Document:

Securities Agreement

 EXHIBIT 10.2 
  
 SECURITY AGREEMENT 
  
 This Agreement, dated effective as of December 31, 2002, is made by North American Technologies Group, Inc. for the benefit of Avalanche Resources, Ltd.

  

	1.	 	Identification/Grant. 

  
 (a)    Debtor’s name and mailing address are: 
  
 North American Technologies Group, Inc. 
 14315 West Hardy Road 
 Houston, Texas 77060 
  
  
 (b)    Secured Party’s name and mailing address are: 
  
 Avalanche Resources, Ltd. 
 8 Saddlewood Estates 
 Houston, Texas 77024 
  
 (c)    The
classification of the Collateral is Documents; Equipment; Inventory; Accounts; Chattel paper; Instruments; Investment Property; and General Intangibles. 
  
 (d)    The Collateral (including all accessions thereto) is the following personal property of Debtor, wherever located and all
proceeds of the property: Documents; Equipment; Inventory; Accounts; Chattel Paper; Instruments; Investment Property; and General Intangibles; and all after-acquired Collateral of the same classification and all products and increase of the
Collateral. 
  
 (e)    The Obligation is the
indebtedness of Debtor evidenced by the Convertible Debenture, dated December 31, 2002 executed by Debtor payable to Secured Party in the original principal amount of $2,000,000.00. 
  
 (a)    Debtor grants to Secured Party a security interest in the Collateral and all its proceeds to
secure the Obligation and all renewals, modifications, and extensions of the Obligation. Debtor authorizes Secured Party to file a financing statement describing the Collateral. 
  

	2.	 	Debtor’s Representations/Warranties 

  
 (a)    The Collateral is located solely at 14315 West Hardy Road, Houston, Texas 77060. 
  
 (b)    Debtor’s chief executive office is located at
14315 West Hardy Road, Houston, Texas 77060. 

 (c)    Debtor’s state of organization is Delaware; Debtor’s name, as shown
in its organizational documents, as amended, is exactly as set forth above; and Debtor’s organizational identification number is 2112835. 
  
 (d)    Debtor’s federal tax identification number is 33-0041789. 
  
 (e)    Debtor’s records concerning the Collateral
are located at 14315 West Hardy Road, Houston, Texas 77060. 
  
 (f)    The chattel paper Collateral is located solely at 14315 West Hardy Road, Houston, Texas 77060. 
  
 (g)    No financing statement covering the Collateral is filed in any public office except any financing statement in favor of Secured
Party and except the financing statements described on the attached Exhibit A (the “Permitted Liens”). 
  
 (h)    Debtor owns the Collateral and has the authority to grant this security interest, free from any setoff, claim, restriction,
security interest, or encumbrance except liens for taxes not yet due and the Permitted Liens. 
  
 (i)    Each account and chattel paper in the Collateral is and will be the valid, legally enforceable obligation of a third-party account debtor or obligor. 
  
 (j)    The chattel paper Collateral is in tangible, not
electronic, form and has only one original counterpart. No person, other than Debtor or Secured Party, has actual or constructive possession of any chattel paper Collateral. 
  

	3.	 	Debtor’s Covenants. 

  
 (a)    Debtor will defend the Collateral against all claims adverse to Secured Party’s interest; pay all taxes imposed on the
Collateral or its use; keep the Collateral free from liens, except for liens in favor of Secured Party or for taxes not yet due; keep the Collateral in Debtor’s possession and ownership except as otherwise provided in this Agreement; maintain
the Collateral in good condition; and protect the Collateral against waste, except for ordinary wear and tear. 
  
 (b)    Debtor will pay all Secured Party’s expenses, including reasonable attorney’s fees, incurred to obtain, preserve,
perfect, defend, and enforce this Agreement or the Collateral and to collect or enforce the Obligation. These expenses will bear interest from the date of advance at the rate stated in the Note for matured, unpaid amounts and are payable on demand
at the place where the Obligation is payable. These expenses and interest are part of the Obligation and are secured by this Agreement. 
  
 (c)    Debtor will sign and deliver to Secured Party any documents or instruments that Secured Party considers necessary to obtain,
maintain, and perfect this security interest in the 

 Collateral. This includes a certificate of title for any Collateral covered by a certificate of title so that Secured
Party may have the certificate of title reissued with its lien noted thereon. 
  
 (d)    Debtor will notify Secured Party immediately of any event of default and of any material change: (i) in the Collateral, (ii) in Debtor’s Mailing Address, (iii) in the location of any
Collateral, (iv) in any other representation or warranty in this Agreement, (v) that may affect this security interest. Debtor will notify Secured Party of any change in Debtor’s name and of any location set forth above in paragraph 3 to
another state. 
  
 (e)    Debtor will use the
Collateral primarily according to the classification stated above in paragraph 1(d) above. 
  
 (f)    Debtor will maintain accurate records of the Collateral at the address set forth above in paragraph 1(e), will furnish Secured Party any requested information related to the Collateral, and
will permit Secured Party to inspect and copy all records relating to the Collateral and to inspect the Collateral. 
  
 (g)    At Secured Party’s request, Debtor will deliver to Secured Party on receipt all chattel paper or instruments constituting
proceeds of the inventory and, at Secured Party’s request, deposit all checks, items, and other cash proceeds of the inventory in a special bank account designated by Secured Party, who alone will have power of withdrawal. 
  
 (h)    Debtor will permit Secured Party to inspect the
Collateral. 
  
 (i)    Debtor will immediately
deliver to Secured Party, with an assignment or endorsement, current and after-acquired instruments and certificated securities in the Collateral. 
  
 (j)    Debtor will preserve the liability of all obligors on the Collateral and preserve the priority of all security for the
Collateral. 
  
 (k)    Debtor will cause all
obligors on the Collateral to pay and perform all their obligations and inform Secured Party immediately of the default in the payment or performance of any Collateral. 
  
 (l)    Debtor will preserve the liability of all obligors on the Collateral and preserve the priority of
all security for the Collateral. 
  

	4.	 	Debtor’s Negative Covenants. 

  
 (a)    Debtor will not sell, transfer, or encumber any of the Collateral, except that Debtor may sell inventory in the ordinary course
of business and may dispose of equipment that has become obsolete or worn-out in the ordinary course of Debtor’s business. 
  
 (b)    Debtor will not, except as permitted in this Agreement, permit the Collateral to be covered by a document, except a document in
the possession of Secured Party. 

 (c)    Debtor will not change: 
  
   (i)    its name or
jurisdiction of organization, merge or consolidate with any person, or convert to a different entity without notifying Secured Party at least thirty days in advance and taking action to continue the perfected status of the security interest in the
Collateral; or 
  
  (ii)    the state in which Debtor’s place of business (or chief executive office if Debtor has more than one place of business) is located, change its name, or convert to a different entity without notifying
Secured Party at least thirty days in advance and taking action to continue the perfected status of the security interest in the Collateral. 
  
 (iii)    change Debtor’s name or state of residence without notifying Secured Party at least thirty days in
advance and taking action to continue the perfected status of the security interest in the Collateral. 
  

	5.	 	Insurance and Risk of Loss. 

  
 (a)    Debtor will insure the Collateral in accordance with Secured Party’s reasonable requirements regarding choice of carrier,
risks insured against, and amount of coverage. Policies must be written in favor of Debtor, be endorsed to name Secured Party as an additional insured or as otherwise directed in writing by Secured Party, and provide that Secured Party will receive
at least ten days’ notice before cancellation. Debtor must provide copies of the policies or certificates to Secured Party. 
  
 (b)    Debtor assumes all risk of loss to the Collateral. 
  
 (c)    Debtor appoints Secured Party as attorney-in-fact to collect any returned unearned premiums and
proceeds of any insurance on the Collateral and to endorse and deliver to Secured Party any payment from such insurance made payable to Debtor. Debtor’s appointment of Secured Party as Debtor’s agent is coupled with an interest.

  

	6.	 	Default/Remedies. 

  
 (a)    A default exists if: 
  
   (i)    Debtor fails to timely pay the Obligation or fails to perform any obligation or covenant in this
Agreement for a period in excess of 20 days following written notice from Secured Party; 
  
  (ii)    any warranty, covenant, or representation in the Security Agreement between Debtor and Secured Party in
this Agreement is materially false when made; 
  
 (iii)    a receiver is appointed for Debtor or any Collateral; 
  
 (iv)    any Collateral is assigned for the benefit of creditors; 

    (v)    a bankruptcy or insolvency proceeding is
commenced by Debtor; 
  
   (vi)    a bankruptcy or insolvency proceeding is commenced against Debtor and the proceeding continues without dismissal for sixty days, the party against whom the proceeding is commenced admits the material
allegations of the petition against it, or an order for relief is entered; 
  
  (vii)    Debtor is dissolved, begins to wind up its affairs, is authorized to dissolve or wind up its affairs by its governing body or persons, or any event occurs or condition exists that
permits the dissolution or winding up of the affairs of Debtor; or 
  
 (viii)    any Collateral is impaired by loss, theft, damage, levy and execution, issuance of an official writ or order of seizure, or destruction, unless it is promptly replaced with Collateral of
like kind and quality or restored to its former condition. 
  
 (b)    If a default exists, Secured Party may: 
  
     (i)    demand, collect, convert, redeem, settle, compromise, receipt for, realize on, sue for, and adjust the Collateral either in Secured Party’s or Debtor’s
name, as Secured Party desires, or take control of any proceeds of the Collateral and apply the proceeds against the Obligation; 
  
    (ii)    take possession of any Collateral not already in Secured Party’s possession, without
demand or legal process, and for that purpose Debtor grants Secured Party the right to enter any premises where the Collateral may be located; 
  
   (iii)    without taking possession, sell, lease, or otherwise dispose of the Collateral at any public or
private sale in accordance with law; and 
  
   (iv)    exercise any rights and remedies granted by law or this Agreement. 
  
    (v)    notify obligors on the Collateral to pay Secured Party directly; 
  
   (vi)    as Debtor’s
agent, make any endorsements in Debtor’s name and on Debtor’s behalf of any instruments in the Collateral and to any proceeds of the Collateral; 
  
  (vii)    exercise and enforce all rights, including voting rights, available to an owner of the Collateral; and

  
 (viii)    transfer record
ownership of any Collateral to Secured Party. 
  
 (c)    Foreclosure of this security interest by suit does not limit Secured Party’s remedies, including the right to sell the Collateral under the terms of this Agreement. Secured Party may exercise all remedies at
the same or different times, and no remedy is a defense to any 

 other. Secured Party’s rights and remedies include all those granted by law and those specified in this Agreement.

  
 (d)    Secured Party’s delay in
exercising, partial exercise of, or failure to exercise any of its remedies or rights does not waive Secured Party’s rights to subsequently exercise those remedies or rights. Secured Party’s waiver of any default does not waive any other
default by Debtor. Secured Party’s waiver of any right in this Agreement or of any default is binding only if it is in writing. Secured Party may remedy any default without waiving it. 
  
 (e)    Secured Party has no obligation to clean or
otherwise prepare the Collateral for sale. Other than exercising reasonable care to assure safe custody of the Collateral in its possession, Secured Party has no responsibility for the Collateral. Secured Party has no obligation to collect any of
the Collateral and is not liable for failure to collect any of the Collateral, for failure to preserve any right pertaining to the Collateral, or for any act or omission on the part of Secured Party or Secured Party’s officers, agents, or
employees, except willful misconduct. 
  
 (f)    Secured Party has no obligation to satisfy the Obligation by attempting to collect the Obligation from any other person liable for it. Secured Party may release, modify, or waive any Collateral provided by any
other person to secure any of the Obligation. If Secured Party attempts to collect the Obligation from any other person liable for it or releases, modifies, or waives any Collateral provided by any other person, that will not affect Secured
Party’s rights against Debtor. Debtor waives any right Debtor may have to require Secured Party to pursue any third person for any of the Obligation. 
  
 (g)    If Secured Party must comply with any applicable state or federal law requirements in connection with a disposition of the
Collateral, such compliance will not be considered to adversely affect the commercial reasonableness of a sale of the Collateral. 
  
 (h)    Secured Party may sell the Collateral without giving any warranties as to the Collateral. Secured Party may specifically
disclaim any warranties of title or the like. This procedure will not be considered to adversely affect the commercial reasonableness of a sale of the Collateral. 
  
 (i)    If Secured Party sells any of the Collateral on credit, Debtor will be credited only with
payments actually made by the purchaser and received by Secured Party for application to the indebtedness of the purchaser. If the purchaser fails to pay for the Collateral, Secured Party may resell the Collateral and Debtor will be credited with
the proceeds of the sale. 
  
 (k)    If
Secured Party purchases any of the Collateral being sold, Secured Party may pay for the Collateral by crediting the purchase price against the Obligation. 
  
 (l)    Secured Party has no obligation to marshal any assets in favor of Debtor or against or in payment of the Note, any of the Other
Obligation[s], or any other obligation owed to Secured Party by Debtor or any other person. 

 (m)    If the Collateral is sold after default, recitals in the bill of sale or
transfer will be prima facie evidence of their truth and all prerequisites to the sale specified by this Agreement and by law will be presumed satisfied. 
  

	7.	 	General. 

  
 (a)    Secured Party may at any time: 
  
 (i)    take control of proceeds of insurance on the Collateral and reduce any part of the Obligation accordingly or
permit Debtor to use the funds to repair or replace the Collateral and 
  
 (ii)    purchase single-interest insurance coverage that will protect only Secured Party if Debtor fails to maintain insurance, and premiums for the insurance will become part of the Obligation.

  
 (b)    Notice is reasonable if it is
mailed, postage prepaid, to Debtor at Debtor’s Mailing Address at least ten days before any public sale or ten days before the time when the Collateral may be otherwise disposed of without further notice to Debtor. 
  
 (c)    This security interest will neither affect nor be
affected by any other security for any of the Obligation. Neither extensions of any of the Obligation nor releases of any of the Collateral will affect the priority or validity of this security interest. 
  
 (d)    This Agreement binds, benefits, and may be
enforced by the successors in interest of Secured Party and will bind all persons who become bound as debtors to this Agreement. Assignment of any part of the Obligation and Secured Party’s delivery of any part of the Collateral will fully
discharge Secured Party from responsibility for that part of the Collateral. If such an assignment is made, Debtor will render performance under this Agreement to the assignee. Debtor waives and will not assert against any assignee any claims,
defenses, or setoffs that Debtor could assert against Secured Party except defenses that cannot be waived. All representations, warranties, and obligations are joint and several as to each Debtor. 
  
 (e)    This Agreement may be amended only by an
instrument in writing signed by Secured Party and Debtor. 
  
 (f)    The unenforceability of any provision of this Agreement will not affect the enforceability or validity of any other provision. 
  
 (g)    This Agreement will be construed according to Texas law, without regard to choice-of-law rules of
any jurisdiction. This Agreement is to be performed in Harris County, Texas. 
  
 (h)    Interest on the Obligation secured by this Agreement will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law.
Any interest in excess of that maximum amount will be credited on the 

 principal of the Obligation or, if that has been paid, refunded. On any acceleration or required or permitted prepayment,
any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the Obligation or, if the principal of the Obligation has been paid, refunded. This provision overrides any
conflicting provisions in this and all other instruments concerning the Obligation. 
  
 (i)    In no event may this Agreement secure payment of any debt subject to title IV of the Texas Finance Code or create a lien otherwise prohibited by law. 
  
 (j)    When the context requires, singular nouns and
pronouns include the plural. 
  
 (k)    Any
term defined in sections 1.101 to 11.108 of the Texas Business and Commerce Code and not defined in this Agreement has the meaning given to the term in the Code. 
  

	NORTH AMERICAN TECHNOLOGIES GROUP, INC.
	 	 	 
	 
		
	 By:
	 	 /s/    Henry W. Sullivan

	 	 	 Henry W. Sullivan, President

  
 FINANCING
STATEMENTS 
  

	 Filing No.

	  	 Secured Party

	  	State
Filed

	 00-00498809
	  	Toyota Motor Credit Corporation	  	TX
	 00-00498810
	  	Toyota Motor Credit Corporation	  	TX
	 00-00583055
	  	Toyota Financial Services	  	TX
	 00-00583056
	  	Toyota Financial Services	  	TX
	 01-00023898
	  	Fidelity Leasing, Inc.	  	TXRegistration Rights Agreement

 EXHIBIT 10.3 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 This Registration Rights Agreement, dated effective December 31, 2002 between North American Technologies Group, Inc., a Delaware corporation (the
“Company”), and Avalanche Resources, Ltd. (“Holder”). 
  
 1.    Definitions.    The following terms have the following meanings: 
  
 “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in
Texas. 
  
 “Commission” means the
Securities and Exchange Commission or any other federal agency then administering the Securities Act and other federal securities laws. 
  
 “Common Stock” means shares of the common stock of the Company, par value $ .001 per share. 
  
 “Debenture” means the Convertible Debenture, # CD
02-001, dated as of the date of this Agreement issued by the Company to Holder in the original principal amount of $2,000,000.00. 
  
 “Registration Securities” means any securities of the Company proposed to be sold by or for the account of the Company or any
person other than the Company pursuant to a Registration Statement under the Securities Act on any form (other than a Registration Statement on Form S-4 or S-8 or any successor form) for the general registration of the securities. 
  
 “Registrable Securities” means the Debenture, the
Warrant and the shares of common stock of the Company which are issuable upon conversion of the Debenture or which are issuable upon exercise of the Warrant, and any shares of capital stock or other securities of the Company issued upon any stock
dividends, stock splits, combinations or similar recapitalizations of such shares. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission
thereunder. 
  
 “NASD” means the
National Association of Securities Dealers, Inc., or any successor corporation thereto. 
  
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission. 

 “Warrant” means the Warrant, # W 02-001, dated as of the date of this Agreement
issued by the Company to Holder and covering 2,000,000 shares of the Common Stock of the Company. 
  
 2.    Piggyback Registration. 
  
 (a)    If the Company proposes to file a Registration Statement covering the sale of any Registration Securities, the
Company will give written notice to Holder at least thirty days before the initial filing with the Commission of the Registration Statement. The notice shall set forth the intended method of disposition of the Registration Securities. 
  
 (b)    If Holder desires to have any
Registrable Securities registered in the Registration Statement, Holder shall notify the Company in writing (within ten Business Days after the date of receipt of such offer from the Company) of the number of Registrable Securities for which Holder
requests registration. The Company shall thereupon include in such filing the number of Registrable Securities for which Holder requests registration and shall use commercially reasonable efforts to effect registration under the Securities Act of
the Registrable Securities. 
  
 (c)    If Holder decides not to include all the Registrable Securities in the Registration Statement, Holder nevertheless shall continue to have the right to include Registrable Securities in any subsequent Registration
Statement or Registration Statements as may be filed by the Company, in each instance upon the terms and conditions set forth herein. 
  
 3.    Registration Procedures. 
  
 (a)    If the Company is required under paragraph 2 to register any Registrable Securities, the Company will as
expeditiously as possible, subject to Holder’s compliance with Holder’s obligations herein: 
  
   (i)    prepare and file with the Commission a Registration Statement with respect to such Registrable
Securities and take all reasonable actions to cause such Registration Statement to become and remain effective until the earlier of (A) the date on which all Registrable Securities shall have been sold; or (B) the date on which all remaining
Registrable Securities may be sold immediately to the public, without volume limitations, pursuant to Rule 144(k) under the Securities Act; 
  
  (ii)    prepare and file with the Commission such amendments and supplements to such Registration Statement and
the prospectus used in connection therewith as may be necessary to keep such Registration Statement effective and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered
by such Registration Statement until the time specified in paragraph 3(a)(i); 
  
 (iii)    furnish to Holder such number of copies of a summary prospectus or other prospectus, including a preliminary prospectus, in conformity with the requirements of the Securities Act, and such
other documents, as Holder may reasonably request; 

    (iv)    take all reasonable actions required to
prevent the entry of any stop order issued or threatened by the Commission or any state regulatory authority with respect to the Registration Statement covering the Registrable Securities, and take all reasonable actions to remove it if entered;

  
     (v)    take all actions to register or qualify the Registrable Securities covered by such Registration Statement under such other securities or blue sky laws of such jurisdictions within the
United States as shall be reasonably requested by each Holder (provided, however, that the Company shall not be obligated to qualify as a foreign corporation to do business under the laws of any jurisdiction in which it shall not then be qualified
of to file any general consent to service of process), and do such other reasonable acts and things as may be required to enable such Holder to consummate the disposition in such jurisdiction of the Registrable Securities covered by such
Registration Statement; 
  
    (vi)    enter into customary agreements (including an underwriting agreement in customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition
of such Registrable Securities; 
  
   (vii)    otherwise take all reasonable actions to comply with all applicable rules and regulations of the Commission; and 
  
 (viii)     take all reasonable actions to cause all Registrable Securities to be listed
on any securities exchange, quotation system, market or over-the-counter bulletin board, if any, on which shares of the Company of the same class as the Registrable Securities shall then be listed. 
  
 (b)    If Registration Securities are
being registered in connection with an underwritten offering of the securities, Holder shall participate in such underwriting prorata with the holders of the Registration Securities on the basis of the securities being registered. The Company’s
obligation to register the Registrable Securities is subject to the condition precedent that Holder furnish to the Company such information regarding the Registrable Securities held by Holder as shall be reasonably requested by the Company and the
managing underwriter and that Holder execute and deliver an underwriting agreement and any other questionnaires, powers of attorney or other typical underwriting documents in a form and substance required by the Company and managing underwriter, if
any, with respect to the registration in which Holder is participating. 
  
 (c)    Holder agrees that with respect to any securities that are held by Holder or Holder’s affiliates of the same class as the Registrable Securities and that are not being registered
pursuant to paragraph 2 in an underwritten registration, Holder will agree, if requested by the managing underwriter to do so, that Holder will not, directly or indirectly, sell, transfer or otherwise dispose of any such shares for a period of not
more than 180 days following the closing of an underwritten registration of the Registrable Securities, provided that the Company and each of its executive officers have agreed to similar restrictions having a duration at least as great as that
applicable to Holder. 

 4.    Expenses.    All expenses incurred in complying with
this Agreement, including, without limitation, all registration and filing fees (including all expenses incident to filing with the NASD), printing expenses, fees and disbursements of counsel for the Company, expenses of any special audits
incident to or required by any such registration and expenses of complying with the securities or blue sky laws of any jurisdiction pursuant to paragraph 3, shall be paid by the Company, except that the Company shall not be liable for any fees,
discounts or commissions to any underwriter with respect to the Registrable Securities and shall not be liable for any attorney’s fees or other expenses incurred by Holder incident to the registration of the Registrable Securities or complying
with Holder’s obligations under this Agreement (other than as provided by paragraph 7 below). 
  
 5.    Indemnification. 
  
 (a)    If Registrable Securities are registered under the Securities Act pursuant to this Agreement, the Company shall
indemnify, defend and hold harmless Holder against any losses, claims, damages or liabilities, joint or several, to which such Holder may become subject under the Securities Act or any other statute or at common law, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue or alleged untrue statement of any material fact contained, on the effective date thereof, in any Registration Statement under which the Registrable
Securities were registered under the Securities Act, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, or (ii) any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and shall reimburse such Holder for any legal or any other expenses reasonably incurred by such Holder or such director, officer or participating person or controlling person
in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or
is based upon any untrue or alleged untrue statement or omission or alleged omission made in such Registration Statement, preliminary prospectus, prospectus or amendment or supplement in reliance upon and in conformity with written information
furnished to the Company by Holder specifically for use therein or so furnished for such purpose by any underwriter. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of Holder and shall
survive the transfer of any Registrable Securities by Holder. 
  
 (b)    Subject to the last sentence of this paragraph 5(b), Holder shall indemnify, defend and hold harmless the Company, its directors and officers and each other person, if any, who controls the
Company within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which the Company or any such director, officer or other person may become subject under the Securities Act or any other
statute or at common law, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon information in writing provided to the Company by Holder specifically for use in the following documents
and contained, on the effective date thereof, in any Registration Statement under which the Registrable Securities were registered under the Securities Act at the request of Holder, any preliminary prospectus or final prospectus contained therein,
or any amendment or supplement thereto. Holder’s indemnity obligation shall not exceed the amount of 

 the aggregate net proceeds received by Holder in connection with the registration and sale of the
Registrable Securities, plus any amount payable by Holder pursuant to paragraph 7 hereof. 
  
 (c)    Upon the assertion of any third party claim that may give rise to liability pursuant to paragraph 5(a) or
paragraph 5(b), the indemnitee shall promptly give written notice to the indemnitor of such claim. Failure to give notice in a situation whereby the indemnitee may suffer irreparable injury or undue hardship due to delay does not relieve the
indemnitor from liability pursuant to this paragraph 5. The indemnitor shall have the opportunity to have the party against whom the claim is asserted represented by counsel of the indemnitor’s choosing at the indemnitor’s own expense, who
is reasonably satisfactory to the indemnitee, in connection with the defense of any claim in respect of which the indemnitee may be entitled to indemnification under this Agreement; provided, however, that the indemnitee shall at all times have the
right to fully participate in such defense at his or its own expense. If, after such opportunity, the indemnitor does not defend, the indemnitee shall have the right but not the obligation to undertake the defense, compromise or settlement of such
claim on behalf of, for the account of and at the risk of the indemnitor, provided, however, the foregoing does not obligate the indemnitee to defend such claims. The indemnitee shall cooperate with the indemnitor at the indemnitee’s expense in
the defense of such claim as may be reasonably requested by the indemnitor. 
  
   6.    Rule 144.    The Company agrees that during the time it is a reporting company under the Securities Exchange Act of 1934, it will use commercially
reasonable efforts to assure that the public information requirements of paragraph (c) of Rule 144 promulgated under the Securities Act are met at all times prior to the date that Holder is eligible to sell pursuant to paragraph (k) of Rule 144 any
Registrable Securities that Holder has not elected to have registered in a Registration Statement. The Company further agrees to take the same actions as Holder reasonably requests to sell pursuant to Rule 144 Registrable Securities that have not
been registered as the Company takes for the benefit of any other holder of the Company’s securities to allow or facilitate sales by such other holder pursuant to Rule 144 of shares that have not been registered and sold in a Registration
Statement. 
  
   7.    Remedies.    The Company’s obligation to register the Registrable Securities shall be specifically enforceable, in addition to any other remedy available to Holder. The
prevailing party in any suit brought to enforce or interpret this Agreement shall be entitled to recover the party’s reasonable attorney’s fees and disbursements relating to such suit in addition to any other relief awarded. 
  
   8.    Waiver.    The failure of a party to enforce any provision of this Agreement shall not constitute a waiver of such party’s right to thereafter enforce such provision or
to enforce any other provision at any time. 
  
   9.    Modification.    The terms of this Agreement cannot be modified except by a written instrument signed by all parties to this Agreement. 
  
 10.    Entire
Agreement.    This written document, together with any other written document executed contemporaneously herewith, represents the final agreement of the parties 

 with respect to the subject matter of this document and may not be contradicted by evidence of prior or contemporaneous
oral agreements of the parties. There are no unwritten oral agreements between the parties regarding the subject matter of this document. 
  
 11.    Governing Law.    THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED IN ALL RESPECTS
BY THE INTERNAL LAWS OF TEXAS (WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS). 
  
 12.    Notice.    All notices and other communications under this Agreement shall be in writing and shall be deemed properly served (a) on the date of delivery, if
delivered by hand; (b) on the third day following mailing, if sent by certified mail, return receipt requested, postage prepaid; (c) on the date following delivery to an overnight courier, if served by overnight courier. Notices shall be addressed
to Holder at the Holder’s address appearing on the books of the Company maintained for such purpose and to the Company at its principal office, Attention: the President. Each party may change its address for notice by notice to the other party.

  
 13.    Severability.    No partial invalidity of this Agreement shall affect the remainder. 
  
 14.    Successors/Assigns.    This Agreement and the covenants of each party contained in this Agreement
shall be binding upon and shall inure to the benefit of the parties’ successors and assigns. 
  
 15.    Usage.    As the context requires, the gender of all words used herein shall include any other
gender and the number of all words shall include the singular and the plural. References to a statute and rules and regulations of the Commission include references to the statute, rules and regulations as amended and any corresponding statute,
rules and regulations hereafter in effect. 
  

	NORTH AMERICAN TECHNOLOGIES GROUP, INC.
		
	 By:
	 	 /s/    Henry W. Sullivan

	 	 	 Henry W. Sullivan, President

  

	 
		
	 	 	 
	 	 	 

	AVALANCHE RESOURCES, LTD.
		
	 By:
	 	AVALANCHE MANAGEMENT CORPORATION, General Partner
	 	 	 

	 
		
	 By:
	 	 /s/    Kevin Maddos

	 	 	 Kevin Maddox, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]