Document:

SERIES C WARRANT

 

NEITHER THE ISSUANCE AND SALE OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE
TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144
OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

American Standard Energy Corp.

 

Series
C Warrant To Purchase Common Stock

 

Series C Warrant No.:                                                      

Date of Issuance: February 9, 2012 (“Issuance
Date”)

 

American Standard
Energy Corp., a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, [BUYER], the registered holder hereof or its permitted assigns (the
“Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or
after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [                   ] (______) (subject
to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the “Warrant
Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in
Section 16. This Warrant is one of the Warrants to Purchase Common Stock (the “Modification Warrants”) issued
pursuant to that certain Modification Agreement, dated as of February 9, 2012, by and among the Company and the Holders contained
therein (the “Modification Agreement”).

 

    	 

    	 

    

 

		1.	EXERCISE OF WARRANT.

 

(a)           Mechanics
of Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after
the Issuance Date, in whole or in part, by delivery (whether via facsimile or otherwise) of a written notice, in the form attached
hereto as Exhibit A (the “Exercise Notice”), of the Holder’s election to exercise this Warrant.
Within one (1) Trading Day following an exercise of this Warrant as aforesaid, the Holder shall deliver payment to the Company
of an amount equal to the Exercise Price in effect on the date of such exercise multiplied by the number of Warrant Shares as to
which this Warrant was so exercised (the “Aggregate Exercise Price”) in cash or via wire transfer of immediately
available funds. The Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder.
Execution and delivery of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as
cancellation of the original of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number
of Warrant Shares. Execution and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same
effect as cancellation of the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof.
On or before the first (1st) Trading Day following the date on which the Company has received an Exercise Notice, the Company shall
transmit by facsimile an acknowledgment of confirmation of receipt of such Exercise Notice, in the form attached hereto as Exhibit
B, to the Holder and the Company’s transfer agent (the “Transfer Agent”). On or before the third (3rd)
Trading Day following the date on which the Company has received such Exercise Notice, the Company shall (X) provided that the
Transfer Agent is participating in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program,
upon the request of the Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant
to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit/ Withdrawal at Custodian
system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver
to the Holder or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s agent or designee, in each
case, sent by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered
in the Company’s share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice),
for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of an Exercise
Notice, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect
to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account
or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted in
connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted
for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the request of the Holder,
the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own expense,
issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares
with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this
Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company
shall pay any and all taxes and fees which may be payable with respect to the issuance and delivery of Warrant Shares to the Holder
upon exercise of this Warrant. Notwithstanding the foregoing, the Company’s failure to deliver Warrant Shares to the Holder
on or prior to the second (2nd) Trading Day after the Company’s receipt of the Aggregate Exercise Price shall not be deemed
to be a breach of this Warrant.

 

(b)           Exercise
Price. For purposes of this Warrant, “Exercise Price” means $3.00, subject to adjustment as provided herein.

 

(c)           Company’s
Failure to Timely Deliver Securities. If the Company shall fail, for any reason or for no reason, to issue to the Holder within
the later of (i) three (3) Trading Days after receipt of the applicable Exercise Notice (or four (4) Trading Days if the Exercise
Notice is delivered after 5:00 P.M., New York City time, on the Exercise Date) and (ii) two (2) Trading Days after the Company’s
receipt of the Aggregate Exercise Price (or three (3) Trading Days if the Company receives the Aggregate Exercise Price after 5:00
P.M., New York City time, on the Exercise Date) (such later date, the “Share Delivery Deadline”), a certificate
for the number of shares of Common Stock to which the Holder is entitled and register such shares of Common Stock on the Company’s
share register or to credit the Holder’s balance account with DTC for such number of shares of Common Stock to which the
Holder is entitled upon the Holder’s exercise of this Warrant (as the case may be) (A) the Holder shall have the right to
rescind its exercise or (B) if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares
of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common
Stock, issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies
available to the Holder, the Company shall, within three (3) Business Days after the Holder’s request and in the Holder’s
discretion, either (i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage
commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation,
by any other Person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s
obligation to so issue and deliver such certificate or credit the Holder’s balance account with DTC for the number of shares
of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such
shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate
or certificates representing such shares of Common Stock or credit the Holder’s balance account with DTC for the number of
shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) and pay
cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares
of Common Stock multiplied by (B) the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing
on the date of the applicable Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

 

    	 

    	 

    

 

(d)          Mandatory
Exercise. Prior to the Expiration Date, the Company may mandatorily cause the exercise by the Holder of the outstanding Warrant
into Warrant Shares (the “Mandatory Exercise”) provided that the Closing Sale Price for any twenty (20) consecutive
Trading Days is equal to or greater than $6.00 (as adjusted for a stock split, stock dividend, reverse stock split, subdivision,
combination, reclassification or similar change in the capital structure of the Company) (the “Mandatory Exercise Event”).

 

(i)          Mandatory
Exercise Notice. Upon the occurrence of a Mandatory Exercise Event, the Company will deliver to Holder written notice thereof
(a “Mandatory Exercise Notice”) within ten (10) Trading Days of the Mandatory Exercise Event stating the number
of the Warrant Shares to be issued pursuant to such Mandatory Exercise and the applicable Aggregate Exercise Price. The Holder
shall by the fifth Trading Day (the “Mandatory Exercise Payment Date”) from receipt of the Mandatory Exercise
Notice deliver to the Company the original Warrant that is being exercised, the Exercise Notice and the Aggregate Exercise Price
in cash or via wire transfer of immediately available funds. In no event shall the Holder sell, assign or otherwise transfer any
Warrants with respect to which a Mandatory Exercise Notice has been delivered to such Holder.

 

(e)           Limitations
on Exercises.  Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable
by the Holder hereof to the extent (but only to the extent) that the Holder together with any of its affiliates would beneficially
own in excess of  9.9% (the “Maximum Percentage”) of the Common Stock after giving effect to such
exercise. To the extent the above limitation applies, the determination of whether this Warrant shall be exercisable (vis-à-vis
other convertible, exercisable or exchangeable securities owned by the Holder or any of its affiliates) and of which such securities
shall be exercisable (as among all such securities owned by the Holder) shall, subject to such Maximum Percentage limitation, be
determined on the basis of the first submission to the Company for conversion, exercise or exchange (as the case may be). No prior
inability to exercise this Warrant pursuant to this paragraph shall have any effect on the applicability of the provisions of this
paragraph with respect to any subsequent determination of exercisability. For the purposes of this paragraph, beneficial ownership
and all determinations and calculations (including, without limitation, with respect to calculations of percentage ownership) shall
be determined in accordance with Section 13(d) of the 1934 Act (as defined in the Securities Purchase Agreement) and the rules
and regulations promulgated thereunder. The provisions of this paragraph shall be implemented in a manner otherwise than in strict
conformity with the terms of this paragraph to correct this paragraph (or any portion hereof) which may be defective or inconsistent
with the intended Maximum Percentage beneficial ownership limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such Maximum Percentage limitation. The limitations contained in this paragraph shall apply
to a successor Holder of this Warrant. For any reason at any time, upon the written or oral request of the Holder, the Company
shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding,
including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including,
without limitation, pursuant to this Warrant or securities issued pursuant to the Purchase Agreement.  By written notice
to the Company, any Holder may increase or decrease the Maximum Percentage to any other percentage specified in such notice; provided
that (i) any such increase will not be effective until the 61st day after such notice is delivered to the Company, and (ii) any
such increase or decrease will apply only to the Holder sending such notice and not to any other holder of Warrants. The Maximum
Percentage limitation contained in this Section 1(e) shall not apply to a Mandatory Exercise Event pursuant to Section 1(d) or
in connection with the exercise of the Holder’s rights pursuant to a Fundamental Transaction set forth in Section 4(b).

 

(f)          Disputes.  In
the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant Shares
to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 13.

 

    	 

    	 

    

 

(g)           Insufficient
Authorized Shares. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common
Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock hereunder (without regard
to any limitation otherwise contained herein with respect to the number of shares of Common Stock that may be acquirable upon exercise
of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while any of the Modification Warrants
remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock to satisfy
its obligation to reserve for issuance upon exercise of the Modification Warrants at least a number of shares of Common Stock equal
to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of all of the Modification
Warrants then outstanding (the “Required Reserve Amount”) (an “Authorized Share Failure”),
then the Company shall promptly take all action necessary to increase the Company’s authorized shares of Common Stock to
an amount sufficient to allow the Company to reserve the Required Reserve Amount for all the Modification Warrants then outstanding.
Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized
Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall
hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection
with such meeting, the Company shall provide each stockholder with a proxy statement or information statement and shall use its
best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its
board of directors to recommend to the stockholders that they approve such proposal.

 

		2.	ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number
of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section
2.

 

(a)           Stock
Dividends and Splits. Without limiting any provision of Section 4, if the Company, at any time on or after the date hereof,
(i) pays a stock dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution
on any class of capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines
(by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of
shares of Common Stock outstanding immediately after such event.  Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such
dividend or distribution, and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately
after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during
the period that an Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately
to reflect such event.

 

(b)           Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) of this Section 2, the
number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so
that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the
same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise
contained herein).

 

(c)           Other
Events.  In the event that the Company shall take any action to which the provisions hereof are not strictly applicable,
or, if applicable, would not operate to protect the Holder from dilution or if any event occurs of the type contemplated by the
provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of
stock appreciation rights, phantom stock rights or other rights with equity features), then the Company’s board of directors
shall in good faith determine and implement an appropriate adjustment in the Exercise Price and the number of Warrant Shares (if
applicable) so as to protect the rights of the Holder, provided that no such adjustment pursuant to this Section 2(c) will increase
the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2, provided further
that if the Holder does not accept such adjustments as appropriately protecting its interests hereunder against such dilution,
then the Company’s board of directors and the Holder shall agree, in good faith, upon an independent investment bank of nationally
recognized standing to make such appropriate adjustments, whose determination shall be final and binding and whose fees and expenses
shall be borne by the Company.

 

(d)           Calculations.
All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as applicable.
The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account
of the Company, and the disposition of any such shares shall be considered an issue or sale of Common Stock.

 

    	 

    	 

    

 

		3.	RIGHTS UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2
above, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets)
to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution
of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement,
scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this
Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the
Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon the complete
exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage)
immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however,
to the extent that the Holder’s right to participate in any such Distributions would result in the Holder exceeding the Maximum
Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent (or the beneficial ownership
of any such shares of Common Stock as a result of such Distribution to such extent) and such Distribution to such extent shall
be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Maximum Percentage).

 

		4.	PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)           Purchase
Rights.  In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or
sells any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the record
holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to
acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to
any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately before the date on which
a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which
the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided,
however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding
the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial
ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent
shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding
the Maximum Percentage).

 

(b)           Fundamental
Transactions.  The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity
assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4(b)
pursuant to written agreements, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation,
which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such
Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock
(but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for the
purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction).
Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from
and after the date of the applicable Fundamental Transaction, the provisions of this Warrant referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the
obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.
Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall
be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction, in lieu of
the shares of Common Stock (or other securities, cash, assets or other property (except such items still issuable under Sections
3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of this Warrant prior to the applicable
Fundamental Transaction, such shares of common stock (or its equivalent) of the Successor Entity (including its Parent Entity)
which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant
been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise of
this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, , the Holder may elect,
at its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental Transaction
without the assumption of this Warrant.  In addition to and not in substitution for any other rights hereunder, prior
to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate Event”),
the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise
of this Warrant at any time after the consummation of the applicable Fundamental Transaction but prior to the Expiration Date,
in lieu of the shares of the Common Stock (or other securities, cash, assets or other property (except such items still issuable
under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise of the Warrant prior
to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants
or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of the applicable
Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard
to any limitations on the exercise of this Warrant). Any exercise of this Warrant in connection with a Fundamental Transaction
may be conditioned upon the consummation of such Fundamental Transaction.

 

    	 

    	 

    

 

(c)Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate Events
and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard to any limitations
on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of the Maximum Percentage,
applied however with respect to shares of capital stock registered under the 1934 Act and thereafter receivable upon exercise of
this Warrant (or any such other warrant)).

 

		5.	NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by
amendment of its articles of incorporation, bylaws or through any reorganization, transfer of assets, consolidation, merger, scheme
of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant
and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the
Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above
the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and non-assessable shares of Common Stock upon the exercise of this Warrant, and (iii)
shall, so long as any of the Modification Warrants are outstanding, take all action necessary to reserve and keep available out
of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the Modification Warrants,
the maximum number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the Modification
Warrants then outstanding (without regard to any limitations on exercise).

 

		6.	WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein,
the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed
the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer
upon the Holder, solely in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any
right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of
stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise
of this Warrant.  In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the
Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.

 

    	 

    	 

    

 

		7.	REISSUANCE OF WARRANTS.

 

(a)           Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)           Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall
suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the
Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase
the Warrant Shares then underlying this Warrant.

 

(c)           Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional
shares of Common Stock shall be given.

 

(d)           Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

		8.	NOTICES.  Whenever notice is required to be given under this Warrant, unless otherwise
provided herein, such notice shall be given in accordance with the Modification Agreement. The Company shall provide the Holder
with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such
action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder
(i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail,
and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect
to any rights to purchase stock, warrants, securities or other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information
shall be made known to the public prior to or in conjunction with such notice being provided to the Holder and (iii) at least ten
(10) Trading Days prior to the consummation of any Fundamental Transaction.  To the extent that any notice provided hereunder
constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall
simultaneously file such notice with the Securities and Exchange Commission pursuant to a Current Report on Form 8-K.

 

		9.	AMENDMENT AND WAIVER.  Except as otherwise provided herein, the provisions of
this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to
be performed by it, only if the Company has obtained the written consent of the Holder.  No waiver shall be effective unless
it is in writing and signed by an authorized representative of the waiving party.

 

    	 

    	 

    

 

		10.	SEVERABILITY.  If any provision of this Warrant is prohibited by law or otherwise
determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited,
invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the
invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Warrant so long
as this Warrant as so modified continues to express, without material change, the original intentions of the parties as to the
subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially
impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would
otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid
or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited,
invalid or unenforceable provision(s).

 

		11.	GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance
with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed
by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions
other than the State of New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained
herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in
any other jurisdiction to collect on the Company’s obligations to the Holder or to enforce a judgment or other court ruling
in favor of the Holder.  THE PARTIES HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

		12.	CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company
and the Holder and shall not be construed against any Person as the drafter hereof.  The headings of this Warrant are
for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

 

		13.	DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price,
the Closing Sale Price, the Bid Price or fair market value or the arithmetic calculation of the Warrant Shares (as the case may
be), the Company or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the
case may be) via facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute
to the Company or the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after the Holder
learned of the circumstances giving rise to such dispute. If the Holder and the Company are unable to agree upon such determination
or calculation (as the case may be) of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value or the number
of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic calculation
being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business Days submit
via facsimile (a) the disputed determination of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value
(as the case may be) to an independent, reputable investment bank selected by the Holder or (b) the disputed arithmetic calculation
of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause at its expense the investment
bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company
and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations
(as the case may be). Such investment bank’s or accountant’s determination or calculation (as the case may be) shall
be binding upon all parties absent demonstrable error.

 

    	 

    	 

    

 

		14.	REMEDIES, CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies
provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant and the other Transaction
Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein
shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant.
The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly
provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the computation
thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any
other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder
will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore
agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition to
all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested
by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant (including,
without limitation, compliance with Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby
upon the exercise of this Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs
in respect thereof, provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

		15.	TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the
consent of the Company, except as may otherwise be required by Section 2(g) of the Securities Purchase Agreement.

 

		16.	CERTAIN DEFINITIONS.  For purposes of this Warrant, the following terms shall
have the following meanings:

 

(a)           “Additional
Right” means any right granted with respect to any securities issued in connection with, or with respect to, any issuance
or sale (or deemed issuance or sale in accordance with Section 2) of shares of Common Stock (other than rights of the type described
in Section 3 and 4 hereof) that could result in a decrease in the net consideration received by the Company in connection with,
or with respect to, such securities (including, without limitation, any cash settlement rights, cash adjustment or other similar
rights).

 

(b)           “Approved
Stock Plan” means any employee benefit plan which has been approved by the board of directors of the Company prior to
or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase Common Stock may be
issued to any employee, officer or director for services provided to the Company in their capacity as such.

 

(c)           “Bid
Price” means, for any security as of the particular time of determination, the bid price for such security on the Principal
Market as reported by Bloomberg as of such time of determination, or, if the Principal Market is not the principal securities exchange
or trading market for such security, the bid price of such security on the principal securities exchange or trading market where
such security is listed or traded as reported by Bloomberg as of such time of determination, or if the foregoing does not apply,
the bid price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by
Bloomberg as of such time of determination, or, if no bid price is reported for such security by Bloomberg as of such time of determination,
the average of the bid prices of any market makers for such security as reported in the “pink sheets” by OTC Markets
Group Inc. (formerly Pink Sheets LLC) as of such time of determination. If the Bid Price cannot be calculated for a security as
of the particular time of determination on any of the foregoing bases, the Bid Price of such security as of such time of determination
shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to
agree upon the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13.
All such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar
transaction during such period.

 

(d)           “Bloomberg”
means Bloomberg, L.P.

 

(e)           “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

    	 

    	 

    

 

(f)           “Closing
Sale Price” means, for any security as of any date, the last closing trade price for such security on the Principal Market,
as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing
trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if
the Principal Market is not the principal securities exchange or trading market for such security, the last trade price of such
security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg,
or if the foregoing does not apply, the last trade price of such security in the over-the-counter market on the electronic bulletin
board for such security as reported by Bloomberg, or, if no last trade price is reported for such security by Bloomberg, the average
of the ask prices of any market makers for such security as reported in the “pink sheets” by OTC Markets Group Inc.
(formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing
bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company
and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute
shall be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(g)           “Common
Stock” means (i) the Company’s shares of common stock, $0.001 par value per share, and (ii) any capital stock
into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock.

 

(h)           “Convertible
Securities” means any stock or other security (other than Options) that is at any time and under any circumstances, directly
or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any
shares of Common Stock.

 

(i)           “Eligible
Market” means The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market,
the Nasdaq Capital Market or the Principal Market.

 

(j)           “Expiration
Date” means the earlier of (i) the date that is the fifth (5th) anniversary of the Issuance Date or, if such date falls
on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”),
the next date that is not a Holiday or (ii) the Mandatory Exercise Payment Date if the Company delivers a Mandatory Exercise Notice
to the Holder pertaining to the balance of all outstanding Warrant Shares in accordance with Section 1(d).

 

(k)           “Fundamental
Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly, in one or more related
transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries is the surviving corporation)
any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its
respective properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer
that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company (not including any shares
of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated with the Persons
making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other
Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company (not including
any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated or affiliated
with the other Persons making or party to, such stock or share purchase agreement or other business combination), or (5) reorganize,
recapitalize or reclassify the Common Stock, or (ii) any “person” or “group” (as these terms are used
for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become
the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
ordinary voting power represented by issued and outstanding Voting Stock of the Company. 

 

 (l)           “Options”
means any rights, warrants or options to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

(m)           “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

    	 

    	 

    

 

(n)           “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity or a government or any department or agency thereof.

 

(o)           “Principal
Market” means the OTC Bulletin Board.

 

(p)           “Successor
Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting from or surviving
any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction
shall have been entered into.

 

(q)           “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded, provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such day is otherwise
designated as a Trading Day in writing by the Holder.

 

(r)           “Voting
Stock” of a Person means capital stock of such Person of the class or classes pursuant to which the holders thereof have
the general voting power to elect, or the general power to appoint, at least a majority of the board of directors, managers or
trustees of such Person (irrespective of whether or not at the time capital stock of any other class or classes shall have or might
have voting power by reason of the happening of any contingency).

 

[signature page follows]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Issuance Date set out above.

 

	 	AMERICAN STANDARD ENERGY CORP.	 
	 	 	 	 
	 	By: 	 	 
	 	 	Name:  Scott Feldhacker	 
	 	 	Title:  Chief Executive Officer	 

  

    	 

    	 

    

 

 

EXHIBIT A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

AMERICAN STANDARD ENERGY CORP.

 

The undersigned
holder hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”)
of American Standard Energy Corp. a Delaware corporation (the “Company”), evidenced by Series C Warrant to Purchase
Common Stock No. _______ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant.

 

1.           Form
of Exercise Price.  The Holder intends that payment of the Exercise Price shall be made as:

 

		£	a “Cash Exercise” with respect to _________________ Warrant Shares.

  

2.           Payment
of Exercise Price. The Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance
with the terms of the Warrant.

 

3.           Delivery
of Warrant Shares.  The Company shall deliver to Holder, or its designee or agent as specified below, the Warrant
Shares in accordance with the terms of the Warrant.  Delivery shall be made to Holder, or for its benefit, to the following
address:

 

_______________________

_______________________

_______________________

_______________________

 

4.Accredited
Investor. The undersigned represents that the representations set forth in Section 6 of the Modification Agreement are true
and correct as of the date of this Notice of Exercise.

 

Date: _______________ __, ______

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing Entity:
_________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

    	 

    	 

    

 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated ________, from the Company and acknowledged and agreed to by _______________.

 

 

	 	AMERICAN STANDARD ENERGY CORP.	 
	 	 	 	 
	 	By: 	 	 
	 	 	Name: 	 
	 	 	Title:THIS AMENDED AND RESTATED WARRANT AND THE
SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”),
AS AMENDED OR ANY STATE SECURITIES LAWS. NEITHER THIS AMENDED AND RESTATED WARRANT NOR SUCH SECURITIES MAY BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THE SECURITIES UNDER THE SECURITIES ACT UNLESS (I) MACQUARIE AMERICAS CORP. SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT
REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED,
OR (II) SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.

 

AMENDED
AND RESTATED WARRANT to Purchase COMMON STOCK of

 

American
Standard Energy Corp.

 

	ISSUED:  September 21, 2011	Warrant No. 1A

 

THIS CERTIFIES that, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, MACQUARIE AMERICAS CORP., a Delaware
corporation (together with its successors and assigns, the “Holder”), is entitled, subject to the terms and
conditions set forth herein, to purchase from American Standard Energy Corp., a
Delaware corporation (together with its successors and assigns, the “Company”), Two Million Three Hundred Thirty
Three Thousand (2,333,000) shares of fully paid and non-assessable Common Stock (as defined below) (the “Warrant Shares”),
at a per share purchase price of Three Dollars and Twenty Five Cents ($3.25) (the “Exercise Price”), subject
to adjustment in accordance with Section 2.6 below.

 

This Amended and Restated
Warrant (this “Warrant”) amends and restates in its entirety that certain Warrant No. 1A, issued September 21,
2011 (the “Original Warrant”), by the Company in favor of the Holder, which Original Warrant was issued pursuant
to the terms of that certain $300,000,000 Credit Agreement, dated as of September 21, 2011 (the “Credit Agreement”),
between the Company and Macquarie Bank Limited.

 

This Warrant expires at
5:00 p.m., Houston, Texas time, on September 21, 2016 (the “Expiration Date”).

 

    	 

    	 

    

 

Article
I

Definitions

 

1.1        Definitions.
For purposes of this Warrant, the following terms shall have the meanings set forth below: 

 

“Bloomberg”
means Bloomberg Financial Markets.

 

“Business Day”
means any day other than a day on which commercial banks are authorized or required to close in New York, New York.

 

“Closing Sale
Price” shall mean, for any security as of any date, the last reported sales price for such security on the Principal
Market, or, if the Principal Market operates on an extended hours basis, then the last reported sales price of such security prior
to 4:00:00 p.m., New York time as reported by Bloomberg. If the Closing Sale Price cannot be determined for a security on a particular
date, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company
and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute
shall be resolved in accordance with the procedures in Section 5.3.

 

“Commission”
shall mean the United States Securities and Exchange Commission or any other United States Federal agency administering the Securities
Act and/or the Exchange Act at the time.

 

“Common Stock”
shall mean the common stock of the Company, par value $0.001 per share.

 

“Convertible Securities”
means any stock or other security (other than Options) that is at any time and under any circumstances, directly or indirectly,
convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any shares of Common
Stock.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, or any successor Federal statute, and the rules and regulations
of the Commission promulgated thereunder, all as the same shall be in effect from time to time.

  

“Fundamental Transaction”
shall mean that (i) the Company or any of its subsidiaries shall, directly or indirectly, in one or more related transactions,
(1) consolidate or merge with or into (whether or not the Company or any of its subsidiaries is the surviving corporation) any
other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective
properties or assets to any other Person, or (3) allow any other Person to make a purchase, tender or exchange offer that is accepted
by the holders of more than 50% of the outstanding shares of the Common Stock (not including any shares of Common Stock held by
the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender
or exchange offer), or (4) consummate a stock or share purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with any other Person whereby such other Person acquires
more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase
agreement or other business combination), or (5) reorganize, recapitalize or reclassify the Common Stock, or (ii) any “person”
or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and regulations
promulgated thereunder) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly
or indirectly, of 50% of the issued and outstanding Common Stock other than a group consisting of Randall Capps, Geronimo Holding
LLC HNL Royalties LLC, XOG Operating, LLC, Geronimo Holding Corporation, CLW South Texas 2008 LP and their affiliates.

 

    	 

    	 

    

 

“Option”
shall mean any right, warrant or option to subscribe for or purchase shares of Common Stock or Convertible Securities.

 

“Person”
shall mean any individual, corporation (including any non-profit corporation), general partnership, limited partnership, limited
liability company, joint venture, joint stock association, estate, trust, cooperative, foundation, union, syndicate, consortium,
coalition, committee, firm, company or other enterprise, association, organization or entity of any nature.

 

“Principal Market”
shall mean the OTC Bulletin Board; provided, however, if at any time the Common Stock becomes primarily traded, listed or quoted
on The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital
Market or any other national securities exchange or quotation system, then “Principal Market” shall mean such exchange
or system upon which the Common Stock at such time is primarily traded, listed or quoted.

 

“Registrable Securities”
shall mean (i) the Warrant Shares and (ii) any other securities issued or issuable with respect to this Warrant or the
Warrant Shares by way of dividends or splits or in connection with a combination of units, interests, recapitalization, merger,
consolidation or other reorganization or otherwise. As to any particular Registrable Securities, once issued such securities shall
cease to be Registrable Securities when (A) they are sold pursuant to an effective Registration Statement under the Securities
Act, (B) they are sold pursuant to Rule 144 (or any similar provision then in force under the Securities Act) or (C) they
are transferable without restriction by the Holder thereof in a single brokerage transaction under the provisions of Rule 144
or any similar rule then in effect.

 

“Securities Act”
shall mean the United States Securities Act of 1933, as amended, or any successor United States Federal statute, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect from time to time.

 

“Successor Entity”
shall mean the Person formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental
Transaction shall have been entered into.

 

“Trading Day”
shall mean any day on which the Common Stock is traded on the Principal Market, provided that “Trading Day” shall not
include any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.0 hours or any day that
the Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or
market does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00:00
p.m., New York time) unless such day is otherwise designated as a Trading Day in writing by the Holder.

  

    	 

    	 

    
 

“Warrant Shares”
shall have the meaning set forth in the introduction and shall also include any securities of the Company into which this Warrant
may be exercised pursuant to Section 2.6.

 

1.2        Rules
of Construction. The title of and the section and paragraph headings in this Warrant are for convenience of reference only
and shall not govern or affect the interpretation of any of the terms or provisions of this Warrant. The use herein of the masculine,
feminine or neuter forms shall also denote the other forms, as in each case the context may require. Where specific language is
used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or
restrict in any manner the construction of the general statement to which it relates. The language used in this Warrant has been
chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any party. In
the case of this Warrant, (a) the meanings of defined terms are equally applicable to the singular and plural forms of the defined
terms; (b) Exhibit and Section references are to this Warrant unless otherwise specified; (c) the term “including”
is not limiting and means “including but not limited to”; (d) in the computation of periods of time from a specified
date to a later specified date, the word “from” means “from and including” the words “to” and
“until” each mean “to but excluding,” and the word “through” means “to and including”;
(e) unless otherwise expressly provided in this Warrant, (i) references to agreements and other contractual instruments shall
be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other
modifications are not prohibited by the terms of the Warrant, and (ii) references to any statute or regulation shall be construed
as including all statutory and regulatory provisions amending, replacing, supplementing or interpreting such statute or regulation;
and (f) this Warrant is the result of negotiations among the parties, has been reviewed by counsel to the Company and is the product
of all parties; accordingly, it shall not be construed against the Holder merely because of the Holder’s involvement in its
preparation.

  

Article
II

Exercise
of Warrant

 

2.1        Method
of Exercise.

 

  (a)        This Warrant may be exercised
by the Holder in whole or in part at any time and from time to time before 5:00 p.m., Houston, Texas time, on the Expiration Date.
To exercise this Warrant, the Holder hereof shall deliver to the Company (i) a written notice in the form of the Notice of
Exercise of Warrant attached as Exhibit A hereto (the “Exercise Notice”), stating therein the election
of the Holder to exercise this Warrant in the manner provided in the Exercise Notice, (ii) payment in full of the Exercise
Price as provided in Section 2.1(d), and (iii) this Warrant. This Warrant shall be deemed to be exercised on the date
(the “Exercise Date”) of receipt by the Company of the Exercise Notice and payment to the Company of an amount
equal to the Exercise Price in effect on such Exercise Date multiplied by the number of Warrant Shares as to which this Warrant
was so exercised (other than Warrant Shares for which the Holder has elected to purchase pursuant to a Cashless Exercise) (the
“Aggregate Exercise Price”) in cash or via wire transfer of immediately available funds, if any. The Holder
shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder. Execution and delivery
of an Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original
of this Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution
and delivery of an Exercise Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of
the original of this Warrant after delivery of the Warrant Shares in accordance with the terms hereof.

 

    	 

    	 

    
 

(b)        If the Holder
exercises this Warrant as set forth herein, then the Company shall, as promptly as practicable and in any event within five (5)
Business Days after the Exercise Date, issue and deliver, or cause to be issued and delivered, to the Holder a certificate or certificates
for the Warrant Shares. The certificates so delivered shall be in such denominations as may be requested by the Holder and shall
be registered in the name of the Holder or such other Persons as the Holder may designate in the Exercise Notice. As permitted
by applicable law, the Person(s) in whose name the certificates for the Warrant Shares are to be issued shall be deemed to have
become a holder of record of such Warrant Shares on the Exercise Date and shall be entitled to all of the benefits of such holder
and as a stockholder of the Company on the Exercise Date, including the right to receive dividends and other distributions for
which the record date falls on or after the Exercise Date and to exercise voting rights..

 

(c)        If this Warrant
is submitted in connection with any exercise pursuant to this Section 2.1 and the number of Warrant Shares represented by
this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company
shall as soon as practicable and in no event later than five (5) Business Days after any exercise and at its own expense, issue
and deliver to the Holder (or its designee) a new Warrant representing the right to purchase the number of Warrant Shares purchasable
immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised.

 

(d)        At the discretion
of the Holder, the Holder shall pay the Exercise Price for all Warrant Shares purchased hereunder in full (i) in cash or by certified
check or wire transfer of immediately available funds, (ii) by Cashless Exercise (as described in Section 2.2), or (iii)
pursuant to any combination of (i) or (ii).

  

2.2        Cashless
Exercise. Notwithstanding any provisions herein to the contrary, if a registration statement covering the resale of the Warrant
Shares pursuant to the 1933 Act is not available for the resale of such Warrant Shares and if the fair market value of one share
of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), then the Holder may, in its
sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be
made to the Company upon such exercise, elect instead to receive upon such exercise the number of shares of Common Stock determined
according to the following formula by indicating such election in the Notice of Exercise (a “Cashless Exercise”):

 

    	 

    	 

    
 

X = Y (A-B)

            A

Where:

 

		X =	the number of shares of Common Stock to be issued to the Holder

 

		Y =	the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the
Warrant is being exercised, the portion of the Warrant being exercised

 

		A =	the Closing Sale Price of one share of Common Stock on the day immediately preceding the date of
the Exercise Notice.

 

		B =	the Exercise Price (as adjusted to the date of such calculation)

 

2.3       Expenses
and Taxes. The Company shall pay all expenses and taxes (including all documentary, stamp, transfer or other transactional
taxes) attributable to the preparation, issuance or delivery of this Warrant and of the Warrant Shares and other securities issuable
upon exercise of and delivery of this Warrant, other than income taxes and the Holder’s broker fees.

 

2.4       Reservation
of Common Stock. So long as this Warrant remains outstanding, the Company shall reserve, free from preemptive or other similar
rights, out of its authorized but unissued Common Stock, and solely for the purpose of effecting the exercise of this Warrant,
a sufficient number of Common Stock to provide for the exercise of this Warrant. If, notwithstanding the foregoing, and not in
limitation thereof, at any time while any portion of this Warrant remains outstanding the Company does not have a sufficient number
of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this Warrant
and any other warrants, Options or Convertible Securities (the “Required Reserve Amount”) (an “Authorized
Share Failure”), then the Company shall promptly take all action necessary to increase the Company’s authorized
shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount. Without limiting the
generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but
in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting
of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In connection with such
meeting, the Company shall provide each stockholder with a proxy statement or information statement and shall use its best efforts
to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal.

 

2.5      Valid
Issuance. The Company hereby represents, warrants and covenants that all shares of Common Stock and any other securities issued
upon exercise of, or otherwise in connection with, this Warrant will, upon payment of the Exercise Price and issuance by the Company,
be duly authorized, validly and legally issued, fully paid and nonassessable and free and clear of all taxes, liens, security interests,
charges and other encumbrances or restrictions other than any applicable resale restrictions pursuant to the Securities Act and,
without limiting the generality of the foregoing, the Company will take all actions necessary to ensure such result and will not
take any action which will cause a contrary result.

 

    	 

    	 

    

 

2.6        Adjustment
to Exercise Price and Number of Warrant Shares. To prevent dilution of the rights granted under this Warrant, the Exercise
Price and the amount of Warrant Shares purchasable hereunder is subject to adjustment from time to time as follows:

 

(a)         Stock Split,
Subdivision or Combination. If at any time while any portion of this Warrant remains outstanding, the Company (i) pays a stock
dividend on one or more classes of its then outstanding shares of Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides (by any stock split, stock dividend, recapitalization
or otherwise) one or more classes of its then outstanding shares of Common Stock into a larger number of shares or (iii) combines
(by combination, reverse stock split or otherwise) one or more classes of its then outstanding shares of Common Stock into a smaller
number of shares, then in each such case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of
shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall
become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution,
and any adjustment pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date
of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an
Exercise Price is calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect
such event.

 

(b)        Record Date.
If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend
or other distribution payable in shares of Common Stock, Options or in Convertible Securities or (B) to subscribe for or purchase
shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or
sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such
other distribution or the date of the granting of such right of subscription or purchase (as the case may be).

 

(c)        Number of
Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant Section 2.6(a), the number of Warrant
Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate
Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on exercise contained herein).

 

(d)        Other Dilutive
Events. In case any event shall occur as to which the provisions of this Section 2.6 are not strictly applicable, but
the failure to make any adjustment would not fairly protect the purchase rights presented by the Warrants in accordance with the
essential intent and principles of this Section 2.6, then, in each such case, the Company shall make a good faith adjustment
to the Exercise Price or the number of Warrant Shares or other securities issuable upon exercise of this Warrant in accordance
with the intent of this Section 2.6, provided that in the event the Holder does not accept in its sole discretion such adjustments
as appropriately protecting its interests hereunder, then such dispute shall be resolved in accordance with the procedures in Section
5.3.

 

    	 

    	 

    

 

(e)        Certificate
as to Adjustments. In the event of an adjustment or readjustment pursuant to this Section 2.6, the Company at its expense
shall compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting
forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based no later
than ten (10) days prior to such adjustment. The Company shall, upon the written request, at any time, of the Holder, furnish or
cause to be furnished to the Holder a like certificate setting forth: (i) such adjustments and readjustments and (ii) the number
of securities and the amount, if any, of other property that at the time would be received upon the exercise of the Warrant.

 

2.7        Rights
Upon Distribution of Assets. In addition to any adjustments pursuant to Section 2.6 above, if the Company shall declare
or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock,
by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property
or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction)
( “Distributed Property”), at any time while this Warrant remains outstanding, then, in each such case, the
Holder shall be entitled upon exercise of this Warrant for the purchase of any or all of the Warrant Shares, to receive the amount
of Distributed Property which would have been payable to the Holder had the Holder been the holder of such Warrant Shares on the
record date for the determination of stockholders entitled to such Distributed Property. The Company will at all times set aside
in escrow and keep available for distribution to such holder upon exercise of this Warrant a portion of the Distributed Property
to satisfy the distribution to which such Holder is entitled pursuant to the preceding sentence.

 

2.8        Purchase
Rights. In addition to any adjustments pursuant to Section 2.6 above, if at any time the Company grants, issues or sells
any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to all of the
record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant immediately before
the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the
date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase
Rights.

 

    	 

    	 

    

 

2.9        Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes
in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 2.9
pursuant to written agreements, including agreements to deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation,
which is exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant prior to such Fundamental Transaction, and with an exercise price which applies the
exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock
pursuant to such Fundamental Transaction and the value of such shares of capital stock, such adjustments to the number of shares
of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior
to the consummation of such Fundamental Transaction). Upon the consummation of each Fundamental Transaction, the Successor Entity
shall succeed to, and be substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions
of this Warrant shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume
all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the
Company herein. Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation
that there shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction,
in lieu of the shares of Common Stock (or other securities, cash, assets or other property issuable upon the exercise of this Warrant
prior to the applicable Fundamental Transaction, such shares of publicly traded common stock (or its equivalent) of the Successor
Entity which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this
Warrant been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise
of this Warrant), as adjusted in accordance with the provisions of this Warrant. Notwithstanding the foregoing, the Holder may
elect, at its sole option, by delivery of written notice to the Company to waive this Section 2.9 to permit the Fundamental
Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder, prior
to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common Stock, the Company shall make appropriate provision
to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation
of the applicable Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of the Common Stock (or other
securities, cash, assets or other property issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such
shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this
Warrant been exercised immediately prior to the applicable Fundamental Transaction.

 

2.10        No Impairment.
The Company hereby covenants and agrees that it will not, by amendment of its Articles of Incorporation or Bylaws or through any
reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this
Warrant, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking
of all such action as may be necessary or appropriate in order to protect the rights of the Holder against impairment.

  

2.11        Notices
of Record Date. In the event of any taking by the Company of a record of its members or equity holders for the purpose of determining
the members or equity holders who are entitled to receive payment of any distribution (other than a cash distribution), any right
to subscribe for, purchase or otherwise acquire any of the securities or property of the Company, or to receive any other right,
or for the purpose of determining members or equity holders who are entitled to vote in connection with any proposed merger or
consolidation of the Company with or into any other entity, or any proposed sale, lease or conveyance of all or substantially all
of the assets of the Company, or any proposed liquidation, dissolution or winding up of the Company, the Company shall mail to
the Holder, at least ten (10) days prior to the record date specified therein, a notice specifying the date on which any such record
is to be taken for the purpose of such distribution or right, and the amount and character of such distribution or right.

 

    	 

    	 

    

 

2.12        No Fractional
Share of Common Stock. The Company shall not be required to issue any fractional share of Common Stock on the exercise of this
Warrant. The number of full shares of Common Stock which shall be issuable upon such exercise shall be computed on the basis of
the aggregate number of whole shares of Common Stock purchasable on exercise of this Warrant so presented. If any fraction of a
share of Common Stock would, except for the provisions of this Section 2.12, be issuable on the exercise of
this Warrant, the Company shall round up the total number of shares of Common Stock purchasable hereunder to the next whole share
of Common Stock.

 

Article
III

Transfer

 

3.1        Warrant
Register. The Company shall maintain, at its principal executive office, a register for this Warrant in which the Company shall
record (a) the name and address of the Person in whose name this Warrant has been issued (as well as the name and address of each
permitted assignee of the rights of the registered owner hereof) and (b) the number of shares of Common Stock issuable upon the
exercise or exchange hereof.

 

3.2        Ownership
of Warrant. The Company shall deem and treat the Person in whose name this Warrant is registered as the Holder and owner hereof
until provided with written notice to the contrary.

 

3.3        Restrictions
on Transfer of Warrant.

 

(a)        This Warrant
is not transferable directly or indirectly, in whole or in part, except in the case of any transfer that is in compliance with
applicable U.S. federal and state securities laws, including the Securities Act. Any transfers of this Warrant will be without
charge to the Holder except that any securities transfer taxes due on transfer of this Warrant will be paid by the Holder.

 

(b)        Subject to
Section 3.3, the Holder may assign, convey or transfer this Warrant and any rights hereunder to any Person without the prior
written consent of the Company, provided that the assignee makes the representations set forth in Section 5.9 herein. In
the event of any assignment, conveyance or transfer of this Warrant, and the surrender of this Warrant by the Holder, the Company
shall issue a new Warrant on the same terms and conditions set forth herein to the transferee. The rights and obligations of the
Company and the Holder under this Warrant shall be binding upon and benefit their respective permitted successors, assigns, heirs,
administrators and transferees. References herein to the Holder shall include any such transferee.

 

    	 

    	 

    

 

Article
IV

Registration
rights

 

4.1        Piggy-Back
Registration Rights. If, at any time, the Company determines to register any of its Common Stock under the Securities
Act for sale to the public, whether for its own account or for the account of other security holders or both (other than a registration
statement on Form S-4 or S-8 or any successor forms, a registration covering only an employee benefit plan (as defined in Rule
405 of the Securities Act) or a registration covering only securities proposed to be issued in exchange for securities or assets
of another corporation) each such time it will give prompt written notice (but in no event less than five (5) Business Days prior
to the anticipated filing date) to the Holder of its intention to do so and of the proposed method of distribution of such securities,
and such notice shall offer the Holder the opportunity to register such number of Registrable Securities as the Holder may request
in writing within three (3) Business Days after receipt of such written notice from the Company. Upon the written request of the
Holder, which request must be received by the Company within three (3) Business Days after the giving of any such notice by the
Company and shall specify the Registrable Securities intended to be disposed of by the Holder), the Company will use its best efforts
to cause the Registrable Securities as to which registration shall have been so requested under this Section 4.1 to be included
in the securities to be covered by the registration statement proposed to be filed by the Company, all to the extent and under
the conditions such registration is permitted under the Securities Act. In the event that any registration pursuant to this Section
4.1 shall be, in whole or in part, an underwritten public offering of Common Stock, the number of Registrable Securities to
be included in such an underwriting may be reduced if and to the extent that the managing underwriter shall be of the opinion that
the inclusion of some or all of the Registrable Securities would adversely affect the marketing of the securities to be sold by
the Company therein. Any such limitation shall be imposed in such manner so as to avoid any diminution in the number of securities
the Company and the Holder may register for sale by giving first priority for the securities to be registered for issuance and
sale by the Company, by giving second priority for the securities of the Holder to be registered pursuant to this Section 4.1
and by giving third priority to any other securities to be registered for sale by any member or equity holder of the Company pursuant
to the terms of any other agreement. Notwithstanding the foregoing provisions, the Company may, in its reasonable discretion, terminate
or withdraw any registration statement referred to in this Section 4.1.

 

4.2        Additional
Provisions Concerning Registration. The following provisions of this Section 4.2 are applicable to any registration
statement filed pursuant to Section 4.1:

 

(a)        Costs and
Expenses. The Company shall bear the entire cost and expense of any registration or qualification of securities initiated under
Section 4.1 of this Warrant, including all underwriting discounts and commissions. Notwithstanding the foregoing, the Holder
shall, however, bear the fees of its own counsel and accountants and any transfer taxes applicable to Registrable Securities sold
by the Holder pursuant thereto.

 

    	 

    	 

    

(b)        Indemnification.
The Company shall indemnify and hold harmless the Holder and each underwriter, within the meaning of the Securities Act, who may
purchase from or sell for the Holder any Registrable Securities from and against any and all losses, claims, damages and liabilities
(including reasonable fees and expenses of counsel, which counsel may, if the Holder requests, be separate from counsel for the
Company) caused by any untrue statement or alleged untrue statement of material fact contained in the registration statement or
any post-effective amendment thereto or any registration statement under the Securities Act or any prospectus included therein
required to be filed or furnished by reason of this Article IV or any application or other filing under any state securities
law caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading to which the Holder or any such underwriter or any of them may become subject under the Securities
Act or other Federal or state statutory law or regulation, at common law or otherwise, except insofar as such losses, claims, damages
or liabilities are caused (i) by any such untrue statement or alleged untrue statement or omission or alleged omission based upon
or contained in any information furnished to the Company or any underwriter by the Holder in writing expressly for use therein,
which indemnification includes each Person, if any, who controls any such underwriter within the meaning of the Securities Act,
(ii) by the Holder’s failure to deliver to the Company in writing the information and affidavits required by subsection (c)
of this Section 4.2 after the Company has furnished such Holder with a sufficient number of copies of the registration statement
or prospectus or any amendments or supplements thereto, (iii) by the use by the Holder of an outdated or defective prospectus after
the Company has notified such Holder in writing that the prospectus is outdated or defective, or (iv) by the Holder’s failure
to comply with the prospectus delivery requirements of the Securities Act.

 

(c)        Disclosure
and Indemnification by Holders of Registrable Securities. In connection with
any registration statement in which a Holder is participating, each such Holder will furnish to the Company in writing such information
and affidavits relating to disclosure concerning such Holder required to be included in the registration statement as the Company
reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law,
will indemnify the Company, its directors and officers and each person who controls the Company (within the meaning of the Securities
Act) against any losses, claims, damages, liabilities and expenses resulting from (i) any untrue statement of material fact contained
in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission
of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent
that such untrue statement or omission is contained in any information or affidavit so furnished by such holder, (ii) the use by
the Holder of an outdated or defective prospectus after the Company has notified such Holder in writing that the prospectus is
outdated or defective or (iii) the Holder’s failure to comply with the prospectus delivery requirements of the Securities
Act.

 

(d)        Blue Sky.
If necessary, the Company shall use its best efforts to qualify the Registrable Securities for sale in such states as it is otherwise
qualifying its securities for sale, or in respect of any registration required pursuant to this Article IV, in such states
as are reasonably requested by the Holder. However, in no event is the Company required to submit to the jurisdiction of any state
other than for the limited consent of service of process relating to the offering or subject itself to taxation in any such jurisdiction.
The Company shall also provide the Holder with a reasonable number of prospectuses upon request, to the extent that such documents
are not available on EDGAR.

 

    	 

    	 

    

 

4.3        Information
by the Holder. The Holder shall furnish to the Company such information regarding the Holder, the Registrable Securities held
by the Holder, and the distribution proposed by the Holder of Registrable Securities as the Company may reasonably request in writing
and as shall be required in connection with any registration (including any amendment to a registration statement or prospectus),
qualification or compliance referred to in this Section 4.3.

  

4.4        Lock-Up
Agreements. The Holder shall agree to be bound by such lock-up agreements (not to exceed a period of one hundred twenty (120)
days following the date of the prospectus relating to any such underwriting) as the managing underwriter of any such registration
shall reasonably specify as a requirement to any such underwriting, provided that the entry of such holder of Registrable Securities
into such agreements shall be conditioned upon all principal shareholders (i.e., all shareholders who could reasonably be
expected to be considered by the applicable underwriters to be affiliates of the Company) and executive officers and directors
of the Company also agreeing to execute such lock-up agreements.

 

4.5        Changes
in Warrant Shares and Other Securities. If, and as often as, there is any change in the Warrant Shares or other securities
issuable upon exercise of this Warrant by way of a split, dividend, combination, or reclassification, or through a merger, consolidation,
reorganization, or recapitalization, or by any other means, appropriate adjustment shall be made in the provisions hereof so that
the rights and privileges granted in this Article IV shall continue with respect to the Warrant Shares or other securities
as so changed.

 

4.6        Rule 144.
During any period in which the Company is subject to Section 13 or Section 15(d) of the Exchange Act, the Company will file
the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the
Commission thereunder and will take such further action as the Holder may reasonably request, all to the extent required from time
to time to enable the Holder to sell the securities underlying this Warrant without registration under the Securities Act within
the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time,
or (b) any similar rule or regulation hereafter adopted by the Commission. Upon the request of the Holder, the Company will deliver
to the Holder a written statement as to whether it has complied with such requirements.

 

4.7        Exchange
Acceptance. As applicable, the Company will, at its expense, apply to and obtain acceptance from the Principal Market, for
the issuance of this Warrant and the Warrant Shares or other securities issued upon exercise hereof, and maintain listing on the
Principal Market, of all the Warrant Shares or other securities issuable upon the exercise of this Warrant.

 

    	 

    	 

    

4.8        Contribution.
If the indemnification provided for in Section 4.2(b) from the indemnifying party is unavailable to an indemnified
party hereunder in respect of any losses, claims, damages, liabilities or expenses referred to therein, then the indemnifying party,
in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and indemnified parties in connection with the actions which resulted in such losses, claims, damages, liabilities
or expenses, as well as any other relevant equitable considerations. The relative fault of such indemnifying party and indemnified
parties shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact, has been made by, or relates to information
supplied by, such indemnifying party or indemnified parties, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include any legal or other fees or expenses reasonably incurred by
such party in connection with any investigation or proceeding. The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 4.8 were determined by pro rata allocation or by any other method of allocation
that does not take account of the equitable considerations referred to in the immediately preceding paragraph. No Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.

 

4.9        Continuation.
The indemnification provisions with respect to this Warrant, the Warrant Shares, or other securities issuable upon exercise of
this Warrant in this Article IV shall continue in effect regardless of the exercise or exchange and surrender of this Warrant.

 

4.10      Damages.
The Company recognizes and agrees that the Holder will suffer irreparable harm and will not have an adequate remedy at law if the
Company fails to comply with any provision of this Article IV, and the Company expressly agrees that, in the event of such
failure, the Holder or any other person entitled to the benefits of Article IV shall be entitled to seek specific performance
of any and all provisions hereof and may seek to enjoin the Company from continuing to commit any further breach of this Article
IV.

 

4.11      No Inconsistent
Agreements. The Company hereby represents, warrants and covenants that it has not entered into and will not enter into any
registration rights agreement or similar arrangements the performance by the Company of the terms of which would in any manner
conflict with, restrict or be inconsistent with the performance by the Company of its obligations under this Warrant.

 

Article
V

Miscellaneous

 

5.1        Entire
Agreement. This Warrant and the Credit Agreement contain the entire agreement between the Holder hereof and the Company with
respect to the Warrant Shares and any other securities issuable upon exercise of this Warrant and the related transactions and
supersede all prior arrangements or understandings with respect thereto.

  

5.2        Governing
Law. This Warrant shall be a contract made under and governed by the internal laws of the State of New York applicable to contracts
made and to be performed entirely within such state, without regard to conflict of law principles.

 

    	 

    	 

    

 

5.3        Dispute
Resolution. In the case of a dispute as to the determination of the Exercise Price, the Closing Sale Price, fair market value
or the calculation of the Warrant Shares (as the case may be), the Company or the Holder (as the case may be) shall provide notice
to the other party regarding the disputed determinations or calculations (as the case may be) (i) within five (5) Business Days
after receipt of the applicable notice giving rise to such dispute to the Company or the Holder (as the case may be) or (ii) if
no notice gave rise to such dispute, at any time after the Holder or Company learned of the circumstances giving rise to such dispute.
If the Holder and the Company are unable to agree upon such determination or calculation (as the case may be) of the Exercise Price,
the Closing Sale Price or fair market value or the number of Warrant Shares (as the case may be) within three (3) Business Days
of such disputed determination or calculation being submitted to the Company or the Holder (as the case may be), then the Company
and the Holder shall, within two (2) Business Days submit (a) the disputed determination of the Exercise Price, the Closing Sale
Price or fair market value (as the case may be) to an independent auditing firm that is one of the top ten largest auditing firms
in the United States (provided such auditing firm has an internal financial services group that regularly conducts evaluations
of the fair market value of securities) selected by the Company and the Holder or (b) the disputed calculation of the Warrant Shares
to the Company’s independent, outside accountant. The Company shall cause at its expense the independent auditing firm or
the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company and
the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations
(as the case may be). Such independent auditing firm’s or accountant’s determination or calculation (as the case may
be) shall be binding upon all parties absent demonstrable error.

 

5.4        Remedies.
The remedies provided in this Warrant and the Credit Agreement shall be cumulative and in addition to all other remedies available
under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing
herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of
this Warrant. The Company covenants to the Holder that there shall be no characterization concerning this instrument other than
as expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the
computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject
to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach, the holder of this Warrant shall be entitled, in addition
to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required. The Company shall provide all information and documentation to the Holder that is requested
by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this Warrant. The
issuance of the Warrant Shares the certificates evidencing the Warrant Shares as contemplated hereby upon the exercise of this
Warrant shall be made without charge to the Holder.

 

5.5        Waiver
and Amendment. Any term or provision of this Warrant may be waived at any time by the party which is entitled to the benefits
of such term or provision. Any term or provision of this Warrant may be amended or supplemented at any time by agreement of the
Holder hereof and the Company. Any waiver of any term or condition, or any amendment or supplementation, of this Warrant shall
be in writing. A waiver of any breach or failure to enforce any of the terms or conditions of this Warrant shall not in any way
affect, limit or waive a party’s rights hereunder at any time to enforce strict compliance thereafter with every term or
condition of this Warrant.

 

    	 

    	 

    

 

5.6        Severability.
In the event that any one or more of the provisions contained in this Warrant shall be determined to be invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the benefit of the provision exists, be in any way
impaired.

 

5.7        Copy of
Warrant. A copy of this Warrant shall be filed among the records of the Company.

 

5.8        Notice.

 

    (a)        Any
notice, demand or document which either party is required or may desire to give to the other will be in writing and, except as
otherwise provided in this Warrant, given by messenger, nationally recognized courier, overnight delivery, facsimile or other
electronic transmission, or United States certified mail, postage prepaid, return receipt requested, addressed to the recipient
at the location shown below, or at any other address as either party may furnish to the other by notice given in accordance with
this provision.

 

	If to Holder:	 
	 	 
	Macquarie Americas Corp.
	500 Dallas Street, Suite 3250
	Houston, Texas  77002
	Attention:	Michael Sextro
	Telephone:	(713) 275-6207
	Facsimile:	(713) 275-6222
	E-Mail:	MECLoansHouston@macquarie.com
	 	 
	If to Company:
	 
	American Standard Energy Corp.
	4800 N. Scottsdale Rd., Ste. 1400
	Scottsdale, Arizona 85251
	Attention:	Scott Feldhacker
	Telephone:	(480) 371-1929
	Facsimile:	(480) 990-2732
	E-Mail:	sf@asenergycorp.com
	 	 
	With a copy to:
	 
	Blank Rome, LLP
	405 Lexington Avenue
	New York, New York 10174
	Attention:	Kristina Trauger, Esq.
	Telephone:	(212) 885-5339
	Facsimile:	(917) 332-3840
	E-Mail:	ktrauger@blankrome.com

  

    	 

    	 

    

 

(b)        Any
notice delivered or made by messenger, facsimile, electronic mail or United States mail will be deemed to be given on the date
of actual delivery as shown by messenger receipt, the sender’s facsimile machine confirmation or other verifiable electronic
receipt, or the registry or certification receipt.

 

(c)        Notwithstanding
Section 5.8(b), if either party receives from the other any message via electronic mail that purports to be a notice under
this Warrant but that contains information that is syntactically incorrect, garbled or otherwise unintelligible, the recipient
will promptly (and in any event within one Business Day) notify the sender. If the recipient so notifies the sender, then the notice
will not be deemed to be given until it is successfully delivered (including redelivery by electronic mail) pursuant to this Section
5.8.

 

5.9        Representations
and Warranties and Covenants of the Holder.    The Holder hereby represents and warrants to the Company as
of the date hereof that the Holder is obtaining the Securities solely for its own account and not with a view to or for sale
in connection with distribution. The Holder further represents and warrants to the Company as of the date hereof that (i) the
Holder has such knowledge and experience in financial and business matters that the Holder is capable of evaluating the
merits and risks of the proposed investment in the Warrant and Warrant Shares; (ii) the Holder understands that the Warrant
and the Warrant Shares may not be sold, transferred or otherwise disposed of by it without registration under the Securities
Act and any applicable state securities laws, or an exemption therefrom, and that in the absence of an effective registration
statement covering the Warrant and the Warrant Shares or an available exemption from registration, the Holder may be required
to hold the Warrant and the Warrant Shares indefinitely; and (iii) the Holder is an “accredited investor” within
the meaning of Regulation D promulgated under the Securities Act. The Holder acknowledges that the Company is issuing
the Warrant in reliance upon the representations and warranties of the Holder set forth in this Section 5.9.

 

5.10        Limitation
of Liability; Rights as a Shareholder. No provision hereof, in the absence of affirmative action by the Holder to purchase
Common Stock, and no mere enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the
Holder for the purchase price of any share of Common Stock or other security of the Company or as a shareholder of the Company,
whether such liability is asserted by the Company or by creditors of the Company. Except as otherwise provided herein, this Warrant
does not confer upon the Holder any right to vote or consent to or to receive notice as a member of the Company, in respect of
any matters whatsoever.

 

    	 

    	 

    

5.11        Exchange,
Loss, Destruction, etc. of Warrant. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, mutilation
or destruction of this Warrant, and in the case of any such loss, theft or destruction upon delivery of an appropriate affidavit
in such form as shall be reasonably satisfactory to the Company, or in the event of such mutilation upon surrender and cancellation
of this Warrant, the Company will make and deliver a new Warrant of like tenor, in lieu of such lost, stolen, destroyed or mutilated
Warrant. Any Warrant issued under the provisions of this Section 5.11 in lieu of any Warrant alleged to be lost, destroyed
or stolen, or in lieu of any mutilated Warrant, shall constitute an original contractual obligation on the part of the Company.
This Warrant shall be promptly canceled by the Company upon the surrender hereof in connection with any exchange or replacement.
The Company shall pay all taxes (other than income taxes) and all other expenses and charges payable in connection with the preparation,
execution and delivery of Warrants pursuant to this Section 5.11.

 

5.12        Counterparts.
This Warrant may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument

 

(Remainder
of Page Left Blank. Signature Page Follows.)

    	 

    	 

    

 

IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed on its behalf.

 

	 	American Standard Energy Corp.

 

	 	By:	/s/ Scott Feldhacker
	 	 	Scott Feldhacker, Chief Executive Officer

 

	 	Holder:
	 	 
	 	Macquarie
    Americas Corp.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

  

Signature Page to Warrant

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE OF WARRANT

 

Date: _______________, 20____

 

American Standard Energy Corp.

4800 N. Scottsdale Rd., Ste. 1400

Scottsdale, Arizona 85251

Attention: Scott Feldhacker

 

Ladies and Gentlemen:

 

1.        The undersigned holder
hereby elects to exercise Warrant No. 1A, as amended, issued to it by American Standard Energy Corp. (the “Company”),
dated effective as of September 21, 2011 (the “Warrant”), and to purchase thereunder [__________] shares
(the “Warrant Shares”) of the Company’s common stock, par value $0.001. Capitalized terms used herein
and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

2.        The Holder intends that payment of the
Exercise Price shall be made as:

 

	____________	a “Cash Exercise” with respect to _________________ 

Warrant Shares; and/or
	 	 
	____________	a “Cashless Exercise” with respect to _______________ 

Warrant Shares.

 

3.        In the event that
the Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the
Holder hereby represents and warrants that (i) this Exercise Notice was executed by the Holder on the date set forth below and
(ii) if applicable, the Closing Sale Price on the day immediately preceding the date of this Exercise Notice was $________.

 

4.        In the event that
the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder
shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

 

5.        The Company shall deliver to the Holder,
or its designee or agent as specified below, certificates evidencing the Warrant Shares issued and recorded in the Company’s
books and records in the name of the Holder and/or to such persons and in such denominations as specified below:

 

    	 

    	 

    

 

	Name	 	[Number of Shares]	 	Address
	[__________________] 	 	[__________________] 	 	[__________________________]
	 	 	 	 	[__________________________]

  

6.        The undersigned represents that the
representations set forth in Section 5.9 of the Warrant are true and correct as of the date of this Notice of Exercise.

                                                                   

           Very truly yours,

 

	 	Macquarie AMERICAS Corp.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:

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