Document:

Execution Version

 

THIS AMENDED AND RESTATED SECURED
CONVERTIBLE PROMISSORY NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED
UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR UNLESS AMERICAN STANDARD ENERGY CORP. AND ASEN 2, CORP.
SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF THIS NOTE UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

 

THIS NOTE WAS ISSUED WITH ORIGINAL
ISSUE DISCOUNT (“OID”). BEGINNING NO LATER THAN 10 DAYS AFTER THE FUNDING DATE, AN INVESTOR MAY, UPON REQUEST, OBTAIN
FROM THE COMPANY THE NOTE’S ISSUE PRICE, ISSUE DATE, AMOUNT OF OID AND YIELD TO MATURITY BY CONTACTING THE CHIEF FINANCIAL
OFFICER OF THE COMPANY, AT 4800 N. SCOTTSDALE ROAD, STE. 1400, SCOTTSDALE, ARIZONA 85251.

 

AMENDED AND RESTATED SECURED CONVERTIBLE
PROMISSORY NOTE

 

	Dated:  July 23, 2012	$25,000,000

 

For value received,
ASEN 2, CORP., a Delaware corporation (the “Company”), hereby promises to pay to PENTWATER EQUITY OPPORTUNITIES
MASTER FUND LTD., a Cayman Islands corporation (“Opportunities”) and PWCM MASTER FUND LTD., a Cayman Islands
corporation, (“PWCM”), each with an address at 227 West Monroe Street, Chicago IL 60606 (together with their
respective successors, representatives, and assigns, Opportunities together with PWCM, collectively, the “Investor”),
in accordance with each of Opportunities’ and PWCM’s respective Commitment Percentage (as defined in the Purchase Agreement
referred to below) and the terms hereinafter provided, the aggregate unpaid principal amount of the advances made by the Investor
to the Company under the Note and Warrant Purchase Agreement dated as of February 9, 2012 (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “Purchase Agreement”), by and among the Company,
American Standard Energy Corp., a Delaware corporation (the “Guarantor”) and the Investor, together with
interest and all other obligations outstanding hereunder.

 

All
payments under or pursuant to this Amended and Restated Secured Convertible Promissory Note (this “Note”) shall
be made either (i) in United States Dollars in immediately available funds to the Investor at the address of the Investor
first set forth above or at such other place as the Investor may designate from time to time in writing to the Company or by wire
transfer of funds to the Investor’s account, instructions for which are attached hereto as Exhibit A or (ii) pursuant
to Section 1.7 below. The outstanding principal balance of this Note (the “Principal
Amount”) shall be due and payable on the earlier of (i) February 9, 2015 and (ii) the date all obligations and indebtedness
hereunder are accelerated in accordance with Section 2.2 (the “Maturity Date”).

 

    	 

    	 

    

 

ARTICLE
I

TERMS OF NOTE

 

Section 1.1           Purchase
Agreement. This Note has been executed and delivered pursuant to the Purchase Agreement. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth for such terms in the Purchase Agreement.

 

Section 1.2           Interest.

 

(a)          Prior
to December 9, 2012, interest on the outstanding principal amount of this Note shall accrue, in arrears, at a rate of eleven percent
(11%) per annum and shall be payable as follows:

 

(i)          interest
at the rate of nine percent (9%) per annum shall be payable on the first Business Day of each month, commencing on March 1, 2012;
and

 

(ii)         interest
at the rate of two percent (2%) per annum shall be shall be capitalized and added to the then unpaid principal amount of this Note
monthly in arrears on the first Business Day of each month, commencing on March 1, 2012.

 

(b)          On
and after December 9, 2012, interest on the outstanding principal amount of this Note shall accrue, in arrears, at a rate of sixteen
percent (16%) per annum and shall be payable as follows:

 

(i)          interest
at the rate of eleven percent (11%) per annum shall be payable on the first Business Day of each month, commencing on December
1, 2012 and on the Maturity Date; and

 

(ii)         interest
at the rate of five percent (5%) per annum shall be capitalized and added to the then unpaid principal amount of this Note monthly
in arrears on the first Business Day of each month, commencing on December 1, 2012.

 

(c)          Upon
the occurrence and during the continuance of an Event of Default (as defined in Section 2.1), the Company will pay, in lieu of
the interest rate described in Section 1.2(a)(i) or Section 1.2(b)(i), as applicable, default rate interest to the Investor, payable
on demand, at a rate equal to the lesser of (i) the rate of interest described in Section 1.2(a)(i) or Section 1.2(b)(i), as applicable,
plus two percent (2%) and (ii) the maximum applicable legal rate per annum.

 

(d)          All
interest shall be computed on the basis of a 360-day year for the actual number of days elapsed in the period during which it accrues
on the outstanding principal balance of this Note and on all other amounts due under this Note.

 

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(e)          This
Note is expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration or otherwise, shall
the interest and other charges paid or agreed to be paid by the Company for the use, forbearance or detention of money hereunder
exceed the maximum rate permissible under applicable law which a court of competent jurisdiction shall, in a final determination,
deem applicable hereto. If, due to any circumstance whatsoever, fulfillment of any provision hereof, at the time performance of
such provision shall be due, shall exceed any such limit, then, the obligation to be so fulfilled shall be reduced to such lawful
limit, and, any interest or any other charges of any kind received which might be deemed to be interest under applicable law in
excess of the maximum lawful rate, then such excess shall be applied in accordance with the Purchase Agreement. The terms and provisions
of this subsection (e) shall control to the extent any other provision of this Note or any Transaction Document is inconsistent
herewith.

 

Section 1.3           Payment
of Principal; Prepayment. The outstanding principal balance plus all outstanding interest and all other amounts due and owing
hereunder shall be paid in full on the Maturity Date. Any amount of principal repaid hereunder may not be reborrowed. The Company
may prepay all or any portion of the principal amount of this Note in an amount equal to the sum of (i) 100% of the amount of such
principal prepayment, (ii) all outstanding interest on the prepaid portion and all other amounts due and owing hereunder, and (iii)
if such prepayment shall occur after December 31, 2012, an amount equal to 6% of the amount of such principal prepayment. Any prepayment
shall be made upon not less than five (5) Business Days prior written notice to the Investor.

 

Section 1.4           Security
Documents. The obligations of the Company hereunder are secured by a continuing security interest in the Collateral.

 

Section 1.5           Payment
on Non-Business Days. Whenever any payment to be made shall be due on a day which is not a Business Day, such payment shall
be due on the next succeeding Business Day and such next succeeding day shall be included in the calculation of the amount of accrued
interest payable on such date.

 

Section 1.6           Replacement.
Upon receipt of a duly executed written statement from the Investor with respect to the loss, theft or destruction of this Note
(or any replacement hereof) and a customary indemnity, or, in the case of a mutilation of this Note, upon surrender and cancellation
of such Note, the Company shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed or mutilated
Note.

 

Section 1.7           Conversion
Option.

 

(a)          At
any time after February 9, 2013, the Principal Amount and all accrued unpaid interest thereon (the “Conversion Amount”)
shall be convertible (in whole or in part), at the option of the Investor (the “Conversion”), into such number
of duly authorized, validly issued fully paid and non-assessable shares of Common Stock of the Guarantor (the “Conversion
Shares”) as is determined by dividing (x) an amount equal to that portion of Conversion Amount that the Investor elects
to convert by (y) $9.00 (the “Conversion Price”). The Investor shall deliver to the Guarantor a written notice
of conversion (the “Conversion Notice”), in the form attached hereto as Exhibit B, stating the portion of the
Conversion Amount to be converted and the date of such Conversion (the “Conversion Date”), which shall be no
earlier than the 15th Business Day following the date on which the Guarantor receives the Conversion Notice. With respect
to partial conversions of the Conversion Amount, the Investor and the Guarantor shall keep written records of the amount of the
Conversion Amount converted on of each Conversion Date.

 

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(b)          Not
later than three (3) Business Days after any Conversion Date, the Guarantor or its designated transfer agent, as applicable, shall
issue and deliver to the Investor a certificate or certificates representing the number of shares of Common Stock being acquired
upon the conversion of the Conversion Amount (the “Delivery Date”). Such certificate or certificates representing
the shares of Common Stock being acquired upon the related conversion will bear a restrictive legend as set forth in Section 3.7(d)
herein. If in the case of any Conversion Notice such certificate or certificates are not delivered to or as directed by the Investor
by the Delivery Date, the Investor shall be entitled by written notice to the Guarantor at any time on or before its receipt of
such certificate or certificates thereafter, to rescind such conversion, whereupon the Company and the Investor shall each be restored
to their respective positions immediately prior to the delivery of such notice of revocation.

 

(c)          Acknowledgment
of Registration. The Investor acknowledges that the Note and any shares of the Guarantor issued upon conversion of the Note
are “restricted securities” and have not been registered under the Securities Act or any applicable state securities
law.

 

(d)          Adjustments.
The Conversion Price and number of Conversion Shares issuable upon conversion of this Note are subject to adjustment from time
to time as set forth below.

 

(i)          Stock
Dividends and Splits. If the Guarantor, 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 Conversion 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 a Conversion Price is calculated
hereunder, then the calculation of such Conversion Price shall be adjusted appropriately to reflect such event.

 

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

 

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(iii)        Reorganization
and Reclassification; Merger or Asset Sale. In the event the Guarantor shall at any time or from time to time (i) effect a
reorganization, (ii) consolidate with or merge into any other person (other than a merger or reorganization involving only
a change in the state of incorporation of the Guarantor), or (iii) transfer all or substantially all of its properties or assets
to any other person under any plan or arrangement contemplating the dissolution of the Guarantor, then, in each such case, the
Investor of any Note shall thereafter be entitled to purchase pursuant to such Note (in lieu of the number of Conversion Shares
which such Investor would have been entitled to acquire immediately prior to such reorganization or reclassification, consolidation,
merger or asset sale or on the effective date of such dissolution) the shares of stock of any class or classes or other securities
or property to which the holder of such number of shares of Common Stock would have been entitled at the time of such reorganization
or reclassification, at an aggregate Conversion Price equal to that which would have been payable if such number of shares of Common
Stock had been purchased immediately prior to such reorganization or reclassification, consolidation, merger, asset sale or dissolution,
and appropriate provision (as determined by resolution of the Board of Directors of the Guarantor with the approval of the Investor)
shall be made with respect to the rights and interest thereafter of the Note (including adjustment provisions) shall thereafter
be applicable, as nearly as reasonably practicable, in relation to such stock or other securities or property.

 

(iv)         Calculations.
All calculations under this Section 1.7(d) shall be made by rounding to the nearest cent or the nearest 1/100th of a share, as
applicable.

 

(e)          Effect
of Conversion. Upon full conversion of this Note, the Company and Guarantor will be forever released from all of its obligations
and liabilities under this Note, other than its obligation to deliver Conversion Shares as provided herein.

 

Section 1.8           Mandatory
Prepayments. Promptly, but in any event not more than two (2) Business Days after the receipt by the Company of any cash proceeds
of any sale, assignment, lease, license, transfer or other disposition of any or all of the Oil and Gas Properties, the Company
shall prepay the Note in an aggregate amount equal to such cash proceeds, after deducting therefrom any attorneys’ fees,
accountants’ fees, investment banking fees and other customary fees and expenses, in each case incurred in connection with
such sale, assignment, lease, license, transfer or other disposition, and amounts required to be applied to the repayment of Indebtedness
with respect to such Oil and Gas Properties expressly permitted under the Purchase Agreement; provided, however,
that, if an Event of Default does not exist at the time of the receipt of such cash proceeds, such cash proceeds shall not be required
to be so applied to the extent that the Company has delivered an officer’s certificate to the Investor promptly following
the receipt of such cash proceeds stating that such cash proceeds shall be used to fund the acquisition of other oil and gas properties
or other property used or usable in the business of the Company within 180 days following the date of the receipt of such cash
proceeds.  Any such oil and gas properties or other property so acquired shall become part of the Collateral and the Company
shall execute and deliver to the Investor such agreements, documents and instruments in connection therewith as the Investor may
reasonably request. If all or any portion of such cash proceeds are not so used within 180 days after the date of the receipt of
such cash proceeds, such remaining portion shall be applied in accordance with the Purchase Agreement and this Note on the first
Business Day of the next calendar month immediately following such 180th day.

 

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ARTICLE
II

 EVENTS OF DEFAULT; REMEDIES

 

Section 2.1           Events
of Default. The occurrence of any of the following events shall be an “Event of Default” under this Note:

 

(a)          any
failure to make any payment of (i) the principal amount under this Note or the Purchase Agreement as and when the same shall be
due and payable (whether on the Maturity Date or by acceleration or otherwise), or (ii) interest or any other monetary obligation
under this Note or the Purchase Agreement by the 2nd Business Day after the same shall be due and payable (whether on
the Maturity Date or by acceleration or otherwise); or

 

(b)          the
Company or the Guarantor shall fail to observe, perform or comply with (i) any condition, covenant, undertaking or agreement contained
in Sections 3.1, 3.2, 3.3(f), 3.3(j), 3.8, 3.11, 3.12, 3.16, 3.22 and 3.24 of the Purchase Agreement, which failure is not cured
within thirty (30) days, or (ii) any other condition, covenant, undertaking or agreement contained in this Note or any Transaction
Document; or after the earlier of (A) the first day that the Company becomes aware of such failure or (B) the first day that the
Investor informs the Company of such failure.

 

(c)          any
representation or warranty made by the Company or the Guarantor in any Transaction Document shall prove to have been false or incorrect
in any material respect on the date as of which made or deemed made, except for representations and warranties that speak as of
a particular date, which shall be true and correct in all material respects as of such date (except that the materiality qualifiers
above shall not be applicable to any representations and warranties that already are qualified or modified by materiality or Material
Adverse Effect in the text thereof); or

 

(d)          the
Company or the Guarantor (i) shall fail to make any payment when due under the terms of any Indebtedness for borrowed money to
be paid by such Person and such failure shall continue beyond any period of grace provided with respect thereto, or (ii) shall
default in the observance or performance of any other agreement, term or condition contained in any agreement (related to Indebtedness
or otherwise), and the effect of such failure or default as set forth in clause (i) or (ii), is to cause, or permit the holder
or holders thereof, or any counterparty to an agreement relating to Indebtedness, to cause Indebtedness, or amounts due thereunder,
in an aggregate amount of $500,000 or more to become due prior to its stated date of maturity or the date such amount would otherwise
have been due notwithstanding such default; or

 

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(e)          
the Company or the Guarantor shall (i) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets, (ii) make a general assignment
for the benefit of its creditors, (iii) commence a voluntary case under the United States Bankruptcy Code (as now or hereafter
in effect) or under the comparable laws of any jurisdiction (foreign or domestic), (iv) file a petition seeking to take advantage
of any bankruptcy, insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights
generally, (v) acquiesce in writing to any petition filed against it in an involuntary case under United States Bankruptcy Code
(as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic), (vi) issue a notice of
bankruptcy or winding down of its operations or issue a press release regarding same, or (vii) take any action under the laws of
any jurisdiction (foreign or domestic) analogous to any of the foregoing; or

 

(f)          a
proceeding or case shall be commenced in respect of the Company or the Guarantor, without its application or consent, in any court
of competent jurisdiction, seeking (i) the liquidation, reorganization, moratorium, dissolution, winding up, or composition or
readjustment of its debts, (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of the Company or the
Guarantor, or of all or any substantial part of the Company or the Guarantor, or any of the Company’s or the Guarantor’s
assets or (iii) similar relief in respect of the Company and the Guarantor under any law providing for the relief of debtors, and
such proceeding or case described in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in effect, for a period
of ninety (90) days or any order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now
or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic) against the Company or the Guarantor,
or action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect
to the Company or the Guarantor, and shall continue undismissed, or unstayed and in effect for a period of sixty (60) days; or

 

(g)          a
judgment or judgments in the aggregate amount exceeding $500,000 is/are entered against the Company or the Guarantor and not dismissed
or discharged within thirty (30) days following the entry thereof; or

 

(h)          (i)
the Guarantor shall cease to own a majority of the Equity Interests of the Company, or (ii) Scott Feldhacker, Richard MacQueen
or Scott Mahoney shall cease to be actively involved in the management of the Company and a replacement reasonably acceptable to
the Investor is not identified to the Investor within ninety (90) days thereafter and is not employed by the Company within an
additional thirty (30) days after such identification; or

 

(i)          a
Material Adverse Effect occurs; or

 

(j)          the
Guarantor and the Company, taken as a whole, shall cease to actively conduct its business operations for a period of seven (7)
consecutive Business Days; or

 

(k)          any
material portion of the Collateral is seized by any governmental authority; or

 

(l)          Liens,
levies, attachments, executions or assessments (or any of them) are issued with respect to, attaches to or filed or recorded with
respect to or otherwise imposed upon all or any part of the Collateral (other than with respect to Collateral, Permitted Encumbrances)
and such Lien, levy or assessment is not stayed, vacated, paid or discharged within thirty (30) days; or

 

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(m)          any
order, judgment or decree is entered against the Company or the Guarantor decreeing the dissolution or split up of such Person,
or, except as permitted in the Purchase Agreement, the Company or the Guarantor voluntarily commences a liquidation, dissolution
or ceases to operate its business; or

 

(n)          any
of the Transaction Documents or any of the Securities for any reason ceases to be in full force and effect (except pursuant to
the express terms thereof or due solely to any act or omission by the Investor) or is declared to be null and void, or the Company
or the Guarantor denies that it has any further liability under any Transaction Documents or any of the Securities to which it
is party, or gives notice to such effect; or

 

(o)          the
Investor does not have or ceases to have a valid and perfected first priority security interest in the Collateral (subject only
to Permitted Encumbrances); or

 

(p)          the
loss, suspension or revocation of, or failure to renew, any license or permit now held or hereafter acquired by the Company, if
such license or permit is not obtained or reinstated within thirty (30) days, unless such loss, suspension, revocation or failure
to renew could not reasonably be expected to have a Material Adverse Effect; or

 

(q)          there
is filed against the Company, the Guarantor or any of their respective officers or directors any civil or criminal action, suit
or proceeding under any federal or state racketeering statute (including, without limitation, the Racketeer Influenced and Corrupt
Organization Act of 1970), or any civil or criminal action, suit or proceeding under any other applicable law that could result
in the confiscation or forfeiture of any material portion of the Collateral or other assets of such Person, and such action, suit
or proceeding is not dismissed within one hundred twenty (120) days.

 

Section 2.2           Remedies
Upon An Event of Default. If an Event of Default shall have occurred and shall be continuing, the Investor may at any time
at its option (a) declare the entire unpaid principal balance of this Note, together with all interest accrued hereon, plus all
fees and expenses, due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand,
protest, or notice, all of which are hereby expressly unconditionally and irrevocably waived by the Company; provided, however,
that upon the occurrence of an Event of Default described in Section 2.1(e) or Section 2.1(f), the outstanding principal balance
and accrued interest hereunder, plus all fees and expenses, shall be immediately and automatically due and payable, and/or (b) exercise
or otherwise enforce any one or more of the Investor’s rights, powers, privileges, remedies and interests under this Note,
the Purchase Agreement, the Security Agreement, the Guaranty, the Deeds of Trust or other Transaction Document or applicable law.
No course of delay on the part of the Investor shall operate as a waiver thereof or otherwise prejudice the right of the Investor.
No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now or hereafter available at law, in equity,
by statute or otherwise. Upon the occurrence and during the continuance of an Event of Default, all amounts payable under this
Note and the other Transaction Documents shall bear interest at the default rate set forth in Section 1.2(b).

 

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ARTICLE
III

 MISCELLANEOUS

 

Section 3.1           Notices.
Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be effective (a) upon hand delivery, telecopy or facsimile at the address or number designated in the Purchase Agreement
(if delivered on a Business Day during normal business hours where such notice is to be received), or the first Business Day following
such delivery (if delivered other than on a Business Day during normal business hours where such notice is to be received) or (b)
on the second Business Day following the date of mailing by express courier service, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur.

 

Section 3.2           Governing
Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO ANY OF THE CONFLICTS OF LAW PRINCIPLES WHICH WOULD RESULT IN THE APPLICATION OF THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION.
THIS NOTE SHALL NOT BE INTERPRETED OR CONSTRUED WITH ANY PRESUMPTION AGAINST THE PARTY CAUSING THIS NOTE TO BE DRAFTED.

 

Section 3.3           Headings.
Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute
a part of this Note for any other purpose.

 

Section 3.4           Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note, at law or in equity (including, without limitation, a decree of
specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the
provisions giving rise to such remedy and nothing herein shall limit the Investor’s right to pursue actual damages for any
failure by the Company to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments
and the like (and the computation thereof) shall be the amounts to be received by the Investor 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 and material harm to the Investor and that the remedy at law
for any such breach may be inadequate. Therefore the Company agrees that, in the event of any such breach or threatened breach,
the Investor shall be entitled, in addition to all other available rights and remedies, at law or in equity, to seek and obtain
such equitable relief, including but not limited to an injunction restraining any such breach or threatened breach, without the
necessity of showing economic loss and without any bond or other security being required.

 

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Section 3.5           Enforcement
Expenses. All invoiced costs and expenses including reasonable attorneys’ fees (including the allocated costs of in house
counsel) and other disbursements incurred by Investor, (a) in all efforts made to enforce payment or effect collection owing under
this Note, or (b) in connection with the entering into, modification, amendment, administration and enforcement of this Note or
any consents or waivers hereunder and all related agreements, documents and instruments, or (c) in instituting, maintaining, preserving,
enforcing and foreclosing on Investor’s security interest in or Lien on any of the Collateral, or maintaining, preserving
or enforcing any of Investor’s rights hereunder and under all related agreements, documents and instruments, whether through
judicial proceedings or otherwise, or (d) in defending or prosecuting any actions or proceedings arising out of or relating to
Investor’s transactions with the Company or the Guarantor; provided, that advisor fees and investment banker fees
shall be payable (without duplication of those advisor fees and investment banker fees payable pursuant to Section 7.1 of the Purchase
Agreement) in connection with the entering into this Note and shall not exceed $90,000 in the aggregate.

 

Section 3.6           Amendments.
This Note may not be modified or amended in any manner except in writing executed by the Company and the Investor.

 

Section 3.7           Compliance
with Securities Laws.

 

(a)          The
Investor acknowledges that this Note is being acquired solely for the Investor’s own account and not as a nominee for any
other party, and for investment, and that the Investor shall not offer, sell or otherwise dispose of this Note except in accordance
with applicable law.

 

(b)          The
Investor confirms and acknowledges that it has not paid and will not pay, give or receive any commission or other remuneration
directly or indirectly in connection with any Conversion made pursuant to this Note.

 

(c)          The
Investor is an “accredited investor” (as defined in Rule 501 of Regulation D under the Securities Act), and the Investor
has such experience in business and financial matters that it is capable of evaluating the merits and risks of an investment in
this Note. The Investor is not required to be registered as a broker-dealer under Section 15 of the Exchange Act and it is not
a broker-dealer. The Investor acknowledges that an investment in this Note is speculative and involves a high degree of risk.

 

(d)          Legend
on Conversion Shares. There shall appear on the certificate or certificates evidencing any shares issued pursuant hereto a
legend to the following effect:

 

THIS SECURITY HAS NOT BEEN REGISTERED
WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION OR WITH THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED, ASSIGNED
OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION PURSUANT TO SECTION 4(2) AND/OR REGULATION D OF THE SECURITIES ACT, OR IN A TRANSACTION NOT SUBJECT
TO THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
AMERICAN STANDARD ENERGY CORP. AND ASEN 2, CORP. MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO AMERICAN
STANDARD ENERGY CORP., AND ASEN 2, CORP. OR OTHER SUCH INFORMATION AS THEY MAY REASONABLY REQUIRE, TO CONFIRM THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE LAWS.

 

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Section 3.8           Consent
to Jurisdiction.

 

(a)          Subject
to the last sentence of this Section 3.8, any judicial proceeding brought by or against any party with respect to this Note, the
other Transaction Documents or any related agreement may be brought in any court of competent jurisdiction in the State of New
York, and, by execution and delivery of this Note, each party to this Note accepts for itself and in connection with its properties,
generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Note. Each party to this Note waives personal service of any and all process
upon it and consents that all such service of process may be made by registered mail (return receipt requested) at its address
set forth in Section 3.1 and service so made shall be deemed completed five (5) days after the same shall have been so deposited
in the mails of the United States of America. Nothing herein shall affect the right to serve process in any manner permitted by
law or shall limit the right of the Investor to bring proceedings against any party to this Note in the courts of any other jurisdiction.
Each party to this Note hereby waives any objection to jurisdiction and venue of any action instituted hereunder and shall not
assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Each party to this Note hereby waives
the right to remove any judicial proceeding brought against it in any state court to any federal court. Any judicial proceeding
by any party to this Note involving, directly or indirectly, any matter or claim in any way arising out of, related to or connected
with this Note or any related agreement, shall be brought only in a federal or state court located in the County of New York, State
of New York.

 

Section 3.9           Successors
and Assigns. This Note shall be binding upon and inure to the benefit of the parties and their successors and assigns. After
the Closing Date, the assignment by a party to this Note of any rights hereunder shall not affect the obligations of such party
under this Note. The Investor may assign the Note and its rights under this Note and any other rights hereto and thereto with the
prior consent of the Company; provided that the consent of the Company shall not be required if (a) an Event of Default has occurred
and is continuing or (b) the assignee in connection with such proposed assignment is an Affiliate of the Investor. The Company
may not assign its rights and obligations under this Note or any other Transaction Document without the prior written consent of
the Investor, which consent may be withheld by the Investor in its sole discretion.

 

Section 3.10         Binding
Effect. This Note shall be binding upon, inure to the benefit of and be enforceable by the Company, the Investor and their
respective successors and permitted assigns. The Company shall not delegate or transfer this Note or any obligations or undertakings
contained in this Note.

 

    	11

    	 

    

 

Section 3.11         Failure
or Indulgence Not Waiver. No failure or delay on the part of the Investor in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege.

 

Section 3.12         No
Stockholder Rights. Nothing contained in this Note shall be construed as conferring upon the Investor the right to vote or
to receive dividends or to consent or receive notice as a stockholder in respect of any meeting of shareholders or any rights whatsoever
as a stockholder of the Guarantor, unless and to the extent converted in accordance with the terms hereof.

 

Section 3.13         Company
Waivers; Dispute Resolution.

 

(a)          Except
as otherwise specifically provided herein, the Company and all others that may become liable for all or any part of the obligations
evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all other demands and notices in connection
with the delivery, acceptance, performance and enforcement of this Note, and do hereby consent to any number of renewals of extensions
of the time or payment hereof and agree that any such renewals or extensions may be made without notice to any such Persons and
without affecting their liability herein and do further consent to the release of any Person liable hereon, all without affecting
the liability of the other Persons liable for the payment of this Note.

 

(b)          No
delay or omission on the part of the Investor in exercising its rights under this Note, or course of conduct relating hereto, shall
operate as a waiver of such rights or any other right of the Investor, nor shall any waiver by the Investor of any such right or
rights on any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

Section 3.14         Amendment.
This Note is executed and delivered by the Company and acknowledged and agreed to upon by the Guarantor to amend, increase, renew,
restate, and further evidence the indebtedness evidenced by that certain Secured Convertible Promissory Note, dated as of February
9, 2012, executed by the Company and acknowledged and agreed to upon by the Guarantor and payable to the order of the Investor,
in the original principal sum of $20,000,000.00 (the “Original Note”). This Note shall constitute a renewal,
amendment, and restatement of the Original Note. This Note does not extinguish the indebtedness, liabilities, or other obligations
of the Company arising under the Original Note, and does not constitute a novation or payment of any part of the indebtedness,
liabilities or other obligations of the Company evidenced by the Original Note. The Company hereby agrees that the execution of
this Note shall in no manner vitiate, impair or affect the liens and security interests created and evidenced by the Transaction
Documents in effect as of the date of the Original Note or created prior to the date hereof, and such liens and security interests
shall not be and are not in any manner released or waived solely by execution of this Note.

 

[Signature appears on following page]

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the Company has
caused this Note to be duly executed by its duly authorized officer as of the date first above indicated.

 

	ASEN 2, CORP.
	 
	By:	/s/ Scott Feldhacker
	 	Name: Scott Feldhacker
	 	Title:  Chief Executive Officer

 

Acknowledged and agreed

as of the date first set forth above,

only with respect to Section 1.7:

 

AMERICAN STANDARD ENERGY CORP.,

a Delaware corporation

 

	By:	/s/ Scott Feldhacker
	 	Name: Scott Feldhacker
	 	Title:  Chief Executive Officer

 

[Signature Page
To Amended And Restated Promissory Note]

 

    	 

    	 

    

 

EXHIBIT A

 

WIRE INSTRUCTIONS

 

Wire instructions for Pentwater Equity Opportunities Master
Fund Ltd.

 

	Account Number	 	 
	 	 	 
	Account Name	 	 
	 	 	 
	Receiving Bank Name:	 	 
	 	 	 
	Receiving Bank ABA Number:	 	 
	 	 	 
	Attention:	 	 
	 	 	 
	Reference:	 	 

 

Wire instructions for PWCM Master Fund Ltd.

 

	Account Number	 	 
	 	 	 
	Account Name	 	 
	 	 	 
	Receiving Bank Name:	 	 
	 	 	 
	Receiving Bank ABA Number:	 	 
	 	 	 
	Attention:	 	 
	 	 	 
	Reference:	 	 

 

    	 

    	 

    

 

EXHIBIT B

 

CONVERSION NOTICE

 

TO: AMERICAN STANDARD ENERGY CORP.

 

The undersigned hereby irrevocably elects to exercise its rights
to convert $______________ of the amount due under the attached Note into _______________ shares of the Common Stock, par value
$.001 per share, of American Standard Energy Corp., a Delaware corporation in accordance with the provisions of Section 1.7 of
the Note. Please issue a certificate in the name of the undersigned for the Common Stock in accordance with the instructions given
below. In the event that this conversion is exercised with respect to less than all principal outstanding under the Note, please
also issue a Note of like tenor for the remaining outstanding principal balance.

 

The undersigned represents that the representations set forth
in Section 2.3 of the Purchase Agreement are true and correct as of the date of this Conversion Notice.

  

	Investor:
	 
	By:	 	 
	Name:
	Title:

 

Dated: ____________________

 

Instructions for registration of shares:

 

Name to be registered: _____________________________

 

Tax Identification Number of Investor_____________________

 

Address of InvestorExecution Version

 

MODIFICATION AGREEMENT

 

This Modification Agreement,
dated as of July 23, 2012 (the “Agreement”), sets forth the agreement of American Standard Energy Corp., a Delaware
corporation (the “Company”), and the parties identified as “Holders” on the signature page hereto
(the “Holders”). Defined terms not otherwise defined herein shall have the meanings set forth in the Warrants,
as applicable (as defined below).

 

WHEREAS, pursuant to
that certain Modification Agreement, dated as of February 9, 2012 between the Company and the parties identified as “Holders”
on the signature page thereto (the “Modification Agreement”), the Holders purchased from the Company the following
Series C warrants issued on February 9, 2012 (i) Warrant No. 001, for the sale of 400,001 shares of Common Stock at a per share
exercise price of $3.00 to PWCM Master Fund Ltd., (ii) Warrant No. 002, for the sale of 1,275,000 shares of Common Stock at a per
share exercise price of $3.00 to Pentwater Equity Opportunities Master Fund Ltd., (iii) Warrant No. 003, for the sale of 550,000
shares of Common Stock at a per share exercise price of $3.00 to Oceana Master Fund Ltd. and (iv) Warrant No. 004, for the sale
of 274,999 shares of Common Stock at a per share exercise price of $3.00 to LMA SPC for and on behalf of the MAP 98 Segregated
Portfolio (collectively, the “Modification Warrants”).

 

WHEREAS, pursuant to
that certain Note and Warrant Purchase Agreement, dated as of February 9, 2012 between ASEN 2, Corp., a Delaware corporation, Pentwater
Equity Opportunities Master Fund Ltd., a Cayman Islands corporation and PWCM Master Fund Ltd., a Cayman Islands corporation (the
“Purchase Agreement”), the Holders purchased from the Company the following warrants issued on February 9, 2012
(i) Warrant No. 001, for the sale of 1,500,000 shares of Common Stock at a per share exercise price of $2.50 to Pentwater Equity
Opportunities Master Fund Ltd. and (ii) Warrant No. 002, for the sale of 1,833,333 shares of Common Stock at a per share exercise
price of $2.50 to PWCM Master Fund Ltd. (collectively, the “NPA Warrants”, and together with the Modification
Warrants, the “Warrants”).

 

WHEREAS, the Company
and Holders desire to amend certain terms of the Warrants as described below.

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and Holders hereby agree
as follows:

 

1.          Modification
of Modification Warrants. The exercise price set forth in each of the Modification
Warrants shall be amended from $3.00 to $2.25. Furthermore, the expiration date of each of the Modification Warrants shall be amended
from February 9, 2017 to June 30, 2019.

 

2.          Modification
of NPA Warrants. The exercise price set forth in each of the NPA Warrants shall be
amended from $2.50 to $2.25. Furthermore, the expiration date of each of the NPA Warrants shall be amended from February 9, 2017
to June 30, 2019.

 

    	 

    	 

    

  

3.          No
Waiver. Except as specifically provided in this Agreement, there are no other material
amendments, revisions or other modifications to the Warrants. All other terms and conditions of the Warrants are hereby incorporated
by reference and shall remain in full force and effect and apply fully to this Agreement.

 

4.          Representations.

 

4.1           Each
Holder represents that the representations set forth in Section 6 of the Modification Agreement and Section 2.3 of the Purchase
Agreement are true and correct as of the date hereof.

 

4.2           The
Company represents that the representations set forth in Section 7 of the Modification Agreement and Section 2.2 of the Purchase
Agreement are true and correct as of the date hereof.

 

5.          Miscellaneous.

 

5.1           All
communications hereunder will be in writing and, except as otherwise provided, will be delivered at, or mailed by certified mail,
return receipt requested, or telegraphed to, the following addresses: if to the Holders to: Pentwater Capital Management LP, Attention:
Neal Nenadovic, 227 W. Monroe Street, Suite 4000, Chicago, IL 60606, facsimile (312) 589-6499; if a copy to the Company to: American
Standard Energy Corp., 4800 North Scottsdale Road, Suite 1400, Scottsdale, Arizona 85281, Attention: Chief Executive Officer, with
a copy to Blank Rome, LLP, Attention: Brad Shiffman, Esq., 405 Lexington Avenue, New York, New York 10174.

 

5.2           This
Agreement shall be deemed to have been made and delivered in New York City and shall be governed as to validity, interpretation,
construction, effect and in all other respects by the internal laws of the State of New York. Each Holder and the Company (1) agree
that any legal suit, action or proceeding arising out of or relating to this Agreement, shall be instituted exclusively in New
York State Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, unless
such court shall have refused such jurisdiction, (2) waive any objection which each Holder or the Company may have now or hereafter
to the venue of any such suit, action or proceeding, and (3) irrevocably consent to the jurisdiction of the New York State Supreme
Court, County of New York, and the United States District Court for the Southern District of New York in any such suit, action
or proceeding. Each Holder and the Company further agree to accept and acknowledge service of any and all process which may be
served in any such suit, action or proceeding in the New York State Supreme Court, County of New York, or in the United States
District Court for the Southern District of New York and agrees that service of process upon each Holder or the Company, as the
case may be, mailed by certified mail to the Holder’s address or the Company’s address, as the case may be, set forth
on the signature page to this Agreement shall be deemed in every respect effective service of process upon such Holder or the Company,
as the case may be, in any such suit, action or proceeding.

 

    	-2-

    	 

    

  

5.3           Each
party hereto agrees to use its reasonable best efforts to take any action which may be necessary or appropriate or reasonably requested
by the other party hereto in order to effectuate or implement the provisions of this Agreement.

 

5.4           The
rights and obligations of the parties under this Agreement shall bind and inure to the benefit of the parties and their respective
successors and assigns.

 

5.5           This
Agreement may be executed in separate counterparts, all of which shall constitute one agreement.

 

5.6           All
notices required or permitted to be given hereunder shall be personally delivered, sent by courier service or mailed by certified
or registered mail, postage prepaid, to the respective parties at the addresses set forth herein and shall be deemed given upon
receipt.

 

[Signature Page Follows]

 

    	-3-

    	 

    

  

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the date first above written.

 

	HOLDERS:
	 
	PWCM MASTER FUND LTD.
	 
	By:	/s/ Matt Hall
	 	Name: Matt Hall
	 	Title: Authorized Signatory
	 
	PENTWATER EQUITY OPPORTUNITIES MASTER FUND LTD.
	 
	By:	/s/ Matt Hall
	 	Name: Matt Hall
	 	Title: Authorized Signatory
	 
	OCEANA MASTER FUND LTD.
	 
	By:	/s/ Matt Hall
	 	Name: Matt Hall
	 	Title: Authorized Signatory
	 
	LMA SPC FOR AND ON BEHALF OF THE MAP 98 SEGREGATED PORTFOLIO
	 
	By:	/s/ Matt Hall
	 	Name: Matt Hall
	 	Title: Authorized Signatory

 

[Signature
Page To Modification Agreement]

 

    	 

    	 

    

 

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

 

[Signature
Page To Modification Agreement]

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