<SEC-DOCUMENT>0001144204-16-100213.txt : 20160510
<SEC-HEADER>0001144204-16-100213.hdr.sgml : 20160510
<ACCEPTANCE-DATETIME>20160510102955
ACCESSION NUMBER:		0001144204-16-100213
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20160510
DATE AS OF CHANGE:		20160510
EFFECTIVENESS DATE:		20160510

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:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35972
		FILM NUMBER:		161634102

	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:		DFAN14A

	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>DFAN14A
<SEQUENCE>1
<FILENAME>v439409_dfan14a.htm
<DESCRIPTION>DFAN14A
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

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

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

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

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

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

<!-- Field: Rule-Page --><DIV STYLE="text-align: center; margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 1pt solid; width: 100%; text-align: center">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SCHEDULE 14A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Rule 14a-101)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>INFORMATION REQUIRED IN PROXY STATEMENT
</B></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Proxy Statement Pursuant to Section 14(a)
of the </B></P>

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

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

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

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><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: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filed by the Registrant&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">&uml;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Filed by a Party other than the Registrant&nbsp;&nbsp;<FONT STYLE="font-family: Wingdings">x</FONT></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">Check the appropriate box:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 97%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Preliminary Proxy Statement</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt"><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Definitive Proxy Statement</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Definitive Additional Materials</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 10pt">Soliciting Material Under Rule 14a-12</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>ASHFORD HOSPITALITY PRIME, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Name of the Registrant as Specified
in its Charter) </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">&nbsp;</P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SESSA CAPITAL IM GP, LLC </B></P>

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>(Name of Person(s) Filing Proxy Statement,
if Other than the Registrant) </B></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">Payment of Filing Fee (Check the appropriate box):</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 1%">&nbsp;</TD>
    <TD STYLE="width: 94%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">x</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">No fee required.</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Title of each class of securities to which transaction applies:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Aggregate number of securities to which transaction applies:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Per unit price or other underlying value of transaction computed
        pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Proposed maximum aggregate value of transaction:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Total fee paid:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Fee paid previously with preliminary materials.</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Wingdings; font-size: 10pt">&uml;</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.</FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(1)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Amount Previously Paid:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(2)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Form, Schedule or Registration Statement No.:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Filing Party:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Date Filed:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 0.75pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-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">On May 9, 2016, Sessa Capital (Master), L.P. posted the following
materials to http://www.FixAshfordPrime.com:</P>



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



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

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 68%; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD HOSPITALITY PRIME, INC.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Plaintiff,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P., SESSA CAPITAL GP, LLC, SESSA CAPITAL
        IM, L.P., SESSA CAPITAL IM GP, LLC, JOHN E. PETRY, PHILIP B. LIVINGSTON, LAWRENCE A. CUNNINGHAM, DANIEL B. SILVERS and CHRIS D.
        WHEELER,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&#9;Defendants;</P></TD>
    <TD STYLE="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="width: 29%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">SESSA CAPITAL (MASTER), L.P.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Counterclaim-Plaintiff;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD HOSPITALITY PRIME, INC.,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Counterclaim-Defendant</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">NO. 3:16-cv-00527-N</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SESSA CAPITAL (MASTER), L.P.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Third-Party Plaintiff,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">v.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">ASHFORD INC., ASHFORD HOSPITALITY ADVISORS LLC, MONTY J. BENNETT,
        DOUGLAS A. KESSLER, STEFANI D. CARTER, CURTIS B. MCWILLIAMS, W. MICHAEL MURPHY, MATTHEW D. RINALDI, and ANDREW STRONG,</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Third-Party Defendants.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">)</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><B>&nbsp;</B></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-align: center"><B>REPLY BRIEF IN SUPPORT OF SESSA CAPITAL&rsquo;S</B></P>

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

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

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

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Directors of a public company have a fiduciary
duty to ensure that elections are conducted with &ldquo;scrupulous fairness&rdquo; and are held to the &ldquo;highest standards&rdquo;
in doing so. <I>Aprahamian v. HBO &amp; Co.</I>, 531 A.2d 1204, 1206-07 (Del. Ch. 1987). In violation of this duty, the Director
Defendants are wrongfully withholding approval of the Sessa Candidates for purposes of the Proxy Penalty in an attempt to pressure
stockholders to vote in their favor. Despite their hyperbole and willingness to take liberties with the record, Ashford Prime and
the Director Defendants (collectively &ldquo;Ashford&rdquo;) have been unable to come forward with any justification for their
refusal to approve the Sessa Candidates that satisfies the high burden established in <I>Kallick v. SandRidge Energy, Inc.</I>,
68 A.3d 242 (Del. Ch. 2013). The Court should therefore grant Sessa&rsquo;s Motion for Preliminary Injunction.<SUP>1</SUP></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>I.</B></TD><TD><B>Sessa Is Likely to Prevail on the Merits</B></TD></TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>A.</B></TD><TD><B>Discovery Has Produced Strong Evidence the Director Defendants Breached Their Fiduciary Duties by Agreeing to the Proxy
Penalty</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On June 10, 2015, the Company entered
into a Third Amended and Restated Advisory Agreement (the &ldquo;TAAA&rdquo;) with Ashford Inc. and Ashford Hospitality Advisors
LLC. (App. 6-42.) The TAAA fundamentally altered the terms of the Advisory Agreement in ways that were highly detrimental to the
Company. First, the TAAA expanded the definition of a &ldquo;Company Change of Control&rdquo; to include a change in the composition
of a majority of the Ashford Prime Board. (App. 30-31; <I>cf.</I> App. 43-73.) Second, the TAAA for the first time gave <I>Ashford
Inc.</I> the power to terminate the Advisory Agreement and collect the termination fee even if Ashford Prime did not terminate
or default. (App. 27-29; <I>cf.</I> App. 67-70.) Third, the TAAA materially changed the method of calculating the termination
fee to the detriment of Ashford Prime. (App. 74-81.)</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 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> In its moving papers, Sessa originally sought
relief from two improper actions of Ashford Prime and the Director Defendants: (1) their refusal to approve the Sessa candidates
for purposes of the Proxy Penalty, and (2) their issuance of the Penny Preferred stock. Since then, the NYSE has forced the Company
to rescind the Penny Preferred, so that issue is now moot. However, Ashford Prime recently announced that it has disqualified all
of the Sessa Candidates and that it &ldquo;does not intend to count any stockholder votes&rdquo; in their favor. App. 95. As set
forth in Sessa&rsquo;s Expedited Motion to Amend the Scope of Relief, Sessa now also seeks relief from this latest effort to derail
fair director elections. (ECF No. 86.) Because the validity of the Company&rsquo;s disqualification of the Sessa Candidates is
already being fully briefed in connection with Ashford Prime&rsquo;s preliminary injunction motion in Case No. 16-cv-00713-N (ECF
No. 70), this reply brief is focused principally on the approval of the Sessa Candidates for purposes of the Proxy Penalty.</P>

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


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

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Discovery has produced powerful evidence
that the Director Defendants breached their fiduciary duties in approving the TAAA. Mr. McWilliams, the Company&rsquo;s lead outside
director, admitted that the outside directors were not provided &ldquo;an estimate of the amount of the termination fee,&rdquo;
and that the termination fee &ldquo;was not . . . part of [the board&rsquo;s] discussions.&rdquo; (App. 278-79, McWilliams 21:14-19,
22:3-10.) Mr. Murphy said the same things. (App. 311-14, Murphy 36:18-21, 108:9-12.) Even worse, Mr. McWilliams admitted that the
Board never even considered the fact that the &ldquo;Company Change of Control&rdquo; provision might undermine the stockholder
franchise. (App. 394, McWilliams 77:21-25. (Q: &ldquo;Did you consider, when you were negotiating the third amended advisory agreement,
that the change of control provision could undermine shareholder ability to nominate candidates to serve on the company&rsquo;s
board? A. We did not.&rdquo;).)</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The Director Defendants obtained no independent
legal advice or financial advice before entering into the TAAA. (App. 270-71; 283, McWilliams Dep. 10:16-11:3; 44:4-14.) The only
legal counsel involved was David Brooks, the Chief Operating Officer and General Counsel for <B><I>both</I></B> Ashford Prime and
Ashford Inc., the two parties who should have been opposite one another at the bargaining table.<SUP>2</SUP> (App. 270-71, McWilliams
10:19-11:8.)</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ashford 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 Advisory Agreement.
Opp&rsquo;n 18. However, none of the directors who were deposed identified the shorter term as a benefit in their sworn testimony;
they all focused exclusively on the key money provision. (App. 274-75, McWilliams 15:1-16:2; App. 262-63, Carter 28:22-29:19; App.
310-11, Murphy 35:14-36:10; App. 123, Bennett 123:4-21.) And the &ldquo;key money&rdquo; provision was nothing more than a pretext
created by management for justifying the TAAA.<SUP>3</SUP> Under the terms of the TAAA, Ashford Inc. was &ldquo;not required
to provide any Key Money to Prime unless it decided that it wanted to,&rdquo; and it was possible &ldquo;Ashford Inc. could have
decided to never provide Key Money under the terms of this agreement.&rdquo;<SUP>4</SUP> (App. 297, McWilliams 113:1-10.). It
was essentially just an option given to Ashford Inc., that offered no benefits to Ashford Prime.<SUP>5</SUP> In short, the record
indicates that in approving the TAAA the Director Defendants unwittingly compromised the stockholders&rsquo; rights to elect directors
of their choosing and got absolutely nothing of value in return.</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">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> Mr. Bennett was involved in most of the discussions.
(App. 286-87, McWilliams 50:18-51:2.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>3</SUP> The modification of the term also appears to
have been engineered as a pretext to defend the amendment, as the companies have frequently played with the term of the Advisory
Agreement. The original term of the Advisory Agreement was 5 years. (App. 227.) It was lengthened to 20 years on November 3, 2014
(App. 59) and then reduced back to 10 years in the TAAA (App. 25).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>4</SUP></FONT>
<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Ashford Inc. has provided only $206,000 in cash to date,
plus 19,897 shares of Ashford Inc. stock, for a total of less than $2 million in &ldquo;key money.&rdquo; App. 156. At the time
of the purchase, Ashford Prime had roughly $170 million in cash on hand, making the &ldquo;key money&rdquo; unnecessary. (App.
157.) </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5</SUP> If Ashford Inc. decided to provide Ashford Prime
with key money, Ashford Prime was obligated<I> </I>to pay Ashford Inc. an above-market guaranteed annual rate of return of 5% plus
additional financial benefits under certain circumstances. (App. 37.)</P>

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


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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>B.</B></TD><TD><B>The Director Defendants Are Clearly Breaching their Fiduciary Duties by Refusing to Approve the Sessa Candidates for Purposes
of the Proxy Penalty</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the TAAA, the Director Defendants
can avoid any risk of triggering the termination fee by simply approving two or more of the Sessa Candidates. (App. 30-31; <I>see
also</I> App. 257.002-.003, Bennett 134:23-135:7; App. 282-83, McWilliams 43:6-44:1.) The TAAA sets forth no conditions, criteria,
standards or guidelines for such approval. (App. 30-31.) The TAAA also does not require any evaluation or vetting of the nominees
before they can be approved.<SUP>6</SUP> (<I>Id.</I>)</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Bereft of anything in the TAAA limiting
the Director Defendants&rsquo; ability to simply approve the Sessa Candidates, Ashford attempts to manufacture a requirement that
they &ldquo;vet&rdquo; the Sessa Candidates by citing their own incorrect testimony and deliberately conflating the TAAA with their
incorrect interpretation of the Advance Notice Provisions. Suppl. Sub. 4-5. But their self-serving testimony and references to
irrelevant provisions of the bylaws and Nominating Committee charter are off the mark. The TAAA requires no evaluation of the Sessa
Candidates, and the board has no duties to Ashford Inc. to do so. <I>See Supra</I>, n. 8.</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">&nbsp;</P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>6</SUP> Ashford misleadingly suggests that the Sessa
Candidates must be deemed &ldquo;continuing directors.&rdquo; <I>See</I> Suppl. Sub 1. This is incorrect. They need only be &ldquo;approved.&rdquo;
(App. 32.)</P>

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


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

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the applicable law, the Director Defendants
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) (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: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">Under the
circumstances presented here, it would unquestionably be a breach of the Director Defendants&rsquo; fiduciary duties to continue
to withhold approval of the Sessa Candidates. If the they are not approved, the Company will face what Mr. Bennett describes as
&ldquo;a catastrophic event.&rdquo; (App. 253, Bennett 119:12-22.) Ashford Prime has represented that the termination fee is in
the &ldquo;hundreds of millions&rdquo; of dollars, and Ashford Inc. has represented that it exceeds $200 million. (App. 96; App.
160,</FONT> <FONT STYLE="font-size: 10pt">Ashford Inc.&rsquo;s Tex. State Ct. Compl., DC-16-03340,&nbsp;&para; 1.) Such a fee would
wipe out over half of Ashford Prime&rsquo;s market capitalization, which is less than $350 million.<SUP>7</SUP></FONT></P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">A situation almost identical to the one
presented here was recently addressed by the Delaware Court of Chancery in <I>SandRidge</I>. 68 A.3d 242 (2013). In <I>SandRidge</I>,
a hedge fund 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 not &ldquo;qualified&rdquo; and lacked specific 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 &ldquo;Proxy Put&rdquo; 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>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP> The termination fee would produce an epic windfall
for Ashford Inc., which has a market capitalization of less than $100 million. As Chairman Bennett has admitted, because he &ldquo;own[s]
a lot&rdquo; of Ashford Inc. stock, the termination fee would &ldquo;enrich [him] immensely.&rdquo; (App. 169.)</P>

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<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 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 263-264. 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 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>8</SUP> <I>Id.</I></P>

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<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ashford Prime and the Director Defendants
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.S. 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. (App. 180-183.)</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>8</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;
68 A.3d at 246. However, this was premised on the fact that the company had a duty of good faith and fair dealing toward its creditors
under Delaware law. <I>Id.</I> <FONT STYLE="color: #333333">The TAAA is expressly governed by Texas law (<I>see </I></FONT>App.
38<FONT STYLE="color: #333333">), 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>, 2015 U.S. Dist. LEXIS
75227, *5-*7 (N.D. Tex. 2015). Ashford thus owes no duties to Ashford Inc.</FONT></P>

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<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ashford 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
outside director, testified that he had &ldquo;no view&rdquo; as to whether the Sessa Nominees lack integrity or pose a threat
to the company. (App. 290-91, McWilliams 58:6-59:2.) He admitted that he was &ldquo;not aware&rdquo; of any reason to think they
would loot Ashford Prime. (App. 290, <I>id.</I> 58:2-5.) Likewise, Mr. Murphy testified likewise that he hadn&rsquo;t &ldquo;any
reason&rdquo; to think the Sessa Candidates lack integrity or competence or that they have ever stolen anything. (App. 302, 305,
Murphy 19:10-14, 22:4-15.)</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Ashford doesn&rsquo;t even attempt to meet
the <I>SandRidge</I> standard, but instead offers only irrelevant sound bites, cherry-picked &ldquo;gotchas&rdquo; from the depositions,<SUP>9</SUP>
and grossly distorted mischaracterizations of the testimony.<SUP>10</SUP> Ashford claims the Sessa Candidates are &ldquo;spectacularly
unprepared,&rdquo; that they have &ldquo;no hospitality experience,&rdquo; and that they &ldquo;failed to perform any meaningful
diligence into Ashford Prime.&rdquo;<SUP>11</SUP> ECF No. 87 (&ldquo;Suppl. Sub.&rdquo;), 2-3. But these exact arguments were
rejected in <I>SandRidge</I>. (They are also untrue.)</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>9</SUP> Ashford complains that Mr. Wheeler did not know
Ashford Prime&rsquo;s market cap. Suppl. Sub. 3. But incumbent director Murphy was also unaware of it, testifying that it was &ldquo;around
$1 billion, I would guess&rdquo; when it is actually less than $350 million. (App. 308, Murphy 33:8-12.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>10</SUP> For example, Ashford says that Mr. Petry &ldquo;testified
that he unilaterally refused to respond to certain questions.&rdquo; Suppl. Sub. 7. Mr. Petry actually testified that he &ldquo;did
respond to all of the questions in the questionnaire&rdquo; and that he did so &ldquo;fully.&rdquo; (App. 319-20, Petry 36:9-37:2).
Ashford says that Mr. Livingston &ldquo;chose not to fill out the Questionnaire because committing his answers to answers to paper
was somehow &lsquo;unprofessional.&rsquo;&rdquo; Suppl. Sub. 7. In fact, Mr. Livingston testified that he &ldquo;answered every
question to the best of [his] ability, even though [he] objected to a good number of the questions as inappropriate.&rdquo; (App.
325, Livingston 42:18-20.) Finally, Sessa says that Mr. Livingston &ldquo;confirmed that Sessa&rsquo;s refusal to submit its Purported
Nominees for interviews constitutes a bad faith contempt for proper governance.&rdquo; Suppl. Sub. 7. However, Mr. Livingston never
admitted that Sessa refused to allow the Sessa Candidates to be interviewed, nor did he ever suggest that Sessa had acted in &ldquo;bad
faith.&rdquo; (<I>See</I> App. 328, Livingston 136:17-21.)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>11</SUP> Mr. Bennett admitted that three of Ashford Prime&rsquo;s
incumbent directors (Carter, Strong and Rinaldi) are lawyers with no hospitality experience. (App. 246-47, Bennett 78:20-79:03.)</P>

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<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Again, Ashford falls back on speculation
that the Sessa Candidates have secret plans that they have failed to disclose. Suppl. Sub. 5-6. But as explained in detail in Sessa&rsquo;s
Opposition to Ashford Prime&rsquo;s Motion for Preliminary Injunction, the deposition testimony and declarations submitted by Sessa
firmly establish that there are no such plans or proposals. <I>See</I> Case No. 16-cv-00713-N, ECF No. 70 at 19. Likewise, the
complaints about Mr. Livingston&rsquo;s stock purchase and listing &ldquo;CPA&rdquo; as one of his qualifications are also obviously
contrived.<SUP>12</SUP> <I>See id.</I> at 25-26.</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In perhaps the ultimate <I>Alice in Wonderland</I>
moment of this contentious litigation, Ashford goes so far as to claim that they know Sessa has failed to disclose its true plans
for the Company because Mr. Petry already &ldquo;advised them privately&rdquo; of his plans and &ldquo;talked about how he thought
the company should be sold.&rdquo; Suppl. Sub. 8. However, the conversations they refer to were about the Company&rsquo;s own strategic
review process, which included consideration of a possible sale of the Company. (<I>See</I> App 243, Bennett 73:8-15; Murphy Decl.
&para;&nbsp;3.) In any event, this is actually an admission that Sessa has <B><I>not</I></B> withheld anything from the Director
Defendants.<SUP>13</SUP></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in"><B>C.</B></TD><TD><B>The Director Defendants Are Not Protected by the Business Judgment Rule </B></TD></TR></TABLE>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">It
is well established that when a board takes action &ldquo;for the primary purpose of impeding the exercise of stockholder voting
.. . . the board bears a heavy burden of demonstrating a compelling justification for such action.&rdquo; <I>Blasius Indus., Inc.
v. Atlas Corp.</I>, 564 A.2d 651, 659-61 (Del. Ch. 1988); <I>see also Shaker v. Foxby Corp.</I>, 2005 WL 914385 *5 (Md. Cir. Ct.
2005) (citing <I>Blasius</I>)</FONT><I> Blasius Indus., Inc. v. Atlas Corp. </I> , 564 A.2d 651 (Del. Ch. 1988) &quot; \s &quot;
Blasius &quot; \c 1<FONT STYLE="font-family: Times New Roman, Times, Serif">; <I>Daniels v. New Germany Fund,</I> <I>Inc.</I>,
2006 WL 4523622, *4 (D. Md. 2006) (&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;). If ever there were a case for application
of the <I>Blasius</I> standard, this is it. Given their long pattern of conduct to frustrate the stockholder franchise, their admitted
strategy of &ldquo;declaring the [Sessa] nominees invalid&rdquo; (App. 203), and their blatant use of the Proxy Penalty to attempt
to frighten stockholders to vote for them, it is obvious that the &ldquo;primary purpose&rdquo; of the Director Defendants in withholding
approval of the Sessa Candidates is to gain an improper advantage in the election.<FONT STYLE="font-size: 10pt"><SUP>14</SUP></FONT></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>12</SUP> Even if Ashford&rsquo;s alleged concerns about
Mr. Livingston were valid, they would not justify the refusal to approve the 4 other candidates. Approval of just two would obviate
the termination fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>13</SUP> To the extent Ashford is complaining that Sessa
should have disclosed in its proxy statement whatever any of the nominees &ldquo;contemplated&rdquo; or &ldquo;discussed,&rdquo;
Suppl. Sub. 7, their allegations are off the mark. It is well established that the SEC rules require disclosure only of definite
plans; mere ideas, beliefs, discussions, tentative plans or inchoate plans need not be disclosed. <I>Missouri Portland Cement Co.
v. Cargill, Inc.</I>, 498 F.2d 851, 872 (2d Cir.), cert. denied, 419 U.S. 883, 95 S. Ct. 150, 42 L. Ed. 2d 123 (1974); <I>Marshall
Field &amp; Co. v. Icahn</I>,&nbsp;537 F. Supp. 413 (S.D.N.Y. 1982); <I>Merrit v. Libby, McNeil &amp; Libby</I>,&nbsp;510 F. Supp.
366 (S.D.N.Y. 1981).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><SUP>14</SUP></FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
The primary purpose of the TAAA was also to undermine the stockholders&rsquo; voting rights through the Proxy Penalty. The TAAA
was adopted immediately following the stockholders&rsquo; rejection of a Company proposal to restrict the class of stockholders
who could nominate directors. (App. 207-08.) And as explained above, the TAAA offered nothing of real value to Ashford Prime. </FONT><I>
Blasius Indus., Inc. v. Atlas Corp. </I> , 564 A.2d 651 (Del. Ch. 1988) &quot; \s &quot; Blasius &quot; \c 1</P>

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<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Even if their primary purpose was not to
frustrate stockholder voting rights, an intermediate level of heightened scrutiny is applied to actions that may have a proper
primary purpose but that nonetheless have the effect of intruding on stockholder voting rights. <I>Unocal Corp. v. Mesa Petrol.
Co.</I>, 493 A.2d 946 (Del. 1985)<FONT STYLE="font-size: 10pt"><SUP>15</SUP></FONT>; <I>see also</I> <I>Hilton Hotels Corp. v.
ITT Corp.</I>,<I> </I>978 F. Supp. 1342, 1346 (D. Nev. 1997) (explaining the relationship between the <I>Blasius</I> and <I>Unocal</I>
standards). Indeed, the Delaware Court of Chancery applied the <I>Unocal</I> standard in <I>SandRidge</I> when it required the
incumbent directors to approve the competing directors for purposes of a Proxy Put, <I>SandRidge</I>, 68 A.3d at 259, and the Director
Defendants&rsquo; actions here fail the <I>Unocal</I> standard for the same reasons.<FONT STYLE="font-size: 10pt"><SUP>16</SUP></FONT></P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The various authorities Ashford cite in
an effort to argue that they are protected by the business judgment rule are inapposite.<FONT STYLE="font-size: 10pt"><SUP>17</SUP></FONT>
The <I>Tackney</I> and <I>Golding</I> cases did not even involve public companies; they both involved private, non-profit, non-stock,
voluntary membership organizations.&nbsp; <I>See Tackney v. U.S. Naval Acad. Alumni Ass&rsquo;n, Inc.</I>, 971 A.2d 309 (Md. 2009);
<I>NAACP v. Golding</I>, 679 A.2d 554 (Md. 1996).&nbsp; The organizations at issue had no stockholders, and their boards owned
no fiduciary duties to their members. <I>Tackney</I>, 971 A.2d at 317-18; <I>Golding</I>, 679 A.2d 562-63. The <I>Hills</I> case,
which was distinguished by <I>SandRidge</I>, involved severance packages for key employees, which obviously have a proper business
purpose, and applied the <I>Unocal</I> standard. <I>Hills Stores Co. v. Bozic</I>,<I> </I>769 A.2d 88, 91-92 (Del. Ch. 2013).</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">&nbsp;</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP> <I>Unocal</I> involved a mere share repurchase
in response to a tender offer that the board in good faith had determined to be at an inadequate price. 493 A.2d at 949.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>16</SUP> Application of the <I>Unocal</I> standard was
appropriate in <I>SandRidge</I>, because the Proxy Put was required by third party creditors and had a proper business purpose.
<I>SandRidge</I>, 68 A.3d at 247-48. Here, the <I>Blasius</I> standard applies because the primary purpose of the Proxy Penalty,
and the Director Defendants&rsquo; refusal to approve the Sessa Candidates, is to influence stockholder elections.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP> Ashford is also incorrect in arguing that the
business judgment rule applies as a consequence of the recent passage of S.B. 148. S.B. 148 does not become effective until October
1, 2016, and the Bill does not purport to apply retroactively. 2016 Md. Laws Ch. 170 (S.B. 148), (Apr. 26, 2016, eff. Oct. 1, 2016);
<I>see also</I> <I>Langston v. Riffe</I>, 754 A.2d 389, 394 (Md. 2000) (&ldquo;In the absence of clear legislative intent to the
contrary, a statute is not given retrospective effect.&rdquo;) (citation omitted). Moreover, the changes relate to &ldquo;transactions
involving a corporation,&rdquo; not stockholder voting.</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Even if <I>Blaisus</I> and <I>Unocal</I>
both did not apply, the Director Defendants&rsquo; would still be unable to hide behind the business judgment rule. It is black
letter law that the business judgment rule does not shield directors when they stand to receive a &ldquo;personal financial benefit&rdquo;
from the decision.<FONT STYLE="font-size: 10pt"><SUP>18</SUP></FONT> <I>Werbowsky v. Collomb</I>, 766 A.2d 123, 138 (Md. 2001).
When incumbent directors are seeking reelection, &ldquo;[t]hey are obviously interested in the outcome of the election&rdquo; and
actions they take that affect the electoral process are not protected by the business judgment rule. <I>Aprahamian</I>, 531 A.2d
at 1206-07 (business judgment rule did not apply where board relied on recommendation of special committee consisting of two directors
who were both running for reelection).</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">This exception to the business judgment
rule is particularly relevant here. As discussed more fully in Sessa&rsquo;s Opposition to Ashford Prime&rsquo;s Preliminary Injunction
Motion, the incumbent directors are compensated handsomely for their part time work (Case No. 16-cv-00713-N, ECF No.&nbsp;70 at
4), and all of the Director Defendants are standing for reelection.</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">&nbsp;</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">&nbsp;</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"><FONT STYLE="font-size: 10pt"><SUP>18</SUP></FONT> The business
judgment rule also does not protect directors who act in bad faith, which can be established by showing that the decision is &ldquo;inexplicable,&rdquo;
&ldquo;beyond the bounds of reasonable judgment,&rdquo; or that the directors &ldquo;intentionally fail[ed] to act in the face
of a known duty.&rdquo; <I>In re BJ&rsquo;s Wholesale Club, Inc. S&rsquo;holders Litig.</I>, C.A. No. 6623-VCN, 2013 WL 396202,
*7 (Del. Ch. 2013) (citations omitted). In addition, the business judgment rule does not protect directors who act with gross negligence,
including the &ldquo;intentional failure to perform a manifest duty in reckless disregard for the consequences.&rdquo; <I>Marriott
Corp. v. Chesapeake &amp; Potomac Tel. Co. of Md.</I>, 723 A.2d 454, 462 (Md. Ct. Spec. App. 1998) (citation omitted). Both of
these exceptions to the business judgment rule also apply here.</P>

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><B>II.</B></TD><TD><B>Sessa&rsquo;s Motion Is Ripe for Adjudication</B></TD></TR></TABLE>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In its April 4, 2016 Opposition to Sessa&rsquo;s
Motion for Preliminary Injunction, Ashford stated that it would &ldquo;present its determination regarding the Purported Nominees
in Ashford Prime&rsquo;s definitive proxy statement that will be filed at the appropriate time with the United States Securities
and Exchange Commission.&rdquo; Opp&rsquo;n 9. Ashford Prime filed its definitive proxy statement on April 25, 2016. In that critical
filing, Ashford Prime did not live up to its prior representation and failed to state whether it would approve the Sessa Candidates
for purposes of the TAAA. Instead, Ashford announced that it had decided the Sessa Candidates could not stand for election at all
and that it did &ldquo;not intend to count any stockholder votes for Sessa&rsquo;s proposed nominees.&rdquo; (App. 84.)</P>

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Sessa&rsquo;s motion is plainly ripe. To
the extent Sessa&rsquo;s motion is directed to Ashford&rsquo;s purported disqualification of the Sessa Candidates, Ashford has
made a final decision in its definitive proxy statement. To the extent Sessa&rsquo;s motion is directed to the Proxy Penalty, it
is also ripe because &ndash; just as in <I>SandRidge</I> &ndash; Ashford is deliberately using its refusal to timely approve the
Sessa Candidates to gain an unfair advantage in the election. Ashford should have made an approval decision in time to include
it in its definitive proxy statement, as it previously said it would, so that the stockholders could make an informed decision
in deciding how to vote. By withholding that approval, Ashford is improperly forcing the stockholders to vote under the fear that
election of the Sessa Candidates may trigger the Proxy Penalty. <I>See</I> <I>SandRidge</I>, 68 A.3d at 245-46 (explaining that
the incumbent directors had &ldquo;failed to decide, one way or the other&rdquo; whether to approve the competing nominees, and
that they could not comply with their duty of loyalty &ldquo;by simply failing to approve any director candidates who ran against
the incumbent slate&rdquo;).</P>

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

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

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

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

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For the foregoing reasons, Sessa respectfully
submits that its motion for preliminary injunction should be granted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 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 STYLE="width: 50%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dated: May 9, 2016</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Of Counsel:</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt"><B>&nbsp;</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt"><B>BARTLIT BECK HERMAN PALENCHAR
        &amp; SCOTT LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Glen E. Summers (<I>Pro Hac
        Vice</I>)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Email: glen.summers@bartlit-beck.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">John M. Hughes (<I>Pro Hac
        Vice</I>)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Email: john.hughes@bartlit-beck.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Nosson D. Knobloch (<I>Pro
        Hac Vice</I>)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Email: nosson.knobloch@bartlit-beck.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Joseph Doman (<I>Pro Hac Vice</I>)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: joe.doman@bartlit-beck.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">1899 Wynkoop Street, 8th Floor</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Denver, Colorado 80202</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Telephone No. (303) 592-3100</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">Facsimile No.: (303) 592-3140</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">John D. Byars (<I>Pro Hac Vice</I>)</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: john.byars@bartlit-beck.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Courthouse Place</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">54 W. Hubbard Street, Suite 300</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chicago, Illinois 60654</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Telephone No. (312) 494-4400</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Facsimile No.: (312) 494-4440</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt"><B>SKIERMONT DERBY LLP</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt"><U>s/<I> Paul J. Skiermont</I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Paul J. Skiermont</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Texas State Bar No. 24033073</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: pskiermont@skiermontderby.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Eliot J. Walker</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Texas State Bar No. 24058165</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: ewalker@skiermontderby.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Shellie Stephens</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Texas State Bar No. 24079398</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Email: sstephens@skiermontderby.com</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">2200 Ross Ave., Suite 4800W</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dallas, Texas 75201</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Telephone No.: (214) 978-6600</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Facsimile No.: (214) 978-6601</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.6pt; text-indent: -12.6pt">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Attorneys for Defendants and Counterclaimant and Third-Party
        Claimant Sessa Capital (Master), L.P.</I></B></P></TD></TR>
</TABLE>

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

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

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

<P STYLE="font: 10pt/20pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 9, 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 <I>pro se</I> 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: 0pt 0">&nbsp;</P>

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

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

<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: 35%; 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>
    <TD STYLE="width: 15%; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" 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: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"></P>

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