:16-cv-00713</P>

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&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; background-color: White">
    <TD STYLE="width: 49%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">John D. Byars</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-variant: small-caps">Bartlit
Beck Herman Palenchar<BR>
&amp; Scott</FONT> LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Courthouse Place</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">54 W. Hubbard Street, Suite 300</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Chicago, Illinois 60654</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (312) 494-4400</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (312) 494-4440</P></TD>
    <TD STYLE="width: 51%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Glen E. Summers, Lead Counsel</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Joseph W. Doman</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; <BR>
Scott</FONT> LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">1899 Wynkoop Street, 8th Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Denver, Colorado 80202</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Telephone No. (303) 592-3100</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Facsimile No. (303) 592-3140</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I></P>

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

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


<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 6pt; 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: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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-align: center">Nos. 16-10671 and 16-10672</P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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>IN THE UNITED STATES COURT OF APPEALS</B></P>

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><I>Ashford
Hospitality Prime, Inc. v. Sessa Capital (Master), L.P.</I></FONT></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 45%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The undersigned counsel of record certifies
that the following listed persons and entities as described in the fourth sentence of Rule 28.2.1 have an interest in the outcome
of this case. These representations are made in order that the judges of this Court may evaluate possible disqualification or recusal.</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">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa Capital (Master), L.P. (&ldquo;Sessa&rdquo;),
Defendant-Appellant, Counterclaimant and Third-Party Claimant, is a Cayman Islands exempted limited partnership that is not publicly
traded;</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">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa Capital GP, LLC, Defendant-Appellant,
is a Delaware limited liability company that is not publicly traded;</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">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa Capital IM, L.P., Defendant-Appellant,
is a Delaware limited partnership that is not publicly traded;</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">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa Capital IM GP, LLC, Defendant-Appellant,
is a Delaware limited liability company that is not publicly traded;</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">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John E. Petry, Defendant-Appellant, is
the founder and manager of the Sessa entities and one of the persons nominated by Sessa as a candidate for election to the board
of Ashford Hospitality Prime Inc. (&ldquo;Ashford Prime&rdquo;);</P>

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


<!-- Field: Page; Sequence: 3; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Philip B. Livingston, Defendant-Appellant,
is one of the persons nominated by Sessa as a candidate for election to the board 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">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lawrence A. Cunningham, Defendant-Appellant,
is one of the persons nominated by Sessa as a candidate for election to the board 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">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Daniel B. Silvers, Defendant-Appellant,
is one of the persons nominated by Sessa as a candidate for election to the board 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">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chris D. Wheeler, Defendant-Appellant,
is one of the persons nominated by Sessa as a candidate for election to the board of Ashford Hospitality Prime Inc.;</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">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ashford Hospitality Prime, Inc., Plaintiff-Counterclaim-Defendant-Appellee,
is a publicly traded Maryland corporation. There are no publicly held corporations that own ten percent or more 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">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ashford Inc., Third-Party Defendant-Appellee,
is a publicly-traded Delaware corporation. There are no publicly held corporations that own ten percent or more of Ashford Inc.;</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">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ashford Hospitality Advisors LLC, Third-Party
Defendant-Appellee, is a Delaware limited liability company and a subsidiary of and the operating company of Ashford Inc.;</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">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Monty J. Bennett, Third-Party Defendant-Appellee,
is the CEO and Chairman of the Board of Directors of Ashford Hospitality Prime;</P>

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


<!-- Field: Page; Sequence: 4; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Douglas A. Kessler, Third-Party Defendant-Appellee,
is a member of the Board of Directors 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">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stefani D. Carter, Third-Party Defendant-Appellee,
is a member of the Board of Directors 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">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Curtis B. McWilliams, Third-Party Defendant-Appellee,
is a member of the Board of Directors 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">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W. Michael Murphy, Third-Party Defendant-Appellee,
is a member of the Board of Directors 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">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Matthew D. Rinaldi, Third-Party Defendant-Appellee,
is a member of the Board of Directors of Ashford Prime; and</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">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Andrew Strong, Third-Party Defendant-Appellee,
is a member of the Board of Directors of Ashford Prime.</P>

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


<!-- Field: Page; Sequence: 5; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iii<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Attorneys for Defendants-Appellants:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; background-color: White">
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt">Glen E. Summers</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt">Sundeep Kumar (Rob) Addy</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Joseph W. Doman</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-variant: small-caps">Bartlit
Beck Herman Palenchar<BR>
&amp; Scott</FONT> LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">1899 Wynkoop Street, 8th Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Denver, Colorado 80202</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Telephone No. (303) 592-3100</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt">Facsimile No. (303) 592-3140</P></TD>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Paul J. Skiermont</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Eliot J. Walker</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Shellie Stephens</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps">Skiermont Derby</FONT> LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">2200 Ross Ave., Suite 4800W</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dallas, Texas 75201</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (214) 978-6600</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (214) 978-6601</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 12.95pt; font-size: 10pt; text-indent: -12.95pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">John D. Byars</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-variant: small-caps">Bartlit
Beck Herman Palenchar<BR>
&amp; Scott LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Courthouse Place</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">54 W. Hubbard St., Suite 300</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Chicago, Illinois 60654</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (312) 494-4400</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt">Facsimile No. (312) 494-4440</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">John B. Isbister</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Daniel S. Katz</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Christopher D. Heagy</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Thomas M. Joraanstad</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps">Tydings &amp; Rosenberg</FONT>
        LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">100 East Pratt Street, 26th Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Baltimore, Maryland 21202</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (410) 752-9700</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (410) 727-5460</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><I>Attorneys for Plaintiffs-Appellees:</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; background-color: White">
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Martin L. Seidel</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Nathan M. Bull</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Jared Stanisci</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Jonathan Morind Hoff</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps">Cadwalader, Wichersham &amp;
        Taft LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">200 Liberty Street</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">New York, New York 10281</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (212) 504-6000</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (212) 406-6666</P></TD>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Matthew G. Nielsen</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">James C. Bookhout</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Bradley W. Foster</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps">Andrews Kurth LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">1717 Main Street, Suite 3700</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dallas, Texas 75201</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (214) 659-4400</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (214) 659-4401</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">&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 6; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iv<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&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; background-color: White">
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">G. Stewart Webb, Jr.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">John T. Prisbe</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Michael J. Vilson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-variant: small-caps">Venable</FONT> LLP</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">750 East Pratt Street, Suite 900</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Baltimore, Maryland 21202</P></TD>
    <TD STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">David Clarke, Jr.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">DLA <FONT STYLE="font-variant: small-caps">Piper</FONT> LLP (US)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">500 8th Street, NW</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Washington, DC 20004</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (202) 799-4503</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No (202) 799-5503</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">James D. Mathias</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">DLA <FONT STYLE="font-variant: small-caps">Piper</FONT> LLP (US)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">6225 Smith Avenue</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Baltimore, Maryland 21209</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (410) 580-3000</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No. (410) 580-3001</P></TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">James R. Nelson</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">DLA <FONT STYLE="font-variant: small-caps">Piper</FONT> LLP (US)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">1717 Main Street, Suite 4600</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Dallas, Texas 75201-4629</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Telephone No. (214) 743-4500</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Facsimile No (214) 743-4545</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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; background-color: White">
    <TD STYLE="width: 50%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">s/ <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen E. Summers</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Attorney of Record for Appellants</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 220.5pt; text-indent: -220.5pt"><I>&nbsp;</I></P>


<!-- Field: Page; Sequence: 7; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->v<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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-align: center">STATEMENT OF ORAL ARGUMENT</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 Court has scheduled oral argument for the
morning session on August 2, 2016. <I>See</I> 16-10671 Docket Entry filed June 21, 2016. Appellants&rsquo; counsel is available
and plans to appear for argument at that time. Given the complexity of the legal issues and factual record, Appellants believe
that oral argument would be of assistance to the Court.</P>

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


<!-- Field: Page; Sequence: 8; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->vi<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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-align: center"><B>TABLE OF CONTENTS</B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">CERTIFICATE OF INTERESTED PERSONS</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">i</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">STATEMENT OF ORAL ARGUMENT</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">vi</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">JURISDICTIONAL STATEMENT</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">1</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">ISSUES PRESENTED FOR REVIEW</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">1</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">INTRODUCTION</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">3</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">STATEMENT OF THE CASE</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">4</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 0.5in; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">I.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">The Parties</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">4</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">II.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors&rsquo; Pattern of Attempting to Entrench Themselves</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">7</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">A.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors&rsquo; Control over Ashford Prime Begins to Erode</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">7</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">B.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors&rsquo; Adopt the Proxy Penalty</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">8</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">C.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Use the Proxy Penalty to Campaign Against the Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">9</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">D.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Attempt to Alter the Balance of Voting Power By Issuing Insiders the Penny Preferred Stock</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">10</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">E.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Pursue a Strategy of Disqualifying the Sessa Candidates by Abusing the Bylaws</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">11</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">1.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">The Advance Notice Requirements of the Bylaws</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">11</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">2.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Secretly Create a Special Questionnaire Solely for the Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">12</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">3.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">Taking Advantage of the Newly Expanded Questionnaires, the Incumbent Directors Assert That the Sessa Candidates Failed to Provide Complete and Accurate Information</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">14</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 9; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->vii<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">4.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Purport to Disqualify the Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; width: 0.5in; text-align: right; text-indent: 0in">16</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">PROCEDURAL BACKGROUND</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">17</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">SUMMARY OF ARGUMENT</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">21</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">ARGUMENT</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">I.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">The District Court Erred Because the Maryland Court of Appeals Would Not Apply the Business Judgment Rule to the Incumbent Directors&rsquo; Disqualification of the Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">A.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Have No Power to Determine Who May Stand for Election Against Them</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">B.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">Director Actions That Adversely Affect Stockholder Voting Rights Do Not Receive the Protection of the Business Judgment Rule</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">27</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">C.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Board Impermissibly Used the Bylaws to Discriminate Against the Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">34</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">D.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The District Court Misconstrued the Maryland Statutes</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">36</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">1.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">Section 2-405.1(f) of the Maryland Corporations and Associations Code Does Not Support the District Court&rsquo;s Decision</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">36</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">2.</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">The Recent Amendment to Section 2-405.1 of the Maryland Corporations and Associations Code Does Not Change the Analysis</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">38</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">II.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">Even if the Business Judgment Rule Applies to Actions Regarding Corporate Democracy, the District Court Erred by Ignoring Overwhelming Evidence That the Directors Acted in Bad Faith, Were Conflicted, and Applied the Bylaws in a Discriminatory Manner</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">40</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">A.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Acted in Bad Faith by Applying the Bylaws in a Discriminatory Fashion</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">41</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">B.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Are Interested in the Outcome of the Election</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">42</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">C.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The Incumbent Directors Failed to Act on an Informed Basis</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">43</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.5in; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 0.5in; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">III.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">Even if the Business Judgment Rule Applies to Actions Impacting Stockholder Voting Rights, the District Court Erred by Failing to Apply the Correct Legal Definition of &ldquo;Plans&rdquo;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">46</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">A.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">The District Court Failed to Apply the Correct Definition of &ldquo;Plans&rdquo;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">46</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">B.</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-indent: 0in">Under the District Court&rsquo;s Reasoning, There Was No Basis for Disqualification of Four of the Five Sessa Candidates</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">49</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">IV.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">The District Court Erred By Not Requiring the Incumbent Directors to Approve the Sessa Candidates for Purposes of the Proxy Penalty</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">50</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-indent: 0in">V.</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-indent: 0in">This Court Should Set Aside the Results of the Election and Order a New Election</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">55</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="vertical-align: top">CONCLUSION</TD>
    <TD STYLE="vertical-align: bottom; text-align: right">57</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 11; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ix<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<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"><B>&nbsp;</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.25pt; text-indent: -12.25pt"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 85%; text-indent: 0in"><I>Aprahamian v. HBO &amp; Co.</I>,</TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">531 A.2d 1204 (Del. Ch. 1987)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">22, 25, 42, 43</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Aronson v. Lewis</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">473 A.2d 805 (Del. 1984)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">21, 40</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>ASARCO LLC v. Americas Mining Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">382 B.R. 49 (S.D. Tex. 2007), <I>reconsidered in part on other grounds</I>, 396 B.R. 278 (S.D. Texas 2008)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">28</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Blasius Indus., Inc. v. Atlas Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">564 A.2d 651 (Del. Ch. 1988)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">22, 29, 53</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Boland v. Boland</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">31 A.3d 529 (Md. 2011)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Cummings v. United Artists Theatre Circuit, Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">204 A.2d 795 (Md. 1964)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">30</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Daniels v. New Germany Fund,</I> <I>Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">Civil Action No. MJG-05-1890, 2006 WL 4523622 (D. Md. Mar. 29, 2006)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">22, 29, 38</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Hilton Hotels Corp. v. ITT Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">978 F. Supp. 1342 (D. Nev. 1997)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">21, 32, 33</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Hollis v. Hill</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">232 F.3d 460 (5th Cir. 2000)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Hubbard v. Hollywood Park Realty Enters., Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">No. 11779, 1991 WL 3151 (Del. Ch. Jan. 14, 1991)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">23, 32, 34, 41</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>JANA Master Fund, Ltd. v. CNET Networks, Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">954 A.2d 335 (Del. Ch. 2008)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">23, 34, 41, 47</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Kallick v. SandRidge Energy, Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">68 A.3d 242 (Del. Ch. 2013)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">52, 53, 54, 55</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Kennecott Copper Corp. v. Curtiss-Wright Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">584 F.2d 1195 (2d Cir. 1978)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">25, 56</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 85%; text-indent: 0in"><I>Kramer v. Liberty Property Trust</I>,</TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">968 A.2d 120 (Md. 2009)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">22, 26, 32, 33</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Merrit v. Libby, McNeil &amp; Libby</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">510 F. Supp. 366 (S.D.N.Y. 1981)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">47</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Mo. Portland Cement Co. v. Cargill, Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">498 F.2d 851 (2d Cir. 1974)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">47</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Mottu v. Primrose</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">23 Md. 482 (1865)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">40</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Mountain Manor Realty, Inc. v. Buccheri</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">461 A.2d 45 (Md. Ct. Spec. App. 1983)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">22, 30, 31, 38</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>NCR Corp. v. Am. Tel. &amp; Tel. Co.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">761 F. Supp. 475 (S.D. Ohio 1991)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Openwave Sys. Inc. v. Harbinger Capital Partners Master Fund I, Ltd.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">924 A.2d 228 (Del. Ch. 2007), <I>judgment entered</I>, (Del. Ch. May 31, 2007)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">27, 34, 41</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Pell v. Kill</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">C.A. No. 12251-VCL, 2016 Del. Ch. LEXIS 77 (May 19, 2016)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Poling v. CapLease, Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">No. 0700 Sept. Term 2015, 2016 WL 1749803 (Md. Ct. Spec. App. May 3, 2016)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">34</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>San Antonio Fire &amp; Police Pension Fund v. Amylin Pharm., Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">983 A.2d 304 (Del. Ch.), <I>aff&rsquo;d,</I> 981 A.2d 1173 (Del. 2009)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">51, 53</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Shaker v. Foxby Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">No. 24-C-04-007613, 2005 WL 914385 (Md. Cir. Ct. Mar. 15, 2005)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Shenker v. Laureate Educ., Inc.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">983 A.2d 408 (Md. 2009)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Susquehanna Corp. v. Pan Am. Sulphur Co.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">423 F.2d 1075 (5th Cir. 1970)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">47</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Unocal Corp. v. Mesa Petrol. Co.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">493 A.2d 946 (Del. 1985)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">23</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 13; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->xi<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 85%; text-indent: 0in"><I>W. Dist. Council of Lumber Prod. &amp; Indus. Workers v. Louisiana Pac. Corp.</I>,</TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">892 F.2d 1412 (9th Cir. 1989)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">25, 56</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Werbowsky v. Collomb</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">766 A.2d 123 (Md. 2001)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">25, 42</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><I>Williamson-Dickie Mfg. Co. v. Apparel Ltd.</I>,</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9pt; text-indent: 0in">No. 4:15-CV-164-A, 2015 U.S. Dist. LEXIS 75227 (N.D. Tex. June 10, 2015)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">53</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">Federal Statutes</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">15 U.S.C. &sect; 78aa</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">28 U.S.C. &sect; 1292(a)(1)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">28&nbsp;U.S.C. &sect; 1331</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">28 U.S.C. &sect; 1367</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">28 U.S.C. &sect; 2201</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">Securities Exchange Act of 1934, as amended, Section 13(d)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1, 17</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">Securities Exchange Act of 1934, as amended, Section 14(a)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1, 17</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">Securities Exchange Act of 1934, as amended, Section 27</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">1</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">State Statutes</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">2016 Md. Laws Ch. 170 &sect; 2-405.1(f)(5)(i)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">39</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">2016 Md. Laws Ch. 170 &sect; 2-405.1(i)(1)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">38, 39</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-404(b)(1)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">21, 26</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md</FONT>. <FONT STYLE="font-variant: small-caps">Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md</FONT>. <FONT STYLE="font-variant: small-caps">Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1(e)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">24, 40</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1(f)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">36, 37, 39</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-504(f)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">passim</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-indent: 0in"><FONT STYLE="font-variant: small-caps">Md. Code Ann., Fin. Inst.</FONT>, &sect; 9-216(a)(2)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">37</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 14; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->xii<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; width: 85%; font-weight: bold">Other Authorities</TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">5 William Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher Cyclopedia of the Law of Corporations</FONT> &sect; 2025 (Sept. 2015)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">24</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">8 William Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher Cyclopedia of the Law of Corporations</FONT> &sect; 4191 (Sept. 2015)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">23, 34</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">James L. Hanks, <FONT STYLE="font-variant: small-caps">Maryland Corporation Law</FONT> &sect; 6.8 (Nov. 2015)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">24, 41, 42</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt">Melvin Aron Eisenberg, <I>Access to the Corporate Proxy Machinery</I>, 83 Harv. L. Rev. 1489, 1505 (1970)</TD>
    <TD STYLE="vertical-align: bottom; text-align: right; text-indent: 0in">26</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 15; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt"><!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->xiii<!-- Field: /Sequence -->&nbsp;</P></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>JURISDICTIONAL STATEMENT</B></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">Appellants appeal from preliminary injunction
orders in two related cases in the United States District Court for the Northern District of Texas, Case No. 3:16-CV-0527 (&ldquo;Ashford
I&rdquo;), and Case No. 3:16-CV-0713 (&ldquo;Ashford II&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 district court had subject matter jurisdiction
in Ashford I pursuant to 28&nbsp;U.S.C. &sect; 1331 and Section 27 of the Securities Exchange Act of 1934, as amended, and 15 U.S.C.
&sect; 78aa, as Ashford I involved claims under Sections 13(d) and 14(a) of the Securities Exchange Act of 1934 (the &ldquo;Exchange
Act&rdquo;). The district court had subject matter jurisdiction of Appellant&rsquo;s counterclaims in Ashford I pursuant to 28&nbsp;U.S.C.
&sect;&sect; 1331, 1367 and 2201. The district court had subject matter jurisdiction in Ashford II pursuant to 28 U.S.C. &sect;
1331, as Ashford II was a virtually identical action to Ashford I and raised the same allegations that Appellants failed to comply
with Sections 13(d) and 14(a) of the Exchange Act.</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 Court has jurisdiction pursuant to 28 U.S.C.
&sect; 1292(a)(1), as this appeal is from an order denying a motion for preliminary injunction in Ashford I and granting a motion
for preliminary injunction in Ashford II. (ROA.16-10671.4144-56; ROA.16-10672.4641-53) Appellants timely filed their notice of
appeal on Monday, May 23, 2016, three days after the entry of the district court&rsquo;s Friday, May 20, 2016 preliminary injunction
order. (ROA.16-10671.4157-59; ROA.16-10672.4654-56)</P>

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


<!-- Field: Page; Sequence: 16; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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>ISSUES PRESENTED FOR REVIEW</B></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 0 0 0.5in">The principal issues presented in this appeal are:</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether the district court erred by holding,
under Maryland law, that a decision by a corporation&rsquo;s incumbent board of directors to disqualify every competing candidate
nominated by the stockholders to run against the incumbent directors for election to the board is reviewed only under the deferential
business judgment rule, when Maryland&rsquo;s highest court and every other court to address the issue has reached the conclusion
that such acts of stockholder disenfranchisement are not protected by the business judgment rule.</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">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether the district court erred in applying
the business judgment rule by ignoring overwhelming evidence that the incumbent directors acted in bad faith, while laboring under
a conflict of interest, and impermissibly applied the bylaws in a discriminatory and inequitable manner to effectively disenfranchise
the stockholders.</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">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether the district court erred by failing
to apply the correct legal definition of &ldquo;plans&rdquo; as that term is defined under the federal securities laws and, by
reference, in the Company&rsquo;s bylaws, when it determined that the incumbent directors could rationally have determined that
the competing candidates failed to disclose their plans for the Company.</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">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 10pt">Whether
the incumbent directors have a fiduciary duty to approve the competing candidates for purposes of a contractual change-in-control
provision, in order to allow stockholders to vote for the competing candidates without fear of triggering a penalty of &ldquo;hundreds
of millions of dollars,&rdquo; representing more than half of the Company&rsquo;s entire market capitalization.</FONT></P>

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


<!-- Field: Page; Sequence: 17; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>INTRODUCTION</B></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 appeal arises out of an unprecedented preliminary
injunction order enforcing a decision by the incumbent directors of a public company to wrongfully entrench themselves in office
by refusing to allow any competing candidates to run for election against them. In an opinion that stunned the legal community,<SUP>1</SUP>
the district court erroneously held, applying Maryland law, that the incumbent directors&rsquo; decision to disqualify every competing
candidate is protected by the business judgment rule. The district court&rsquo;s order was so out of line with established precedent
that the Company&rsquo;s counsel boasted that it is the &ldquo;first time a court has invalidated an activist shareholder&rsquo;s
slate on the basis of the activist&rsquo;s failure to comply with the substantive disclosure provisions of a company&rsquo;s advance
notice bylaws.&rdquo; (<U>http://www.cadwalader.com/news/news-release/cadwalader-successfully-represents-ashford-hospitality-prime-inc-in-battle-with-shareholder-activist-.</U>)</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 explained in detail below, the district court&rsquo;s
order inexplicably ignores a decision by Maryland&rsquo;s highest court, decisions from Maryland trial courts, decisions from federal
district courts applying Maryland law, and an extensive body of persuasive Delaware case law all reaching the opposite conclusion
that actions taken by an incumbent board that adversely affect stockholder voting rights are not protected by the business judgment
rule.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>1</SUP> Law360 has described this case as &ldquo;the proxy
contest everyone is watching.&rdquo; (<U>http://www.law360.com/articles/800692/a-closer-look-at-the-proxy-case-everyone-s-talking-about.</U>)</P>

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


<!-- Field: Page; Sequence: 18; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">As a result of the district court&rsquo;s preliminary
injunction, the incumbent directors stood for re-election unopposed at the Company&rsquo;s annual meeting on June 10, 2016 and
were therefore re-elected by default. But in an unprecedented rebuke, the Company&rsquo;s stockholders sent a loud and clear message
by overwhelmingly voting, by margins of almost 2-1, to &ldquo;withhold&rdquo; approval for the incumbent directors.</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 district court&rsquo;s decision represents
a devastating blow to corporate democracy. In this case, it deprived the Company&rsquo;s stockholders of the right to vote for
any candidates other than the incumbent directors. It also sets a dangerous precedent that gives incumbent boards <I>carte blanche</I>
to engage in acts of entrenchment that have heretofore been thought untenable.</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 Court should use its broad equitable powers
to remedy the injustice caused by the district court&rsquo;s decision by ordering that the results of the election be set aside
and that a new election be held in which the competing candidates are allowed to run.</P>

<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>STATEMENT OF THE CASE</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: black"><B>I.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Parties</B></FONT></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">Ashford Hospitality Prime, Inc. (&ldquo;Ashford
Prime&rdquo; or the &ldquo;Company&rdquo;) is a small, publicly-traded real estate investment trust that owns hotels. The Company
is incorporated in Maryland and its principal place of business is in Dallas, Texas. Ashford Prime&rsquo;s current market capitalization
is less than $500 million. Ashford Prime has no employees. Instead, its management is delegated to two companies, Ashford Inc.
and Ashford Hospitality Advisors LLC (collectively the &ldquo;Ashford Advisors&rdquo;), which are controlled by its chairman and
CEO, Monty Bennett. (ROA.16-10672.2044, .2056)</P>

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


<!-- Field: Page; Sequence: 19; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Sessa is a hedge fund that owns approximately
8.2% of Ashford Prime&rsquo;s common stock, making it the Company&rsquo;s third largest stockholder. (ROA.16-10672.2625) In an
effort to address what Sessa believes is the Company&rsquo;s poor corporate governance problems and related stock underperformance,
Sessa seeks to nominate five individuals, John E. Petry, Phillip B. Livingston, Lawrence A. Cunningham, Daniel B. Silver and Chris
D. Wheeler (the &ldquo;Sessa Candidates&rdquo;) to stand for election to Ashford Prime&rsquo;s seven-member board of directors.<SUP>2</SUP></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 Sessa Candidates are remarkably well-qualified.
As a group, they include graduates of Harvard Business School, the Wharton School of Business, the Haas School of Business at U.C.
Berkeley, a chaired professor of law who specializes in corporate governance, and former CEOs and CFOs who have served on the boards
of at least 16 public companies. (ROA.16-10671.3444-47) Only one of the Sessa Candidates, John Petry, is employed by Sessa; the
other four have no affiliation whatsoever with Sessa. (<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>2</SUP> Sessa initially sought to nominate the Sessa
Candidates to stand for election at the Company&rsquo;s 2016 annual meeting, which took place on June 10, 2016. Sessa now seeks
to set aside the results of the 2016 annual meeting and to require a new election. Unless Ashford Prime materially improves its
corporate governance and addresses its stock performance, Sessa intends to nominate the same, or a substantially similar slate
of candidates, for election at the 2017 annual meeting.</P>

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


<!-- Field: Page; Sequence: 20; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 Ashford Prime board of directors is comprised
of two insiders and five outside directors. The two insiders are Monty J. Bennett, the Company&rsquo;s Chairman and CEO, and the
son of the founder of the original Ashford entities; and Douglas A. Kessler, the Company&rsquo;s President. The five outside directors
are: Curtis B. McWilliams, the Company&rsquo;s lead director; Stefani D. Carter, Chair of the Nominating and Governance Committee;
Andrew Strong, the other member of the two-person Nominating and Governance Committee; Matthew D. Rinaldi; and W.&nbsp;Michael
Murphy.</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">Three of the five outside directors (Carter,
Strong and Rinaldi) are lawyers with no substantial business or hospitality experience and no other experience as board members
of public companies. The outside directors are far from independent. Ms. Carter, the Chair of the Nominating and Governance Committee,
is financially dependent on the position as she has little or no other income.<SUP>3</SUP> Mr. Murphy is a forty-year friend of
Mr. Bennett&rsquo;s father, who depends on the position for roughly 30% of his annual income. (ROA.16-10672.2164) Mr. Strong has
been a personal friend of Mr. Bennett since high school. (ROA.16-10672.2150-51) Mr. Rinaldi is a Texas State Representative whose
campaigns have been funded by Mr. Bennett. (ROA.16-10672.2151) Indeed, when the company went public in 2013, Mr. Bennett hand-selected
four of the five outside directors. (ROA.16-10672.2150-55)</P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><SUP>&nbsp;</SUP></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><SUP>3</SUP> Ms. Carter&rsquo;s annual income in 2015 was
less than $300,000 and perhaps even less than $200,000. (ROA.16-10672.2184) Her compensation as a director of Ashford Prime was
$167,380. (ROA.16-10672.2072)</P>

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


<!-- Field: Page; Sequence: 21; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; 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"><FONT STYLE="color: black"><B>I</B></FONT><B><FONT STYLE="color: windowtext">I.</FONT></B></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors&rsquo; Pattern of Attempting to Entrench Themselves</B></FONT></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">Since the Company went public in 2013, the incumbent
directors have consistently failed to act in the best interests of Ashford Prime and its stockholders, approving transactions benefitting
only Mr. Bennett and the Ashford Advisors, which he 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. (ROA.16-10671.80) 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. (ROA.16-10671.79) 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.</P>

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


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>A.</B></TD><TD><FONT STYLE="color: windowtext"><B>The Incumbent Directors&rsquo;
                                         Control over Ashford Prime Begins to Erode </B></FONT></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 2014 and 2015, the Company&rsquo; public
stockholders began to assert their rights and 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. (ROA.16-10671.515, .553) 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. (ROA.16-10671.563)</P>

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


<!-- Field: Page; Sequence: 22; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 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: 0.5in"><B>B.</B></TD><TD><FONT STYLE="color: windowtext"><B>The Incumbent Directors&rsquo;
                                         Adopt the Proxy Penalty</B></FONT></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">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
a Third Amended and Restated Advisory Agreement (the &ldquo;TAAA&rdquo;) with the Ashford Advisors. (ROA.16-10671.3270-306) The
TAAA fundamentally altered the terms of the Advisory Agreement with the Ashford Advisors in ways that were highly detrimental to
the Company. Most importantly, the TAAA gave the Ashford Advisors a right to terminate the TAAA and collect a penalty in the event
of a change in the composition of a majority of the Company&rsquo;s board (the &ldquo;Proxy Penalty&rdquo;).<SUP>4</SUP> (ROA.16-10671.3294-95;
<I>cf.</I> ROA.16-10671.3307-37) Although the exact amount of the Proxy Penalty is not known because it is the product of a calculation
with inputs known only to the Ashford Advisors, the Company and the Ashford Advisors have publicly stated that it is in the hundreds
of millions of dollars. (ROA.16-10671.862) The Company received nothing of any real value in return for these significant changes
to the TAAA.<SUP>5</SUP></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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>4</SUP> Discovery has revealed that the incumbent directors
failed to comply with their duty of care in approving the TAAA. The Proxy Penalty was not even discussed by the board when it approved
the TAAA. (ROA.16-10671.3546-47, ROA.16-10671.3579-83) The board never even considered the fact that the Proxy Penalty might undermine
the stockholder franchise. (ROA.16-10671.3562) Moreover, the incumbent directors did not obtain independent legal advice or financial
advice before entering into the TAAA. (ROA.16-10671.3538-39; ROA.16-10671.3551)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><SUP>5</SUP> The Company contends that the TAAA provided two
benefits: (1) so-called &ldquo;key money&rdquo; financing from Ashford, Inc., and (2) shortening the term of the agreement. (ROA.16-10671.1104)
However, under the TAAA, Ashford Inc. is &ldquo;not required to provide any Key Money.&rdquo; (ROA.16-10671.3565) And the companies
have frequently played with the term of the agreement. It was originally five years (ROA.16-10671.3491), then it was lengthened
to 20 years (ROA.16-10671.3323), and then it was reduced back to ten years in the TAAA (ROA.16-10671.3289).</P>

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


<!-- Field: Page; Sequence: 23; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">In addition to the Proxy Penalty, the Company
included a &ldquo;Proxy Put&rdquo; in its $150 million credit agreement, which provides back-stop liquidity for the Company. The
Proxy Put would allow the Company&rsquo;s lender to require immediate repayment of any outstanding indebtedness in the event of
a change in the composition of a majority of the Company&rsquo;s board.<SUP>6</SUP> (ROA.16-10672.3241-42)</P>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 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: 0.5in"><FONT STYLE="color: windowtext"><B>C.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Use the Proxy Penalty to Campaign Against the Sessa Candidates</B></FONT></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">On January 14, 2016, in compliance with Ashford
Prime&rsquo;s bylaws, Sessa timely provided the Company advance notice of its intention to nominate the Sessa Candidates at the
2016 Annual Meeting. Thereafter, the incumbent directors aggressively used the threat of the Proxy Penalty to discourage stockholders
from voting for the Sessa Candidates.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>6</SUP> The Company has no outstanding indebtedness under
the credit agreement. As a result, the Proxy Put has not been a focal point of the litigation to date.</P>

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


<!-- Field: Page; Sequence: 24; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 example, on March 9, 2016, the Company argued
in a press release that stockholders should not vote for the Sessa Candidates because their election &ldquo;would result<I> </I>in
a contractual obligation for the Company to render a significant termination payment to our advisor, which we estimate to be hundreds
of millions of dollars.&rdquo; (ROA.16-10671.862) Given that the Company&rsquo;s entire market capitalization at the time was less
than $350 million, the threat of a penalty in the &ldquo;hundreds of millions of dollars&rdquo; was coercive and continues to have
an impact going forward. Indeed, the threat caused at least one analyst to recommend that stockholders vote against the Sessa Candidates.
(ROA.16-10671.867)</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, however, the incumbent directors
can avoid any risk of triggering the Proxy Penalty by simply approving two or more of the Sessa Candidates. (ROA.16-10671.3294-95;
<I>see also</I> ROA.16-10671.3523-24, .3550) The TAAA permits the incumbent directors to grant such approval without any conditions,
criteria, standards or guidelines. (ROA.16-10671.3294-95) The TAAA also does not require evaluation or vetting of nominees before
they can be approved.</P>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>D.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Attempt to Alter the Balance of Voting Power By Issuing Insiders
                                         the Penny Preferred Stock</B></FONT></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">On February 2, 2016, just two weeks after Sessa
submitted its nomination materials, the incumbent directors took a further step to entrench themselves by approving the issuance
of a new class of preferred stock to a group of Ashford corporate insiders for $0.01 per share (the &ldquo;Penny Preferred&rdquo;).
The issuance of the Penny Preferred would have given Mr. Bennett and other company insiders 13.3 percent of the Company&rsquo;s
voting power for just $43,750. (ROA.16-10672.3480-82, .3487-88) After Sessa challenged the issuance of the Penny Preferred in this
lawsuit and in a letter to the New York Stock Exchange, the Company rescinded the issuance under pressure from the NYSE, which
had concluded that the issuance violated the NYSE&rsquo;s rules. (ROA.16-10672.2535-36, ROA.16-10672.2168-69)</P>

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


<!-- Field: Page; Sequence: 25; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in; text-align: right"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>E.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Pursue a Strategy of Disqualifying the Sessa Candidates by Abusing
                                         the Bylaws</B></FONT></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 addition to using the Proxy Penalty to coerce
stockholders to vote for the incumbent directors, and attempting to alter the balance of voting power with the Penny Preferred,
the Company also hatched a plan in December 2015 to disqualify the Sessa Candidates and refuse to count any votes in their favor.
Indeed, in a meeting with Sessa on March 24, 2016, a representative of the Ashford Prime board admitted that Ashford Prime had
been pursuing a &ldquo;strategy of declaring [Sessa&rsquo;s] nominees invalid.&rdquo;<SUP>7</SUP> (ROA.16-10672.2036)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1.5in; text-indent: -1.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>1.</B></TD><TD STYLE="text-align: justify"><B>The
                                         Advance Notice Requirements of the Bylaws</B></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">Ashford Prime&rsquo; bylaws contain &ldquo;advance
notice provisions,&rdquo; which are allowed by Maryland law to the extent they require &ldquo;stockholders to provide advance notice
of the nomination or proposal to the corporation before a date or within a period of time specified in the charter or bylaws.&rdquo;
<FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-504(f).</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>7</SUP> The representative also communicated a threat
from Mr. Bennett to &ldquo;rain down a path of destruction&rdquo; on Sessa in retaliation for Sessa pursuing the proxy contest.&nbsp;
(ROA.16-10672.2035-36; ROA.16-10671.1559-62)</P>

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


<!-- Field: Page; Sequence: 26; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 advance notice provisions in Ashford Prime&rsquo;s
bylaws require individuals who are to be nominated for election to the board to complete a questionnaire supplied by the Company
seeking the &ldquo;information relating to the Proposed Nominee that would be required to be disclosed in connection with the solicitation
of proxies for the election of the Proposed Nominee as a director in an election contest . . . pursuant to Regulation 14A (or any
successor provision) under the Exchange Act and the rules thereunder.&rdquo; (ROA.16-10672-2214)</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1.5in; text-indent: -1.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>2.</B></TD><TD STYLE="text-align: justify"><B>The
                                         Incumbent Directors Secretly Create a Special Questionnaire Solely for the Sessa Candidates</B></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">On December 21, 2015, nearly a month before
the January 18, 2016 deadline to submit nomination materials pursuant to the bylaws, Sessa requested the questionnaire from the
Company. (ROA.16-10671.763) The Company had just provided questionnaires to the incumbent directors only days before, on December
15, which were virtually identical to all the questionnaires previously provided to the incumbent directors, including questionnaires
provided before the incumbents were board members. (ROA.16-10672.2227; ROA.16-10672.2371-419, 2014; ROA.16-10672.2421-73, 2015;
and ROA.16-10672.2475-522, 2016) However, unbeknownst to Sessa, the Company did not promptly provide the same questionnaire to
Sessa. (ROA.16-10671.763) Instead, the Company&rsquo;s outside lawyers secretly spent weeks cooking up a new and far more onerous
questionnaire for the Sessa Candidates. (ROA.16-10671.783-833)</P>

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


<!-- Field: Page; Sequence: 27; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">When the Company finally provided Sessa with
the questionnaire on January 8, 2016, it contained 27 new questions and expanded the scope of 34 questions. (<I>Compare</I> ROA.16-10672.2277-326
(questionnaire provided to Sessa) <I>to</I> ROA.16-10672.2475-522 (questionnaire provided to incumbent directors).) The new and
expanded questions were far broader than contemplated by the Company&rsquo;s bylaws, which require disclosure only of the information
that must be provided pursuant to Regulation 14-A. (ROA.16-10672.2215) Indeed, all references to Regulation 14-A were deleted in
the questionnaire and much of the new questionnaire had no connection to the proxy rules. (ROA.16-10672.2277-326)</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 what was effectively an attempt to take discovery
from the Sessa Candidates and gain an unfair advantage in the proxy contest, the new questionnaire demanded disclosure of virtually
every discussion any of the Sessa Candidates had regarding the Company. (ROA.16-10672.2308-13) Furthermore, copies of any &ldquo;related
analysis, emails, correspondence or documentation&rdquo; were demanded. (ROA.16-10672.2313)</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">Because of the Company&rsquo;s three-week delay
in providing the questionnaire to Sessa, the Sessa Candidates had only five business days to complete the lengthy and onerous questionnaire
before the applicable deadline. (ROA.16-10672.2475) Nonetheless, each of the Sessa Candidates fully completed the questionnaire
in the short time given. (ROA.16-10672.3534-824) On January 14, 2016, Sessa overnighted the completed questionnaires and all other
information required pursuant to the bylaws. (<I>Id</I>.) In all, Sessa provided approximately 430 pages of information and incorporated
more by reference to its publicly-available securities filings. (<I>Id</I>.)</P>

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


<!-- Field: Page; Sequence: 28; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 information provided in the completed questionnaires
fully satisfied all the requirements of Regulation 14-A. (<I>Id.</I>) Indeed, Sessa filed its preliminary proxy statement with
the SEC on February 12, 2016, and filed its definitive proxy statement on February 26, 2016. The SEC staff apparently saw no issues
with the content of Sessa&rsquo;s disclosures in its proxy statement, as the staff flagged only a single calculation error in Sessa&rsquo;s
preliminary proxy statement. Even if the information Sessa provided the Company on January 14, 2016 was not complete (which it
was), the Company was not disadvantaged in any way, as it had all information from Sessa required by the proxy rules when Sessa
filed its proxy statement on February 12, 2016, 120 days in advance of the June 10, 2016 annual meeting.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1.5in; text-indent: -1.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>3.</B></TD><TD STYLE="text-align: justify"><B>Taking
                                         Advantage of the Newly Expanded Questionnaires, the Incumbent Directors Assert That the
                                         Sessa Candidates Failed to Provide Complete and Accurate Information</B></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">On January 26, Stefani Carter, the Chair of
the board&rsquo;s two-member Nominating and Governance Committee, wrote Sessa asserting that the Sessa Candidates had not given
complete answers to all of the questions in the questionnaire. (ROA.16-10672.2540-44) All but two of the 22 issues raised by Ms.
Carter involved the new or expanded questions concocted specially for the Sessa Candidates. <I>Id</I>. The two issues on old questions
were easily resolved by clarifications and additional information promptly provided by Sessa on February 3, 2016. (ROA.16-10672.2546-54)</P>

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


<!-- Field: Page; Sequence: 29; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 4, 2016, Ms. Carter wrote to request
more information and meetings with the candidates &ldquo;in order to further evaluate their candidacies.&rdquo; (ROA.16-10672.2556)
Ms. Carter did not identify what further information she was seeking. <I>Id. </I>Sessa promptly responded to Ms. Carter, expressing
a willingness to meet with the incumbent directors, but asked that Ms. Carter clarify what information was sought so that it could
be best prepared to answer her questions. (ROA.16-10672.2558-59) <I> </I>Ms. Carter never replied.</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 their proxy materials, the incumbent directors
warned the stockholders that Sessa had secret, undisclosed plans &ldquo;to invalidate the Termination Fee [Proxy Penalty] in court
and with respect to a potential sale of the company.&rdquo; (ROA.16-10672.2053) In those communications to the stockholders, the
incumbent directors also complained that one of the Sessa Candidates, Mr. Livingston, engaged in &ldquo;resume padding&rdquo; by
claiming that he was a &ldquo;CPA&rdquo; when he had allowed his CPA licenses to expire. They also complained that Mr. Livingston
did not immediately inform the Company of a small purchase of Ashford Prime stock made shortly after submitting his completed questionnaire.</P>

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


<!-- Field: Page; Sequence: 30; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">In its proxy materials, Sessa fully disclosed
its plans, proposals and views regarding the Company and its incumbent management to the Company&rsquo;s stockholders. For example,
in a public Schedule 13-D filing with the SEC on January 8, 2016, Sessa announced that &ldquo;given the corporate governance and
other issues . . ., we now believe that a sale of the Company is the preferred outcome of the strategic alternatives process.&rdquo;
(ROA.16-10671.160) And in a detailed presentation to Ashford Prime stockholders that was also publicly filed with the SEC on March
23, 2016, Sessa expressed its views regarding the Company in great detail, including its intent to consider &ldquo;any strategic
action . . . including asset sales,&rdquo; to &ldquo;[e]xplore all options to invalidate or renegotiate the termination fee,&rdquo;
and to implement &ldquo;&lsquo;best-in-class&rsquo; corporate governance.&rdquo;<SUP>8</SUP></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1.5in; text-indent: -1.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left"><B>4.</B></TD><TD STYLE="text-align: justify"><B>The
                                         Incumbent Directors Purport to Disqualify the Sessa Candidates</B></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">On April 12, 2016, Ashford Prime filed its preliminary
proxy statement. In that filing, almost three months after Sessa nominated the Sessa Candidates, the Company indicated the incumbent
directors might attempt to disqualify the Sessa Candidates. (ROA.16-10672.4562-63) On April 25, the Company filed its definitive
proxy statement, announcing that a determination had been made 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 Livingston&rsquo;s alleged
&ldquo;omi[ssion of] information about [Company] securities holdings&rdquo; and &ldquo;resume padding.&rdquo; (ROA.16-10672.2053)
The definitive proxy statement further stated that proxies 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; (ROA.16-10672.2052)</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>8</SUP> The Company was well aware of these statements.
In fact, a copy of the investor presentation was produced by the Company in discovery on April 29, 2016. (<I>See</I> AHP_00018517-560,
ROA.16-10671.3643-86)</P>

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


<!-- Field: Page; Sequence: 31; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><B>PROCEDURAL BACKGROUND</B></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 negate the Proxy Penalty (the
&ldquo;Maryland Action&rdquo;). On February 25, 2016, Ashford Prime responded by filing a lawsuit against Sessa and the Sessa Candidates
in the United States District Court for the Northern District of Texas (&ldquo;Ashford I&rdquo;) alleging that they had violated
Sections 13(d) and 14(a) of the Securities Exchange Act of 1934 (the &ldquo;Act&rdquo;). (ROA.16-10671.32-34) Two weeks later,
Ashford Prime filed a virtually identical lawsuit against Sessa and the Sessa Candidates in the Circuit Court for Dallas County,
Texas (&ldquo;Ashford II&rdquo;). (ROA.16-10672.1-22)</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 federal court. (ROA.16-10671.252-.330; ROA.16-10672.23-34) In its counterclaims and third party claims,
Sessa alleged that the incumbent directors breached their fiduciary duties by approving the issuance of the Penny Preferred and
refusing to approve the Sessa Candidates for purposes of the Proxy Penalty. (ROA.16-10671.301-03) That same day, Sessa filed a
motion for preliminary injunction seeking to require the board to approve the Sessa Candidates in order to neutralize the Proxy
Penalty and to invalidate the issuance of the Penny Preferred.</P>

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


<!-- Field: Page; Sequence: 32; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">During the pendency of Sessa&rsquo;s preliminary
injunction motion, on April 6, 2016, the incumbent directors voted to rescind the issuance of the Penny Preferred stock under pressure
from the NYSE. (ROA.16-10671.1539; ROA.16-10672.2535-36, .2168) On April 8, the Company filed a notice of mootness with regard
to the Penny Preferred claim. (ROA.16-10671.1538-42)</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 April 13, 2016, Ashford Prime filed a motion
for preliminary injunction in Ashford II. In its motion, Ashford Prime requested that the district court disqualify the Sessa Candidates
on the ground that they had failed to provide complete responses to the director questionnaires and thereby violated the advance
notice provisions of the bylaws.</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 May 4, 2016, after Ashford Prime announced
in its definitive proxy statement that it did not intend to count any votes in favor of the Sessa Candidates, Sessa filed a motion
to expand the scope of relief requested in its pending preliminary injunction motion. (ROA.16-16071.2644-720) In that motion, Sessa
requested that the district court prohibit the incumbent directors from purporting to disqualify the Sessa Candidates and require
the Company to count votes cast in their favor. (ROA.16-10671.2647-48)</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 May 11, 2016, the district court held a brief
oral argument on the parties&rsquo; respective motions. (ROA.16-10671.30, Dkt. 98; ROA.16-10672.21, Dkt. 78) The district court
did not hold an evidentiary hearing. (<I>Id</I>.) Following oral argument on the preliminary injunction motions, at which the district
court requested the parties to discuss settlement, the incumbent directors filed an &ldquo;open letter&rdquo; in the district court
offering to settle the dispute and attempting to portray Sessa as uncompromising. (ROA.16-10671.4137-40; ROA.16-10672.4634-37)</P>

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


<!-- Field: Page; Sequence: 33; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">On May 20, 2016, the district court entered
an order denying Sessa&rsquo;s preliminary injunction motion and granting Ashford Prime&rsquo;s preliminary injunction motion.<SUP>9</SUP>
(ROA.16-10671.4144-56; ROA.16-10672.4641-53) Quoting a decision of the Maryland Court of Appeals, the district court held that
under Maryland law, &ldquo;the business judgment rule applies to all decisions regarding [a] corporation&rsquo;s management.&rdquo;
(ROA.16-10671.4148; ROA.16-10672.4645 (quoting <I>Shenker</I>,<I> </I>983 A.2d at 424.) In its decision, the district court relied
exclusively on that language from the <I>Shenker</I> decision, along with a subsection of the Maryland statute codifying the business
judgment rule which provides that &ldquo;[a]n act of a director relating to or affecting an acquisition or a potential acquisition
of control of a corporation may not be subject to a higher duty or greater scrutiny than is applied to any other act of a director.&rdquo;
(ROA.16-10671.4148-49; ROA.16-10672.4645-46 (quoting <FONT STYLE="font-variant: small-caps">Md</FONT>. <FONT STYLE="font-variant: small-caps">Code
Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1))</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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>9</SUP> The order also dismissed Sessa&rsquo;s motion
to expand the scope of relief sought in its preliminary injunction motion as moot. (ROA.16-10671.4154; ROA.16-10672.4651)</P>

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


<!-- Field: Page; Sequence: 34; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Although the disqualification of the Sessa Candidates
did not involve any &ldquo;management&rdquo; decision or any &ldquo;acquisition&rdquo; of Ashford Prime stock, the district court
nonetheless reviewed Ashford Prime&rsquo;s board&rsquo;s decision to withhold approval of Sessa&rsquo;s candidates under Maryland&rsquo;s
business judgment rule. (ROA.16-10671.4152; ROA.16-10672.4649) Applying the highly deferential business judgment rule, the district
court deferred to the incumbent directors&rsquo; unsupported assertion that Sessa had undisclosed plans and proposals.<SUP>10</SUP>
(ROA.16-10671.4153-54; ROA.16-10672.4650-51 (&ldquo;the board could rationally believe the Sessa candidates had a plan they refused
to disclose in their questionnaires&rdquo;)) The court noted that it did not &ldquo;not necessarily endorse this result,&rdquo;
but concluded that Maryland had made that &ldquo;choice.&rdquo; (ROA.16-10671.4150 n.2; ROA.16-10672.4647 n.2)</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 court then entered a preliminary injunction:
(1) declaring the Sessa Candidates to be &ldquo;invalid and ineligible to stand for election to Ashford Prime&rsquo;s board at
the 2016 annual meeting because of the board&rsquo;s finding that the candidates failed to comply with the advance notice requirements&rdquo;;
(2) enjoining Sessa &ldquo;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;; and (3) enjoining Sessa &ldquo;from soliciting proxy votes for Sessa&rsquo;s
candidates or distributing any proxy materials regarding Sessa&rsquo;s candidates.&rdquo; (ROA.16-10671.4155; ROA.16-10672.4652)</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>10</SUP> The district court declined to address Mr. Livingston&rsquo;s
alleged &ldquo;resume padding&rdquo; and the disclosure of his stock purchase. (ROA.16-10671.4154; ROA.16-10672.4651)</P>

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


<!-- Field: Page; Sequence: 35; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">On May 23, 2016, the Sessa parties filed notices
of appeal in both cases. (ROA.16-10671.4157-59; ROA.16-10672.4654-56) Sessa promptly moved this Court to stay the district court&rsquo;s
order and postpone the annual meeting, as well as to expedite this appeal. On June 2, this Court entered an order denying Sessa&rsquo;s
motion to stay the district court&rsquo;s order and postpone the Company&rsquo;s annual meeting, but granting Sessa&rsquo;s request
that this appeal be expedited.</P>

<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>SUMMARY OF ARGUMENT</B></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">In holding that the incumbent directors&rsquo;
decision to disqualify the Sessa Candidates is protected by Maryland&rsquo;s business judgment rule, the district court committed
a clear error of law.</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 Maryland law, stockholders have the exclusive
right to elect a corporation&rsquo;s directors. <FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT>
&sect; 2-404(b)(1). The incumbent directors have no discretion under Maryland law to determine who may or may not run against them.</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 business judgment rule &ldquo;is a presumption
that in making a business decision the directors of a corporation acted on an informed basis, in good faith, and in the honest
belief that the action taken was in the best interests of the company.&rdquo; <I>Boland v. Boland</I>, 31 A.3d 529, 548 (Md. 2011)
(quoting <I>Aronson v. Lewis</I>, 473 A.2d 805, 812 (Del. 1984)). But the business judgment rule is premised on that power being
&ldquo;limited by the right of shareholders to vote for the members of the board.&rdquo; <I>Hilton Hotels Corp. v. ITT Corp.</I>,
978 F. Supp. 1342, 1347 (D. Nev. 1997). To maintain this balance, courts have distinguished actions relating to the management
of a corporation from actions that interfere with the stockholder franchise. Rather than applying the business judgment rule to
board actions impacting the stockholder franchise, courts hold incumbent directors to the &ldquo;highest standards&rdquo; in &ldquo;conducting
corporate elections.&rdquo; <I>Aprahamian v. HBO &amp; Co.</I>, 531 A.2d 1204, 1206-07 (Del. Ch. 1987).</P>

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


<!-- Field: Page; Sequence: 36; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Maryland&rsquo;s highest court, the Maryland
Court of Appeals, has expressly stated that &ldquo;[w]here the rights attendant to stock ownership are adversely affected,&rdquo;
including specifically when &ldquo;a shareholder&rsquo;s right to vote&rdquo; is impaired, &ldquo;the business judgment rule does
<B><I>not</I></B> apply.&rdquo; <I>Shenker v. Laureate Educ., Inc.</I>, 983 A.2d 408, 424 (Md. 2009) (emphasis added). Every state
and federal court to have considered the issue under Maryland law has reached the same conclusion. <I>See Shaker v. Foxby Corp.</I>,
No. 24-C-04-007613, 2005 WL 914385, at *5 (Md. Cir. Ct. Mar. 15, 2005), <U>http://www.mdcourts.gov/businesstech/opinions_archive2005.html</U>;
<I>Daniels v. New Germany Fund,</I> <I>Inc.</I>, Civil Action No. MJG-05-1890, 2006 WL 4523622 (D. Md. Mar. 29, 2006); <I>Mountain
Manor Realty, Inc. v. Buccheri</I>, 461 A.2d 45, 53 (Md. Ct. Spec. App. 1983); <I>NCR Corp. v. Am. Tel. &amp; Tel. Co.</I>, 761
F. Supp. 475, 496 (S.D. Ohio 1991) (applying Maryland law). Moreover, a well-developed body of Delaware cases, which are treated
as &ldquo;highly persuasive&rdquo; by Maryland courts, <I>Kramer v. Liberty Property Trust</I>, 968 A.2d 120, 133-34 (Md. 2009),
have stablished that actions of incumbent boards which interfere with stockholder voting are subject to heightened scrutiny. <I>See
Blasius Indus., Inc. v. Atlas Corp.</I>, 564 A.2d 651, 661 (Del. Ch. 1988) (requiring a &ldquo;compelling justification&rdquo;
for actions taken with the &ldquo;primary purpose of impeding the exercise of stockholder voting&rdquo;); <I>Unocal Corp. v. Mesa
Petrol. Co.</I>, 493 A.2d 946 (Del. 1985) (applying an intermediate level of heightened scrutiny to legitimate business decisions
that have an incidental impact on stockholder voting rights.</P>

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


<!-- Field: Page; Sequence: 37; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">In reaching the conclusion that the Maryland
Court of Appeals would apply the business judgment rule to the incumbent directors&rsquo; decision disqualifying the competing
candidates nominated by the stockholders, the district court overlooked these authorities. The district court also fundamentally
misread the Maryland statute codifying the business judgment rule, which applies only to the business decisions and transactions
involving the &ldquo;acquisition&rdquo; of a company&rsquo;s securities.</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 district court also overlooked a significant
body of law that advance notice bylaws cannot be used to discriminate against stockholder nominees or to entrench incumbent directors.
8 William Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher Cyclopedia of the Law of Corporations</FONT> &sect;
4191 (Sept. 2015); <I>Shaker</I>, 2005 WL 914385, at *3-4 (discussing authorities).<SUP>11</SUP> Courts do not hesitate to &ldquo;invalidate
board action constituting an inequitable manipulation of the corporate machinery that affected adversely the shareholders&rsquo;
right to conduct a contested election of directors.&rdquo; <I>Hubbard v. Hollywood Park Realty Enters., Inc.</I>, No. 11779, 1991
WL 3151, *7 (Del. Ch. Jan. 14, 1991) (collecting cases). Indeed, it is a fundamental tenet of corporate law that stockholders&rsquo;
right to vote &ldquo;for the directors who are to manage the corporate affairs is one of the most important rights incident to
stock ownership<SUP> </SUP>and should not be annulled for purely technical reasons.&rdquo; 5 William Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher
Cyclopedia of the Law of Corporations</FONT> &sect; 2025 (Sept. 2015).</P>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>11</SUP> Moreover, advance notice provisions are to be narrowly
construed against the Company and in favor of the stockholder franchise. <I>JANA Master Fund, Ltd. v. CNET Networks, Inc.</I>,
954 A.2d 335, 344 (Del. Ch. 2008).</P>

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


<!-- Field: Page; Sequence: 38; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Even if the incumbent directors&rsquo; acts
of entrenchment are properly reviewed under the business judgment rule, the district court&rsquo;s judgment should still be reversed
because the district court also plainly erred in its application of the business judgment rule. Under Maryland law, the business
judgment rule merely creates a presumption that the board acted in good faith on an informed basis. <I>Boland</I>, 31 A.3d at 548;
<FONT STYLE="font-variant: small-caps">Md</FONT>. <FONT STYLE="font-variant: small-caps">Code Ann., Corps. &amp; Ass&rsquo;ns</FONT>
&sect; 2-405.1(e). That presumption can be rebutted with evidence that the directors acted in bad faith, that they had a personal
interest in the matter, or that they did not act on an informed basis. <I>Boland</I>, 31 A.3d at 549; James L. Hanks, <FONT STYLE="font-variant: small-caps">Maryland
Corporation Law</FONT> &sect; 6.8 (Nov. 2015). Here, all of those exceptions have been met.</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 evidence of bad faith here is overwhelming.
A spokesman for the incumbent directors, speaking from approved talking points, admitted that the incumbent directors were pursuing
a &ldquo;strategy&rdquo; of invalidating the Sessa Candidates. (ROA.16-10672.2036)</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">That admission of bad faith is confirmed by
the incumbent director&rsquo;s larger pattern of improper efforts to entrench themselves, their secret misuse of special questionnaires
for the Sessa Candidates that flouted the intent of the bylaws, and other acts of misconduct discussed below.</P>

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


<!-- Field: Page; Sequence: 39; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 incumbent directors were also laboring under
a conflict of interest, as they were all seeking re-election and thus had a personal interest in the decision to disqualify the
candidates who would otherwise have displaced them. <I>See Aprahamian</I>, 531 A.2d at 1206. Maryland and Delaware cases both recognize
that directors&rsquo; decisions are not protected by the business judgment rule under such circumstances. <I>Werbowsky v. Collomb</I>,
766 A.2d 123, 138 (Md. 2001); <I>Aprahamian</I>, 531 A.2d at 1206.</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">Furthermore, the incumbent directors effectively
admitted in discovery that they did not act on an informed basis in disqualifying every Sessa Candidate. Several of the directors
never even reviewed the supposedly deficient questionnaires submitted by the Sessa Candidates. In fact, none of the evidence relied
on by the district court in sustaining the board&rsquo;s action was even available to the board when it decided to disqualify each
Sessa Candidate.</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 Court has broad equitable power to remedy
the injustice created by the district court&rsquo;s preliminary injunction, including the power to set aside the June 10, 2016
annual meeting and order a new election in which the Sessa Candidates are allowed to participate. <I>See W. Dist. Council of Lumber
Prod. &amp; Indus. Workers v. Louisiana Pac. Corp.</I>, 892 F.2d 1412, 1416 (9th Cir. 1989) (holding that the Court of Appeals
has &ldquo;the power to undo the election if . . . such relief is in the best interests of the shareholders&rdquo;); <I>Kennecott
Copper Corp. v. Curtiss-Wright Corp.</I>, 584 F.2d 1195, 1200-01 (2d Cir. 1978). As explained below, the Court should do so here
so that the stockholders can have a fair election of directors with a choice of candidates.</P>

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


<!-- Field: Page; Sequence: 40; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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>ARGUMENT</B></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>I.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         District Court Erred Because the Maryland Court of Appeals Would Not Apply the Business
                                         Judgment Rule to the Incumbent Directors&rsquo; Disqualification of the Sessa Candidates</B></FONT></TD></TR></TABLE>




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>A.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Have No Power to Determine Who May Stand for Election Against Them</B></FONT></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 a threshold matter, stockholders have the
exclusive right to elect a corporation&rsquo;s directors under Maryland law. <FONT STYLE="font-variant: small-caps">Md. Code Ann.,
Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-404(b)(1). &ldquo;As a corollary to their exclusive right to elect the board, the shareholders
have the right to nominate candidates for directorships.&rdquo; Melvin Aron Eisenberg, <I>Access to the Corporate Proxy Machinery</I>,
83 Harv. L. Rev. 1489, 1505 (1970). Indeed, it is axiomatic that &ldquo;when facing an electoral contest, incumbent directors are
not entitled to determine the outcome for the stockholders. Stockholders elect directors, not the other way around.&rdquo; <I>Pell
v. Kill</I>, C.A. No. 12251-VCL, 2016 Del. Ch. LEXIS 77, *4 (May 19, 2016).<SUP>12</SUP> The Ashford Prime bylaws acknowledge these
fundamental principles by expressly providing that stockholders may nominate candidates for election to the board. (ROA.16-10672.2213)
Nothing in Maryland law or the Company&rsquo;s bylaws affords the incumbent directors any power to substantively vet and determine
who may run against them.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>12</SUP> Maryland courts, like the Fifth Circuit, find Delaware
decisions to be &ldquo;highly persuasive&rdquo; on matters of corporate law. <I>See, e.g.</I>,<I> Kramer</I>, 968 A.2d at 134;
<I>Hollis v. Hill</I>, 232 F.3d 460, 469 (5th Cir. 2000) (&ldquo;The opinions of the Delaware courts are often influential in matters
of corporate law.&rdquo;).</P>

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


<!-- Field: Page; Sequence: 41; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Maryland statutes provide that a corporation&rsquo;s
bylaws &ldquo;may require any stockholder proposing a nominee for election as a director or any other matter for consideration
at a meeting of the stockholders to provide advance notice of the nomination or proposal to the corporation before a date or within
a period of time specified in the charter or bylaws.&rdquo; <FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp;
Ass&rsquo;ns</FONT> &sect; 2-504(f).</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">But Maryland law does not give the incumbent
board any right to evaluate, vet or interrogate candidates the stockholders nominate to run against them. <FONT STYLE="font-variant: small-caps">Md.
Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-504(f). Moreover, Delaware courts have held that advance notice provisions
do not give an incumbent board any power to disapprove or reject stockholder nominations or proposal, except perhaps on the limited
and objective grounds that the applicable deadline was not met. <I>See, e.g.</I>,<I> Openwave Sys. Inc. v. Harbinger Capital Partners
Master Fund I, Ltd.</I>, 924 A.2d 228, 240 (Del. Ch. 2007), <I>judgment entered</I>, (Del. Ch. May 31, 2007) (deciding that stockholder
nominees were invalid where stockholder &ldquo;made no attempt to comply with [the advance notice] deadline[s]&rdquo;).</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>B.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>Director
                                         Actions That Adversely Affect Stockholder Voting Rights Do Not Receive the Protection
                                         of the Business Judgment Rule</B></FONT></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 district court&rsquo;s decision was predicated
on its incorrect assumption that director actions interfering with stockholder voting rights are matters of corporate management
that, under Maryland law, are protected by the business judgment rule.<SUP>13</SUP> (ROA.16-10671.4149-50; 16-10672.4646-47) This
is not the law in Maryland.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>13</SUP> Federal courts sitting in Texas apply the law of the
state of incorporation when a corporation&rsquo;s internal affairs are implicated. <I>ASARCO LLC v. Americas Mining Corp.</I>,
382 B.R. 49, 69 (S.D. Tex. 2007), <I>reconsidered in part on other grounds</I>, 396 B.R. 278 (S.D. Texas 2008). The Company is
incorporated in Maryland, so Maryland law applies to Sessa&rsquo;s claim regarding election of directors.</P>

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


<!-- Field: Page; Sequence: 42; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 district court relied on the Maryland Court
of Appeals&rsquo; holding in <I>Shenker&rsquo;</I>s<I> </I>holding that in Maryland, &ldquo;the business judgment rule applies
to all decisions regarding [a] corporation&rsquo;s management.&rdquo; (ROA.16-10671.4148; ROA.16-10672.4645, quoting <I>Shenker</I>,
983 A.2d at 424).) <I> </I>But the district court apparently overlooked the further guidance in <I>Shenker</I> that &ldquo;[w]here
the rights attendant to stock ownership are adversely affected,&rdquo; including specifically when &ldquo;a shareholder&rsquo;s
right to vote&rdquo; is impaired, &ldquo;the business judgment rule does not apply.&rdquo; <I>Shenker</I>, 983 A.2d at 424. Reconciling
these two statements, the Maryland Court of Appeals views director actions regarding stockholder voting rights as not being decisions
regarding a corporation&rsquo;s management that are afforded protection of the business judgment rule.</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 district court also ignored the well-reasoned
decision of the Maryland circuit court in <I>Shaker</I>. In that case, the Maryland circuit court was faced with virtually the
identical issue presented here: the use of advance notice bylaws to prevent nominees from standing for election against incumbent
directors. <I>Id.</I> at *1-5. The <I>Shaker </I>court rejected the position that under Maryland law such conduct is reviewed under
the business judgment rule. Instead, the court followed Delaware cases holding that the business judgment rule was inapplicable
and applying heightened scrutiny to the board&rsquo;s disenfranchisement of stockholders. <I>Shaker</I>, 2005 WL 914385 at *3-5.
Rejecting the notion embraced by the district court here, the Maryland court in <I>Shaker</I> remarked: &ldquo;This Court believes
that Maryland law provides the same protection to shareholder voting rights that obtains in Delaware, in similar factual contexts,
such as the present one involving a proxy fight over control of the board.&rdquo; <I>Id</I>. at *4.</P>

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


<!-- Field: Page; Sequence: 43; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">In addition, the Maryland court in <I>Shaker</I>
found that the board&rsquo;s conduct raised &ldquo;a fundamental issue of corporate governance.&rdquo; <I>Id. </I>at *5. It also
cited Delaware authority that &ldquo;matters involving the integrity of the shareholder voting process involve considerations not
present in any other context in which directors exercise delegated power&rdquo; and that such matters involve the question &ldquo;who,
as between the principal and the agent, has authority with respect to a matter of internal corporate governance.&rdquo; <I>Id.
</I>at *5-6<I> </I>(citing <I>Blasius Indus., Inc., </I>564 A.2d at 659-60). Like the Maryland Court of Appeals in <I>Shenker</I>,
the circuit court in <I>Shaker</I> concluded that stockholder voting rights are not matters of corporate management afforded protection
of the business judgment rule.</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 United States District Court for the District
of Maryland in <I>Daniels v. New Germany Fund,</I> <I>Inc.</I>, No. MJG-05-1890, 2006 WL 4523622 (D. Md. Mar. 29, 2006), reached
the same conclusion. Adopting the reasoning of <I>Shaker</I>, the court held, applying Maryland law, that &ldquo;actions designed
primarily to interfere with stockholder voting rights are not afforded protection of the Business Judgment Rule and there is no
presumption of validity.&rdquo; <I>Id.</I> at *4.</P>

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


<!-- Field: Page; Sequence: 44; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Similarly, in <I>Mountain Manor</I>, the Court
of Special Appeals of Maryland expressly held that director actions with &ldquo;the effect of consolidating or perpetuating management
control&rdquo; must be reviewed under a &ldquo;balancing test&rdquo; to decide whether the actions had a &ldquo;legitimate business
purpose&rdquo; or whether &ldquo;the primary object was merely to manipulate control.&rdquo; 461 A.2d at 53 (citing <I>Cummings
v. United Artists Theatre Circuit, Inc.</I>, 204 A.2d 795 (Md. 1964)). As a federal court applying <I>Mountain</I> <I>Manor</I>
has explained, if the &ldquo;primary purpose&rdquo; of the directors&rsquo; action is to &ldquo;entrench [ ] management, in contravention
of the principals of corporate democracy,&rdquo; then the court must invalidate the action. <I>NCR Corp.</I>, 761 F. Supp. at 496
(adopting and applying <I>Mountain Manor</I>&rsquo;s balancing test under Maryland law).</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">Here, there is no doubt that the primary purpose
of the incumbent directors&rsquo; decision to disqualify all five of the candidates who would run against them was to entrench
themselves &ldquo;in contravention of the principals of corporate democracy.&rdquo; <I>NCR Corp.</I>, 761 F. Supp. at 496. The
district court itself observed that the Ashford Prime board had taken actions to &ldquo;[f]urther entrench[] itself.&rdquo; (ROA.16-10671.4146;
ROA.16-10672.4643) Indeed, the record is replete with evidence that the incumbent directors engaged in a long pattern of conduct
to frustrate the stockholder franchise, including their adoption of the Proxy Penalty and the Proxy Put, their attempted issuance
of the Penny Preferred, wielding the Proxy Penalty against the Sessa Candidates in the proxy contest, and culminating in the admitted
strategy of &ldquo;declaring the [Sessa] nominees invalid.&rdquo; (<I>Supra</I>, pp. 11-17;<I> </I>ROA.16-10672.2036.) Unlike in
<I>Mountain Manor </I>(where the action at issue was the sale of stock) or <I>NCR Corp. </I>(where the action at issue was the
adoption of an employee stock ownership plan), the disqualification of the Sessa Candidates had no legitimate business purpose
and was undertaken for the sole purpose of preventing the stockholders from electing directors other than the incumbents.</P>

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


<!-- Field: Page; Sequence: 45; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 incumbent directors cannot argue that their
decision to disqualify the Sessa Candidates serves the purpose of enforcing the advance notice provisions. The purpose of advance
notice provisions&mdash;ensuring that stockholders have a reasonable opportunity to thoughtfully consider nominations&mdash;was
clearly met here. Sessa provided the incumbent directors with approximately 430 pages of information and incorporated more by reference
to its publicly-available securities filings. (ROA.16-16072.3534-824) Sessa also promptly furnished additional information in response
to follow-up requests from the incumbent directors. (ROA.16-10672.2546-52) Even if Sessa&rsquo;s January 14, 2016 notification
and subsequent information was somehow deficient, Sessa filed its preliminary proxy statement on February 12, 2016, 120 days in
advance of the June 10 annual meeting, and that filing contained all the information required by the proxy rules. Ashford Prime&rsquo;s
stockholders were fully informed of all information about the Sessa Candidates that they needed to make a fully informed election
decision.</P>

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


<!-- Field: Page; Sequence: 46; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">In addition, in accordance with the proxy rules
(which are specifically incorporated by the advance notice provisions of the bylaws), Sessa fully disclosed its plans, proposals
and views regarding the Company and its incumbent management to Ashford Prime stockholders through its publicly-available SEC filings.
<I>See, e.g.</I>, <I>supra </I>n.13. Moreover, based on the Sessa Candidates&rsquo; nomination materials, the incumbent directors
repeatedly warned the stockholders that Sessa had secret, undisclosed plans &ldquo;to invalidate the Termination Fee in court and
with respect to a potential sale of the company.&rdquo; (ROA.16-10672.2053) In short, the stockholders had all the information
they needed to &ldquo;thoughtfully consider&rdquo; the Sessa Candidates and to decide whether to vote for them or the incumbent
directors. <I>Hubbard</I>,<I> </I>1991 WL 3151, at *13. This is all the clearer based on the election results at the annual meeting,
where the stockholders overwhelmingly voted to &ldquo;withhold&rdquo; proxies for the incumbent directors.</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 sum, there is a clear line of cases decided
under Maryland law that director decisions adversely impacting stockholder voting rights are subject to heightened scrutiny and
are not shielded by the business judgment rule. These cases are consistent with and refer to Delaware law, which Maryland courts
find &ldquo;highly persuasive&rdquo; on matters of corporate law. <I>Kramer</I>, 968 A.2d at 134. But even if there were not such
strong authority, the district court should have followed the well-reasoned approach of the Nevada district court in <I>Hilton
Hotels Corp. v. ITT Corp.</I> which concerned similar questions to the ones posed to the district court in this case. 978 F. Supp.
1342 (D. Nev. 1997).</P>

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


<!-- Field: Page; Sequence: 47; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->32<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 <I>Hilton </I>court started its analysis
by recognizing that, &ldquo;Nevada case law is virtually silent&rdquo; on actions taken by the &ldquo;incumbent board of a corporation
to entrench itself by effectively removing the right of a corporation&rsquo;s shareholder to vote[.]&rdquo; <I>Id. </I>at 1345-46.
The court then noted that Nevada&rsquo;s corporate law statutes permitted directors to take defensive measures to resist hostile
takeovers, but did not affirmatively allow directors to disenfranchise shareholders in a proxy contest. <I>Id</I>. at 1346. To
answer whether Nevada courts would apply the business judgment rule to actions that disenfranchised stockholders, the <I>Hilton
</I>court, just as Maryland courts would do, looked to Delaware case law. <I>Id</I>. The court recognized that the Delaware authorities
have &ldquo;drawn a distinction between the exercise of two types of corporate power: 1)&nbsp;power over the assets of the corporation
and 2) the power relationship between the board (management) and the shareholders.&rdquo; <I>Id</I>. It observed that &ldquo;the
entire scheme of corporate governance,&rdquo; is based on the board having &ldquo;power over the management and assets of a corporation,&rdquo;
with that power being &ldquo;limited by the right of shareholders to vote for the members of the board.&rdquo; <I>Id.</I> at 1347.
Based on this analysis, the <I>Hilton </I>court concluded that the Nevada Supreme Court would follow Delaware&rsquo;s lead in rejecting
the business judgment rule where the incumbent directors &ldquo;impermissibly infring[ed] on shareholders&rsquo; right to vote
on members of the board of directors.&rdquo; <I>Id</I>. at 1346. The district court in this case should have followed a similar
analysis, given that Maryland courts routinely turn to Delaware case law when there is a lack of Maryland authority on point. <I>See,
e.g.</I>,<I> Kramer</I>, 968 A.2d at 133-34 (Md. 2009); <I>Shenker</I>, 983 A.2d at 427 (recognizing &ldquo;Delaware&rsquo;s acknowledged
leadership in developing a coherent body of corporate law to which [Maryland] and many other states ordinarily look for guidance&rdquo;);
<I>Poling v. CapLease, Inc.</I>, No. 0700 Sept. Term 2015, 2016 WL 1749803, at *3 (Md. Ct. Spec. App. May 3, 2016).</P>

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


<!-- Field: Page; Sequence: 48; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->33<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
<TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext">C.</FONT></TD><TD><FONT STYLE="color: windowtext">The
                                         Board Impermissibly Used the Bylaws to Discriminate Against the Sessa Candidates </FONT></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">It is well-established that advance notice provisions
cannot be used to discriminate against director nominees or to entrench incumbent directors. 8 William Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher
Cyclopedia of the Law of Corporations</FONT> &sect; 4191. Courts do not hesitate to &ldquo;invalidate board action constituting
an inequitable manipulation of the corporate machinery that affected adversely the shareholders&rsquo; right to conduct a contested
election of directors.&rdquo; <I>Hubbard</I>,<I> </I>1991 WL 3151, at *7 (collecting cases). &ldquo;[W]hen advance notice bylaws
unduly restrict the stockholder franchise or are applied inequitably, they will be struck down.&rdquo; <I>Openwave Sys.</I>, 924
A.2d at 239. Maryland courts agree: directors &ldquo;breach[] their fiduciary duties to the shareholders by enforcing unreasonable
or discriminatory by-law provisions against&rdquo; stockholder nominees. <I>Shaker</I>, 2005 WL 914385, at *4.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>14</SUP> Moreover, advance notice provisions are to be narrowly
construed against the Company and in favor of the stockholder franchise. <I>JANA Master Fund</I>,<I> </I>954 A.2d at 344<I>.</I></P>

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


<!-- Field: Page; Sequence: 49; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->34<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 Company demanded that the Sessa Candidates
complete a far more onerous questionnaire than the incumbent directors were required to complete. That questionnaire impermissibly
went beyond the mandate of the bylaws to elicit the information required by the proxy rules set forth in Regulation 14A. And the
Company then purported to disqualify the Sessa Candidates on the basis of alleged omissions and inaccuracies that are immaterial
and were viewed as being of no consequence when committed by the incumbent directors. For example, while the incumbent directors
complained that Mr. Livingston did not immediately disclose his purchase of a small amount of Ashford Prime stock, Ms. Carter herself
failed to disclose her own ownership of Company stock on two separate questionnaires in 2014 and 2015 (ROA.16-10672.2381-85; ROA.16-10672.3258-62)
and incorrectly reported that she owned 3,200 shares of Company stock later in 2015 (ROA. 16-10672.3283)&nbsp;when in fact she
actually owned 6,400 shares of Company stock.&nbsp; (ROA.16-10672.3371)&nbsp; Similarly, Ashford Prime&rsquo;s Chief Operating
Officer and General Counsel, David Brooks held himself out as a &ldquo;CPA&rdquo; after his license had expired, just as Mr. Livingston
did.&nbsp; (ROA.16-10672.2889; ROA.16-10672.3025)&nbsp;If anything, the fact that the incumbent directors leveled these trivial
arguments against Mr. Livingston proves that the incumbent directors were acting in bad faith as part of a &ldquo;strategy of declaring
[the Sessa] nominees invalid.&rdquo; (ROA.16-10672.2036)</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">Although this critical issue was briefed below,
it was not addressed in the district court&rsquo;s order.</P>

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





<!-- Field: Page; Sequence: 50; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->35<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>D.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         District Court Misconstrued the Maryland Statutes</B></FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">1.</TD><TD STYLE="text-align: justify">Section 2-405.1(f) of the Maryland Corporations and Associations
Code Does Not Support the District Court&rsquo;s Decision</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 business judgment rule is codified in Maryland
in Corporations and Associations Code &sect; 2-405.1 and applies to &ldquo;directors when acting in their managerial capacities.&rdquo;
<I>Shenker</I>, 983 A.2d at 421. The district court&rsquo;s decision erroneously relied on &sect; 2-405.1(f) which provides that
&ldquo;[a]n act of a director relating to or affecting an acquisition or a potential acquisition of control&rdquo; of a corporation
may not be subject to a higher duty or greater scrutiny than is applied to any other act of a director.&rdquo; (ROA.16-10671.4148-49;
ROA.16-10672.4645-46 (citing <FONT STYLE="font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1(f)).)
However, &sect; 2-405.1(f) is irrelevant to the current matter because nominating and voting for directors is not related to &ldquo;an
acquisition or potential acquisition of control.&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 Maryland Court of Appeals noted in <I>Shenker</I>
that &sect; 2-405.1(f) was enacted in 1999 to reject &ldquo;in Maryland the &lsquo;heightened scrutiny&rsquo; imposed on directors
of Delaware corporations in hostile takeover situations.&rdquo; <I>Shenker</I>, 983 A.2d at 427. The Maryland Court of Appeals
elaborated that &sect; 2-405.1(f) was meant to address the standard of care for directors in responding or not responding to &ldquo;unsolicited
takeover bids,&rdquo; and that a director&rsquo;s &ldquo;failure to act solely because of the amount of consideration offered to
stockholders would not expose that director to liability.&rdquo; <I>Id. </I>Thus, when &sect; 2-405.1(f) refers to an &ldquo;acquisition
or a potential acquisition of control,&rdquo; it refers to a third party making a hostile offer to stockholders to purchase the
corporation. This case has nothing to do with a hostile takeover or any other &ldquo;acquisition.&rdquo;<SUP>15</SUP></P>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>15</SUP> Indeed, the Maryland legislature in the Maryland Financial
Institutions Code defines &ldquo;acquire&rdquo; to mean to &ldquo;obtain legal or beneficial ownership of shares, or voting rights
of shares, whether directly or indirectly, though an intermediary or otherwise.&rdquo; <FONT STYLE="font-variant: small-caps">Md.
Code Ann., Fin. Inst.</FONT>, &sect; 9-216(a)(2). Sessa&rsquo;s nomination of the Sessa Candidates is not an attempt to &ldquo;acquire&rdquo;
legal or beneficial ownership of shares or voting rights of shares. Rather, it is the exercise of voting rights attendant to the
shares of stock it already owns.</P>

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


<!-- Field: Page; Sequence: 51; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->36<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Sessa merely seeks a fair and free director
election in which the stockholders have a meaningful choice of candidates. That is not the &ldquo;acquisition of control&rdquo;
as contemplated by &sect; 2-405.1(f).<SUP>16</SUP> Therefore, &sect; 2-405.1(f) is not applicable to this case.</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">Moreover, no Maryland court has ever applied
&sect; 2-405.1(f) to actions of directors that frustrate stockholder voting rights. Given the absence of any authority for application
of &sect; 2-405.1(f) and the substantial line of authority to the contrary, the district court below should have followed the Maryland
Court of Appeals&rsquo; admonitions in <I>Shenker</I>, as well as the <I>Shaker</I>, <I>New Germany</I>, <I>Mountain Manor</I>,
and <I>NCR Corp. </I>decisions, that under Maryland law the business judgment rule does not apply to such actions.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>16</SUP> The district court perhaps labored under the
misapprehension that Sessa sought to acquire control because the Sessa Candidates, if they were all elected, would comprise five
of the seven members of the board of directors. However, even this reasoning does not withstand scrutiny. Only one of the five
Sessa Candidates is employed by Sessa. (ROA.16-16072.3535, ROA.16-16072.3537-38) The other four have no financial connection to
Sessa and would be entirely independent. (ROA.16-16072.3535-37) In fact, all four of the other Sessa Candidates testified or provided
sworn declarations affirming their independence, and they all submitted certifications to the Company as part of the nomination
materials affirming that they had not made &ldquo;any agreement, arrangement or understanding with, or any commitment or assurance
to, any person as to how [they], if elected as a director of the Company, will act or vote on any issue or question.&rdquo; (ROA.16-10672.3582;
ROA.16-10672.3644; ROA.16-10672.3689; ROA.16-10672.3748; 3806) Thus, even if all of the Sessa Candidates were elected to the board,
Sessa would in no sense acquire &ldquo;control&rdquo; of the board or the Company.</P>

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


<!-- Field: Page; Sequence: 52; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->37<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 1in"></TD><TD STYLE="width: 0.5in; text-align: left">2.</TD><TD STYLE="text-align: justify">The Recent Amendment to Section 2-405.1 of the Maryland
Corporations and Associations Code Does Not Change the Analysis</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 district court also noted that the Maryland
legislature recently amended &sect;&nbsp;2-405.1 of the Maryland General Corporation Law to provide that &ldquo;&lsquo;[This section
is] the sole source of duties of a director to the corporation or the stockholders of the corporation.&rsquo;&rdquo; (ROA.16-10671.4149;
ROA.16-10672.4646 (citing 2016 Md. Laws Ch. 170 (&ldquo;SB 148&rdquo;) &sect; 2-405.1(i)(1))) The district court acknowledged that
this amendment does not take effect until October 1, 2016, and therefore the court could not have relied upon the amendment to
reach its decision. <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">Even if SB 148 applied retroactively, it does
not address the principle expressed by Maryland courts in <I>Shenker</I> and <I>Shaker</I> that actions taken by directors that
adversely affect stockholder voting rights are not matters of corporate management and are not shielded by the business judgment
rule. SB 148 contains no references to elections or stockholder voting. Therefore, under Maryland principles of statutory interpretation,
it cannot be presumed to address those matters. <I>See Shenker</I>, 983 A.2d at 421 (it is a &ldquo;well-established principle
that statutes are not presumed to make alterations in the common law other than as may be declared expressly&rdquo;).</P>

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


<!-- Field: Page; Sequence: 53; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->38<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">On the contrary, SB 148 amends &sect; 2-405.1
in response to the holding in <I>Shenker</I> that &sect; 2-405.1(f) applies only to hostile takeovers and that director actions
regarding voluntary sales of the corporation do not get the protection of the business judgment rule. <I>See Shenker</I>, 983 A.2d
at 421-422, 427. To overturn this higher duty imposed on directors in a friendly cash merger transaction<I>,</I> subsection (i)
was added to provide that &sect; 2-405.1 &ldquo;[i]s the sole source of duties of a director to the corporation or the stockholders
of the corporation, whether or not a decision has been made to enter into an acquisition or a potential acquisition of control
of the corporation or enter into any other transaction involving the corporation.&rdquo; 2016 Md. Laws Ch. 170 &sect; 2-405.1(i)(1).
Additionally, another subsection was amended to provide that a director cannot be subject to a higher standard of care solely because
of &ldquo;the amount or type of consideration that may be offered or paid to stockholders of the corporation in an acquisition
or a potential acquisition of control of the corporation.&rdquo; 2016 Md. Laws Ch. 170 &sect; 2-405.1(f)(5)(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">The language and history of the 1999 amendment
adding &sect; 2-405.1(f) (explained in <I>Shenker</I>, 983 A.2d at 426-27) and the 2016 amendments to &sect; 2-405.1 in SB 148
demonstrate that the Maryland legislature expressly focused on insulating directors from heightened scrutiny when responding to
a hostile takeover, or engaging in an extraordinary, but voluntary, transaction like a merger or sale. A director election is not
a &ldquo;transaction&rdquo; much less a hostile takeover or potential merger or sale.</P>

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


<!-- Field: Page; Sequence: 54; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->39<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">For more than 150 years, Maryland has recognized
that it is the right of the stockholders, and not the board, to choose who will run their corporation. <I>See Mottu v. Primrose</I>,<I>
</I>23 Md. 482, 500 (1865) (striking down incumbent board&rsquo;s attempt to extend its term of office because it would &ldquo;overturn
the principles upon which, alone, the corporation can be safely carried on, by depriving the stockholders of the right secured
to them by law of controlling the management of the company&rdquo;). Nothing in the amendments to &sect; 2-405.1 establishes a
new standard for boards of directors making decisions about stockholders voting for directors. Rather, the recent amendments only
clarify a change of the standard to be used in the context of significant corporate transactions. Accordingly, even if effective,
the 2016 amendment to &sect; 2-405.1 has no bearing on this case.</P>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext">II.</FONT></TD><TD><FONT STYLE="color: windowtext"><B>Even
                                         if the Business Judgment Rule Applies to Actions Regarding Corporate Democracy, the District
                                         Court Erred by Ignoring Overwhelming Evidence That the Directors Acted in Bad Faith,
                                         Were Conflicted, and Applied the Bylaws in a Discriminatory Manner </B></FONT></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 business judgment rule merely creates &ldquo;a
presumption that in making a business decision the directors of a corporation acted on an informed basis, in good faith, and in
the honest belief that the action taken was in the best interests of the company.&rdquo; <I>Boland</I>,<I> </I>31 A.3d at 548 (quoting
<I>Aronson</I>, 473 A.2d at 812); <FONT STYLE="font-variant: small-caps">Md</FONT>. <FONT STYLE="font-variant: small-caps">Code
Ann., Corps. &amp; Ass&rsquo;ns</FONT> &sect; 2-405.1(e). That presumption can be overcome by showing that the directors (1) &ldquo;did
not act in good faith&rdquo;; (2) &ldquo;stood to receive some personal benefit from the transaction&rdquo; akin to self-dealing;
or (3) that the challenged action was &ldquo;not within the realm of sound business judgment.&rdquo; <I>Boland</I>, 31 A.3d at
548-49 (citation omitted); Hanks, <FONT STYLE="font-variant: small-caps">Maryland Corporation Law</FONT> &sect; 6.8. &ldquo;Any
decision undertaken on the basis of insufficient knowledge is inherently unreasonable&rdquo; and thus is not protected by the business
judgment rule, <I>NCR Corp</I>., 761 F. Supp. at 491.</P>

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


<!-- Field: Page; Sequence: 55; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->40<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>A.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Acted in Bad Faith by Applying the Bylaws in a Discriminatory Fashion</B></FONT></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 this case, the incumbent directors applied
the bylaws in a discriminatory manner and in bad faith to disqualify the Sessa Candidates. It is well-established that advance
notice provisions cannot be used to discriminate against director nominees or to entrench incumbent directors. <I>Shaker</I>, 2005
WL 914385 at *4; <I>Hubbard</I>,<I> </I>1991 WL 3151, at *7; <I>Openwave Sys.</I>, 924 A.2d at 239.<SUP>17</SUP> As discussed above,
the incumbent directors deliberately and in bad faith used the advance notice provisions as a weapon against the Sessa Candidates
by having the Company&rsquo;s outside lawyers cook up a rigged questionnaire especially for the Sessa Candidates and then disqualifying
every Sessa Candidate for immaterial omissions and inaccuracies that were swept aside when committed by the incumbent directors.
(<I>Supra</I>, pp. 35-36) Moreover, in retaliation for Sessa pursuing the proxy contest, the Company made existential threats to
Sessa<SUP>18</SUP> and Mr. Bennett&rsquo;s long-time associate and college classmate posted to Ashfordfacts.com a video portraying
Mr. Petry as Adolf Hitler.<SUP> 19</SUP> (ROA.16-10671.1567-68)</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>17</SUP> Moreover, advance notice provisions are to be narrowly
construed against the Company and in favor of the stockholder franchise. <I>JANA Master Fund</I>,<I> </I>954 A.2d at 344<I>.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>18</SUP> <I>Supra</I>, n. 7.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>19</SUP> After Sessa sought discovery from Ashford Prime concerning
the Ashfordfacts.com website, the website became unavailable. The video may still be viewed at <U>https://www.youtube.com/watch?v=CMIHHVJtsH0.</U></P>

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


<!-- Field: Page; Sequence: 56; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->41<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">These actions were done in bad faith as the
incumbent directors prioritized their own entrenchment as directors over the stockholders&rsquo; right to free and fair elections.</P>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>B.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Are Interested in the Outcome of the Election</B></FONT></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">Maryland decisions have embraced the well-accepted
principle that directors are not protected by the business judgment rule when they have a personal interest in the decision. <I>Werbowsky</I>,
766 A.2d at 138; Hanks, <FONT STYLE="font-variant: small-caps">Maryland Corporation Law</FONT> &sect; 6.8. Incumbent directors
&ldquo;whom are seeking reelection . . . are obviously interested in the outcome of the election.&rdquo; <I>Aprahamian</I>, 531
A.2d at 1206.<SUP>20</SUP> A candidate for office &ldquo;is likely to prefer to be elected rather than defeated&rdquo; and &ldquo;therefore
has a personal interest in the outcome of the election even if the interest is not financial and he seeks to serve from the best
of motives.&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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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"><SUP>20</SUP> Maryland&rsquo;s highest court has found that Delaware&rsquo;s
&ldquo;&lsquo;independence&rsquo; inquiry . . . persuasive&rdquo; when &ldquo;crafting&rdquo; Maryland&rsquo;s standards for independence.
<I>Boland</I>, 31 A.3d at 564.</P>

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


<!-- Field: Page; Sequence: 57; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->42<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">Here, all seven of the incumbent directors sought
re-election and were thus inherently interested in the outcome of a decision to disqualify their opponents in the election. <I>See
id</I>. The incumbent directors also have a profound financial interest in the outcome of the election. Ashford Prime&rsquo;s directors
are well compensated, receiving between $149,800 and $193,880 per year in cash and stock awards. (ROA.16-10672-2072) Ms. Carter,
the Chair of the Nominating and Governance Committee, receives the lion&rsquo;s share of her annual income from the compensation
she receives as a member of the board. Ms. Carter&rsquo;s annual income in 2015 was less than $300,000 and perhaps even less than
$200,000, while her compensation as a director of Ashford Prime was $167,380. (ROA.16-10672.2184; ROA.16-10672.2072) Mr. Murphy
depends on his position as director for roughly 30% of his annual income and for certain months his director pay constitutes 100%
of his income. (ROA.16-10672.2164) The incumbent directors are not shielded by the business judgment rule for actions taken to
affect the electoral process in which they are candidates running for re-election. Again, the district court failed to address
this critical issue even though it was briefed below.</P>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>C.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         Incumbent Directors Failed to Act on an Informed Basis </B></FONT></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">At the May 11, 2016 hearing before the district
court, Ashford Prime&rsquo;s counsel stated that the board voted to disqualify the Sessa Candidates &ldquo;at meetings in early
April&rdquo; before &ldquo;April 12th.&rdquo; (ROA.16-10671.4213-14; ROA.16-10672.4693-94) At that time, the incumbent directors
had none of the evidence cited by the district court as supporting the directors&rsquo; decision.<SUP>21</SUP> That leads to the
inescapable conclusion that the board predetermined to disqualify the Sessa Candidates without any of the information cited by
the district court.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>21</SUP> Sessa did not produce any of the evidence cited
by the district court until April 20, 2016.</P>

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


<!-- Field: Page; Sequence: 58; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->43<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 record further shows that the incumbent
directors disqualified the Sessa Candidates without having sufficient information to do so. For example, Mr. McWilliams and Mr.
Murphy testified that they have not even looked at any of the questionnaires submitted by the Sessa Candidates.&nbsp; (ROA.16-10672.2529;
ROA.16-10672.2162) The incumbent directors could not meet their obligation to make informed decisions when failing to review ANY
of the questionnaires submitted to them. Their conduct shows they had predetermined to prevent the Sessa Candidates from participating
in the election no matter what.</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 record also calls into question whether
the board ever voted to disqualify the Sessa Candidates on the basis that they failed to comply with the advance notice provisions
of the bylaws. Mr. Murphy testified in his April 27th deposition that the board had previously agreed upon a process pursuant to
which the Nominating and Governance Committee (Ms. Carter and Mr. Strong) would make a recommendation and the outside directors
would then vote, but that the Nominating and Governance Committee never made any formal recommendation. (ROA.16-10672.2174-75)
He further testified that the board had decided that Ashford Prime would not count any stockholder votes for the Sessa Candidates
at the annual stockholders meeting for the sole reason that the Nomination and Governance Committee had not provided any recommendation.
(ROA.16-10672.2173) This is inconsistent with disqualifying the Sessa Candidates because of a conclusion&mdash;whether in good
or bad faith&mdash;that they did not comply with the advance notice provisions of the bylaws.</P>

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


<!-- Field: Page; Sequence: 59; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->44<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 record further undermines the assertion
by Ashford Prime&rsquo;s counsel at the May 11 hearing that the board voted to disqualify the Sessa Candidates. Mr. McWilliams
agreed with Mr. Murphy that the Nominating and Governance Committee&rsquo;s findings had not been presented to the board. (ROA.16-10671.3559)
But in contrast to Mr. Murphy and Ashford Prime&rsquo;s counsel, as of the date of his deposition on April 28th, Mr. McWilliams
did not think that the board had voted to disqualify the Sessa Candidates. (<I>Id</I>.) Mr. McWilliams is the lead director of
Ashford Prime. (ROA.16-10671.3536) The preparation of the rigged director questionnaires by the Company&rsquo;s outside attorneys
and Mr. McWilliams&rsquo;s inability to recall a recommendation of the Nominating and Governance Committee or a board decision
to disqualify the Sessa Candidates suggest that Ashford Prime&rsquo;s management and outside attorneys ran the process to disqualify
the Sessa Candidates without the involvement or informed approval of the board.</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">To this day, Ashford Prime has not produced
any minutes or documentation supporting any of the differing explanations provided by the incumbent directors of why they disqualified
the Sessa Candidates, if they even made that decision at all.<SUP>22</SUP></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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>22</SUP> After three motions to compel by Sessa, Ashford
Prime produced only five sets of board minutes, two of which reflect meetings in May and June of 2015, which were months before
Sessa nominated the Sessa Candidates. None of the other minutes reflect any deliberation or decision by the board or a board committee
concerning the Sessa Candidates&rsquo; compliance with the advance notice provisions, or the disqualification of the Sessa Candidates.&nbsp;
(ROA.16-10671.3415-16; ROA.16-10672.3029-30; ROA.16-10672.3037-38)</P>

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


<!-- Field: Page; Sequence: 60; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->45<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>III.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>Even
                                         if the Business Judgment Rule Applies to Actions Impacting Stockholder Voting Rights,
                                         the District Court Erred by Failing to Apply the Correct Legal Definition of &ldquo;Plans&rdquo;
                                         </B></FONT></TD></TR></TABLE>

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: windowtext"><B>A.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         District Court Failed to Apply the Correct Definition of &ldquo;Plans&rdquo;</B></FONT></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 determining that the Company was likely to
succeed on the merits under the business judgment rule, the district court found that &ldquo;the board could rationally believe
the Sessa Candidates had a plan they refused to disclose in their questionnaires and thus were ineligible&rdquo; based on &ldquo;evidence
supporting the board&rsquo;s contention that Sessa has plans for Ashford Prime after it assumes control of the board.&rdquo; (ROA.16-10671.4153-54;
ROA.16-10672.4650-51) In reaching that decision, the district court correctly observed that the bylaws merely required that the
Sessa Candidates disclose the information that is required to be disclosed &ldquo;in connection with the solicitation of proxies&rdquo;
under the Exchange Act. (ROA.16-10671.4152; ROA.16-10672.4649) However, the district court erroneously went beyond the proxy rules
when it found that the Sessa Candidates must &ldquo;&lsquo;describe any plans or proposals&rsquo; that would result in a sale or
transfer of material assets.&rdquo; (<I>Id.</I> (citing Schedule 13D, 17 C.F.R. &sect; 240.13d-101, which is not part of the proxy
rules).) It is well-established that advance notice bylaws are to be narrowly construed so as not to interfere with stockholder
voting rights. <I>JANA Master Fund, </I>954 A.2d at 344.</P>

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


<!-- Field: Page; Sequence: 61; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->46<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">Even if one accepts the district court&rsquo;s
expansion of the bylaws to include Schedule 13D, the documents cited by the district court provide no factual basis for the board
to find that the Sessa nominees had undisclosed &ldquo;plans&rdquo; as that term is interpreted under the statute and rules adopting
Schedule 13D. In the context of Sessa&rsquo;s proxy contest, these rules require nominees only to &ldquo;&lsquo;describe any plans
or proposals&rsquo; that would result in a sale or transfer of material assets.&rdquo; (ROA.16-10671.4152; ROA.16-10672.4649 (citing
17 C.F.R. &sect; 240.13d-101).) There is no requirement to make &ldquo;predictions of future behavior,&rdquo; <I>Mo. Portland Cement
Co. v. Cargill, Inc.</I>, 498 F.2d 851, 872 (2d Cir. 1974), or to disclose tentative or &ldquo;inchoate&rdquo; plans. <I>Merrit
v. Libby, McNeil &amp; Libby</I>, 510 F. Supp. 366, 372 (S.D.N.Y. 1981). Indeed, this Court has cautioned that disclosure of tentative
plans can be misleading. <I>Susquehanna Corp. v. Pan Am. Sulphur Co.</I>, 423 F.2d 1075, 1084-85 (5th Cir. 1970) (&ldquo;It would
have been misleading to the stockholders and to the public investor for [a] Schedule 13D . . . to indicate that there was a plan
or proposal&rdquo; for a merger where the &ldquo;idea for such a merger never got off the ground&rdquo;).</P>

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


<!-- Field: Page; Sequence: 62; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->47<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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">All of the evidence relied upon by the district
court reflects merely tentative ideas and discussions. For example, the district court relied on two emails from junior Sessa analysts
sent five months before Sessa decided to nominate a slate of directors. Those emails merely suggested that Sessa should develop
a general &ldquo;gameplan&rdquo; and plans to handle certain issues such as the Proxy Penalty. (ROA.16-10671.4153; ROA.16-10672.4650,
citing Exs. O &amp; P, ROA.16-10672.4552-58) Likewise, notes from a December 18, 2015 phone call between Mr. Petry and some of
the Sessa Candidates showed that Mr. Petry had not made any definitive plans because he &ldquo;[didn&rsquo;t] know what [the environment]
looks like in 6 months&rdquo; when the election would take place. (ROA.16-10672.4540) Mr. Petry observed in one conversation that
&ldquo;in today&rsquo;s environment&rdquo; maximizing value would include &ldquo;a real and fair sale process.&rdquo; (<I>Id.</I>)
But these comments were made in the context of a discussion of a strategic review that the Company&rsquo;s board was already conducting.
Sessa publicly announced its views on the strategic review in a January 8, 2016, Schedule 13D: &ldquo;given the corporate governance
and other issues . . . we now believe that a sale of the Company is the preferred outcome of the strategic alternatives process.&rdquo;
(ROA.16-10671.160) Sessa&rsquo;s belief did not constitute a definitive plan to sell the Company if the Sessa Candidates were elected,
and in any event its views on the subject were fully disclosed to the Company and to stockholders.</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 district court&rsquo;s findings also defy
logic. The foregoing documents were not produced by Sessa until April 20, 2016. Yet the Company&rsquo;s counsel represented at
the May 11 hearing that the incumbent directors made the decision to disqualify the Sessa Candidates prior to April 12, 2016. (ROA.16-10671.4213-14;
ROA.16-10672.4692-93) The incumbent directors therefore could not have based their decision to disqualify the Sessa Candidates
on the basis of these documents.</P>

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





<!-- Field: Page; Sequence: 63; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->48<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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




<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>B.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>Under
                                         the District Court&rsquo;s Reasoning, There Was No Basis for Disqualification of Four
                                         of the Five Sessa Candidates</B></FONT></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 Sessa argued below, even if the district
court had applied the correct legal definition of &ldquo;plans,&rdquo; and even if it was right that the directors had sufficient
evidence to rationally believe that <I>Sessa and the one Sessa officer (Mr. Petry)</I> had undisclosed plans for the Company,&nbsp;there
is no basis to conclude that the four candidates not associated with Sessa (Cunningham, Silvers, Livingston, and Wheeler) had any
undisclosed plans. &nbsp;(ROA.16-10671.4194; ROA.16-10672.4673; ROA.16-10672.2010-11) Mr. Livingston testified that he did not
have any predetermined plans and that he would &ldquo;need to gather information, be a good board member, [and] hear the different
expert inputs&rdquo; before he could &ldquo;weigh in.&rdquo; (ROA.16-10671.3749) Mr. Wheeler testified that his discussions with
Mr. Petry were at a &ldquo;broad high level&rdquo; as he &ldquo;wanted to know what he [Mr. Petry] was up to and why.&rdquo; (ROA.16-10672.3498)
Mr. Wheeler further testified that &ldquo;there weren&rsquo;t any specific plans or strategies.&rdquo; (<I>Id.</I>) Messrs. Cunningham
and Silvers, who were not deposed, provided sworn declarations that they had &ldquo;not entered into any agreements or understandings
.. . . to vote in any particular way&rdquo; and that they &ldquo;would vote independently on all matters put to a vote .&nbsp;.
.. based on the circumstances and information available to the Board of Directors at that time.&rdquo; (ROA.16-10672.2025-28) In
addition, each of the four independent Sessa Candidates signed certifications attached to their questionnaires that they had not
made any voting commitment to any person if they were elected as a director of the company. <I>See,</I> <I>e.g.</I>, (ROA.16-10672.3582;
ROA.16-10672.3644; ROA.16-10672.3689; ROA.16-10672.3748; ROA.16-106723806)</P>

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


<!-- Field: Page; Sequence: 64; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->49<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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 evidence relied upon by the district court
exclusively concerned Sessa and Mr. Petry&rsquo;s views regarding the Company. (ROA.16-10671.4152-53; ROA.16-10672.4649-50) The
district court relied on two emails sent by Sessa employees to Mr. Petry in August 2015 (five months before Sessa decided to nominate
its slate of directors) regarding the importance of formulating plans at some point in the future. (<I>Id</I>.) The district court
also cited notes taken during a phone call in December 2015 between Mr. Petry and some of the Sessa Candidates, where Mr. Petry
responded to a question from one of the candidates about his views on the &ldquo;gameplan after election.&rdquo; (<I>Id</I>.) None
of the evidence cited by the district court provides a basis by which the incumbent directors could have rationally believed that
Cunningham, Silvers, Livingston, and Wheeler had any undisclosed plans. The district court thus clearly erred by imputing Sessa&rsquo;s
and Mr. Petry&rsquo;s purported undisclosed plans to Messrs. Wheeler, Livingston, Cunningham, and Silvers without any factual basis
for doing so.</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext"><B>IV.</B></FONT></TD><TD><FONT STYLE="color: windowtext"><B>The
                                         District Court Erred By Not Requiring the Incumbent Directors to Approve the Sessa Candidates
                                         for Purposes of the Proxy Penalty</B></FONT></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&rsquo;s motion for preliminary injunction
sought an order requiring the incumbent directors to approve the Sessa Candidate&rsquo;s for purposes of the Proxy Penalty, which
they had wrongfully refused to do in violation of their fiduciary duties to stockholders. (ROA.16-10671.385) The district court
also erred by refusing to grant Sessa&rsquo;s requested relief. The district court&rsquo;s sole reason for refusing to do so was
that &ldquo;the business judgment rule protects Ashford Prime&rsquo;s board&rsquo;s decision to deny approving the Sessa candidates
for the proxy contest and election.&rdquo; (ROA.16-10671.4154; ROA.16-10672.4651) As already discussed, this was a clear error
of law.</P>

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


<!-- Field: Page; Sequence: 65; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->50<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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 incumbent directors can
avoid any risk of triggering the Proxy Penalty by simply approving two or more of the Sessa Candidates. (ROA.16-10671.3294-95;
<I>see also</I> ROA.16-10671.3523-24; ROA.16-10671.3550) The TAAA requires no conditions, criteria, standards or guidelines for
such approval. (ROA.16-10671.3294-95) The TAAA does not require any evaluation or vetting of the nominees before they can be approved.<SUP>23</SUP>
(<I>Id.</I>) And under applicable law, the incumbent directors may &ldquo;approve&rdquo; the Sessa Candidates for purposes of the
TAAA while still &ldquo;recommending&rdquo; themselves to the stockholders in their proxy materials. <I>San Antonio Fire &amp;
Police Pension Fund v. Amylin Pharm., Inc.</I>, 983 A.2d 304, 314 (Del. Ch.), <I>aff&rsquo;d,</I> 981 A.2d 1173 (Del. 2009) (construing
the term &ldquo;approve&rdquo; in a Proxy Put provision and holding that the company had the power to &ldquo;approve&rdquo; stockholder
nominees while simultaneously running and recommending its own incumbent slate).</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>23</SUP> The operative language of the TAAA reads: &ldquo;[A]ny
individual becoming a director after the Effective Date whose election to the board is approved or recommended to the stockholders
of Ashford Inc. by a vote of at least a majority of the Advisor Incumbent Board shall be considered as though such individual were
a member of the Advisor Incumbent Board.&rdquo; (ROA.16-10671.3295)</P>

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


<!-- Field: Page; Sequence: 66; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->51<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Under the circumstances presented here, it would
unquestionably be a breach of the incumbent directors&rsquo; fiduciary duties to the Company and its stockholders to refuse to
approve the Sessa Candidates and neutralize the Proxy Penalty. If the Sessa Candidates are not approved, the Company will face
what Mr. Bennett describes as &ldquo;a catastrophic event&rdquo; &ndash; a Proxy Penalty that is in the &ldquo;hundreds of millions&rdquo;
of dollars. (ROA.16-10671.3517-18; ROA.16-10671.3424&nbsp;&para; 1) Such a penalty would wipe out roughly half of Ashford Prime&rsquo;s
market capitalization.<SUP>24</SUP></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 situation even less egregious to the one presented
in this case was addressed by the Delaware Court of Chancery in <I>Kallick v. SandRidge Energy, Inc.</I>, 68 A.3d 242 (Del. Ch.
2013). In <I>SandRidge</I>, a hedge fund that held a 7% stake in the company commenced a proxy contest to replace the incumbent
board following years of poor performance. <I>Id.</I> at 244. The company contended that the proposed nominees were &ldquo;less
qualified&rdquo; than the incumbent board and lacked industry experience. <I>Id.</I> More importantly, &ldquo;the incumbent board
warned the stockholders that the election of [the hedge fund&rsquo;s] proposed slate would constitute a &lsquo;Change of Control&rsquo;
for purposes of SandRidge&rsquo;s credit agreements&rdquo; which would trigger a &lsquo;Proxy Put&rsquo; requiring SandRidge to
repurchase its existing debt. <I>Id.</I> With the threat of the Proxy Put hanging over the Company if the stockholders elected
the competing slate, the incumbent board then &ldquo;failed to decide, one way or the other, whether it approved the [hedge fund]
slate for purposes of the Proxy Put.&rdquo; <I>Id.</I> at 246.</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 3pt; margin-bottom: 3pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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 0 6pt"><SUP>24</SUP> The Proxy Penalty would produce an epic windfall
for Ashford Inc., which has a market capitalization of less than $150 million. As Chairman Bennett has admitted, because he &ldquo;own[s]
a lot&rdquo; of Ashford Inc. stock, the Proxy Penalty would &ldquo;enrich [him] immensely.&rdquo; (ROA.16-10671.3433)</P>

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


<!-- Field: Page; Sequence: 67; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->52<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">The Delaware Court of Chancery concluded that
the incumbent directors were violating their fiduciary duties to the corporation and its stockholders and granted injunctive relief.
<I>Id.</I> at 263-64. The court noted the &ldquo;public policy of stringent policing of the fairness of corporate elections&rdquo;
and held that &ldquo;a board deciding whether to approve directors for the purposes of a Proxy Put could not act consistently with
its fiduciary duties by simply failing to approve any director candidates who ran against the incumbent slate.&rdquo; <I>Id.</I>
at 246 (citing <I>Amylin</I>). The court went on to hold that under an intermediate standard of review requiring an incumbent board
to provide a reasonable justification for its actions, an incumbent board may refuse to approve competing candidates for purposes
of such a contractual provision only if the incumbent directors have reasonably determined that the rival candidates lack &ldquo;ethical
integrity&rdquo; or &ldquo;fell within the category of known looters.&rdquo;<SUP>25, 26</SUP> <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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0pt; margin-bottom: 0pt"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>25</SUP> The court also discussed withholding approval if the
rival candidates had &ldquo;specific plans that would endanger the corporation&rsquo;s ability to repay its creditors.&rdquo; <I>SandRidge</I>,
68 A.3d at 246. However, this was premised on the company having a duty of good faith and fair dealing toward its creditors under
Delaware law. <I>Id.</I> The TAAA is expressly governed by Texas law (<I>see </I>ROA.16-10671.3302), and Texas does not recognize
an implied duty of good faith and fair dealing in contracts except in very limited circumstances not applicable here. <I>See Williamson-Dickie
Mfg. Co. v. Apparel Ltd.</I>, No. 4:15-CV-164-A, 2015 U.S. Dist. LEXIS 75227, *5-*7 (N.D. Tex. June 10, 2015) (citations omitted).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><SUP>26</SUP> Because the primary purpose of their actions is to
interfere with the stockholder vote, the higher <I>Blasius </I>standard of review applies, which requires the incumbent directors
to show a compelling justification for their actions. The hypothetical justifications listed by <I>SandRidge </I>would not satisfy
the <I>Blasius </I>standard.</P>

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


<!-- Field: Page; Sequence: 68; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->53<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">Ashford Prime and the incumbent directors cannot
make a showing that the Sessa Candidates lack ethical integrity or are &ldquo;known looters.&rdquo; The Sessa Candidates are remarkably
well-qualified individuals with excellent credentials. As a group, they include graduates of Harvard Business School, the Wharton
School of Business, the Haas School of Business at U.C. Berkeley, a chaired professor of law who specializes in corporate governance,
and former CEOs who have served on the boards of at least 16 public companies. (ROA.16-10671.3444-47)</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 Company has identified no evidence that
the Sessa Candidates lack integrity or have a history of looting companies. Indeed, Mr. McWilliams, Ashford Prime&rsquo;s lead
director, testified that he had &ldquo;no view&rdquo; as to whether the Sessa Candidates lack integrity or pose a threat to the
company. (ROA.16-16071.3558-59) He admitted that he was &ldquo;not aware&rdquo; of any reason to think they would loot Ashford
Prime. (ROA.16-10671.3558) Likewise, Mr. Murphy testified that he had &ldquo;no basis&rdquo; to think the Sessa Candidates lack
integrity or competence or that they have ever stolen anything. (ROA.16-10671.3570-73)</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">Ashford&rsquo;s primary argument, the one which
the district court found the incumbent directors could &ldquo;rationally believe&rdquo; under the business judgment rule, was that
the Sessa Candidates failed to disclose their alleged secret plans and proposals. (ROA.16-10671.4153-54; ROA.16-10672.4650-51)
But Sessa firmly established that there are no such plans or proposals. (<I>See</I> ROA.16-10672.2010-12.) It was only the district
court&rsquo;s erroneous application of the business judgment rule that led it to disregard Sessa&rsquo;s position. Without that
erroneous application of the business judgment rule, Sessa is likely to succeed on the merits</P>

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


<!-- Field: Page; Sequence: 69; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->54<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: bold 10pt Times New Roman, Times, Serif; margin-top: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"><FONT STYLE="color: windowtext">V.</FONT></TD><TD><FONT STYLE="color: windowtext">This
                                         Court Should Set Aside the Results of the Election and Order a New Election</FONT></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 district court&rsquo;s application of the
equitable factors relevant to evaluating a preliminary injunction motion was also fundamentally flawed. The district court&rsquo;s
preliminary injunction allowed the incumbent directors to effectively disenfranchise Sessa and the other Ashford Prime stockholders.
That action caused Sessa irreparable harm, was entirely inequitable, and contrary to the strong public policy favoring fair and
unbiased director elections. Allowing the Sessa Candidates to stand for election would not have created &ldquo;shareholder confusion&rdquo;
or caused Ashford Prime&rsquo;s stockholders to &ldquo;case meaningless votes.&rdquo; (ROA.16-10671.4154-55; ROA. 16-10672.4651-52)</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 equitable factors also support requiring
the incumbent directors to approve the Sessa Candidates to neutralize the Proxy Penalty. <I>See SandRidge</I>, 68 A.3d at 264 (concluding
that stockholders were irreparably harmed by coercive effect of proxy put). It would result in no hardship to the incumbent directors
because it would properly result in an election on a level playing field, as Maryland law contemplates. And it would serve the
public interest because Ashford Prime is a publicly traded company and its stockholders have an interest in ensuring that the stockholder
right to elect directors of a public company is preserved.</P>

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


<!-- Field: Page; Sequence: 70; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->55<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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">This Court has broad equitable power to remedy
the injustice created by the district court&rsquo;s preliminary injunction, including the power to set aside the June 10, 2016
annual meeting and order a new election in which the Sessa Candidates are allowed to participate. <I>See W. Dist. Council of Lumber
Prod.</I>, 892 F.2d at 1416 (holding that the Court of Appeals has &ldquo;the power to undo the election if . . . such relief is
in the best interests of the shareholders&rdquo; despite that plaintiff had &ldquo;sought only a preliminary injunction enjoining
[defendant] from voting any proxies&rdquo;). &ldquo;Equity demands&rdquo; that a corporate election &ldquo;be voided in whole or
in part so as to permit a new election of directors&rdquo; where, as here, there is a &ldquo;strong likelihood . . . that the election
results were influenced by . . . the district court&rsquo;s election-eve order.&rdquo; <I>Kennecott Copper</I>, 584 F.2d at 1200-01.</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 stockholders&rsquo; overwhelming 2-1 vote
to &ldquo;withhold&rdquo; support for the incumbent directors at the annual meeting palpably demonstrates that the Sessa Candidates
had a &ldquo;strong likelihood&rdquo; of winning the election if the district court had not enjoined them from standing for election.
This Court should therefore exercise its broad equitable powers to undo the election and allow Ashford Prime&rsquo;s stockholders
to have a meaningful vote for the Company&rsquo;s directors.</P>

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


<!-- Field: Page; Sequence: 71; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->56<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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>CONCLUSION</B></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">For the foregoing reasons, the district court&rsquo;s
decision should be reversed, and the Court should enter an order: (1) setting aside the results of the June 10, 2016 election,
(2) requiring the Company and incumbent directors to hold a new election as promptly as reasonably practicable in which the Sessa
Candidates are allowed to stand for election and solicit proxies, and (3) ordering the incumbent directors to approve the Sessa
Candidates for purposes of the TAAA in order neutralize the Proxy Penalty and ensure a fair election.</P>

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


<!-- Field: Page; Sequence: 72; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->57<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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%; padding-right: 0; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Date:&nbsp;&nbsp;June 24, 2016</FONT></TD>
    <TD STYLE="width: 50%; padding-right: 0; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Respectfully submitted,</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</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%">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">s/ <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen E. Summers, Lead Counsel</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John D. Byars</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">glen.summers@bartlit-beck.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">john.byars@bartlit-beck.com</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joseph W. Doman</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">Bartlit Beck Herman Palenchar</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">joe.doman@bartlit-beck.com</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&amp; Scott</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> LLP</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">Bartlit Beck Herman Palenchar</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Courthouse Place</FONT></TD>
    <TD STYLE="padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&amp; Scott</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">54 W. Hubbard Street, Suite 300</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1899 Wynkoop Street, 8th Floor</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Chicago, Illinois 60654</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Denver, Colorado 80202</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Telephone No. (312) 494-4400</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Telephone No. (303) 592-3100</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Facsimile No.:&nbsp;&nbsp;(312) 494-4440</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt"><I>Attorneys for Appellants</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 73; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->58<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

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

<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>CERTIFICATE OF COMPLIANCE</B></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">The undersigned certifies that this brief complies
with the type-volume limitations required under Fed. R. App. P. 32(a)(7)(B). Exclusive of the portions of the brief exempted under
Fed. R. App. P. 32(a)(7)(B)(iii), this brief consists of 13,956 words as measured by Microsoft Word 2013 version 15.0.4823.1001.
This brief complies with the typeface requirements of Fed. R. App. P. 32(a)(5) and the type style requirements of Fed. R. App.
P. 32(a)(6) because it has been prepared in Garamond, a proportionally spaced typeface using Microsoft Word 2013 in font size 14.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</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%">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">s/ <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen E. Summers, Lead Counsel</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt; font-variant: small-caps">Bartlit Beck Herman Palenchar</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&amp; Scott</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt">Denver, Colorado 80202</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt">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; font-size: 10pt"><I>Attorneys for Appellants</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 74; Value: 1 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->59<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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>CERTIFICATE OF SERVICE</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">I certify that on June
24, 2016, the foregoing Brief was filed electronically using the Court&rsquo;s CM/ECF system, which will give notice of the filing
to counsel. In addition, an electronic copy of the Brief was served upon counsel for the Appellee listed below by electronic mail:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</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: 56%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">David Clarke, Jr. </FONT></TD>
    <TD STYLE="width: 44%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">DLA <FONT STYLE="font-variant: small-caps">Piper</FONT> LLP (US)</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">500 8th Street, NW</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Washington, DC 20004</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Email: <U>david.clarke@dlapiper.com</U></FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</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%">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">s/ <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Glen E. Summers, Lead Counsel</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt; font-variant: small-caps">Bartlit Beck Herman Palenchar</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps">&amp; Scott</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"> LLP</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt">Denver, Colorado 80202</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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; font-size: 10pt">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; font-size: 10pt"><I>Attorneys for Appellants</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


<!-- Field: Page; Sequence: 75 -->
    <DIV STYLE="margin-top: 6pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->60<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<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-align: right"></P>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>v446127_ex99-2.htm
<DESCRIPTION>EXHIBIT 2
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 2</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Case No. 16-10671</B></P>

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL (MASTER), L.P.,</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Defendant&ndash;Third Party Plaintiff &ndash;
Appellant</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL GP, L.L.C.; SESSA CAPITAL IM,
L.P.; SESSA CAPITAL IM GP, L.L.C.; JOHN E. PETRY; PHILIP B. LIVINGSTON; LAWRENCE A. CUNNINGHAM; DANIEL B. SILVERS; CHRIS D. WHEELER,</P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DOUGLAS A. KESSLER; ANDREW STRONG; STEFANI D.
CARTER; CURTIS B. MCWILLIAMS; MONTY J. BENNETT; ASHFORD HOSPITALITY</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">ADVISORS, L.L.C.; ASHFORD, INCORPORATED; MATTHEW</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">D. RINALDI; W. MICHAEL MURPHY,</P>

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

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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>Consolidated w/16-10672</B></P>

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">SESSA CAPITAL (MASTER), L.P.; SESSA CAPITAL
GP, L.L.C.; SESSA CAPITAL IM, L.P.; SESSA CAPITAL IM GP, L.L.C.; JOHN E. PETRY; PHILIP B. LIVINGSTON; LAWRENCE A. CUNNINGHAM;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DANIEL B. SILVERS; CHRIS D. WHEELER,</P>

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

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

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

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

<!-- Field: Page; Sequence: 76 -->
    <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: 0; text-align: center"></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">On Appeal from the 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, Dallas Division</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 12pt">Civ. Nos</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">.</FONT><FONT STYLE="font-size: 12pt">
3:16-cv-00527-N and 3:16-cv-00713</FONT></P>

<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></B></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<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>APPELLANTS&rsquo; REPLY BRIEF</B></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&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: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">John
        D. Byars</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font: small-caps 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT><FONT STYLE="font-size: 10pt; font-variant: small-caps">&amp;
        Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Courthouse Place</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">54 W. Hubbard Street, Suite
        300</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Chicago, Illinois 60654</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (312) 494-4400</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (312) 494-4440</FONT></P></TD>
    <TD STYLE="width: 51%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers, Lead Counsel</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Joseph
        W. Doman</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Facsimile
        No. (303) 592-3140</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I></P>

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

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


<!-- Field: Page; Sequence: 77 -->
    <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: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Nos. 16-10671 and 16-10672</P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

<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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-variant: small-caps"><I>Ashford
Hospitality Prime, Inc. v. Sessa Capital (Master), L.P.</I></FONT></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

<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"></P>

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

<!-- Field: Rule-Page --><DIV ALIGN="CENTER" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The undersigned
counsel of record certifies that the following listed persons and entities as described in the fourth sentence of Rule 28.2.1
have an interest in the outcome of this case. These representations are made in order that the judges of this Court may evaluate
possible disqualification or recusal.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Sessa Capital (Master), L.P. (&ldquo;Sessa&rdquo;), Defendant-Appellant, Counterclaimant and Third-Party Claimant,
is a Cayman Islands exempted limited partnership that is not publicly traded;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Sessa Capital GP, LLC, Defendant-Appellant, is a Delaware limited liability company that is not publicly traded;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Sessa Capital IM, L.P., Defendant-Appellant, is a Delaware limited partnership that is not publicly traded;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Sessa Capital IM GP, LLC, Defendant-Appellant, is a Delaware limited liability company that is not publicly traded;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;John E. Petry, Defendant-Appellant, is the founder and manager of the Sessa entities and one of the persons nominated
by Sessa as a candidate for election to the board of Ashford Hospitality Prime Inc. (&ldquo;Ashford Prime&rdquo;);</FONT></P>

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


<!-- Field: Page; Sequence: 78; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->i<!-- Field: /Sequence --></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Philip B. Livingston, Defendant-Appellant, is one of the persons nominated by Sessa as a candidate for election to
the board of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Lawrence A. Cunningham, Defendant-Appellant, is one of the persons nominated by Sessa as a candidate for election
to the board of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Daniel B. Silvers, Defendant-Appellant, is one of the persons nominated by Sessa as a candidate for election to the
board of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Chris D. Wheeler, Defendant-Appellant, is one of the persons nominated by Sessa as a candidate for election to the
board of Ashford Hospitality Prime Inc.;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ashford Hospitality Prime, Inc., Plaintiff-Counterclaim-Defendant-Appellee, is a publicly traded Maryland corporation. There are
no publicly held corporations that own ten percent or more of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ashford Inc., Third-Party Defendant-Appellee, is a publicly-traded Delaware corporation. There are no publicly held corporations
that own ten percent or more of Ashford Inc.;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ashford Hospitality Advisors LLC, Third-Party Defendant-Appellee, is a Delaware limited liability company and a subsidiary of
and the operating company of Ashford Inc.;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Monty J. Bennett, Third-Party Defendant-Appellee, is the CEO and Chairman of the Board of Directors of Ashford Hospitality Prime;</FONT></P>

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


<!-- Field: Page; Sequence: 79; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ii<!-- Field: /Sequence --></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Douglas A. Kessler, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stefani D. Carter, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Curtis B. McWilliams, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
W. Michael Murphy, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Matthew D. Rinaldi, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime; and</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Andrew Strong, Third-Party Defendant-Appellee, is a member of the Board of Directors of Ashford Prime.</FONT></P>

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


<!-- Field: Page; Sequence: 80; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iii<!-- Field: /Sequence --></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>Attorneys for Defendants-Appellants:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt"><FONT STYLE="font-size: 10pt">Sundeep
        Kumar (Rob) Addy</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Joseph
        W. Doman</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.95pt; text-indent: -12.95pt"><FONT STYLE="font-size: 10pt">Facsimile
        No. (303) 592-3140</FONT></P></TD>
    <TD STYLE="width: 2%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Paul J. Skiermont</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Eliot J. Walker</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Shellie Stephens</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Skiermont
        Derby</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">2200 Ross Ave., Suite 4800W</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (214) 978-6600</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (214) 978-6601</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 12.95pt; font-size: 10pt; text-indent: -12.95pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">John
        D. Byars</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Courthouse Place</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">54 W. Hubbard Street, Suite
        300</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Chicago, Illinois 60654</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (312) 494-4400</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Facsimile
        No. (312) 494-4440</FONT></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">John B. Isbister</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Daniel S. Katz</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Christopher D. Heagy</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Thomas M. Joraanstad</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Tydings
        &amp; Rosenberg</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">100 East Pratt Street, 26th
        Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Baltimore, Maryland 21202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (410) 752-9700</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (410) 727-5460</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>Attorneys for Plaintiffs-Appellees:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Martin L. Seidel</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Nathan M. Bull</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Jared Stanisci</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Jonathan Morind Hoff</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Cadwalader,
        Wichersham &amp; Taft LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">200 Liberty Street</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">New York, New York 10281</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (212) 504-6000</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (212) 406-6666</FONT></P></TD>
    <TD STYLE="width: 2%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Matthew G. Nielsen</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">James C. Bookhout</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Bradley W. Foster</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Andrews
        Kurth LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">1717 Main Street, Suite 3700</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (214) 659-4400</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (214) 659-4401</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 81; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->iv<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">G. Stewart
                           Webb, Jr.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">John T. Prisbe</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Michael J. Vilson</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Venable
        </FONT><FONT STYLE="font-size: 10pt">LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">750 East Pratt Street, Suite
        900</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Baltimore, Maryland 21202</FONT></P></TD>
    <TD STYLE="width: 2%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 49%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">David
                           Clarke, Jr.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">DLA <FONT STYLE="font-variant: small-caps">Piper
        </FONT>LLP (US)</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">500 8th Street, NW</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Washington, DC 20004</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (202) 799-4503</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No (202) 799-5503</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">James D. Mathias</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">DLA <FONT STYLE="font-variant: small-caps">Piper
        </FONT>LLP (US)</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">6225 Smith Avenue</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Baltimore, Maryland 21209</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (410) 580-3000</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No. (410) 580-3001</FONT></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">James R. Nelson</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">DLA <FONT STYLE="font-variant: small-caps">Piper
        </FONT>LLP (US)</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">1717 Main Street, Suite 4600</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201-4629</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (214) 743-4500</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No (214) 743-4545</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Thomas F. Allen, Jr.</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Evan P. Singer</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Jones
        Day</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">2727 North Harwood Street</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201-1515</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone: (214) 220-3939</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile: (214) 969-5100</FONT></P></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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%; font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; font-size: 10pt"><FONT STYLE="font-size: 10pt">s/ <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">Glen E. Summers</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt"><I>Attorney of Record for Appellants</I></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>


<!-- Field: Page; Sequence: 82; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->v<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">CERTIFICATE OF INTERESTED PERSONS</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">i</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">INTRODUCTION</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">STANDARD OF REVIEW</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">ARGUMENT</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">I.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The District Court Committed
    an Error of Law in Holding That the Board&rsquo;s Disqualification of the Sessa Candidates Is Reviewed Under Maryland&rsquo;s
    Business Judgment Rule</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 0.5in"><FONT STYLE="font-size: 10pt">A.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">The Maryland Court of Appeals Has Made Clear That it Would Not
    Apply the Business Judgement Rule</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 0.5in; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">B.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Every Relevant Decision of the Maryland Courts and Federal Courts
    Applying Maryland Law Confirms That the Maryland Court of Appeals Would Not Apply the Business Judgment Rule</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">C.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">The Applicable Maryland Statutes Are Not to the Contrary</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">5</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">D.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">The Recent Amendments to the Maryland Statute Are Irrelevant</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">E.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">The Maryland Court of Appeals Would Apply the <I>Blasius</I>
    Standard</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">F.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">The Maryland Court of Appeals Would Not Tolerate the Incumbent
    Directors&rsquo; Discriminatory Application of the Advance Notice Bylaws</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">II.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The District Court Committed
    a Further Error of Law by Applying the Wrong Legal Standard in Applying Maryland&rsquo;s Business Judgment Rule</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">A.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Sessa Has Overcome the Business Judgment Rule with Evidence
    the Incumbent Directors Acted in Bad Faith</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">12</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">B.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Sessa Has Overcome the Business Judgment Rule with Evidence
    That Ms. Carter and the Other Directors Had a Personal Interest in the Election</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 83; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->vi<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; width: 0.5in"><FONT STYLE="font-size: 10pt">C.</FONT></TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Sessa Has Overcome the Business Judgment Rule with Evidence
    the Board Did Not Act on an Informed Basis</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 0.5in; text-align: right"><FONT STYLE="font-size: 10pt">15</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">III.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The District Court Committed
    a Further Error of Law by Allowing the Incumbent Directors to Disqualify the Sessa Candidates Based on an Alleged Failure
    to Provide Information That Is Not Required by the Bylaws</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">IV.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">There Is No Basis to Conclude
    that Sessa Had Undisclosed Plans it Refused to Disclose</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">18</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">V.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">Sessa Has Not Waived its Right
    to Request a New Election</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">VI.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The Court Should Require the
    Incumbent Directors to Approve the Sessa Candidates for Purposes of the Proxy Penalty and Beware the Ashford Parties&rsquo;
    Efforts to Confuse the Issues</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">VII.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The Alternative Grounds for
    Affirmance Urged by the Ashford Parties Are Without Merit and Should Not Be Addressed by This Court in the First Instance</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">VIII.</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">The Equities Sharply Favor
    Sessa</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">27</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">CONCLUSION</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">28</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 84; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->vii<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>Cases</B></FONT></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 85%"><FONT STYLE="font-size: 10pt"><I>Ackal v. Centennial Beauregard Cellular, L.L.C.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">700 F.3d 212 (5th Cir. 2012)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Aprahamian v. HBO &amp; Co.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">531 A.2d 1204 (Del. Ch. 1987)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13, 14</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Avery v. Maremont Corp.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">628 F.2d 441 (5th Cir. 1980)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Barefoot Architect, Inc. v. Bunge</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">632 F.3d 822 (3d Cir. 2011)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Blasius Indus., Inc. v. Atlas Corp.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">564 A.2d 651 (Del. Ch. 1988)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7, 8, 27</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Boland v. Boland</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">31 A.3d 529 (Md. 2011)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11, 13, 16</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Daniels v. New Germany Fund,</I> <I>Inc.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">2006 WL 4523622 (D. Md. Mar. 29, 2006)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4, 9</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Hill v. U. S. Fid. &amp; Guar. Co.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">428 F.2d 112 (5th Cir. 1970)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Hills Stores Co. v. Bozic</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">769 A.2d 88 (Del. Ch. 2013)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24, 25</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Hormel v. Helvering</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">312 U.S. 552 (1941)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Howe ex rel. Howe v. Scottsdale Ins. Co.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">204 F.3d 624 (5th Cir. 2000)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Hubbard<FONT STYLE="font-family: Times New Roman, Times, Serif">
    </FONT>v. Hollywood Park Realty Enters., Inc.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">1991 WL 3151 (Del. Ch. Jan. 14, 1991)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>JANA Master Fund, Ltd. v. CNET Networks, Inc.</I>,</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">954 A.2d 335 (Del. Ch. 2008)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">17</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 85; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->viii<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 85%"><FONT STYLE="font-size: 10pt"><I>Kallick v. SandRidge Energy, Inc.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">68 A.3d 242 (Del. Ch. 2013)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">24</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Kennecott Copper Corp. v. Curtiss-Wright Corp.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">584 F.2d 1195 (2d Cir. 1978)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">22</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Langston v. Riffe</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">754 A.2d 389 (Md. 2000)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Mountain Manor Realty, Inc. v. Buccheri</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">461 A.2d 45 (Md. Ct. Spec. App. 1983)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>NCR Corp. v. Am. Tel. &amp; Tel. Co.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">761 F. Supp. 475 (S.D. Ohio 1991)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4, 11, 16</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Openwave Sys.<FONT STYLE="font-family: Times New Roman, Times, Serif">
    </FONT>Inc. v. Harbinger Capital Partners Master Fund I, Ltd.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">924 A.2d 228 (Del. Ch. 2007)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>O'Sullivan v. Countrywide Home Loans, Inc.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">319 F.3d 732 (5th Cir. 2003)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Peterson v. Bell Helicopter Textron, Inc.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">806 F.3d 335 (5th Cir. 2015)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Shaker v. Foxby Corp.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">2005 WL 914385 (Md. Cir. Ct. Mar. 15, 2005)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">passim</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Shenker v. Laureate Educ., Inc.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">983 A.2d 408<I> </I>(Md. 2009)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">2, 3, 4, 5</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Sutton v. FedFirst Fin. Corp.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">126 A.3d 765 (Md. Ct. Spec. App. 2015)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">3, 4</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Tackney v. U.S. Naval Academy Alumni Ass&rsquo;n</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">971 A.2d 309 (Md. 2009)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">8</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Thomas v. Hoffman-LaRoche, Inc.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">949 F.2d 806 (5th Cir. 1992)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">4</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>United States v. Jenkins</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">974 F.2d 32 (5th Cir. 1992)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Unocal Corp v. Mesa Petroleum Co.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">493 A.2d 946 (Del. 1985)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">5, 6, 8</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 86; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->ix<!-- Field: /Sequence --></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 85%"><FONT STYLE="font-size: 10pt"><I>W. Dist. Council of Lumber Prod. &amp; Indus.
    Workers v. La. Pac. Corp.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 15%; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">892 F.2d 1412 (9th Cir. 1989)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">21, 22</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Werbowsky v. Collomb</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">766 A.2d 123 (Md. 2001)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">13, 14</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><I>Williamson-Dickie Mgf. Co. v. Apparel Ltd.</I>,</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9pt"><FONT STYLE="font-size: 10pt">2015 U.S. Dist. LEXIS 75227 (N.D. Tex. 2015)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">25</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><B>State Statutes</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns
    </FONT><FONT STYLE="font-size: 10pt">&sect; 2-404(b)(1)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">21, 27</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns
    </FONT><FONT STYLE="font-size: 10pt">&sect;&nbsp;2-405.1</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">7, 11</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns
    </FONT><FONT STYLE="font-size: 10pt">&sect; 2-405.1(a)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">10, 11, 12</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns
    </FONT><FONT STYLE="font-size: 10pt; color: #212121">&sect; 2-405.1(e)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Md. Code Ann., Corps. &amp; Ass&rsquo;ns
    </FONT><FONT STYLE="font-size: 10pt">&sect; 2-405.1(f)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">5, 6</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><B>Federal Rules</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Fed. R. App. P. 8(a)(2)(A)(i)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">22</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt"><B>Other Authorities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 9.35pt; text-indent: -9.35pt"><FONT STYLE="font-size: 10pt">5 William Meade
    Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher Cyclopedia of the Law of Corporations</FONT> &sect; 2025
    (Sept. 2015)</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">20</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">James J. Hanks, Jr., <FONT STYLE="font-variant: small-caps">Maryland
    Corporation Law</FONT> &sect; 6.8</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: right"><FONT STYLE="font-size: 10pt">11, 13</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.25pt; text-indent: -12.25pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 87; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;<!-- Field: Sequence; Type: LowerRoman; Name: PageNo -->x<!-- Field: /Sequence --></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: 0 0 0 12.25pt; text-indent: -12.25pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In their brief,
the Ashford Parties go to great lengths to defend the district court&rsquo;s decision. At times, they appear to test the bounds
of zealous advocacy with characterizations of the facts that cannot be squared with the record and descriptions of the law that
find little basis in the cases. With respect to at least one significant issue, they seem to deliberately try to confuse the Court.
But when the Court cuts through the fog the Ashford Parties have created, it becomes clear that the district court committed at
least four legal errors that require reversal:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt"><I>First,</I>
the district court erred by holding that the incumbent directors&rsquo; disqualification of the Sessa Candidates is reviewed under
Maryland&rsquo;s business judgment rule. <I>Second,</I> the district court erred by using an incorrect standard in applying Maryland&rsquo;s
business judgment rule. <I>Third</I>, the district court erred by upholding the incumbent directors&rsquo; disqualification of
the Sessa Candidates on the ground that they violated the bylaws by failing to disclose their &ldquo;plans&rdquo; for the Company
when there is no such requirement in the bylaws. <I>Fourth,</I> the district court erred by upholding the incumbent director&rsquo;s
disqualification of the Sessa Candidates on the basis of an alleged omission that was purely technical, despite well-established
law that advance notice provisions are not to be enforced to defeat stockholder nominations on inequitable or purely technical
grounds.</FONT></P>

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


<!-- Field: Page; Sequence: 88; Options: NewSection; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Perhaps recognizing
that the district court&rsquo;s decision cannot withstand scrutiny, the Ashford Parties try to hide behind a spurious waiver argument
and a litany of alternative arguments for affirmance that hardly warrant a response. Finally, the Ashford Parties&rsquo; arguments
that the equities favor them border on absurd in light of the stockholders&rsquo; unprecedented, overwhelming vote to &ldquo;withhold&rdquo;
support from the incumbents. As explained below, the Ashford Parties&rsquo; arguments are without merit, the district court&rsquo;s
order should be reversed, and this Court should set aside the results of the June 10, 2016 election and require that a new election
be held.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
suggest that the district court&rsquo;s decision is reviewed only for abuse of discretion. They are incorrect. &ldquo;Application
of an incorrect legal standard is, by definition, an abuse of discretion, and is reviewed <I>de novo</I>.&rdquo; <I>Ackal v. Centennial
Beauregard Cellular, L.L.C.</I>, 700 F.3d 212, 215 (5th Cir. 2012); <I>see also</I> <I>O'Sullivan v. Countrywide Home Loans, Inc.</I>,
319 F.3d 732, 737 (5th Cir. 2003) (legal errors reviewed de novo).</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>I.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         District Court Committed an Error of Law in Holding That the Board&rsquo;s Disqualification
                                         of the Sessa Candidates Is Reviewed Under Maryland&rsquo;s Business Judgment Rule</B></FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>A.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         Maryland Court of Appeals Has Made Clear That it Would Not Apply the Business Judgement
                                         Rule</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In applying the
business judgment rule to the incumbent board&rsquo;s disqualification of the Sessa Candidates, the district court relied almost
exclusively on the Maryland Court of Appeals&rsquo; statement in <I>Shenker </I>that &ldquo;the business judgment rule applies
to all decisions regarding [a] corporation&rsquo;s management.&rdquo; (ROA.16-10671.4148; 16-10672.4645, quoting <I>Shenker v.
Laureate Educ., Inc.</I>, 983 A.2d 408, 424<I> </I>(Md. 2009)). <I> </I>But the district court overlooked the next paragraph of
<I>Shenker</I>, in which the Court of Appeals made clear that &ldquo;[w]here the rights attendant to stock ownership are adversely
affected,&rdquo; including specifically when &ldquo;a shareholder&rsquo;s right to vote&rdquo; is impaired, &ldquo;the business
judgment rule does not apply.&rdquo; <I>Shenker</I>, 983 A.2d at 424. Indeed, the <I>Shenker </I>decision described the business
judgment rule as applying to directors only when &ldquo;acting in their managerial capacity.&rdquo; <I>See, e.g.,</I> <I>id.</I>
at 421. The Maryland Court of Appeals has thus established that board decisions relating to stockholder voting rights are not
managerial decisions and are not reviewed under Maryland&rsquo;s business judgment rule.</FONT></P>

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


<!-- Field: Page; Sequence: 89; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The district
court was not at liberty to ignore these statements from Maryland&rsquo;s highest court. It is well-established that in applying
state law, federal courts are required to follow the decisions of the state&rsquo;s highest court. <I>Howe ex rel. Howe v. Scottsdale
Ins. Co.</I>, 204 F.3d 624, 627 (5th Cir. 2000).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
attempt to dismiss Shenker by quoting a decision of Maryland&rsquo;s intermediate Court of Special Appeals, <I>Sutton v. FedFirst
Fin. Corp.</I>, 126 A.3d 765, 787 (Md. Ct. Spec. App. 2015), for the proposition that &ldquo;the specific holding of <I>Shenker
</I>was confined to the facts of the case, &lsquo;a cash-out merger transaction.&rsquo;&rdquo; Appellees&rsquo; Brief 30. But
they misleadingly fail to include the next sentence of <I>Sutton</I>, where the court observed that &ldquo;the principles set
forth were not limited to that specific factual scenario.&rdquo; <I>Sutton</I>, 126 A.3d at 787. Even if not the &ldquo;specific
holding&rdquo; of <I>Shenker</I>, the pertinent language is &ldquo;convincing evidence of the likely result&rdquo; that must be
considered in predicting how the Maryland Court of Appeals would decide the issue. <I>Thomas v. Hoffman-LaRoche, Inc.</I>, 949
F.2d 806, 812 (5th Cir. 1992).</FONT></P>

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


<!-- Field: Page; Sequence: 90; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>B.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>Every
                                         Relevant Decision of the Maryland Courts and Federal Courts Applying Maryland Law Confirms
                                         That the Maryland Court of Appeals Would Not Apply the Business Judgment Rule</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Every relevant
decision of other courts applying Maryland law confirms that the business judgment rule does not apply in these circumstances.
<I>See Shaker v. Foxby Corp.</I>, 2005 WL 914385, at *4-5 (Md. Cir. Ct. Mar. 15, 2005) (&ldquo;Maryland law provides the same
protection to shareholder voting rights that obtains in Delaware, in similar factual contexts, such as the present one involving
a proxy fight over control of the board.&rdquo;; <I>Daniels v. New Germany Fund,</I> <I>Inc.</I>, 2006 WL 4523622 (D. Md. Mar.
29, 2006) (same); <I>Mountain Manor Realty, Inc. v. Buccheri</I>, 461 A.2d 45, 53 (Md. Ct. Spec. App. 1983) (applying balancing
test); <I>see also</I> <I>NCR Corp. v. Am. Tel. &amp; Tel. Co.</I>, 761 F. Supp. 475, 496 (S.D. Ohio 1991) (following <I>Mountain
Manor</I>).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
try to ignore these cases. However, decisions from Maryland courts and federal courts sitting in Maryland, which are more familiar
with Maryland law, have &ldquo;persuasive force,&rdquo; <I>Hill v. U. S. Fid. &amp; Guar. Co.</I>, 428 F.2d 112, 114-15 (5th Cir.
1970), and are &ldquo;entitled to great weight on review,&rdquo; <I>Avery v. Maremont Corp.</I>, 628 F.2d 441, 446 (5th Cir. 1980).</FONT></P>

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


<!-- Field: Page; Sequence: 91; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
attempt to dismiss <I>Shaker</I> as an &ldquo;unreported Maryland trial court decision without precedential weight.&rdquo; Appellees&rsquo;
Brief 32. But the decision, authored by a highly-regarded Maryland judge, is considered a published decision and persuasive authority
in Maryland.<SUP>1</SUP></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>C.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         Applicable Maryland Statutes Are Not to the Contrary</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Unable to cite
a single case to support their contention that Maryland&rsquo;s business judgment rule applies to decisions regarding the eligibility
of board candidates (Appellees&rsquo; Brief 6-7), the Ashford Parties attempt to rely on <FONT STYLE="font-variant: small-caps">Md.
Code Ann., Corps. &amp; Ass&rsquo;ns</FONT> (&ldquo;MGCL&rdquo;) &sect; 2-405.1(f), which provides that &ldquo;[a]n act of a director
relating to or affecting an acquisition or potential acquisition of control of a corporation <I>may not be subject to a higher
duty or greater scrutiny than is applied to any other act of a director</I>.&rdquo; Appellees&rsquo; Brief 29. But the Maryland
Court of Appeals held in <I>Shenker </I>that &sect; 2-405.1(f) is only &ldquo;meant to reject in Maryland the heightened scrutiny
imposed on directors of Delaware corporations in hostile takeover situations by the Delaware Supreme Court in <I>Unocal Corp v.
Mesa Petroleum Co.</I>, 493 A.2d 946 (Del. 1985).&rdquo; <I>Shenker</I>, 983 A.2d at 427.</FONT></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>1
</SUP>The Maryland state judiciary maintains an &ldquo;opinion database&rdquo; of published decisions from the Circuit Court.&nbsp;
The <I>Shaker&nbsp;</I>decision is published on that database.&nbsp; <U>http://www.mdcourts.gov/businesstech/opinions_archive2005.html.</U></FONT></P>



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


<!-- Field: Page; Sequence: 92; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">By referring
to <I>Unocal</I>, the Maryland Court of Appeals indicated what constitutes a &ldquo;hostile takeover&rdquo; in Maryland: an unwanted
attempt to acquire ownership of a company through a tender offer for the target company&rsquo;s stock, often furthered by an additional
corporate transaction such as a &ldquo;cash out merger.&rdquo; <I>See e.g., Unocal Corp., </I>493 A.2d at 949-50. There is no
hostile takeover in this case. Sessa merely sought to exercise its right under the bylaws and Maryland law to nominate and vote
for director candidates other than the incumbents. Sessa was making no effort to increase its ownership stake and, indeed, is
prohibited from mounting a hostile takeover by Ashford Prime&rsquo;s Articles of Incorporation, which limit ownership of Ashford
Prime&rsquo;s stock to 9.8% or less. (ROA.16-10672.618) Appellees have not cited any case in which a Maryland court has applied
Section 2-405.1(f) to actions of a corporate board that relate to stockholder voting.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Appellees attempt
to create a false impression that this case involves some form of hostile takeover by asserting that the case involved &ldquo;coordinated
purchases of the Company&rsquo;s stock&rdquo; and a &ldquo;joint agreement to seize control of the Board.&rdquo; Appellees&rsquo;
Brief 14, 48. But the district court made no such finding and no such evidence exists.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The only Sessa
Candidate who purchased any Ashford Prime stock was Mr.&nbsp;Livingston. (ROA.16-10672.3511) His purchase of 4,000 shares at a
total cost of roughly $40,000 was immaterial, representing less than .000016% of Ashford Prime&rsquo;s outstanding common stock.
(ROA.<FONT STYLE="color: #FB0007"> </FONT>16-10672.2014) He made the purchase independently, after Sessa submitted his nomination
materials, only because he &ldquo;think[s] it&rsquo;s very important for directors to own stock in the company, to align themselves
with the shareholders.&rdquo; (ROA.16-10672.3872)</FONT></P>

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


<!-- Field: Page; Sequence: 93; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Furthermore,
four of the five Sessa Candidates had no affiliation whatsoever with Sessa. (ROA.16-16072.3535-37) They all provided written certifications
that they had not entered into &ldquo;any agreement, arrangement or understanding&rdquo; as to how they would vote as directors
on &ldquo;any issue or question.&rdquo; (ROA.16-10672.3582; .3644; .3689; .3748; .3806)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>D.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         Recent Amendments to the Maryland Statute Are Irrelevant</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
mention Maryland&rsquo;s pending amendment of MGCL &sect;&nbsp;2-405.1, but are unable to explain how it has any significance
to this case. The Ashford Parties concede that the amendment does not go into effect until October 1, 2016 (Appellees&rsquo; Brief
30), and under Maryland law it does not apply retroactively. <I>Langston v. Riffe</I>, 754 A.2d 389, 394 (Md. 2000) (citation
omitted) (&ldquo;In the absence of clear legislative intent to the contrary, a statute is not given retrospective effect.&rdquo;).
As explained in Sessa&rsquo;s Opening Brief, the amendment does not refer to stockholder voting and would therefore not be construed
to apply to matters of stockholder voting rights. The Ashford Parties do not even attempt to refute these arguments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>E.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         Maryland Court of Appeals Would Apply the <I>Blasius </I>Standard</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As explained
in Sessa&rsquo;s Opening Brief, the Delaware Court of Chancery has held that a board must provide a &ldquo;compelling justification&rdquo;
for actions that have the &ldquo;primary purpose of impeding the exercise of stockholder voting.&rdquo; <I>See Blasius Indus.,
Inc. v. Atlas Corp.</I>, 564 A.2d 651, 661 (Del. Ch. 1988). The incumbent directors&rsquo; decision to disqualify the Sessa Candidates
falls squarely within the ambit of the <I>Blasius</I> category, as it plainly had the &ldquo;primary purpose of impeding the exercise
of stockholder voting.&rdquo;</FONT></P>

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


<!-- Field: Page; Sequence: 94; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Citing <I>Tackney
v. U.S. Naval Academy Alumni Ass&rsquo;n</I>, 971 A.2d 309 (Md. 2009), the Ashford Parties assert that the Maryland Court of Appeals
&ldquo;rejected an attempt to apply <I>Blasius </I>to the review of a board action that allegedly interfered with stockholder
voting rights.&rdquo; Appellees&rsquo; Brief 31. But the Ashford Parties&rsquo; description of the <I>Tackney</I> decision is
highly misleading. <I>Tackney</I> had nothing to do with &ldquo;stockholder voting rights.&rdquo; It concerned voting rights of
members of a private, non-profit, voluntary organization that has no stockholders. <I>Tackney</I>, 971 A.2d at 311. The Court
declined to apply <I>Blasius&rsquo;s </I>compelling justification standard because, &ldquo;in contrast to <I>Blasius</I>,&rdquo;
the association&rsquo;s members &ldquo;were not denied the opportunity to vote for their preferred candidate.&rdquo; <I>Tackney</I>,
971 A.2d at 320.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Regardless, the
incumbent directors&rsquo; conduct would not survive scrutiny under either the <I>Blasius</I> or the <I>Unocal </I>standard, which
the Ashford Parties appear to tacitly concede by relegating the issue to one conclusory footnote. <I>See</I> Appellees&rsquo;
Brief 32 n.8.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>F.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The
                                         Maryland Court of Appeals Would Not Tolerate the Incumbent Directors&rsquo; Discriminatory
                                         Application of the Advance Notice Bylaws</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">As explained
in Sessa&rsquo;s Opening Brief, it is well-established that advance notice provisions cannot be used to discriminate against director
nominees or to entrench incumbent directors. Indeed, this principal was expressly adopted by the Maryland Circuit Court in <I>Shaker</I>,
2005 WL 914385, at *4, and by the U.S. District Court for the District of Maryland in <I>Daniels</I>, 2006 WL 4523622, at *3.</FONT></P>

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


<!-- Field: Page; Sequence: 95; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Incredibly, the
Ashford Parties assert that Sessa &ldquo;has not proffered any evidence of discriminatory enforcement.&rdquo; Appellees&rsquo;
Brief 32. But the Ashford Parties concede that the Company required the Sessa Candidates to complete a special, onerous questionnaire.
That questionnaire was designed to provoke objections and answers that could be characterized as incomplete, and that improperly
went beyond the requirements of the bylaws. Opening Brief 34-35.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Ashford Prime&rsquo;s
bylaws specify what information the board can require from director nominees, and they expressly incorporate the requirements
of Regulation 14A. (ROA.16-10672.2214) The questionnaires provided to the incumbent directors were consistent with the bylaws,
and even contained citations to Regulation 14A for guidance. (ROA.16-10672.2474-522) The questionnaire provided to the Sessa Candidates,
however, deleted the internal references to Regulation 14A and sought disclosure of a vast amount of information not required
by Regulation 14A, such as all of the candidate&rsquo;s &ldquo;plans&rdquo; or &ldquo;proposals&rdquo; for the Company, all of
the candidate&rsquo;s discussions regarding the Company, and copies of any &ldquo;related analysis, emails, correspondence or
documentation.&rdquo; (ROA.16-10672.2308-13)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
claim there is &ldquo;nothing sinister&rdquo; in having a special questionnaire for &ldquo;insurgents &ndash; who were previously
unknown to the Company.&rdquo; Appellees&rsquo; Brief 47. But this argument is belied by that fact that even when the incumbent
directors were first considered for the Ashford Prime board, they did not have to fill out a questionnaire like the one required
of the Sessa Candidates. (ROA.<FONT STYLE="font-family: Times New Roman, Times, Serif; color: #FB0007"> </FONT>16-10672.2327-69,
2013 Ashford Trust Questionnaire)</FONT></P>

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


<!-- Field: Page; Sequence: 96; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The incumbent
directors&rsquo; complaints about the Sessa Candidates&rsquo; completed questionnaires also reflects discriminatory treatment.
The incumbent directors complain that Livingston did not immediately disclose a purchase of a small amount of Ashford Prime stock.
However, they do not dispute that Stefani Carter, the incumbent Chair of Ashford Prime&rsquo;s Nominating and Governance Committee
(the &ldquo;Nominating Committee&rdquo;), failed to disclose her ownership of Company stock on multiple questionnaires without
consequence. Opening Brief 35.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Likewise, the
incumbent directors complain that Mr. Livingston described himself as a &ldquo;CPA&rdquo; in after his CPA licenses had expired.
Appellees&rsquo; Brief 37-38. But Ashford Prime&rsquo;s Chief Operating Officer and General Counsel, David Brooks, also described
himself as a &ldquo;CPA&rdquo; in a filing with the SEC after his license expired, also without consequence. Opening Brief 35.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>II.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The District Court Committed
a Further Error of Law by Applying the Wrong Legal Standard in Applying Maryland&rsquo;s Business Judgment Rule</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The district
court also failed to apply the correct legal standard in applying Maryland&rsquo;s business judgment rule.</FONT></P>

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


<!-- Field: Page; Sequence: 97; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Section 2-405.1(a)
of the Maryland Business and Corporations Code establishes the substantive duties of directors of a Maryland corporation. It provides
that a director &ldquo;shall perform his duties&rdquo;: (1) &ldquo;[i]n good faith&rdquo;; (2) &ldquo;[i]n a manner he reasonably
believes to be in the best interest of the corporation&rdquo;; and (3) &ldquo;[w]ith the care that an ordinarily prudent person
in a like position would use under the circumstances.&rdquo; <FONT STYLE="font-variant: small-caps">MGCL</FONT> &sect; 2-405.1(a).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt; color: #212121">Section
2-405.1(e) codifies the business judgment rule in Maryland, and merely creates a <I>presumption</I> that </FONT><FONT STYLE="font-size: 10pt">directors
have met their substantive obligations under Subsection (a)<FONT STYLE="color: #212121">.</FONT> <FONT STYLE="font-variant: small-caps">MGCL
</FONT>&sect; 2-405.1(e); James J. Hanks, Jr., <FONT STYLE="font-variant: small-caps">Maryland Corporation Law</FONT> &sect; 6.8.
That presumption can be overcome by actual evidence of bad faith, personal interest, or lack of informed decision-making. <I>Boland
v. Boland</I>, 31 A.3d 529, 548-49 (Md. 2011) (citations omitted); <I>NCR Corp</I>., 761 F. Supp. at 491<I> </I>(&ldquo;[a]ny
decision undertaken on the basis of insufficient knowledge is inherently unreasonable&rdquo;). &ldquo;Once the challenger presents
evidence adequate to rebut the presumption, the burden of production shifts back to the <I>corporation</I> or directors, as the
case may be, to present evidence that the directors acted in accordance with Section 2-405.1.&rdquo; Hanks, <FONT STYLE="font-variant: small-caps">Maryland
Corporation Law</FONT> &sect; 6.8 (citing <I>NCR Corp.</I>, 761 F. Supp. at 491).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Despite Sessa
expressly arguing that the incumbent directors&rsquo; disqualification of the Sessa Candidates was not protected by the business
judgment rule because the directors acted bad faith, were personally interested in the election, and had not acted on an informed
basis (ROA.16-10671.3261), the district court never addressed these issues. Instead, it applied something similar to the rational
basis test from the field of constitutional law. The district court rested its decision solely on its conclusion that &ldquo;the
board could rationally believe the Sessa candidates had a plan they refused to disclose in their questionnaires.&rdquo; (ROA.16-10671.4153-54;
ROA.16-10672.4650-51)</FONT></P>

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


<!-- Field: Page; Sequence: 98; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-size: 10pt"><B>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa
Has Overcome the Business Judgment Rule with Evidence the Incumbent Directors Acted in Bad Faith</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The evidence
of bad faith here is overwhelming. On March 24, 2016, Jonathan Kaye of Moelis &amp; Co., which was retained specifically to assist
the Company in defeating Sessa&rsquo; proxy contest, met with Sessa. Reading from written talking points, Mr. Kaye attempted to
pressure Mr. Petry to abandon the proxy contest. During that conversation, he told Mr. Petry that the incumbent directors were
pursuing a &ldquo;strategy of declaring your nominees invalid.&rdquo; (ROA.16-10672.2036) Mr. Kaye&rsquo;s admission clearly suggests
that the board&rsquo;s decision to disqualify the Sessa Candidates was not made in good faith and was instead part of a strategy
to entrench the incumbent board.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
now argue that Mr. Kaye did not actually say those words. Appellees&rsquo; Brief 47 n.13. But the statement is reflected in the
written talking points Mr. Kaye spoke from at the meeting, which the Company was compelled to produce in discovery. (ROA.16-10672.2035-37)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Perhaps most
importantly of all, the incumbent directors have engaged in a litany of other acts of entrenchment, including the adoption of
the Proxy Penalty and the Proxy Put, and their attempted issuance of &ldquo;Penny Preferred.&rdquo; All of this evidence demonstrates
that the incumbent directors disqualified the Sessa Candidates in bad faith to perpetuate themselves in office. Opening Brief
11.</FONT></P>

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


<!-- Field: Page; Sequence: 99; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The incumbent
directors&rsquo; bad faith is also apparent in their creation of a new, highly onerous questionnaire for the Sessa Candidates
that exceeded the bylaws, leaving the Sessa Candidates only five business days to complete it before the deadline; in them raising
the most trivial issues with Mr. Livingston&rsquo;s responses; and in their disqualification of all five of the Sessa Candidates,
even though only Mr. Petry is affiliated with Sessa. And as discussed below, it can also be seen in the fact that the incumbent
directors were already well aware of Sessa&rsquo;s positions (<I>see</I> Appellees&rsquo; Brief 41) &ndash; making any omission
in Sessa&rsquo;s nomination materials entirely technical.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-size: 10pt"><B>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa
Has Overcome the Business Judgment Rule with Evidence That Ms. Carter and the Other Directors Had a Personal Interest in the Election</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
do not deny that directors&rsquo; decisions are not protected by the business judgment rule when they have a personal interest
in the decision. <I>Werbowsky v. Collomb</I>, 766 A.2d 123, 138 (Md. 2001); <I>see also</I> <I>Boland</I>, 31 A.3d at 548-49;
Hanks, <FONT STYLE="font-variant: small-caps">Maryland Corporation Law</FONT> &sect; 6.8. Incumbent directors &ldquo;whom are
seeking reelection . . . are obviously interested in the outcome of the election&rdquo; and they are therefore not protected by
the business judgment rule to the extent they make decisions involving the conduct of that election. <I>Aprahamian v. HBO &amp;
Co.</I>, 531 A.2d 1204, 1206 (Del. Ch. 1987).</FONT></P>

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


<!-- Field: Page; Sequence: 100; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
rely on a statement in <I>Werbowsky</I> that &ldquo;interest or dependence may not be found merely from the fact that directors
are paid for their services.&rdquo; Appellees&rsquo; Brief 43. However, that statement was made in the very different context
of considering whether the futility exception to the demand requirement applied to a stockholder derivative suit. <I>Werbowsky</I>,
766 A.2d at 139. A director would not necessarily be biased against a stockholder demand merely because the director receives
compensation. But the situation is different in the context of an election. As the <I>Aprahamian</I> court explained, a candidate
for office &ldquo;is likely to prefer to be elected rather than defeated&rdquo; and &ldquo;therefore has a personal interest in
the outcome of the election even if the interest is not financial and he seeks to serve from the best of motives.&rdquo; 531 A.2d
at 1206.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Here, the inherent
interest in being elected is compounded by a significant financial interest. All of the directors receive substantial compensation
of between $149,800 and $193,880 per year in cash and stock awards for their part-time service. (ROA.16-10672-2072)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Ms. Carter, the
Chair of Ashford Prime&rsquo;s Nominating Committee who played a pivotal role in the disqualification of the Sessa Candidates,
is particularly dependent on her compensation as an Ashford Prime director. In her deposition Ms. Carter ultimately conceded that
her total annual income from all sources might be less than $200,000. (ROA.16-10672.2184) Given her strong financial interest
in retaining her position on the board, her conduct in disqualifying the Sessa Candidates clearly is not protected by the business
judgment rule.</FONT></P>

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


<!-- Field: Page; Sequence: 101; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->14<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: -0.5in"><FONT STYLE="font-size: 10pt"><B>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sessa
Has Overcome the Business Judgment Rule with Evidence the Board Did Not Act on an Informed Basis</B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In its Opening
Brief, Sessa presented troubling evidence that the incumbent directors never actually made any formal decision to disqualify the
Sessa Candidates and that the decision was instead improperly made by Ashford Prime&rsquo;s management, Ms. Carter and outside
lawyers. <I>See </I>Opening Brief 43-46. In addition, despite being served with document requests calling for such information,
the Ashford Parties produced no board minutes, resolutions, written consents, or other documents reflecting any decision by the
board of directors. <I>See</I> Opening Brief 45-46 &amp; n.22.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
maintain that the Nominating Committee &ldquo;determined that the Sessa Candidates had not complied with the Bylaws and, therefore,
were ineligible to stand for election&rdquo; and that the Committee &ldquo;presented its findings to the full Board, which agreed
and declared the Sessa Candidates ineligible.&rdquo; Appellees&rsquo; Brief 15-16. For support, they cite the deposition testimony
of Ms. Carter. (ROA.16-10672.4433-35)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">But shockingly,
Ms. Carter actually testified that she did &ldquo;not recall if the board made any decision.&rdquo; (ROA.16-10672.4435) In addition,
Mr. McWilliams, Mr. Murphy and Mr. Bennett each testified that the board had not formally voted on whether to disqualify the Sessa
Candidates. <I>See </I>Opening Brief 43-45. In sum, three of the four directors who were deposed, including the Lead Director
and Chairman of the Board, testified that the board <I>never actually voted to disqualify the Sessa Candidates</I>, while the
Chair of the Nominating Committee could &ldquo;not recall.&rdquo;</FONT></P>

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


<!-- Field: Page; Sequence: 102; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->15<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Under the Ashford
Prime bylaws, the board can take action only by a majority vote. (ROA.16-10672.2218) The board&rsquo;s failure to even hold a
vote as required by the bylaws should preclude the application of the business judgment rule. <I>See Boland</I>, 31 A.3d at 548
(noting that the business judgment rule applies only &ldquo;if the majority of the board properly exercises its business judgment&rdquo;).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa also presented
evidence that the Ashford Prime board of directors never even looked at the Sessa Candidates&rsquo; questionnaires which were
purportedly found to be deficient. Opening Brief 44. The Ashford Parties respond only with a cavalier comment that the directors
who admitted they did not look at the questionnaires &ldquo;were not on the Board&rsquo;s Nominating and Governance Committee
tasked with evaluating the Sessa Candidates&rsquo; Nomination Materials.&rdquo; Appellees&rsquo; Brief 45. But that is tantamount
to an admission that the full board did not act on an informed basis<I>. See NCR Corp.</I>, 761 F. Supp. at 491-92 (board did
not act on an informed basis where &ldquo;information which was readily available&rdquo; was &ldquo;not presented to the outside
Directors by management, or if it was presented, was apparently not duly considered by the Board&rdquo;).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In the face of
this evidence, the Ashford Parties resort to fabricating factual findings by the district court. The Ashford Parties assert that
the district court found that the board acted &ldquo;with due care in its deliberations.&rdquo; Appellees&rsquo; Brief 44. However,
the district court made no such finding.</FONT></P>

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


<!-- Field: Page; Sequence: 103; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->16<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>III.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The District Court Committed
a Further Error of Law by Allowing the Incumbent Directors to Disqualify the Sessa Candidates Based on an Alleged Failure to Provide
Information That Is Not Required by the Bylaws</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The district
court&rsquo;s decision was expressly premised on the notion that the Sessa Candidates were required under the bylaws to &ldquo;&lsquo;describe
any plans or proposals&rsquo; that would result in a sale or transfer of material assets.&rdquo; (ROA.16-10672.4649, citing Schedule
13D, 17 C.F.R. &sect; 240.13d-101). Schedule 13D, which was cited by the district court, does require stockholders who hold more
than 5 percent of a publicly traded company&rsquo;s securities to make such disclosures. However, the disclosure requirements
of Schedule 13D are <B><I>not</I></B> incorporated into the bylaws. The bylaws only incorporate the disclosure requirements of
Regulation 14A, and there are no requirements to disclose such &ldquo;plans&rdquo; in Regulation 14A. (ROA.16-10672-2214)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">It was fundamentally
improper for the district court to import the disclosure requirements of Schedule 13D to do the opposite. <I>See JANA Master Fund,
Ltd. v. CNET Networks, Inc.</I>, 954 A.2d 335, 344 (Del. Ch. 2008) (advance notice bylaws are to be narrowly construed so as not
to interfere with stockholder voting rights).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Recognizing the
district court&rsquo;s fundamental error, the Ashford Parties now argue that &ldquo;Section 11(a)(3)(iv)(B) of the Bylaws requires
disclosure of plans, proposals and discussions about the Company.&rdquo; Appellees&rsquo; Brief 46. Section 11(a)(3)(iv)(B) actually
requires the nominating stockholder to disclose its &ldquo;investment strategy or objective&rdquo; and to provide &ldquo;a copy
of the prospectus, offering memorandum, or similar document, if any, provided to investors or potential investors in such stockholder.&rdquo;
(ROA.16-10672.102) Sessa provided this information by including its confidential offering memorandum in the nomination materials
delivered to the Company on January 15, 2016. (ROA.16-10672.3538-39)</FONT></P>

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


<!-- Field: Page; Sequence: 104; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->17<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>IV.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>There Is No Valid Basis
to Conclude That Sessa Had Undisclosed Plans It Refused to Disclose, as Sessa&rsquo;s Views Were Openly Communicated to the Ashford
Prime Board and its Stockholders</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In full compliance
with the obligations under Regulations 14D and 13D, Sessa made extensive public disclosures of its views regarding Ashford Prime,
including its views with regard to the possible sale of the Company or its assets.<SUP>2</SUP> For example, Sessa publicly announced
in a January 8, 2016 13D filing with the SEC that &ldquo;given the corporate governance and other issues . . . we now believe
that a sale of the Company is the preferred outcome of the strategic alternatives process.&rdquo; (ROA.16-10671.160) And in a
detailed presentation to Ashford Prime stockholders that was filed with the SEC on March 23, 2016, Sessa expressed its views regarding
the Company in great detail, including its intent to consider &ldquo;any strategic action . . . including asset sales,&rdquo;
and to &ldquo;[e]xplore all options to invalidate or renegotiate the termination fee.&rdquo; (ROA.16-10671.3643-86)</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>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>2
</SUP></FONT><FONT STYLE="color: Black">Between January 1 and June 14, 2016, Sessa made 11 Schedule 13D filings and 25 Section
14A filings with the SEC.&nbsp; Sessa&rsquo;s filings are publicly available on the SEC website, at: <U>https://www.sec.gov/cgi-bin/browse-edgar?CIK=0001618360&amp;action=getcompany</U>.</FONT></P>



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


<!-- Field: Page; Sequence: 105; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->18<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
do not dispute that they were well aware of these public disclosures. In fact, the Company attached Sessa&rsquo;s January 8, 2016
13D filing to its complaint in Ashford I (ROA.16-10671.151-161), and produced a copy of the March 23, 2016 investor presentation
in discovery. (ROA.16-10671.3643-86)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa also had
extensive oral and written discussions with Ashford Prime&rsquo;s incumbent board, in which Sessa candidly shared its views that
the Company give serious consideration to a sale of the Company, including a meeting with members of the board on January 5, and
a letter to them on January 7, 2016. (ROA.16-10672.4415, .4417-20) In fact, the Ashford Parties contend that Mr. Petry &ldquo;advised
them . . . of his plan&rdquo; in these discussions, and try to use them as evidence that Sessa had plans to sell the Company.<SUP>3
</SUP>Appellees&rsquo; Brief 41. But what these communications really show is that <I>Sessa&rsquo;s position on a sale of Ashford
Prime was no secret</I>. Indeed, the January 7 letter was publicly filed with the SEC as part of Sessa&rsquo;s January 8, 2016
13D filing.</FONT><SUP>4</SUP></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
argue this Court should affirm the district court&rsquo;s decision on the basis of its finding that &ldquo;the board could rationally
believe the Sessa Candidates had a plan they refused to disclose <I>on their questionnaires</I> and thus were ineligible.&rdquo;
Appellees&rsquo; Brief 42 (emphasis added). In other words, their position is that even if Sessa disclosed its putative plans
as described, the incumbent directors appropriately disqualified the Sessa Candidates for not including those same communications
in the Sessa&rsquo;s Candidates&rsquo; completed questionnaires on January 15, 2016.</FONT></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>3
                                         </SUP></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">The
                                         Ashford Parties take great liberties in describing the communications in their brief.
                                         A review of the materials cited will show that Mr. Petry never said he had a &ldquo;plan
                                         to force a hasty sale of the Company.&rdquo; Appellees&rsquo; Brief 41.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>4
</SUP></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; color: Black">To be clear, Sessa has never had any definitive
plans or proposals to sell the Company or its assets, merely the sort of tentative views that have squarely been held not to require
disclosure under Schedule 13D. <I>See </I>Opening Brief 47 (discussing cases). Sessa has nevertheless fully disclosed those views
in Schedule 13D filings.</FONT></P>



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


<!-- Field: Page; Sequence: 106; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->19<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">This is precisely
the sort of &ldquo;inequitable&rdquo; application of advance notice provisions Maryland and Delaware courts have made clear should
be struck down. <I>Shaker</I>, 2005 WL 914385, at *4; <I>Openwave Sys.<FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT>Inc. v. Harbinger Capital Partners Master Fund I, Ltd.</I>, 924 A.2d 228, 239 (Del. Ch. 2007) (&ldquo;[W]hen advance notice
bylaws unduly restrict the stockholder franchise or are applied inequitably, they will be struck down.&rdquo;); <I>Hubbard<FONT STYLE="font-family: Times New Roman, Times, Serif">
</FONT>v. Hollywood Park Realty Enters., Inc.</I>, 1991 WL 3151, at *7 (Del. Ch. Jan. 14, 1991) (same); <I>see also</I> 5 William
Meade Fletcher et al., <FONT STYLE="font-variant: small-caps">Fletcher Cyclopedia of the Law of Corporations</FONT> &sect; 2025
(Sept. 2015) (explaining that the right to elect directors is so fundamental that it should &ldquo;not be annulled for purely
technical reasons&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-size: 10pt"><B>V.</B></FONT></TD><TD><FONT STYLE="font-size: 10pt"><B>Sessa Has Not Waived its
                                         Right to Request a New Election</B></FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties&rsquo;
waiver arguments are entirely without merit. Sessa has not raised new issues on appeal. At the outset of the litigation, Sessa
sought an order requiring the board to approve the Sessa Candidates for purposes of the Proxy Penalty. Then, when the Company
revealed its plan to disqualify the Sessa Candidates, Sessa moved to expand the scope of the injunctive relief sought to include
an order that the Sessa Candidates be permitted to stand for election. (ROA.16-10671.2644-49) That motion was denied in the district
court&rsquo;s preliminary injunction decision (ROA.16-10671.4154 n.3; ROA.16-10672.4651 n.3), and all of the other issues raised
in this appeal were presented and briefed in connection with that motion and in the briefing on Sessa&rsquo;s preliminary injunction
motion. (ROA.16-10671.351-.880; .2644-720; .3252-634; .3707-.4095)</FONT></P>

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


<!-- Field: Page; Sequence: 107; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->20<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa has asked
for substantially the same relief throughout the course of this litigation &ndash; an order requiring Ashford Prime and its incumbent
directors to permit the Sessa Candidates to stand in a free and fair election so that the Ashford Prime stockholders can choose
the Company&rsquo;s directors, as they are entitled to do under Maryland law. MGCL &sect; 2-404(b)(1). Sessa&rsquo;s request for
relief has been adjusted only as necessitated by developments over time. Sessa initially sought prospective relief to ensure that
the election would be conducted. But after the district court entered its preliminary injunction, that became impossible and it
was entirely appropriate to then move this Court to stay the district court&rsquo;s order and postpone the annual meeting. After
that motion was denied and the Company held the meeting, it was necessary to request this Court to undo the tainted election and
order a new one. Opening Brief 56-57.</FONT></P>

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


<!-- Field: Page; Sequence: 108; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->21<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties&rsquo;
contention that this amounts to waiver was squarely rejected in <I>W. Dist. Council of Lumber Prod. &amp; Indus. Workers v. La.
Pac. Corp.</I>, 892 F.2d 1412, 1416 (9th Cir. 1989). In that case, the defendant corporation argued that the shareholder plaintiff&rsquo;s
appeal could not seek a new election because in the district court the plaintiff had &ldquo;sought only a preliminary injunction
enjoining [defendant] from voting any proxies,&rdquo; not rescission of the election. <I>Id</I>. Here, the election was not held
until after the appeal was commenced. Sessa &ldquo;could hardly be expected to request the rescission of an election that had
not occurred when its complaint was filed.&rdquo; <I>Id</I>.; <I>see also Kennecott Copper Corp. v. Curtiss-Wright Corp.</I>,
584 F.2d 1195, 1200-01 (2d Cir. 1978) (&ldquo;Equity demands . . . that the . . . annual meeting be voided in whole or in part
so as to permit a new election of directors&rdquo; where there was a &ldquo;strong likelihood . . . that the election results
were influenced by . . . the district court&rsquo;s election-eve decision.&rdquo;).<SUP></SUP></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Given the district
court&rsquo;s preliminary injunction decision, it would be futile to require Sessa to ask the district court for an order setting
aside the annual meeting. Doing so would merely delay the resolution of those issues, allowing the incumbent directors to continue
to remain in office unjustly. Indeed, this Court has already recognized the urgency of this appeal by granting Sessa&rsquo;s request
that it be expedited.</FONT><SUP>5</SUP></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"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>5
</SUP></FONT><FONT STYLE="color: Black">To the extent the Ashford Parties are complaining that Sessa did not first seek a stay
of the preliminary junction decision from the district court, their position is foreclosed by Rule 8, which expressly provides
that a party need not first seek relief in the district court where &ldquo;moving first in the district court would be impractical.&rdquo;
Fed. R. App. P. 8(a)(2)(A)(i) Fed. R. App. P. 8(a)(2)(A)(i). Because
the annual meeting was scheduled for June 10, 2016, Sessa had no time to first seek a stay in the district court. (Fifth Circuit
case no. 16-10671, ECF Nos. 513522110 &amp; 513527816)</FONT></P>



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


<!-- Field: Page; Sequence: 109; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->22<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">There is also
no merit to the Ashford Parties&rsquo; assertion that Sessa declined to ask the district court to stay the annual meeting as a
&ldquo;tactical matter.&rdquo; Appellees&rsquo; Brief 24. In making this argument, the Ashford Parties take the comments of Sessa&rsquo;s
counsel out of context. When the district court asked Sessa&rsquo;s counsel whether the annual meeting should be postponed, it
did so in the context of a proposal to postpone the annual meeting in order to allow for curative disclosures, specifically to
have the &ldquo;current proxies canceled and start over with fresh proxy statements.&rdquo; (ROA.16-10671.4200)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&ldquo;Neither
of the[ ] aims&rdquo; of the general waiver rule &ldquo;would be furthered by invoking waiver here.&rdquo; <I>Barefoot Architect,
Inc. v. Bunge</I>, 632 F.3d 822, 835 (3d Cir. 2011). The waiver rule &ldquo;serves two purposes: ensuring that the necessary evidentiary
development occurs in the trial court, and preventing surprise to the parties when a case is decided on some basis on which they
have not presented argument.&rdquo; <I>Id</I>. (citing <I>Hormel v. Helvering</I>, 312 U.S. 552, 556 (1941)). The parties sought
injunctive relief from the outset of this case, thoroughly briefed the issues, and developed an evidentiary record through discovery.<SUP>6</SUP></FONT></P>

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif; color: Black"><SUP>6
</SUP></FONT><FONT STYLE="color: Black">The cases cited by the Ashford Parties are all inapposite. For example, in <I>Peterson
v. Bell Helicopter Textron, Inc.</I>,<I> </I><FONT STYLE="font-weight: normal; font-style: normal">the plaintiff had never requested
any form of injunctive relief until after judgment was entered, thus severely prejudicing the defendant. 806 F.3d 335, 338-39
(5th Cir. 2015).</FONT></FONT></P>





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


<!-- Field: Page; Sequence: 110; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->23<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>VI.</B></FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>The Court Should Require
the Incumbent Directors to Approve the Sessa Candidates for Purposes of the Proxy Penalty and Beware the Ashford Parties&rsquo;
Efforts to Confuse the Issues</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In a move smacking
of desperation, the Ashford Parties attempt to confuse the Court on a critical issue. Under Maryland law and the Company&rsquo;s
bylaws, the stockholders have the exclusive right to elect the Company&rsquo;s directors, along with a corollary right to nominate
candidates for election. The incumbent directors have no right to approve or disapprove stockholder-nominated candidates and determine
who may stand for election. <I>See</I> Opening Brief 27-35. At pages 35-39 of their brief, the Ashford Parties attempt to create
the impression that they have such a right by confusing the issue with the separate approval rights the incumbent directors granted
themselves under the Third Amended Advisory Agreement (&ldquo;TAAA&rdquo;).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Under the TAAA,
the incumbent directors may &ldquo;approve&rdquo; candidates for the purposes of avoiding the contractual termination fee. But
the TAAA does not purport to allow incumbent directors to determine whether a stockholder-nominated candidate can stand for election,
nor could it. (ROA.16-10671.3295) It merely provides for a potential financial penalty (the &ldquo;Proxy Penalty&rdquo;) if stockholders
elect a majority of directors who have not been &ldquo;approved&rdquo; or &ldquo;recommended&rdquo; by the incumbent board. (<I>Id</I>.)
As such, the TAAA actually confirms that stockholders have the right to nominate and elect whomever they chose as the Company&rsquo;s
directors.</FONT></P>

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


<!-- Field: Page; Sequence: 111; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->24<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On the issue
of the Proxy Penalty, the Delaware Chancery Court&rsquo;s decision in <I>Kallick v. SandRidge Energy, Inc.</I>, 68 A.3d 242 (Del.
Ch. 2013) is controlling. The <I>Hills</I> decision cited by the Ashford Parties is not to the contrary, as it involved merely
severance packages for key employees and thus did not present the same potential consequences as the massive Proxy Penalty. <I>See
Hills Stores Co. v. Bozic</I>, 769 A.2d 88, 91-92 (Del. Ch. 2013); <I>SandRidge</I>, 68 A.3d at 262 (distinguishing <I>Hills</I>).
Furthermore, the <I>Hills</I> decision was premised on an implied covenant of good faith and fair dealing for the benefit of the
key employees. <I>See Hills Stores Co.</I>, 769 A.2d at 108. The TAAA is governed by Texas law, (16-10671.3302), which does not
recognize an implied duty of good faith and fair dealing in contracts except in limited circumstances not applicable here. <I>See
Williamson-Dickie Mgf. Co. v. Apparel Ltd.</I>, 2015 U.S. Dist. LEXIS 75227, *5-*7 (N.D. Tex. 2015). Thus, Ashford Prime owes
its advisors no duty to vet, evaluate or pass judgment on candidates before &ldquo;approving&rdquo; them for purposes of the TAAA.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>VII.</B></FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>The Alternative Grounds
for Affirmance Urged by the Ashford Parties Are Without Merit and Should Not Be Addressed by This Court in the First Instance</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
ask this Court to affirm the district court&rsquo;s decision on the basis of a litany of alleged violations of the federal securities
laws and the bylaws, none of which were addressed by the district court below. The Court should decline to reach issues. <I>See
United States v. Jenkins</I>, 974 F.2d 32, 34 (5th Cir. 1992) (declining to &ldquo;consider all the wide ranging issues&rdquo;
issues raised by a party in connection with an interlocutory appeal). In any event:</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa and Livingston
did not form an undisclosed group for the purpose of purchasing Ashford Prime stock. Appellees&rsquo; Brief 48-49. As explained
above, the evidence establishes that Livingston&rsquo;s nominal purchase of Ashford Prime stock was done independently after he
was put forward by Sessa as a board candidate.</FONT></P>

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


<!-- Field: Page; Sequence: 112; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->25<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa did not
violate Schedule 13D by failing to disclose its &ldquo;plans or proposals regarding the sale of Ashford Prime and its assets.&rdquo;
Appellees&rsquo; Brief 49-50. As explained previously, Sessa had no definitive plans or proposals, but nevertheless filed a January
8, 2016, Schedule 13D disclosing that it viewed a sale as the preferred outcome&rdquo; of the Company&rsquo;s strategic review.&rdquo;
(ROA16-10671.160)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">For the same
reasons, Sessa did not violate<I> </I>Item 5(b)(1)(xii) of Schedule 14(a) by failing to &ldquo;disclose their plans&rdquo; and
any &ldquo;attendant risks.&rdquo; Appellees&rsquo; Brief 50. Sessa&rsquo;s SEC&rsquo;s filings are replete with discussions of
the risks associated with the Proxy Penalty. Moreover, Item 5(b)(1)(xii) does not even require the disclosure of &ldquo;plans&rdquo;
and &ldquo;attendant risks.&rdquo; 17 C.F.R. &sect; 240.14a-101, Item 5(b)(1)(xii).</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Sessa did not
violate the bylaws &ldquo;by failing to disclose in their Nomination Materials the significant consequences and economic risks&rdquo;
attending the election of the Sessa Candidates. Appellees&rsquo; Brief 51. The Company and the incumbent directors were well aware
of the Proxy Penalty, which created those risks. Regardless, Sections 11(a)(3)(iv)(B) and 11(a)(4) of the bylaws do not require
disclosure of &ldquo;significant consequences&rdquo; or &ldquo;economic risks&rdquo; if a director candidate is elected. (ROA.16-10672.102-03)</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Finally, Sessa
and Livingston did not violate by the bylaws by failing to disclose his purchase of the Company&rsquo;s stock. Appellees&rsquo;
Brief 51-52. Livingston purchased the stock after his nomination materials were submitted, and the bylaws require updates only
in the event of a &ldquo;material&rdquo; change. (ROA.16-10672.2214) Livingston&rsquo;s purchase of less than .000016% of Ashford
Prime&rsquo;s outstanding common stock was hardly material. Moreover, Sessa was uninvolved and unaware of the purchase when it
was made on January 19, but disclosed the purchase in an SEC filing on February 4, 2016, after learning of it. (ROA.16-10672.2627)</FONT></P>

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


<!-- Field: Page; Sequence: 113; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->26<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 0in"></TD><TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt"><B>VIII.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><B>The Equities Sharply
Favor Sessa</B></FONT></TD>
</TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The equities
in this case sharply favor Sessa. Under Maryland law, stockholders have the exclusive right to elect a corporation&rsquo;s directors.
<FONT STYLE="font-variant: small-caps">MGCL</FONT> &sect; 2-404(b)(1). And the incumbent directors have a duty to ensure that
elections are conducted with scrupulous fairness. <I>Shaker</I>,<I> </I>2005 WL 914385, *5-6<I> </I>(citing <I>Blasius Indus.,
Inc., </I>564 A.2d at 659-60). By disqualifying all of the Sessa Candidates, the incumbent directors effectively re-elected themselves
and deprived the stockholders of their right to choose the Company&rsquo;s directors.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Allowing the
Sessa Candidates to participate in a fair election would obviously not harm stockholders or Ashford Prime. Rather, it would serve
the interests of the stockholders, and, since Ashford Prime is a public company, the public.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The results of
the stockholder vote that took place on June 10, 2016 eliminate any doubt that the equities favor Sessa. Foreclosed from voting
for the Sessa Candidates by the district court&rsquo;s order, the stockholders expressed their disapproval of the incumbent director&rsquo;s
actions and desire for change in the boardroom by voting 2-1 to &ldquo;withhold&rdquo; their votes from the incumbent directors.</FONT></P>

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


<!-- Field: Page; Sequence: 114; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->27<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The Ashford Parties
argue that but for the district court&rsquo;s order, stockholders would have been irreparably harmed by casting &ldquo;meaningless
votes for invalid nominees&rdquo; (Appellees&rsquo; Brief 53), and that the public interest was served by reducing &ldquo;shareholder
confusion at the annual meeting&rdquo; (Appellees&rsquo; Brief 55). But in the ultimate irony, the district court&rsquo;s order
precluded the stockholders from having any candidates other that the incumbent directors, effectively making all of the stockholders&rsquo;
votes meaningless.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">In this proxy
contest, the incumbent directors lobbied the stockholders vigorously to reject the Sessa Candidates, issuing press releases and
making SEC filings raising the same complaints with the Sessa Candidates and their purported plans to sell the Company that they
have complained of in this litigation. (<I>See e.g.</I>, ROA.16-10671.862) The district court should have merely required the
incumbent directors to conduct a free and fair election and allowed the stockholders to decide who to elect.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">For the foregoing
reasons, Sessa respectfully submits that the district court&rsquo;s decision should be reversed, and that the Court should enter
the order requested in its Opening Brief.</FONT></P>

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


<!-- Field: Page; Sequence: 115; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->28<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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: 48%; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Date:&nbsp;&nbsp;July 19,
    2016</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 51%; padding-left: 12.6pt; text-decoration: none; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Respectfully
    submitted,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">s/ <I>Glen
    E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">John
        D. Byars</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">john.byars@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Courthouse Place</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">54 W. Hubbard Street, Suite
        300</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Chicago, Illinois 60654</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (312) 494-4400</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (312) 494-4440</FONT></P></TD>
    <TD STYLE="padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers, Lead Counsel</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">glen.summers@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Joseph
        W. Doman</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">joe.doman@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (303) 592-3140</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>Attorneys for Appellants</I></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 116; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->29<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">The undersigned
certifies that this brief complies with the type-volume limitations required under Fed. R. App. P. 32(a)(7)(B). Exclusive of the
portions of the brief exempted under Fed. R. App. P. 32(a)(7)(B)(iii), this brief consists of 6,985 words as measured by Microsoft
Word 2013 version 15.0.4823.1001. This brief complies with the typeface requirements of Fed. R. App. P. 32(a)(5) and the type
style requirements of Fed. R. App. P. 32(a)(6) because it has been prepared in Garamond, a proportionally spaced typeface using
Microsoft Word 2013 in font size 14.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">s/
    <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers, Lead Counsel</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">glen.summers@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar &amp; Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (303) 592-3140</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>Attorneys for Appellants
        </I></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>


<!-- Field: Page; Sequence: 117; Value: 1 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->30<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">I
certify that on July 19, 2016, the foregoing Brief was filed electronically using the Court&rsquo;s CM/ECF system, which will
give notice of the filing to counsel.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></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%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; padding-left: 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">s/
    <I>Glen E. Summers</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers, Lead Counsel</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">glen.summers@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">Bartlit
        Beck Herman Palenchar</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt; font-variant: small-caps">&amp;
        Scott</FONT><FONT STYLE="font-size: 10pt"> LLP</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (303) 592-3140</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><I>Attorneys for Appellants</I></FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>


<!-- Field: Page; Sequence: 118; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->31<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>v446127_ex99-3.htm
<DESCRIPTION>EXHIBIT 3
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><B>Exhibit 3</B></P>

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

<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: 66%; border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">ASHFORD INC. and ASHFORD HOSPITALITY 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 0 0 0.5in; text-indent: -0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiffs,</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">&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, <BR>
SESSA CAPITAL
        IM, L.P., SESSA CAPITAL IM GP, LLC, <BR>
JOHN E. PETRY, PHILIP B. LIVINGSTON, LAWRENCE <BR>
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 0 0 0.5in; text-indent: -0.5in">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defendants.</P></TD>
    <TD STYLE="width: 4%; text-align: center">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">)</P></TD>
    <TD STYLE="width: 30%; text-align: center; vertical-align: middle">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;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">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><B>ORAL ARGUMENT REQUESTED</B></P></TD></TR>
</TABLE>
<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>REPLY IN SUPPORT OF DEFENDANTS&rsquo; MOTION
TO DISMISS PLAINTIFFS&rsquo;<BR>
 <U>FIRST AMENDED 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>


<!-- Field: Page; Sequence: 1 -->
    <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: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Defendants Sessa Capital (Master), L.P., Sessa
Capital, GP, LLC, Sessa Capital IM, L.P., and Sessa Capital IM GP, LLC (collectively &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;)
hereby submit this Reply in Support of their Motion to Dismiss the first amended complaint filed by Plaintiffs Ashford Inc. and
Ashford Hospitality Advisors LLC (&ldquo;Ashford LLC&rdquo;).</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">&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">Plaintiffs do not dispute, and have thus effectively
conceded, that the Termination Fee is an unenforceable penalty under Texas law. They have consistently hidden the data necessary
to calculate the Termination Fee, instead merely alleging that the Termination Fee, &ldquo;if calculated today, would amount to
hundreds of millions of dollars.&rdquo; (ECF No. 2-20, Am. Compl. &para; 2) Under the first prong of the Termination Fee formula,
the Termination Fee is calculated to be <B><I>at least</I></B> Plaintiffs&rsquo; yearly Adjusted EBTIDA from providing services
to Ashford Prime multiplied by 22. Under the second and third prongs of the formula, the Termination Fee may be much higher. Moreover,
Ashford Prime would have to pay the exorbitant fee regardless of whether the Termination Fee is triggered with nine years remaining
for the Third Amended Advisory Agreement (&ldquo;TAAA&rdquo;) term or a single day. Far from being &ldquo;a reasonable forecast
of just compensation,&rdquo; the Termination Fee is an illegal penalty, and a blatant one. <I>Phillips v. Phillips</I>,<I> </I>820
S.W.2d 785, 788 (Tex. 1991). This Court can and should dismiss Plaintiffs&rsquo; request for declaratory relief on that basis.</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">Instead, Plaintiffs argue that their claims
survive Defendants&rsquo; motion dismiss because they: (1) have not asserted causes of action for violations of Sections 13(d)
and 14(a) of the Securities Exchange Act of 1934 (the &ldquo;Act&rdquo;), (2) mistakenly asked for a declaratory judgment that
the Termination Fee is valid and enforceable, and (3) adequately pleaded claims for tortious interference. (ECF No. 22, Opp&rsquo;n
11, 12). Each of their arguments is without merit.</P>

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


<!-- Field: Page; Sequence: 2 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->1<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: center; text-indent: -0.5in">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>The Termination Fee Is an Illegal 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">Plaintiffs do not address Defendants&rsquo;
arguments that the Termination Fee is an illegal and unenforceable penalty under Texas law. They do not dispute that the harm for
which the Termination Fee supposedly compensates is not &ldquo;incapable or difficult of estimation,&rdquo; and it is not &ldquo;a
reasonable forecast of just compensation.&rdquo; (ECF No. 17, Br. 13, quoting <I>Phillips</I>,<I> </I>820 S.W.2d at 788) Nor do
they dispute that Ashford Prime must pay the Termination Fee even if it exceeds actual damages and that the Termination Fee is
at least equal to 22 times Plaintiffs&rsquo; Adjusted EBITDA from services to Ashford Prime (and perhaps more) regardless of whether
the Termination Fee is triggered with nine years remaining in the TAAA&rsquo;s term or one day. (Br. 14-15) Instead, they argue
that &ldquo;[i]nadvertently, references to a declaratory judgment action and a Termination Fee had been carried over and were mistakenly
not removed from the prayer of the Amended Petition&rdquo; and that Defendants are improperly asserting an affirmative defense
in their motion to dismiss. (Opp&rsquo;n 6-7 n.1) Their arguments are without merit.</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 seek specific declaratory relief
from this Court, including an order that&nbsp;the Termination Fee Provision is unambiguous, valid, and enforceable; and Ashford
Inc. has the right and is entitled to the Termination Fee upon a &ldquo;Change of Control of the Company.&rdquo; (Am. Compl., Prayer
(d)) Plaintiffs argue that the inclusion of this specific request for relief is &ldquo;inadvertent&rdquo; and a &ldquo;scrivener&rsquo;s
error.&rdquo; (Opp&rsquo;n 22 n.6; 7-8 n.3) Yet it remains in their amended complaint and Plaintiffs never made any effort to remove
it. Furthermore, their argument is belied by their factual allegations. In support of this prayer for relief, Plaintiffs made multiple
allegations concerning alleged actions and statements by Defendants that they say question the validity of the Termination Fee.
(<I>See </I>Am. Compl. &para;&para; 4, 7, 45, 52) If Defendants had not challenged the validity of the Termination Fee, Plaintiffs
likely would have continued to pursue the declaratory relief.</P>

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


<!-- Field: Page; Sequence: 3 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->2<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs also argue that Defendants&rsquo;
illegality argument is an affirmative defense that cannot be asserted in a motion to dismiss. While illegality of a penalty is
an affirmative defense and affirmative defenses are usually not considered on motions to dismiss, a court may still properly dismiss
a case on the basis of an affirmative defenses when the Court has all facts necessary to make a decision. <I>See Brownmark Films,
LLC v. Comedy Partners</I>, 682 F.3d 687, 690 (7th Cir. 2012). This is such a case. The Termination Fee is set forth in Section
12 of the TAAA, which Plaintiffs attached to their amended complaint as Exhibit 1. The only other factual support that Defendants
rely upon in their illegality argument are factual allegations that Plaintiffs made in their amended complaint.</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 chose not to dispute Defendants&rsquo;
substantive arguments. Instead, they asserted meritless non-substantive arguments. This Court can and should declare the Termination
Fee an illegal and unenforceable penalty and dismiss Plaintiffs&rsquo; claims on that basis.</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>Plaintiffs Are Asserting Claims for Alleged Violations of Sections 13(d) and 14(a)</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs argue that they have not asserted
causes of action for violations of Sections 13(d) and 14(a), and that they have instead merely made &ldquo;innocuous&rdquo; and
&ldquo;loose&rdquo; references to Sections 13(d) and 14(a), which are &ldquo;illustrative of the alleged conduct&rdquo; supporting
their state-law claims. (Opp&rsquo;n 18-19) Plaintiffs also maintain that they can &ldquo;prevail on each of their claims without
proof of any wrongdoing under federal law.&rdquo; (Opp&rsquo;n 19) Each of these positions is wrong.</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 their response, Plaintiffs argue that their
state-law claims &ldquo;consist of Defendants repeatedly refusing to abide by Ashford Prime&rsquo;s Bylaws, attempting to insert
themselves into the Advisory Agreement and onto Ashford Prime&rsquo;s Board of Directors, as well as willfully and intentionally
omitting, failing to disclose, and providing misleading public and private statements.&rdquo; (Opp&rsquo;n 19-20) Tellingly, Plaintiffs
provide no citations to their amended complaint for any of these assertions. An examination of the amended complaint reveals that
federal securities law violations are the only alleged<I> </I>actions upon which Plaintiffs are basing their purported tortious
interference claims. (<I>See </I>Am. Compl. &para; 67 (&ldquo;Defendants tortuously interfered with the Advisory Agreement by intentionally
and willfully omitting material facts and failing to disclose information. Defendants&rsquo; unlawful omissions and failures to
disclose in connection with proxy solicitations, violated disclosure requirements under the Security Exchange Act of 1934.&rdquo;);
Am. Compl. &para; 73 &amp; n.10 (&ldquo;the following materials omissions/conduct by Sessa and the Purported Nominees were willful
and/or intentional and proximately resulted in damages . . . [t]he omissions described in this list of non-disclosures are unlawful
when any person solicits proxies in violation of SEC rules/regulations that specifically require disclosure of omitted information.&rdquo;);
Am. Compl. &para; 74 (Defendants&rsquo; &ldquo;above-independently unlawful, material omissions and failures to disclose&rdquo;).)</P>

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


<!-- Field: Page; Sequence: 4 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->3<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">In fact, the only &ldquo;unlawful means&rdquo;
Plaintiffs allege underlie their civil conspiracy claim is &ldquo;illegal proxy solicitations and failure to disclose all material
information under Sections 13(d) and 14(a) of the Act.&rdquo; (Am. Compl. &para; 83) Plaintiffs&rsquo; allegations of violations
of federal securities laws are not &ldquo;innocuous&rdquo; or &ldquo;loose&rdquo; references or mere illustrations of alleged conduct
supporting state law claims. They are the very heart of Plaintiffs&rsquo; tortious interference and civil conspiracy allegations.</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 addition, Plaintiffs are incorrect that they
&ldquo;can prevail on each of their claims without proof of any wrongdoing under federal law.&rdquo; To establish a claim for tortious
interference with prospective business relations, a plaintiff must establish that &ldquo;the defendant&rsquo;s conduct was independently
tortious or wrongful.&rdquo; <I>Wal-Mart Stores, Inc. v. Sturges</I>, 52 S.W.3d 711, 726 (Tex. 2001).</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"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
paragraph 73 of their amended complaint, Plaintiffs allege that &ldquo;the following material omissions/conduct by Sessa and the
Purported Nominees were willful and/or intentional and proximately resulted in damages&rdquo; and then provide their list of the
seven supposed material omissions upon which they base their tortious interference claims. The only way in which they allege these
supposed omissions are &ldquo;independently tortious or wrongful&rdquo; is as violations of the federal securities laws, specifically
Sections 13(d) and 14(a) of the Act. (Am. Compl. &para;&para; 67, 73) As they admit in footnote 10 to paragraph 73 of their amended
complaint, these &ldquo;omissions&rdquo; are only unlawful if federal securities laws &ldquo;specifically require disclosure
of omitted information&rdquo; or if Defendants omitted &ldquo;any material fact necessary in order to make the other statements
therein [in Defendants&rsquo; proxy statement] not false or misleading.&rdquo; Plaintiffs cannot maintain their cause of action
for tortious interference with prospective business relations without proving that Defendants violated Sections 13(d) and 14(a)
of the Act.</FONT></P>

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


<!-- Field: Page; Sequence: 5 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->4<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Furthermore, an &ldquo;actionable civil conspiracy
is a combination by &lsquo;two or more persons to accomplish an unlawful purpose or to accomplish a lawful purpose by unlawful
means.&rsquo;&rdquo; <I>In re Lipsky</I>, 411 S.W.3d 530, 549 (Tex. App. 2013) (citation omitted). The only &ldquo;unlawful means&rdquo;
Plaintiffs have alleged are &ldquo;illegal proxy solicitations and failure to disclose all material information under sections
13(d) and 14(a) of the Act.&rdquo; (Am. Compl. &para; 83) They must therefore prove that Defendants actually violated Sections
13(d) and 14(a) in order to sustain their civil conspiracy claim.</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">None of the cases that Plaintiffs cite in support
of their positions are like this case, because none involves the assertion of purported causes of action requiring Defendants to
prove violations of federal securities laws. <I>See, e.g., Howery v. Allstate Ins. Co.</I>, 243 F.3d 912, 918 (5th Cir. 2001) (&ldquo;Since
no federal right is an element of Howery&rsquo;s state claim, no federal right needs to be interpreted.&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">Furthermore, Ashford I and Ashford II, which
are both pending before this Court, concern substantially identical claims of alleged violations of Sections 13(d) and 14(a) of
the Act. Notably, decisions in this case and in Ashford I and Ashford II are made by the same individuals; management of Ashford
Prime and Plaintiffs are identical, including general counsel, David Brooks, and chief executive officer, Monty Bennett. (713 ECF
No. 72, App. 34, Ashford Inc. 13-D dated Sept. 17, 2015 (Bennett); 1566 ECF No. 2-20 at 82-83, Am. Compl. Ex. 1, signature blocks
(Brooks)) This fact and the similarity of the claims in this case and in Ashford I and Ashford II suggest extensive coordination
among Ashford Prime and Plaintiffs, creating the unmistakable suggestion that this is an elaborate game of forum shopping, in which
Plaintiffs seek to pursue substantially the same federal claims in three separate actions.</P>

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


<!-- Field: Page; Sequence: 6 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->5<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&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>Plaintiffs Have Not Alleged Facts Sufficient to Support Tortious Interference Claims</TD></TR></TABLE>

<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: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A.</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Plaintiffs
                                         Do Not Dispute They Have Not Alleged the Existence of a Contract</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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. v. Brady</I>,<I>
</I>811 S.W.2d 931, 939 (Tex. 1991). Plaintiffs do not address any of Defendants&rsquo; arguments that they have not alleged the
existence of an actual contract subject to interference. (Br. 20-21) They do not dispute that they have no obligations under Section
16 of the TAAA, the portion of the TAAA that underlies their claim. (Br. 21, citing Am. Compl. &para; 71) They do not dispute that
Section 16 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. (Br. 21, citing Am. Compl., Ex. 1 &sect; 16) And they
do not dispute that Section 16 makes no mention of Ashford Inc. acquiring Project Companies, much less any obligation that Ashford
Inc. acquire Project Companies. (<I>Id.</I>)<I> </I> The court should dismiss this claim with prejudice.</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: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">B.</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Plaintiffs
                                         Do Not Dispute They Have Not Alleged a Reasonable Probability They Would Have Entered
                                         Into a Business Relationship</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">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>Anderton v. Cawley</I>, 378 S.W.3d 38, 59 (Tex. App. 2012). Plaintiffs do not address Defendants&rsquo;
arguments that they have not done so. They do not dispute that they have failed to provide any detail about supposed prospective
agreements and they do not allege that those agreements have been discussed, proposed or considered by Ashford Prime. (Br. 24)
They do not dispute that their claim is based on the entirely speculative assertion that they &ldquo;will necessarily and probably
enter into&rdquo; an extension of the TAAA in 2025. (<I>Id.</I>, citing Am. Compl. &para; 76) And they do not dispute that on the
contrary, they have alleged that they are &ldquo;likely to enter&rdquo; such an agreement despite Defendants&rsquo; alleged interference,
which is inconsistent with the requirement that Defendants&rsquo; supposed interference prevent Plaintiffs from entering into the
prospective agreement. (<I>Id.</I>)<I> </I> The court should dismiss this claim with prejudice.</P>

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


<!-- Field: Page; Sequence: 7 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->6<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&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: 0.5in"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">C.</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Plaintiffs
                                         Have Not Alleged Interference</FONT></TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs argue they have sufficiently pleaded
interference under the applicable standards of Federal Rule of Civil Procedure 8(a)(2), which requires only &ldquo;a short and
plain statement of the claim showing that the pleader is entitled to relief.&rdquo; (Opp&rsquo;n 26) But to survive a motion to
dismiss, a complaint must contain sufficient factual matter, accepted as true, that &ldquo;allows the court to draw the reasonable
inference that the defendant is liable for the misconduct alleged.&rdquo; <I>Ashcroft v. Iqbal</I>, 556 U.S. 662, 678 (2009) (quoting
<I>Bell Atl. Corp. v. Twombly</I>, 550 U.S. 544, 556, 570 (2007)).</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 Defendants&rsquo; explained in their opening
brief (Brief 17-20), Plaintiffs have not alleged facts that give rise to a reasonable inference of any interference because the
sort of attenuated &ldquo;interference&rdquo; they allege is insufficient to support Plaintiffs&rsquo; purported tortious interference
claims. <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. 2004) (finding a complicated
linkage of inferences insufficient to support a claim of tortious interference). Plaintiffs try to distinguish the <I>Concorde
Funds </I>case (but not the <I>COC Services</I> case) by arguing that it did not concern tortious interference claims, but rather
fraud claims governed by Rule 9(b) pleading standards, and that the court &ldquo;expressly held that the plaintiff&rsquo;s claims
were <I>not </I>based upon &lsquo;a cause of action for tortious interference when a defendant hinders its performance of a contract,
rendering it impossible or more difficult.&rsquo;&rdquo; (Opp&rsquo;n 26-27, emphasis in original). This is highly misleading.
<I>Concorde Funds </I>concerned both fraud and tortious interference claims. <I>See Concorde Funds, Inc.</I>, 2006 WL 522466, *1
(&ldquo;Specifically, plaintiff alleges four causes of action: (1) fraud; (2) tortious interference with existing contracts; (3)
promissory estoppel; and (4) civil conspiracy.&rdquo;). And the court dismissed the plaintiff&rsquo;s tortious interference claim
because &ldquo;the defendants did not in any way hinder performance of the plaintiff&rsquo;s contracts with its investors;&rdquo;
it did not hold that the case did not concern a tortious interference claim. <I>Id</I>. at *7. Plaintiffs do not otherwise address
this argument beyond repeating the same conclusory and tortured allegations of &ldquo;hindrance&rdquo; as contained in their amended
complaint. (Opp&rsquo;n 27-28)</P>

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


<!-- Field: Page; Sequence: 8 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->7<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs assert that they have pleaded that
Defendants acted with requisite intent by alleging that Defendants&rsquo; supposed violations of Sections 13(d) and 14(a) show
Defendants &ldquo;had a conscious desire&rdquo; to prevent Plaintiffs from obtaining financing in order to provide Key Money Investments.
(Opp&rsquo;n 28, citing Am. Compl. &para; 78) But they do not address Defendants&rsquo; argument that this conclusory allegation
does not establish that Defendants intended or believed that their supposed violations of Sections 13(d) and 14(a) would &ldquo;negatively
impact&rdquo; Plaintiffs&rsquo; ability to obtain financing, which is what Plaintiffs must establish in order to plead intent.
(Br. 21-22, 24); <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)). And they do not address Defendants&rsquo; argument that it is implausible that Defendants
intended or believed that their supposed violations of Sections 13(d) and 14(a) would depress the stock prices of Ashford Prime
and Ashford Inc., particularly as Sessa owned 8.2% of the stock of Ashford Prime. (Br. 18-19).</P>

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


<!-- Field: Page; Sequence: 9 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->8<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Finally, Plaintiffs assert that they do not
have to identify the &ldquo;dozens&rdquo; of supposed lenders whom they supposedly approached for loans. (Opp&rsquo;n 29 n.11)
This misses the point of Defendants&rsquo; argument, which is that Plaintiffs have failed to allege facts sufficient to draw a
reasonable inference of interference, such as the identity of the supposedly &ldquo;dozens&rdquo; of lenders or that Defendants
knew Plaintiffs were approaching them, that Defendants actually contacted them, or that Defendants even knew that Plaintiffs had
an agreement to provide Key Money to Ashford Prime. (Br. 20-24) And each of the cases Plaintiffs cite in support of their argument
is distinguishable because plaintiffs alleged that defendants had intentional and directly interfering contact with the third parties.
<I>See In re Burzynski</I>, 989 F.3d 733, 739 (5th Cir. 1993) (alleging defendants sent letters to named and unnamed insurers for
the purposes of interfering with plaintiffs&rsquo; prospective relationships with them); <I>Southwest Airlines Co. v. Farechase,
Inc.</I>, 318 F. Supp. 2d 435, 442 (N.D. Tex. 2004) (alleging defendant interfered with plaintiff&rsquo;s relationship with prospective
customers when prospective customers used defendant&rsquo;s ticket purchasing technology to purchase plaintiff&rsquo;s airline
tickets); <I>Star Tobacco, Inc. v. Darilek</I>, 298 F. Supp. 2d 436, 449-450 (E.D. Tex. 2003) (alleging counterclaim defendants
interfered with counterclaim plaintiffs&rsquo; business by slandering them). If anything, these cases demonstrate that Plaintiffs
must allege intentional and direct interference, not a highly attenuated and implausible chain of events, to sustain tortious interference
claims.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0in">&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>Plaintiffs&rsquo; Miscellaneous Non-Substantive Arguments Are Without Merit</TD></TR></TABLE>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs argue that Defendants have improperly
&ldquo;proffer[ed] the SEC filings contained in their Appendix and referenced in their Motion to Dismiss . . . for the &lsquo;truth
of their contents[.]&rsquo;&rdquo; (Opp&rsquo;n 10) But that argument is an odd one for Plaintiffs to make. To start, all of the
SEC filings references in Defendants&rsquo; motion to dismiss were filed by Plaintiff Ashford Inc. or its affiliates Ashford Prime
and Ashford Hospitality Trust. (Br. 3-9) Surely, Plaintiffs do not mean to call into question the truthfulness of their own SEC
filings. Even more fundamentally, the referenced SEC filings concern such non-controversial topics as Ashford Prime and Ashford
Inc. having both been spun off by Ashford Hospitality Trust, Inc. (Br. 3, citing Ashford Trust&rsquo;s 2014 10-K), Monty Bennett&rsquo;s
role as the CEO and Chairman of Ashford Prime, Ashford Inc. and Ashford Trust (<I>Id</I>.,<I> </I>citing Ashford Inc.&rsquo;s 13-D
dated Sept. 17, 2015), and Bennett&rsquo;s ownership stakes in Ashford Prime and Ashford Inc. (<I>Id</I>. at 3-4, citing Ashford
Prime&rsquo;s 14-A dated Apr. 17, 2015). Defendants cited those SEC filings in the factual background section of their motion.
Defendants&rsquo; substantive arguments regarding Plaintiff&rsquo;s failure to plead their claims as a matter of law simply do
not rely on the truthfulness of the statements contained within Plaintiffs&rsquo; own SEC filings.<FONT STYLE="font-size: 10pt"><SUP>1</SUP></FONT>
Indeed, Plaintiffs do not point to one of Defendants&rsquo; arguments that impermissibly rely on the cited SEC filings.</P>

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 0; margin-bottom: 0"><DIV STYLE="font-size: 1pt; border-top: Black 1pt solid; width: 25%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1
</SUP></FONT>Defendants&rsquo; citation to Ashford Prime&rsquo;s Feb. 4, 2016, 14-A (Brief 22) for the proposition that Sessa
owns 8.2% of Ashford Prime stock was wholly unnecessary given that Plaintiffs themselves have alleged that Sessa owns 8.2% of
Ashford Prime. (Am. Compl. &para; 39) Thus, Defendants point remains unaffected by the citation: it is simply implausible to infer
that Sessa would willingly injure itself by depressing the price of Ashford Prime&rsquo;s shares because Sessa owns nearly 10%
of those shares.&nbsp;&nbsp;</P>


<!-- Field: Page; Sequence: 10 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->9<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">Plaintiffs are also incorrect that the Fifth
Circuit has &ldquo;expressly limited its adoption of a rule regarding the consideration of SEC filings to cases involving securities
fraud actions.&rdquo; (Opp&rsquo;n 9) In <I>Kopp v. Klein</I>, the Fifth Circuit stated that it &ldquo;may also consider&rdquo;
SEC filings when during its review of the district court&rsquo;s dismissal of breach-of-fiduciary, non-securities claims. 722 F.3d
327, 333 (5th Cir. 2013), <I>cert. granted, judgment vacated on other grounds</I>, 134 S. Ct. 2900 (2014) (citing <I>Lovelace v.
Software Spectrum Inc.</I>, 78 F.3d 1015, 1018 (5th Cir.1996)).</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 also repeatedly assert that Defendants&rsquo;
motion to dismiss is actually a motion for summary judgment. (Opp&rsquo;n 12, 22 n.7, 25, 29 n.12) Their only support for this
assertion is that Defendants referred to materials outside of Plaintiffs&rsquo; complaint. While Defendants&rsquo; referrals to
these materials are proper, for the reasons discussed above, they are unnecessary for Defendants to obtain a dismissal pursuant
to Rule 12(b)(6).</P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-align: center">CONCLUSION</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, Sessa respectfully
requests this Court to dismiss Plaintiffs&rsquo; amended complaint with prejudice.</P>

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


<!-- Field: Page; Sequence: 11 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->10<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-indent: 0.5in">&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: August 2, 2016</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt"><B>SKIERMONT DERBY LLP</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt"><I>s/ Paul J. Skiermont</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD>
    <TD STYLE="width: 50%"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Paul J. Skiermont</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Texas State Bar No. 24033073</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Email: pskiermont@skiermontderby.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Eliot J. Walker</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Texas State Bar No. 24058165</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Email: ewalker@skiermontderby.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Shellie Stephens</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Texas State Bar No. 24079398</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Email: sstephens@skiermontderby.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">2200 Ross Ave., Suite 4800W</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Dallas, Texas 75201</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No.: (214) 978-6600</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (214) 978-6601</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Of Counsel:</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt"><B>BARTLIT
        BECK HERMAN PALENCHAR &amp; SCOTT LLP</B></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Glen
        E. Summers (<I>Pro Hac Vice)</I></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Email:
        glen.summers@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Joseph
        Doman (<I>Pro Hac Vice)</I></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Email: joe.doman@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">1899
        Wynkoop Street, 8th Floor</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Denver,
        Colorado 80202</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Telephone
        No. (303) 592-3100</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">Facsimile
        No.: (303) 592-3140</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">John
        D. Byars (<I>Pro Hac Vice)</I></FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Email: john.byars@bartlit-beck.com</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Courthouse Place</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">54 W. Hubbard St., Suite
        300</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Chicago, Illinois 60654</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Telephone No. (312) 494-4400</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt">Facsimile No.: (312) 494-4440</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 12.6pt; text-indent: -12.6pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><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></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>


<!-- Field: Page; Sequence: 12 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->11<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></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: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>CERTIFICATE OF SERVICE</U></B></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 August 2, 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>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 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%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 50%; border-bottom: Black 1pt solid; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>s/ Paul J. Skiermont</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Paul J. Skiermont</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 4.5pt">&nbsp;</P>


<!-- Field: Page; Sequence: 13; Options: Last -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt; border-bottom: Black 1pt solid"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font-size: 10pt"><TR STYLE="vertical-align: top; text-align: left"><TD STYLE="width: 33%">&nbsp;</TD><TD STYLE="width: 34%; text-align: center"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->12<!-- Field: /Sequence --></TD><TD STYLE="width: 33%; text-align: right">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
