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                                                                    EXHIBIT 10.2


                            STOCK OPTION AGREEMENT


     THIS STOCK OPTION AGREEMENT ("Agreement"), dated as of __________ _____, is
by and between NORTH AMERICAN TECHNOLOGIES GROUP, INC., a Delaware corporation
(the "Company"), and ______________________ ("Employee").

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which
are hereby acknowledged, the Company and the Employee hereby agree as follows:

     1.  GRANT OF OPTION; VESTING SCHEDULE.

     (a)  Grant of Option.  The Company hereby grants to Employee an option the
("Option") to purchase, subject to the terms and conditions hereof, from the
____________ (____________) shares (the "Option Shares") of Common Stock, par
value $0.001 per share, of the Company (the "Common Stock") beginning on the
Commencement Date (as defined below) and ending at 5:00 p.m. Eastern Standard
Time, on ___________, 2005 (the "Termination Date"), at an exercise price equal
to $2.50 per share of Common Stock.  As used herein, the term "Commencement
Date" shall mean the date first set out above.  The number of Option Shares and
the exercise price per share shall be subject to adjustment from time to time
upon the occurrence of certain events as set forth below.  The shares of Common
Stock or any other shares or other units of stock or other securities or
property, or any combination thereof then receivable upon exercise of the
Option, as adjusted from time to time, are sometimes referred to hereinafter as
"Exercise Shares."  The exercise price per share as from time to time in effect
is referred to hereinafter as the "Exercise Price."

The Option is not an "incentive stock option" as described in Section 422A of
the Internal Revenue Code of 1986, as amended.

     (b) Vesting Schedule.  Following the Commencement Date, the Option shall
vest and be exerciseable (unless earlier terminated as provided herein) on
_________ 1 in the years set forth below and in the amounts set forth below:



                           NUMBER OF
                            SHARES

     __________ 1

        1997           _______
        1998           _______
        1999           _______
        2000           _______

       Total           _______

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; provided, however, that (i) the Option to acquire such shares shall vest on
the date set forth above only in the event that Employee is in the employ of the
Company or any of its subsidiaries in any capacity on such date and (ii) the
Option to acquire any Exercise Shares, if not earlier terminated by the terms of
this Agreement, shall terminate on the 5th annual anniversary date of the date
on which the Option to acquire such Exercise Shares vested as provided in this
clause (b).  The period beginning on the Commencement Date and ending on the
Termination Date is sometimes referred to herein as the Option Period.  If
Employee is not in the employ of the Company or any of its subsidiaries in any
capacity on any of the various vesting dates set forth above, regardless of the
reason therefore, then the Option with respect to such year shall not vest.

     2.  EXERCISE OF OPTION.  The Option may be exercised, so long as it is then
valid and outstanding, from time to time in whole (as to Option Shares then
exercisable) or in part, and if in part, on as many occasions during the Option
Period as Employee shall desire, subject to the terms and provisions of this
Agreement.  The Option may be exercised upon delivery on any business day to the
Company at its address set forth below (or such other office of the Company, if
any, as shall theretofore have been designated by the Company by written notice
to the Employee) of the following:

     (a)   a completed and executed Notice of Option Exercise in the form set
forth in Appendix A hereto and made a part hereof; and

     (b)   payment of the full Exercise Price for the number of Exercise Shares
set forth in the Notice of Option Exercise, in lawful money of the United States
of America, by certified check or cashier's check made payable to the order of
the Company (or with the consent of the Company, the purchase price therefor may
be paid in whole or in part by the delivery to the Company of certificates
representing shares of Common Stock held by Employee, duly endorsed for transfer
or accompanied by blank stock, each of which shares shall be valued at a price
equal to its then Current Market Value, as defined below).

In the event that Employee is no longer in the employ of the Company or any of
its subsidiaries in any capacity, Employee shall be entitled to exercise this
Option, according to the terms and conditions set forth herein, to purchase only
that number of Option Shares in which Employee has become vested prior to the
termination of such employment.

     3.  ISSUANCE OF EXERCISE SHARES; DELIVERY OF STOCK CERTIFICATE.  The
Company shall, within ten (10) business days (or as soon thereafter as is
practicable) of the exercise of this Option, issue in the name of and cause to
be delivered to the Employee (or such other person or persons, if any, as the
Employee shall have designated in the Notice of Option Exercise) one or more
certificates representing the Exercise Shares to which the Employee (or such
other person or persons) shall be entitled upon such exercise under the terms
hereof.  Such certificate or certificates shall be deemed to have been issued
and the Employee (or such other person or persons so designated) shall be deemed
to have

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become the record holder of the Exercise Shares as of the date of the due
exercise of this Option.

     4.  EXERCISE SHARES FULLY PAID AND NON-ASSESSABLE.  The Company agrees and
covenants that all Exercise Shares issuable upon the due exercise of the Option
will, upon issuance of a certificate therefor in accordance with the terms
hereof, be duly authorized, validly issued, fully paid and non-assessable and
free and clear of all taxes (other than taxes which, pursuant to this Agreement,
the Company shall not be obligated to pay) or liens, charges, and security
interests created by the Company with respect to the issuance thereof.

     5.  RESERVATION OF EXERCISE SHARES.  At the time of or before taking any
action which would cause an adjustment pursuant to this Agreement increasing the
number of shares of capital stock constituting the Exercise Shares, the Company
will take any corporate action which may be necessary in order that the Company
have remaining, after such adjustment, a number of shares of such capital stock
unissued and unreserved for other purposes sufficient to permit the exercise of
all the then vested Options under this Agreement of like tenor immediately after
such adjustment.  The Company will also from time to time take action to
increase the authorized amount of its capital stock constituting the Exercise
Shares if at any time the number of shares of capital stock authorized but
remaining unissued and unreserved for other purposes shall be insufficient to
permit the exercise of the Options under this Agreement then vested.  The
Company may but shall not be limited to reserve and keep available, out of the
aggregate of its authorized but unissued shares of capital stock, for the
purpose of enabling it to satisfy any obligation to issue Exercise Shares upon
exercise of Options, through the Termination Date, the number of Exercise Shares
deliverable upon the full exercise of this Option.  At the time of or before
taking any action which would cause (pursuant to the provisions of this Section
5) an adjustment resulting in a reduction of the Exercise Price below the then
par value (if any) of the Exercise Shares issuable upon exercise of the Options,
the Company will take any corporate action which may be necessary in order to
assure that the par value per share of the Exercise Shares is at all times equal
to or less than the Exercise Price per share and so that the Company may validly
and legally issue fully paid and non-assessable Exercise Shares at the Exercise
Price, as so adjusted.  The Company will also from time to time take similar
action if at any time the Exercise Price is below the then par value of the
Exercise Shares.

     6.  FRACTIONAL SHARES.  The Company shall not be required to issue
fractional shares of capital stock upon the exercise of this Option or to
deliver stock certificates which evidence fractional shares of capital stock.
In the event that any fraction of an Exercise Share would, except for the
provisions of this Section 6, be issuable upon the exercise of this Option, the
Company shall pay to the Employee an amount in cash equal to such fraction
multiplied by the Current Market Value (as defined herein) of the Exercise
Share.  For purposes of this subparagraph, the "Current Market Value" shall
mean, and be determined, as follows:

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     (a)   if the type of securities representing the Exercise Shares are traded
in the over-the-counter market and not on any national securities exchange and
not in the NASDAQ Reporting System, the average of the mean between the last bid
and asked prices per share, as reported by the National Quotation Bureau, Inc.,
or another generally accepted reporting service, for the last business day prior
to the date on which this Option is exercised, or if not so reported, the
average of the closing bid and asked prices for an Exercise Share as furnished
to the Company by any member of the National Association of Securities Dealers,
Inc., selected by the Company for that purpose;

     (b)   if the type of securities representing the Exercise Shares are listed
or traded on a national securities exchange or in the NASDAQ National Market
System, the closing price on the principal national securities exchange on which
they are so listed or traded or in the NASDAQ National Market System, as the
case may be, on the last business day prior to the date of the exercise of this
Option.  The closing price referred to in this clause (b) shall be the last
reported sales price or, in case no such reported sale takes place on such day,
the average of the reported closing bid and asked prices, in either case, on the
national securities exchange on which the Exercise Shares are then listed or in
the NASDAQ Reporting System; or

     (c)  if no such closing price or closing bid and asked prices are
available, as determined in any reasonable manner as may be prescribed by the
Board of Directors of the Company.

     7.  PAYMENT OF TAXES.  The Company will pay all documentary stamp taxes, if
any, attributable to the issuance of Exercise Shares upon the exercise of this
Option; provided, however, that the Company shall not be required to pay any tax
or taxes which may be payable in respect of any transfer involved in the issue
of any certificates representing the Exercise Shares in a name other than that
of the Employee, and the Company shall not be required to issue or deliver such
certificates unless or until the person or persons requesting the issuance
thereof shall have paid to the Company the amount of such tax or shall have
established to the satisfaction of the Company that such tax has been paid.

     8.  RIGHTS OF EMPLOYEE.  The Employee shall not, by virtue of anything
contained in this Agreement or otherwise, be entitled to any right whatsoever,
either in law or equity, of a stockholder of the Company, including without
limitation, the right to receive dividends or to vote or to consent or to
receive notice as a shareholder in respect of the meetings of shareholders or
the election of directors of the Company or any other matter, with respect to
any Exercise Shares prior to the acquisition of such Exercise Shares on the
exercise of this Option as provided in this Agreement .

     9.  ADJUSTMENT OF EXERCISE SHARES AND EXERCISE PRICE.  The Exercise Price
and the number and kind of Exercise Shares purchasable upon the exercise of this
Option shall be subject to adjustment from time to time upon the happening of
certain events as provided in this Section 9.  The Exercise Price in effect at
any time and the number and

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kind of securities purchasable upon exercise of this Option also shall be
subject to adjustment as hereinafter provided.

     (a)  In the case the Company shall (i) pay a dividend or make a
distribution on its shares of Common Stock in shares of Common Stock, (ii)
subdivide or classify its outstanding Common Stock into a greater number of
shares or (iii) combine or reclassify its outstanding Common Stock into a
smaller number of shares, the Exercise Price in effect at the time of the record
date for such dividend or distribution or of the effective date of such
subdivision, classification, combination or reclassification shall be
proportionally adjusted so that the Employee, upon any exercise of this Option
immediately thereafter shall be entitled to receive the aggregate number and
kind of shares which, if this Option had been exercised by such Employee
immediately prior to such date, he would have owned upon such exercise and been
entitled to receive upon such dividend, subdivision, classification, combination
or reclassification. For example, if the Company declares a 2 for 1 stock
dividend or stock split and the Exercise Price immediately prior to such event
was $5.00 per share, the adjusted Exercise Price immediately after such event
would be $2.50 per share, and as a result, the number of Option Shares would
double.  Such adjustment shall be made successively whenever any event listed
above shall occur.

     (b)  In case the Company shall hereafter issue rights or warrants to all
holders of its Common Stock entitling them to subscribe for or purchase shares
of Common Stock (or securities convertible into Common Stock) at a price (or
having a conversion price per share) less than the current market price of the
Common Stock (as defined in the subsection (d) below) on the record date
mentioned below, the Exercise Price shall be adjusted so that the same shall
equal the price determined by multiplying the Exercise Price in effect
immediately prior to the date of such issuance by a fraction, the numerator of
which shall be the sum of the number of shares of Common Stock outstanding on
the record date mentioned below and the number of additional shares of Common
Stock which the aggregate offering price of the total number of shares of Common
Stock so offered (or the aggregate conversion price of the convertible
securities so offered) would purchase at such current market price per share of
the Common Stock, and the denominator of which shall be the sum of the number of
shares of Common Stock outstanding on such record date and the number of
additional shares of Common Stock offered for subscription or purchase (or into
which the convertible securities so offered are convertible).  Such adjustment
shall be made successively whenever such rights or warrants are issued and shall
become effective immediately after the record date for the determination of
shareholders entitled to receive such rights or warrants; and to the extent that
shares of Common Stock are not delivered (or securities convertible into Common
Stock are not delivered) after the expiration of such rights or warrants the
Exercise Price shall be readjusted to the Exercise Price which would then be in
effect had the adjustments made upon the issuance of such rights or warrants
been made upon the basis of delivery of only the number of shares of Common
Stock (or securities convertible into Common Stock) actually delivered.

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     (c)  Whenever the Exercise Price payable upon exercise of this Option is
adjusted pursuant to the provisions of (a) or (b) above, the number of Exercise
Shares purchasable upon exercise of this Option shall simultaneously be adjusted
by multiplying the number of Exercise Shares initially issuable upon exercise of
this Option by the Exercise Price in effect on the date hereof and dividing the
product so obtained by the Exercise Price, as adjusted.

     (d)  For the purpose of any computation under the subsection above, the
current market price per share of Common Stock at any date shall be deemed to be
the average of the daily closing prices for 30 consecutive business days before
such date.  The closing price for each day shall be the last sale price (regular
way) or, in case no such reported sale takes place on such day, the average of
the last reported bid and lowest reported asked prices as reported by NASDAQ, or
other similar organization if NASDAQ is no longer reporting such information, or
if not so available, the fair market price as determined by the Board of
Directors.

     (e)  No adjustment in the Exercise Price shall be required unless such
adjustment would require an increase or decrease of at least one cent ($0.01) in
such price; provided, however, that any adjustments which by reason of the
provisions of this sentence are not required to be made shall be carried forward
and taken into account in any subsequent adjustment required to be made
hereunder.  All calculations under this Section 9 shall be made to the nearest
cent or to the nearest one-hundredth of a share, as the case may be.  Anything
in this section to the contrary notwithstanding, the Company shall be entitled,
but shall not be required, to make such changes in the Exercise Price, in
addition to those required by this Section 9 as it, in its sole discretion,
shall determine to be advisable in order that any dividend or distribution in
shares of Common Stock, subdivision, classification, reclassification or
combination of Common Stock, issuance of warrants or options or other rights to
acquire Common Stock or distribution of evidences of indebtedness or other
assets (excluding cash dividends) referred to hereinabove in this Section 9
hereafter made by the Company to the holders of its Common Stock shall not
result in any tax to the holders of its Common Stock or securities convertible
into Common Stock.

     (f)  Whenever the Exercise Price is adjusted, as herein provided, the
Company shall promptly cause a notice setting forth the adjusted Exercise Price
and adjusted number of Shares issuable upon exercise of this Option to be mailed
to the Employee, at the address set forth in this Agreement for notice, and
shall cause a certified copy thereof to be mailed to its transfer agent, if any.
The Company may retain a firm of independent certified public accountants
selected by the Board of Directors (who may be the regular accountants employed
by the Company) to make any computation required by this Section 9, and a
certificate signed by such firm shall be conclusive evidence of the correctness
of such adjustment.

     (g)  In the event that at any time, as a result of an adjustment made
pursuant to this Section 9, the Employee thereafter shall become entitled to
receive any Exercise Shares of

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the Company other than Common Stock, thereafter the number of such other shares
so receivable upon exercise of this Option shall be subject to adjustment from
time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in this Section 9.

     10.  RESTRICTIONS ON EXERCISE AND TRANSFERABILITY.  This Option, and the
rights of Employee under this Agreement, shall be exerciseable only by the
Employee or, upon his death or disability, by his estate or any duly appointed
guardian, executor, administrator, trustee or other legal representative(s), and
shall not be transferred or assigned to any other party other than Employee's
estate upon his death.

     11.  RESTRICTIVE LEGENDS.  So long as an exemption therefrom is then
available, the Company shall not be required by the terms of this Agreement to
register, under the Securities Act of 1933, as amended (the "Act"), or under
applicable state securities laws (together with the Act, the "Securities Laws"),
any of the Exercise Shares issued or to be issued upon the exercise of the
Option.  In addition, in the event that any such Exercise Shares are not so
registered, Employee consents to the placement on the certificate or
certificates representing such Exercise Shares a legend or legends to the effect
that, among other things, neither such certificate or certificates nor the
Exercise Shares evidenced thereby have been registered under any Securities Laws
and that no sale, transfer or other disposition thereof or any interest therein
may be made or shall be recognized unless in the satisfactory written opinion of
counsel for, or satisfactory to, the Company, such transaction would not violate
or required registration under such Securities Laws.  The Company may also place
on such certificate or certificates any other legend it deems necessary or
desirable in order to conform to any of the Securities Laws.

     12.  CERTAIN REGISTRATION RIGHTS.  If at any time prior to the Termination
Date the Company registers under the Act any shares of Common Stock to be issued
to an executive officer of the Company or any of its subsidiaries upon exercise
of an option (a "Management Option") to acquire such shares of Common Stock
granted in connection with such person's employment with the Company or any of
its subsidiaries as an executive officer, then the Company shall offer in
writing to Employee a corresponding right to receive shares of Common Stock that
are registered under the Act upon the exercise of any of Employee's then vested
and unexercised shares of Common Stock under this Agreement upon similar terms
and provisions as those offered to such other executive officer.  In addition,
if at any time prior to the Termination Date the Company offers to register any
of such other executive officer's outstanding shares of Common Stock that were
issued to him upon exercise of a Management Option, then the Company shall offer
in writing to Employee at the same time a corresponding right to cause the
Company to register any of the Employee's then outstanding shares of Common
Stock that were issued to him upon exercise of the Option granted under this
Agreement.  The rights granted in favor of Employee under this Section 12:  (a)
shall be as equal in nature to the rights granted in favor of such other
executive officer as is reasonably practicable, (b) shall relate to a
proportionate number of Employee's shares of Common Stock as the Board of
Directors of the Company deems reasonable and (c) shall be subject to such other

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reasonable terms and conditions as the Board of Directors of the Company may
then impose.

     13.  NOTICES.  All notices or other communications under or relating to
this Agreement shall be in writing and shall be deemed to have been given if
delivered by hand or mailed by certified mail, postage prepaid, return receipt
request, addressed as follows:

     If to the Company:

            North American Technologies Group, Inc.
            4710 Bellaire Blvd., Suite 301
            Bellaire, Texas 77401
            Attn:  Corporate Secretary

     If to the Employee:

            _________________________
           c/o ______________________
               ______________________
               ______________________

Either of the Company or the Employee may from time to time change the address
to which notices to it are to be mailed hereunder by notice in accordance with
the provisions of this Section.

     14.  AMENDMENTS.  This Agreement may be amended or supplement only by a
writing signed by both parties hereto.

     15.  SUCCESSORS AND ASSIGNS.  Subject to the provisions of Section 10
hereof, this Agreement shall inure to the benefit of and be binding on the
respective successors, assigns and legal representatives of the Employee and the
Company.

     16.  SEVERABILITY.  If for any reason any provision, paragraph or terms of
this Agreement is held to be invalid or unenforceable, all other valid
provisions herein shall remain in full force and effect and all terms,
provisions and Sections of this Agreement shall be deemed to be severable.

     17.  GOVERNING LAW.  To the full extent controllable by stipulation of the
Company and Employee, this Agreement shall be interpreted and enforced under
Texas law.

     18.  HEADINGS.  Headings used herein are included herein for convenience of
reference only and shall not affect the construction of this Agreement or
constitute a part of this Agreement for any other purpose.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed the day and year first set out above.


"Company"        NORTH AMERICAN TECHNOLOGIES
                 GROUP, INC.

                 By:_______________________________________
                    Tim B. Tarrillion
                    President and Chief Executive Officer

"Employee"       __________________________________________
                 [insert Employee's name]

                 __________________________________________

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                                  APPENDIX A

                        NOTICE OF STOCK OPTION EXERCISE

     Pursuant to that certain Stock Option Agreement, dated as of
______________, as amended to date (the "Agreement"), by and between North
American Technologies Group, Inc., a Delaware corporation (the "Company"), and
the undersigned, and subject to the vesting periods set forth therein, the
undersigned hereby irrevocably elects to exercise an option to acquire
________________ shares of ______________________, at an exercise price of $____
per share, or an aggregate purchase price of $__________.  Enclosed herewith is
a certified check or cashier's check made payable to the order of the Company in
the amount of the aggregate purchase price set forth in the preceding sentence
[or, if, applicable:  "; provided, however, that $________ of such purchase
price therefor is hereby paid by the delivery to the Company of ______ shares of
Common Stock represented by certificate no(s) ___________, duly endorsed for
transfer or accompanied by a blank stock power, all in accordance with the terms
and provisions of the Agreement"].  Each capitalized terms used herein, unless
otherwise defined, has the meaning given such term in the Agreement.

     The undersigned hereby represents and agrees that the Exercise Shares
purchased pursuant hereto are being purchased for investment and not with a view
to the distribution or resale thereof, and that the undersigned understands that
said Exercise Shares have not been registered under the Securities Laws.

     The undersigned requests that a certificate for the Exercise Shares be
issued in the name of:
     ______________________________________
     ______________________________________
     ______________________________________
     [Please print name, address]
 
Address of Employee (if different from above):

     _________________________________
     _________________________________
     _________________________________

Dated:__________________

Name of Employee:     _________________________________
Employee's Signature:  _________________________________

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