Document:

CERTIFICATE OF DESIGNATION

of

SERIES A CUMULATIVE CONVERTIBLE PREFERRED
STOCK

of

AMERICAN STANDARD ENERGY CORP.

 

Pursuant to Section 151(g) of the Delaware
General Corporation Law

 

The undersigned does hereby certify that
the Board of Directors (the “Board of Directors”) of American Standard Energy Corp, a Delaware corporation (hereinafter
called the “Corporation”), pursuant to the provisions of Sections 103 and 151(g) of the Delaware General Corporation
Law, hereby makes this Certificate of Designations and hereby states and certifies that pursuant to the authority expressly vested
in the Board of Directors by the Certificate of Incorporation of the Corporation (as such may be amended, modified or restated
from time to time, the “Certificate of Incorporation”), the Board of Directors duly adopted the following resolutions:

 

RESOLVED, that, pursuant to Article Fourth
of the Certificate of Incorporation (which authorizes 1,000,000 shares of Preferred Stock, par value $0.001 per share), and the
authority conferred on the Board of Directors, the Board of Directors hereby fixes the designation, powers, preferences and rights,
and the qualifications, limitations and restrictions, of a series of preferred stock as follows:

 

1.          Number
and Designation. Thirty Eight Thousand One Hundred Fifty (38,150) shares of the preferred stock of the Corporation shall be
designated as “Series A Cumulative Convertible Preferred Stock” (the “Preferred Stock”).

 

2.          Certain
Definitions.  As used in this Certificate, the following terms shall have the meanings defined in this Section 2.
Any capitalized term not otherwise defined herein shall have the meaning set forth in the Certificate of Incorporation, unless
the context otherwise requires:

 

“Annual Rate” shall mean
a dividend rate per share equal to 7.5%.

 

“Allowable Conversion Date”
shall have the meaning assigned to such term in Section 7(a) hereof.

 

“Average VWAP” means
the average of the VWAP for each Trading Day in the relevant period.

 

“Board of Directors”
shall have the meaning assigned to such term in the preamble to this Certificate, and shall include any duly authorized committee
thereof.

 

    	 

    	 

    

 

“Business Day” means
any day other than a Saturday, Sunday or a day on which state or U.S. federally chartered banking institutions in New York, New
York are not required to be open.

 

“Capital Stock” of any
Person means any and all shares, interests, participations or other equivalents however designated of corporate stock or other
equity participations, including partnership interests, whether general or limited, of such Person and any rights (other than debt
securities convertible or exchangeable into an equity interest), warrants or options to acquire an equity interest in such Person.

 

“Certificate” means this
Certificate of Designation.

 

“Certificate of Incorporation”
shall have the meaning assigned to such term in the preamble to this Certificate.

 

“Closing Sale Price”
of the shares of Common Stock or other Capital Stock or similar equity interests on any date means the closing sale price per share
(or, if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the
average of the average closing bid and the average closing ask prices) on such date as reported on the Principal Exchange. In the
absence of such quotations, the Board of Directors shall be entitled to determine the “Closing Sale Price” in good
faith on the basis it considers appropriate, which determination shall be conclusive. The “Closing Sale Price” shall
be determined without reference to any extended or after hours trading.

 

“Commission” means the
United States Securities and Exchange Commission.

 

“Common Stock” means
shares of the common stock, par value $0.001 per share, of the Corporation and any stock of any other class of the Corporation
that has no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Corporation and that is not subject to redemption by the Corporation. Subject to the provisions
of Section 10, however, shares issuable on conversion of the Preferred Stock shall include only shares of the common stock,
par value $0.001 per share, of the Corporation or shares of any class or classes resulting from any reclassification or reclassifications
thereof and that have no preference in respect of dividends or of amounts payable in the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Corporation and which are not subject to redemption by the Corporation; provided
that if at any time there shall be more than one such resulting class, the shares of each such class then so issuable on conversion
shall be substantially in the proportion that the total number of shares of such class resulting from all such reclassifications
bears to the total number of shares of all such classes resulting from all such reclassifications.

 

“Conversion Agent” shall
have the meaning assigned to such term in Section 15(a) hereof.

 

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“Conversion Date” shall
have the meaning assigned to such term in Section 7(b) hereof.

 

“Conversion Price” per
share of Preferred Stock means, on any date, the quotient of the Liquidation Preference divided by the Conversion Rate in effect
on such date.

 

“Conversion Rate” means
333.333 shares of Common Stock per one share of Preferred Stock, subject to adjustment pursuant to Section 9 hereof.

 

“Corporation” shall have
the meaning assigned to such term in the preamble to this Certificate, and shall include any successor to such Corporation.

 

“Dividend Payment Date”
means June 30 and December 31 of each year, commencing December 31, 2012, or if any such date is not a Business Day, on the immediately
preceeding Business Day.

 

“Dividend Period” shall
mean, with respect to Preferred Stock, the period beginning on, and including, a Dividend Payment Date and ending on, and excluding,
the immediately succeeding Dividend Payment Date and, with respect to Parity Stock, shall have a meaning correlative thereto.

 

“Dividend Reference Period”
means (i) in the case of a payment of dividends pursuant to Section 4, the 10 consecutive Trading Days immediately preceding
the applicable Dividend Payment Date; and (ii) in the case of a payment of dividends upon conversion at the option of the Corporation
pursuant to Section 8, the 10 consecutive Trading Days immediately preceding the Mandatory Conversion Date. 

 

“Effective Date” shall
have the meaning assigned to such term in Section 7(a) hereof.

 

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

 

“Fair Market Value” shall
mean the amount that a willing buyer would pay a willing seller in an arm’s-length transaction.

 

“Junior Stock” shall
have the meaning assigned to such term in Section 3(a) hereof.

 

“Liquidation Preference”
shall have the meaning assigned to such term in Section 6(a) hereof.

 

“Mandatory Conversion Date”
shall have the meaning assigned to such term in Section 8(b) hereof.

 

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“Officer” means the Chairman
of the Board, the Chief Executive Officer, Chief Financial Officer, a Vice Chairman of the Board, the President, any Vice President,
the Treasurer, any Assistant Treasurer, the Controller, any Assistant Controller, the Secretary or any Assistant Secretary of the
Corporation.

 

“Original Issue Date”
means the first date on which any shares of Preferred Stock are issued and Outstanding.

 

“Outstanding” means,
when used with respect to Preferred Stock, as of any date of determination, all shares of Preferred Stock outstanding as of such
date; provided, however, that, in determining whether the holders of Preferred Stock have given any request, demand,
authorization, direction, notice, consent or waiver or taken any other action hereunder, Preferred Stock owned by the Corporation
or its Subsidiaries shall be deemed not to be “Outstanding”, except that, in determining whether the Registrar shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent, waiver or other action, only
Preferred Stock which the Registrar has actual knowledge of being so owned shall be deemed not to be “Outstanding”.

 

“Parity Stock” shall
have the meaning assigned to such term in Section 3(b) hereof.

 

“Paying Agent” shall
have the meaning assigned to such term in Section 15(a) hereof.

 

“Person” means an individual,
a corporation, a partnership, a limited liability company, limited partnership, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Preferred Stock” shall
have the meaning assigned to such term in Section 1 hereof.

 

“Principal Exchange”
shall mean the means whichever of the New York Stock Exchange, the NYSE Amex, the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market, the OTC Bulletin Board or the OTC Markets on which the Common Stock is listed or quoted for
trading on the date in question.

 

“Record Date” means (i)
with respect to the dividends payable on June 30 and December 31 of each year, the June 15 and December 15 immediately preceding
such date, respectively, or such other record date, not more than 60 days and not less than 10 days preceding the applicable Dividend
Payment Date, as shall be fixed by the Board of Directors and (ii) solely for the purpose of adjustments to the Conversion Rate
pursuant to Section 9 with respect to any dividend, distribution or other transaction or event in which the holders of Common
Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security)
is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders
entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors or by statute,
contract or otherwise).

 

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“Registrar” shall have
the meaning assigned to such term in Section 13 hereof.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Senior Stock” shall
have the meaning assigned to such term in Section 3(c) hereof.

 

“Subsidiary” means (a)
a corporation, a majority of whose Capital Stock with voting power, under ordinary circumstances, to elect directors is, at the
date of determination, directly or indirectly owned by the Corporation, by one or more Subsidiaries of the Corporation or by the
Corporation and one or more Subsidiaries of the Corporation, (b) a partnership in which the Corporation or a Subsidiary of the
Corporation holds a majority interest in the equity capital or profits of such partnership, or (c) any other Person (other than
a corporation) in which the Corporation, a Subsidiary of the Corporation or the Corporation and one or more Subsidiaries of the
Corporation, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power
to elect or direct the election of a majority of the directors or other governing body of such Person.

 

“Trading Day” means a
day during which trading in securities generally occurs on the Principal Exchange or, if the Common Stock is not so traded on a
Principal Exchange, on the New York Stock Exchange.

 

“Transfer Agent” shall
have the meaning assigned to such term in Section 13 hereof.

 

“VWAP” means, on any
Trading Day, the volume weighted average price per share of Common Stock as displayed on Bloomberg (or any successor service) page
ASEN<Equity> VWAP in respect of the period from 9:30 a.m. to 4:00 p.m., New York City time, on such Trading Day or, if such
price is not available, the market value per share of Common Stock on such Trading Day as determined by a nationally recognized
independent investment banking firm retained by the Corporation for such purpose.

 

3.          Rank.
The Preferred Stock shall, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank:

 

(a)          senior
to the Common Stock and any other class or series of Capital Stock of the Corporation, the terms of which do not expressly provide
that such class or series ranks senior to or on a parity with the Preferred Stock as to dividend rights and rights on liquidation,
winding-up and dissolution of the Corporation (the “Junior Stock”);

 

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(b)          on
a parity with any other class or series of Capital Stock of the Corporation established after the date hereof, the terms of which
expressly provide that such class or series ranks on a parity with the Preferred Stock as to dividend rights and rights on liquidation,
winding-up and dissolution of the Corporation (the “Parity Stock”); and

 

(c)          junior
to each class or series of Capital Stock of the Corporation (other than Common Stock) established after the date hereof, the terms
of which expressly provide that such class or series ranks senior to the Preferred Stock as to dividend rights and rights on liquidation,
winding-up and dissolution of the Corporation (the “Senior Stock”).

 

4.          Dividends.
(a) Holders of Preferred Stock shall be entitled to receive, when, as and if declared by the Board of Directors, out of funds legally
available for the payment of dividends, cumulative dividends on each Outstanding share of Preferred Stock at the Annual Rate, calculated
as set forth below. Such dividends shall be payable in arrears in equal amounts semi-annually on each Dividend Payment Date, if
and only if such dividends are declared by the Board of Directors, beginning December 31, 2012, in preference to and in priority
over dividends on any Junior Stock but subject to the rights of any holders of Senior Stock or Parity Stock.

 

(b)          Dividends
on each share of Preferred Stock shall be cumulative from the Original Issue Date or the last Dividend Payment Date for which accumulated
dividends were paid, whichever is later, to the extent unpaid. If declared by the Board of Directors, each such dividend shall
be payable to the holders of record of shares of the Preferred Stock, as they appear on the Corporation’s stock register
at the close of business on a Record Date. Accumulated and unpaid dividends for any past Dividend Periods may be declared and paid
at any time, without reference to any Dividend Payment Date, to holders of record on such date, not more than 60 nor less than
10 days preceding the payment date thereof, as may be fixed by the Board of Directors.

 

(c)          Dividends
not paid or paid in an amount less than the total amount of such dividends at the time accumulated and payable on all outstanding
shares of Preferred Stock, including fractions, shall be allocated pro rata on a share-by-share basis among all such shares at
the time outstanding. The amount of accumulated dividends on any shares of Preferred Stock, or fraction thereof, at any date, shall
be the amount of any dividends payable thereon to and including such date, whether or not declared, which have not been paid in
accordance with Section 5, with additional dividends accumulating on any such accumulated but unpaid dividends until paid
at the Annual Rate, compounded on each Dividend Payment Date until such dividends are paid.

 

(d)          The
amount of dividends payable for each full Dividend Period for the Preferred Stock shall be computed by dividing the Annual Rate
by two. The amount of dividends payable on the Preferred Stock for the initial Dividend Period, or for any other period shorter
or longer than a full Dividend Period (or amounts determined with respect thereto), shall be computed on the basis of a 360-day
year consisting of twelve 30-day months. Accumulated and unpaid dividends will not bear interest and holders of Preferred Stock
shall not be entitled to any dividends, whether payable in cash, property or stock, in excess of cumulative dividends, as herein
provided, on the Preferred Stock.

 

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(e)          No
dividend shall be declared or paid, or funds set apart for the payment of any dividend or other distribution, whether in cash,
obligations or shares of Capital Stock of the Corporation or other property, directly or indirectly, upon any shares of Junior
Stock or Parity Stock unless all accumulated and unpaid dividends through the most recent Dividend Payment Date (whether or not
there are funds of the Corporation legally available for the payment of dividends) on the shares of Preferred Stock and any Parity
Stock for all preceding Dividend Periods have been paid in full or set apart for payment. When dividends are not paid in full,
as aforesaid, upon the shares of Preferred Stock, all dividends declared on the Preferred Stock and any other Parity Stock shall
be paid pro rata so that the amount of dividends so declared on the shares of Preferred Stock and each such other class or series
of Parity Stock shall in all cases bear to each other the same ratio as accumulated dividends on the shares of Preferred Stock
and such class or series of Parity Stock bear to each other.

 

(f)          Holders
of Preferred Stock will not be entitled to receive any dividends that may be declared by the Board of Directors on the Common Stock
unless such holders’ shares of Preferred Stock have been converted to Common Stock as set forth in Section 7 hereof
prior to or on the record date for the payment of such dividends.

 

5.          Method
of Payment of Dividends.

 

(a)          All
dividends on the Preferred Stock (including accumulated and unpaid dividends), whether or not for a current Dividend Period or
any prior Dividend Period, may be paid, as determined in the Corporation’s sole discretion:

 

(i)          in
cash; or

 

(ii)         with
regard solely to dividends accruing on or before June 30, 2014, by delivery of shares of Preferred Stock or any combination of
cash and Preferred Stock.

 

(b)          Preferred
Stock issued in payment or partial payment of a dividend shall be valued for such purpose at the Liquidation Preference per share.

 

(c)          If
the Corporation elects to make all or any portion of the dividend payments in Preferred Stock pursuant to Section 5(a),
the Corporation shall give the holders thereof two (2) business days prior notice of such election and the portion of such payment
that shall be made in cash and the portion of such payment that shall be made in Preferred Stock promptly following such determination
by the Board of Directors.

 

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(d)          In
connection with the payment of dividends by the delivery of shares of Preferred Stock, fractional shares of Preferred Stock may
be issued.

 

6.          Liquidation
Preference. (a) In the event of any liquidation, dissolution or winding-up of the Corporation resulting in a payment or distribution
of assets to the holders of any class or series of the Capital Stock of the Corporation, whether voluntary or involuntary, before
any payment or distribution of the Corporation’s assets (whether capital or surplus) shall be made to or set apart for the
holders of Junior Stock, but after any payments or distributions are made on any of the Corporation’s indebtedness and to
holders of Senior Stock, holders of Preferred Stock shall be entitled to receive $1,000 per share of Preferred Stock (the “Liquidation
Preference”) plus an amount equal to all dividends (whether or not declared) accumulated and unpaid thereon to the date
of final payment or distribution to such holders, but shall not be entitled to any further payment or other participation in any
distribution of the assets of the Corporation. If, upon any liquidation, dissolution or winding-up of the Corporation, whether
voluntary or involuntary, the Corporation’s assets, or proceeds thereof, distributable among the holders of Preferred Stock
and Parity Stock are insufficient to pay in full the preferential amount aforesaid and liquidating payments on any Parity Stock,
then such assets, or the proceeds thereof, shall be distributed among the holders of the Preferred Stock and any other Parity Stock
equally and ratably in proportion to the respective amounts that would be payable on such shares of Preferred Stock and any such
other Parity Stock if all amounts payable thereon were paid in full.

 

(b)          Neither
the voluntary sale, conveyance, exchange or transfer, for cash, shares of stock, securities or other consideration, of all or substantially
all of the Corporation’s property or assets, nor the consolidation, merger, amalgamation or other business combination of
the Corporation with or into any corporation or the consolidation, merger or amalgamation of any corporation with or into the Corporation
shall be deemed to be a voluntary or involuntary liquidation, dissolution or winding-up of the Corporation.

 

(c)          Subject
to the rights of the holders of any Parity Stock, after payment has been made in full to the holders of the Preferred Stock, as
provided in this Section 6, the holders of Preferred Stock shall not be entitled to receive any and all assets remaining
to be paid or distributed.

 

7.          Conversion.
(a) Right to Convert. Except as otherwise provided herein, each share of Preferred Stock shall be convertible
in accordance with, and subject to, this Section 7 into a number of fully paid and non-assessable shares of Common Stock
equal to the Conversion Rate in effect at such time (a “Conversion”). Any holder of Preferred Stock may effect
a Conversion on or after the date (the “Allowable Conversion Date”) which is the later of (i) March 6, 2013
and (ii) the date on which the Company increases the authorized but unissued shares of Common Stock to such number of shares as
shall be sufficient to effect the conversion of all then outstanding shares of the Preferred Stock taking into account the current
outstanding Capital Stock of the Company (the “Effective Date”). The Company will use its commercially reasonable
efforts to increase the authorized shares of Common Stock and to obtain the requisite stockholder approval of any necessary amendment
to its Certificate of Incorporation by March 6, 2013.

 

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(b)          Conversion
Procedures. On or after the Allowable Conversion Date, (i) conversion of shares of the Preferred Stock may be effected by any
holder thereof upon the surrender to the Corporation, at the principal office of the Corporation or at the office of the Conversion
Agent as may be designated by the Board of Directors, of the certificate or certificates for such shares of the Preferred Stock
to be converted accompanied by a complete and manually signed Notice of Conversion (as set forth in the form of Preferred Stock
certificate attached hereto as Exhibit A) along with (A) appropriate endorsements and transfer documents as required by
the Registrar or Conversion Agent and (B) if required pursuant to Section 7(c), funds equal to the dividend payable on the
next Dividend Payment Date. In case such Notice of Conversion shall specify a name or names other than that of such holder, such
notice shall be accompanied by payment of all transfer taxes payable upon the issuance of shares of Common Stock in such name or
names. Other than such taxes, the Corporation shall pay any documentary, stamp or similar issue or transfer taxes that may be payable
in respect of any issuance or delivery of shares of Common Stock upon conversion of shares of the Preferred Stock pursuant hereto.
The conversion of the Preferred Stock will be deemed to have been made as of the close of business on the date (the “Conversion
Date”) such certificate or certificates have been surrendered and the receipt of such Notice of Conversion and payment
of all required transfer taxes, if any (or the demonstration to the satisfaction of the Corporation that such taxes have been paid).
As promptly as practicable following the Conversion Date, the Corporation shall deliver or cause to be delivered (1) certificates
representing the whole number of validly issued, fully paid and nonassessable full shares of Common Stock to which the holder of
shares of the Preferred Stock being converted (or such holder’s transferee) shall be entitled, and (2) if less than the full
number of shares of the Preferred Stock evidenced by the surrendered certificate or certificates is being converted, a new certificate
or certificates, of like tenor, for the number of shares evidenced by such surrendered certificate or certificates less the number
of shares of Preferred Stock being converted, along with cash payment for any fractional shares in accordance with Section 7(c).
As of the close of business on the Conversion Date, the rights of the holder of the Preferred Stock as to the shares being converted
shall cease except for the right to receive shares of Common Stock, and the Person entitled to receive the shares of Common Stock
shall be treated for all purposes as having become the record holder of such shares of Common Stock at such time.

 

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(d)          Dividend
and Other Payments Upon Conversion. If a holder of shares of Preferred Stock exercises conversion rights, such shares
will cease to accumulate dividends as of the end of the day immediately preceding the Conversion Date. On conversion of
the Preferred Stock, except for conversion during the period commencing on the close of business on any Record Date corresponding
to a Dividend Payment Date and ending at the close of business on the Business Day immediately preceding such Dividend Payment
Date, in which case the holder on such Record Date shall receive the dividends payable on such Dividend Payment Date, a holder
of Shares of Preferred Stock will not be entitled to accumulated and unpaid dividends on the converted shares of Preferred Stock.
Shares of the Preferred Stock surrendered for conversion after the close of business on any Record Date for the payment of dividends
declared and before the opening of business on the Dividend Payment Date corresponding to that Record Date must be accompanied
by a payment to the Corporation in cash of an amount equal to the dividend payable in respect of those shares on such Dividend
Payment Date; provided that a holder of shares of the Preferred Stock on a Record Date who converts such shares into shares
of Common Stock on the corresponding Dividend Payment Date shall be entitled to receive the dividend payable on such shares of
the Preferred Stock on such Dividend Payment Date, and such holder need not include payment to the Corporation of the amount of
such dividend upon surrender of shares of the Preferred Stock for conversion.

 

(e)          Fractional
Shares. In connection with the conversion of any shares of the Preferred Stock, no fractional shares of Common Stock
shall be issued, but the Corporation shall pay a cash adjustment in respect of any fractional interest in an amount equal to the
fractional interest multiplied by the Closing Sale Price of the Common Stock on the Conversion Date, rounded to the nearest whole
cent.

 

(f)          Total
Shares. If more than one share of the Preferred Stock shall be surrendered for conversion by the same holder at the
same time, the number of whole shares of, and fractional interests, if any, in, Common Stock issuable on conversion of those shares
shall be computed on the basis of the total number of shares of the Preferred Stock so surrendered.

 

(g)          Reservation
of Shares; Shares to be Fully Paid; Compliance with Governmental Requirements. After the Effective Date, the Corporation
shall:

 

(i)          reserve
and keep available, free from preemptive rights, for issuance upon the conversion of shares of the Preferred Stock pursuant to
the terms of this Certificate, such number of its authorized but unissued shares of Common Stock as shall from time to time be
sufficient to permit the conversion of all Outstanding shares of the Preferred Stock;

 

(ii)         prior
to the delivery of any securities that the Corporation shall be obligated to deliver upon conversion of the Preferred Stock, comply
with all applicable federal and state laws and regulations that require action to be taken by the Corporation; and

 

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(iii)        ensure
that all shares of Common Stock delivered upon conversion of the Preferred Stock will, upon delivery, be duly and validly issued
and fully paid and nonassessable, free of all liens and charges and not subject to any preemptive rights.

 

8.          Mandatory
Conversion. (a) At any time, the Corporation shall have the right, at its option, to cause all Outstanding shares of the Preferred
Stock to be automatically converted into that number of whole shares of Common Stock at the then-prevailing Conversion Rate, with
any resulting fractional shares of Common Stock to be settled in accordance with Section 7(d). The Corporation may exercise
its right to cause a mandatory conversion pursuant to this Section 8(a) only if the Closing Sale Price of the Common Stock
equals or exceeds 150% of the Conversion Price then in effect for at least 10 Trading Days during any period of 20 consecutive
Trading Days, including the last Trading Day of such 20-day period.

 

(b)          To
exercise the mandatory conversion right described in Section 8(a), the Corporation must give notice by mail to the holders
of Preferred Stock within one Business Day following any date on which the conditions described in Section 8(a) are met
of the mandatory conversion announcing the Corporation’s intention to convert the Preferred Stock. The conversion date will
be a date selected by the Corporation (the “Mandatory Conversion Date”) and will be no more than 10 days after
the date of the notice described in this Section 8(b).

 

(c)          In
addition to any information required by applicable law or regulation, the notice of a mandatory conversion described in Section
8(b) shall state, as appropriate: (i) the Mandatory Conversion Date; (ii) the number of shares of Common Stock to be issued
upon conversion of each share of Preferred Stock; and the place where the shares of Preferred Stock are to be surrendered for conversion.

 

(d)          The
Corporation may not authorize, issue a press release or give notice of any mandatory conversion pursuant to Section 8(a)
unless, prior to giving the conversion notice, all accumulated and unpaid dividends on the Preferred Stock for Dividend Periods
ended prior to the date of such conversion notice shall have been paid in accordance with Section 5. In connection with
a conversion under this Section 8, no dividends from the most recent Dividend Payment Date through the Mandatory Conversion
Date shall be payable.

 

9.          Conversion
Rate Adjustments. The Conversion Rate shall be adjusted from time to time by the Corporation in accordance with the
provisions of this Section 9.

 

(a)          If
the outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Rate
in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately
increased, and conversely, in the event outstanding shares of Common Stock shall be combined into a smaller number of shares of
Common Stock, the Conversion Rate in effect at the opening of business on the day following the day upon which such combination
becomes effective shall be proportionately reduced, such increase or reduction, as the case may be, to become effective immediately
after the opening of business on the day following the day upon which such subdivision or combination becomes effective.

 

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(b)          To
the fullest extent permitted by law, the Corporation may make such decreases in the Conversion Rate in addition to those required
by this Section 9 as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of
Common Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock)
or from any event treated as such for income tax purposes.

 

(c)          The
Corporation may, at its election, on one (and only one) occasion after the Original Issue Date and on or before June 30, 2014,
decrease the Conversion Rate to equal the quotient of $1,000 divided by the average Closing Sale Price for the ten (10) Trading
Day period beginning on the first Trading Day following such election by the Corporation. After such decrease, the Conversion Rate
shall thereafter be subject to further adjustment as provided in this Certificate.

 

(d)          No
adjustment in the Conversion Rate shall be required unless such adjustment would require an increase or decrease of at least one
percent (1%) in the Conversion Rate then in effect; provided, however, that any adjustments that by reason of this
Section 9(d) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 9 shall be made by the Corporation and shall be made to the nearest cent or to the nearest
one thousandth (1/1,000) of a share, as the case may be. No adjustment need be made, except as set forth in this Section 9,
for any issuance of Common Stock or securities convertible, exercisable or exchangeable into Common Stock. To the extent the Preferred
Stock becomes convertible into cash, assets, property or securities (other than Capital Stock of the Corporation), subject to Section
10, no adjustment need be made thereafter to the Conversion Rate. Interest will not accrue on any cash into which the Preferred
Stock may be convertible.

 

(e)          Whenever
the Conversion Rate is adjusted as herein provided, the Corporation shall promptly file with the Conversion Agent an Officer’s
certificate setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the facts requiring
such adjustment. Unless and until a responsible officer of the Conversion Agent shall have received such Officer’s certificate,
the Conversion Agent shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume that the last
Conversion Rate of which it has knowledge is still in effect. Promptly after delivery of such certificate, the Corporation shall
prepare a notice of such adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate to each holder of Preferred Stock
at its last address appearing in the stock register within 20 days after execution thereof. Failure to deliver such notice shall
not affect the legality or validity of any such adjustment.

 

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(f)          For
purposes of this Section 9, the number of shares of Common Stock at any time outstanding shall not include shares held in
the treasury of the Corporation, unless such treasury shares participate in any distribution or dividend that requires an adjustment
pursuant to this Section 9.

 

10.         Effect
of Reclassification, Consolidation, Merger or Sale on Conversion Privilege. (a) If any of the following events occur, namely
(i) any reclassification of the outstanding shares of Common Stock (other than a subdivision or combination to which Section
9(a) applies), (ii) any consolidation, merger or combination of the Corporation with another Person as a result of which holders
of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash) with respect
to or in exchange for such Common Stock, or (iii) any sale or conveyance of all or substantially all of the properties and assets
of the Corporation to any other Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities
or other property or assets (including cash) with respect to or in exchange for such Common Stock, then each share of Preferred
Stock Outstanding immediately prior to such transaction shall be convertible into the kind and amount of shares of stock, other
securities or other property or assets (including cash) receivable upon such reclassification, consolidation, merger, combination,
sale or conveyance by a holder of a number of shares of Common Stock issuable upon conversion of such Preferred Stock (assuming,
for such purposes, a sufficient number of authorized shares of Common Stock are available to convert all such Preferred Stock)
immediately prior to such reclassification, consolidation, merger, combination, sale or conveyance assuming such holder of Common
Stock did not exercise his rights of election, if any, as to the kind or amount of stock, other securities or other property or
assets (including cash) receivable upon such reclassification, consolidation, merger, combination, sale or conveyance (provided
that, if the kind or amount of stock, other securities or other property or assets (including cash) receivable upon such reclassification,
consolidation, merger, combination, sale or conveyance is not the same for each share of Common Stock in respect of which such
rights of election shall not have been exercised (“non-electing share”), then for the purposes of this Section
10 the kind and amount of stock, other securities or other property or assets (including cash) receivable upon such reclassification,
consolidation, merger, combination, sale or conveyance for each non-electing share shall be deemed to be the kind and amount so
receivable per share by a plurality of the non-electing shares).

 

(b)          The
Corporation shall cause notice of the application of this Section 10 to be delivered to each holder of the Preferred Stock
at the address of such holder as it appears in the stock register within 20 days after the occurrence of any of the events specified
in Section 10(a). Failure to deliver such notice shall not affect the legality or validity of any conversion right pursuant
to this Section 10.

 

    	13

    	 

    

  

(c)          The
above provisions of this Section 10 shall similarly apply to successive reclassifications, consolidations, mergers, combinations,
sales and conveyances.

 

11.         Reserved.

 

12.         Voting
Rights.

 

(a)          The
holders of record of shares of the Preferred Stock shall not be entitled to any voting rights except as hereinafter provided in
this Section 12 or as otherwise provided by law.

 

(b)          The
affirmative vote of holders of at least a majority of the Outstanding shares of the Preferred Stock and all other Parity Stock
with like voting rights, voting as a single class, in person or by proxy, at an annual meeting of the Corporation’s stockholders
or at a special meeting called for the purpose, or by written consent in lieu of such a meeting, shall be required to alter, repeal
or amend, whether by merger, consolidation, combination, reclassification or otherwise, any provisions of the Certificate of Incorporation
or this Certificate if the amendment would amend, alter or affect the powers, preferences or special rights of the Preferred Stock,
so as to adversely affect the holders thereof, including, without limitation, the creation of, or increase in the authorized number
of, shares of any class or series of Senior Stock; provided however, that any increase in the amount of the authorized Common
Stock or authorized Preferred Stock or the creation and issuance of any class or series of Common Stock, other Junior Stock or
Parity Stock will not be deemed to adversely affect such powers, preferences or special rights.

 

13.         Transfer
Agent and Registrar. The Corporation shall initially act as the Transfer Agent (the “Transfer Agent”) and
Registrar (the “Registrar”) for the Preferred Stock. The Corporation may, in its sole discretion, appoint another
entity as transfer agent and registrar who shall accept such appointment. The Corporation may, in its sole discretion, remove any
Transfer Agent and Registrar in accordance with the agreement between the Corporation and the Transfer Agent and Registrar; provided
that the Corporation shall appoint a successor transfer agent and registrar who shall accept such appointment prior to the effectiveness
of such removal.

 

14.         Currency.
All shares of Preferred Stock shall be denominated in U.S. currency, and all payments and distributions thereon or with respect
thereto shall be made in U.S. currency. All references herein to “$”or “dollars” refer to U.S. currency.

 

    	14

    	 

    
 

15.         Paying
Agent and Conversion Agent.

 

(a)          The
Corporation shall initially act as the Paying Agent and Conversion Agent. If the Corporation does not act as Paying Agent and Conversion
Agent, the Corporation shall maintain (i) an office or agency where Preferred Stock may be presented for payment (the “Paying
Agent”) and (ii) an office or agency where Preferred Stock may be presented for conversion (the “Conversion
Agent”). The Transfer Agent shall act as Paying Agent and Conversion Agent, unless another Paying Agent or Conversion
Agent is appointed by the Corporation. The Corporation may appoint the Registrar, the Paying Agent and the Conversion Agent and
may appoint one or more additional paying agents and one or more additional conversion agents in such other locations as it shall
determine. The term “Paying Agent” includes any additional paying agent and the term “Conversion Agent”
includes any additional conversion agent. The Corporation may change any Paying Agent or Conversion Agent without prior notice
to any holder. The Corporation shall notify the Registrar of the name and address of any Paying Agent or Conversion Agent appointed
by the Corporation. If the Corporation fails to appoint or maintain another entity as Paying Agent or Conversion Agent, the Registrar
shall act as such.

 

(b)          Payments
due on the Preferred Stock shall be payable at the office of the Paying Agent and at any other office or agency maintained by the
Corporation for such purpose. Payments in cash shall be payable by United States dollar check drawn on, or wire transfer (provided,
that appropriate wire instructions have been received by the Registrar at least 15 days prior to the applicable date of payment)
to a U.S. dollar account maintained by the holder with a bank; provided that at the option of the Corporation, payment of
cash dividends may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Preferred
Stock register.

 

(c)          Certificated
shares of Preferred Stock will be transferable upon surrender to the Transfer Agent of the certificate representing the shares
to be transferred together with such other information, documents and instruments related to such transfer that the Corporation
shall reasonably request.

 

16.         Headings.
The headings of the Sections of this Certificate are for convenience of reference only and shall not define, limit or affect any
of the provisions hereof.

  

    	15

    	 

    

 

IN WITNESS WHEREOF, American Standard Energy
Corp. has caused this Certificate of Designation to be signed by the undersigned this 30th day of June, 2012.

 

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

 

    	16

    	 

    

 

EXHIBIT A

 

FORM OF SERIES A CUMULATIVE CONVERTIBLE
PREFERRED STOCK

 

	Number: ___	____________ Shares

 

Series A Cumulative Convertible Preferred
Stock

(par value $0.001 per share)

(liquidation preference $1,000 per share)

OF

AMERICAN STANDARD ENERGY CORP.

 

FACE OF SECURITY

 

NEITHER THE SHARES REPRESENTED BY THIS
CERTIFICATE NOR THE SHARES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. SUCH SHARES MAY
NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION,
UNLESS THE CORPORATION HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS OR THE CORPORATION HAS RECEIVED FROM THE HOLDER REASONABLE
ASSURANCE THAT THE SHARES CAN BE SOLD, ASSIGNED OR TRANSFERRED PURSUANT TO RULE 144 UNDER THE SECURITIES ACT.

 

American Standard Energy Corp., a Delaware
corporation (the “Corporation”), hereby certifies that _________________ (the “Holder”) is
the registered owner of _______________ fully paid and non-assessable shares of preferred stock of the Corporation designated the
Series A Cumulative Convertible Preferred Stock,” par value $0.001 per share and liquidation preference $1,000 per share
(the “Preferred Stock”). The shares of Preferred Stock are transferable on the books and records of the Registrar,
in person or by a duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer. The
designation, rights, privileges, restrictions, preferences and other terms and provisions of the Preferred Stock represented hereby
are issued and shall in all respects be subject to the provisions of the Certificate of Designations of the Corporation dated _____,
as the same may be amended from time to time in accordance with its terms (the “Certificate of Designations”).
Capitalized terms used herein but not defined shall have the respective meanings given them in the Certificate of Designation.
The Corporation will provide a copy of the Certificate of Designation to a Holder without charge upon written request to the Corporation
at its principal place of business.

 

Reference is hereby made to select provisions
of the Preferred Stock set forth on the reverse hereof, and to the Certificate of Designation, which select provisions and the
Certificate of Designations shall for all purposes have the same effect as if set forth at this place.

 

    	17

    	 

    

 

Upon receipt of this certificate, the Holder
is bound by the Certificate of Designation and is entitled to the benefits thereunder.

 

IN WITNESS WHEREOF,
American Standard Energy Corp. has executed this Certificate as of the date set forth below.

 

	 	AMERICAN STANDARD ENERGY CORP.
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	Dated: _______________

   

    	18

    	 

    

 

REVERSE OF SECURITY

 

AMERICAN STANDARD ENERGY CORP.

 

Series A Cumulative Convertible Preferred
Stock

 

Dividends on each share of Series A Cumulative
Convertible Preferred Stock shall be payable in cash or Preferred Stock of the Corporation at a rate per annum as provided in the
Certificate of Designation.

 

The shares of Series A Cumulative Convertible
Preferred Stock shall be convertible into the Corporation’s Common Stock in the manner and according to the terms set forth
in the Certificate of Designation and shall have the liquidation preference as set forth in the Certificate of Designation.

 

As required under Delaware law, the Corporation
shall furnish to any Holder upon request and without charge, a full summary statement of the designations, voting rights preferences,
limitations and special rights of the shares of each class or series authorized to be issued by the Corporation so far as they
have been fixed and determined.

 

    	19

    	 

    

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned assigns
and transfers the shares of Series A Cumulative Convertible Preferred Stock evidenced hereby to:

 

________________________________________________________________

 

________________________________________________________________

 

(Insert assignee’s social security or tax identification
number)

 

________________________________________________________________

 

(Insert address and zip code of assignee)

 

________________________________________________________________

 

________________________________________________________________

 

and irrevocably appoints:

 

________________________________________________________________

 

agent to transfer the shares of Series A Cumulative Convertible
Preferred Stock evidenced hereby on the books of the Transfer Agent and Registrar. The agent may substitute another to act for
him or her.

 

Date: __________________

 

Signature: ______________________

 

(Sign exactly as your name appears on the other side of this
Series A Cumulative Convertible Preferred Stock)

 

Signature Guarantee: _____________________1

 

 

1 Signature must be guaranteed by an “eligible
guarantor institution” (i.e., a bank, stockbroker, savings and loan association or credit union) meeting the requirements
of the Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program (“STAMP”)
or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution
for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

    	20

    	 

    

 

NOTICE OF CONVERSION

(To be Executed by the Registered Holder

in order to Convert the Series A Cumulative
Convertible Preferred Stock)

 

The undersigned hereby irrevocably elects
to convert (the “Conversion”) _______ shares of Series A Cumulative Convertible Preferred Stock (the “Preferred
Stock”), represented by stock certificate No(s). __ (the “Preferred Stock Certificates”) into shares
of common stock, par value $0.001 per share (“Common Stock”), of American Standard Energy Corp. (the “Corporation”)
according to the conditions of the Certificate of Designation establishing the terms of the Preferred Stock (the “Certificate
of Designation”), as of the date written below. If shares are to be issued in the name of a Person other than the undersigned,
the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates. No fee will
be charged to the holder for any conversion, except for transfer taxes, if any. A copy of each Preferred Stock Certificate is attached
hereto (or evidence of loss, theft or destruction thereof).

 

The undersigned represents and warrants
that all offers and sales by the undersigned of the shares of Common Stock, if any, issuable to the undersigned upon conversion
of the Preferred Stock shall be made pursuant to registration of the Common Stock under the Securities Act of 1933 (the “Act”)
or pursuant to an exemption from registration under the Act.

 

The Corporation is not required to issue
shares of Common Stock until the original Preferred Stock Certificate(s) (or evidence of loss, theft or destruction thereof) to
be converted are received by the Corporation or its Transfer Agent. The Corporation shall issue and deliver shares of Common Stock
to an overnight courier as promptly as practicable following receipt of the original Preferred Stock Certificate(s) to be converted.

 

The undersigned represents that the representations
set forth in Section 2 of the Exchange Agreement dated June _, 2012 between the Company and the undersigned are true and correct
as of the date of this Conversion Notice. Capitalized terms used but not defined herein shall have the meanings ascribed thereto
in or pursuant to the Certificate of Designations.

 

Date of Conversion: __________________________________________

Applicable Conversion Rate: __________________________________

Number of shares of Cumulative Convertible
Preferred Stock

to be Converted: __________________________

Number of shares of Common Stock to be Issued:
__________________

Signature: __________________________________________________

Name: _____________________________________________________

Address:1 __________________________________________________

Fax No.: ___________________________________________________

 

 

1 Address where shares of Common Stock and any other
payments or certificates shall be sent by the Corporation.

 

    	21EXCHANGE AGREEMENT

 

This Exchange Agreement
(“Agreement”) sets forth the terms and conditions upon which American Standard Energy Corp., a Delaware corporation
(the “Company”), will issue an aggregate of 35,400 shares (the “Shares”), subject to reduction
as set forth in Section 4 hereof, of the Company’s Series A Cumulative Convertible Preferred Stock, par value $0.001 per
share (“Preferred Stock”), to Geronimo Holding Corporation, a Texas corporation (the “Holder”),
in exchange for the Company’s subordinated Promissory Note dated March 5, 2012, in the original principal amount of $35,000,000,
plus any and all uncured and unpaid interest to date, payable by the Company to the Holder (the “Exchanged Note”).

 

Section
1.   Exchange. The Holder agrees to exchange and transfer the Exchanged Note, including any and all rights of the Holder
to any accrued and unpaid interest thereon, to the Company, and the Company agrees to issue the Shares to Holder in exchange for
the Exchanged Note from the Holder, at an exchange rate per share as determined as being fair pursuant to a fairness opinion issued
to the Company by Vantage Point Advisors. As promptly as reasonably practicable, but in no event later than five business days
after the execution of this Agreement, the Holder shall deliver the Exchanged Note to the Company by due and proper instruments
of transfer reasonably acceptable to the Company and its legal counsel. Subject to and upon such delivery of the Exchanged Note,
as promptly as reasonably practicable, but in no event later than five business days after receipt by the Company of the Exchanged
Note, the Company shall deliver to the Holder photocopies of certificates or other appropriate documentation for the Shares, duly
registered in the name of the Holder, the originals of which shall be held by the Company pursuant to the terms of and for the
periods specified in Section 4 hereof.

 

Section
2.   Representations And Warranties Of The Holder.  The Holder represents and warrants to the Company, as of the
date hereof and as of the date of delivery of the Exchanged Note that:

 

(a)          The
execution, delivery and performance by the Holder of this Agreement, and the consummation of the transactions contemplated hereby
are within the powers of the Holder and have been or will have been duly authorized by all necessary action on the part of the
Holder, and that this Agreement constitutes a valid and binding agreement of the Holder, enforceable in accordance with its terms,
except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting
enforcement or creditors’ rights generally or (ii) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

(b)          The
execution, delivery and performance by the Holder of this Agreement and the consummation of the transactions contemplated hereby
require no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to,
or filing or registration with, any governmental body, agency or official on the part of the Holder.

 

    	1

    	 

    

 

(c)          The
execution, delivery and performance by the Holder and the Company of this Agreement, and the consummation of the transactions contemplated
by this Agreement, do not and will not (i) violate the certificate of incorporation (or similar constituent document) or bylaws
of the Holder, (ii) violate any material agreement to which the Holder is a party or by which the Holder or any of its property
or assets is bound, or (iii) violate any law, rule, regulation, judgment, injunction, order or decree applicable to the Holder.

 

(d)          The
Holder is the beneficial owner of the Exchanged Note, no event of default has occurred or is existing under the Exchanged Note
and upon the consummation of the transactions contemplated hereby, the Company will receive the Exchanged Note, in each case, free
and clear of all encumbrances, liens, equities or claims created by the Holder.

 

(e)          There
is no investment banker, broker, finder or other intermediary which has been retained by, will be retained by or is authorized
to act on behalf of the Holder who might be entitled to any fee or commission from the Company or the Holder upon consummation
of the transactions contemplated by this Agreement.

 

(f)          The
Holder has not paid, given or received any commission or other remuneration directly or indirectly in connection with the exchange
of the Exchanged Note for the Shares.

 

(g)          The
Holder, through its representative and affiliates, (i) is knowledgeable, sophisticated and experienced in financial and business
matters, in making, and is qualified to make, decisions with respect to investments in shares representing an investment decision
like that involved in the purchase of the Shares, including investments in securities issued by the Company and comparable entities,
and the Holder has undertaken an independent analysis of the merits and the risks of an investment in the Shares, based on the
Holder’s own financial circumstances; (ii) has had the opportunity to request, receive, review and consider all information
it deems relevant in making an informed decision to purchase the Shares and to ask questions of, and receive answers from, the
Company concerning such information, including the Company’s filings with the Securities and Exchange Commission; (iii) is
acquiring the Shares in the ordinary course of its business and for its own account and with no present intention of distributing
any of such Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares within
the meaning of the Securities Act of 1933, as amended (the “Securities Act”), or in violation of any applicable
securities laws; (iv) will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers
to buy, purchase or otherwise acquire or take a pledge of) any of the Shares, nor will the Holder engage in any short sale that
results in a disposition of any of the Shares by the Holder, except in compliance with the Securities Act, and the rules and regulations
thereunder and any applicable state securities laws; and (v) is an “accredited investor” within the meaning of Rule
501 of Regulation D under the Securities Act.

 

(h)          The
Holder understands that the Shares are being offered and sold to it in reliance upon specific exemptions from the registration
requirements of the Securities Act, the rules and regulations thereunder and state securities laws and that the Company is relying
upon the truth and accuracy of, and the Holder’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of the Holder set forth herein in order to determine the availability of such exemptions and the eligibility
of the Holder to acquire the Shares.

 

    	 

    	 

    

 

(i)          The
Holder understands that nothing in the Agreement or any other materials presented to the Holder in connection with the purchase
and sale of the Shares constitutes legal, tax or investment advice. The Holder has consulted such legal, tax and investment advisors
as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares.

 

(j)          The
Holder understands that its investment in the Shares involves a significant degree of risk, including a risk of total loss of the
Holder’s investment, and the Holder has full cognizance of and understands all of the risks related to the Holder’s
purchase of the Shares. The Holder understands that no market exists or is expected to exist for the Shares, that the market price
of the Common Stock into which the Shares are convertible has been volatile and that no representation is being made as to the
future value of the Shares or the Common Stock issuable upon conversion of the Shares.

 

(k)          The
Holder understands that the Shares will be treated as “restricted securities” under federal securities laws and under
such laws and applicable regulations, such Shares will bear a restrictive legend in substantially the form set out in the Certificate
of Designations establishing the Shares. The Holder further understands that the shares of Common Stock issuable upon conversion
of the Shares will bear a restrictive legend in substantially the same form.

 

Section
3.   Representations And Warranties Of The Company. The Company represents
and warrants to the Holder, as of the date hereof and as of the date of delivery of the Shares, that:

 

(a)          The
execution, delivery and performance by the Company of this Agreement, and the consummation of the transactions contemplated hereby
and thereby are within the powers of the Company and have been or will have been duly authorized by all necessary action on the
part of the Company, except that the Company has not received the approval of its board of directors and stockholders to amend
the Company’s Certificate of Incorporation to increase the Company’s authorized shares of Common Stock to a sufficient
number of shares to permit the issuance of Common Stock upon the conversion of the Shares (the “Authorization”),
and that this Agreement constitutes a valid and binding agreement of the Company, enforceable in accordance with its terms, except
(i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting
enforcement or creditors’ rights generally or (ii) as limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.

 

(b)          The
execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby
require no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to,
or filing or registration with, any governmental body, agency or official on the part of the Company.

 

(c)          The
execution, delivery and performance by the Holder and the Company of this Agreement, and the consummation of the transactions contemplated
by this Agreement, do not and will not, (i) violate the certificate of incorporation or bylaws of the Company, (ii) violate any
material agreement to which the Company is a party or by which the Company or any of its property or assets is bound, or (iii)
violate any law, rule, regulation, judgment, injunction, order or decree applicable to the Company, subject in all cases to the
Company receiving the Authorization and filing an amendment to its Certificate of Incorporation to increase its authorized shares
of Common Stock.

 

    	 

    	 

    

  

(d)          The
Shares, when issued in exchange for the Exchanged Note in accordance with this Agreement, will be duly and validly authorized and
issued, fully-paid and non-assessable, free and clear of all encumbrances, liens, equities or claims, other than the lien pursuant
to Section 4 hereof.

 

(e)          There
is no investment banker, broker, finder or other intermediary which has been retained by, will be retained by or is authorized
to act on behalf of the Company who might be entitled to any fee or commission from the Company or the Holder upon consummation
of the transactions contemplated by this Agreement.

 

Section
4.  Adjustment to Number of Shares. Section 6 of the Exchanged Note provided that the principal amount of the Exchanged
Note was subject to reduction or setoff pursuant to Section 7 and 13(e)(iv) of that certain Purchase and Sale Agreement (the “PSA”)
dated as of February 24, 2012, among the Holder and XOG Operating LLC as sellers and the Company as buyer. In the event that the
Company would have been entitled to any reduction in or setoff against the principal amount of the Exchanged Note pursuant to such
sections of the PSA if the Exchanged Note was still outstanding, Holder shall be obligated to transfer a portion of the Shares
to the Company, which portion shall be equal to one share of Preferred Stock and any dividends accrued thereon (whether in cash
or shares of Preferred Stock, and whether paid or unpaid) since the date of issuance of the Shares for each $1,000 of reduction
in or setoff against the principal of the Exchanged Note. The Company shall have a lien over the Shares and any such dividends
to secure the Holder’s obligation to return such portion of the Shares, and the Holder shall provide a duly executed stock
power in blank relating to the Shares and any such dividends in connection with such lien. The Company, in connection with such
lien, shall hold the certificate(s) representing the Shares and any such dividends from and after the closing of the transactions
under this Agreement and may retain and cancel any such portion of the Shares and any such dividends relating to any such reduction
in or setoff against the principal amount of the Exchanged Note; provided that the Company shall release the balance of
the Shares and dividends relating thereto not so retained on March 6, 2013, and shall deliver a certificate or certificates representing
such balance to the Holder promptly thereafter; provided further, that the Company may continue to hold such portion of
the balance of such Shares and dividends relating thereto as it in good faith determines to be necessary with regard to any pending
and unresolved disputes as of March 6, 2013, that could reasonably be expected to give rise to such a reduction in or setoff against
the principal amount of the Exchanged Note, and shall promptly deliver any remaining Shares and dividends relating thereto to the
Holder upon resolution of such disputes.

 

Section
5. Survival; Indemnity. The representations and warranties of the parties hereto contained in this Agreement shall survive
the consummation of the transactions contemplated hereby. The Holder and the Company agree to indemnify and protect the other party,
its officers, directors, employees and attorneys and its successors and assigns and hold them harmless from and against any and
all losses, liabilities, costs and expenses (including reasonable attorneys’ fees) incurred as a result of the breach by
the Holder or the Company, as applicable, of any of its representations, warranties or covenants contained in this Agreement.

 

    	 

    	 

    

  

Section
6.  Notices. All notices, requests and other communications to any party hereunder shall be in writing (including
facsimile transmission) and shall be given,

 

if to the Holder to:

 

Geronimo Holding Corporation

1801 W. Texas

Midland, Texas 79701

Facsimile: (432) 683-6348

Attention: Randall Capps

 

if to the Company to:

 

American Standard Energy Corp.

4800 North Scottsdale Road

Suite 1400

Scottsdale, Arizona 85251

Fax: (480) 990-2736

Attention: Richard MacQueen, President

 

with a copy to:

 

Blank Rome, LLP

405 Lexington Avenue

New York, New York 10174

Fax: (917) 332-3840

Attn: Kristina Trauger, Esq.

 

or to such other address or telecopy number
and with such other copies as such party may hereafter specify for the purpose of notice. All such notices, requests and other
communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5 p.m. in the place
of receipt and such day is a business day in the place of receipt. Otherwise, any such notice, request or communication shall be
deemed not to have been received until the next succeeding business day in the place of receipt.

 

Section
7.  Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment
or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver,
by the party against whom the waiver is to be effective. No failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and
not exclusive of any rights or remedies provided by law.         

 

    	 

    	 

    

 

Section
8.  Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns; provided that no party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the consent of each other party hereto. 

 

Section
9.  Choice of Law and Venue. Without regard to principles of conflicts of law, this Agreement shall be construed and
enforced in accordance with and governed by the laws of the State of Texas shall apply as to the property located in (or otherwise
subject to the laws of) such state. The Parties agree that venue shall be in any state court or the United States District Court
located in Midland, Texas. Each party consents to the exclusive jurisdiction of such courts (and the appellate courts thereof)
and agrees not to commence any such Proceeding except in such courts. Each party agrees not to assert (by way of motion, as a defense,
or otherwise), and hereby irrevocably and unconditionally waives in any such Proceeding commenced in such court, any objection
or claim that such party is not subject personally to the jurisdiction of such court or that such Proceeding has been brought in
an inconvenient forum. If such courts refuse to exercise jurisdiction hereunder, the Parties agree that such jurisdiction shall
be proper in any court in which jurisdiction may be obtained.

 

Section
10.  Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY
OF THEM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

Section
11.  Adequate Counsel. Holder acknowledges that (i) it has had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with its own legal counsel and investment, tax and other advisors, and (ii) it is not relying on
any statements or representations of the Company or any of the Company’s respective Affiliates, representatives, counsel
or agents for legal, tax, investment or other advice with respect to this Agreement or the transactions contemplated hereby.

 

Section
12.  Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party
hereto. No provision of this Agreement shall confer upon any person other than the parties hereto any rights or remedies hereunder.         

 

    	 

    	 

    

  

Section
13.  Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the
subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter of this Agreement.

 

Section
14.  Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective
and valid under applicable law, ordinance, regulation, statute and treaty of any Governmental Authority, but if any provision of
this Agreement is held to be prohibited thereby or invalid thereunder, such provision will be ineffective only to the extent of
such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

Section
15.  Captions. The captions herein are included for convenience of reference only and shall be ignored in the
construction or interpretation hereof.

 

[Signature Page Follows]

 

    	 

    	 

    

 

If the foregoing is
acceptable to you, please acknowledge your agreement by signing below in the space provided for your signature and returning an
original copy hereof.

 

	 	DATE: June 30, 2012
	 	 
	 	American Standard Energy Corp.

 

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

 

THE FOREGOING IS AGREED TO

AND ACKNOWLEDGED BY:

 

Geronimo Holding Corporation

 

	By:	/s/ Randall Capps	 
	Name:	Randall Capps	 
	Title:	President

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