Document:

EXHIBIT 4.26

                              GSSF MASTER FUND L.P.

                          ----------------------------
                          ----------------------------

                                September 7, 2005

Omaha Holdings Corp.
450 Las Olas Boulevard, Suite 1100
Fort Lauderdale, Florida 33301

North Texas Steel Company, Inc.
412 West Bolt Street
Fort Worth, Texas 76110

American Technologies Group, Inc.
1110 S. Fifth Avenue
Monrovia, California  91016

      Re: Common Stock of American Technologies Group, Inc.

Ladies and Gentlemen:

      Reference  is made to (a) the  Security  Agreement  dated  as of the  date
hereof (as the same may be amended, supplemented, restated or modified from time
to time, the "Security  Agreement") by and among GSSF Master Fund L.P.  ("GSSF")
and American  Technologies Group, Inc. ("ATG") and its subsidiary Omaha Holdings
Corp. ("Omaha") and Omaha's subsidiary North Texas Steel Company,  Inc. ("NTSC",
together  with  Omaha  and  ATG,  each  a  "Company"   and   collectively,   the
"Companies"),  and (b) the  Ancillary  Agreements  (as  defined in the  Security
Agreement)  and all other  documents,  instruments  and  agreements  executed in
connection  therewith  (together  with the Security  Agreement and the Ancillary
Agreement,  collectively,  the "Documents").  All capitalized terms used but not
otherwise  defined  herein  have  the  meanings  given  to them in the  Security
Agreement.

      By your signatures below, each Company agrees that, until such time as the
shareholders of ATG approve an increase in the amount of authorized common stock
of ATG to an  aggregate  amount of not less than  15,000,000,000  shares,  which
amount  shall  be  sufficient  to  provide  for the  conversion  of the Note and
exercise of the Options and the Warrants, each reference in the Documents to the
issuance of shares of common stock of ATG to Gryphon shall be deemed to refer to
the  issuance  of  shares  of  Series F  Convertible  Preferred  Stock of ATG to
Gryphon,  in each  case,  in an amount  equal to the  number of shares of common
stock of ATG referred to therein  divided by 10,000,  at a price  multiplied  by
10,000.

                                  Page 1 of 2
<PAGE>

      Except as expressly provided herein, nothing contained herein shall act as
a waiver or excuse of performance of any obligations contained in the Documents.
No waiver, modification or amendment of any provision of this agreement shall be
effective unless specifically made in writing and duly signed by the party to be
bound  thereby.  This letter  agreement  shall be governed by and  construed  in
accordance with the laws of the State of New York.

                                          Very truly yours,

                                          GSSF MASTER FUND L.P.

                                          By:________________________________
                                             Name:
                                             Title:

The foregoing is hereby accepted and agreed to
as of the date set forth above:

NORTH TEXAS STEEL COMPANY, INC.

By:___________________________
         Name:
         Title:

OMAHA HOLDINGS CORP.

By:___________________________
         Name:
         Title:

AMERICAN TECHNOLOGIES GROUP, INC.

By:___________________________
         Name:
         Title:

                                  Page 2 of 2EXHIBIT 4.27

               CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS

                                       OF

                      SERIES F CONVERTIBLE PREFERRED STOCK

                                       OF

                        AMERICAN TECHNOLOGIES GROUP, INC.

                    (Pursuant to the Nevada Revised Statutes)

      American  Technologies  Group, Inc., a corporation  organized and existing
under the laws of the State of Nevada (the  "Company"),  hereby  certifies that,
pursuant to authority vested in the Board of Directors of the Company by Article
IV of the Articles of Incorporation of the Company, the following resolution was
adopted  as of  September  6,  2005 by the  Board of  Directors  of the  Company
pursuant to the Nevada Revised Statutes:

      "RESOLVED that,  pursuant to authority vested in the Board of Directors of
the Company by Article IV of the Company's Articles of Incorporation, out of the
total authorized  number of 50,000,000  shares of its preferred stock, par value
$0.001 per share  ("Preferred  Stock"),  there shall be  designated  a Series of
900,000  shares which shall be issued in and  constitute  a single  series to be
known as "Series F Convertible  Preferred Stock" (hereinafter called the "Series
F  Preferred  Stock").  The shares of Series F  Preferred  Stock have the voting
powers, designations,  preferences and other special rights, and qualifications,
limitations and restrictions thereof set forth below:

      1. Certain Definitions.

      As used in this Articles of Designations, Preferences and Rights of Series
F  Convertible  Preferred  Stock  of  American  Technologies  Group,  Inc.,  the
following terms shall have the respective meanings set forth below:

      "Affiliate",  as applied to any Person, means any other Person directly or
indirectly  controlling,  controlled  by, or under  common  control  with,  that
Person.  For  the  purposes  of  this  definition,  "control"  (including,  with
correlative meanings, the terms "controlling", "controlled by" and "under common
control  with"),  as applied to any Person,  means the  possession,  directly or
indirectly,  of the power to direct or cause the direction of the management and
policies of that Person,  whether through the ownership of voting  securities or
by contract or otherwise.

      "Common Stock" means the common stock,  $0.001 par value per share, of the
Company,  including  the  stock  into  which  the  Series F  Preferred  Stock is
convertible, and any securities into which the Common Stock may be reclassified.

                                      -1-
<PAGE>

      "Excluded  Stock" means (A) capital stock,  Options (as defined in Section
4E(1)) or  Convertible  Securities  (as  defined  in  Section  4E(1))  issued to
employees,  consultants,  officers or directors  of the Company  pursuant to any
stock or option plan duly adopted by a majority of the  non-employee  members of
the  Board of  Directors  of the  Company  or a  majority  of the  members  of a
committee of non-employee  directors established for such purpose, (B) shares of
Common Stock issued upon the  conversion  or exercise of Options or  Convertible
Securities  issued  prior to the date the  Series F  Preferred  Stock is issued,
provided that such securities  have not been amended since the date hereof,  (C)
capital stock or Convertible  Securities  issued to a lender in connection  with
the  provision of credit to the Company and (D) shares of Common Stock issued or
issuable by reason of a dividend, stock split or other distribution on shares of
Common Stock (but only to the extent that such a dividend, split or distribution
results  in an  adjustment  in  the  Conversion  Price  pursuant  to  the  other
provisions of this Series F Preferred Stock).

      "Person"  shall be construed in the broadest  sense and means and includes
any natural person, a partnership, a corporation,  an association, a joint stock
company,   a  limited  liability   company,   a  trust,  a  joint  venture,   an
unincorporated    organization    and   other   entity   or    governmental   or
quasi-governmental entity.

      "Series F Stated  Value"  means  $2.2223  (appropriately  adjusted for any
stock split,  reverse stock split, stock dividend or other  reclassification  or
combination of the Series F Preferred Stock occurring after the date hereof).

      "Subsidiary"  means any corporation,  association or other business entity
(i) at least 50% of the outstanding  voting  securities of which are at the time
owned or  controlled,  directly  or  indirectly,  by the  Company;  or (ii) with
respect to which the Company  possesses,  directly or  indirectly,  the power to
direct or cause the direction of the affairs or management of such Person.

      2. Dividends.

      (a) In the event that the Company  shall at any time pay a dividend on the
Common Stock (other than a dividend payable solely in shares of Common Stock) or
any other class or series of capital stock of the Company the Company shall,  at
the same time,  pay to each holder of Series F Preferred  Stock a dividend equal
to the  dividend  that would have been  payable to such  holder if the shares of
Series F  Preferred  Stock held by such  holder had been  converted  into Common
Stock on the date of  determination  of  holders  of Common  Stock  entitled  to
receive such dividends.

      3. Liquidation;  Redemption. Upon any liquidation,  dissolution or winding
up of the Company,  whether voluntary or involuntary,  the holders of the shares
of Series F  Preferred  Stock shall rank (i) senior to the holders of the Common
Stock and shall be entitled to be paid an amount per share equal to the Series F
Stated  Value  plus  any  accrued  and  unpaid   dividends   (the   "Liquidation
Preference").  If  upon  such  liquidation,  dissolution  or  winding  up of the
Company,  whether  voluntary or involuntary,  the assets to be distributed among
the holders of the Series F  Preferred  Stock and any class or series of capital
stock  ranking  on a  parity  with  the  Series  F  Preferred  Stock  as to such
distributions  shall be  insufficient  to permit  payment to the  holders of the
Series F Preferred  Stock and any such class or series of capital stock of their
respective  liquidation  amount,  then the  entire  assets of the  Company to be
distributed  shall be distributed  pro rata to the holders of Series F Preferred
Stock and the  holders  of such class or series of  capital  stock  ranking on a
parity with the Series F Preferred Stock as to such  distributions  according to
the preferential amounts due thereon.

                                      -2-
<PAGE>

      4. Conversion.

            4A.  Optional Right to Convert.  Subject to the terms and conditions
      of this  paragraph  4A,  the  holder  of any  share or  shares of Series F
      Preferred  Stock  shall  have the  right,  at its  option at any time,  to
      convert any such  shares of Series F  Preferred  Stock into such number of
      fully paid and  nonassessable  whole shares of Common Stock as is obtained
      by multiplying  the number of shares of Series F Preferred  Stock so to be
      converted by the Liquidation  Preference per share and dividing the result
      by the  conversion  price of  $.0011  per  share  or, if there has been an
      adjustment  of the  conversion  price,  by the  conversion  price  as last
      adjusted  and in  effect  at the date  any  share or  shares  of  Series F
      Preferred Stock are surrendered for conversion  (such price, or such price
      as last  adjusted,  being referred to herein as the  "Conversion  Price").
      Holders shall effect conversions by providing the Company with the form of
      conversion  notice attached hereto as Annex A (a "Notice of  Conversion");
      provided,  however, in the event that the Company does not have authorized
      shares  available for issuance,  then the holder of any share or shares of
      Series F Preferred  Stock shall only be entitled to convert into shares of
      common  stock  pursuant  to this  Section 4A to the extent  that there are
      authorized  shares of common stock available for issuance.  Each Notice of
      Conversion  shall specify the number of shares of Series F Preferred Stock
      to be  converted,  the number of shares of Preferred  Stock owned prior to
      the conversion at issue,  the number of shares of Series F Preferred Stock
      owned  subsequent  to the  conversion  at issue and the date on which such
      conversion is to be effected,  which date may not be prior to the date the
      Holder delivers such Notice of Conversion to the Company by facsimile (the
      "Conversion  Date").  If no  Conversion  Date is  specified in a Notice of
      Conversion,  the  Conversion  Date  shall be the date that such  Notice of
      Conversion to the Company is deemed delivered hereunder. .

            4B. Intentionally Left Blank.

            4C. Issuance of Certificates;  Time Conversion Effected. Within five
      business  days after the  optional  conversion  of the Series F  Preferred
      Stock  pursuant  to  Section  4A  and  surrender  of  the  certificate  or
      certificates for the share or shares of the Series F Preferred Stock being
      converted,  the Company shall issue and deliver, or cause to be issued and
      delivered, to the holder,  registered in such name or names as such holder
      may direct,  subject to compliance with applicable laws to the extent such
      designation  shall involve a transfer,  a certificate or certificates  for
      the number of whole shares of Common Stock issuable upon the conversion of
      such share or shares of Series F Preferred Stock.  Upon the effective date
      of any such conversion, the rights of the holder of the shares of Series F
      Preferred Stock being converted shall cease,  and the person or persons in
      whose name or names any certificate or  certificates  for shares of Common
      Stock  shall be  issuable  upon  such  conversion  shall be deemed to have
      become the holder or holders of record of the shares represented thereby.

                                      -3-
<PAGE>

            4D. Fractional Shares; Dividends;  Partial Conversion. No fractional
      shares shall be issued upon any conversion of the Series F Preferred Stock
      into Common  Stock,  and the number of shares of Common Stock to be issued
      shall be rounded down to the nearest  whole  share.  In case the number of
      shares of Series F  Preferred  Stock  represented  by the  certificate  or
      certificates  surrendered  pursuant to subsection 4A exceeds the number of
      shares  converted,  the Company  shall upon such  conversion,  execute and
      deliver  to the  holder  thereof  at the  expense  of the  Company,  a new
      certificate  for  the  number  of  shares  of  Series  F  Preferred  Stock
      represented by the certificate or certificates  surrendered  which are not
      to be converted.

            4E.  Adjustment of Conversion  Price.  If the Company shall issue or
      sell, or is, in  accordance  with  subsections  4E(1) through 4E(8) below,
      deemed  to have  issued or sold,  any  Additional  Shares of Common  Stock
      without  consideration  or for a  consideration  per  share  less than the
      Conversion Price in effect  immediately prior to the time of such issue or
      sale, then and in each such case (a "Trigger  Issuance") the then-existing
      Conversion  Price,  shall be  reduced,  as of the close of business on the
      effective date of the Trigger Issuance, to a price determined as follows:

            Adjusted Conversion Price = (A x B) + D
                                        ------------
                                           A + C

            where

            "A"  equals  the  number  of shares  of  Common  Stock  outstanding,
      including  Additional  Shares of Common Stock (as defined below) deemed to
      be issued hereunder, immediately preceding such Trigger Issuance;

            "B" equals the Conversion Price in effect immediately preceding such
      Trigger Issuance;

            "C" equals the number of Additional Shares of Common Stock issued or
      deemed issued hereunder as a result of the Trigger Issuance; and

            "D" equals the aggregate  consideration,  if any, received or deemed
      to be received by the Company upon such Trigger Issuance;

provided,  however,  that in no event shall the  Conversion  Price after  giving
effect to such Trigger  Issuance be greater than the Conversion  Price in effect
prior to such Trigger Issuance.

      For purposes of this  subsection 4E,  "Additional  Shares of Common Stock"
shall  mean all  shares of Common  Stock  issued by the  Company or deemed to be
issued pursuant to this subsection 4E, other than Excluded Stock.

                                      -4-
<PAGE>

      For purposes of this  subsection  4E, the  following  paragraphs  4E(1) to
4E(8) shall also be applicable:

            4E(1) Issuance of Rights or Options. In case at any time the Company
      shall in any manner grant  (directly  and not by assumption in a merger or
      otherwise)  any warrants or other rights to subscribe  for or to purchase,
      or any options for the purchase of,  Common Stock or any stock or security
      convertible into or exchangeable  for Common Stock (such warrants,  rights
      or options being called  "Options" and such  convertible  or  exchangeable
      stock or securities being called "Convertible  Securities") whether or not
      such  Options  or the right to convert or  exchange  any such  Convertible
      Securities are immediately exercisable,  and the price per share for which
      Common  Stock is issuable  upon the  exercise of such  Options or upon the
      conversion  or  exchange of such  Convertible  Securities  (determined  by
      dividing  (i)  the  sum  (which  sum  shall   constitute   the  applicable
      consideration)  of (x) the total amount, if any, received or receivable by
      the Company as  consideration  for the granting of such Options,  plus (y)
      the aggregate  amount of additional  consideration  payable to the Company
      upon the  exercise  of all such  Options,  plus  (z),  in the case of such
      Options which relate to Convertible  Securities,  the aggregate  amount of
      additional  consideration,  if any, payable upon the issue or sale of such
      Convertible  Securities  and upon the conversion or exchange  thereof,  by
      (ii) the total maximum  number of shares of Common Stock issuable upon the
      exercise of such  Options or upon the  conversion  or exchange of all such
      Convertible  Securities  issuable upon the exercise of such Options) shall
      be less than the Conversion Price in effect  immediately prior to the time
      of the granting of such Options, then the total number of shares of Common
      Stock  issuable  upon the exercise of such Options or upon  conversion  or
      exchange of the total amount of such Convertible  Securities issuable upon
      the exercise of such Options  shall be deemed to have been issued for such
      price per share as of the date of granting of such Options or the issuance
      of such  Convertible  Securities  and  thereafter  shall be  deemed  to be
      outstanding  for purposes of adjusting  the  Conversion  Price.  Except as
      otherwise  provided in subsection  4E(3),  no adjustment of the Conversion
      Price shall be made upon the actual  issue of such Common Stock or of such
      Convertible  Securities  upon  exercise of such Options or upon the actual
      issue of such Common Stock upon conversion or exchange of such Convertible
      Securities.

            4E(2) Issuance of Convertible Securities.  In case the Company shall
      in any  manner  issue  (directly  and not by  assumption  in a  merger  or
      otherwise) or sell any Convertible  Securities,  whether or not the rights
      to exchange or convert any such  Convertible  Securities  are  immediately
      exercisable,  and the price per share for which  Common  Stock is issuable
      upon such  conversion  or exchange  (determined  by  dividing  (i) the sum
      (which sum shall constitute the applicable consideration) of (x) the total
      amount  received or  receivable  by the Company as  consideration  for the
      issue  or sale of such  Convertible  Securities,  plus  (y) the  aggregate
      amount of additional  consideration,  if any,  payable to the Company upon
      the conversion or exchange thereof,  by (ii) the total number of shares of
      Common  Stock  issuable  upon  the  conversion  or  exchange  of all  such
      Convertible  Securities) shall be less than the Conversion Price in effect
      immediately  prior to the  time of such  issue  or  sale,  then the  total
      maximum  number of shares of Common  Stock  issuable  upon  conversion  or
      exchange of all such  Convertible  Securities shall be deemed to have been
      issued  for such  price  per  share as of the date of the issue or sale of
      such  Convertible   Securities  and  thereafter  shall  be  deemed  to  be
      outstanding for purposes of adjusting the Conversion Price,  provided that
      (a) except as otherwise provided in subsection 4E(3), no adjustment of the
      Conversion  Price  shall be made upon the actual  issuance  of such Common
      Stock upon conversion or exchange of such  Convertible  Securities and (b)
      no further  adjustment of the Conversion  Price shall be made by reason of
      the issue or sale of Convertible  Securities  upon exercise of any Options
      to purchase any such Convertible  Securities for which  adjustments of the
      Conversion  Price  have been made  pursuant  to the  other  provisions  of
      subsection 4E.

                                      -5-
<PAGE>

            4E(3) Change in Option Price or Conversion  Rate. Upon the happening
      of any of the following events, namely, if the purchase price provided for
      in any Option  referred to in  subsection  4E(l)  hereof,  the  additional
      consideration,  if any,  payable  upon the  conversion  or exchange of any
      Convertible  Securities  referred to in subsections 4E(l) or 4E(2), or the
      rate at which Convertible  Securities  referred to in subsections 4E(l) or
      4E(2) are convertible  into or exchangeable  for Common Stock shall change
      at any time (including,  but not limited to, changes under or by reason of
      provisions designed to protect against dilution),  the Conversion Price in
      effect at the time of such event  shall  forthwith  be  readjusted  to the
      Conversion  Price  which  would  have been in effect at such time had such
      Options or  Convertible  Securities  still  outstanding  provided for such
      changed  purchase price,  additional  consideration or conversion rate, as
      the case may be, at the time  initially  granted,  issued or sold.  On the
      termination  of any Option for which any  adjustment  was made pursuant to
      this  subsection  4(D) or any right to  convert  or  exchange  Convertible
      Securities for which any  adjustment was made pursuant to this  subsection
      4(D)  (including  without  limitation  upon the redemption or purchase for
      consideration  of  such  Convertible   Securities  by  the  Company),  the
      Conversion  Price then in effect  hereunder  shall forthwith be changed to
      the  Conversion  Price which would have been in effect at the time of such
      termination  had such  Option or  Convertible  Securities,  to the  extent
      outstanding immediately prior to such termination, never been issued.

            4E(4) Stock Dividends.  Subject to the provisions of this subsection
      4E,  in case the  Company  shall  declare  a  dividend  or make any  other
      distribution  upon any stock of the Company  (other than the Common Stock)
      payable in Common  Stock,  Options  or  Convertible  Securities,  then any
      Common  Stock,  Options  or  Convertible  Securities,  as the case may be,
      issuable in payment of such  dividend or  distribution  shall be deemed to
      have been issued or sold without consideration.

            4E(5)  Consideration  for Stock. In case any shares of Common Stock,
      Options or  Convertible  Securities  shall be issued or sold for cash, the
      consideration  received  therefor  shall be  deemed  to be the net  amount
      received  by  the  Company  therefor,  after  deduction  therefrom  of any
      expenses  incurred or any underwriting  commissions or concessions paid or
      allowed by the  Company  in  connection  therewith.  In case any shares of
      Common Stock,  Options or Convertible  Securities  shall be issued or sold
      for a consideration other than cash, the amount of the consideration other
      than cash  received by the Company shall be deemed to be the fair value of
      such  consideration  as determined in good faith by the Board of Directors
      of  the  Company,   after  deduction  of  any  expenses  incurred  or  any
      underwriting  commissions or concessions paid or allowed by the Company in
      connection  therewith.  In case any Options  shall be issued in connection
      with the  issue  and sale of other  securities  of the  Company,  together
      comprising one integral transaction in which no specific  consideration is
      allocated to such Options by the parties  thereto,  such Options  shall be
      deemed to have been issued for such  consideration  as  determined in good
      faith by the Board of Directors of the Company.  If Common Stock,  Options
      or Convertible  Securities  shall be issued or sold by the Company and, in
      connection  therewith,   other  Options  or  Convertible  Securities  (the
      "Additional Rights") are issued, then the consideration received or deemed
      to be received by the Company shall be reduced by the fair market value of
      the  Additional  Rights  (as  determined  using the  Black-Scholes  option
      pricing model or another method  mutually agreed to by the Company and the
      holder). The Board of Directors of the Company shall respond promptly,  in
      writing,  to an inquiry by the holder as to the fair  market  value of the
      Additional Rights. In the event that the Board of Directors of the Company
      and the  holder  are  unable to agree  upon the fair  market  value of the
      Additional  Rights,  the Company and the holder  shall  jointly  select an
      appraiser,  who is  experienced  in such  matters.  The  decision  of such
      appraiser  shall be final and  conclusive,  and the cost of such appraiser
      shall be borne evenly by the Company and the holder.

                                      -6-
<PAGE>

            4E(6)  Record Date.  In case the Company  shall take a record of the
      holders  of its Common  Stock for the  purpose  of  entitling  them (i) to
      receive a dividend or other distribution  payable in Common Stock, Options
      or  Convertible  Securities  or (ii) to subscribe  for or purchase  Common
      Stock, Options or Convertible  Securities,  then such record date shall be
      deemed to be the date of the issue or sale of the  shares of Common  Stock
      deemed to have been issued or sold upon the  declaration  of such dividend
      or the making of such other  distribution  or the date of the  granting of
      such right of subscription or purchase, as the case may be.

            4E(7)  Treasury  Shares.  The  number  of  shares  of  Common  Stock
      outstanding at any given time shall not include shares owned or held by or
      for the  account of the Company or any of its  wholly-owned  subsidiaries,
      and the  disposition  of any such shares (other than the  cancellation  or
      retirement  thereof)  shall be considered an issue or sale of Common Stock
      for the purpose of this Section 4E.

            4F Stock Splits and Dividends.  If the Company shall, at any time or
      from time to time while the Series F Preferred Stock is outstanding, pay a
      dividend or make a  distribution  on its Common  Stock in shares of Common
      Stock,  subdivide  its  outstanding  shares of Common Stock into a greater
      number of shares or combine its outstanding  shares of Common Stock into a
      smaller number of shares or issue by  reclassification  of its outstanding
      shares of Common Stock any shares of its capital stock (including any such
      reclassification in connection with a consolidation or merger in which the
      Company  is the  continuing  corporation),  then the  Conversion  Price in
      effect  immediately  prior to the date upon which such change shall become
      effective  shall be adjusted by the Company so that the holder  thereafter
      converting  its shares of Series F  Preferred  Stock  shall be entitled to
      receive the number of shares of Common Stock or other  capital stock which
      such holder would have received if the shares of Series F Preferred  Stock
      had been converted immediately prior to such event. Such adjustments shall
      be made successively whenever any event listed above shall occur.

                                      -7-
<PAGE>

            4G.    Reorganization   or   Reclassification.    If   any   capital
      reorganization  or  reclassification  of the capital  stock of the Company
      shall be effected in such a way (including,  without limitation, by way of
      consolidation  or merger)  that holders of Common Stock but not holders of
      Series F Preferred Stock shall be entitled to receive stock, securities or
      assets  with  respect  to or in  exchange  for  Common  Stock  then,  as a
      condition of such reorganization or reclassification,  lawful and adequate
      provision shall be made whereby each holder of a share or shares of Series
      F Preferred  Stock shall  thereafter  have the right to receive,  upon the
      basis and upon the terms and  conditions  specified  herein and in lieu of
      the  shares  of  Common  Stock  of  the  Company  immediately  theretofore
      receivable  upon the  conversion  of such  share or shares of the Series F
      Preferred  Stock,  such  shares of stock,  securities  or assets as may be
      issued  or  payable  with  respect  to or in  exchange  for  a  number  of
      outstanding  shares of Common  Stock equal to the number of shares of such
      stock  immediately  theretofore so receivable had such  reorganization  or
      reclassification  not  taken  place  and  in  any  such  case  appropriate
      provision  shall be made with respect to the rights and  interests of such
      holder to the end that the provisions hereof (including without limitation
      provisions for  adjustments of the Conversion  Price) shall  thereafter be
      applicable,  as  nearly  as may be, in  relation  to any  shares of stock,
      securities  or assets  thereafter  deliverable  upon the  exercise of such
      conversion  rights (including an immediate  adjustment,  by reason of such
      reorganization or  reclassification,  of the Conversion Price to the value
      for the Common  Stock  reflected  by the terms of such  reorganization  or
      reclassification  if the value so  reflected  is less than the  Conversion
      Price   in   effect   immediately   prior   to  such   reorganization   or
      reclassification).  In the  event  of a  merger  or  consolidation  of the
      Company  as a result  of which a  greater  or  lesser  number of shares of
      common stock of the surviving  corporation  are issuable to holders of the
      Common Stock of the Company  outstanding  immediately prior to such merger
      or consolidation, the Conversion Price in effect immediately prior to such
      merger or  consolidation  shall be  adjusted  in the same manner as though
      there were a  subdivision  or  combination  of the  outstanding  shares of
      Common Stock of the Company.

            4H. Distributions.  In case the Company shall fix a payment date for
      the making of a distribution to all holders of Common Stock (including any
      such  distribution  made in connection with a  consolidation  or merger in
      which  the  Company  is  the  continuing   corporation)  of  evidences  of
      indebtedness  or assets (other than cash  dividends or cash  distributions
      payable out of  consolidated  earnings or earned  surplus or  dividends or
      distributions  referred to in Section 4E or F), or subscription  rights or
      warrants,  the  Conversion  Price to be in effect  after such payment date
      shall  be  determined  by  multiplying  the  Conversion  Price  in  effect
      immediately  prior to such  payment date by a fraction,  the  numerator of
      which  shall be the total  number of  shares of Common  Stock  outstanding
      multiplied  by the  Market  Price (as  defined  below) per share of Common
      Stock  immediately  prior to such payment date, less the fair market value
      (as determined by the Company's  Board of Directors in good faith) of said
      assets  or  evidences  of  indebtedness   so   distributed,   or  of  such
      subscription rights or warrants, and the denominator of which shall be the
      total  number of shares of Common  Stock  outstanding  multiplied  by such
      Market Price per share of Common Stock  immediately  prior to such payment
      date.  "Market Price" as of a particular date (the "Valuation Date") shall
      mean the  following:  (a) if the Common Stock is then listed on a national
      stock  exchange,  the closing  sale price of one share of Common  Stock on
      such exchange on the last trading day prior to the Valuation  Date; (b) if
      the  Common  Stock  is  then  quoted  on The  Nasdaq  Stock  Market,  Inc.
      ("Nasdaq"),  the National  Association  of  Securities  Dealers,  Inc. OTC
      Bulletin  Board  (the  "Bulletin  Board")  or  such  similar  exchange  or
      association,  the  closing  sale  price of one  share of  Common  Stock on
      Nasdaq,  the Bulletin  Board or such other  exchange or association on the
      last trading day prior to the  Valuation  Date or, if no such closing sale
      price is  available,  the  average of the high bid and the low asked price
      quoted thereon on the last trading day prior to the Valuation Date; or (c)
      if the Common  Stock is not then  listed on a national  stock  exchange or
      quoted  on  Nasdaq,   the  Bulletin   Board  or  such  other  exchange  or
      association,  the fair market value of one share of Common Stock as of the
      Valuation  Date,  shall  be  determined  in good  faith  by the  Board  of
      Directors of the Company and the holders of a majority of the  outstanding
      Series F  Preferred  Stock.  If the Common  Stock is not then  listed on a
      national securities exchange, the Bulletin Board or such other exchange or
      association, the Board of Directors of the Company shall respond promptly,
      in writing, to an inquiry by a holder of Series F Preferred Stock prior to
      the  exercise  hereunder  as to the fair market value of a share of Common
      Stock as determined by the Board of Directors of the Company. In the event
      that the Board of  Directors  of the  Company  and the holders of at least
      62.5% of the outstanding Series F Preferred Stock are unable to agree upon
      the fair market  value in respect of subpart  (c) hereof,  the Company and
      the holders of a majority  of the  outstanding  Series F  Preferred  Stock
      shall jointly select an appraiser, who is experienced in such matters. The
      decision of such appraiser shall be final and conclusive,  and the cost of
      such  appraiser  shall be borne  equally by the Company and such  holders.
      Such adjustment shall be made successively whenever such a payment date is
      fixed.

                                      -8-
<PAGE>

            4I.  Effective Date of  Adjustment.  An adjustment to the Conversion
      Price shall  become  effective  immediately  after the payment date in the
      case of each dividend or distribution and immediately  after the effective
      date of each other event which requires an adjustment.

            4J.  Subsequent  Adjustments.  In the event that,  as a result of an
      adjustment  made pursuant to this Section 4, holders of Series F Preferred
      Stock shall become  entitled to receive any shares of capital stock of the
      Company other than shares of Common Stock, the number of such other shares
      so receivable upon the conversion of the Series F Preferred Stock shall be
      subject  thereafter  to  adjustment  from time to time in a manner  and on
      terms as nearly  equivalent as practicable to the provisions  with respect
      to the Conversion Shares contained herein.

            4K. Notice of  Adjustment.  Upon any  adjustment  of the  Conversion
      Price,  then,  and in each such case the Company shall give written notice
      thereof by first class mail, postage prepaid,  addressed to each holder of
      shares of Series F Preferred  Stock at the address of such holder as shown
      on the books of the Company, which notice shall state the Conversion Price
      resulting  from such  adjustment,  setting forth in reasonable  detail the
      method of calculation and the facts upon which such calculation is based.

                                      -9-
<PAGE>

            4L. Other Notices. In case at any time:

            (1) the Company  shall  declare any  dividend  upon its Common Stock
      payable in cash or stock or make any other  distribution to the holders of
      its Common Stock;

            (2) the Company shall offer for subscription pro rata to the holders
      of its Common  Stock any  additional  shares of such stock of any class or
      other rights;

            (3) there shall be any capital reorganization or reclassification of
      the capital  stock of the  Company,  or a  consolidation  or merger of the
      Company with, or a sale of all or substantially all its assets to, another
      corporation; or

            (4)  there  shall  be  a  voluntary  or   involuntary   dissolution,
      liquidation or winding up of the Company;

      then,  in any one or more of said cases,  the Company shall give, by first
      class mail,  postage  prepaid,  addressed  to each holder of any shares of
      Series F  Preferred  Stock at the  address of such  holder as shown on the
      books of the  Company,  (a) at least 15 days prior  written  notice of the
      date on which the books of the Company  shall  close or a record  shall be
      taken  for such  dividend,  distribution  or  subscription  rights  or for
      determining  rights  to  vote  in  respect  of  any  such  reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding   up,   and  (b)  in  the   case  of  any   such   reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding  up, at least 15 days  prior  written  notice of the date when the
      same shall take place. Such notice in accordance with the foregoing clause
      (a) shall also specify, in the case of any such dividend,  distribution or
      subscription  rights,  the date on which the holders of Common Stock shall
      be entitled  thereto,  and such notice in  accordance  with the  foregoing
      clause  (b) shall  also  specify  the date on which the  holders of Common
      Stock shall be entitled to exchange  their Common Stock for  securities or
      other property  deliverable  upon such  reorganization,  reclassification,
      consolidation,  merger, sale,  dissolution,  liquidation or winding up, as
      the case may be.

            4L. Automatic Conversion; Reservation of Shares.

            The Series F Preferred Stock shall automatically convert into Common
      Stock,  upon the Company's  authorizing  a sufficient  number of shares of
      Common Stock and  effecting a reverse  stock split  pursuant to which each
      10,000 shares of Common Stock shall be reconstituted as one share.

            (2) The Company will at all times reserve and keep  available out of
      its authorized  Series F Preferred Stock such number of shares of Series F
      Preferred  Stock as is equal to the number of shares of Series F Preferred
      Stock then outstanding, but in any case not less than the number of shares
      stated in the second  paragraph of this  certificate,  except as otherwise
      provided  in Section  4M. All shares of Series F  Preferred  Stock,  which
      shall be so issued  shall be duly and  validly  issued  and fully paid and
      nonassessable  and free from all liens,  duties and charges arising out of
      or by reason of the  issue  thereof  (including,  without  limitation,  in
      respect of taxes).

                                      -10-
<PAGE>

            4M. No  Reissuance of Series F Preferred  Stock.  Shares of Series F
      Preferred Stock that are converted into shares of Common Stock as provided
      herein  shall be retired  and may not be  reissued  as Series F  Preferred
      Stock but may be  reissued  as all or part of another  Series F  Preferred
      Stock.

            4N.  Issue Tax. The  issuance of  certificates  for shares of Common
      Stock  upon  conversion  of the  Series F  Preferred  Stock  shall be made
      without  charge to the holders  thereof for any issuance  tax,  stamp tax,
      transfer tax, duty or charge in respect thereof, provided that the Company
      shall not be required to pay any tax,  duty or charge which may be payable
      in respect of any  transfer  involved in the  issuance and delivery of any
      certificate  in a name  other  than  that of the  holder  of the  Series F
      Preferred Stock which is being converted.

            4O. Closing of Books. The Company will at no time close its transfer
      books  against  the  transfer  of any Series F  Preferred  Stock or of any
      shares of Common  Stock  issued or  issuable  upon the  conversion  of any
      shares of Series F Preferred Stock in any manner which interferes with the
      timely  conversion of such Series F Preferred  Stock;  provided,  however,
      nothing  herein  shall be  construed  to prevent the Company  from setting
      record dates for the holders of its securities.

            5.  Voting - Series F  Preferred  Stock.  In  addition  to any class
voting rights provided by law and this Certificate of Designations,  the holders
of Series F  Preferred  Stock  shall  have the right to vote  together  with the
holders of Common  Stock as a single class on any matter on which the holders of
Common  Stock are  entitled to vote.  With  respect to the voting  rights of the
holders of the Series F Preferred Stock pursuant to the preceding sentence, each
holder of Series F  Preferred  Stock shall be entitled to vote a number of votes
equal to the  number of  shares  of  Common  Stock  into  which  their  Series F
Preferred Stock may then be converted at the Conversion Price then in effect.

            6.  Certain  Restrictions.  In  addition  to any  other  vote of the
holders  of Series F  Preferred  Stock  required  by law or by the  Articles  of
Incorporation,  without  the prior  consent of the  holders of a majority of the
outstanding  Series F Preferred  Stock,  given in person or by proxy,  either in
writing or at a special  meeting  called for that purpose,  at which meeting the
holders of the shares of such Series F Preferred  Stock shall vote together as a
class, the Company will not:

            (a)  authorize,  create,  designate,  establish or issue (whether by
      merger  or  otherwise)  (i) an  increased  number  of  shares  of Series F
      Preferred  Stock (other than shares of Series F Preferred Stock payable as
      payment-in-kind  dividends  on  outstanding  shares of Series F  Preferred
      Stock),  or (ii) any other class or series of capital stock ranking senior
      to or on parity with the Series F Preferred  Stock as to dividends or upon
      liquidation  or  reclassify  any shares of Common Stock into shares having
      any preference or priority as to dividends or upon liquidation superior to
      or on parity  with any such  preference  or priority of Series F Preferred
      Stock;

                                      -11-
<PAGE>

            (b) adopt a plan for the  liquidation,  dissolution or winding up of
      the affairs of the Company or any recapitalization plan (whether occurring
      by  merger,   consolidation  or  otherwise),  file  any  petition  seeking
      protection under any federal or state bankruptcy or insolvency law or make
      a general  assignment  for the benefit of creditors  unless the holders of
      the Series F Preferred Stock will receive an amount in cash at least equal
      to the Liquidation Preference in such transaction;

            (c) amend,  alter or repeal,  whether  by merger,  consolidation  or
      otherwise,  the Articles of Incorporation or By-laws of the Company or the
      Resolutions  contained in this Certificate of Designations of the Series F
      Preferred  Stock  and  the  powers,  preferences,   privileges,  relative,
      participating,  optional  and other  special  rights  and  qualifications,
      limitations and  restrictions  thereof,  which would adversely  affect any
      right,  preference,  privilege  or voting  power of the Series F Preferred
      Stock, or which would increase or decrease the amount of authorized shares
      of the Series F Preferred  Stock or of any other series of preferred stock
      ranking  senior to the  Series F  Preferred  Stock,  with  respect  to the
      payment of  dividends  (whether or not such series of  preferred  stock is
      cumulative  or   non-cumulative  as  to  payment  of  dividends)  or  upon
      liquidation;

            (d) agree to do any of the foregoing.

      7. No Waiver.  Except as otherwise  modified or provided  for herein,  the
holders of Series F Preferred  Stock shall also be entitled to, and shall not be
deemed to have waived, any other applicable rights granted to such holders under
the Nevada Revised Statutes.

      8. No  Impairment.  The  Company  will not,  through  any  reorganization,
transfer of assets,  merger,  dissolution,  issue or sale of  securities  or any
other voluntary action,  avoid or seek to avoid the observance or performance of
any of the terms to be observed or  performed  hereunder by the Company but will
at all times in good  faith  assist in the  carrying  out of all the  provisions
hereunder  and in the  taking  of  all  such  action  as  may  be  necessary  or
appropriate  in  order  to  protect  the  conversion   rights  and   liquidation
preferences  granted  hereunder  of the holders of the Series F Preferred  Stock
against impairment.

      9.  Amendment;  Waiver.  Any term of the Series F  Preferred  Stock may be
amended or waived (including the adjustment  provisions included in Section 4(D)
hereof) upon the written consent of the Company and the holders of a majority of
the Series F Preferred Stock then outstanding; provided, however that the number
of Conversion  Shares  issuable  hereunder and the  Conversion  Price may not be
amended,  and the  right to  convert  the  Series F  Preferred  Stock may not be
altered or waived,  without  the  written  consent of the  holders of all of the
Series F Preferred Stock then outstanding.

                                      -12-
<PAGE>

      10.  Action By Holders.  Any action or consent to be taken or given by the
holders of the Series F Preferred  Stock may be given either at a meeting of the
holders of the Series F Preferred  Stock  called and held for such purpose or by
written consent.

                            [Execution Page Follows]

                                      -13-
<PAGE>

      IN WITNESS  WHEREOF,  the  undersigned  has executed this  Certificate  of
Designations, Preferences and Rights this 6th day of September, 2005.

                                             AMERICAN TECHNOLOGIES GROUP, INC.

                                             By: Dr. Gary Fromm
                                             Name: Dr. Gary Fromm
                                             Title: CEO

                                      -14-
<PAGE>

                                     ANNEX A

                              NOTICE OF CONVERSION

(To be Executed by the Registered  Holder in order to convert shares of Series F
Convertible Preferred Stock)

The  undersigned  hereby  elects  to  convert  the  number of shares of Series F
Convertible  Preferred Stock indicated  below,  into shares of common stock, par
value $0.001 per share (the "Common  Stock"),  of American  Technologies  Group,
Inc., a Nevada corporation (the "Company"),  according to the conditions hereof,
as of the date written below. If shares are to be issued in the name of a person
other than undersigned, the undersigned will pay all transfer taxes payable with
respect  thereto and is delivering  herewith such  certificates  and opinions as
reasonably  requested  by the Company in  accordance  therewith.  No fee will be
charged to the holder for any  conversion,  except for such transfer  taxes,  if
any.

Conversion calculations:

      Date to Effect Conversion

      -----------------------------------------

      Number of shares of Series F Preferred Stock owned prior to Conversion

      -----------------------------------------

      Number of shares of Series F Preferred Stock to be Converted

      -----------------------------------------

      Series F  Stated  Value  of  shares  of  Series  F  Preferred  Stock to be
      Converted

      -----------------------------------------
      Number of shares of Common Stock to be Issued

      -----------------------------------------

      Applicable Set Price

      -----------------------------------------

      Number of shares of Series F Preferred Stock subsequent to Conversion

      -----------------------------------------

                                                     [HOLDER]

                                                     By:_______________________
                                                        Name:
                                                        Title:

                                      -15-

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