Document:

EX-10.1

 Exhibit 10.1 

 
  
  

 
 AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP 

DATED:                     , 2013

 TABLE OF CONTENTS 

 

							
	 	    	 	  	PAGE	 
	ARTICLE I DEFINED TERMS	  	 	2	 
		
	ARTICLE II PARTNERSHIP CONTINUATION; ADMISSION OF LIMITED PARTNERS; NAME; PLACE OF BUSINESS AND REGISTERED AGENT	  	 	12	 
	 Section 2.1
	    	CONTINUATION	  	 	12	 
	 Section 2.2
	    	CERTIFICATE OF LIMITED PARTNERSHIP; OTHER FILINGS	  	 	12	 
	 Section 2.3
	    	ADDITIONAL LIMITED PARTNERS	  	 	12	 
	 Section 2.4
	    	NAME, OFFICE AND REGISTERED AGENT	  	 	12	 
		
	ARTICLE III BUSINESS AND TERM OF PARTNERSHIP	  	 	12	 
	 Section 3.1
	    	BUSINESS	  	 	12	 
	 Section 3.2
	    	TERM	  	 	13	 
		
	ARTICLE IV CAPITAL CONTRIBUTIONS	  	 	13	 
	 Section 4.1
	    	GENERAL PARTNER	  	 	13	 
	 Section 4.2
	    	LIMITED PARTNERS	  	 	13	 
	 Section 4.3
	    	ADDITIONAL CAPITAL CONTRIBUTIONS AND ISSUANCES	  			
		    	OF ADDITIONAL PARTNERSHIP INTERESTS	  	 	13	 
	 Section 4.4
	    	ADDITIONAL FUNDING	  	 	19	 
	 Section 4.5
	    	INTEREST	  	 	19	 
	 Section 4.6
	    	RETURN OF CAPITAL	  	 	19	 
	 Section 4.7
	    	PERCENTAGE INTEREST	  	 	19	 
		
	ARTICLE V PROFITS, LOSSES AND ACCOUNTING	  	 	19	 
	 Section 5.1
	    	ALLOCATION OF PROFITS AND LOSSES	  	 	19	 
	 Section 5.2
	    	ACCOUNTING	  	 	20	 
	 Section 5.3
	    	PARTNERS’ CAPITAL ACCOUNTS	  	 	22	 
	 Section 5.4
	    	SECTION 754 ELECTIONS	  	 	23	 
	 Section 5.5
	    	SPECIAL ALLOCATION OF GAIN TO LTIP UNITHOLDERS	  	 	23	 
		
	ARTICLE VI POWERS, DUTIES, LIABILITIES, COMPENSATION AND VOTING OF GENERAL PARTNER	  	 	24	 
	 Section 6.1
	    	POWERS OF GENERAL PARTNER	  	 	24	 
	 Section 6.2
	    	DELEGATION OF AUTHORITY	  	 	27	 
	 Section 6.3
	    	DUTIES OF GENERAL PARTNER	  	 	27	 
	 Section 6.4
	    	LIABILITIES OF GENERAL PARTNER; INDEMNIFICATION	  	 	28	 
	 Section 6.5
	    	COMPENSATION OF GENERAL PARTNER; REIMBURSEMENT	  	 	31	 
	 Section 6.6
	    	RELIANCE ON ACT OF GENERAL PARTNER	  	 	31	 
	 Section 6.7
	    	OUTSIDE SERVICES; DEALINGS WITH AFFILIATES; OUTSIDE ACTIVITIES	  	 	31	 
	 Section 6.8
	    	ADDITIONAL LOANS TO THE PARTNERSHIP	  	 	32	 
	 Section 6.9
	    	CONTRIBUTION OF ASSETS	  	 	32	 

  
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	ARTICLE VII RIGHTS, PROHIBITIONS AND REPRESENTATIONS WITH RESPECT TO LIMITED PARTNERS	  	 	33	 
	 Section 7.1
	    	RIGHTS OF LIMITED PARTNERS	  	 	33	 
	 Section 7.2
	    	PROHIBITIONS WITH RESPECT TO THE LIMITED PARTNERS	  	 	33	 
	 Section 7.3
	    	OWNERSHIP BY LIMITED PARTNER OF CORPORATE GENERAL PARTNER OR AFFILIATE	  	 	34	 
	 Section 7.4
	    	REDEMPTION RIGHT	  	 	34	 
	 Section 7.5
	    	NOTICE OF SALE OR REFINANCING	  	 	37	 
	 Section 7.6
	    	BASIS ANALYSIS AND LIMITED PARTNER GUARANTEES	  	 	37	 
	 Section 7.7
	    	CONVERSION OF LTIP UNITS	  	 	37	 
	 Section 7.8
	    	VOTING RIGHTS OF LTIP UNITS	  	 	41	 
		
	ARTICLE VIII DISTRIBUTIONS AND PAYMENTS TO PARTNERS	  	 	41	 
	 Section 8.1
	    	DISTRIBUTIONS OF CASH FLOW	  	 	41	 
	 Section 8.2
	    	REIT DISTRIBUTION REQUIREMENTS	  	 	43	 
	 Section 8.3
	    	NO RIGHT TO DISTRIBUTIONS IN KIND	  	 	43	 
	 Section 8.4
	    	DISPOSITION PROCEEDS	  	 	43	 
	 Section 8.5
	    	WITHDRAWALS	  	 	43	 
	 Section 8.6
	    	AMOUNTS WITHHELD	  	 	43	 
		
	ARTICLE IX TRANSFERS OF INTERESTS	  	 	44	 
	 Section 9.1
	    	GENERAL PARTNER	  	 	44	 
	 Section 9.2
	    	ADMISSION OF A SUBSTITUTE OR ADDITIONAL GENERAL PARTNER	  	 	45	 
	 Section 9.3
	    	EFFECT OF BANKRUPTCY, WITHDRAWAL, DEATH OR DISSOLUTION OF A GENERAL PARTNER	  	 	46	 
	 Section 9.4
	    	REMOVAL OF A GENERAL PARTNER	  	 	47	 
	 Section 9.5
	    	RESTRICTIONS ON TRANSFER OF LIMITED PARTNERSHIP INTERESTS	  	 	47	 
	 Section 9.6
	    	ADMISSION OF SUBSTITUTE LIMITED PARTNER	  	 	48	 
	 Section 9.7
	    	RIGHTS OF ASSIGNEES OF PARTNERSHIP INTERESTS	  	 	50	 
	 Section 9.8
	    	EFFECT OF BANKRUPTCY, DEATH, INCOMPETENCE OR TERMINATION OF A LIMITED PARTNER	  	 	50	 
	 Section 9.9
	    	JOINT OWNERSHIP OF INTERESTS	  	 	51	 
	 Section 9.10
	    	TRANSFEREES	  	 	51	 
	 Section 9.11
	    	ABSOLUTE RESTRICTION	  	 	51	 
	 Section 9.12
	    	INVESTMENT REPRESENTATION	  	 	51	 
	 Section 9.13
	    	CERTIFICATES	  	 	52	 
		
	ARTICLE X TERMINATION OF THE PARTNERSHIP	  	 	52	 
	 Section 10.1
	    	TERMINATION	  	 	52	 
	 Section 10.2
	    	PAYMENT OF DEBTS	  	 	52	 
	 Section 10.3
	    	DEBTS TO PARTNERS	  	 	53	 
	 Section 10.4
	    	REMAINING DISTRIBUTION	  	 	53	 
	 Section 10.5
	    	RESERVE	  	 	54	 
	 Section 10.6
	    	FINAL ACCOUNTING	  	 	54	 

  
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	ARTICLE XI AMENDMENTS	  	 	54	 
	 Section 11.1
	    	AUTHORITY TO AMEND	  	 	54	 
	 Section 11.2
	    	NOTICE OF AMENDMENTS	  	 	55	 
		
	ARTICLE XII POWER OF ATTORNEY	  	 	55	 
	 Section 12.1
	    	POWER	  	 	55	 
	 Section 12.2
	    	SURVIVAL OF POWER	  	 	56	 
		
	ARTICLE XIII CONSENTS, APPROVALS, VOTING AND MEETINGS	  	 	56	 
	 Section 13.1
	    	METHOD OF GIVING CONSENT OR APPROVAL	  	 	56	 
	 Section 13.2
	    	MEETINGS OF LIMITED PARTNERS	  	 	57	 
	 Section 13.3
	    	OPINION	  	 	57	 
	 Section 13.4
	    	SUBMISSIONS TO PARTNERS	  	 	57	 
		
	ARTICLE XIV MISCELLANEOUS	  	 	57	 
	 Section 14.1
	    	GOVERNING LAW	  	 	57	 
	 Section 14.2
	    	AGREEMENT FOR FURTHER EXECUTION	  	 	57	 
	 Section 14.3
	    	ENTIRE AGREEMENT	  	 	57	 
	 Section 14.4
	    	SEVERABILITY	  	 	58	 
	 Section 14.5
	    	NOTICES	  	 	58	 
	 Section 14.6
	    	TITLES AND CAPTIONS	  	 	58	 
	 Section 14.7
	    	COUNTERPARTS	  	 	58	 
	 Section 14.8
	    	PRONOUNS	  	 	58	 
	 Section 14.9
	    	SURVIVAL OF RIGHTS	  	 	58	 

  

					
	EXHIBIT A	 	–	 	List of Partners and Initial Contributed Assets
	EXHIBIT B	 	–	 	Federal Income Tax Matters
	EXHIBIT C	 	–	 	Notice of Exercise of Redemption Right
	EXHIBIT D	 	–	 	Notice of Election by Partner to Convert LTIP Units into Common Partnership Units
	EXHIBIT E	 	–	 	Notice of Election by Partnership to Force Conversion of LTIP Units into Common Partnership Units
	EXHIBIT F	 	–	 	Form of Partnership Interest and Partnership Unit Certificate

  
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 AMENDED AND RESTATED 

AGREEMENT OF LIMITED PARTNERSHIP 
 OF 
 ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP 

RECITALS: 

This Amended and Restated Agreement of Limited Partnership is entered into effective
            [spin-off date], 2013 (the “Effective Date”). 
 WHEREAS, Ashford Hospitality Prime Limited Partnership (the “Partnership”) was formed as a limited partnership under the laws of the State of Delaware by the filing
of a Certificate of Limited Partnership with the Secretary of State of Delaware on April 5, 2013; 

WHEREAS, the General Partner and the Original Limited Partner entered into the Agreement of Limited Partnership as of
April 5, 2013 (the “Prior Agreement”); 
 WHEREAS, before the Effective Date, the
Partnership was a disregarded entity for U.S. federal income tax purposes; 
 WHEREAS, Section 12.8 of the Prior Agreement
permits the General Partner to amend the Prior Agreement; 
 WHEREAS, the General Partner and Ashford Prime OP Limited Partner
LLC desire to amend and restate the Prior Agreement to make the revisions to the Prior Agreement set forth below; 
 WHEREAS,
the Company, which is the sole member of the General Partner and of Ashford Prime OP Limited Partner LLC, has directed the General Partner and Ashford Prime OP Limited Partner LLC to amend the Prior Agreement as set forth in this Agreement;

 WHEREAS, the General Partner and Ashford Prime OP Limited Partner LLC desire to so amend and restate the Prior Agreement, as
of the Effective Date; 
 NOW, THEREFORE, in consideration of the foregoing, of the mutual covenants between the parties hereto,
and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

 ARTICLE I 
 DEFINED TERMS 
 Whenever used in this Agreement, the following terms
shall have the meanings respectively assigned to them in this Article I, unless otherwise expressly provided herein or unless the context otherwise requires: 
 “Act” shall mean the Delaware Revised Uniform Limited Partnership Act, 6 Del C. § 17-101, et. seq., as amended, supplemented or restated from time to time, and any successor to such
statute. 
 “Additional Funds” has the meaning set forth in Section 4.4 hereof. 

“Additional Limited Partner” shall mean a Person admitted to this Partnership as a Limited Partner pursuant to and in
accordance with Section 2.3(b) of this Agreement. 
 “Additional Securities” means any additional
REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to Section 7.4 hereof) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT
Shares, as set forth in Section 4.3(a)(ii). 
 “Adjustment Event” shall have the meaning set forth
in Section 4.3(d) hereof. 
 “Advisor” means Ashford Hospitality Advisors LLC, a Delaware limited
liability company, in its capacity as advisor to the Partnership pursuant to the Advisory Agreement dated on or about the Effective Date by and between Ashford Hospitality Advisors LLC, the Company and the Partnership, as it may be amended, and any
successor advisor to the Partnership. 
 “Affiliate” of another Person shall mean (a) any Person directly
or indirectly owning, controlling or holding with power to vote ten percent (10%) or more of the outstanding voting securities of such other Person; (b) any Person ten percent (10%) or more of whose outstanding voting securities are
directly or indirectly owned, controlled or held with power to vote by such other Person; (c) any Person directly or indirectly controlling, controlled by, or under common control with, such other Person; (d) any officer, director, member
or partner of such other Person; and (e) if such other Person is an officer, director, member or partner in a company, the company for which such Person acts in any such capacity. 

“Agreed Value” shall mean the fair market value of Contributed Property as agreed to by the contributing partner and the
Partnership, using such reasonable method of valuation as they may adopt. 
 “Agreement” shall mean this
Amended and Restated Agreement of Limited Partnership of Ashford Hospitality Prime Limited Partnership, as amended from time to time. 
 “AMEX” shall mean the American Stock Exchange or any successor thereto. 

  
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 “Articles of Organization” means the Certificate of Formation of the
General Partner filed with the Secretary of State of the State of Delaware, as amended or restated from time to time. 

“Ashford Prime OP Limited Partner LLC” means Ashford Prime OP Limited Partner LLC, a Delaware limited liability company.

 “Bankruptcy Code” shall mean the United States Bankruptcy Code, as amended, 11 U.S.C. ss.ss. 101 ET SEQ.,
and as hereafter amended from time to time. 
 “Business Day” shall mean any day, other than a Saturday or
Sunday, that is neither a legal holiday nor a day on which banking institutions in New York, New York are authorized or required by law, regulation or executive order to close. 

“Capital Account” shall mean, as to any Partner, the account established and maintained for such Partner pursuant to
Section 5.3 hereof. 
 “Capital Account Limitation” shall have the meaning set forth in
Section 7.7(b) hereof. 
 “Capital Contribution” shall mean the amount in cash or the Agreed Value
of Contributed Property (net of liabilities secured by the contributed property that the Partnership is considered to assume or take subject to under Code Section 752) contributed by each Partner (or its original predecessor in interest) to the
capital of the Partnership for its interest in the Partnership. 
 “Carrying Value” shall mean, with respect to
any property, the adjusted basis of such property for federal income tax purposes as of the time of determination except as follows: (a) the initial Carrying Value of any property contributed by a Partner to the Partnership shall be its Agreed
Value, (b) the Carrying Value of property distributed to a Partner shall the fair market value of such property, as determined by the General Partner, and (c) the Carrying Value of property shall be adjusted as provided by Exhibit B, items
A.1., B. 1(c), B.3., and B.4. 
 “Cash Amount” means an amount of cash per Common Partnership Unit equal to the
Value on the Valuation Date of the REIT Common Shares Amount. 
 “Cash Flow” shall mean the excess of cash
revenues actually received by the Partnership in respect of Partnership operations for any period, and the amount of any reduction in reserves of the Partnership, over Operating Expenses for such period. Cash Flow shall not include Disposition
Proceeds. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and as hereafter amended from
time to time. Reference to any particular provision of the Code shall mean that provision in the Code at the date hereof and any succeeding provision of the Code. 
 “Commission” shall mean the U.S. Securities and Exchange Commission. 

  
 3 

 “Common Partnership Interest” shall mean an ownership interest in the
Partnership, other than a Preferred Partnership Interest, and includes any and all benefits to which the holder of such an ownership interest may be entitled as provided in this Agreement or the Act, together with all obligations of such Person to
comply with the terms and provisions of this Agreement and the Act. 
 “Common Partnership Unit” shall mean a
fractional, undivided share of the Common Partnership Interests of all Partners issued hereunder. At all times there shall be maintained an economic equivalency of Common Partnership Units and REIT Common Shares, except as otherwise provided herein.

 “Common Partnership Unit Distribution” shall have the meaning set forth in Section 4.3(d)
hereof. 
 “Common Partnership Unit Distribution Period” shall mean any quarter or shorter period with respect
to which a distribution is to be made to the holders of the Common Partnership Units. 
 “Common Partnership Unit
Economic Balance” shall have the meaning set forth in Section 5.5 hereof. 
 “Common Percentage
Interest” shall mean the percentage ownership interest in the Common Partnership Units of each Partner, as determined by dividing the Common Partnership Units owned by a Partner by the total number of Common Partnership Units then
outstanding, subject to Sections 4.3(d) and 4.3(e) which treat LTIP Units as Common Partnership Units for this purpose. 
 “Company” means Ashford Hospitality Prime, Inc., a Maryland corporation. 
 “Constituent Person” shall have the meaning set forth in Section 7.7(f) hereof. 
 “Contributed Property” shall mean a Partner’s interest in property or other consideration (excluding services and cash) contributed to the Partnership by such Partner. 

“Conversion Date” shall have the meaning set forth in Section 7.7(b) hereof. 

“Conversion Factor” shall mean 1.0; provided, however, that if the Company (i) declares or pays a dividend on its
outstanding REIT Common Shares in REIT Common Shares or makes a distribution to all holders of its outstanding REIT Common Shares in REIT Common Shares, (ii) subdivides its outstanding REIT Common Shares, or (iii) combines its outstanding
REIT Common Shares into a smaller number of REIT Common Shares, the Conversion Factor shall be adjusted by multiplying the Conversion Factor by a fraction, the numerator of which shall be the number of REIT Common Shares issued and outstanding on
the record date for such dividend, distribution, subdivision or combination (assuming for such purposes that such dividend, distribution, subdivision or combination has occurred as of such time), and the denominator of which shall be the actual
number of REIT Common Shares (determined without the above assumption) 

  
 4 

 
issued and outstanding on the record date for such dividend, distribution, subdivision or combination. Any adjustment to the Conversion Factor shall become effective immediately after the
effective date of such event retroactive to the record date, if any, for such event; PROVIDED, HOWEVER, that if the General Partner receives a Notice of Redemption after the record date, but prior to the effective date of such dividend,
distribution, subdivision or combination, the Conversion Factor shall be determined as if the General Partner had received the Notice of Redemption immediately prior to the record date for such dividend, distribution, subdivision or combination.

 “Conversion Notice” shall have the meaning set forth in Section 7.7(b) hereof. 

“Conversion Right” shall have the meaning set forth in Section 7.7(a) hereof. 

“Disposition Proceeds” shall mean the excess of the proceeds received by the Partnership from the sale, exchange or
other disposition of all or substantially all of the Partnership’s Property less any expenses incurred or paid by the Partnership in connection with such transaction. 
 “Distribution Payment Date” shall mean the dates upon which the General Partner makes distributions in accordance with Section 8.1 hereof. 

“Economic Capital Account Balance” shall have the meaning set forth in Section 5.5 hereof. 

“Effective Date” shall have the meaning set forth in the Recitals. 

“Event of Bankruptcy” shall mean as to any Person the filing of a petition for relief as to such Person as debtor or
bankrupt under the Bankruptcy Code or similar provision of law of any jurisdiction (except if such petition is contested by such Person and has been dismissed within ninety (90) days of the filing thereof); insolvency of such Person as finally
determined by a court of competent jurisdiction; filing by such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person or a substantial part of such Person’s assets;
commencement of any proceedings relating to such Person as a debtor under any other reorganization, arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in effect, either by such
Person or by another, but if such proceeding is commenced by another, only if such Person indicates his approval of such proceeding, or such proceeding is contested by such Person and has not been finally dismissed within ninety (90) days.

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

“Forced Conversion” shall have the meaning set forth in Section 7.7(c) hereof. 

“Forced Conversion Notice” shall have the meaning set forth in Section 7.7(c) hereof. 

  
 5 

 “Full Distribution Amount” shall have the meaning set forth in
Section 8.1(a) hereof. 
 “General Partner” shall mean Ashford Prime OP General Partner LLC and any
Person who becomes a substitute or additional General Partner as provided herein, and any of their successors as General Partner. 
 “General Partnership Interest” shall mean the ownership interest of a General Partner in the Partnership, provided that the General Partner shall have no interest in profits or losses of
the Partnership with respect to its General Partnership Interest. 
 “Government Obligations” shall mean
securities that are (i) direct obligations of the United States of America, for the payment of which its full faith and credit is pledged, or (ii) obligations of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, that are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank or trust as custodian with respect to any such obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of interest on or principal of the
Government Obligation evidenced by such depository receipt. 
 “Hotels” means the hotel properties owned by the
Partnership, directly or through any other entity, from time to time. 
 “Indemnitee” shall mean (i) any
Person made a party to a proceeding by reason of his or her status as (A) the General Partner, (B) the Advisor, or (B) a director, officer, employee or agent of the Partnership, the General Partner or the Advisor, and (ii) such
other Persons (including Affiliates of the General Partner, the Advisor or the Partnership) as the General Partner may designate from time to time (whether before or after the event giving rise to potential liability), in its sole and absolute
discretion. 
 “Ineligible Unit” shall have the meaning set forth in Section 5.5 hereof.

 “Initial Contributed Assets” shall mean that cash and those properties identified as Initial Contributed
Assets on Exhibit A hereto. 
 “IRS” shall mean the Internal Revenue Service. 

“Limited Partner” shall mean any Person named as a Limited Partner on Exhibit A attached hereto and any Person
who becomes a Substitute Limited Partner pursuant to Section 9.6 hereof or an Additional Limited Partner pursuant to Section 2.3(b) hereof, in such Person’s capacity as a Limited Partner in the Partnership. 

  
 6 

 “Limited Partnership Interest” shall mean the ownership interest of a
Limited Partner in the Partnership at any particular time, including the right of such Limited Partner to any and all benefits to which such Limited Partner may be entitled as provided in this Agreement and in the Act, together with the obligations
of such Limited Partner to comply with all the provisions of this Agreement and of the Act. 
 “LTIP Unit”
shall mean a Partnership Unit that is designated as an LTIP Unit and which has the rights, preferences and other privileges designated in Sections 4.3(d) and 4.3(e) hereof and elsewhere in this Agreement in respect of LTIP Unitholders.
The allocation of LTIP Units among the Partners shall be set forth on Exhibit A, as may be amended from time to time. 

“LTIP Unitholder” shall mean a Partner that holds LTIP Units. 

“NASDAQ” shall mean the NASDAQ Global Market or any successor thereto. 

“Newly Issued Common Partnership Unit” shall mean with respect to any Common Partnership Unit Distribution Period, a
Common Partnership Unit issued during such Common Partnership Unit Distribution Period, other than to Ashford Prime OP Limited Partner LLC and other than Common Partnership Units (including LTIP Units) issued on the Effective Date. 

“Notice of Redemption” shall mean the Notice of Exercise of Redemption Right substantially in the form attached as
Exhibit C hereto. 
 “NYSE” shall mean the New York Stock Exchange or any successor thereto. 

“Operating Expenses” shall mean (i) all administrative and operating costs and expenses incurred by the
Partnership, (ii) those administrative costs and expenses of the General Partner, including any salaries or other payments to directors, officers or employees of the General Partner, and any accounting and legal expense of the General Partner,
which expenses, the Partners have agreed, are expenses of the Partnership and not the General Partner, and (iii) to the extent not included in clause (ii) above, REIT Expenses; PROVIDED, HOWEVER, that Operating Expenses shall not include
any administrative costs and expenses incurred by the General Partner that are attributable to Properties or partnership interests in a Subsidiary that are owned by the General Partner or the Company directly. 

“Original Limited Partner” shall mean Ashford Prime OP Limited Partner LLC. 

“Partner” shall mean the General Partner or any Limited Partner. 

“Partnership” shall mean Ashford Hospitality Prime Limited Partnership, a Delaware limited partnership. 

“Partnership Interest” shall mean an ownership interest in the Partnership and includes any and all benefits to which
the holder of such an ownership interest may be 

  
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entitled as provided in this Agreement or the Act, together with all obligations of such Person to comply with the terms and provisions of this Agreement and the Act. 

“Partnership Record Date” shall mean the record date established by the General Partner for the distribution of Cash
Flow pursuant to Section 8.1 hereof, which record date, as to Common Partnership Units, shall be the corresponding record date established by the Company with respect to the REIT Common Shares and which record date, as to a series of
Preferred Partnership Units, shall be the corresponding record date established by the Company with respect to the corresponding series of REIT Preferred Shares. 
 “Partnership Unit” shall mean a Common Partnership Unit, a Preferred Partnership Unit, an LTIP Unit, or any other fractional, undivided share of the Partnership Interests that the General
Partner has authorized pursuant to this Agreement. The Partnership Units of the Partners shall be set forth on Exhibit A, as may be amended from time to time. 
 “Person” shall mean any individual, partnership, corporation, limited liability company, trust or other entity. 
 “Plan” shall mean each of the Ashford Hospitality Prime, Inc. 2013 Equity Incentive Plan and the Ashford Hospitality Prime, Inc. Advisor Equity Incentive Plan, each as amended and/or one
or more successor or additional equity incentive plans or programs that the Company may adopt, as amended (each individually and all of them collectively, as the context requires). 

“Preferred Partnership Interest” shall mean an ownership interest in the Partnership evidenced by a designated series of
Preferred Partnership Units, having a preference in payment of distributions or on liquidation as determined by the General Partner for such series of Preferred Partnership Units and as set forth in an amendment to this Agreement, and includes all
benefits to which the holder of such an ownership interest may be entitled as provided in this Agreement or the Act, together with all obligations of such Person to comply with the terms and provisions of this Agreement and the Act. 

“Preferred Partnership Unit” shall mean a fractional, undivided share of Preferred Partnership Interests of all Partners
in the specified series issued hereunder. 
 “Preferred Percentage Interest” with respect to a series of
Preferred Partnership Units, shall mean the percentage ownership interest in the Preferred Partnership Units of each Partner holding Preferred Partnership Units of such specified series, as determined by dividing the Preferred Partnership Units of
such series owned by a Partner by the total number of Preferred Partnership Units of that series then outstanding. 

“Preferred Return” shall mean any payment made or to be made on any Preferred Partnership Unit corresponding to any
dividend paid or to be paid on the related series of preferred stock issued by the Company, in accordance with Section 4.3 hereof. 
 “Prior Agreement” has the meaning assigned to such term in the Recitals. 

  
 8 

 “Property” shall mean any hotel property or other investment in which the
Partnership holds an ownership interest. 
 “Redeeming Partner” shall have the meaning provided in
Section 7.4(a) hereof. 
 “Redemption Right” shall have the meaning provided in
Section 7.4(a) hereof. 
 “REIT” shall mean a real estate investment trust under Sections 856
through 860, inclusive, of the Code. 
 “REIT Common Share” shall mean a share of the common stock of the
Company. 
 “REIT Common Shares Amount” shall mean a whole number of REIT Common Shares equal to the product of
the number of Common Partnership Units offered for redemption by a Redeeming Partner, multiplied by the Conversion Factor in effect on the Specified Redemption Date (rounded down to the nearest whole number if such product is not a whole number);
provided, however, that if the Company at any time issues to all holders of REIT Common Shares rights, options, warrants or convertible or exchangeable securities entitling the stockholders to subscribe for or purchase REIT Common Shares, or any
other securities or property (collectively, the “Rights”), which Rights have not expired pursuant to their terms, then the REIT Common Shares Amount thereafter shall also include such Rights that a holder of that number of REIT Common
Shares would be entitled to receive. 
 “REIT Expenses” means (i) costs and expenses relating to the
formation and continuity of existence of the Company and any Subsidiaries thereof (which Subsidiaries shall, for purposes hereof, be included within the definition of Company), including taxes, fees and assessments associated therewith, any and all
costs, expenses or fees payable to any director, officer, or employee of the Company, (ii) costs and expenses relating to the public offering and registration of securities or private offering of securities by the Company and all statements,
reports, fees and expenses incidental thereto, including underwriting discounts and selling commissions applicable to any such offering of securities, (iii) costs and expenses associated with the preparation and filing of any periodic reports
by the Company under federal, state or local laws or regulations, including filings with the Commission, (iv) costs and expenses associated with compliance by the Company with laws, rules and regulations promulgated by any regulatory body,
including the Commission, and (v) all other operating or administrative costs of the Company, including, without limitation, insurance premiums, and legal, accounting and directors’ fees, incurred in the ordinary course of its business on
behalf of or in connection with the Partnership. 
 “REIT Preferred Share” shall mean a share of the preferred
stock of the Company. 
 “REIT Share” shall mean a REIT Common Share or a REIT Preferred Share. 

“Safe Harbor” means, the election described in the Safe Harbor Regulation, pursuant to which a partnership and all of
its partners may elect to treat the fair market 

  
 9 

 
value of a partnership interest that is transferred in connection with the performance of services as being equal to the liquidation value of that interest. 

“Safe Harbor Election” means the election by a partnership and its partners to apply the Safe Harbor, as described in
the Safe Harbor Regulation and Internal Revenue Service Notice 2005-43, issued on May 19, 2005. 
 “Safe Harbor
Regulation” means Proposed Treasury Regulations Section 1.83-3(l) issued on May 19, 2005. 
 “Special
Partnership Interest” shall mean a Common Partnership Interest, except that, notwithstanding anything to the contrary in Section 7.4, the General Partner shall not have the right, directly or indirectly, to satisfy any
Redemption Right exercised by a Limited Partner with respect to the Special Partnership Interest through the issuance of the REIT Common Shares Amount as set forth in Section 7.4(b). 

“Special Partnership Unit” shall mean a Common Partnership Unit, except that, notwithstanding anything to the contrary
in Section 7.4, the General Partner shall not have the right, directly or indirectly, to satisfy any Redemption Right exercised by a Limited Partner with respect to a Special Partnership Unit through the issuance of the REIT Common
Shares Amount as set forth in Section 7.4(b). 
 “Specified Redemption Date” shall mean, with
respect to a given Partner and Notice of Redemption, the later of any date so specified in the Notice of Redemption and the third (3rd) Business Day after receipt by the General Partner of the Notice of Redemption, provided that no Specified
Redemption Date may occur with respect to any Partnership Unit before one year after such Partnership Unit is issued by the Partnership. 
 “Subsidiary” shall mean, with respect to any Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity securities, or (ii) the
outstanding equity interests, are owned, directly or indirectly, by such Person. 
 “Substitute General
Partner” has the meaning set forth in Section 9.2. 
 “Substitute Limited Partner” shall
mean any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.6 hereof. 

“Surviving Partner” has the meaning set forth in Section 9.1(c) hereof. 

“Target Balance” shall have the meaning set forth in Section 5.5(a) hereof. 

“Transaction” has the meaning set forth in Section 9.1(b) hereof. 

“Transfer” has the meaning set forth in Section 9.5(a) hereof. 

“Treasury Regulations” means the regulations promulgated by the United States Department of the Treasury pursuant to and
in respect of provisions of the Code. 

  
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 “Unit Transaction” shall have the meaning set forth in
Section 7.7(f) hereof. 
 “Unvested Incentive Units” shall have the meaning set forth in
Section 4.3(e)(i) hereof. 
 “Valuation Date” shall mean the date of receipt by the General Partner
of a Notice of Redemption or, if such date is not a Business Day, the first Business Day thereafter. 
 “Value”
shall mean, with respect to a REIT Common Share, the average of the daily market price for the ten (10) consecutive trading days immediately preceding the Valuation Date. The market price for each such trading day shall be: (i) if the REIT
Common Shares are listed or admitted to trading on any securities exchange or the NASDAQ National Market System, the closing price, regular way, on such day, or if no such sale takes place on such day, the average of the closing bid and asked prices
on such day; (ii) if the REIT Common Shares are not listed or admitted to trading on any securities exchange or the NASDAQ National Market System, the last reported sale price on such day or, if no sale takes place on such day, the average of
the closing bid and asked prices on such day, as reported by a reliable quotation source designated by the General Partner; or (iii) if the REIT Common Shares are not listed or admitted to trading on any securities exchange or the NASDAQ
National Market System and no such last reported sale price or closing bid and asked prices are available, the average of the reported high bid and low asked prices on such day, as reported by a reliable quotation source designated by the General
Partner, or if there shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than ten (10) days prior to the date in question) for which prices have been
so reported; provided, however, that if there are no bid and asked prices reported during the ten (10) days prior to the date in question, the Value of the REIT Common Shares shall be determined by the General Partner acting in good faith on
the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate. If the REIT Common Shares Amount includes rights that a holder of REIT Common Shares would be entitled to receive, and the General Partner
acting in good faith determines that the value of such rights is not reflected in the Value of the REIT Common Shares determined as aforesaid, then the Value of such rights shall be determined by the General Partner acting in good faith on the basis
of such quotations and other information as it considers, in its reasonable judgment, appropriate. 
 “Vested LTIP
Units” shall have the meaning set forth in Section 4.3(e)(i) hereof. 
 “Vesting
Agreement” shall mean each or any, as the context implies, LTIP Unit Award Agreement entered into by a LTIP Unitholder upon acceptance of an award of LTIP Units under the Plan (as such agreement may be amended, modified or supplemented from
time to time). 

  
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 ARTICLE II 
 PARTNERSHIP CONTINUATION; ADMISSION OF LIMITED PARTNERS; 
 NAME;
PLACE OF BUSINESS AND REGISTERED AGENT 
 Section 2.1 CONTINUATION. The Partners hereby agree to continue
the Partnership pursuant to the provisions of the Act and upon the terms and conditions set forth in this Agreement. Except as expressly provided herein, the rights and obligations of the Partners and the administration and termination of the
Partnership shall be governed by the Act. The Partnership Interest of each Partner shall be personal property for all purposes. 

Section 2.2 CERTIFICATE OF LIMITED PARTNERSHIP; OTHER FILINGS. The General Partner shall prepare (or caused to be prepared),
execute, acknowledge, record and file at the expense of the Partnership, a Certificate of Limited Partnership and all requisite fictitious name statements and notices in such places and jurisdictions as may be required by the Act or necessary to
cause the Partnership to be treated as a limited partnership under, and otherwise to comply with, the laws of each state or other jurisdiction in which the Partnership conducts business. 

Section 2.3 ADDITIONAL LIMITED PARTNERS. The General Partner shall in timely fashion amend this Agreement and, if required by
the Act, the Certificate of Limited Partnership filed for record to reflect the admission pursuant to the terms of this Agreement of a Person as a Limited Partner. 
 Section 2.4 NAME, OFFICE AND REGISTERED AGENT. The name of the Partnership shall be Ashford Hospitality Prime Limited Partnership. The principal place of business of the Partnership shall be
at 14185 Dallas Parkway, Suite 1100, Dallas, Texas 75254. The General Partner may at any time change the location of such office, provided the General Partner gives notice to the Partners of any such change. The name and address of the
Partnership’s statutory agent for service of process on the Partnership in Texas is Ashford Prime OP General Partner LLC, 14185 Dallas Parkway, Suite 1100, Dallas, Texas 75254. The name and address of the Partnership’s statutory agent for
service of process on the Partnership in Delaware is Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808. 
 ARTICLE III 
 BUSINESS AND TERM OF PARTNERSHIP 

Section 3.1 BUSINESS. The purpose and nature of the business of the Partnership is to conduct any business that may lawfully
be conducted by a limited partnership organized pursuant to the Act; provided, however, that such business shall be limited to and conducted in such a manner as to permit the Company at all times to be qualified as a REIT under the Code, unless the
board of directors of the Company determines to cease to qualify as a REIT. To consummate the foregoing and to carry out the obligations of the Partnership in connection therewith or incidental thereto, the General Partner shall have the authority,
in accordance with and subject to the limitations set forth elsewhere in this Agreement, to make, enter into, perform and carry out any 

  
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arrangements, contracts or agreements of every kind for any lawful purpose, without limit as to amount or otherwise, with any corporation, association, partnership, limited liability company,
firm, trustee, syndicate, individual or any political or governmental division, subdivision or agency, domestic or foreign, and generally to make and perform agreements and contracts of every kind and description and to do any and all things
necessary or incidental to the foregoing for the protection and enhancement of the assets of the Partnership. 

Section 3.2 TERM. The Partnership as herein constituted shall continue in perpetuity and shall have perpetual existence, unless
earlier dissolved or terminated pursuant to law or the provisions of this Agreement. 
 ARTICLE IV 

CAPITAL CONTRIBUTIONS 
 Section 4.1 GENERAL PARTNER. The General Partner has not contributed, and shall not be required to contribute, cash or other assets to the capital of the Partnership. 

Section 4.2 LIMITED PARTNERS. The Limited Partners have contributed cash and their respective ownership interests in the Contributed
Property to the Partnership as identified on Exhibit A attached hereto. The Agreed Values of the Limited Partners’ proportionate ownership interest in the Contributed Properties as of the date of contribution are set forth on Exhibit
A attached hereto. 
 Section 4.3 ADDITIONAL CAPITAL CONTRIBUTIONS AND ISSUANCES OF ADDITIONAL PARTNERSHIP INTERESTS.
Except as provided in this Section 4.3 or in Section 4.4, the Partners shall have no preemptive or other right or obligation to make any additional Capital Contributions or loans to the Partnership. The General Partner or
Ashford Prime OP Limited Partner LLC may contribute additional capital or property to the Partnership, from time to time, and receive additional Partnership Interests in respect thereof, in the manner contemplated in this Section 4.3.

 (a) ISSUANCES OF ADDITIONAL PARTNERSHIP INTERESTS. 

(i) GENERAL. The General Partner is hereby authorized to cause the Partnership to issue such additional Partnership
Interests in the form of Common Partnership Units and Preferred Partnership Units for any Partnership purpose at any time or from time to time, to the Partners or to other Persons for such consideration and on such terms and conditions as shall be
established by the General Partner in its sole and absolute discretion, all without the approval of any of the Limited Partners. Any additional Partnership Interest issued thereby may be issued in one or more classes, or one or more series of any of
such classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, powers and duties senior to Limited Partnership Interests, all as shall be determined by the

  
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General Partner in its sole and absolute discretion and without the approval of any Limited Partner, subject to Delaware law, and all as may be set forth in an Exhibit to this Agreement, each of
which Exhibit shall be incorporated into and become part of this Agreement upon adoption by the General Partner, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such
class or series of Partnership Interests; (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions; (iii) the rights of each class or series of Partnership Interests upon dissolution and
liquidation of the Partnership and (iv) the right to vote; PROVIDED, HOWEVER, that no additional Partnership Interests shall be issued to the General Partner or Ashford Prime OP Limited Partner LLC unless: 

(ii)(1) (A) The additional Partnership Interests are issued in connection with an issuance of REIT Shares of or other
interests in the Company, all such that the economic interests are substantially similar to the designations, preferences and other rights of the additional Partnership Interests issued to the General Partner or Ashford Prime OP Limited Partner LLC
by the Partnership in accordance with this Section 4.3 and (B) the Company shall make, directly or through one or more Affiliates, a Capital Contribution to the Partnership in an amount equal to the proceeds raised or other property
received by the Company, directly or through one or more Affiliates, in connection with the issuance of such stock or other interests in the Company, (2) the additional Partnership Interests are issued in exchange for property owned by the
Company, the General Partner or Ashford Prime OP Limited Partner LLC, as the case may be, with a fair market value, as determined by the General Partner, in good faith, equal to the value of the Partnership Interests, or (3) the additional
Partnership Interests are issued to all Partners in proportion to their respective Common Percentage Interests or Preferred Percentage Interests, as applicable. 
 Without limiting the foregoing, the General Partner is expressly authorized to cause the Partnership to issue Common Partnership Units or Preferred Partnership Units for less than fair market value, so
long as the General Partner concludes in good faith that such issuance is in the best interests of the Company and the Partnership. 
 (b) UPON ISSUANCE OF ADDITIONAL SECURITIES. After the Effective Date, the Company shall not issue any additional REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to
Section 7.4 hereof) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares (collectively, “Additional Securities”) other than to all
holders of REIT Shares, unless (A) the General Partner shall cause the Partnership to issue to the Company or its Affiliates, Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having
designations, preferences and 

  
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other rights, all such that the economic interests are substantially similar to those of the Additional Securities, and (B) the Company contributes, directly or through one or more
Affiliates, the proceeds or other property received from the issuance of such Additional Securities and from any exercise of rights contained in such Additional Securities to the Partnership. 

Without limiting the foregoing, the Company may issue Additional Securities for less than fair market value, and as a result the General
Partner is expressly authorized to cause the Partnership to issue to the Company or its Affiliates corresponding Partnership Interests, so long as (x) the Company concludes in good faith that such issuance is in the best interests of the
Company and the Partnership, and (y) the Company, directly or through one or more Affiliates, contributes all proceeds or other property received from such issuance to the Partnership. For example, if the Company issues REIT Common Shares for a
cash purchase price and contributes, directly or through one or more Affiliates, all of the proceeds of such issuance to the Partnership as required hereunder, the Company or its Affiliates shall be issued a number of additional Common Partnership
Units equal to the product of (A) the number of such REIT Common Shares issued by the Company, the proceeds of which were so contributed, multiplied by (B) a fraction, the numerator of which is 100%, and the denominator of which is the
Conversion Factor in effect on the date of such contribution. 
 (c) CERTAIN DEEMED CONTRIBUTIONS OF PROCEEDS OF
ISSUANCE OF REIT SHARES. In connection with any and all issuances of REIT Shares, the Company, directly or through one or more Affiliates, shall contribute all of the proceeds raised in connection with such issuance to the Partnership as Capital
Contributions, PROVIDED THAT if the proceeds actually received and contributed by the Company or its Affiliates are less than the gross proceeds of such issuance as a result of any underwriter’s discount or other expenses paid or incurred in
connection with such issuance, then the Company, directly or through one or more Affiliates, shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the gross proceeds of such issuance and the Partnership
shall be deemed simultaneously to have paid such offering expenses in connection with the required issuance of additional Partnership Units to the Company or its Affiliates for such Capital Contributions pursuant to Section 4.3(a)
hereof. The provisions of this Section 4.3(c) shall also apply with respect to the cash contributed to the Company on the Effective Date with respect to the proceeds of 12,250,782 shares of common stock of Ashford Hospitality Trust, Inc.
issued in June 2013 and July 2013 and the related offering expenses. 
 (d) LTIP UNITS. The General Partner may
from time to time issue LTIP Units to Persons who provide services to the Partnership, for such consideration as the General Partner may determine to be appropriate, and admit such Persons as Limited Partners. The Capital Accounts of such LTIP
Unitholders shall be credited with the amount of their respective Capital 

  
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Contributions pursuant to Section 5.3. Except to the extent a Capital Contribution is made with respect to an LTIP Unit, an LTIP Unit is intended to qualify as a “profits
interest” in the Partnership. Subject to the provisions of Sections 4.3(d) and 4.3(e) and the special provisions of Sections 5.5, 7.7 and 7.8, LTIP Units shall be treated as Common Partnership Units, with all
of the rights, privileges and obligations attendant thereto. For purposes of computing the Common Percentage Interests, holders of LTIP Units shall be treated as Common Partnership Unitholders and LTIP Units shall be treated as Common Partnership
Units. In particular, the Partnership shall comply with the following procedures: 
 (i) If an Adjustment Event
(as defined below) occurs, then the General Partner shall make a corresponding adjustment to the LTIP Units to maintain a one-for-one conversion and economic equivalence ratio between Common Partnership Units and LTIP Units. The following shall be
“Adjustment Events”: (A) the Partnership makes a distribution on all outstanding Common Partnership Units in Partnership Units, (B) the Partnership subdivides the outstanding Common Partnership Units into a greater
number of units or combines the outstanding Common Partnership Units into a smaller number of units, or (C) the Partnership issues any Partnership Units in exchange for its outstanding Common Partnership Units by way of a reclassification or
recapitalization of its Common Partnership Units. If more than one Adjustment Event occurs, the adjustment to the LTIP Units need be made only once using a single formula that takes into account each and every Adjustment Event as if all Adjustment
Events occurred simultaneously. For the avoidance of doubt, the following shall not be Adjustment Events: (x) the issuance of Partnership Units in a financing, reorganization, acquisition or other similar business transaction, (y) the
issuance of Partnership Units pursuant to any employee benefit or compensation plan or distribution reinvestment plan, or (z) the issuance of any Partnership Units to Ashford Prime OP Limited Partner LLC in respect of a capital contribution to
the Partnership of proceeds from the sale of securities by the Company. If the Partnership takes an action affecting the Common Partnership Units other than actions specifically described above as “Adjustment Events” and in the opinion of
the General Partner such action would require an adjustment to the LTIP Units to maintain the one-to-one correspondence described above, the General Partner shall have the right to make such adjustment to the LTIP Units, to the extent permitted by
law and by the Plan, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances. If an adjustment is made to the LTIP Units as herein provided the Partnership shall
promptly file in the books and records of the Partnership an officer’s certificate setting forth such adjustment and a brief statement of the facts requiring such adjustment, which certificate shall be conclusive evidence of the correctness of
such adjustment absent manifest error. Promptly after filing of such certificate, the Partnership shall mail a notice to each LTIP 

  
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Unitholder setting forth the adjustment to his or her LTIP Units and the effective date of such adjustment; and 

(ii) Subject to the provisions of Section 10.4, the LTIP Unitholders shall, in respect of each Distribution
Payment Date, when, as and if authorized and declared by the General Partner out of assets legally available for that purpose, be entitled to receive distributions in an amount per LTIP Unit equal to the distributions per Common Partnership Unit
(the “Common Partnership Unit Distribution”), paid to holders of record on the same Partnership Record Date established by the General Partner with respect to such Distribution Payment Date. The term “Newly Issued Common Partnership
Unit” shall be deemed to include LTIP Units issued during a Common Partnership Unit Distribution Period and Section 8.1(a) shall apply in full to LTIP Units. During any Common Partnership Unit Distribution Period, so long as any
LTIP Units are outstanding, except upon liquidation of the Partnership and as provided in the following sentence and Section 10.4, no distributions (whether in cash or in kind) shall be authorized, declared or paid on Common Partnership
Units, unless equal distributions have been or contemporaneously are authorized, declared and paid on the LTIP Units for such Common Partnership Unit Distribution Period. 

The LTIP Units shall rank pari passu with the Common Partnership Units as to the payment of regular and special periodic
or other distributions and distribution of assets upon liquidation, dissolution or winding up, provided upon liquidation the amount distributed with respect to a LTIP Unit shall be limited to the related Capital Account balance as provided by
Section 10.4. As to the payment of distributions and as to distribution of assets upon liquidation, dissolution or winding up, any class or series of Partnership Units or Partnership Interests which by its terms specifies that it shall
rank junior to, on a parity with, or senior to the Common Partnership Units shall also rank junior to, or pari passu with, or senior to, as the case may be, the LTIP Units. Subject to the terms of any Vesting Agreement, a LTIP Unitholder shall be
entitled to transfer his or her LTIP Units to the same extent, and subject to the same restrictions as holders of Common Partnership Units are entitled to transfer their Common Partnership Units pursuant to Article IX. 

(e) TERMS OF LTIP UNITS. LTIP Units shall be subject to the following special provisions: 

(i) VESTING AGREEMENTS. LTIP Units may, in the sole discretion of the General Partner, be issued subject to vesting,
forfeiture and additional restrictions on transfer pursuant to the terms of a Vesting Agreement. The terms of any Vesting Agreement may be modified by the General Partner from time to time in its sole discretion, subject to any restrictions on
amendment imposed by the relevant Vesting Agreement or by the Plan, if applicable. LTIP Units that have vested under the terms of 

  
 17 

 
a Vesting Agreement are referred to as “Vested LTIP Units”; all other LTIP Units shall be treated as “Unvested Incentive Units.” 

(ii) FORFEITURE. Unless otherwise specified in the Vesting Agreement, upon the occurrence of any event specified in a
Vesting Agreement as resulting in the right of the Partnership to repurchase LTIP Units at a specified purchase price or some other forfeiture of any LTIP Units, then if the Partnership exercises such right to repurchase or forfeiture in accordance
with the applicable Vesting Agreement, then the relevant LTIP Units shall immediately, and without any further action, be treated as cancelled and no longer outstanding for any purpose. Unless otherwise specified in the Vesting Agreement, no
consideration or other payment shall be due with respect to any LTIP Units that have been forfeited, other than any distributions declared with respect to a Partnership Record Date prior to the effective date of the forfeiture. In connection with
any repurchase or forfeiture of LTIP Units, the balance of the portion of the Capital Account of the LTIP Unitholder that is attributable to all of his or her LTIP Units shall be reduced by the amount, if any, by which it exceeds the Target Balance
contemplated by Section 5.5, calculated with respect to the LTIP Unitholder’s remaining LTIP Units, if any, with such reduction being accomplished by an allocation of gross deductions or losses to the applicable LTIP Unitholder.

 (iii) ALLOCATIONS. LTIP Units shall generally be treated as Common Partnership Units for purposes of
Article V, but LTIP Unitholders shall also be entitled to certain special allocations of gain under Section 5.5. 
 (iv) REDEMPTION. The Redemption Right provided to Limited Partners under Section 7.4 shall not apply with respect to LTIP Units unless and until they are converted to Common Partnership Units
as provided in clause (vi) below and Section 7.7. 
 (v) LEGEND. Any certificate evidencing an
LTIP Unit shall bear an appropriate legend indicating that additional terms, conditions and restrictions on transfer, including without limitation any Vesting Agreement, apply to the LTIP Unit. 

(vi) CONVERSION TO COMMON PARTNERSHIP UNITS. Vested LTIP Units are eligible to be converted into Common Partnership Units
under Section 7.7. 
 (vii) VOTING. LTIP Units shall have the voting rights provided in
Section 7.8. 
 (viii) ISSUANCE. An LTIP Unit shall be considered issued to an LTIP Unitholder upon
the later to occur of: (i) execution of a 

  
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counterpart signature page to this Agreement, unless such Person is already a Limited Partner, (ii) execution by such LTIP Unitholder and the Partnership of a Vesting Agreement with respect
to such LTIP Unit, if applicable, and (iii) payment to the Partnership of the Capital Contribution, if any, provided for in the related Vesting Agreement. 
 Section 4.4 ADDITIONAL FUNDING. If the General Partner determines that it is in the best interests of the Partnership to provide for additional Partnership funds
(“Additional Funds”) for any Partnership purpose, the General Partner may (i) cause the Partnership to obtain such funds from outside borrowings, or (ii) elect to have the General Partner provide such Additional
Funds to the Partnership through loans or otherwise. 
 Section 4.5 INTEREST. No interest shall be
paid on the Capital Contribution of any Partner. 
 Section 4.6 RETURN OF CAPITAL. Except as expressly provided in
this Agreement, no Partner shall be entitled to demand or receive the return of his Capital Contribution. 
 Section 4.7
PERCENTAGE INTEREST. If the number of outstanding Common Partnership Units increases or decreases during a taxable year, the General Partner shall adjust each holder of Common Partnership Units’ Percentage Interest, as reflected on
Exhibit A, to a percentage equal to the number of Common Partnership Units held by such Partner divided by the aggregate number of outstanding Common Partnership Units. 
 ARTICLE V 
 PROFITS, LOSSES AND ACCOUNTING 

Section 5.1 ALLOCATION OF PROFITS AND LOSSES. Except as otherwise provided herein or in Exhibit B, profits earned and
losses incurred by the Partnership shall be allocated among the Partners as follows: 
 (a) Profits for each year
shall be allocated among the Partners, and shall be credited to the respective Capital Accounts of the Partners, in the following order and priority: 
 (i) First, items of gross income to the holders of Preferred Partnership Units in the amount necessary so that the cumulative amount of gross income allocated to holders of Preferred Partnership Units
pursuant to this Section 5.1(a)(i) is equal to the cumulative amount of distributions of Preferred Return (as defined, for each series of Preferred Partnership Units, in the exhibit to this Agreement setting forth the terms of such
Preferred Partnership Units) distributed to holders of Preferred Partnership Units; 

  
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 (ii) Second, to the Partners to the extent of losses, in the proportions and
in the reverse order in which losses were allocated to them pursuant to Section 5.1(b), until the cumulative amounts allocated to each Partner pursuant to this Section 5.1(a)(ii) are equal to the cumulative losses so
allocated to such Partner; 
 (iii) Third, any remaining profits shall be allocated to the holders of Common
Partnership Units in accordance with their Common Percentage Interests. 
 (b) Losses for each year shall be
allocated among the Partners, and shall be debited to the respective Capital Accounts of the Partners, in the following order and priority: 
 (i) First, to the holders of Common Partnership Units pro rata in accordance with, and to the extent of, the positive balances in their Adjusted Capital Account Balances (as defined in Exhibit B
hereto) attributable to Common Partnership Units; 
 (ii) Second, to the holders of Preferred Partnership Units
pro rata in accordance with, and to the extent of, the positive balances in their Adjusted Capital Account Balances (as defined in Exhibit B hereto) attributable to Preferred Partnership Units; and 

(iii) Thereafter any remaining losses will be allocated to the holders of Common Partnership Units in accordance with
their Common Percentage Interests. 
 (c) If the Partnership issues additional Partnership Units pursuant to the
provisions of this Agreement, the General Partner is hereby authorized to make revisions to this Section 5.1 as it determines are necessary or desirable to reflect the terms of the issuance of such additional Partnership Units,
including, without limitation, making preferential allocations to certain classes of Partnership Units. For purposes of determining the income, gain, loss, deduction or any other items allocable to any period, income, gain, loss, deduction, and any
such other items shall be determined on a daily, monthly, or other basis, as determined by the General Partner using any permissible method under Code Section 706 and the Treasury Regulations thereunder. 

(d) Notwithstanding the provisions of Section 5.1(a) and Section 5.1(b), upon liquidation of the
Partnership or upon redemption of any redeemable Preferred Partnership Units, items of gross income and/or items of deduction or loss shall be allocated to the holder of the Preferred Partnership Units and/or the Common Partnership Units, such that
the Capital Accounts attributable to the Preferred Partnership Units equal, after all allocations of profit and loss are completed, the amount to be distributed to the Preferred Partnership Units. 

Section 5.2 ACCOUNTING. 

  
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 (a) The books of the Partnership shall be kept on the accrual basis and in
accordance with generally accepted accounting principles consistently applied. 
 (b) The fiscal year of the
Partnership shall be the calendar year. 
 (c) The terms “profits” and “losses,” as used
herein, shall mean all items of income, gain, expense or loss as determined utilizing federal income tax accounting principles and shall also include each Partner’s share of income described in Section 705(a)(1)(B) of the Code, any
expenditures described in Section 705(a)(2)(B) of the Code, any expenditures described in Section 709(a) of the Code which are not deducted or amortized in accordance with Section 709(b) of the Code, losses not deductible pursuant to
Sections 267(a) and 707(b) of the Code and adjustments made pursuant to Exhibit B attached hereto. 
 (d)
The General Partner shall be the Tax Matters Partner of the Partnership within the meaning of Section 6231(a)(7) of the Code. As Tax Matters Partner, the General Partner shall have the right and obligation to take all actions authorized and
required, respectively, by the Code for the Tax Matters Partner. The General Partner shall have the right to retain professional assistance in respect of any audit of the Partnership by the IRS, and all out-of-pocket expenses and fees incurred by
the General Partner on behalf of the Partnership as Tax Matters Partner shall constitute Operating Expenses of the Partnership. If the General Partner receives notice of a final Partnership adjustment under Section 6223(a)(2) of the Code, the
General Partner shall either (i) file a court petition for judicial review of such final adjustment within the period provided under Section 6226(a) of the Code, a copy of which petition shall be mailed to each Limited Partner on the date
such petition is filed, or (ii) mail a written notice to each Limited Partner, within such period, that describes the General Partner’s reasons for determining not to file such a petition. 

(e) Except as specifically provided herein, all elections required or permitted to be made by the Partnership under the
Code shall be made by the General Partner in its sole discretion. 
 (f) Any Partner shall have the right to a
private audit of the books and records of the Partnership, provided such audit is made at the expense of the Partner desiring it, and it is made during normal business hours. 

(g) The Partners agree that the Partnership shall be authorized and directed to make the Safe Harbor Election and the
Partnership and each Partner (including any person to whom Partnership Interest is transferred in connection with the performance of services) agrees to comply with all requirements of the Safe Harbor with respect to all Partnership Interests
transferred in connection with the performance of services while the Safe Harbor Election remains effective. The General Partner, as the Tax Matters Partner, shall be authorized to (and shall) prepare, execute, and file the Safe Harbor Election.

  
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 Section 5.3 PARTNERS’ CAPITAL ACCOUNTS. 

(a) There shall be maintained a Capital Account for each Partner in accordance with this Section 5.3 and the
principles set forth in Exhibit B attached hereto and made a part hereof. The amount of cash and the Agreed Value of property contributed to the Partnership by each Partner, net of liabilities assumed by the Partnership or securing property
contributed by such Partner, shall be credited to its Capital Account, and from time to time, but not less often than annually, the share of each Partner in profits, losses and fair market value of distributions shall be credited or charged to its
Capital Account. The determination of Partners’ Capital Accounts, and any adjustments thereto, shall be made consistent with tax accounting and other principles set forth in Section 704(b) of the Code and applicable Treasury Regulations
thereunder and Exhibit B attached hereto. 
 (b) Except as otherwise specifically provided herein, in a
deficit restoration obligation agreement or in a guarantee of a Partnership liability, signed by a Limited Partner, no Limited Partner shall be required to make any further contribution to the capital of the Partnership to restore a loss, to
discharge any liability of the Partnership or for any other purpose, nor shall any Limited Partner personally be liable for any liabilities of the Partnership or of the General Partner except as provided by law or this Agreement. All Limited
Partners hereby waive their right of contribution which they may have against other Partners in respect of any payments made by them under any guarantee of Partnership debt. 

(c) Immediately following the transfer of any Partnership Interest, the Capital Account of the transferee Partner shall be
equal to the Capital Account of the transferor Partner attributable to the transferred interest. 
 (d) For
purposes of computing the amount of any item of income, gain, deduction or loss to be reflected in the Partners’ Capital Accounts, the determination, recognition and classification of any such item shall be the same as its determination,
recognition and classification for federal income tax purposes, taking into account any adjustments required pursuant to Section 704(b) of the Code and the applicable Treasury Regulations thereunder as more fully described in Exhibit B
attached hereto. 
 (e) The provisions of the Agreement relating to the maintenance of Capital Accounts are
intended to comply with Treasury Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner consistent with such Treasury Regulations. If the General Partner shall determine that it is prudent to modify the manner in which
the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to liabilities which are secured by contributed or distributed property or which are assumed by the Partnership, the General Partner,
or the Limited Partners) are computed in order to comply with such Treasury Regulations, the General Partner may make such modification, provided that it is not likely to have a material effect on the amounts

  
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distributable to any Person upon the dissolution of the Partnership. The General Partner also shall (i) make any adjustments that are necessary or appropriate to maintain equality between
the Capital Accounts of the Partners and the amount of Partnership capital reflected on the Partnership’s balance sheet, as computed for book purposes, in accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(q) and (ii) make
appropriate modifications if unanticipated events might otherwise cause this Agreement not to comply with Treasury Regulations Section 1.704-1(b) or 1.704-2. 
 Section 5.4 SECTION 754 ELECTIONS. The General Partner shall elect, pursuant to Section 754 of the Code, to adjust the basis of the Partnership’s assets for (i) all transfers of
Partnership Interests, and (ii) any distribution of Company property as described in Section 734 of the Code, if such election would benefit any Partner or the Partnership. 

Section 5.5 SPECIAL ALLOCATION OF GAIN TO LTIP UNITHOLDERS. Notwithstanding the provisions of Section 5.1 above,
but subject to the prior allocation of income, gain, deduction and loss under the terms of the Agreement in respect of any class of Partnership Interests ranking senior to the LTIP Units with respect to return of capital or any preferential or
priority return, any net capital gains realized in connection with the actual or hypothetical sale of all or substantially all of the assets of the Partnership, including but not limited to net capital gain realized in connection with an adjustment
to the Carrying Value of Partnership assets under Section 704(b) of the Code, shall first be allocated to the LTIP Unitholders until the Economic Capital Account Balances of such Limited Partners, to the extent attributable to their ownership
of LTIP Units, are equal to (i) the Common Partnership Unit Economic Balance, multiplied by (ii) the number of their LTIP Units. For this purpose, the “Economic Capital Account Balances” of the LTIP Unitholders will
be equal to their Capital Account balances, plus the amount of their shares of any Partner Minimum Gain or Partnership Minimum Gain, in each case to the extent attributable to their ownership of LTIP Units. Similarly, the “Common
Partnership Unit Economic Balance” shall mean (i) the Capital Account Balance of Ashford Prime OP Limited Partner LLC, plus the amount of Ashford Prime OP Limited Partner LLC’s share of any Partner Minimum Gain or Partnership
Minimum Gain, in either case to the extent attributable to Ashford Prime OP Limited Partner LLC’s ownership of Common Partnership Units and computed on a hypothetical basis after taking into account all allocations under Article V
through the date on which any allocation is made under this Section 5.5, divided by (ii) the number of Ashford Prime OP Limited Partner LLC’s Partnership Common Partnership Units (with respect to each holder, the
“Target Balance”). Any such allocations shall be made among the LTIP Unitholders in proportion to the amounts required to be allocated to each under this Section 5.5, provided, however, that no amounts will be
allocated with respect to any particular LTIP Unit (each, an “Ineligible Unit”) until all special allocations pursuant to Part A of Exhibit B with respect to such LTIP Unit have been reversed to the
extent required by paragraph 10 of Part A of Exhibit B. If, notwithstanding the foregoing, not all LTIP Units (including Ineligible Units) are fully booked up, an LTIP Unitholder may determine how net capital
gains shall be allocated among such LTIP Unitholder’s LTIP Units (other than Ineligible Units); provided, however, if such LTIP Unitholder does not 

  
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make such a determination, net capital gains shall generally be allocated so that the Economic Capital Account Balance of the maximum amount of Vested LTIP Units held by such LTIP Unitholder is
equal to the Common Partnership Unit Economic Balance on a per LTIP Unit basis; provided, further, that such net capital gains may only be allocated to LTIP Units that are held by such LTIP Unitholder on the date of the allocation under this
Section 5.5. The parties agree that the intent of this Section 5.5 is to make the Capital Account balances of the LTIP Unitholders with respect to their LTIP Units economically equivalent to the Capital Account balance of
Ashford Prime OP Limited Partner LLC (on a per-Partnership Unit basis) with respect to its Common Partnership Units. 

ARTICLE VI 

POWERS, DUTIES, LIABILITIES, COMPENSATION AND VOTING OF GENERAL PARTNER 

Section 6.1 POWERS OF GENERAL PARTNER. Notwithstanding any provision of this Agreement to the contrary, the General
Partner’s discretion and authority are subject to the limitations imposed by law, and by the General Partner’s Articles of Organization and operating agreement. Subject to the foregoing and to other limitations imposed by this Agreement,
the General Partner shall have full, complete and exclusive discretion to manage and control the business and affairs of the Partnership and make all decisions affecting the business and assets of the Partnership. Without limiting the generality of
the foregoing (but subject to the restrictions specifically contained in this Agreement), the General Partner shall have the power and authority to take the following actions on behalf of the Partnership: 

(a) to acquire, purchase, own, manage, operate, lease and dispose of any real property and any other property or assets
that the General Partner determines are necessary or appropriate or in the best interests of conducting the business of the Partnership in each case not inconsistent with the Company’s qualification as a REIT; 

(b) to construct buildings and make other improvements (including renovations) on or to the properties owned or leased by
the Partnership; 
 (c) to borrow money for the Partnership, issue evidences of indebtedness in connection
therewith, refinance, guarantee, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any indebtedness or obligation of or to the Partnership, and secure such indebtedness by mortgage, deed of trust,
pledge or other lien on the Partnership’s assets; 
 (d) to pay, either directly or by reimbursement, for
all Operating Expenses to third parties or to the General Partner (as set forth in this Agreement); 
 (e) to
lease all or any portion of any of the Partnership’s assets, whether or not the terms of such leases extend beyond the termination date of the 

  
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Partnership and whether or not any portion of the Partnership’s assets so leased are to be occupied by the lessee, or, in turn, subleased in whole or in part to others, for such
consideration and on such terms as the General Partner may determine; 
 (f) to prosecute, defend, arbitrate, or
compromise any and all claims or liabilities in favor of or against the Partnership, on such terms and in such manner as the General Partner may reasonably determine, and similarly to prosecute, settle or defend litigation with respect to the
Partners, the Partnership, or the Partnership’s assets; provided, however, that the General Partner may not, without the consent of all of the Partners, confess a judgment against the Partnership; 

(g) to file applications, communicate, and otherwise deal with any and all governmental agencies having jurisdiction over,
or in any way affecting, the Partnership’s assets or any other aspect of the Partnership business; 
 (h) to
make or revoke any election permitted or required of the Partnership by any taxing authority; 
 (i) to maintain
such insurance coverage for public liability, fire and casualty, and any and all other insurance for the protection of the Partnership, for the conservation of Partnership assets, or for any other purpose convenient or beneficial to the Partnership,
in such amounts and such types as the General Partner shall determine from time to time; 
 (j) to determine
whether or not to apply any insurance proceeds for any Property to the restoration of such Property or to distribute the same; 
 (k) to retain providers of services of any kind or nature in connection with the Partnership business and to pay therefor such reasonable remuneration as the General Partner may deem proper, including the
Advisor; 
 (l) to negotiate and conclude agreements on behalf of the Partnership with respect to any of the
rights, powers and authority conferred upon the General Partner, including, without limitation, management agreements, franchise agreements, agreements with federal, state or local liquor licensing agencies and agreements with operators of
restaurants and bars; 
 (m) to maintain accurate accounting records and to file promptly all federal, state and
local income tax returns on behalf of the Partnership; 
 (n) to form or acquire an interest in, and contribute
property to, any further limited or general partnerships, joint ventures or other relationships that it deems desirable (including, without limitation, the acquisition of interests in, and the contributions of property to, its Subsidiaries and any
other Person in which it has an equity interest from time to time); 

  
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 (o) to distribute Partnership cash or other Partnership assets in accordance
with this Agreement; 
 (p) to establish Partnership reserves for working capital, capital expenditures,
contingent liabilities or any other valid Partnership purpose; 
 (q) to authorize, issue, sell, redeem or
otherwise purchase any Partnership Interests or any securities (including secured and unsecured debt obligations of the Partnership, debt obligations of the Partnership convertible into any class or series of Partnership Interests, or options,
rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership; 
 (r) subject
to the provisions of Section 9.1, to merge, consolidate or combine the Partnership with or into another Person (to the extent permitted by applicable law); 

(s) to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a
“publicly traded partnership” for purposes of Section 7704 of the Code; 
 (t) to issue additional
Partnership Interests pursuant to Section 4.3 hereof; 
 (u) to pay cash to redeem Partnership Units
held by a Limited Partner in connection with a Limited Partner’s exercise of its Redemption Right under Section 7.4 hereof; 
 (v) to amend and restate Exhibit A hereto to reflect accurately at all times the Capital Contributions, Common Percentage Interests and Preferred Percentage Interests of the Partners as the same
are adjusted from time to time to the extent necessary to reflect redemptions, Capital Contributions, the issuance of Partnership Units, the admission of any Additional Limited Partner or any Substitute Limited Partner or otherwise, which amendment
and restatement, notwithstanding anything in this Agreement to the contrary, shall not be deemed an amendment to this Agreement, as long as the matter or event being reflected in Exhibit A hereto otherwise is authorized by this Agreement;

 (w) to take whatever action the General Partner deems appropriate to maintain the economic equivalency of
Common Partnership Units and REIT Common Shares and Preferred Partnership Units and REIT Preferred Shares, respectively; and 
 (x) to take such other action, execute, acknowledge, swear to or deliver such other documents and instruments, and perform any and all other acts the General Partner deems necessary or appropriate for the
formation, continuation and conduct of the business and affairs of the Partnership (including, without limitation, all actions consistent with qualification of the Company as a 

  
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REIT) and to possess and enjoy all of the rights and powers of a general partner as provided by the Act. 
 Each of the Limited Partners agrees that the General Partner is authorized to execute, deliver and perform the above-mentioned agreements and transactions on behalf of the Partnership without any further
act, approval or vote of the Partners, notwithstanding any other provisions of this Agreement (except as provided in Section 6.1(r), Section 9.1 or Article XI), the Act or any applicable law, rule or regulation to the
fullest extent permitted under the Act or other applicable law, rule or regulation. The execution, delivery or performance by the General Partner or the Partnership of any agreement authorized or permitted under this Agreement shall not constitute a
breach by the General Partner of any duty that the General Partner may owe the Partnership or the Limited Partners or any other persons under this Agreement or of any duty stated or implied by law or equity. 

Except as otherwise provided herein, to the extent the duties of the General Partner require expenditures of funds to be paid to third parties, the
General Partner shall not have any obligations hereunder except to the extent that Partnership funds are reasonably available to it for the performance of such duties, and nothing herein contained shall be deemed to authorize or require the General
Partner, in its capacity as such, to expend its individual funds for payment to third parties or to undertake any individual liability or obligation on behalf of the Partnership. 

Section 6.2 DELEGATION OF AUTHORITY. The General Partner may delegate any or all of its powers, rights and obligations
hereunder, and may appoint, employ, contract or otherwise deal with any Person for the transaction of the business of the Partnership, which Person may, under supervision of the General Partner, perform any acts or services for the Partnership as
the General Partner may approve. 
 Section 6.3 DUTIES OF GENERAL PARTNER. 

(a) The General Partner, subject to the limitations contained elsewhere in this Agreement, shall manage or cause to be
managed the affairs of the Partnership in a prudent and businesslike manner and shall devote sufficient time and effort to the Partnership affairs. 
 (b) In carrying out its obligations, the General Partner shall: 

(i) Render annual reports to all Partners with respect to the operations of the Partnership; 

(ii) Mail to all persons who were Partners at any time during the Partnership’s prior fiscal year an annual report of
the Partnership, including all necessary tax information, and any other information regarding the Partnership and its operations during the prior fiscal year deemed by the General Partner to be material; 

  
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 (iii) Maintain complete and accurate records of all business conducted by
the Partnership and complete and accurate books of account (containing such information as shall be necessary to record allocations and distributions), and make such books of account available for inspection and audit by any Limited Partner (at the
sole expense of such Limited Partner) to the extent provided in Section 7.1(b); and 
 (iv) Cause to be
filed such certificates and do such other acts as may be required by law to qualify and maintain the Partnership as a limited partnership under the laws of the State of Delaware. 

(c) The General Partner shall take such actions as it deems necessary to maintain the economic equivalency of Common
Partnership Units and REIT Common Shares and Preferred Partnership Units and REIT Preferred Shares, respectively, required by this Agreement. 
 Section 6.4 LIABILITIES OF GENERAL PARTNER; INDEMNIFICATION. 
 (a) The General Partner shall not be liable for the return of all or any part of the Capital Contributions of the Limited Partners. Any returns shall be made solely from the assets of the Partnership
according to the terms of this Agreement. 
 (b) Notwithstanding anything to the contrary set forth in this
Agreement, none of the General Partner or the Company nor any of their officers, directors, agents or employees shall be liable or accountable in damages or otherwise to the Partnership, any Partners or any assignees, or any of their successors or
assigns, for any losses sustained, liabilities incurred or benefits not derived as a result of errors in judgment or mistakes of fact or law or any act or omission if the General Partner acted in good faith. The General Partner shall not be
responsible for any misconduct or negligence on the part on any agent appointed by it in good faith pursuant to Section 6.2 hereof. The Limited Partners expressly acknowledge that the General Partner is acting on behalf of the
Partnership, the General Partner, the General Partner’s members and the Company’s stockholders collectively, and that the General Partner is under no obligation to consider the separate interests of the Limited Partners (including, without
limitation, the tax consequences to Limited Partners or their assignees) in deciding whether to cause the Partnership to take (or decline to take) any actions. In the event of a conflict between the interests of the members of the General Partner or
stockholders of the Company on one hand and the Limited Partners on the other, the General Partner shall endeavor in good faith to resolve the conflict in a manner not adverse to either the stockholders of the Company or the Limited Partners;
provided, however, that for so long as the Company owns a controlling interest, directly or indirectly, in the Partnership, any such conflict that cannot be resolved in a manner not adverse to either the stockholders of the Company or the Limited
Partners shall be resolved in favor of the stockholders of the Company. The General Partner shall not be liable for monetary damages for losses sustained, 

  
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liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, provided that the General Partner has acted in good faith. 

(c) The Partnership shall indemnify an Indemnitee to the fullest extent permitted by law and save and hold it harmless
from and against, and in respect of, any and all losses, claims, damages, liabilities (joint or several), expenses (including legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Partnership as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved, as a party or
otherwise; provided, however, that this indemnification shall not apply if: (A) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and either was committed in bad faith or was the result of active and
deliberate dishonesty; (B) the Indemnitee actually received an improper personal benefit in money, property or services; or (C) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission
was unlawful. The termination of any proceeding by judgment, order or settlement does not create a presumption that the Indemnitee did not meet the requisite standard of conduct set forth in this Section 6.4(c). The termination of any
proceeding by conviction or upon a plea of nolo contendere or its equivalent, or an entry of an order of probation prior to judgment, creates a rebuttable presumption that the Indemnitee acted in a manner contrary to that specified in this
Section 6.4(c). Any indemnification pursuant to this Section 6.4 shall be made only out of the assets of the Partnership, and any insurance proceeds from the liability policy covering the General Partner and any Indemnitee.

 (d) The Partnership may reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a
party to a proceeding in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s good faith belief that the standard of conduct necessary for
indemnification by the Partnership as authorized in this Section 6.4 has been met, and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be determined that the standard of
conduct has not been met. 
 (e) The indemnification provided by this Section 6.4 shall be in
addition to any other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in
such capacity. 
 (f) The Partnership may purchase and maintain insurance on behalf of the Indemnitees, and such
other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership’s activities, regardless of

  
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whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement. 

(g) For purposes of this Section 6.4, the Partnership shall be deemed to have requested an Indemnitee to serve
as fiduciary of an employee benefit plan whenever the performance by the Indemnitee of its duties to the Partnership also imposes duties on, or otherwise involves services by, the Indemnitee to the plan or participants or beneficiaries of the plan;
excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.4; and actions taken or omitted by the Indemnitee with respect to an
employee benefit plan in the performance of its duties for a purpose reasonably believed by the Indemnitee to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best
interests of the Partnership. 
 (h) In no event may an Indemnitee subject the Limited Partners to personal
liability by reason of the indemnification provisions set forth in this Agreement. 
 (i) An Indemnitee shall not
be denied indemnification in whole or in part under this Section 6.4 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of
this Agreement. 
 (j) Any amendment, modification or repeal of this Section 6.4 or any provision
hereof shall be prospective only and shall not in any way affect the limitations on the General Partner’s liability to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately prior to such amendment,
modification or repeal with respect to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be asserted. The provisions of this
Section 6.4 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons. 

(k) Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the
Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the
Company to continue to qualify as a REIT, or (ii) to prevent the Company from incurring any taxes under Section 857 or Section 4981 of the Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited
Partners. Further, any provision of this Agreement that might jeopardize the Company’s REIT status shall be (i) void and of no effect, or (ii) reformed, as necessary, to avoid the Company’s loss of REIT status. 

  
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 Section 6.5 COMPENSATION OF GENERAL PARTNER; REIMBURSEMENT. The General Partner,
as such, shall not receive any compensation for services rendered to the Partnership. Notwithstanding the preceding sentence, the General Partner shall be entitled, in accordance with the provisions of Section 6.7 below, to pay
reasonable compensation to its Affiliates and other entities in which it may be associated for services performed. The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and
absolute discretion, for all REIT Expenses. 
 Section 6.6 RELIANCE ON ACT OF GENERAL PARTNER. No financial
institution or any other person, firm or corporation dealing with the General Partner or the Partnership shall be required to ascertain whether the General Partner is acting in accordance with this Agreement, but such financial institution or such
other person, firm or corporation shall be protected in relying solely upon the assurance of and the execution of any instrument or instruments by the General Partner. 
 Section 6.7 OUTSIDE SERVICES; DEALINGS WITH AFFILIATES; OUTSIDE ACTIVITIES. 
 (a) Notwithstanding any provision of this Article VI to the contrary, the General Partner may employ such agents, accountants, attorneys and others as it shall deem advisable, including its
directors, officers, members, and its Affiliates and entities with which the General Partner, any Limited Partner or their respective Affiliates may be associated, the Company’s directors, officers and stockholders, and may pay them reasonable
compensation from Partnership funds for services performed, which compensation shall be reasonably believed by the General Partner to be comparable to and competitive with fees charged by unrelated Persons who render comparable services which could
reasonably be made available to the Partnership. The General Partner shall not be liable for the neglect, omission or wrongdoing of any such Person so long as it appointed such Person in good faith. 

(b) The Partnership may lend or contribute to its Subsidiaries or other Persons in which it has an equity investment
Partnership funds on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person. 

(c) The Partnership may transfer assets to joint ventures, other partnerships, corporations or other business entities in
which it is or thereby becomes a participant upon such terms and subject to such conditions as are consistent with this Agreement and applicable law. 
 (d) Except as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates nor any Limited Partner shall sell, transfer or convey any property to, or purchase any property
from, the 

  
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Partnership, directly or indirectly, except pursuant to transactions that are on terms that are fair and reasonable to the Partnership. 

(e) Subject to the Articles of Organization and any agreements entered into by the General Partner or its Affiliates with
the Partnership or a Subsidiary, any officer, director, employee, agent, trustee, Affiliate or member of the General Partner shall be entitled to and may have business interests and engage in business activities in addition to those relating to the
Partnership, including business interests and activities substantially similar or identical to those of the Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by virtue of this Agreement in any business
ventures of such person. 
 (f) If the Company exercises its rights under its Articles of Incorporation to redeem
REIT Common Shares, then the General Partner shall cause the Partnership to purchase from the Company a number of Common Partnership Units determined based on the application of the Conversion Factor on the same terms as those on which the Company
redeemed such REIT Common Shares. 
 Section 6.8 ADDITIONAL LOANS TO THE PARTNERSHIP. If additional funds are
required by the Partnership for any purpose relating to the business of the Partnership or for any of its obligations, expenses, costs, or expenditures, including operating deficits, the Partnership may borrow such funds as are needed from time to
time from any Person (including, without limitation, the General Partner or any Affiliate of the General Partner; provided, however, that the terms of any loan from the General Partner or any Affiliate of the General Partner shall be substantially
equivalent to the terms that could be obtained from a third party on an arm’s-length basis) on such terms as the General Partner and such other Person may agree. 
 Section 6.9 CONTRIBUTION OF ASSETS. The Company, directly or through one or more of its Affiliates, shall contribute to the capital of the Partnership from time to time each asset it owns from
time to time during the existence of the Partnership, but it is not required to so contribute: 
 (a) its
interests in the General Partner or Ashford Prime OP Limited Partner LLC; 
 (b) its direct or indirect interest
in any entity in a chain of entities of which the Company is the sole beneficial owner, so long as all of the assets or other ownership interests in the entity in that chain furthest removed from the General Partner are contributed directly or
indirectly to the Partnership; or 
 (c) any equity interest in any entity of which the Company is the sole
beneficial owner that is created or used solely by the General Partner in connection with any borrowing transaction in whole or in part for the benefit of the Partnership. 

  
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 ARTICLE VII 
 RIGHTS, PROHIBITIONS AND REPRESENTATIONS WITH RESPECT TO 

LIMITED PARTNERS 
 Section 7.1 RIGHTS OF LIMITED PARTNERS. 
 (a) The
Partnership may engage the Limited Partners or persons or firms associated with them for specific purposes and may otherwise deal with such Partners on terms and for compensation to be agreed upon by any such Partner and the Partnership; provided,
however, that no Limited Partner shall be entitled to participate in the management or control of the business of the Partnership. 
 (b) Each Limited Partner shall be entitled to have the Partnership books kept at the principal place of business of the Partnership and at all times, during reasonable business hours and at such Limited
Partner’s sole expense, upon written demand shall be entitled to inspect and copy any of them for any purpose reasonably related to the Limited Partner’s interest as a Limited Partner and demand in writing true and full information of all
things affecting the Partnership and a formal accounting of Partnership affairs whenever circumstances render it just and reasonable and reasonably related to the Limited Partner’s interest as a Limited Partner; provided, however, that any such
demand shall state the purpose of such demand and provided further for such period of time as the General Partner determines in its sole and absolute discretion to be reasonable, the General Partner may keep confidential from the Limited Partners
any information that (i) the General Partner believes to be in the nature of trade secrets or other information the disclosure of which the General Partner in good faith believes is not in the best interest of the Partnership or could damage
the Partnership or its business or (ii) the Partnership or the General Partner is required by law or by agreements with unaffiliated third parties to keep confidential. 

(c) No Limited Partner shall be liable for any debts, liabilities, contracts or obligations of the Partnership. A Limited
Partner shall be liable to the Partnership only to make payments of its Capital Contribution, if any, as and when due hereunder. After its Capital Contribution is fully paid, no Limited Partner shall, except as otherwise required by the Act, be
required to make any further Capital Contributions or other payments or lend any funds to the Partnership. 
 Section 7.2
PROHIBITIONS WITH RESPECT TO THE LIMITED PARTNERS. No Limited Partner shall have the right: 
 (a) To
take part in the control or management of the Partnership business, to transact business for or on behalf of the Partnership or to sign for or to bind the Partnership, such powers being vested solely in the General Partner as set forth herein;

  
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 (b) To have such Partner’s Capital Contributions repaid except to the
extent provided in this Agreement; 
 (c) To require partition of Partnership property or to compel any sale or
appraisement of Partnership assets or sale of a deceased Partner’s interests therein, notwithstanding any provisions of law to the contrary; or 
 (d) To sell or assign all or any portion of such Partner’s Limited Partnership Interest in the Partnership or to constitute the vendee or assignee thereunder a Substitute Limited Partner, except as
provided in Article IX hereof. 
 Section 7.3 OWNERSHIP BY LIMITED PARTNER OF CORPORATE GENERAL PARTNER OR
AFFILIATE. No Limited Partner shall at any time, either directly or indirectly, own any shares or other interest in the General Partner or in any Affiliate thereof if such ownership by itself or in conjunction with other shares or other
interests owned by other Limited Partners would, in the opinion of counsel for the Partnership, jeopardize the classification of the Partnership as a partnership or the Company as a REIT for federal income tax purposes. The General Partner shall be
entitled to make such reasonable inquiry of the Limited Partners as is required to establish compliance by the Limited Partners with the provisions of this Section 7.3 and the Limited Partners shall promptly and fully respond to such
inquiries. 
 Section 7.4 REDEMPTION RIGHT. 

(a) Subject to Section 7.4(b) and Section 7.4(c), and the provisions of any agreements between the
Partnership and one or more Limited Partners, each Limited Partner, other than Ashford Prime OP Limited Partner LLC, shall have the right (the “Redemption Right”) to require the Partnership to redeem on a Specified Redemption Date all or a
portion of the Common Partnership Units held by such Limited Partner (the “Redeeming Partner”) at a redemption price per Common Partnership Unit equal to and in the form of the Cash Amount to be paid by the Partnership on the Specified
Redemption Date. The Redemption Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the Redeeming Partner. A Limited Partner may not exercise the Redemption Right for less
than one thousand (1,000) Common Partnership Units or, if such Limited Partner holds less than one thousand (1,000) Common Partnership Units, all of the Common Partnership Units held by such Partner. Neither the Redeeming Partner nor any
permitted or purported assignee of any Limited Partner shall have any right, with respect to any Common Partnership Units so redeemed, to receive any distributions paid after the Specified Redemption Date. Each Redeeming Partner agrees to provide
such representations and related indemnities regarding good and unencumbered title, and to execute such documents, as the General Partner may reasonably require in connection with any redemption. 

(b) Notwithstanding the provisions of Section 7.4(a), if a Limited Partner elects to exercise the Redemption
Right, the General Partner at the 

  
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direction of the Company, directly or indirectly through one or more Affiliates, may, in its sole and absolute discretion, elect to assume directly and satisfy a Redemption Right by paying to the
Redeeming Partner either (i) the Cash Amount, as provided for in Section 7.4(a), or (ii) the REIT Common Shares Amount, as elected by the General Partner, as directed by the Company (in its sole and absolute discretion), on the
Specified Redemption Date, provided that if the General Partner has not affirmatively notified the Redeeming Partner on or before one Business Day before the Specified Redemption Date that either the Partnership, the General Partner or its
Affiliates will pay the Cash Amount then the General Partner shall be deemed to have elected, directly or through one or more Affiliates, to pay the REIT Common Shares Amount to the Redeeming Partner on the Specified Redemption Date, and the Company
agrees that it will provide such REIT Common Shares on the Specified Redemption Date, subject to the other provisions of this Section 7.4. On any such election of the General Partner to assume and satisfy a Redemption Right, the Company,
directly or indirectly through one or more Affiliates, shall acquire the Common Partnership Units offered for redemption by the Redeeming Partner and shall be treated for all purposes of this Agreement as the owner of such Common Partnership Units.
Unless the General Partner, as directed by the Company (in its sole and absolute discretion) shall exercise its right to assume and satisfy the Redemption Right, or unless the General Partner has been deemed to assume the Redemption Right as
provided in this Section 7.4(b), neither the General Partner nor the Company itself shall have any obligation to the Redeeming Partner or to the Partnership with respect to the Redeeming Partner’s exercise of the Redemption Right.
If the General Partner, as directed by the Company, shall exercise its right, or shall be deemed to have elected, to satisfy the Redemption Right in the manner described in the first sentence of this Section 7.4(b), except as provided in
the following paragraph, the Partnership shall have no obligation to pay any amount to the Redeeming Partner with respect to such Redeeming Partner’s exercise of the Redemption Right, and each of the Redeeming Partner, the Partnership, and the
Company shall treat the transaction between the Company and the Redeeming Partner for federal income tax purposes as a sale of the Redeeming Partner’s Common Partnership Units to the Company or its Affiliates; provided that if the Redeeming
Partner is redeeming all of its Common Partnership Units, the Partnership shall redeem any fractional Common Partnership Unit (constituting less than one Common Partnership Unit owned by the Redeeming Partner by paying the Cash Amount with respect
to such fractional Common Partnership Unit to such Redeeming Partner. Each Redeeming Partner agrees to provide such representations and related indemnities regarding good title, and to execute such documents, as the Company may reasonably require in
connection with the issuance of REIT Common Shares upon exercise of the Redemption Right. If the Redemption Right is satisfied by the delivery of REIT Common Shares, the Redeeming Partner shall be deemed to become a holder of REIT Common Shares as
of the close of business on the Specified Redemption Date or on such later date permitted by this Section 7.4(b) that the Company delivers REIT Common Shares, as the case may be. 

  
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 Notwithstanding anything to the contrary in Section 7.4(a) or this
Section 7.4(b), and in addition to the right of the Company to deliver REIT Common Shares in satisfaction of the Redemption Right, as provided above, should the General Partner, as directed by the Company elect, or be deemed to elect, to
satisfy a Redemption Right by paying the Redeeming Partner the REIT Common Shares Amount, and it is necessary to obtain Company stockholder approval in order for it to issue sufficient REIT Common Shares to satisfy such Redemption Right in full,
then the Company shall have one hundred twenty (120) days beyond the Specified Redemption Date in which to obtain such stockholder approval and to pay the REIT Common Shares Amount, and the redemption date shall be required to occur by ten
(10) days after stockholder approval of the issuance of the REIT Common Shares has been obtained, if it is obtained. If such stockholder approval is not obtained within one hundred and thirty (130) days after such Common Partnership Units
are presented for redemption or the stockholders have voted against the issuance of the REIT Common Shares, the Partnership shall pay to the Redeeming Partner the Cash Amount no later than the earlier of (i) ten (10) days after
stockholders have voted against the issuance of the REIT Common Shares, or (ii) one hundred and thirty (130) days after such Common Partnership Units are presented for redemption, together with interest on such Cash Amount at the rate
equal to the lesser of (i) the Company’s annual dividend rate on REIT Common Shares for the twelve (12) month period prior to the Valuation Date and based upon the Cash Amount for Common Partnership Units redeemed, or (ii) eight
percent (8%). 
 (c) Notwithstanding the provisions of Section 7.4(a) and Section 7.4(b),
a Limited Partner shall not be entitled to receive REIT Common Shares if the delivery of REIT Common Shares to such Partner on the Specified Redemption Date (or such later date permitted by Section 7.4(b), as applicable) by the Company
pursuant to Section 7.4(b) would be prohibited under the Articles of Incorporation of the Company, as amended or restated from time to time. Without limiting the effect of the preceding sentence, no Person shall be permitted to receive
REIT Common Shares if as a result of, and after giving effect to, such exercise any Person would Beneficially Own (as defined in the Articles of Incorporation of the Company, as amended or restated from time to time) more than 9.8% of the total
number of issued and outstanding REIT Common Shares, unless waived by the board of directors of the Company in its sole discretion. To the extent any attempted redemption for REIT Common Shares would be a violation of this
Section 7.4(c), it shall be null and void ab initio. The Cash Amount shall be paid in such instances, in accordance with the terms set forth in Section 7.4(a) or Section 7.4(b). 

(d) Each Limited Partner covenants and agrees with the General Partner that all Common Partnership Units delivered for
redemption shall be delivered to the Partnership, the Company or its Affiliates, as the case may be, free and clear of all liens and, notwithstanding anything herein contained to the contrary, neither the General Partner, the Company (nor any of its
Affiliates) nor the Partnership shall be under any obligation to acquire Common Partnership 

  
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Units which are or may be subject to any liens. Each Limited Partner further agrees that, if any state or local property transfer tax is payable as a result of the transfer of its Common
Partnership Units to the General Partner, Partnership or the Company, such Limited Partner shall assume and pay such transfer tax. 
 (e) REIT Common Shares issued pursuant to Section 7.4(b) may contain such legends regarding restrictions on transfer as the Company in good faith determines to be necessary or advisable in
order to (1) comply with restrictions on transfer under the Securities Act and applicable state securities laws and (2) protect the ability of the Company to continue to qualify as a REIT. 

Section 7.5 BASIS ANALYSIS. Upon the request of any Limited Partner but subject to the General Partner’s agreement,
which may be withheld in the General Partner’s sole discretion, the General Partner may, prior to the end of each calendar year, beginning in 2013, cause accountants to prepare and provide to the Limited Partners a study analyzing each
refinancing, reduction (other than scheduled periodic amortization of principal) of debt or other event that occurred during that year that reduced the amount of any nonrecourse liabilities of the Partnership that a Limited Partner may include in
the tax basis of its Partnership Interests. 
 Section 7.6 LIMITED PARTNER GUARANTEES. Upon the
request of the General Partner, or upon a Limited Partner’s own election but subject to the General Partner’s agreement, which may be withheld in the General Partner’s sole discretion, a Limited Partner (the “Initiating
Limited Partner”) from time to time, may, but shall not be required to, guarantee or otherwise provide credit support for Partnership indebtedness or a deficit restoration obligation as such Limited Partner may elect; provided, however,
that the Limited Partner shall be entitled to take such action only if the General Partner determines that any such action would not have a material adverse effect on the tax position of the General Partner. All Partners are entitled to notice of
any such guarantee or credit support, and shall have the right to provide guarantees or credit support on the same terms and conditions as the Initiating Limited Partner does, and all Limited Partners interested in providing such guarantee or credit
support shall cooperate with the General Partner and each other in considering any guarantee or credit support proposal, and the General Partner will cooperate in permitting or obtaining any consents for such guarantees or credit support.

 Section 7.7 CONVERSION OF LTIP UNITS. 

(a) An LTIP Unitholder shall have the right (the “Conversion Right”), at his or her option, at any
time to convert all or a portion of his or her Vested LTIP Units into Common Partnership Units; provided, however, that a holder may not exercise the Conversion Right for less than one thousand (1,000) Vested LTIP Units or, if such holder holds
less than one thousand Vested LTIP Units, all of the Vested LTIP Units held by such holder. LTIP Unitholders shall not have the right to convert Unvested Incentive Units into Common Partnership Units until they become Vested LTIP Units; provided,
however, that when a LTIP Unitholder is notified of the expected occurrence of an event that will cause his or 

  
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her Unvested Incentive Units to become Vested LTIP Units, such LTIP Unitholder may give the Partnership a Conversion Notice conditioned upon and effective as of the time of vesting and such
Conversion Notice, unless subsequently revoked by the LTIP Unitholder, shall be accepted by the Partnership subject to such condition. The General Partner shall have the right at any time to cause a conversion of Vested LTIP Units into Common
Partnership Units. In all cases, the conversion of any LTIP Units into Common Partnership Units shall be subject to the conditions and procedures set forth in this Section 7.7. 

(b) A holder of Vested LTIP Units may convert such LTIP Units into an equal number of fully paid and non-assessable Common
Partnership Units, giving effect to all adjustments (if any) made pursuant to Sections 4.3(d), 4.3(e) and 5.5. Notwithstanding the foregoing, in no event may a holder of Vested LTIP Units convert a number of Vested LTIP Units
that exceeds (x) the Economic Capital Account Balance of such LTIP Unitholder, to the extent attributable to its ownership of LTIP Units, divided by (y) the Common Partnership Unit Economic Balance, in each case as determined as of the
effective date of conversion (the “Capital Account Limitation”). 
 In order to exercise
his or her Conversion Right, a LTIP Unitholder shall deliver a notice (a “Conversion Notice”) in the form attached as Exhibit D (with a copy to the General Partner) not less than 3 Business Days nor more than 10
Business Days prior to a date for conversion (the “Conversion Date”) specified in such Conversion Notice; provided, however, that if the General Partner has not given to the LTIP Unitholders notice of a proposed or upcoming
Unit Transaction (as defined below) at least thirty (30) days prior to the effective date of such Unit Transaction, then LTIP Unitholders shall have the right to deliver a Conversion Notice until the earlier of (x) the tenth
(10th) day after such notice from the General Partner of a Unit Transaction or (y) the third Business Day immediately preceding the effective date of such Unit Transaction. A Conversion Notice shall be provided in the manner provided in
Section 14.5. Each LTIP Unitholder covenants and agrees with the Partnership that all Vested LTIP Units to be converted pursuant to this Section 7.7 shall be free and clear of all liens. Notwithstanding anything herein to the
contrary, a holder of LTIP Units may deliver a Redemption Notice pursuant to Section 7.4 relating to those Common Partnership Units that will be issued to such holder upon conversion of such LTIP Units into Common Partnership Units in
advance of the Conversion Date; provided, however, that the redemption of such Common Partnership Units by the Partnership shall in no event take place until on or after the Conversion Date. For clarity, it is noted that the objective of this
paragraph is to put a LTIP Unitholder in a position where, if he or she so wishes, the Common Partnership Units into which his or her Vested LTIP Units will be converted can be redeemed by the Partnership simultaneously with such conversion, with
the further consequence that, if the General Partner elects to assume the Partnership’s redemption obligation with respect to such Common Partnership Units under Section 7.4(b) by delivering to such holder REIT Common Shares rather
than cash, then such 

  
 38 

 
holder can have such REIT Common Shares issued to him or her simultaneously with the conversion of his or her Vested LTIP Units into Common Partnership Units. The General Partner shall cooperate
with a LTIP Unitholder to coordinate the timing of the different events described in the foregoing sentence. 

(c) The Partnership, at any time at the election of the General Partner, may cause any number of Vested LTIP Units held by
a LTIP Unitholder to be converted (a “Forced Conversion”) into an equal number of Common Partnership Units, giving effect to all adjustments (if any) made pursuant to Sections 4.3(d), 4.3(e) and 5.5;
provided, however, that the Partnership may not cause a Forced Conversion of any LTIP Units that would not at the time be eligible for conversion at the option of such LTIP Unitholder pursuant to Section 7.7(b). In order to exercise its
right of Forced Conversion, the Partnership shall deliver a notice (a “Forced Conversion Notice”) in the form attached as Exhibit E to the applicable LTIP Unitholder not less than 10 nor more than 60 days prior to the
Conversion Date specified in such Forced Conversion Notice. A Forced Conversion Notice shall be provided in the manner provided in Section 14.5. 
 (d) A conversion of Vested LTIP Units for which the holder thereof has given a Conversion Notice or the Partnership has given a Forced Conversion Notice shall occur automatically after the close of
business on the applicable Conversion Date without any action on the part of such LTIP Unitholder, as of which time such LTIP Unitholder shall be credited on the books and records of the Partnership with the issuance as of the opening of business on
the next day of the number of Common Partnership Units issuable upon such conversion. After the conversion of LTIP Units as aforesaid, the Partnership shall deliver to such LTIP Unitholder, upon his or her written request, a certificate of the
General Partner certifying the number of Common Partnership Units and remaining LTIP Units, if any, held by such person immediately after such conversion. The assignee of any Limited Partner pursuant to Article IX hereof may exercise the
rights of such Limited Partner pursuant to this Section 7.7 and such Limited Partner shall be bound by the exercise of such rights by the assignee. 
 (e) For purposes of making future allocations under Section 5.5 and applying the Capital Account Limitation, the portion of the Economic Capital Account Balance of the applicable LTIP
Unitholder that is treated as attributable to his or her LTIP Units shall be reduced, as of the date of conversion, by the product of the number of LTIP Units converted and the Common Partnership Unit Economic Balance. 

(f) If the Partnership, the General Partner or the Company shall be a party to any transaction (including without
limitation a merger, consolidation, unit exchange, self tender offer for all or substantially all Common Partnership Units or other business combination or reorganization, or sale of all or substantially all of the Partnership’s assets, but
excluding any transaction which constitutes an Adjustment Event) in each case as a result of which Common Partnership Units shall be exchanged for or converted into the right, or the holders of such

  
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Partnership Units shall otherwise be entitled, to receive cash, securities or other property or any combination thereof (each of the foregoing being referred to herein as a “Unit
Transaction”), then the General Partner may, immediately prior to the Unit Transaction, exercise its right to cause a Forced Conversion with respect to the maximum number of LTIP Units then eligible for conversion, taking into account
any allocations that occur in connection with the Unit Transaction or that would occur in connection with the Unit Transaction if the assets of the Partnership were sold at the Unit Transaction price or, if applicable, at a value determined by the
General Partner in good faith using the value attributed to the Partnership Units in the context of the Unit Transaction (in which case the Conversion Date shall be the effective date of the Unit Transaction). 

In anticipation of such Forced Conversion and the consummation of the Unit Transaction, the Partnership shall use
commercially reasonable efforts to cause each LTIP Unitholder to be afforded the right to receive in connection with such Unit Transaction in consideration for the Common Partnership Units into which his or her LTIP Units will be converted the same
kind and amount of cash, securities and other property (or any combination thereof) receivable upon the consummation of such Unit Transaction by a holder of the same number of Common Partnership Units, assuming such holder of Common Partnership
Units is not a Person with which the Partnership consolidated or into which the Partnership merged or which merged into the Partnership or to which such sale or transfer was made, as the case may be (a “Constituent Person”),
or an Affiliate of a Constituent Person. If holders of Common Partnership Units have the opportunity to elect the form or type of consideration to be received upon consummation of the Unit Transaction, prior to such Unit Transaction the General
Partner shall give written notice to each LTIP Unitholder of such election, and shall use commercially reasonable efforts to afford the LTIP Unitholders the right to elect, by written notice to the General Partner, the form or type of consideration
to be received upon conversion of each LTIP Unit held by such holder into Common Partnership Units in connection with such Unit Transaction. If a LTIP Unitholder fails to make such an election, such holder (and any of its transferees) shall receive
upon conversion of each LTIP Unit held him or her (or by any of his or her transferees) the same kind and amount of consideration that a holder of a Common Partnership Unit would receive if such Common Partnership Unit holder failed to make such an
election. 
 Subject to the rights of the Partnership, the General Partner and the Company, under any Vesting
Agreement and the Plan, the Partnership shall use commercially reasonable effort to cause the terms of any Unit Transaction to be consistent with the provisions of this Section 7.7(f) and to enter into an agreement with the successor or
purchasing entity, as the case may be, for the benefit of any LTIP Unitholders whose LTIP Units will not be converted into Common Partnership Units in connection with the Unit Transaction that will (i) contain provisions enabling the holders of
LTIP Units that remain outstanding after such Unit Transaction to convert their LTIP Units into securities as comparable as reasonably possible under the circumstances to the Common Partnership Units

  
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and (ii) preserve as far as reasonably possible under the circumstances the distribution, special allocation, conversion, and other rights set forth in this Agreement for the benefit of the
LTIP Unitholders. 
 Section 7.8 VOTING RIGHTS OF LTIP UNITS. LTIP Unitholders shall (a) have those voting
rights required from time to time by applicable law, if any, (b) have the same voting rights as a holder of Common Partnership Units, with the LTIP Units voting as a single class with the Common Partnership Units and having one vote per LTIP
Unit; and (c) have the additional voting rights that are expressly set forth below. So long as any LTIP Units remain outstanding, the Partnership shall not, without the affirmative vote of the holders of at least a majority of the LTIP Units
outstanding at the time, given in person or by proxy, either in writing or at a meeting (voting separately as a class), amend, alter or repeal, whether by merger, consolidation or otherwise, the provisions of this Agreement applicable to LTIP Units
so as to materially and adversely affect any right, privilege or voting power of the LTIP Units or the LTIP Unitholders as such, unless such amendment, alteration, or repeal affects equally, ratably and proportionately the rights, privileges and
voting powers of the holders of Common Partnership Units; but subject, in any event, to the following provisions: 
 (a) With respect to any Unit Transaction, so long as the LTIP Units are treated in accordance with Section 7.7(f) hereof, the consummation of such Unit Transaction shall not be deemed to
materially and adversely affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such; and 
 (b) Any creation or issuance of any Partnership Units or of any class or series of Partnership Interest including without limitation additional Common Partnership Units, LTIP Units or Preferred
Partnership Units, whether ranking senior to, junior to, or on a parity with the LTIP Units with respect to distributions and the distribution of assets upon liquidation, dissolution or winding up, shall not be deemed to materially and adversely
affect such rights, preferences, privileges or voting powers of the LTIP Units or the LTIP Unitholders as such. 

The foregoing voting provisions will not apply if, at or prior to the time when the act with respect to which such vote
would otherwise be required will be effected, all outstanding LTIP Units shall have been converted into Common Partnership Units. 
 ARTICLE VIII 
 DISTRIBUTIONS AND PAYMENTS TO PARTNERS

 Section 8.1 DISTRIBUTIONS OF CASH FLOW. 

(a) The General Partner shall cause the Partnership to distribute on a quarterly basis such portion of the Cash Flow of
the Partnership as the General Partner shall determine in its sole discretion. Except as provided in Section 10.4, 

  
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such distributions shall be made to the Partners who are Partners on the applicable record date as follows: 
 first, to the holders of the Preferred Partnership Units, an amount equal to the unpaid portion of the Preferred Return due to the holders of the Preferred Partnership Units on the applicable
Partnership Record Date, as determined pursuant to the applicable exhibit hereto setting forth the terms of such Preferred Partnership Units; 
 second, to all Partners who are Partners on the applicable Partnership Record Date and who beneficially own Common Partnership Units, in accordance with their respective Common Percentage
Interests; 
 provided, however, if for any Common Partnership Unit Distribution Period, a Newly Issued Common
Partnership Unit is outstanding on the Partnership Record Date for such period, there shall not be distributed in respect of such Newly Issued Common Partnership Unit the amount (the “Full Distribution Amount”) that would
otherwise be distributed in respect of such Partnership Unit in accordance with its respective Common Percentage Interest, but rather, the General Partner shall cause to be distributed with respect to each such Newly Issued Common Partnership Unit
an amount equal to the Full Distribution Amount multiplied by a fraction, the numerator of which equals the number of days such Newly Issued Common Partnership Unit has been outstanding during the Common Partnership Unit Distribution Period and the
denominator of which equals the total number of days in such Common Partnership Unit Distribution Period. 
 Any Cash Flow not
distributed to the holders of Partnership Units by operation of this provision shall be retained by the Partnership and applied toward future distributions or payment of Partnership expenses. 

(b) In no event may a Partner receive a distribution of Cash Flow with respect to a Partnership Unit if such Partner is
entitled to receive a dividend out of the Company’s share of such Cash Flow with respect to a REIT Share for which all or part of such Partnership Unit has been exchanged. 

(c) If the Partnership issues additional Partnership Units pursuant to the provisions of this Agreement, the General
Partner is hereby authorized to make such revisions to this Article VIII as it determines are necessary or desirable to reflect the issuance of such additional Partnership Units, including without limitation, making preferential distributions
to certain classes of Partnership Units. 

  
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 Section 8.2 REIT DISTRIBUTION REQUIREMENTS. Unless the General Partner
determines that such a distribution would not be in the best interests of the Partnership, the General Partner shall cause the Partnership to distribute sufficient amounts to enable the Company (i) to meet its distribution requirement for
qualification as a REIT as set forth in Section 857(a)(1) of the Code, and (ii) to avoid the excise tax imposed by Section 4981 of the Code. 
 Section 8.3 NO RIGHT TO DISTRIBUTIONS IN KIND. No Partner shall be entitled to demand property other than cash in connection with any distribution by the Partnership. 

Section 8.4 DISPOSITION PROCEEDS. Disposition Proceeds (less reasonable reserves set aside by the General Partner for
reasonably anticipated expenses or needs of the Partnership) shall be distributed to the holders of Common Partnership Interests in accordance with their respective Common Percentage Interests in the Partnership. 

Section 8.5 WITHDRAWALS. No Partner shall be entitled to make withdrawals from its Capital Account, or withdraw as a Limited
Partner, except as expressly provided herein. 
 Section 8.6 AMOUNTS WITHHELD. 

(a) Notwithstanding any other provision of this Agreement, the General Partner is authorized to take any action that it
determines to be necessary or appropriate to cause the Partnership to comply with any withholding requirements established under the Code or any other federal, state or local law including, without limitation, pursuant to Sections 1441, 1442, 1445
and 1446 of the Code. To the extent that the Partnership is required to withhold and pay over to any taxing authority any amount resulting from the allocation or distribution of income to any Partner or assignee (including by reason of
Section 1446 of the Code), either (i) if the actual amount to be distributed to the Partner equals or exceeds the amount required to be withheld by the Partnership, the amount withheld shall be treated as a distribution of cash in the
amount of such withholding to such Partner, or (ii) if the actual amount to be distributed to the Partner is less than the amount required to be withheld by the Partnership, the actual amount shall be treated as a distribution of cash in the
amount of such withholding and the additional amount required to be withheld shall be treated as a loan (a “Partnership Loan”) from the Partnership to the Partner on the day the Partnership pays over such amount to a taxing
authority. A Partnership Loan shall be repaid through withholding by the Partnership with respect to subsequent distributions to the applicable Partner or assignee. If a Limited Partner (a “Defaulting Limited Partner”) fails
to pay any amount owed to the Partnership with respect to the Partnership Loan within fifteen (15) days after demand for payment thereof is made by the Partnership on the Limited Partner, the General Partner, in its sole and absolute
discretion, may elect to make the payment to the Partnership on behalf of such Defaulting Limited Partner. In such event, on the 

  
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date of payment, the General Partner shall be deemed to have extended a loan (a “General Partner Loan”) to the Defaulting Limited Partner in the amount of the payment made
by the General Partner and shall succeed to all rights and remedies of the Partnership against the Defaulting Limited Partner as to that amount. Without limitation, the General Partner shall have the right to receive any distributions that otherwise
would be made by the Partnership to the Defaulting Limited Partner until such time as the General Partner Loan has been paid in full, and any such distributions so received by the General Partner shall be treated as having been received by the
Defaulting Limited Partner and immediately paid to the General Partner. 
 Any amounts treated as a Partnership Loan or a
General Partner Loan pursuant to this Section 8.6(a) shall bear interest at the lesser of (i) the base rate on corporate loans at large United States money center commercial banks, as published from time to time in The Wall Street
Journal, or (ii) the maximum lawful rate of interest on such obligation, such interest to accrue from the date the Partnership or the General Partner, as applicable, is deemed to extend the loan until such loan is repaid in full. 

(b) All amounts withheld pursuant to the Code or any provisions of any state or local tax law and
Section 8.6(a) with respect to any allocation, payment or distribution to any Partner shall be treated as amounts paid or distributed to such Partner pursuant to Section 8.1 hereof for all purposes under this Agreement.

 ARTICLE IX 
 TRANSFERS OF INTERESTS 
 Section 9.1 GENERAL PARTNER.

 (a) Other than to an Affiliate of the General Partner, the General Partner may not transfer any of its General
Partnership Interest or Limited Partnership Interests or withdraw as General Partner except as provided in Section 9.1(b) or in connection with a transaction described in Section 9.1(c). 

(b) Except as otherwise provided in Section 6.7 or Section 9.1(c), the General Partner, the
Company or their Subsidiaries shall not engage in any merger, consolidation or other combination with or into another Person or in any sale of all or substantially all of its assets, or any reclassification, or recapitalization or change of
outstanding REIT Common Shares (other than a change in par value, or from par value to no par value, or as a result of a subdivision or combination as described in the definition of “Conversion Factor”) (each of the foregoing being herein
referred to as a “Transaction”), unless the Transaction also includes a merger of the Partnership or sale of substantially all of the assets of the Partnership or other transaction as a result of which all Limited Partners
will receive for each Common Partnership Unit an amount of cash, 

  
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securities or other property equal to the product of the Conversion Factor and the greatest amount of cash, securities or other property paid to a holder of one REIT Common Share in consideration
of one REIT Common Share as a result of the Transaction; provided, however, that if, in connection with the Transaction, a purchase, tender or exchange offer shall have been made to and accepted by the holders of more than fifty percent
(50%) of the outstanding REIT Common Shares, the holders of Common Partnership Units shall receive the greatest amount of cash, securities or other property which a Limited Partner would have received had it exercised the Redemption Right and
the General Partner at the direction of the Company had exercised its election to satisfy the Redemption Right by the issuance of REIT Common Shares immediately prior to the expiration of such purchase, tender or exchange offer. 

(c) Notwithstanding Section 9.1(b), the General Partner, the Company or their Subsidiaries may merge into or
consolidate with another entity if immediately after such merger or consolidation (i) substantially all of the assets of the successor or surviving entity (the “Surviving Partner”), other than Partnership Units held by
the General Partner, the Company or their Subsidiaries, are contributed to the Partnership as a Capital Contribution in exchange for Partnership Units with a fair market value equal to the value of the assets so contributed as determined by the
Surviving Partner in good faith and (ii) the Surviving Partner or one of its Subsidiaries expressly agrees to assume all obligations of the General Partner hereunder. Upon such contribution and assumption, the Surviving Partner shall have the
right and duty to amend this Agreement as set forth in this Section 9.1(c). The Surviving Partner shall in good faith arrive at a new method for the calculation of the Cash Amount and Conversion Factor for a Common Partnership Unit after
any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably possible. Such calculation shall take into account, among other things, the kind and amount of securities, cash and other
property that was receivable upon such merger or consolidation by a holder of REIT Shares or options, warrants or other rights relating thereto, and which a holder of Common Partnership Units could have acquired had such Common Partnership Units
been redeemed immediately prior to such merger or consolidation. Such amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as may be practicable to the adjustments provided for
with respect to the Conversion Factor. The above provisions of this Section 9.1(c) shall similarly apply to successive mergers or consolidations permitted hereunder. 

Section 9.2 ADMISSION OF A SUBSTITUTE OR ADDITIONAL GENERAL PARTNER. A Person shall be admitted as a Substitute or Additional
General Partner of the Partnership only if the transaction giving rise to such substitution or admission is otherwise permitted under this Agreement and the following terms and conditions are satisfied: 

(a) the Person to be admitted as a Substitute or Additional General Partner shall have accepted and agreed to be bound by
all the terms and 

  
 45 

 
provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required or appropriate in order to effect the admission of such Person as a
General Partner, and a certificate evidencing the admission of such Person as a General Partner shall have been filed for recordation and all other actions required by the Act in connection with such admission shall have been performed; 

(b) if the Person to be admitted as a Substitute or Additional General Partner is a corporation or a partnership, it shall
have provided the Partnership with evidence satisfactory to counsel for the Partnership of such Person’s authority to become a General Partner and to be bound by the terms and provisions of this Agreement; and 

(c) counsel for the Partnership shall have rendered an opinion (relying on such opinions from counsel of the state or any
other jurisdiction as may be necessary) that the admission of the Person to be admitted as a Substitute or Additional General Partner is in conformity with the Act and that none of the actions taken in connection with the admission of such Person as
a Substitute or Additional General Partner will cause the termination of the Partnership under Section 708 of the Code, or will cause it to be classified as other than a partnership for federal income tax purposes, or will result in the loss of
any Limited Partner’s limited liability status. 
 Section 9.3 EFFECT OF BANKRUPTCY, WITHDRAWAL, DEATH OR
DISSOLUTION OF A GENERAL PARTNER. 
 (a) Upon the occurrence of an Event of Bankruptcy as to a General
Partner (and its automatic removal pursuant to Section 9.4(a) hereof) or the withdrawal or dissolution of a General Partner (except that, if a General Partner is on the date of such occurrence a partnership, the withdrawal, death,
dissolution, Event of Bankruptcy as to or removal of a partner in such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued within ninety (90) days by the remaining
general partners or all remaining members of such partnership), the Partnership shall be dissolved and terminated unless the Partnership is continued pursuant to Section 9.3(b). 

(b) Following the occurrence of an Event of Bankruptcy as to a General Partner or the withdrawal or dissolution of a
General Partner (except that, if a General Partner is on the date of such occurrence a partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to or removal of a partner in such partnership shall be deemed not be a dissolution of
such General Partner if the business of such General Partner is continued within ninety (90) days by all remaining general partners or all remaining members of such partnership), persons holding at least a majority of the Limited Partnership
interests, within ninety (90) days after such occurrence, may elect to continue the business of the Partnership for the balance of the term specified in Section 3.2 by selecting,

  
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subject to Section 9.2 and any other applicable provisions of this Agreement, a Substitute General Partner by majority consent of the Limited Partners. If the Limited Partners elect
to reconstitute the Partnership and admit a Substitute General Partner, the relationship between the Partners and any Person who has acquired an interest of a Partner in the Partnership shall be governed by this Agreement. 

Section 9.4 REMOVAL OF A GENERAL PARTNER. 

(a) Upon the occurrence of an Event of Bankruptcy as to, or the dissolution of, a General Partner, such General Partner
shall be deemed to be removed automatically; provided, however, that if a General Partner is on the date of such occurrence a partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to or removal of a partner in such partnership
shall be deemed not to be a dissolution of the General Partner if the business of such General Partner is continued within ninety (90) days by the remaining general partners or all remaining members of such Partnership. 

(b) If a General Partner has been removed pursuant to this Section 9.4(a) and the Partnership is not continued
pursuant to Section 9.3(b), the partnership shall be dissolved. 
 (c) A General Partner may not be
removed by the Limited Partners with or without cause. 
 Section 9.5 RESTRICTIONS ON TRANSFER OF LIMITED PARTNERSHIP
INTERESTS. 
 (a) Except as otherwise provided in this Article IX, no Limited Partner may offer, sell,
assign, hypothecate, pledge or otherwise transfer its Limited Partnership Interest, in whole or in part, whether voluntarily or by operation of law or at judicial sale or otherwise (collectively, a “Transfer”), without the
written consent of the General Partner, which consent may be withheld in the sole and absolute discretion of the General Partner. The General Partner may require, as a condition of any Transfer, that the transferor assume all costs incurred by the
Partnership in connection therewith. The General Partner consents to the following Transfers of Common Partnership Units on the Effective Date: (i) by Ashford Hospitality Limited Partnership to it limited partners, (ii) by Ashford OP
Limited Partner LLC to Ashford Hospitality Trust, Inc., (iii) by Ashford Hospitality Trust, Inc. to the Company and (iv) by the Company to Ashford Prime OP Limited Partner LLC. 

(b) No Limited Partner may effect a Transfer of its Limited Partnership Interest if, (i) in the opinion of legal
counsel for the Partnership, such proposed Transfer would require the registration of the Limited Partnership Interest under the Securities Act of 1933, as amended, or would otherwise violate any applicable federal or state securities or “Blue
Sky” law (including investment 

  
 47 

 
suitability standards) or (ii) the assignee is not an Accredited Investor within the meaning of Rule 501 of the Securities Act of 1933, as amended. 

(c) No Transfer by a Limited Partner of its Partnership Units may be made to any Person if (i) in the opinion of
legal counsel for the Partnership, the Transfer would result in the Partnership’s being treated as an association taxable as a corporation (other than a qualified REIT subsidiary within the meaning of Section 856(i) of the Code),
(ii) such transfer is effectuated through an “established securities market” or a “secondary market” (or the substantial equivalent thereof) within the meaning of Section 7704 of the Code, (iii) the Transfer would
create a risk that the Company would not be taxed as a REIT for federal income tax purposes or (iv) assuming the Partnership Units subject to the Transfer were redeemed for REIT Shares, the redemption would create a risk that the Company would
not be taxed as a REIT for federal income tax purposes. 
 (d) Subject to the other provisions of this
Section 9, Section 9.5(a) shall not prevent any donative Transfer by an individual Limited Partner to his immediate family members or any trust in which the individual or his immediate family members own, collectively, one
hundred percent (100%) of the beneficial interests, provided that the transferor assumes all costs of the Partnership in connection therewith and any such transferee shall not have the rights of a Substitute Limited Partner (unless and until
admitted as a Substitute Limited Partner pursuant to this Section 9.5 and Section 9.6 of this Agreement). 
 (e) Any Transfer in contravention of any of the provisions of this Article IX shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership. 

Except as required by operation of law Transfers of Partnership Interests and Partnership Units shall be made on the books
of the Partnership, and in the case of certificated Partnership Interests and Partnership Units, only by the person named in the certificate or by such person’s attorney lawfully constituted in writing and upon the surrender of the certificate
therefor, properly endorsed; or, in the case of uncertificated Partnership Interests and Partnership Units, upon receipt of proper transfer instructions from the registered holder of the Partnership Interests and Partnership Units and upon
compliance with the other provisions of this Article IX. 
 Section 9.6 ADMISSION OF SUBSTITUTE LIMITED PARTNER.

 (a) Subject to the other provisions of this Article IX (including, without limitation, the provisions
of Section 9.5(a) regarding consent of the General Partner), an assignee of the Limited Partnership Interest of a Limited Partner (including, without limitation, any purchaser, transferee, donee, or other recipient of any disposition of
such Limited Partnership Interest) shall be deemed admitted as a Limited Partner of the Partnership only upon the satisfactory completion of the following: 

  
 48 

 (i) the assignee has obtained the prior written consent of the General
Partner as to its admission as a Substitute Limited Partner, which consent may be given or denied in the exercise of the General Partner’s sole and absolute discretion; provided, however, that this Section 9.6(a)(i) shall not apply
in the case of assignee resulting from a Transfer by a Limited Partner that was a partner as of the date of this Agreement to any of its partners; 
 (ii) the assignee shall have accepted and agreed to be bound by the terms and provisions of this Agreement by executing a counterpart or an amendment thereof, including a revised Exhibit A, and
such other documents or instruments as the General Partner may require in order to effect the admission of such Person as a Limited Partner; 
 (iii) to the extent required, an amended certificate of limited partnership evidencing the admission of such Person as a Limited Partner shall have been signed, acknowledged and filed for record in
accordance with the Act; 
 (iv) the assignee shall have delivered a letter containing the representation and
warranty set forth in Section 9.12 and the agreement set forth in Section 9.12; 
 (v) if
the assignee is a corporation, partnership or trust, the assignee shall have provided the General Partner with evidence satisfactory to counsel for the Partnership of the assignee’s authority to become a Limited Partner under the terms and
provisions of this Agreement; 
 (vi) the assignee shall have executed a power of attorney containing the terms
and provisions set forth in Article XII; and 
 (vii) the assignee shall have paid all reasonable legal
fees of the Partnership and the General Partner and all filing and publication costs incurred in connection with its substitution as a Limited Partner. 
 (b) Notwithstanding the foregoing provisions of this Section 9.6(a), any assignee of Ashford Hospitality Limited Partnership on the Effective Date shall be admitted to the Partnership as a
Limited Partner and be bound by the terms of this Agreement pursuant to Act § 17-101 (12)a.(ii) without any written execution by such assignee if such assignee does not object to such admittance in writing to the General Partner within 30
days of being notified by the General Partner of such assignment and upon such objection shall continue to be an assignee for purposes of this Agreement and the Act. 

(c) For the purpose of allocating profits and losses and distributing cash received by the Partnership, a Substitute
Limited Partner shall be treated as having become, and appearing in the records of the Partnership as, a Partner upon 

  
 49 

 
the filing of the certificate described in Section 9.6(a)(ii) or, if no such filing is required, the later of the date specified in the transfer documents, or the date on which the
General Partner has received all necessary instruments of transfer and substitution. 
 (d) The General Partner
shall as promptly as practicable take all action required to effectuate the admission of the Person seeking to become a Substitute Limited Partner, including preparing the documentation required by this Section 9.6 and making all
official filings and publications. 
 Section 9.7 RIGHTS OF ASSIGNEES OF PARTNERSHIP INTERESTS. 

(a) Subject to the provisions of Sections 9.5 and 9.6 hereof, except as required by operation of law, the
Partnership shall not be obligated for any purposes whatsoever to recognize the assignment by any Limited Partner of his Partnership Interest until the Partnership has received notice thereof. If the General Partner, in its sole and absolute
discretion, does not consent (subject to the proviso in Section 9.6(a)(i)) to the admission of any transferee of any Partnership Interest as a Substitute Limited Partner in connection with a Transfer permitted by Section 9.5,
such transferee shall be considered an assignee for the purposes of this Agreement. An assignee shall be entitled to all the rights of an assignee of a limited partnership interest under the Act, including the right to receive distributions
attributable to the Partnership Units assigned, but such assignee shall not be entitled to effect a consent or vote on any matter presented to the Limited Partners for approval or, except as waived by the General Partner, effect a Redemption Right
with respect to such Partnership Units (such right to consent or vote or effect a Redemption Right, to the extent provided in this Agreement or under the Act, fully remaining with the transferor Limited Partner). 

(b) Any Person who is the assignee of all or any portion of a Limited Partner’s Limited Partnership Interest, but
does not become a Substitute Limited Partner and desires to make a further assignment of such Limited Partnership Interest, shall be subject to all of the provisions of this Article IX to the same extent and in the same manner as any Limited
Partner desiring to make an assignment of its Limited Partnership Interest. 
 Section 9.8 EFFECT OF BANKRUPTCY, DEATH,
INCOMPETENCE OR TERMINATION OF A LIMITED PARTNER. The occurrence of an Event of Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is incompetent (which term shall include, but not
be limited to, insanity) shall not cause the termination or dissolution of the Partnership, and the business of the Partnership shall continue. If an order for relief in a bankruptcy proceeding is entered against an individual Limited Partner, the
trustee or receiver of his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling
or managing his estate property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all 

  
 50 

 
or any part of his Partnership Interest and to join with the assignee in satisfying conditions precedent to the admission of the assignee as a Substitute Limited Partner. 

Section 9.9 JOINT OWNERSHIP OF INTERESTS. A Partnership Interest may be acquired by two (2) individuals as joint tenants
with right of survivorship (but not as tenants in common), provided that such individuals either are married or are related and share the same home as tenants in common. The written consent or vote of both owners of any such jointly held Partnership
Interest shall be required to constitute the action of the owners of such Partnership Interest; provided, however, that the written consent of only one (1) joint owner will be required if the Partnership has been provided with evidence
satisfactory to counsel for the Partnership that the actions of a single joint owner can bind both owners under the applicable laws of the state of residence of such joint owners. Upon the death of one (1) owner of a Partnership Interest held
in a joint tenancy with a right of survivorship, the Partnership Interest shall become owned solely by the survivor as a Limited Partner and not as an assignee. The Partnership need not recognize the death of one (1) of the owners of a jointly
held Partnership Interest until it shall have received notice of such death. Upon notice to the General Partner from either owner that the tenancy satisfying the first sentence of this Section 9.9 has been destroyed, the General Partner
shall cause the Partnership Interest to be divided into two (2) equal Partnership Interests, which shall thereafter be owned separately by each of the former owners. 
 Section 9.10 TRANSFEREES. Any Partnership Interests owned by the Partners and transferred pursuant to this Article IX shall be and remain subject to all of the provisions of this
Agreement. 
 Section 9.11 ABSOLUTE RESTRICTION. Notwithstanding any provision of this Agreement to the contrary,
unless waived in writing by the General Partner, the sale or exchange of any interest in the Partnership will not be permitted if the interest sought to be sold or exchanged, when added to the total of all other interests sold or exchanged within
the period of twelve (12) consecutive months ending with the proposed date of the sale or exchange, would result in the termination of the Partnership under Section 708 of the Code, if such termination would materially and adversely affect
the Partnership or any Partner. 
 Section 9.12 INVESTMENT REPRESENTATION. Each Limited Partner hereby represents
and warrants to the General Partner and to the Partnership that the acquisition of his Partnership Interest is made as a principal for his account for investment purposes only and not with a view to the resale or distribution of such Partnership
Interest. Each Limited Partner agrees that he will not sell, assign or otherwise transfer his Partnership Interest or any fraction thereof, whether voluntarily or by operation of law or at judicial sale or otherwise, to any Person who does not
similarly represent and warrant and similarly agree not to sell, assign or transfer such Partnership Interest or fraction thereof to any Person who does not similarly represent, warrant and agree. 

  
 51 

 Section 9.13 CERTIFICATES. Partnership Interest and Partnership Unit ownership
in the Partnership shall be maintained in the books and records of the Partnership, set forth on Exhibit A, as amended from time to time, and shall not be certificated, except that at the request of any Partner its Partnership Interest
and Partnership Unit shall also be evidenced by a certificate in the form and substance of Exhibit F hereto with such legends, notations and endorsements, if any, as determined by the General Partner in its sole discretion. Any
certificates issued representing Partnership Interests and Partnership Units shall be issued in consecutive order, shall be identified by the class of the Partnership Interest and shall be numbered in the order of their issue and shall be signed by,
or in the name of, the Partnership by or on behalf of the General Partner. The General Partner shall note on Exhibit A as to any Partnership Interests and Partnership Units evidenced by a certificate the certificate number thereof. If
any certificate representing Partnership Interests and Partnership Units is subject to any loss, theft, destruction or mutilation, the Partnership may issue to the holder a new certificate or certificates for such Partnership Interests and
Partnership Units, upon the surrender of the mutilated certificate or, in the case of loss, theft or destruction of the certificate, upon satisfactory proof of such loss, theft or destruction; provided that the General may, in its discretion,
require the owner of the lost, stolen or destroyed certificate, or such person’s legal representative, to give the Partnership a bond in such sum and with such surety or sureties as it may direct to indemnify the Partnership and the General
Partner against any claim that may be made on account of the alleged loss, theft, destruction or mutilation of any such certificate or the issuance of such new certificate. 
 ARTICLE X 
 TERMINATION OF THE PARTNERSHIP 

Section 10.1 TERMINATION. The Partnership shall be dissolved upon (i) an Event of Bankruptcy as to the General Partner
or the dissolution or withdrawal of the General Partner (unless within ninety (90) days thereafter Limited Partners holding more than fifty percent (50%) of the Limited Partnership Interests in the Partnership elect to continue the
Partnership and to elect one or more persons to serve as the General Partner or General Partners of the Partnership), (ii) ninety (90) days following the sale of all or substantially all of the Partnership’s assets (provided that if
the Partnership receives an installment obligation as consideration for such sale or other disposition, the Partnership shall continue, unless sooner dissolved under the provisions of this Agreement, until such time as such obligation is paid in
full), (iii) the expiration of the term specified in Section 3.2, (iv) the redemption of all Limited Partnership Interests (other than any of such interests held by the General Partner or Ashford Prime OP Limited Partner LLC),
or (v) the election by the General Partner (but only in accordance with and as permitted by applicable law) that the Partnership should be dissolved. Upon dissolution of the Partnership (unless the business of the Partnership is continued as
set forth above), the General Partner (or its trustee, receiver, successor or legal representative) shall proceed with the winding up of the Partnership, and its assets shall be applied and distributed as herein provided. 

Section 10.2 PAYMENT OF DEBTS. The assets shall first be applied to the payment of the liabilities of the Partnership (other
than any loans or advances that may 

  
 52 

 
have been made by Partners to the Partnership) and the expenses of liquidation. A reasonable time shall be allowed for the orderly liquidation of the assets of the Partnership and the discharge
of liabilities to creditors so as to enable the General Partner to minimize any losses resulting from liquidation. 

Section 10.3 DEBTS TO PARTNERS. The remaining assets shall next be applied to the repayment of any loans made by any Partner
to the Partnership. 
 Section 10.4 REMAINING DISTRIBUTION. 

(a) The remaining assets shall then be distributed first, to the holders of the Preferred Partnership Units as provided in
the exhibit hereto setting forth the terms of such Preferred Partnership Units, and second, to the holders of the Common Partnership Units in accordance with their positive Capital Account balances, determined after taking into account all Capital
Account adjustments for all prior periods and the Partnership taxable year during which the liquidation occurs. 

(b) If the Partnership is liquidated within the meaning of Section 1.704-1(b)(2)(ii)(g), distributions shall be made
pursuant to Section 10.4(a) in compliance with Section 1.704-1(b)(2)(ii)(b)(2) of the Treasury Regulations. In the discretion of the General Partner, a pro rata portion of the distributions that would otherwise be made to the Partners
pursuant to Section 10.4(a) may be: 
 (i) distributed to a trust established for the benefit of the
Partners for the purposes of liquidating Partnership assets, collecting amounts owed to the Partnership, and paying any contingent or unforeseen liabilities or obligations of the Partnership or the Partners arising out of or in connection with the
Partnership. The assets of any such trust shall be distributed to the Partners from time to time, in the reasonable discretion of the General Partner, in the same proportions as the amount distributed to such trust by the Partnership would otherwise
have been distributed to the Partners pursuant to Section 10.4(a); or 
 (ii) withheld to provide a
reasonable reserve for Partnership liabilities (contingent or otherwise) and to reflect the unrealized portion of any installment obligations owed to the Partnership, provided that such withheld amounts shall be distributed to the Partners as soon
as practicable. 
 (c) Notwithstanding any other provisions of this Article X, if the Partnership is
liquidated within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations but no event resulting in the termination of the Partnership pursuant to Section 10.1 has occurred, the Property shall not be liquidated, the
Partnership’s liabilities shall not be paid or discharged, and the Partnership’s affairs shall not be wound up. Instead, solely for federal income tax purposes, the Partnership shall be deemed to have contributed all its Property and
liabilities to a 

  
 53 

 
new partnership in exchange for an interest in such new partnership and, immediately thereafter, the Partnership will be deemed to liquidate by distributing interests in the new partnership to
the Partners. 
 Section 10.5 RESERVE. Notwithstanding the provisions of Sections 10.3 and 10.4, the
General Partner may retain such amount as it deems necessary as a reserve for any contingent liabilities or obligations of the Partnership, which reserve, after the passage of a reasonable period of time, shall be distributed pursuant to the
provisions of this Article X. 
 Section 10.6 FINAL ACCOUNTING. Each of the Partners shall be furnished with
a statement examined by the Partnership’s independent accountants, which shall set forth the assets and liabilities of the Partnership as of the date of the complete liquidation. Upon the compliance by the General Partner with the foregoing
distribution plan, the Limited Partners shall cease to be such, and the General Partner, as the sole remaining Partner of the Partnership, shall execute and cause to be filed a Certificate of Cancellation of the Partnership and any and all other
documents necessary with respect to termination and cancellation of the Partnership. 
 ARTICLE XI 

AMENDMENTS 
 Section 11.1 AUTHORITY TO AMEND. 
 (a) This Agreement
may be amended by the General Partner without the approval of any other Partner if such amendment (i) is solely for the purpose of clarification or is of an inconsequential nature and (ii) does not change the substance hereof and the
Partnership has obtained an opinion of counsel to that effect. 
 (b) This Agreement may be amended by the
General Partner without the approval of any other Partner if such amendment is to reflect the admission, substitution or withdrawal of Limited Partners; to reflect the issuance of additional Partnership Interests or to amend the calculation of the
Cash Amount and the Conversion Factor pursuant to a transaction described in Section 9.1(c). 
 (c)
This Agreement may be amended by the General Partner without the approval of any other Partner if such amendment is, in the opinion of counsel for the Partnership, necessary or appropriate to satisfy requirements of the Code with respect to
partnerships or REITs or of any federal or state securities laws or regulations. Any amendment made pursuant to this Section 11.1(c) may be made effective as of the date of this Agreement. 

(d) Notwithstanding any contrary provision of this Agreement, any amendment to this Agreement or other act which would
(i) adversely affect the limited liabilities of the Limited Partners, (ii) impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership, (iii) change the method of allocation of profit and
loss as provided in Article V or the 

  
 54 

 
distribution provisions of Articles VIII and X hereof, (iv) seek to impose personal liability on the Limited Partners, or (v) affect the operation of the Conversion Factor
of the Redemption Right shall require the consent and approval of Limited Partners holding more than sixty-six and two-thirds percent (66 2/3%) of the Common Percentage Interests of the Limited Partners. 

(e) Except as otherwise specifically provided in this Section 11.1, amendments to this Agreement shall require
the approval of the General Partner and Limited Partners holding more than fifty percent (50%) of the Common Percentage Interests of the Limited Partners. 
 Section 11.2 NOTICE OF AMENDMENTS. A copy of any amendment to be approved by the Partners pursuant to Sections 11.1(d) or 11.1(e) shall be mailed in advance to such Partners.
Partners shall be notified as to the substance of any amendment pursuant to Sections 11.1(a), (b) or (c), and upon request shall be furnished a copy thereof. 

ARTICLE XII 

POWER OF ATTORNEY 
 Section 12.1 POWER. Each of the Limited Partners irrevocably constitutes and appoints the General Partner as such Limited Partner’s true and lawful attorney in such Limited Partner’s
name, place and stead to make, execute, swear to, acknowledge, deliver and file: 
 (a) Any certificates or other
instruments which may be required to be filed by the Partnership under the laws of the State of Delaware or of any other state or jurisdiction in which the General Partner shall deem it advisable to file; 

(b) Any documents, certificates or other instruments, including, but not limited to, (i) any and all amendments and
modifications of this Agreement or of the instruments described in Section 12.1(a) which may be required or deemed desirable by the General Partner to effectuate the provisions of any part of this Agreement, (ii) all instruments
relating to the admission, withdrawal, removal or substitution of any Partner, and (iii) by way of extension and not limitation, to do all such other things as shall be necessary to continue and to carry on the business of the Partnership; and

 (c) All documents, certificates or other instruments that may be required to effectuate the dissolution and
termination of the Partnership, to the extent such dissolution and termination is authorized hereby. The power of attorney granted hereby shall not constitute a waiver of, or be used to avoid, the rights of the Partners to approve certain amendments
to this Agreement pursuant to Sections 11.1(d) and 11.1(e) or be used in any other manner inconsistent with the status of the Partnership as a limited partnership or inconsistent with the provisions of this Agreement. Each such Limited
Partner hereby agrees to be bound by any representation made by the General Partner, acting in good faith 

  
 55 

 
pursuant to such power of attorney; and each such Limited Partner hereby waives any and all defenses which may be available to contest, negate or disaffirm the action of the General Partner taken
in good faith under such power of attorney. 
 Section 12.2 SURVIVAL OF POWER. It is expressly intended by each of
the Partners that the foregoing power of attorney is coupled with an interest, is irrevocable and shall survive the death, incompetence, dissolution, liquidation or adjudication of insanity or bankruptcy or insolvency of each such Partner. The
foregoing power of attorney shall survive the delivery of an assignment by any of the Partners of such Partner’s entire interest in the Partnership, except that where an assignee of such entire interest has become a substitute Limited Partner,
then the foregoing power of attorney of the assignor Partner shall survive the delivery of such assignment for the sole purpose of enabling the General Partner to execute, acknowledge and file any and all instruments necessary to effectuate such
substitution. 
 ARTICLE XIII 
 CONSENTS, APPROVALS, VOTING AND MEETINGS 
 Section 13.1
METHOD OF GIVING CONSENT OR APPROVAL. Any consent or approval required by this Agreement may be given as follows: 
 (a) by a written consent given by the consenting Partner and received by the General Partner at or prior to the doing of the act or thing for which the consent is solicited, provided that such consent
shall not have been nullified by: 
 (i) Notice to the General Partner of such nullification by the consenting
Partner prior to the doing of any act or thing, the doing of which is not subject to approval at a meeting called pursuant to Section 13.2, or 
 (ii) Notice to the General Partner of such nullification by the consenting Partner prior to the time of any meeting called pursuant to Section 13.2 to consider the doing of such act or thing,
or 
 (iii) The negative vote by such consenting Partner at any meeting called pursuant to
Section 13.2 to consider the doing of such act or thing; 
 (b) by the affirmative vote by the
consenting Partner for the doing of the act or thing for which the consent is solicited at any meeting called pursuant to Section 13.2 to consider the doing of such act or thing; or 

(c) by the failure of the Partner to respond or object to a request from the General Partner for such Partner’s
consent within thirty (30) days from its receipt of such request (or such shorter period of time as the General Partner may indicate in such request in order to ensure that the General Partner has sufficient time to respond, if required, to any
third party with respect to the subject matter of such request). 

  
 56 

 Section 13.2 MEETINGS OF LIMITED PARTNERS. Any matter requiring the consent or
vote of all or any of the Partners may be considered at a meeting of the Partners held not less than five (5) nor more than sixty (60) days after notice thereof shall have been given by the General Partner to all Partners. Such notice
(i) may be given by the General Partner, in its discretion, at any time, or (ii) shall be given by the General Partner within fifteen (15) days after receipt from Limited Partners holding more than fifty percent (50%) of the
Common Percentage Interests of the Limited Partners of a request for such meeting. 
 Section 13.3 OPINION. Except
for Consents obtained pursuant to Sections 13.1 or 13.2, no Limited Partner shall exercise any consent or voting rights unless either (a) at the time of the giving of consent or casting of any vote by the Partners hereunder,
counsel for the Partnership or counsel employed by the Limited Partners shall have delivered to the Partnership an opinion satisfactory to the Partners to the effect that such conduct (i) is permitted by the Act, (ii) will not impair the
limited liability of the Limited Partners, and (iii) will not adversely affect the classification of the Partnership as a partnership for federal income tax purposes, or (b) irrespective of the delivery or non-delivery of such opinion of
counsel, Limited Partners holding more than seventy-five percent (75%) of the Common Percentage Interests of the Limited Partners determine to exercise their consent or voting rights. 

Section 13.4 SUBMISSIONS TO PARTNERS. The General Partner shall give the Partners notice of any proposal or other matter
required by any provision of this Agreement, or by law, to be submitted for consideration and approval of the Partners. Such notice shall include any information required by the relevant provision or by law. 

ARTICLE XIV 

MISCELLANEOUS 
 Section 14.1 GOVERNING LAW. The Partnership and this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. 

Section 14.2 AGREEMENT FOR FURTHER EXECUTION. At any time or times upon the request of the General Partner, the Limited
Partners hereby agree to sign, swear to, acknowledge and deliver all further documents and certificates required by the laws of Delaware, or any other jurisdiction in which the Partnership does, or proposes to do, business, or which may be
reasonable, necessary, appropriate or desirable to carry out the provisions of this Agreement or the Act. This Section 14.2 shall not prejudice or affect the rights of the Limited Partners to approve certain amendments to this Agreement
pursuant to Sections 11.1(d) and 11.1(e). 
 Section 14.3 ENTIRE AGREEMENT. This Agreement and the
exhibits attached hereto contain the entire understanding among the parties and supersede any prior understandings or agreements among them respecting the within subject matter. There are no representations, agreements, arrangements or
understandings, oral or written, between or among the parties hereto relating to the subject matter of this Agreement which are not fully expressed herein. 

  
 57 

 Section 14.4 SEVERABILITY. This Agreement is intended to be performed in
accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations of the jurisdictions in which the Partnership does business. If any provision of this Agreement, or the application thereof to any person or
circumstance, shall, for any reason and to any extent, be invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby, but rather shall be enforced
to the greatest extent permitted by law. 
 Section 14.5 NOTICES. Notices to Partners or to the Partnership shall be
deemed to have been given when personally delivered or mailed, by prepaid registered or certified mail, addressed as set forth in Exhibit A attached hereto, unless a notice of change of address has previously been given in writing by the
addressee to the addressor, in which case such notice shall be addressed to the address set forth in such notice of change of address. 
 Section 14.6 TITLES AND CAPTIONS. All titles and captions are for convenience only, do not form a substantive part of this Agreement, and shall not restrict or enlarge any substantive
provisions of this Agreement. 
 Section 14.7 COUNTERPARTS. This Agreement may be executed in multiple counterparts,
each one of which shall constitute an original executed copy of this Agreement. 
 Section 14.8 PRONOUNS. All
pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons may require. 
 Section 14.9 SURVIVAL OF RIGHTS. Subject to the provisions hereof limiting transfers, this Agreement shall be binding upon and inure to the benefit of the Partners and the Partnership and
their respective legal representatives, successors, transferees and assigns. 

  
 58 

 IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and year first above written.

  

			
	GENERAL PARTNER:
	
	 Ashford Prime OP General Partner LLC,
 a Delaware limited liability company

		
	By:	 	  

		 	David A. Brooks, Vice President
	
	LIMITED PARTNER:
	
	 Ashford Prime OP Limited Partner LLC,
 a Delaware limited liability company
 as a Limited Partner of Ashford Hospitality Prime Limited
Partnership

		
	By:	 	  

		 	David A. Brooks, Vice President

 The undersigned has executed this Agreement not as a Partner of the Partnership but to agree to the
provisions of this Agreement imposing obligations on, granting rights to, the Company. 
  

			
	ASHFORD HOSPITALITY PRIME, INC.
		
	By:	 	  

		 	Monty J. Bennett, Chief Executive Officer

 EXHIBIT A 
 [Begins on Next Page] 

  
 Exhibit A

 EXHIBIT B 
 FEDERAL INCOME TAX MATTERS 
 For purposes of interpreting and implementing Article V
of the Partnership Agreement, the following rules shall apply and shall be treated as part of the terms of the Partnership Agreement: 
  

	A.	SPECIAL ALLOCATION PROVISIONS. 

1. To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or
Section 743(b) is required pursuant to Section 1.704-1(b)(2)(iv)(m)(2) or Section 1.704-1(b)(2)(iv)(m)(4) of the Treasury Regulations to be taken into account in determining Capital Accounts as the result of a distribution to a
Partner in complete liquidation of its Partnership Interest, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such
basis) and such gain or loss shall be specially allocated to the Partners in accordance with their interests in the Partnership if Section 1.704-1(b)(2)(iv)(m)(2) of the Treasury Regulations applies, or to the Partnership to whom such
distribution was made if Section 1.704-1(b)(2)(iv)(m)(4) of the Treasury Regulations applies. 
 2. If a Partner transfers
any part or all of its Partnership Interest or if Common Percentage Interests or Preferred Percentage Interests vary during a taxable year of the Partnership, the General Partner, in its sole and absolute discretion, shall determine which method
authorized under the Code (including Section 706 of the Code) and the Treasury Regulations shall be used to allocate the distributive shares. 
 3. To the extent required by law, income, gain, loss and deduction attributable to property contributed to the Partnership by a Partner shall be shared among the Partners so as to take into account any
variation between the basis of the property and the fair market value of the property at the time of contribution in accordance with the requirements of Section 704(c) of the Code and the applicable Treasury Regulations thereunder as more fully
described in Part B hereof. Treasury Regulations under Section 704(c) of the Code allow partnerships to use any reasonable method for accounting for Book-Tax Differences for contributions of property so that a contributing partner receives the
tax benefits and burdens of any built-in gain or loss associated with contributed property. The Operating Partnership shall account for Book-Tax Differences using a method specifically approved in the Treasury Regulations, such as the traditional
method. An allocation of remaining built-in gain under Section 704(c) will be made when Section 704(c) property is sold. 
 4. If the Partnership is entitled to a deduction for interest imputed under any provision of the Code on any loan or advance from a Partner (whether such interest is currently deducted, capitalized or
amortized), such deduction shall be allocated solely to such Partner. 
 5. To the extent any payments in the nature of fees
made to a Partner or reimbursements of expenses to any Partner are finally determined by the Internal Revenue Service to be distributions to a Partner for federal income tax purposes, there will be a gross income allocation to such Partner in the
amount of such distribution. 

  
 Exhibit B
– Page 1 

 6. (a) Notwithstanding any provision of the Partnership Agreement to the contrary and
subject to the exceptions set forth in Section 1.704-2(f)(2)-(5) of the Treasury Regulations, if there is a net decrease in Partnership Minimum Gain during any Partnership fiscal year, each Partner shall be specially allocated items of
Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain determined in accordance with Section 1.704-2(g)(2) of the Treasury
Regulations. Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with
Section 1.704-2(f) of the Treasury Regulations. This paragraph 6(a) is intended to comply with the minimum gain chargeback requirement in such Section of the Treasury Regulations and shall be interpreted consistently therewith. To the
extent permitted by such Section of the Treasury Regulations and for purposes of this paragraph 6(a) only, each Partner’s Adjusted Capital Account Balance shall be determined prior to any other allocations pursuant to Article V of
the Partnership Agreement with respect to such fiscal year and without regard to any net decrease in Partner Minimum Gain during such fiscal year. 
 (b) Notwithstanding any provision of the Partnership Agreement to the contrary, except paragraph 6(a) of this Exhibit B and subject to the exceptions set forth in Section 1.704-2(i)(4)
of the Treasury Regulations, if there is a net decrease in Partner Nonrecourse Debt Minimum Gain during any Partnership fiscal year, each Partner who has a share of the Partner Nonrecourse Debt Minimum Gain, determined in accordance with
Section 1.704-2(i)(3) of the Treasury Regulations, shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s share of the net decrease in
Partner Nonrecourse Debt Minimum Gain, determined in accordance with Section 1.704-2(i)(5) of the Treasury Regulations. Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated
to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Section 1.704-2(i)(4) of the Treasury Regulations. This paragraph 6(b) is intended to comply with the minimum gain chargeback
requirement in such Section of the Treasury Regulations and shall be interpreted consistently therewith. Solely for purposes of this paragraph 6(b), each Partner’s Adjusted Capital Account Balance shall be determined prior to any other
allocations pursuant to Article V of the Partnership Agreement with respect to such fiscal year, other than allocations pursuant to paragraph 6(a) hereof. 
 7. If any Partners unexpectedly receive any adjustments, allocations or distributions described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) or
1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be specially allocated to such Partners in an amount and manner sufficient to eliminate the deficits in their Adjusted Capital Account Balances created by such adjustments,
allocations or distributions as quickly as possible, provided that an allocation pursuant to this paragraph 7 shall be made only if and to the extent that the Partner would have a deficit balance in its Adjusted Capital Account Balance after
all other allocations provided for Article V of the Partnership Agreement and this Exhibit B have been tentatively made as if this paragraph 7 were not in this Exhibit B. 

  
 Exhibit B
– Page 2 

 8. No loss shall be allocated to any Partner to the extent that such allocation would result
in a deficit in its Adjusted Capital Account Balance while any other Partner continues to have a positive Adjusted Capital Account Balance; in such event, losses shall first be allocated to any Partners with positive Adjusted Capital Account
Balances, and in proportion to such balances, to the extent necessary to reduce their positive Adjusted Capital Account Balances to zero. Any excess shall be allocated to the General Partner. 

9. If any Partner has a deficit balance in its Adjusted Capital Account Balance at the end of any fiscal year or other period,
such Partner shall be specially allocated items of Partnership gross income and gain in the amount of such excess as quickly as possible; provided, however, that an allocation pursuant to this paragraph 9 shall be made only if and to
the extent that such Partner would have a deficit balance in its Adjusted Capital Account Balance after all other allocations provided in this Part A have been tentatively made as if paragraph 7 and this paragraph 9 were not in
this Exhibit B. 
 10. Any special allocations of items pursuant to this Part A shall be taken into account in
computing subsequent allocations so that the net amount of any items so allocated and the profits, losses and all other items allocated to each such Partner pursuant to Article V of the Partnership Agreement shall, to the extent possible, be
equal to the net amount that would have been allocated to each such Partner pursuant to the provisions of Article V of the Partnership Agreement if such special allocations had not occurred. 

11. Nonrecourse Deductions for any fiscal year or other period shall be specially allocated to the Partners in the manner set forth in
Section 5.1(b)(iii) of the Partnership Agreement. 
 12. Any Partner Nonrecourse Deduction for any fiscal year or
other period shall be specially allocated to the Partner who bears the economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable in accordance with Section 1.704-2(i) of the
Treasury Regulations. 
 13. Notwithstanding any provision in Article V of the Partnership Agreement or this Exhibit
B to the contrary, if the Partnership disposes of all or substantially all of its assets in a transaction that will lead to a liquidation of the Partnership pursuant to Article X, then any profits or losses realized in connection with
such transaction and thereafter (and, if necessary, constituent items of income, gain, loss and deduction) shall be specially allocated for such taxable year of the Partnership (and to the extent permitted by Section 761(c) of the Code, for the
immediately preceding taxable year of the Partnership) among the Partners as required so as to cause liquidating distributions pursuant to Section 10.4(a) of the Partnership Agreement to be made in the same amounts and proportions as
would have resulted had such distributions instead been made pursuant to Article VIII of the Partnership Agreement. 
  

	B.	CAPITAL ACCOUNT ADJUSTMENTS AND TAX ALLOCATIONS. 

 1. For purposes of computing the amount of any item of income, gain, deduction or loss to be reflected in the Partners’ Capital Accounts, the determination, recognition and

  
 Exhibit B
– Page 3 

 
classification of any such item shall be the same as its determination, recognition and classification for federal income tax purposes; provided, however, that: 

(a) Any income, gain or loss attributable to the taxable disposition of any property shall be determined by the Partnership as if the
adjusted basis of such property as of such date of disposition was equal in amount to the Carrying Value. 
 (b) The computation
of all items of income, gain, loss and deduction shall be made by the Partnership and, as to those items described in Section 705(a)(1)(B) or Section 705(a)(2)(B) of the Code, without regard to the fact that such items are not includable
in gross income or are neither currently deductible nor capitalizable for federal income tax purposes. 
 (c) In lieu of the
depreciation, amortization, and other cost recovery deductions taken into account in computing the Partnership’s taxable income or loss, there shall be taken into account Depreciation for a fiscal year or other period. 

(d) The Partnership shall be treated as owning directly its proportionate share (as determined by the General Partner based upon the
provisions of the applicable partnership agreement of a Subsidiary of the Partnership) of all property owned by (i) a Subsidiary of the Partnership that is classified as a partnership for U.S. federal income tax purposes and (ii) any other
partnership, limited liability company, unincorporated business or other entity classified as a partnership for U.S. federal income tax purposes of which the Partnership or a Subsidiary of the Partnership is, directly or indirectly, a partner,
member or other equity holder. 
 2. A transferee of a Partnership Interest will succeed to the Capital Account relating to the
Partnership Interest transferred. 
 3. Upon (i) an issuance of additional Partnership Interests in exchange for
more than a de minimis capital contribution to the Partnership, (ii) an issuance of additional Partnership Interests (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the
Partnership by an existing Partner acting in a partner capacity or by a new Partner acting in a partner capacity or in anticipation of being a Partner, or (iii) the distribution by the Partnership to a Partner of more than a de minimis
amount of property as consideration for an interest in the Partnership, the Capital Accounts of all Partners (and the Carrying Values of all Partnership properties) shall, immediately prior to such event, be adjusted (consistent with the provisions
hereof) upward or downward to reflect any unrealized gain or unrealized loss attributable to each Partnership property (as if such unrealized gain or unrealized loss had been recognized upon an actual sale of such property at the fair market value
thereof, immediately prior to such issuance, and had been allocated to the Partners, at such time, pursuant to Article V of the Partnership Agreement). In determining such unrealized gain or unrealized loss attributable to the properties, the
fair market value of Partnership properties shall be determined by the General Partner using such reasonable methods of valuation as it may adopt. 
 4. Immediately prior to the distribution of any Partnership property in liquidation of the Partnership, the Capital Accounts of all Partners shall be adjusted (consistent with the

  
 Exhibit B
– Page 4 

 
provisions hereof and Section 704 of the Code) upward or downward to reflect any unrealized gain or unrealized loss attributable to the Partnership property (as if such unrealized gain or
unrealized loss had been recognized upon an actual sale of each such property, immediately prior to such distribution, and had been allocated to the Partners, at such time, pursuant to Article V of the Partnership Agreement). In determining
such unrealized gain or unrealized loss attributable to property, the fair market value of Partnership property shall be determined by the General Partner using such reasonable methods of valuation as it may adopt. 

5. In accordance with Section 704(c) of the Code and the Treasury Regulations thereunder, income, gain, loss and deduction with
respect to any property shall, solely for tax purposes, and not for Capital Account purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income
tax purposes. The General Partner shall make any elections or other decisions relating to such allocations. 
 6. If the
Carrying Value of any Partnership asset is adjusted as described in paragraph 3 above, subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of
such asset for federal income tax purposes and its Carrying Value in the same manner as under Section 704(c) of the Code and the Treasury Regulations thereunder. 
 7. Any elections or other decisions relating to such allocations shall be made by the General Partner in any manner that reasonably reflects the purpose and intention of the Partnership Agreement and this
Exhibit B. 
 C. DEFINITIONS. For the purposes of this Exhibit B, the following terms shall have the meanings
indicated unless the context clearly indicates otherwise: 
 “ADJUSTED CAPITAL ACCOUNT BALANCE”: means the
balance in the Capital Account of a Partner as of the end of the relevant fiscal year of the Partnership, after giving effect to the following: (i) credit to such Capital Account any amounts the Partner is obligated to restore, pursuant to the
terms of the Partnership Agreement or otherwise, or is deemed obligated to restore pursuant to the penultimate sentences of Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Treasury Regulations, and (ii) debit to such capital account the items
described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Treasury Regulations. 

“DEPRECIATION”: means, for each fiscal year or other period, an amount equal to the depreciation, amortization or other
cost recovery deduction allowable for federal income tax purposes with respect to property for such fiscal year or other period, except that (a) with respect to any property the Carrying Value of which differs from its adjusted tax basis for
federal income tax purposes and which difference is being eliminated by use of the remedial allocation method pursuant to Section 1.704-3(d) of the Treasury Regulations, Depreciation for such fiscal year or other period shall be the amount of
book basis recovered for such fiscal year or other period under the rules prescribed by Section 1.704-3(d)(2) of the Treasury Regulations, and (b) with respect to any other property the Carrying Value of which differs from its adjusted tax
basis at the beginning of such fiscal year or other period, Depreciation shall be an amount which bears the same ratio to such beginning Carrying Value as the federal income tax 

  
 Exhibit B
– Page 5 

 
depreciation, amortization or other cost recovery deduction for such fiscal year or other period bears to such beginning adjusted tax basis; provided, that if the adjusted tax basis of
any property at the beginning of such fiscal year or other period is zero, Depreciation with respect to such property shall be determined with reference to such beginning value using any reasonable method selected by the General Partner.

 “NONRECOURSE DEDUCTIONS”: shall have the meaning set forth in Section 1.704-2(b)(1) of the Treasury
Regulations. The amount of Nonrecourse Deductions for a Partnership fiscal year equals the excess, if any, of the net increase, if any, in the amount of Partnership Minimum Gain during that fiscal year over the aggregate amount of any distributions
during that fiscal year of proceeds of a Nonrecourse Liability, that are allocable to an increase in Partnership Minimum Gain, determined according to the provisions of Section 1.704-2(c) of the Treasury Regulations. 

“NONRECOURSE LIABILITY”: shall have the meaning set forth in Section 1.704-2(b)(3) of the Treasury Regulations.

 “PARTNER NONRECOURSE DEBT MINIMUM GAIN”: means an amount, with respect to each Partner Nonrecourse Debt,
determined in accordance with Section 1.704-2(i) of the Treasury Regulations. 
 “PARTNER NONRECOURSE
DEBT”: shall have the meaning set forth in Section 1.704-2(b)(4) of the Treasury Regulations. 
 “PARTNER
NONRECOURSE DEDUCTIONS”: shall have the meaning set forth in Section 1.704-2(i)(2) of the Treasury Regulations. For any Partnership taxable year, the amount of Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt
equal the net increase during the year, if any, in the amount of Partner Nonrecourse Debt Minimum Gain reduced (but not below zero) by proceeds of the liability that are both attributable to the liability and allocable to an increase in the Partner
Nonrecourse Debt Minimum Gain. 
 “PARTNERSHIP AGREEMENT”: shall mean this Amended and Restated Limited
Partnership Agreement of Ashford Hospitality Prime Limited Partnership, as amended. 
 “PARTNERSHIP MINIMUM
GAIN”: shall have the meaning set forth in Sections 1.704-2(b)(2) and 1.704-2(d) of the Treasury Regulations. 
 For purposes of this
Exhibit B, all other capitalized terms will have the same definition as in the Partnership Agreement. 

  
 Exhibit B
– Page 6 

 EXHIBIT C 
 NOTICE OF EXERCISE OF REDEMPTION RIGHT 
 The undersigned hereby irrevocably
(i) presents for redemption on            (such date being at least 3 Business Days after the date set forth below)
            Partnership Units (as defined in the Partnership Agreement defined below) in Ashford Hospitality Prime Limited Partnership, in accordance with the terms of the Amended and
Restated Agreement of Limited Partnership of Ashford Hospitality Prime Limited Partnership (the “Partnership Agreement”), and the Redemption Right (as defined in the Partnership Agreement) referred to therein,
(ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs that the Cash Amount or REIT Shares (both as defined in the Partnership Agreement) deliverable upon exercise of the Redemption Right be
delivered to the address specified below, and if REIT Shares are to be delivered, such REIT Shares be registered or placed in the name(s) and at the addresses specified below. 

 

			
	Dated:	 	  

	Name of Limited Partner:
	
	  

	(Signature of Limited Partner)
	
	  

	(Street Address)
	  

	  

	(City State Zip Code)
	
	IF REIT Shares are to be issued, issue to:
	
	  

	(Name)
	
	  

	(Social Security or Identifying Number)

  
 Exhibit C
– Page 1 

 EXHIBIT D 
 NOTICE OF ELECTION BY PARTNER TO CONVERT 
 LTIP UNITS INTO COMMON
PARTNERSHIP UNITS 
 The undersigned LTIP Unitholder hereby irrevocably (i) elects to convert the number
of LTIP Units in Ashford Hospitality Prime Limited Partnership (the “Partnership”) set forth below into Common Partnership Units in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of the
Partnership, as amended; and (ii) directs that any cash in lieu of Common Partnership Units that may be deliverable upon such conversion be delivered to the address specified below. The undersigned hereby represents, warrants, and certifies
that the undersigned (a) has title to such LTIP Units, free and clear of the rights or interests of any other person or entity other than the Partnership; (b) has the full right, power, and authority to cause the conversion of such LTIP
Units as provided herein; and (c) has obtained the consent or approval of all persons or entities, if any, having the right to consent or approve such conversion. 

 

			
	Name of LTIP Unitholder:	 	  

	  
	 	(Please Print: Exact Name as Registered with Partnership)

 Number of LTIP Units to be Converted:
                             
 Date to be Converted                             (such
date being not less than 3 Business Days nor more than 10 Business Days prior to the Date of this Notice set forth below) 
 Date of this
Notice:                              

 

					
	  

	(Signature of Limited Partner: Sign Exact Name as Registered with Partnership)
	
	  

	(Street Address)
	
	  

	(City)	  	(State)	  	(Zip Code)

  

					
	Signature Guaranteed by:	 	  

  
 Exhibit D
– Page 1 

 EXHIBIT E 
 NOTICE OF ELECTION BY PARTNERSHIP TO FORCE CONVERSIONOF LTIP UNITS INTO COMMON PARTNERSHIP UNITS 
 Ashford Hospitality Prime Limited Partnership (the “Partnership”) hereby irrevocably (i) elects to cause the number of LTIP Units held by the LTIP Unitholder set forth below
to be converted into Common Partnership Units in accordance with the terms of the Amended and Restated Agreement of Limited Partnership of the Partnership, as amended. 
  

			
	Name of LTIP Unitholder:	 	  

	  
	 	(Please Print: Exact Name as Registered with Partnership)

 Number of LTIP Units to be Converted:
                                 

Date of this Notice:
                                 

  
 Exhibit E
– Page 1 

 EXHIBIT F 
 FORM OF PARTNERSHIP INTEREST 
 AND PARTNERSHIP UNIT CERTIFICATE

 THE LIMITED PARTNERSHIP INTERESTS (THE “INTERESTS”) REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). SUCH INTERESTS MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION OF SAID ACT AND THE RULES AND REGULATIONS THEREUNDER AND
ALL APPLICABLE STATE SECURITIES OR “BLUE SKY LAWS.” 
 THE INTERESTS REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER
AND OTHER RESTRICTIONS SET FORTH IN THE AGREEMENT OF LIMITED PARTNERSHIP OF THE PARTNERSHIP, A COPY OF WHICH MAY BE OBTAINED FROM THE PARTNERSHIP AT ITS PRINCIPAL EXECUTIVE OFFICE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OR WITHOUT COMPLYING WITH THE TERMS AND CONDITIONS OF SUCH AGREEMENT. 
 CERTIFICATE FOR 

[CLASS] 
 UNITS(S)
OF PARTNERSHIP INTEREST AND PARTNERSHIP UNITS 
 IN 
 ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP 
 Class
                 
  

			
	No.             	  	Unit(s)             

 This certifies that             is a
[limited] [general] partner of Ashford Hospitality Prime Limited Partnership (the “Partnership”) whose Partnership Interest in the Partnership, as set forth in the Limited Partnership Agreement of the Partnership, as amended and restated
from time to time (the “Partnership Agreement”) represents             Unit(s) of [Class] Partnership Interest and [Class] Partnership Units in the Partnership. 

In witness whereof, the Partnership has caused this Certificate to be signed by its duly authorized officers this
            day of             , 20    . 

 

			
	ASHFORD PRIME OP GENERAL PARTNER LLC
		
	By:	 	  

  
 Exhibit F
– Page 1EX-10.6

 Exhibit 10.6 
 OPTION AGREEMENT 
 PIER HOUSE RESORT & SPA 

THIS OPTION AGREEMENT (this “Option Agreement”) is executed as of this [—] day of [—], 2013 (the “Effective Date”) by ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP (“Ashford
Prime OP”) and ASHFORD HOSPITALITY LIMITED PARTNERSHIP. (“Ashford Trust OP”), with respect to the Property Entities (defined below), and ASHFORD TRS CORPORATION (“Ashford
Trust TRS” and together with Ashford Trust OP, the “Grantors”) and ASHFORD PRIME TRS CORPORATION (“Ashford Prime TRS” and together with Ashford
Prime OP, the “Optionees”), with respect to the TRS Entities (defined below). 
 WHEREAS,
Ashford Trust OP directly or indirectly owns 100% of Ashford Pier House LP, a Delaware limited partnership (the “Property Partnership”), through its ownership of 100% of the membership interest of Ashford Pier
House Mezz B LLC (“Mezz B”), which owns 100% of the membership interest of Ashford Pier House Mezz A LLC (“Mezz A”), which owns 100% of the limited partnership interest in
the Property Partnership and 100% of the equity interest in Ashford Pier House GP LLC, the general partner of the Property Partnership (the “General Partner” and together with Mezz B, Mezz A and the Property
Partnership, the “Property Entities”); 
 WHEREAS, Ashford Trust TRS owns 100% of the membership interest in TRS Pier
House Mezz B LLC (“Mezz B TRS”), which owns 100% of the membership interest in Ashford TRS Pier House Mezz A LLC (“Mezz A LLC”), which owns 100% of the membership interest in Ashford TRS Pier House LLC (the “Pier House
TRS” and together with Mezz B TRS and Mezz A TRS (the “TRS Entities”); 
 WHEREAS, the Property Partnership owns
the hotel property more fully described on Exhibit A attached hereto, together with all improvements and personal property located thereon or related thereto (collectively, the “Property”) and the Pier House TRS
operates the Property pursuant to an operating lease with the Property Partnership; 
 WHEREAS, Ashford Prime OP desires to
acquire from Ashford Trust OP, and Ashford Trust OP desires to grant to Ashford Prime OP, an option to purchase 100% of Ashford Trust OP’s interest in Mezz B (collectively, the “Ashford Trust Equity
Interests”) in exchange for the Property Purchase Price (defined below) and subject to the terms and conditions set forth herein; 
 WHEREAS, Ashford Prime TRS desires to acquire from Ashford Trust TRS, and Ashford Trust TRS desires to grant to Ashford Prime TRS, an option to purchase 100% of Ashford Trust TRS’ interest in Mezz B
TRS (the “Ashford Trust TRS Equity Interests”) in exchange for the TRS Purchase Price (defined below) and subject to the terms and conditions set forth herein; 

NOW, THEREFORE, in consideration of ten dollars ($10.00) paid by the Optionees to the Grantors, the mutual covenants and conditions set
forth herein and other good 

 
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Optionees and Grantors agree as follows: 

ARTICLE I 

THE OPTION 
 Section 1.1 Grant of Option. Ashford Trust OP hereby grants to Ashford Prime OP an irrevocable option to acquire the Ashford Trust Equity Interests in
exchange for the Property Purchase Price, and Ashford Trust TRS hereby grants to Ashford Prime TRS an irrevocable option to acquire the Ashford Trust TRS Equity Interests in exchange for the TRS Purchase Price (collectively, the “Purchase
Option”), in each case subject to the terms and conditions hereinafter set forth. Optionees acknowledge and agree that the options to purchase the Ashford Trust Equity Interests and the Ashford Trust TRS Equity Interests (collectively,
the “Grantor Equity Interests”) may only be exercised together and simultaneously as a single Purchase Option. 
 Section 1.2 Term and Exercise of Option. The Purchase Option may be exercised beginning from and after the Effective Date through 5:00 p.m. on the 18 month
anniversary of the Effective Date (the “Option Termination Date”). The Optionees may only exercise the Purchase Option by delivering a written purchase notice (“Purchase
Notice”) substantially in the form of Exhibit B to the Grantors on or before the Option Termination Date. If Optionees do not deliver a Purchase Notice on or before the Option Termination Date, the Purchase Option
shall be deemed terminated and shall be of no further force and effect, and the Grantors shall have no further obligations hereunder. 
 Section 1.3 Purchase Price and Payment.  

(a) The full purchase price for the Ashford Trust Equity Interests (as adjusted pursuant to Section 2.7(b) and the
other terms of this Option Agreement, the “Property Purchase Price”) upon the exercise of the Purchase Option shall be an amount equal to: 

(i) $[91,671,000] (the “Base Amount”) plus the actual cost of any owner funded capital
improvements made by Ashford Trust OP between the Effective Date and the Closing Date (“CapEx”) for the six month period commencing on the Effective Date (the “Initial Exercise Period”); 

(ii) the Base Amount, plus one percent of the Base Amount, plus CapEx, if any, for the six month period immediately
following the end of the Initial Exercise Period (the “Second Exercise Period”); or 
 (iii) the Base Amount, plus two percent of the Base Amount, plus CapEx, if any, for the six month period immediately following the end of the Second Exercise Period. 

(b) The Property Purchase Price is payable in either cash or common units of limited partnership of Ashford Prime OP
(“Ashford Prime OP Units”), at the option of Ashford Trust OP. Ashford Trust OP must notify Ashford Prime OP of its election to receive cash or Ashford Prime OP Units no later than the Business Day following the delivery of
the Purchase Notice. If 

  
 -2-

 
Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units, the number of Ashford Prime OP Units will be calculated based on the assumption that the Value
(as defined below) of each Ashford Prime OP Unit will equal the Value of a share common stock of Ashford Hospitality Prime, Inc. (“Ashford Prime”), calculated as of the date the Purchase Option is exercised (the
“Option Exercise Date”). The issuance of the Ashford Prime OP Units, if applicable, shall be evidenced by an amendment to the operating partnership agreement of Ashford Prime OP in such form as shall be reasonably acceptable
to Ashford Trust OP (the “Partnership Amendment”). 
 (c) As used herein,
the term “Value” shall mean, with respect to a share of common stock of Ashford Prime, the average of the daily market price for the ten (10) consecutive trading days immediately preceding a specified date. The market
price for each such trading day shall be: (i) if the stock of Ashford Prime is listed or admitted to trading on any securities exchange or the NASDAQ National Market System, the closing price, regular way, on such day, or if no such sale takes
place on such day, the average of the closing bid and asked prices on such day; (ii) if the stock of Ashford Prime is not listed or admitted to trading on any securities exchange or the NASDAQ National Market System, the last reported sale
price on such day or, if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation source designated by the General Partner; or (iii) if the stock of Ashford Prime is not
listed or admitted to trading on any securities exchange or the NASDAQ National Market System and no such last reported sale price or closing bid and asked prices are available, the average of the reported high bid and low asked prices on such day,
as reported by a reliable quotation source designated by the General Partner, or if there shall be no bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not more than ten
(10) days prior to the date in question) for which prices have been so reported; provided, however, that if there are no bid and asked prices reported during the ten (10) days prior to the date in question, the Value of a share of common
stock of Ashford Prime shall be determined by the General Partner acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment, appropriate. 

(d) The full purchase price for the Ashford Trust TRS Equity Interests (the “TRS Purchase Price”)
upon the exercise of the Purchase Option shall be an amount of cash equal to $616,000. 
 (e) If Ashford Trust OP
elects to receive the Property Purchase Price in Ashford Prime OP Units, the transfer of Mezz B pursuant to this Agreement will be intended to be a contribution governed by Section 721(a) of the Code. In such event, Ashford Trust OP and Ashford
Prime OP agree to such tax treatment and shall file their respective Tax Returns consistent with such treatment, unless otherwise required by applicable law. 
 ARTICLE II 
 CONTRACT TO PURCHASE OR CONTRIBUTE AND CLOSING PROCEDURES

 Section 2.1 Purchase and Sale or Contribution. Upon Optionees’ exercise of
the Purchase Option, Ashford Trust OP shall, subject to Section 2.2 hereof, contribute or sell, transfer, assign, and convey to Ashford Prime OP, and Ashford Prime OP shall accept or 

  
 -3-

 
purchase, as applicable, from Ashford Trust OP, the Ashford Trust Equity Interests, free and clear of all Encumbrances (defined below) in exchange for the Property Purchase Price. Simultaneously,
Ashford Trust TRS shall, subject to Section 2.2 hereof, sell, transfer, assign, and convey to Ashford Prime TRS, and Ashford Prime TRS shall purchase from Ashford Trust TRS, the Ashford Trust TRS Equity Interests, free and clear of all
Encumbrances in exchange for the TRS Purchase Price. Each such sale shall be closed in accordance with this Article II. 

Section 2.2 Closing. The Purchase Notice delivered by Optionees upon exercise of the
Purchase Option shall specify a closing date (“Closing Date”) , which date will be no later than the first day of a calendar month following the date that is 90 days from the date of delivery of the Purchase Notice, for the
closing (the “Closing”) of the transactions contemplated by this Option Agreement. The Closing shall be held at a place and time determined by mutual agreement of Optionees and Grantors, or if Optionees and Grantors fail to
mutually agree, at a place and time determined by Ashford Prime OP in its sole discretion. At or before such Closing, Optionees and Grantors will execute and deliver all closing documents required by the parties in accordance with
Section 2.4 (the “Closing Documents”). 
 Section 2.3
Conditions to Performance of Obligations. Upon exercise of the Purchase Option by the Optionees, the transactions contemplated by this Option Agreement and the Closing Documents will be consummated subject only to satisfaction
of the following conditions or written waiver of such conditions by Optionees and Grantors: 
 (i) All
consents and approvals of Governmental Authorities or third parties, including the waiver of any applicable right of first offer or right of first refusal with respect to each Property Entity, each TRS Entity or the Property, necessary for the
parties to consummate the transactions contemplated hereby (except for those the absence of which would not have a material adverse effect on the ability of the parties to consummate the transactions contemplated by this Option Agreement) shall have
been obtained. 
 (ii) No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any
statute, rule, regulation, executive order, decree, judgment, injunction or other Order (whether temporary, preliminary or permanent), in any case which is in effect and which prevents or prohibits consummation of any of the transactions
contemplated in this Option Agreement nor shall any of the same brought by a Government Authority of competent jurisdiction be pending that seeks the foregoing. 
 (iii) The consummation of the transactions contemplated by this Option Agreement shall not cause Ashford Hospitality Trust, Inc. (“Ashford Trust”), Ashford Trust OP or any
affiliate to breach any covenants under that certain Credit Agreement, dated September 26, 2011, by and among Grantor, Ashford Trust, KeyBanc Capital Markets and KeyBank, National Association, as amended (the “Ashford Trust Credit
Agreement”). 
 Section 2.4 Closing Deliverables.  

  
 -4-

 (a) At the Closing, Ashford Trust OP shall execute, acknowledge where deemed desirable or
necessary by Ashford Prime OP, and deliver to Ashford Prime OP, in addition to any other documents mentioned elsewhere herein, the following: 
 (i) An assignment, assumption and admission agreement (“Assignment Agreement”) substantially in the form of Exhibit C with respect to Mezz B, assigning
100% of the equity interest of Mezz B held by Ashford Trust OP to Ashford Prime OP, with Mezz B acknowledging the admission of Ashford Prime OP as the successor to Ashford Trust OP’s existing equity interest in Mezz B and further acknowledging
Ashford Prime OP’s admission as a member of Mezz B. 
 (ii) A closing certificate which shall be in a form
reasonably satisfactory to Ashford Prime OP and shall reaffirm the accuracy, in all material respects, of all representations and warranties and the satisfaction, in all material respects, of all covenants made by Ashford Trust OP in Article III
hereof. 
 (iii) A certified copy of all appropriate corporate resolutions or partnership actions authorizing the
execution, delivery and performance by Ashford Trust OP of this Option Agreement and the Closing Documents to which Ashford Trust OP is a party. 
 (iv) The Guarantee Schedule (as defined in Section 8.1(c)). 

(v) Any other documents reasonably necessary to contribute or assign, transfer and convey, as applicable, the Ashford
Trust Equity Interests to Ashford Prime OP, to admit Ashford Trust OP as a partner of Ashford Prime OP (if Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units) and to effectuate the transactions contemplated
hereby. 
 (b) At the Closing, Ashford Trust TRS shall execute, acknowledge where deemed desirable or necessary by Ashford Prime
TRS, and deliver to Ashford Prime TRS, in addition to any other documents mentioned elsewhere herein, the following: 
 (i) An Assignment Agreement with respect to Mezz B TRS, assigning 100% of the equity interest of Mezz B TRS held by Ashford Trust TRS to Ashford Prime TRS, with Mezz B TRS acknowledging the admission of
Ashford Prime TRS as the successor to Ashford Trust TRS’s existing equity interest in Mezz B TRS and further acknowledging Ashford Prime TRS’s admission as a member of Mezz B TRS. 

(ii) A closing certificate which shall be in a form reasonably satisfactory to Ashford Prime TRS and shall reaffirm the
accuracy, in all material respects, of all representations and warranties and the satisfaction, in all material respects, of all covenants made by Ashford Trust TRS in Article IV hereof. 

(iii) A certified copy of all appropriate corporate resolutions authorizing the execution, delivery and performance by
Ashford Trust TRS of this Option Agreement and the Closing Documents to which Ashford Trust TRS is a party. 

  
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 (iv) Any other documents reasonably necessary to assign, transfer and convey
the Ashford Trust TRS Equity Interests to Ashford Prime TRS and effectuate the transactions contemplated hereby. 
 (c) At the
Closing, Ashford Prime and/or Ashford Prime OP, as applicable, shall execute, acknowledge where deemed desirable or necessary by Ashford Trust OP, and deliver to Ashford Trust OP, in addition to any other documents mentioned elsewhere herein, the
following: 
 (i) If Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units,
the Partnership Amendment. 
 (ii) If Ashford Trust OP elects to receive the Property Purchase Price in Ashford
Prime OP Units, a registration rights agreement with respect to the registration of the common stock of Ashford Prime into which the Ashford Prime OP Units may be converted, at the option of Ashford Prime, upon the redemption of the Ashford Prime OP
Units, as provided in the limited partnership agreement of Ashford Prime OP. 
 (iii) The Assignment Agreement
with respect to Mezz B. 
 (iv) The Guarantee Schedule. 

(d) At the Closing, Ashford Prime TRS shall execute, acknowledge where deemed desirable or necessary by Ashford Trust TRS, and deliver to
Ashford Trust TRS, in addition to any other documents mentioned elsewhere herein, the following: 
 (i) The TRS
Purchase Price by making a wire transfer of immediately available federal funds to the account of Ashford Trust TRS (or other party designated by Ashford Trust TRS). 

(ii) The Assignment Agreement with respect to Mezz B TRS. 

Section 2.5 Closing Costs. In connection with the exercise of the Purchase Option, each party
shall be responsible for the payment of the fees and expenses of their respective legal counsel, accountants and other professional advisors; Ashford Prime OP shall pay for all applicable transfer taxes and recording fees; and all other closing
costs shall be allocated to the parties in accordance with the custom of the jurisdiction in which the Property is located. 
 Section 2.6 Further Assurances. The Grantors, from time to time, shall execute and deliver to the applicable Optionee all such other and further instruments and
documents and take or cause to be taken all such other and further action as either Optionee may reasonably request in order to effect the transactions contemplated by this Option Agreement, including instruments or documents deemed necessary or
desirable by Optionees to effect and evidence the conveyance of the Grantor Equity Interests in accordance with the terms of this Option Agreement. 

  
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 Section 2.7 Adjustments to Property Purchase Price. 

 (a) All revenues and expenses with respect to the Property, and applicable to the period of time before and after Closing,
determined in accordance with sound accounting principles consistently applied, including rent under any ground leases and real and personal property taxes for the Property, shall be prorated and allocated between Ashford Prime OP and Ashford Trust
OP as provided herein. Pursuant to such allocation, Ashford Trust OP shall be entitled to all revenue and shall be responsible for all expenses for the period of time up to but not including the date of Closing, and Ashford Prime OP shall be
entitled to all revenue and shall be responsible for all expenses for the period of time from, after and including the date of Closing. Such allocations and adjustments shall be shown on the closing statement (with such supporting documentation as
the parties hereto may reasonably require being attached as exhibits to the closing statements) as an adjustment to the Property Purchase Price; provided, if Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units,
such adjustments shall be settled in cash. 
 (b) Ashford Prime OP shall receive a credit against the Property Purchase Price
for (i) the aggregate outstanding principal amounts of any existing mortgage loan against the Property and mezzanine loans against any Property Entities and/or TRS Entities on the Closing Date (collectively, the “Existing
Mortgage”), (ii) the portion of the debt service payment due on the next payment date of any such mortgage loan that accrues to the period from and after the Closing Date, and (iii) the total of (A) prepaid rents,
(B) prepaid room receipts and deposits, function receipts and deposits and other reservation receipts and deposits, and (C) unforfeited security deposits held by Grantors under leases; provided, if Ashford Trust OP elects to receive the
Property Purchase Price in Ashford Prime OP Units, the credits described in clauses (ii) and (iii) above shall be settled in cash. Ashford Trust OP shall receive a cash payment for (i) any prepaid expenses accruing to periods on or after the
Closing Date, (ii) all cash balances in house banks and cash funds remaining at the Property, and the outstanding balance of any funds in reserve accounts (whether for FF&E repairs or replacements, taxes or insurance) held by lenders or
property managers that are not returned to Ashford Trust OP at Closing; and (iii) all accounts receivables for the Property at 100% of face value, including the so-called “guest ledger” as mutually approved by Ashford Trust OP and
Ashford Prime OP for the Property of guest accounts receivable payable to the Property as of the check out time on the Closing Date (based on guests and customers then using the Property) both (A) in occupancy from the preceding night through
check out time the morning of the Closing Date, and (B) previously in occupancy prior to check out time on the Closing Date. Notwithstanding Section 2.7(a) to the contrary, Ashford Prime OP shall be entitled to all revenue from the
collection of such account receivables. Ashford Trust OP and Ashford Prime OP agree that in connection with the sale of the Ashford Trust Equity Interests, Ashford Trust OP will also receive a cash payment equal to the value of all inventories of
food and beverage in opened or unopened cases and all in-use or reserve stock of linens, towels, paper goods, soaps, cleaning supplies and the like with respect to the Property. 

(c) If accurate allocations cannot be made at Closing because current bills are not obtainable (as, for example, in the case of utility
bills and/or real estate or personal property taxes), the parties shall allocate such revenue or expenses at Closing on the best available information, subject to cash adjustment upon receipt of the final bill or other evidence of the applicable
revenue or expense. Any revenue received or expense incurred by Ashford Trust OP or Ashford Prime OP with respect to the Property after the date of Closing shall be promptly allocated in the manner described herein and the parties shall promptly pay
or reimburse any amount due. 

  
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 Section 2.8 Right to Terminate. 

(a) If Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units, Ashford Prime OP, in its
sole discretion, may terminate this Option Agreement and the obligation of the Optionees to acquire the Grantor Equity Interests if the Value of the Ashford Prime OP Units to be delivered as the Property Purchase Price, calculated as of the Business
Day immediately preceding the Closing Date, has increased by more than 20% of the Value of such Ashford Prime OP Units as of the Option Exercise Date.  
 (b) If Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units, Ashford Trust OP, in its sole discretion, may terminate this Option Agreement and the obligation of the
Grantors to convey the Grantor Equity Interests if the Value of the Ashford Prime OP Units to be delivered as the Property Purchase Price, calculated as of the Business Day immediately preceding the Closing Date, has decreased by more than 20% of
the Value of such Ashford Prime OP Units as of the Option Exercise Date. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF ASHFORD TRUST OP 
 As a material inducement to Optionees to enter into this Option Agreement and to consummate the transactions contemplated hereby, Ashford Trust OP hereby makes to Optionees each of the representations and
warranties and covenants set forth in this Article III. The representations and warranties set forth in this Article III are true as of the date hereof. As a condition to Optionees’ obligation to complete the purchase of the Grantor Equity
Interests after the exercise of the Purchase Option, such representations and warranties must continue to be true and correct, in all material respects, as of the Closing Date. 

Section 3.1 Organization. Ashford Trust OP and each of the Property Entities are duly organized, validly
existing and in good standing under the laws of the respective jurisdiction of such entity’s organization. 

Section 3.2 Authorization of Transaction. Subject to the receipt of third-party consents and waivers as
required as a condition to closing pursuant to Section 2.3(i), Ashford Trust OP has full right, authority, power and capacity to: (i) enter into this Option Agreement and each agreement, document and instrument to be executed and
delivered by or on behalf of Ashford Trust OP pursuant to this Option Agreement, including, without limitation, the Closing Documents to which it is a party; (ii) carry out the transactions contemplated hereby and thereby; and
(iii) contribute or transfer, sell and deliver, as applicable, the Ashford Trust Equity Interests to Ashford Prime OP (or its designee) upon payment therefor in accordance with this Option Agreement. This Option Agreement and each agreement,
document and instrument executed and delivered by or on behalf of Ashford Trust OP pursuant to this Option Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of Ashford Trust OP, each
enforceable in accordance with its respective terms. 
 Section 3.3 Authority to Conduct
Business. Each Property Entity is duly authorized to conduct business and is in good standing under the laws of each jurisdiction where such 

  
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qualification is required. Each Property Entity has full power and authority and all licenses, permits, and authorizations necessary to carry on the businesses in which it is engaged and
to own and use the properties owned and used by it, including the Property. Ashford Trust OP has delivered to Ashford Prime OP correct and complete copies of the partnership or limited liability company agreement, as applicable of each Property
Entity, as amended to date (each, an “Operating Agreement”). No Property Entity is in default under or in violation of any provision of its Operating Agreement. 

Section 3.4 Noncontravention. Subject to the receipt of third-party consents and waivers as required as
a condition to closing pursuant to Section 2.3(i), the execution, delivery and performance of this Option Agreement and each additional agreement, document and instrument to be executed and delivered by or on behalf of Ashford Trust OP
pursuant to this Option Agreement, including, without limitation, the Closing Documents: (A) does not and will not violate the Operating Agreement of any Property Entity or Ashford Trust OP’s partnership agreement; (B) does not and
will not violate any foreign, federal, state, local or other Law applicable to any Property Entity or Ashford Trust OP, or require any Property Entity or Ashford Trust OP to obtain any approval, consent or waiver of, or make any filing with, any
Person or authority (governmental or otherwise) that has not been obtained or made or which does not remain in effect; and (C) subject to the satisfaction of the condition set forth in Section 2.3(iii), does not and will not result
in a breach of, constitute a default under, accelerate any obligation under or give rise to a right of termination of, any indenture or loan or credit agreement or any other agreement, contract, instrument, mortgage, Lien, lease, permit,
authorization, Order, writ, judgment, injunction, decree, determination or arbitration award to which any Property Entity or Ashford Trust OP is a party or by which the property of any Property Entity or Ashford Trust OP is bound or affected, or
result in the creation of any Encumbrance on any Property Entity or the Ashford Trust Equity Interests. 

Section 3.5 No Encumbrances. Subject to the receipt of third party consents and waivers as required as a
condition to closing pursuant to Section 2.3(i), as of the Closing Date, Ashford Trust OP will be the beneficial and record holder of the Ashford Trust Equity Interests, free and clear of any restrictions on transfer (other than any
restrictions under the Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state (“Blue Sky Laws”)), claim, Lien, pledge, voting agreement, option, charge, security
interest, mortgage, deed of trust, encumbrance, rights of assignment, purchase rights or other rights of any nature whatsoever of any third party (collectively, “Encumbrances”), and as of the Closing Date, Ashford Trust OP
will have the full power and authority to convey the Ashford Trust Equity Interests free and clear of any Encumbrances, and upon delivery of the Assignment Agreement by Ashford Trust OP conveying the Ashford Trust Equity Interests and receipt by
Ashford Trust OP of the Property Purchase Price as herein provided, Ashford Prime OP (or its designee) will acquire good and valid title thereto, free and clear of all Encumbrances. No Property Entity has issued any outstanding partnership, LLC
membership or other equity ownership interests and no Property Entity has any outstanding options, warrants, convertible securities, calls, rights, commitments, preemptive rights, agreements, arrangements or understanding of any character obligating
any Property Entity to (i) issue, deliver or sell, or cause to be issued, delivered or sold, additional equity ownership interests in such Property Entity or any securities or obligations convertible into or exchangeable for ownership interests
in such Property Entity; or (ii) grant, 

  
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extend or enter into any such option, warrant, convertible security, call, right, commitment, preemptive right, agreement, arrangement or understanding. 

Section 3.6 No Other Agreements to Sell. Ashford Trust OP represents that it has made no agreement with,
and will not enter into any agreement with, and has no obligation (absolute or contingent) to, any other Person or firm to sell, transfer or in any way encumber the Ashford Trust Equity Interests or to not sell the Ashford Trust Equity Interests, or
to enter into any agreement with respect to a sale, transfer or Encumbrance of or put or call right with respect to the Ashford Trust Equity Interests. 
 Section 3.7 Title to Assets. The Property Partnership has good and marketable or indefeasible fee simple title to the Property. The Property is owned by the Property
Partnership free and clear of all Encumbrances, except the Existing Mortgage and any other Encumbrances set forth in the existing title policy for the Property (and any updated title report or commitment thereto), copies of which have been made
available to Ashford Prime OP. No Property Entity owns nor has any interest in any assets or liabilities except as described herein. No Property Entity is in default in any manner, nor has any event occurred that with the passage of time would cause
any Property Entity to be in default in any manner, under any provision of the Existing Mortgage or any other agreement or instrument to which any Property Entity is a party or by which it or the Property may be bound. 

Section 3.8 Compliance With Laws. Each Property Entity has conducted its business in compliance with all
applicable Laws, except for such failures that would not, individually or in the aggregate, reasonably be expected to materially and adversely affect the condition, financial or otherwise, or the earnings or business affairs of any Property Entity
or the Property. 
 Section 3.9 Licenses and Permits. Each Property Entity possesses such
certificates, authorities or permits issued by the appropriate state or federal agencies or bodies necessary to conduct the business conducted by it to the extent that failure to have any such certificates, authorities or permits would have a
material adverse effect on such entity. None of Ashford Trust OP or any Property Entity has received any written notice of proceedings relating to the revocation or modification or any such certificate, authority or permit which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling, or finding, would materially and adversely affect the condition, financial or otherwise, or the earnings or business affairs of any Property Entity or the Property. 

Section 3.10 Taxes. Except as set forth on Schedule 3.10 attached hereto, (i) all Taxes
(including, but not limited to, real estate and personal property Taxes due and owing with respect to the Property) required to be paid by each Property Entity on or before the date hereof have been paid and all Tax Returns required to be filed on
or before the date hereof (taking into account any extensions to file previously received) by or on behalf of any Property Entity have been timely filed; and (ii) there is no action, suit or proceeding pending against or threatened with respect
to any Property Entity or the Property in respect of any Tax, nor is any claim for additional Tax asserted by any Property Entity nor are any of the Property Entity’s federal, state and local income or franchise Tax Returns the subject of any
audit or examination by any taxing authority. Except as set forth on Schedule 3.10 attached hereto, no Property Entity has executed 

  
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or filed with the Internal Revenue Service or any other taxing authority any agreement now in effect extending the period for assessment or collection of any income or other Taxes. 

Section 3.11 Litigation . Except as set forth in Schedule 3.11, there is no action, suit or
proceeding pending or, to the knowledge of Ashford Trust OP, threatened against Ashford Trust OP or any Property Entity which, if adversely determined, would reasonably be expected to have a material and adverse effect on the condition, financial or
otherwise, or the earnings or business affairs of any Property Entity or the Property. There is no action, suit, or proceeding pending or, to the knowledge of Ashford Trust OP, threatened against Ashford Trust OP which challenges or impairs the
ability of Ashford Trust OP to execute or deliver, or materially perform its obligations under this Option Agreement or to consummate the transactions hereby or thereby, except as would not, individually or in the aggregate, reasonably be expected
to have a materially and adverse effect on the condition, financial or otherwise, or the earnings or business affairs of any Property Entity. 
 Section 3.12 No Insolvency Proceedings. No bankruptcy or similar insolvency proceeding has been filed, or is currently contemplated, with respect to Ashford Trust OP or
any of the Property Entities. 
 Section 3.13 Investment Representations. Ashford Trust OP
hereby represents: 
 (a) If Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units, Ashford
Trust OP will be acquiring the Ashford Prime OP Units for its own account and not with the view to the sale or distribution of the same or any part thereof in violation of the Securities Act of 1933, as amended (the
“Act”). 
 (b) Ashford Trust OP understands that the Ashford Prime OP Units to be issued
to Ashford Trust OP, if any, will not be registered under the Act, or the securities laws of any state (“Blue Sky Laws”) by reason of a specific exemption or exemptions from registration under the Act and
applicable Blue Sky Laws and that Ashford Prime OP’s reliance on such exemptions is predicated in part on the accuracy and completeness of the representations and warranties of Ashford Trust OP. 

(c) Ashford Trust OP understands that, for the reasons set forth in paragraph (b) above the Ashford Prime OP Units may not be
offered, sold, transferred, pledged (other than pursuant to the Ashford Trust Credit Agreement) or otherwise disposed of by Ashford Trust OP except (i) pursuant to an effective registration statement under the Act and any applicable Blue Sky
Laws, (ii) pursuant to a no-action letter issued by the Securities and Exchange Commission to the effect that a proposed transfer of the Ashford Prime OP Units may be made without registration under the Act, together with either registration or
an exemption under applicable Blue Sky Laws, or (iii) upon Ashford Prime OP or Ashford Prime, as the case may be, receiving an opinion of counsel knowledgeable in securities law matters and reasonably acceptable to Ashford Prime OP to the
effect that the proposed transfer is exempt from the registration requirements of the Act and any applicable Blue Sky Laws, and that, accordingly, Ashford Trust OP must bear the economic risk of an investment in Ashford Prime Common Units for an
indefinite period of time. 

  
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 (d) Ashford Trust OP is an “accredited investor” within the meaning of Rule 501(a)
promulgated under the Act. 
 (e) Ashford Trust OP understands that an investment in Ashford Prime involves substantial risks.
Ashford Trust OP has had the opportunity to review all documents and information which it has requested concerning its investment in Ashford Prime OP and Ashford Prime and to ask questions of the proposed management of Ashford Prime OP and Ashford
Prime, which questions were answered to its satisfaction. 
 (f) Ashford Trust OP understands that the Ashford Prime OP Units
(and any shares of common stock of Ashford Prime issued upon exchange of the Ashford Prime OP Units) will bear a legend substantially to the effect of the following: 
 The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”), or the securities laws of any state. The securities may not be
offered, sold, transferred, pledged or otherwise disposed of without an effective registration statement under the Act and under any applicable state securities laws, receipt of a no-action letter issued by the Securities and Exchange Commission
(together with either registration or an exemption under applicable state securities laws) or an opinion of counsel acceptable to Ashford Hospitality Prime Limited Partnership and Ashford Hospitality Prime, Inc. that the proposed transaction will be
exempt from registration under the Act and applicable state securities laws. 
 and that Ashford Prime OP or Ashford Hospitality Prime, Inc, as
the case may be, reserve the right to place a stop order against the transfer of the Ashford Prime OP Units (and any shares of common stock of Ashford Prime issued upon exchange of the Ashford Prime OP Units), and to refuse to effect any transfers
thereof, in the absence of satisfying the conditions contained in the foregoing legend. 
 Section 3.14
No Other Representations and Warranties. Other than the representations and warranties expressly set forth in this Article III, Ashford Trust OP shall not be deemed to have made any other representation or warranty in
connection with this Option Agreement or the transactions contemplated hereby. 
 ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF ASHFORD TRUST TRS 
 As a material inducement to Optionees to enter into this Option Agreement and to consummate the transactions contemplated hereby, Ashford Trust TRS hereby makes to Optionees each of the representations
and warranties and covenants set forth in this Article IV. The representations and warranties set forth in this Article IV are true as of the date hereof. As a condition to Optionees’ obligation to complete the purchase of the Grantor Equity
Interests after the exercise of the Purchase Option, such representations and warranties must continue to be true, in all material respects, as of the date of the Closing. 

  
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 Section 4.1 Organization. Ashford Trust TRS and each of the
TRS Entities are duly organized, validly existing and in good standing under the laws of the respective jurisdiction of such entity’s organization. 
 Section 4.2 Authorization of Transaction. Subject to the receipt of third-party consents as required as a condition to closing pursuant to Section 2.3(i),
Ashford Trust TRS has full right, authority, power and capacity to: (i) enter into this Option Agreement and each agreement, document and instrument to be executed and delivered by or on behalf of Ashford Trust TRS pursuant to this Option
Agreement, including, without limitation, the Closing Documents to which it is a party; (ii) carry out the transactions contemplated hereby and thereby; and (iii) transfer, sell and deliver the Ashford Trust TRS Equity Interests to Ashford
Prime TRS (or its designee) upon payment therefor in accordance with this Option Agreement. This Option Agreement and each agreement, document and instrument executed and delivered by or on behalf of Ashford Trust TRS pursuant to this Option
Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of Ashford Trust TRS, each enforceable in accordance with its respective terms. 

Section 4.3 Authority to Conduct Business. Each TRS Entity is duly authorized to conduct business and is
in good standing under the laws of each jurisdiction where such qualification is required. Each TRS Entity has full power and authority and all material licenses, permits, and authorizations necessary to carry on the businesses in which it is
engaged and to own and use the properties owned and used by it. Ashford Trust TRS has delivered to Ashford Prime TRS correct and complete copies of the governing documents of each TRS Entity, as amended to date. No TRS Entity is in default under or
in violation of any provision of its governing documents. 
 Section 4.4 Noncontravention.
Subject to the receipt of third-party consents as required as a condition to closing pursuant to Section 2.3(i), the execution, delivery and performance of this Option Agreement and each additional agreement, document and instrument to
be executed and delivered by or on behalf of Ashford Trust TRS pursuant to this Option Agreement, including, without limitation, the Closing Documents: (A) does not and will not violate the governing documents of any TRS Entity or Ashford Trust
TRS’s governing documents; (B) does not and will not violate any foreign, federal, state, local or other Law applicable to any TRS Entity or Ashford Trust TRS, or require any TRS Entity or Ashford Trust TRS to obtain any approval, consent
or waiver of, or make any filing with, any Person or authority (governmental or otherwise) that has not been obtained or made or which does not remain in effect; and (C) subject to the satisfaction of the condition set forth in
Section 2.3(iii), does not and will not result in a breach of, constitute a default under, accelerate any obligation under or give rise to a right of termination of, any indenture or loan or credit agreement or any other agreement,
contract, instrument, mortgage, Lien, lease, permit, authorization, Order, writ, judgment, injunction, decree, determination or arbitration award to which any TRS Entity or Ashford Trust TRS is a party or by which the property of any TRS Entity or
Ashford Trust TRS is bound or affected, or result in the creation of any Encumbrance on any TRS Entity or the Ashford Trust Equity Interests. 
 Section 4.5 No Encumbrances. Subject to the receipt of third-party consents and waivers as required as a condition to closing pursuant to Section 2.3(i), , as
of the Closing Date, 

  
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Ashford Trust TRS will be the beneficial and record holder of the Ashford Trust TRS Equity Interests, free and clear of any restrictions on transfer (other than any restrictions under the
Securities Act or any Blue Sky Laws) or Encumbrances; and as of the Closing Date, Ashford Trust TRS will have the full power and authority to convey the Ashford Trust TRS Equity Interests free and clear of any Encumbrances, and upon delivery of the
Assignment Agreement by Ashford Trust TRS conveying the Ashford Trust TRS Equity Interests and receipt by Ashford Trust TRS of the TRS Purchase Price as herein provided, Ashford Prime TRS (or its designee) will acquire good and valid title thereto,
free and clear of all Encumbrances. No TRS Entity has issued any LLC membership or other equity ownership interests, and no TRS Entity has any outstanding options, warrants, convertible securities, calls, rights, commitments, preemptive rights,
agreements, arrangements or understanding of any character obligating any TRS Entity to (i) issue, deliver or sell, or cause to be issued, delivered or sold, additional equity ownership interests in such TRS Entity or any securities or
obligations convertible into or exchangeable for ownership interests in such TRS Entity; or (ii) grant, extend or enter into any such option, warrant, convertible security, call, right, commitment, preemptive right, agreement, arrangement or
understanding. 
 Section 4.6 No Other Agreements to Sell. Ashford Trust TRS represents that it
has made no agreement with, and will not enter into any agreement with, and has no obligation (absolute or contingent) to, any other Person or firm to sell, transfer or in any way encumber the Ashford Trust TRS Equity Interests or to not sell the
Ashford Trust TRS Equity Interests, or to enter into any agreement with respect to a sale, transfer or Encumbrance of or put or call right with respect to the Ashford Trust TRS Equity Interests. 

Section 4.7 Compliance With Laws. Each TRS Entity has conducted its business in compliance with all
applicable Laws, except for such failures that would not, individually or in the aggregate, reasonably be expected to materially and adversely affect the condition, financial or otherwise, or the earnings or business affairs of any TRS Entity or the
Property. 
 Section 4.8 Licenses and Permits. Each TRS Entity possesses such certificates,
authorities or permits issued by the appropriate state or federal agencies or bodies necessary to conduct the business conducted by it to the extent that failure to have any such certificates, authorities or permits would have a material adverse
effect on such entity. Neither Ashford Trust TRS nor any TRS Entity has received any written notice of proceedings relating to the revocation or modification or any such certificate, authority or permit which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling, or finding, would materially and adversely affect the condition, financial or otherwise, or the earnings or business affairs of any TRS Entity or the Property. 

Section 4.9 Taxes. Except as set forth on Schedule 4.9 attached hereto, (i) all Taxes
required to be paid by each TRS Entity on or before the date hereof have been paid and all Tax Returns required to be filed on or before the date hereof (taking into account any extensions to file previously received) by or on behalf of any TRS
Entity have been timely filed; and (ii) there is no action, suit or proceeding pending against or threatened with respect to any TRS Entity in respect of any Tax, nor is any claim for additional Tax asserted by any TRS Entity nor are any of the
TRS Entities’ federal, state and local income or franchise Tax Returns the subject of any audit or examination by any taxing authority. Except as set forth on Schedule 4.9 attached

  
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hereto, no TRS Entity has executed or filed with the Internal Revenue Service or any other taxing authority any agreement now in effect extending the period for assessment or collection of any
income or other Taxes. 
 Section 4.10 Litigation. Except as set forth in Schedule 4.10,
there is no action, suit or proceeding pending or, to the knowledge of Ashford Trust TRS, threatened against Ashford Trust TRS or any TRS Entity which, if adversely determined, would reasonably be expected to have a material and adverse effect on
the condition, financial or otherwise, or the earnings or business affairs of any TRS Entity. There is no action, suit, or proceeding pending or, to the knowledge of Ashford Trust TRS, threatened against Ashford Trust TRS which challenges or impairs
the ability of Ashford Trust TRS to execute or deliver, or materially perform its obligations under this Option Agreement or to consummate the transactions hereby or thereby, except as would not, individually or in the aggregate, reasonably be
expected to have a materially and adverse effect on the condition, financial or otherwise, or the earnings or business affairs of any TRS Entity. 
 Section 4.11 No Insolvency Proceedings. No bankruptcy or similar insolvency proceeding has been filed, or is currently contemplated, with respect to Ashford Trust TRS or
any TRS Entity. 
 Section 4.12 No Other Representations and Warranties. Other than the
representations and warranties expressly set forth in this Article IV, Ashford Trust TRS shall not be deemed to have made any other representation or warranty in connection with this Option Agreement or the transactions contemplated hereby.

 ARTICLE V 
 REPRESENTATIONS, WARRANTIES OF ASHFORD PRIME OP 
 As a material inducement
to the Grantors to enter into this Option Agreement and to consummate the transactions contemplated hereby, Ashford Prime OP hereby makes to the Grantors each of the representations and warranties set forth in this Article V. The representations and
warranties set forth in this Article V are true as of the date hereof. As a condition to Grantors’ obligation to complete the contribution or sale of the Grantor Equity Interests after the exercise of the Purchase Option, such representations
and warranties must continue to be true and correct, in all material respects, as of the date of the Closing. 

Section 5.1 Organization. Ashford Prime OP is duly organized, validly existing and in good standing as a
limited partnership under the laws of the State of Delaware. 
 Section 5.2 Authority. Ashford Prime OP
hereby represents and warranties that it has full right, authority, power and capacity to: (i) enter into this Option Agreement and each agreement, document and instrument to be executed and delivered by or on behalf of it pursuant to this
Option Agreement, including without limitation, the Closing Documents to which it is a party; and (ii) carry out the transactions contemplated hereby and thereby. This Option Agreement and each agreement, document and instrument executed and
delivered by Ashford Prime OP pursuant to this Option Agreement constitutes, or when executed and delivered will 

  
 -15-

 
constitute, the legal, valid and binding obligation of Ashford Prime OP, each enforceable in accordance with its respective terms. 

Section 5.3 Noncontravention. The execution, delivery and performance of this Option Agreement
and each additional agreement, document and instrument to be executed and delivered by or on behalf of Ashford Prime OP pursuant to this Option Agreement: (A) does not and will not violate the partnership agreement of Ashford Prime OP;
(B) does not and will not violate any foreign, federal, state, local or other Law applicable to Ashford Prime OP, or require Ashford Prime OP to obtain any approval, consent or waiver of, or make any filing with, any Person or authority
(governmental or otherwise) that has not been obtained or made or which does not remain in effect; and (C) does not and will not result in a breach of, constitute a default under, accelerate any obligation under or give rise to a right of
termination of, any indenture or loan or credit agreement or any other agreement, contract, instrument, mortgage, Lien, lease, permit, authorization, Order, writ, judgment, injunction, decree, determination or arbitration award to which Ashford
Prime OP is a party or by which the property of Ashford Prime OP is bound or affected. 
 Section 5.4
Litigation. There is no action, suit or proceeding pending or to Ashford Prime OP’s knowledge, threatened against Ashford Prime OP, that challenges or would reasonably be expected to impair the ability of
Ashford Prime OP to execute or deliver or materially perform its obligations under this Option Agreement and the documents executed by it pursuant to this Option Agreement or to consummate the transactions contemplated hereby or thereby.

 Section 5.5 Validity of Ashford Prime OP Units. The Ashford Prime OP Units to
be issued to AHT OP upon the exercise of the Purchase Option, if any, will be duly authorized by Ashford Prime OP and, when issued against the consideration therefor, will be validly issued by Ashford Prime OP, free and clear of all Liens created by
Ashford Prime OP. 
 Section 5.6 No Other Representations and Warranties. Other
than the representations and warranties expressly set forth in this Article V, Ashford Prime OP shall not be deemed to have made any other representation or warranty in connection with this Option Agreement or the transactions contemplated
hereby. 
 ARTICLE VI 
 REPRESENTATIONS, WARRANTIES OF ASHFORD PRIME TRS 
 As a material inducement
to the Grantors to enter into this Option Agreement and to consummate the transactions contemplated hereby, Ashford Prime TRS hereby makes to the Grantors each of the representations and warranties set forth in this Article VI. The representations
and warranties set forth in this Article VI are true as of the date hereof. As a condition to Grantors’ obligation to complete the sale of the Grantor Equity Interests after the exercise of the Purchase Option, such representations and
warranties must continue to be true and correct, in all material respects, as of the date of the Closing. 

  
 -16-

 Section 6.1 Organization. Ashford Prime TRS is duly
organized, validly existing and in good standing as a corporation under the laws of the State of Delaware. 

Section 6.2 Authority. Ashford Prime TRS hereby represents and warranties that it has full
right, authority, power and capacity to: (i) enter into this Option Agreement and each agreement, document and instrument to be executed and delivered by or on behalf of it pursuant to this Option Agreement, including without limitation, the
Closing Documents to which it is a party; and (ii) carry out the transactions contemplated hereby and thereby. This Option Agreement and each agreement, document and instrument executed and delivered by Ashford Prime TRS pursuant to this Option
Agreement constitutes, or when executed and delivered will constitute, the legal, valid and binding obligation of Ashford Prime TRS, each enforceable in accordance with its respective terms. 

Section 6.3 Noncontravention. The execution, delivery and performance of this Option Agreement
and each additional agreement, document and instrument to be executed and delivered by or on behalf of Ashford Prime TRS pursuant to this Option Agreement: (A) does not and will not violate the governing documents of Ashford Prime TRS;
(B) does not and will not violate any foreign, federal, state, local or other Law applicable to Ashford Prime TRS, or require Ashford Prime TRS to obtain any approval, consent or waiver of, or make any filing with, any Person or authority
(governmental or otherwise) that has not been obtained or made or which does not remain in effect; and (C) does not and will not result in a breach of, constitute a default under, accelerate any obligation under or give rise to a right of
termination of, any indenture or loan or credit agreement or any other agreement, contract, instrument, mortgage, Lien, lease, permit, authorization, Order, writ, judgment, injunction, decree, determination or arbitration award to which Ashford
Prime TRS is a party or by which the property of Ashford Prime TRS is bound or affected. 
 Section 6.4
Litigation. There is no action, suit or proceeding pending or to Ashford Prime TRS’ knowledge, threatened against Ashford Prime TRS, that challenges or would reasonably be expected to impair the ability of
Ashford Prime TRS to execute or deliver or materially perform its obligations under this Option Agreement and the documents executed by it pursuant to this Option Agreement or to consummate the transactions contemplated hereby or thereby.

 Section 6.5 No Other Representations and Warranties. Other than the
representations and warranties expressly set forth in this Article VI, Ashford Prime TRS shall not be deemed to have made any other representation or warranty in connection with this Option Agreement or the transactions contemplated hereby.

 ARTICLE VII 
 COVENANTS 
 Section 7.1 Covenant Not to
Substantially Alter the Grantor Equity Interests. From the date hereof through the earlier of the Closing Date or the Option Termination Date, except as otherwise provided for or as contemplated by this Option Agreement or the other 

  
 -17-

 
agreements, documents and instruments contemplated hereby, Grantors shall not, without the prior written consent of Ashford Prime OP: 

(a) sell, transfer or otherwise dispose of all or any portion of the Grantor Equity Interests; 

(b) further mortgage, pledge, hypothecate, encumber (or permit to become encumbered) all or any portion of the Grantor
Equity Interests; 
 (c) amend the governing documents of any Property Entity or any TRS Entity; or 

(d) adopt a plan of liquidation, dissolution, merger, consolidation, restructuring, recapitalization or reorganization
with respect to Ashford Trust OP, Ashford Trust TRS, any Property Entity or any TRS Entity. 
 Section 7.2
Covenant to Use Reasonable Commercial Efforts. Ashford Trust OP and Ashford Prime OP shall each use commercially reasonable efforts and cooperate with each other in (a) promptly determining wither any filings are required
to be made or consents, approvals, waivers, permits or authorizations are required to be obtained (under any applicable Law or regulation from any Governmental Authority or third party) in connection with the transactions contemplated by this Option
Agreement and (b) following the exercise of the Purchase Option, promptly making any such filings, in furnishing information required in connection therewith and in timely seeking to obtain any such consents, approvals, waivers, permits or
authorizations. 
 Section 7.3 Covenant by Ashford Prime OP to Replace Ashford Trust OP
as Guarantor Where Applicable. 
 (a) To the extent that, prior to the date of this Option
Agreement, Ashford Trust has guaranteed any obligations under the Existing Mortgage, or any portion thereof, or any management agreement or franchise matters or other agreement related to the Property (“Existing Guarantees”),
Ashford Prime agrees to enter into substantially similar guarantees in favor of the lenders, managers, franchisors or other beneficiaries of such Existing Guarantees. 

(b) To the extent that, prior to the date of this Option Agreement, Ashford Trust OP has entered into any Existing
Guarantees, Ashford Prime OP agrees to enter into substantially similar guarantees in favor of the lenders, managers, franchisors or other beneficiaries of such Existing Guarantees. 

Section 7.4 Covenant by Ashford Prime OP to Admit Ashford Trust OP as a Limited Partner. If the
Purchase Option is Exercised and Ashford Trust OP elects to receive the Property Purchase Price in Ashford Prime OP Units, Ashford Prime OP shall amend the partnership agreement of Ashford Prime OP to reflect Ashford Trust OP as a limited partner,
owning the Ashford Prime OP Units payable as the Property Purchase Price. 
 Section 7.5
Casualty. If, following exercise of the Purchase Option and prior to Closing, the Property is damaged by fire or other casualty which is fully insured (without regard to deductibles) and would cost not more than Ten Million Dollars
($10,000,000) to repair, 

  
 -18-

 
then neither party shall have the right to terminate this Option Agreement by reason thereof, and the Closing shall take place without abatement of the Property Purchase Price and TRS Purchase
Price, but Grantors shall assign to Optionees at the Closing all of Grantor’s interest in any insurance proceeds (except use and occupancy insurance, rent loss and business interruption insurance, and any similar insurance for the period
preceding the Closing Date) that may be payable to Grantors on account of any such fire or other casualty, to the extent such proceeds have not been previously expended or are otherwise required to reimburse Grantors for actual expenditures of
restoration, plus Ashford Prime OP shall credit the amount of any deductibles under any policies related to such proceeds to the Property Purchase Price. If any such damage due to fire or other casualty is insured and would cost in excess of Ten
Million Dollars ($10,000,000), then Optionees may terminate their obligations under this Option Agreement by written notice given to Grantors within ten (10) days after Ashford Trust OP has given Ashford Prime OP notice of such damage or
casualty. Should Optionees elect to proceed to Closing notwithstanding the amount of the insured loss, the Closing shall take place without abatement of the Property Purchase Price and TRS Purchase Price and at Closing, Grantors shall assign to
Optionees the insurance proceeds and grant to Ashford Prime OP a credit against the Property Purchase Price equal to the amount of the applicable deductible. 
 Section 7.6 Condemnation. Following exercise of the Purchase Option and prior to Closing, Ashford Trust OP agrees to give Ashford Prime OP prompt notice of any notice it
receives of any taking by condemnation of any part of or rights appurtenant to the Property. If such taking will materially interfere with the operation or use of the Property, the Optionees may terminate their obligations under this Option
Agreement by written notice to Ashford Trust OP within ten (10) days after Ashford Trust OP has given Ashford Prime OP such notice of taking. If Optionees do not so elect to terminate this Option Agreement, or if such taking will not materially
interfere with the operation or use of the Property, then the Closing shall take place as provided herein, and Grantors shall assign to Optionees at the Closing all of Grantor’s interest in any condemnation award which may be payable to
Grantors on account of any such condemnation and, at Closing, Ashford Trust OP shall credit the Property Purchase Price by the amount, if any, of condemnation proceeds received by Grantors less (i) any amounts reasonably expended by Grantors in
collecting such sums, (ii) any amounts reasonably used by Grantors to repair the Property as a result of such condemnation, and (iii) any amounts which are reasonably allocated to lost earnings or other damages or losses (other than
unrepaired property damages) reasonably allocated or attributed to the period of time prior to Closing. 
 ARTICLE VIII

 INDEMNIFICATION 
 Section 8.1 Indemnity. 
 (a) From
and after the Closing, each party hereto (each of which is an “Indemnifying Party”) shall indemnify and hold harmless the other party and its Affiliates (each of which is an “Indemnified Party”) from
and against any and all charges, complaints, claims, actions, causes of action, losses, damages, liabilities and expenses of any nature whatsoever (each, a “Claim”), including amounts paid in settlement, reasonable
attorneys’ fees, costs of investigation, costs of investigative judicial or administrative proceedings or appeals therefrom and costs of attachment 

  
 -19-

 
or similar bonds (collectively, “Losses”) arising out of or relating to, asserted against, imposed upon or incurred by the Indemnified Party in
connection with or as a result of any breach of a representation, warranty or covenant of the Indemnifying Party contained in this Option Agreement or in any schedule, exhibit, certificate or affidavit or Closing Document (to the extent not known by
Indemnified Party prior to Closing Date); provided, however, that: (i) no Optionee shall have any obligation under this Article to indemnify any Indemnified Party against any Losses to the extent that such Losses arise by virtue of
(A) either Grantors’ breach of this Option Agreement, gross negligence, willful misconduct or fraud or (B) the operation of the business of Ashford Trust OP, the Property Entities, Ashford Trust TRS or the TRS Entities, or the
ownership and operation of the Property for the period prior to the Closing Date; and (ii) no Grantor shall have any obligation under this Article to indemnify any Indemnified Party against any Losses to the extent that such Losses arise by
virtue of (A) any diminution in value of the Property, (B) either Optionee’s breach of this Option Agreement, gross negligence, willful misconduct or fraud or (C) the operation of the business of Ashford Prime OP, the Property
Entities, Ashford Prime TRS or the TRS Entities, or the ownership and operation of the Property for the period from and after the Closing Date; and  
 (b) Ashford Trust OP and Ashford Trust TRS shall indemnify Optionees and hold them harmless from and against all Losses arising from: (A) all Taxes of the Grantors for all Tax periods ending on or
before the Closing Date, (B) with respect to any Tax period including but not ending on the Closing Date, all Taxes of the Grantors attributable to the portion of such Tax period that ends on and includes the Closing Date, and (C) all
Taxes of any Person imposed on the Optionees as a transferee or successor, by contract or pursuant to any Law (including, but not limited to, Treasury Regulations Section 1.1502-6 and V.T.C.A., Tax Code, Chapter 171) with respect to obligations
or relationships existing on or prior to the Closing Date or by agreements entered into or transactions entered into on or prior to the Closing Date; provided, however, that for the avoidance of doubt: 

(i) Neither Ashford Trust OP nor Ashford Trust TRS shall have liability for any Taxes or Losses with respect to Taxes that
are attributable to any transaction that occurs on or after the Closing. 
 (ii) Neither Ashford Trust OP nor
Ashford Trust TRS shall have liability to either Optionee for any Losses attributable to Taxes with respect to (A) any Tax period beginning after the Closing Date, or (B) any portion of a straddle period (a Tax period which includes but
does not end on the Closing Date) that accrue to the period following the Closing Date. 
 (iii) Neither Ashford
Trust OP nor Ashford Trust TRS shall have liability for any transfer Taxes related to the transactions contemplated by this Option Agreement or the exercise of the Purchase Option, which shall be paid by Ashford Prime. 

(c) From and after the Closing Date, Ashford Prime OP and Ashford Prime agree to jointly and severally indemnify and hold harmless
Ashford Trust, Ashford Trust OP and their respective Affiliates from and against any and all Losses and Claims arising from and after the Closing Date under the Existing Guarantees, which Existing Guarantees, if any, shall be specifically identified
to and acknowledged by Ashford Prime OP and Ashford Prime at the time 

  
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of the Closing (the “Guarantee Schedule”). The obligations of Ashford Prime OP and Ashford Prime under this Section 8.1(c) shall continue
as to each Existing Guarantee until such Existing Guarantee is terminated in accordance with its terms or Ashford Trust, Ashford Trust OP and their Affiliates, as applicable, are otherwise released in writing from such Existing Guarantees. 

 (d) For the avoidance of doubt, Ashford Trust OP and Ashford Trust TRS shall be jointly and severally liable to
Optionees for any Losses for which Optionees are entitled to indemnification under this Article VIII, and Optionees shall be jointly and severally liable to Ashford Trust OP and Ashford Trust TRS for any Losses for which Ashford Trust OP and Ashford
Trust TRS are entitled to indemnification under this Article VIII. 
 Section 8.2 Notice of
Claims. At the time when any Indemnified Party learns of any potential Claim against the Indemnifying Party it will promptly give written notice (a “Claim Notice”) to the Indemnifying Party;
provided that failure to do so shall not prevent recovery under this Option Agreement, except to the extent that the Indemnifying Party shall have been materially prejudiced by such failure. Each Claim Notice shall describe in reasonable
detail the facts known to such Indemnified Party giving rise to such Claim, and the amount or good faith estimate of the amount of Losses arising therefrom. Unless prohibited by Law, such Indemnified Party shall deliver to the Indemnifying Party,
promptly after such Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by such Indemnified Party relating to claims asserted by third parties (“Third Party
Claims”). Any Indemnified Party may at its option demand indemnity under this Article VII as soon as a Claim has been threatened by a third party, regardless of whether an actual Loss has been suffered, so long as such Indemnified Party
shall in good faith determine that such claim is not frivolous and that such Indemnified Party may be liable for, or otherwise incur, a Loss as a result thereof.  

Section 8.3 Third Party Claims. The Indemnifying Party shall be entitled, at its own expense, to
assume and control the defense of any Claims based on Third Party Claims, through counsel chosen by the Indemnifying Party and reasonably acceptable to such Indemnified Party (or any Person authorized by such Indemnified Party to act on its behalf),
if it gives written notice of its intention to do so to such Indemnified Party within 30 days of the receipt of the applicable Claim Notice; provided, however, that such Indemnified Party may at all times participate in such defense at its expense.
Without limiting the foregoing, in the event that the Indemnifying Party exercises the right to undertake any such defense against a Third Party Claim, such Indemnified Party shall cooperate with the Indemnifying Party in such defense and make
available to the Indemnifying Party (unless prohibited by Law), at the Indemnifying Party’s expense, all witnesses, pertinent records, materials and information in such Indemnified Party’s possession or under such Indemnified Party’s
control relating thereto as is reasonably required by the Indemnifying Party. No compromise or settlement of such Third Party Claim may be effected by either such Indemnified Party, on the one hand, or the Indemnifying Party, on the other hand,
without the other’s consent (which consent shall not be unreasonably withheld, conditioned or delayed) unless (i) there is no finding or admission of any violation of Law and no effect on any other claims that may be made against such
other party and (ii) each Indemnified Party that is party to such other claim is released from all liability with respect to such other claim.  

  
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 Section 8.4 Procedure for Indemnification. Upon
determination of the amount of a Claim that is binding on both the Indemnifying Party and the Indemnified Party, the Indemnifying Party shall, within ten (10) days of the date such amount is determined, pay the amount of such Claim by wire
transfer of immediately available funds to an account designated by the Indemnified Party. 

Section 8.5 Expiration.  
 (a) Subject to the limitations set forth in Section 8.5(b) below, all representations, warranties, covenants and agreements (including those relating to indemnification in
Section 8.1) made herein shall survive the Closing Date. 
 (b) All representations, warranties and
covenants of the Indemnifying Party contained in this Option Agreement shall survive until twelve months after the Closing Date (the “Expiration Date”); provided, however, (i) the representations and warranties set forth
in Section 3.11 or Section 4.9 with respect to Taxes, shall survive Closing until the expiration of the applicable statute of limitations for making a claim for such matters and (ii) the covenants set forth in
Section 8.1(c) shall survive Closing without limitation. If written notice of a claim in accordance with the provisions of this Article VIII has been given prior to the Expiration Date, then the relevant representation, warranty and
covenant shall survive, but only with respect to such specific claim, until such claim has been finally resolved. Any claim for indemnification not so asserted in writing by the Expiration Date, as applicable, may not thereafter be asserted and
shall forever be waived.  
 Section 8.6 Limitations on Amount.  

(a) Except as provided in subparagraph (b) below, neither Ashford Trust OP nor Ashford Trust TRS shall have any liability under
Section 8.1 for any Losses hereunder (i) unless and until the aggregate total amount of all such Losses for which Ashford Trust OP or Ashford Trust TRS would, but for this provision, be liable exceeds, on a cumulative basis, one
percent (1%) of the aggregate of the Property Purchase Price and the TRS Purchase Price on the Closing Date, and then only to the extent of such excess, (ii) in excess of, on a cumulative basis, five percent (5%) of the aggregate of
the Property Purchase Price and the TRS Purchase Price. 
 (b) The limitations set forth in Section 8.6(a) above
shall not apply to any Losses resulting from Claims made under Section 8.1(c). 
 ARTICLE IX 

MISCELLANEOUS 
 Section 9.1 Additional Definitions. For the purposes of this Option Agreement, the following terms shall have the following meanings: 

(a) “Affiliate” means, with respect to any Person, a Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the specified Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common 

  
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control with”) as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or otherwise; provided, however, for purposes of this Option Agreement, Ashford Prime and the Optionees shall not be deemed to be Affiliates of Ashford Trust and the Grantors.

 (b) “Business Day” means any day that is not a Saturday, Sunday or legal
holiday in the State of Texas. 
 (c) “Code” means the Internal Revenue
Code of 1986, as amended, together with the rules and regulations promulgated or issued thereunder.  
 (d) “Governmental Authority” means any government or agency, bureau, board, commission, court, department, official, political subdivision, tribunal or other
instrumentality of any government, whether federal, state or local, domestic or foreign.  

(e) “Law” means laws, statutes, rules, regulations, codes, Orders, ordinances,
judgments, injunctions, decrees and policies of any Governmental Authority.  
 (f)
“Liens” means all pledges, claims, liens, charges, restrictions, controls, easements, rights of way, exceptions, reservations, leases, licenses, grants, covenants and conditions, Encumbrances and security interests of any
kind or nature whatsoever.  
 (g) “Order” means any order,
writ, judgment, injunction, decree, ruling, assessment, stipulation, determination or award entered by or with any court or other Governmental Authority or arbitrator.  

(h) “Person” means an individual, corporation, partnership, limited liability
company, joint venture, association, trust, unincorporated organization or other entity.  

(i) “Tax” means all federal, state, local and foreign income, property, withholding,
sales, franchise, employment, excise and other Taxes, tariffs or governmental charges of any nature whatsoever, including estimated Taxes, together with penalties, interest or additions to Tax with respect thereto.  

(j) “Tax Return” means any return, declaration, report, claim for refund, or
information return or statement related to Taxes, including any schedule or attachment thereto, and including any amendment thereof.  
 Section 9.2 Amendment. Any amendment hereto shall be in writing and signed by all parties hereto. No waiver of any of the provisions of this Option Agreement
shall be valid unless in writing and signed by the party against whom enforcement is sought.  

Section 9.3 Entire Agreement; Counterparts; Applicable Law. This Option Agreement and all
ancillary agreements executed in connection with this Option Agreement (a) constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter
hereof, (b) may be executed in several counterparts, each of which will be deemed an original and all of which shall 

  
 -23-

 
constitute one and the same instrument and (c) shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of Texas without giving effect to
the conflict of law provisions thereof. 
 Section 9.4 Assignability. This Option
Agreement shall be binding upon, and shall be enforceable by and inure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors and assigns; provided, however, that this Option Agreement may not be assigned
(except by operation of law) by any party without the prior written consent of the other parties, and any attempted assignment without such consent shall be void and of no effect; provided, however, that Optionees may assign this Option Agreement,
the Closing Documents and any agreement contemplated hereunder or thereunder to Ashford Prime or to an Affiliate of either Optionee or Ashford Prime without the consent of either Grantor. In the event that Optionees assign this Option Agreement as
provided herein, Optionees shall remain fully liable under this Option Agreement to issue the Ashford Prime OP Units and shall not be released from any of the obligations and liabilities included herein following such assignment. 

Section 9.5 Titles. The titles and captions of the Articles, Sections and paragraphs of
this Option Agreement are included for convenience of reference only and shall have no effect on the construction or meaning of this Option Agreement. 
 Section 9.6 Third Party Beneficiary. No provision of this Option Agreement is intended, nor shall it be interpreted, to provide or create any third party
beneficiary rights or any other rights of any kind in any customer, Affiliate, stockholder, partner, director, officer or employee of any party hereto or any other Person or entity; provided, however, that Article VIII of this Option Agreement shall
be enforceable by and shall inure to the benefit of the Persons described therein. 
 Section 9.7
Severability. If any provision of this Option Agreement, or the application thereof, is for any reason held to any extent to be invalid or unenforceable, the remainder of this Option Agreement and application of such provision
to other Persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Option Agreement with a valid and enforceable
provision that will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision and to execute any amendment, consent or agreement deemed necessary or desirable by an Optionee to effect such
replacement. 
 Section 9.8 Equitable Rights. The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this Option Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Option Agreement and to enforce specifically the terms and provisions hereof in any federal or state court located in the State of Texas (as to which the parties agree to submit to jurisdiction
for the purposes of such action), this being in addition to any other remedy to which they are entitled at law or in equity. 

  
 -24-

 Section 9.9 Attorneys’ Fees. In connection with
any litigation or a court proceeding arising out of this Option Agreement, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorneys’ fees and legal assistants’ fees and costs whether incurred
prior to trial, at trial or on appeal. 
 Section 9.10 Notices; Exercise of Purchase
Option. Any notice or demand which must or may be given under this Option Agreement (including the exercise by Optionees of the Purchase Option) or by law shall, except as otherwise provided, be in writing and shall be deemed to have been
given (i) when physically received by personal delivery (which shall include the confirmed receipt of a telecopied facsimile transmission), or (ii) three (3) Business Days after being deposited in the United States certified or
registered mail, return receipt requested, postage prepaid, or (iii) one (1) Business Day after being deposited with a nationally known commercial courier service providing next day delivery service (such as Federal Express); addressed and
delivered or telecopied (a) in the case of a notice to the Optionees at the following address and telecopy number: 

c/o Ashford Hospitality Advisors LLC 
 14185 Dallas Parkway, Suite 1100 
 Dallas, Texas 75254 

Phone: (972) 490-9600 
 and
(b) in the case of a notice to a Grantors, to: 
 14185 Dallas Parkway, Suite 1100 

Dallas, Texas 75254 
 Phone: (972) 490-9600 
 Section 9.11
Computation of Time. Any time period provided for herein which shall end on a Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next full Business Day. All times are Central Standard Time. 

Section 9.12 Time of the Essence. Time is of the essence with respect to all obligations of the
Grantors under this Option Agreement. 
 [Signature Pages Follow] 

  
 -25-

 IN WITNESS WHEREOF, each of the parties hereto has executed this Option Agreement, or caused
the Option Agreement to be duly executed on its behalf, as of the date first above written. 
  

					
	OPTIONEES:
	
	ASHFORD HOSPITALITY PRIME LIMITED PARTNERSHIP
		
	By:	 	Ashford Prime OP General Partner LLC, its general partner
			
		 	By:	 	  

		 		 	David Brooks, Vice President
	
	ASHFORD PRIME TRS CORPORATION
		
	By:	 	  

		 	David Kimichik, President

 
					
	GRANTORS:
	
	ASHFORD HOSPITALITY LIMITED PARTNERSHIP
		
	By:	 	Ashford OP General Partner LLC, its general partner
			
		 	By:	 	  

		 		 	David Brooks, Vice President
	
	ASHFORD TRS CORPORATION
		
	By:	 	  

		 	David Kimichik, President

 Pier House Option Agreement – Signature Page 

 ACKNOWLEDGEMENT AND AGREEMENT: 
 The undersigned has executed this Option Agreement to acknowledge and agree to the provisions of this Agreement imposing obligations on Ashford Hospitality Prime, Inc., including but not limited to
Section 7.3 and Article VIII. 
  

			
	ASHFORD HOSPITALITY PRIME, INC.
		
	By:	 	  

		 	David Brooks, Chief Operating Officer and
		 	General Counsel

 CONSENT TO PLEDGE: 
 The undersigned is the sole general partner of Ashford Prime OP and hereby consents to the pledge by Ashford Trust OP under the Ashford Trust Credit Facility of any Ashford Prime OP Units issued to
Ashford Trust OP in connection with the exercise of this Option Agreement. 
  

			
	ASHFORD PRIME OP GENERAL PARTNER LLC
		
	By:	 	  

	        David A. Brooks, Vice President

 Pier House Option Agreement – Signature Page 

 LIST OF SCHEDULES AND EXHIBITS 

Exhibits 
 Exhibit A - Description of
Property 
 Exhibit B - Purchase Notice 

Exhibit C - Form of Assignment Agreement 

Schedules 
 Schedule 3.11 - Taxes of
Ashford Trust OP 
 Schedule 3.12 - Claims or Litigation related to Ashford Trust OP 
 Schedule 4.9 - Taxes of Ashford Trust TRS 
 Schedule 4.10 - Claims or Litigation related to Ashford
Trust TRS 
 Pier House Option Agreement – Signature Page

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