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                                                                       EXHIBIT C

                                   EXHIBIT 4.4

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH
SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR
OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS
DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT.

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                     North American Technologies Group, Inc.

                  THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") CERTIFIES
that, for value received, _____________ (the "Holder"), is entitled, upon the
terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the date of issuance of this Warrant (the
"Initial Exercise Date") and on or prior to the 54th month anniversary of the
Initial Exercise Date (the "Termination Date") but not thereafter, to subscribe
for and purchase from North American Technologies Group, Inc., a Delaware
corporation (the "Company"), up to ____________ shares (the "Warrant Shares") of
Common Stock, par value $0.001 per share, of the Company (the "Common Stock").
The purchase price of one share of Common Stock (the "Exercise Price") under
this Warrant shall be $______, subject to adjustment hereunder. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the "Purchase Agreement"), dated
March ___, 2004, among the Company and the purchasers signatory thereto.

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     1. Title to Warrant. Prior to the Termination Date and subject to
compliance with applicable laws and Section 7 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or
agency of the Company by the Holder in person or by duly authorized attorney,
upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed. The transferee shall sign an investment letter in form and
substance reasonably satisfactory to the Company.

     2. Authorization of Shares. The Company covenants that all Warrant Shares
which may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges in respect of the issue thereof (other than taxes
in respect of any transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant.

          (a) Exercise of the purchase rights represented by this Warrant may be
     made at any time or times on or after the Initial Exercise Date and on or
     before the Termination Date by delivery to the Company of a duly executed
     facsimile copy of the Notice of Exercise Form annexed hereto (or such other
     office or agency of the Company as it may designate by notice in writing to
     the registered Holder at the address of such Holder appearing on the books
     of the Company); provided, however, within 3 Trading Days of the date said
     Notice of Exercise is delivered to the Company, the Holder shall have
     surrendered this Warrant to the Company and the Company shall have received
     payment of the aggregate Exercise Price of the shares thereby purchased by
     wire transfer or cashier's check drawn on a United States bank.
     Certificates for shares purchased hereunder shall be delivered to the
     Holder within 3 Trading Days from the delivery to the Company of the Notice
     of Exercise Form, surrender of this Warrant and payment of the aggregate
     Exercise Price as set forth above ("Warrant Share Delivery Date"). This
     Warrant shall be deemed to have been exercised on the later of the date the
     Notice of Exercise is delivered to the Company by facsimile copy and the
     date the Exercise Price is received by the Company. The Warrant Shares
     shall be deemed to have been issued, and Holder or any other person so
     designated to be named therein shall be deemed to have become a holder of
     record of such shares for all purposes, as of the date the Warrant has been
     exercised by payment to the Company of the Exercise Price and all taxes
     required to be paid by the Holder, if any, pursuant to Section 5 prior to
     the issuance of such shares, have been paid. If the Company fails to
     deliver to the Holder a certificate or certificates representing the
     Warrant Shares pursuant to this Section 3(a) by the Warrant Share Delivery
     Date, then the Holder will have the right to rescind such exercise. In
     addition to any other rights available to the Holder, if the Company fails
     to deliver to the Holder a certificate or certificates representing the
     Warrant Shares pursuant to an exercise by the Warrant Share Delivery Date,
     and if after such day the Holder is required by its broker to purchase (in
     an open market transaction or otherwise) shares of Common Stock to deliver
     in satisfaction of a sale by the Holder of the Warrant Shares which the
     Holder anticipated receiving upon such exercise (a "Buy-In"), then the
     Company shall (1) pay in cash to the

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     Holder the amount by which (x) the Holder's total purchase price (including
     brokerage commissions, if any) for the shares of Common Stock so purchased
     exceeds (y) the amount obtained by multiplying (A) the number of Warrant
     Shares that the Company was required to deliver to the Holder in connection
     with the exercise at issue times (B) the price at which the sell order
     giving rise to such purchase obligation was executed, and (2) at the option
     of the Holder, either reinstate the portion of the Warrant and equivalent
     number of Warrant Shares for which such exercise was not honored or deliver
     to the Holder the number of shares of Common Stock that would have been
     issued had the Company timely complied with its exercise and delivery
     obligations hereunder. For example, if the Holder purchases Common Stock
     having a total purchase price of $11,000 to cover a Buy-In with respect to
     an attempted exercise of shares of Common Stock with an aggregate sale
     price giving rise to such purchase obligation of $10,000, under clause (1)
     of the immediately preceding sentence the Company shall be required to pay
     the Holder $1,000. The Holder shall provide the Company written notice
     indicating the amounts payable to the Holder in respect of the Buy-In,
     together with applicable confirmations and other evidence reasonably
     requested by the Company. Nothing herein shall limit a Holder's right to
     pursue any other remedies available to it hereunder, at law or in equity
     including, without limitation, a decree of specific performance and/or
     injunctive relief with respect to the Company's failure to timely deliver
     certificates representing shares of Common Stock upon exercise of the
     Warrant as required pursuant to the terms hereof.

          (b) If this Warrant shall have been exercised in part, the Company
     shall, at the time of delivery of the certificate or certificates
     representing Warrant Shares, deliver to Holder a new Warrant evidencing the
     rights of Holder to purchase the unpurchased Warrant Shares called for by
     this Warrant, which new Warrant shall in all other respects be identical
     with this Warrant.

          (c) The Holder shall not have the right to exercise any portion of
     this Warrant, pursuant to Section 3(a) or otherwise, to the extent that
     after giving effect to such issuance after exercise, the Holder (together
     with the Holder's affiliates), as set forth on the applicable Notice of
     Exercise, would beneficially own in excess of 4.99% of the number of shares
     of the Common Stock outstanding immediately after giving effect to such
     issuance. For purposes of the foregoing sentence, the number of shares of
     Common Stock beneficially owned by the Holder and its affiliates shall
     include the number of shares of Common Stock issuable upon exercise of this
     Warrant with respect to which the determination of such sentence is being
     made, but shall exclude the number of shares of Common Stock which would be
     issuable upon (A) exercise of the remaining, nonexercised portion of this
     Warrant beneficially owned by the Holder or any of its affiliates and (B)
     exercise or conversion of the unexercised or nonconverted portion of any
     other securities of the Company (including, without limitation, any other
     Warrants or the Preferred Stock) subject to a limitation on conversion or
     exercise analogous to the limitation contained herein beneficially owned by
     the Holder or any of its affiliates. Except as set forth in the preceding
     sentence, for purposes of this Section 3(c), beneficial ownership shall be
     calculated in accordance with Section 13(d) of the Exchange Act, it being
     acknowledge by Holder that the Company is not representing to Holder that
     such calculation is in compliance with Section 13(d) of the Exchange Act
     and Holder is solely

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     responsible for any schedules required to be filed in accordance therewith.
     To the extent that the limitation contained in this Section 3(c) applies,
     the determination of whether this Warrant is exercisable (in relation to
     other securities owned by the Holder) and of which a portion of this
     Warrant is exercisable shall be in the sole discretion of such Holder, and
     the submission of a Notice of Exercise shall be deemed to be such Holder's
     determination of whether this Warrant is exercisable (in relation to other
     securities owned by such Holder) and of which portion of this Warrant is
     exercisable, in each case subject to such aggregate percentage limitation,
     and the Company shall have no obligation to verify or confirm the accuracy
     of such determination. For purposes of this Section 3(c), in determining
     the number of outstanding shares of Common Stock, the Holder may rely on
     the number of outstanding shares of Common Stock as reflected in (x) the
     Company's most recent Form 10-QSB or Form 10-KSB, as the case may be, (y) a
     more recent public announcement by the Company or (z) any other notice by
     the Company or the Company's Transfer Agent setting forth the number of
     shares of Common Stock outstanding. Upon the written or oral request of the
     Holder, the Company shall within two Trading Days confirm orally and in
     writing to the Holder the number of shares of Common Stock then
     outstanding. In any case, the number of outstanding shares of Common Stock
     shall be determined after giving effect to the conversion or exercise of
     securities of the Company, including this Warrant, by the Holder or its
     affiliates since the date as of which such number of outstanding shares of
     Common Stock was reported.

          (d) If at any time after one year from the date of issuance of this
     Warrant there is no effective Registration Statement registering the resale
     of the Warrant Shares by the Holder, during any such periods this Warrant
     may also be exercised at such time by means of a "cashless exercise" in
     which the Holder shall be entitled to receive a certificate for the number
     of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by
     (A), where:

          (A) = the VWAP on the Trading Day immediately preceding the date of
                such election;

          (B) = the Exercise Price of this Warrant, as adjusted; and

          (X) = the number of Warrant Shares issuable upon exercise of this
                Warrant in accordance with the terms of this Warrant by means
                of a cash exercise rather than a cashless exercise.

          (e) If the Company has not obtained Shareholder Approval (as defined
     below) if required, then the Company may not issue upon exercise of this
     Warrant in the aggregate, in excess of 19.999% of the number of shares of
     Common Stock outstanding on the Trading Day immediately preceding the
     Closing Date, less any shares of Common Stock issued upon conversion of or
     as payment of interest on the Preferred Stock or upon prior exercise of
     this or any other Warrant issued pursuant to the Purchase Agreement (such
     number of shares, the "Issuable Maximum"). If on any attempted exercise of
     this Warrant, the issuance of Warrant Shares would exceed the Issuable
     Maximum and the Company shall not have previously obtained the vote of
     shareholders (the "Shareholder Approval"), if any, as may be required by
     the applicable rules and regulations of the

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     Principal Market (or any successor entity) to approve the issuance of
     shares of Common Stock in excess of the Issuable Maximum pursuant to the
     terms hereof, then the Company shall issue to the Holder requesting a
     Warrant exercise such number of Warrant Shares as may be issued below the
     Issuable Maximum and, with respect to the remainder of the aggregate number
     of Warrant Shares, this Warrant shall not be exercisable until and unless
     Shareholder Approval has been obtained.

     4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. As to any fraction of a share which Holder would otherwise be entitled
to purchase upon such exercise, the Company shall pay a cash adjustment in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

     5. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares
shall be made without charge to the Holder for any issue or transfer tax or
other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates
shall be issued in the name of the Holder or in such name or names as may be
directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and the Company may
require, as a condition thereto, the payment of a sum sufficient to reimburse it
for any transfer tax incidental thereto.

     6. Closing of Books. The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     7. Transfer, Division and Combination.

          (a) Subject to compliance with any applicable securities laws and the
     conditions set forth in Sections 1 and 7(e) hereof and to the provisions of
     Section 4.1 of the Purchase Agreement, this Warrant and all rights
     hereunder are transferable, in whole or in part, upon surrender of this
     Warrant at the principal office of the Company, together with a written
     assignment of this Warrant substantially in the form attached hereto duly
     executed by the Holder or its agent or attorney and funds sufficient to pay
     any transfer taxes payable upon the making of such transfer. Upon such
     surrender and, if required, such payment, the Company shall execute and
     deliver a new Warrant or Warrants in the name of the assignee or assignees
     and in the denomination or denominations specified in such instrument of
     assignment, and shall issue to the assignor a new Warrant evidencing the
     portion of this Warrant not so assigned, and this Warrant shall promptly be
     cancelled. A Warrant, if properly assigned, may be exercised by a new
     holder for the purchase of Warrant Shares without having a new Warrant
     issued.

          (b) This Warrant may be divided or combined with other Warrants upon
     presentation hereof at the aforesaid office of the Company, together with a
     written notice specifying the names and denominations in which new Warrants
     are to be issued, signed by the Holder or its agent or attorney. Subject to
     compliance with Section 7(a), as to any

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     transfer which may be involved in such division or combination, the Company
     shall execute and deliver a new Warrant or Warrants in exchange for the
     Warrant or Warrants to be divided or combined in accordance with such
     notice.

          (c) The Company shall prepare, issue and deliver at its own expense
     (other than transfer taxes) the new Warrant or Warrants under this
     Section 7.

          (d) The Company agrees to maintain, at its aforesaid office, books for
     the registration and the registration of transfer of the Warrants.

          (e) If, at the time of the surrender of this Warrant in connection
     with any transfer of this Warrant, the transfer of this Warrant shall not
     be registered pursuant to an effective registration statement under the
     Securities Act and under applicable state securities or blue sky laws, the
     Company may require, as a condition of allowing such transfer (i) that the
     Holder or transferee of this Warrant, as the case may be, furnish to the
     Company a written opinion of counsel (which opinion shall be in form,
     substance and scope customary for opinions of counsel in comparable
     transactions) to the effect that such transfer may be made without
     registration under the Securities Act and under applicable state securities
     or blue sky laws, (ii) that the holder or transferee execute and deliver to
     the Company an investment letter in form and substance acceptable to the
     Company and (iii) that the transferee be an "accredited investor" as
     defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8) promulgated
     under the Securities Act or a qualified institutional buyer as defined in
     Rule 144A(a) under the Securities Act.

     8. No Rights as Shareholder until Exercise. This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the aggregate Exercise Price (or by means of a cashless exercise), the
Warrant Shares so purchased shall be and be deemed to be issued to such Holder
as the record owner of such shares as of the close of business on the later of
the date of such surrender or payment.

     9. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of
the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

     10. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday or a legal holiday, then such action may be taken or
such right may be exercised on the next succeeding day not a Saturday, Sunday or
legal holiday.

     11. Adjustments of Exercise Price and Number of Warrant Shares.

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          (a) Stock Splits, etc. The number and kind of securities purchasable
     upon the exercise of this Warrant and the Exercise Price shall be subject
     to adjustment from time to time upon the happening of any of the following.
     In case the Company shall (i) pay a dividend in shares of Common Stock or
     make a distribution in shares of Common Stock to holders of its outstanding
     Common Stock, (ii) subdivide its outstanding shares of Common Stock into a
     greater number of shares, (iii) combine its outstanding shares of Common
     Stock into a smaller number of shares of Common Stock, or (iv) issue any
     shares of its capital stock in a reclassification of the Common Stock, then
     the number of Warrant Shares purchasable upon exercise of this Warrant
     immediately prior thereto shall be adjusted so that the Holder shall be
     entitled to receive the kind and number of Warrant Shares or other
     securities of the Company which it would have owned or have been entitled
     to receive had such Warrant been exercised in advance thereof. Upon each
     such adjustment of the kind and number of Warrant Shares or other
     securities of the Company which are purchasable hereunder, the Holder shall
     thereafter be entitled to purchase the number of Warrant Shares or other
     securities resulting from such adjustment at an Exercise Price per Warrant
     Share or other security obtained by multiplying the Exercise Price in
     effect immediately prior to such adjustment by the number of Warrant Shares
     purchasable pursuant hereto immediately prior to such adjustment and
     dividing by the number of Warrant Shares or other securities of the Company
     that are purchasable pursuant hereto immediately after such adjustment. An
     adjustment made pursuant to this paragraph shall become effective
     immediately after the effective date of such event retroactive to the
     record date, if any, for such event.

          (b) Anti-Dilution Provisions. During the Exercise Period, the Exercise
     Price shall be subject to adjustment from time to time as provided in this
     Section 11(b). In the event that any adjustment of the Exercise Price as
     required herein results in a fraction of a cent, such Exercise Price shall
     be rounded up or down to the nearest cent.

               (i) Adjustment of Exercise Price. If and whenever the Company
          issues or sells, or in accordance with Section 11(b)(ii) hereof is
          deemed to have issued or sold, any shares of Common Stock for an
          effective consideration per share of less than the then Exercise Price
          or for no consideration (such lower price, the "Base Share Price" and
          such issuances collectively, a "Dilutive Issuance"), then, the
          Exercise Price shall be reduced to equal the Base Share Price. Such
          adjustment shall be made whenever shares of Common Stock or Common
          Stock Equivalents are issued.

               (ii) Effect on Exercise Price of Certain Events. For purposes of
          determining the adjusted Exercise Price under Section 11(b) hereof,
          the following will be applicable:

                    (A) Issuance of Rights or Options. If the Company in any
               manner issues or grants any warrants, rights or options, whether
               or not immediately exercisable, to subscribe for or to purchase
               Common Stock or Common Stock Equivalents (such warrants, rights
               and options to purchase Common Stock or Common Stock Equivalents
               are hereinafter referred to as "Options") and the effective price
               per share for which Common Stock

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               is issuable upon the exercise of such Options is less than the
               Exercise Price ("Below Base Price Options"), then the maximum
               total number of shares of Common Stock issuable upon the exercise
               of all such Below Base Price Options (assuming full exercise,
               conversion or exchange of Common Stock Equivalents, if
               applicable) will, as of the date of the issuance or grant of such
               Below Base Price Options, be deemed to be outstanding and to have
               been issued and sold by the Company for such price per share and
               the maximum consideration payable to the Company upon such
               exercise (assuming full exercise, conversion or exchange of
               Common Stock Equivalents, if applicable) will be deemed to have
               been received by the Company. For purposes of the preceding
               sentence, the "effective price per share for which Common Stock
               is issuable upon the exercise of such Below Base Price Options"
               is determined by dividing (i) the total amount, if any, received
               or receivable by the Company as consideration for the issuance or
               granting of all such Below Base Price Options, plus the minimum
               aggregate amount of additional consideration, if any, payable to
               the Company upon the exercise of all such Below Base Price
               Options, plus, in the case of Common Stock Equivalents issuable
               upon the exercise of such Below Base Price Options, the minimum
               aggregate amount of additional consideration payable upon the
               exercise, conversion or exchange thereof at the time such Common
               Stock Equivalents first become exercisable, convertible or
               exchangeable, by (ii) the maximum total number of shares of
               Common Stock issuable upon the exercise of all such Below Base
               Price Options (assuming full conversion of Common Stock
               Equivalents, if applicable). No further adjustment to the
               Exercise Price will be made upon the actual issuance of such
               Common Stock upon the exercise of such Below Base Price Options
               or upon the exercise, conversion or exchange of Common Stock
               Equivalents issuable upon exercise of such Below Base Price
               Options.

                    (B) Issuance of Common Stock Equivalents. If the Company in
               any manner issues or sells any Common Stock Equivalents, whether
               or not immediately convertible (other than where the same are
               issuable upon the exercise of Options) and the effective price
               per share for which Common Stock is issuable upon such exercise,
               conversion or exchange is less than the Exercise Price, then the
               maximum total number of shares of Common Stock issuable upon the
               exercise, conversion or exchange of all such Common Stock
               Equivalents will, as of the date of the issuance of such Common
               Stock Equivalents, be deemed to be outstanding and to have been
               issued and sold by the Company for such price per share and the
               maximum consideration payable to the Company upon such exercise
               (assuming full exercise, conversion or exchange of Common Stock
               Equivalents, if applicable) will be deemed to have been received
               by the Company. For the purposes of the preceding sentence, the
               "effective price per share for which Common Stock is issuable
               upon such exercise, conversion or exchange" is determined by
               dividing (i) the total amount, if

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               any, received or receivable by the Company as consideration for
               the issuance or sale of all such Common Stock Equivalents, plus
               the minimum aggregate amount of additional consideration, if any,
               payable to the Company upon the exercise, conversion or exchange
               thereof at the time such Common Stock Equivalents first become
               exercisable, convertible or exchangeable, by (ii) the maximum
               total number of shares of Common Stock issuable upon the
               exercise, conversion or exchange of all such Common Stock
               Equivalents. No further adjustment to the Exercise Price will be
               made upon the actual issuance of such Common Stock upon exercise,
               conversion or exchange of such Common Stock Equivalents.

                    (C) Change in Option Price or Conversion Rate. If there is a
               change at any time in (i) the amount of additional consideration
               payable to the Company upon the exercise of any Options; (ii) the
               amount of additional consideration, if any, payable to the
               Company upon the exercise, conversion or exchange of any Common
               Stock Equivalents; or (iii) the rate at which any Common Stock
               Equivalents are convertible into or exchangeable for Common Stock
               (in each such case, other than under or by reason of provisions
               designed to protect against dilution), the Exercise Price in
               effect at the time of such change will be readjusted to the
               Exercise Price which would have been in effect at such time had
               such Options or Common Stock Equivalents still outstanding
               provided for such changed additional consideration or changed
               conversion rate, as the case may be, at the time initially
               granted, issued or sold.

                    (D) Calculation of Consideration Received. If any Common
               Stock, Options or Common Stock Equivalents are issued, granted or
               sold for cash, the consideration received therefor for purposes
               of this Warrant will be the amount received by the Company
               therefor, before deduction of reasonable commissions,
               underwriting discounts or allowances or other reasonable expenses
               paid or incurred by the Company in connection with such issuance,
               grant or sale. In case any Common Stock, Options or Common Stock
               Equivalents are issued or sold for a consideration part or all of
               which shall be other than cash, the amount of the consideration
               other than cash received by the Company will be the fair market
               value of such consideration, except where such consideration
               consists of securities, in which case the amount of consideration
               received by the Company will be the fair market value (closing
               bid price, if traded on any market) thereof as of the date of
               receipt. In case any Common Stock, Options or Common Stock
               Equivalents are issued in connection with any merger or
               consolidation in which the Company is the surviving corporation,
               the amount of consideration therefor will be deemed to be the
               fair market value of such portion of the net assets and business
               of the non-surviving corporation as is attributable to such
               Common Stock, Options or Common Stock Equivalents, as the case
               may be. The fair market value of any consideration other than
               cash or securities will be determined in good

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               faith by an investment banker or other appropriate expert of
               national reputation selected by the Company and reasonably
               acceptable to the holder hereof, with the costs of such appraisal
               to be borne by the Company.

                    (E) Exceptions to Adjustment of Exercise Price.
               Notwithstanding the foregoing, no adjustment will be made under
               this Section 11(b) in respect of an Exempt Issuance.

          (iii) Minimum Adjustment of Exercise Price. No adjustment of the
     Exercise Price shall be made in an amount of less than 1% of the Exercise
     Price in effect at the time such adjustment is otherwise required to be
     made, but any such lesser adjustment shall be carried forward and shall be
     made at the time and together with the next subsequent adjustment which,
     together with any adjustments so carried forward, shall amount to not less
     than 1% of such Exercise Price.

     12. Reorganization, Reclassification, Merger, Consolidation or Disposition
of Assets. In case the Company shall reorganize its capital, reclassify its
capital stock, consolidate or merge with or into another corporation (where the
Company is not the surviving corporation or where there is a change in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or otherwise dispose of its property, assets or business to another corporation
and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor
or acquiring corporation, or any cash, shares of stock or other securities or
property of any nature whatsoever (including warrants or other subscription or
purchase rights) in addition to or in lieu of common stock of the successor or
acquiring corporation ("Other Property"), are to be received by or distributed
to the holders of Common Stock of the Company, then the Holder shall have the
right thereafter to receive, at the option of the Holder, (a) upon exercise of
this Warrant, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) cash equal to the value of this Warrant
as determined in accordance with the Black Scholes option pricing formula. In
case of any such reorganization, reclassification, merger, consolidation or
disposition of assets, the successor or acquiring corporation (if other than the
Company) shall expressly assume the due and punctual observance and performance
of each and every covenant and condition of this Warrant to be performed and
observed by the Company and all the obligations and liabilities hereunder,
subject to such modifications as may be deemed appropriate (as determined in
good faith by resolution of the Board of Directors of the Company) in order to
provide for adjustments of Warrant Shares for which this Warrant is exercisable
which shall be as nearly equivalent as practicable to the adjustments provided
for in this Section 12. For purposes of this Section 12, "common stock of the
successor or acquiring corporation" shall include stock of such corporation of
any class which is not preferred as to dividends or assets over any other class
of stock of such corporation and which is not subject to redemption and shall
also include any evidences of indebtedness, shares of stock or other securities
which

                                       10

<PAGE>

are convertible into or exchangeable for any such stock, either immediately or
upon the arrival of a specified date or the happening of a specified event and
any warrants or other rights to subscribe for or purchase any such stock. The
foregoing provisions of this Section 12 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of
assets.

     13. Voluntary Adjustment by the Company. The Company may at any time during
the term of this Warrant reduce the then current Exercise Price to any amount
and for any period of time deemed appropriate by the Board of Directors of the
Company.

     14. Notice of Adjustment. Whenever the number of Warrant Shares or number
or kind of securities or other property purchasable upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
give notice thereof to the Holder, which notice shall state the number of
Warrant Shares (and other securities or property) purchasable upon the exercise
of this Warrant and the Exercise Price of such Warrant Shares (and other
securities or property) after such adjustment, setting forth a brief statement
of the facts requiring such adjustment and setting forth the computation by
which such adjustment was made.

     15. Notice of Corporate Action. If at any time:

          (a) the Company shall take a record of the holders of its Common Stock
     for the purpose of entitling them to receive a dividend or other
     distribution, or any right to subscribe for or purchase any evidences of
     its indebtedness, any shares of stock of any class or any other securities
     or property, or to receive any other right, or

          (b) there shall be any capital reorganization of the Company, any
     reclassification or recapitalization of the capital stock of the Company or
     any consolidation or merger of the Company with, or any sale, transfer or
     other disposition of all or substantially all the property, assets or
     business of the Company to, another corporation or,

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

then, in any one or more of such cases, the Company shall give to Holder (i) at
least 20 days' prior written notice of the date on which a record date shall be
selected for such dividend, distribution or right or for determining rights to
vote in respect of any such reorganization, reclassification, merger,
consolidation, sale, transfer, disposition, liquidation or winding up, and (ii)
in the case of any such reorganization, reclassification, merger, consolidation,
sale, transfer, disposition, dissolution, liquidation or winding up, at least 20
days' prior written notice of the date when the same shall take place. Such
notice in accordance with the foregoing clause also shall specify (i) the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and
character thereof, and (ii) the date on which any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition,
dissolution, liquidation or winding up is to take place and the time, if any
such time is to be fixed, as of which the holders of Common Stock shall be
entitled to exchange their

                                       11

<PAGE>

Warrant Shares for securities or other property deliverable upon such
disposition, dissolution, liquidation or winding up. Each such written notice
shall be sufficiently given if addressed to Holder at the last address of Holder
appearing on the books of the Company and delivered in accordance with Section
17(d).

     16. Authorized Shares. The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this Warrant. The Company
further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company
will take all such reasonable action as may be necessary to assure that such
Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Principal Market
upon which the Common Stock may be listed.

     Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, 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 of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

     Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise
Price, the Company shall obtain all such authorizations or exemptions thereof,
or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.

     17. Miscellaneous.

          (a) Jurisdiction. All questions concerning the construction, validity,
     enforcement and interpretation of this Warrant shall be determined in
     accordance with the provisions of the Purchase Agreement.

          (b) Restrictions. The Holder acknowledges that the Warrant Shares
     acquired upon the exercise of this Warrant, if not registered, will have
     restrictions upon resale imposed by state and federal securities laws.

                                       12

<PAGE>

          (c) Nonwaiver and Expenses. No course of dealing or any delay or
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding all rights hereunder terminate on the Termination
     Date. If the Company willfully and knowingly fails to comply with any
     provision of this Warrant, which results in any material damages to the
     Holder, the Company shall pay to Holder such amounts as shall be sufficient
     to cover any costs and expenses including, but not limited to, reasonable
     attorneys' fees, including those of appellate proceedings, incurred by
     Holder in collecting any amounts due pursuant hereto or in otherwise
     enforcing any of its rights, powers or remedies hereunder.

          (d) Notices. Any notice, request or other document required or
     permitted to be given or delivered to the Holder by the Company shall be
     delivered in accordance with the notice provisions of the Purchase
     Agreement.

          (e) Limitation of Liability. No provision hereof, in the absence of
     any affirmative action by Holder to exercise this Warrant or purchase
     Warrant Shares, and no enumeration herein of the rights or privileges of
     Holder, shall give rise to any liability of Holder for the purchase price
     of any Common Stock or as a stockholder of the Company, whether such
     liability is asserted by the Company or by creditors of the Company.

          (f) Remedies. Holder, in addition to being entitled to exercise all
     rights granted by law, including recovery of damages, will be entitled to
     specific performance of its rights under this Warrant. The Company agrees
     that monetary damages would not be adequate compensation for any loss
     incurred by reason of a breach by it of the provisions of this Warrant and
     hereby agrees to waive the defense in any action for specific performance
     that a remedy at law would be adequate.

          (g) Successors and Assigns. Subject to applicable securities laws,
     this Warrant and the rights and obligations evidenced hereby shall inure to
     the benefit of and be binding upon the successors of the Company and the
     successors and permitted assigns of Holder. The provisions of this Warrant
     are intended to be for the benefit of all Holders from time to time of this
     Warrant and shall be enforceable by any such Holder or holder of Warrant
     Shares.

          (h) Amendment. This Warrant may be modified or amended or the
     provisions hereof waived with the written consent of the Company and the
     Holder.

          (i) Severability. Wherever possible, each provision of this Warrant
     shall be interpreted in such manner as to be effective and valid under
     applicable law, but if any provision of this Warrant shall be prohibited by
     or invalid under applicable law, such provision shall be ineffective to the
     extent of such prohibition or invalidity, without invalidating the
     remainder of such provisions or the remaining provisions of this Warrant.

          (j) Headings. The headings used in this Warrant are for the
     convenience of reference only and shall not, for any purpose, be deemed a
     part of this Warrant.

                              ********************

                                       13

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated:  March ____, 2004

                  NORTH AMERICAN TECHNOLOGIES GROUP, INC.

                  By:__________________________________________
                     Name:
                     Title:

                                       14

<PAGE>

                               NOTICE OF EXERCISE

To:  North American Technologies Group, Inc.

     (1) The undersigned hereby elects to purchase ________ Warrant Shares of
the Company pursuant to the terms of the attached Warrant (only if exercised in
full), and tenders herewith payment of the exercise price in full, together with
all applicable transfer taxes, if any.

     (2) Payment shall take the form of (check applicable box):

                           [ ] in lawful money of the United States; or

                           [ ] the cancellation of such number of Warrant Shares
                           as is necessary, in accordance with the formula set
                           forth in subsection 3(d), to exercise this Warrant
                           with respect to the maximum number of Warrant Shares
                           purchasable pursuant to the cashless exercise
                           procedure set forth in subsection 3(d).

     (3) Please issue a certificate or certificates representing said Warrant
Shares in the name of the undersigned or in such other name as is specified
below:

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

The Warrant Shares shall be delivered to the following:

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

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

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

     (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D under the Securities Act of 1933, as amended.

                                       [PURCHASER]

                                       By: ______________________________
                                       Name:
                                       Title:

                                       Dated:  __________________________

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

________________________________________________________________.

________________________________________________________________

                                                 Dated:  ______________, _______

                           Holder's Signature:  _____________________________

                           Holder's Address:    _____________________________

                                                _____________________________

Signature Guaranteed:  ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.<PAGE>
                                                                    Exhibit 10.5

                      PURCHASE AND SALE AGREEMENT (4-4-03)
                      ------------------------------------

     THIS PURCHASE AND SALE AGREEMENT ("Agreement"), effective as of the
Effective Date (hereinafter defined), is made by and between TRINITY INDUSTRIES,
INC. a Delaware corporation ("Seller"), and NORTH AMERICAN TECHNOLOGIES GROUP,
INC., a Delaware corporation ("Purchaser").

                                    RECITAL:

     Seller is the owner of the hereinafter described real property and
improvements, and Seller desires to sell all of its right, title and interest in
and to such real property and improvements, and Purchaser desires to purchase
such real property and improvements, upon the terms and conditions set forth
herein.

                                   AGREEMENTS:

     NOW, THEREFORE, in consideration of the foregoing, of the covenants,
promises and undertakings set forth herein, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Seller and Purchaser covenant and agree as follows:

     1.   The Property.

          1.1   Description. Subject to the terms and conditions of this
     Agreement, and for the consideration herein set forth, Seller agrees to
     sell, transfer and convey, and Purchaser agrees to purchase and acquire,
     all of Seller's right, title and interest in and to the following
     (collectively, the "Property"):

                1.1.1  Certain land containing approximately 39.993 acres,
          located in Harrison County, Texas, being described in EXHIBIT A
          attached hereto and by this reference made a part hereof, together
          with the industrial manufacturing/warehouse/office buildings,
          structures and other improvements (including cranes) situated thereon,
          located at U.S. Highway 59, Woodlawn, Texas 75694 (such land, together
          with such buildings, structures and improvements being sometimes
          hereinafter referred to as the "Plant");

                1.1.2  All owned rail spurs, easements, rights-of-way, tenements
          and appurtenances pertaining to the Plant; and

                1.1.3  All water wells and associated pumps, plumbing, and
          storage facilities and the like, pertaining to the Plant.

          1.2   Mineral Reservation. Notwithstanding the description of the
     Property in Section 1.1 above, Seller shall reserve all subsurface oil,
     minerals, natural gas, all surface-mined materials such as sand, gravel and
     aggregate, coal, and the like, or other similar materials of any nature
     (the "Mineral Reservation").

                                                                          Page l

<PAGE>

          1.3   "As-is" Purchase.

                1.3.1  The parties agree that all understandings and agreements
          heretofore made between them or their respective agents or
          representatives are merged in this Agreement and the Exhibits annexed
          hereto, which alone fully and completely express their agreement.

                1.3.2  Except as expressly stated herein, Seller makes no
          representation or warranty as to the truth, accuracy or completeness
          of the Materials (hereinafter described) delivered by Seller to
          Purchaser in connection with the transaction contemplated hereby, and
          the Materials are provided to Purchaser, and any reliance thereon by
          Purchaser shall be, at the sole risk of Purchaser.

                1.3.3  As Purchaser is being provided rights to conduct its own
          inspections of the Property as set forth in Section 3 hereof and to
          review the Materials, Purchaser acknowledges that it is relying on the
          results of its inspections and review of the Materials as to the
          suitability and condition of the Property for its purposes.
          Accordingly, SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY
          WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESS OR
          IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
          ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY,
          FITNESS FOR A PARTICULAR PURPOSE, ZONING, TAX CONSEQUENCES, PHYSICAL
          OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR
          PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, COMPLIANCE OF THE
          PROPERTY WITH GOVERNMENTAL LAWS, INCLUDING ENVIRONMENTAL LAWS, THE
          TRUTH, ACCURACY OR COMPLETENESS OF DOCUMENTS OR OTHER INFORMATION
          PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER OR ANY OTHER MATTER OR
          THING REGARDING THE PROPERTY, EXCEPT FOR THE REPRESENTATIONS OR
          WARRANTIES EXPRESSLY SET FORTH HEREIN. EXCEPT FOR THE REPRESENTATIONS
          AND WARRANTIES SET FORTH HEREIN, PURCHASER ACKNOWLEDGES AND AGREES
          THAT, UPON CLOSING, SELLER SHALL SELL AND CONVEY TO PURCHASER, AND
          PURCHASER SHALL ACCEPT, THE PROPERTY "AS IS, WHERE IS, WITH ALL
          FAULTS." SELLER AND PURCHASER AGREE THAT THE PROVISIONS OF THIS
          SECTION SHALL SURVIVE THE TERMINATION OF THE AGREEMENT OR, IF THE
          TRANSACTION CLOSES, SHALL SURVIVE THE CLOSING OF THIS AGREEMENT.

          1.4   Agreement to Convey. Seller agrees to convey, and Purchaser
     agrees to accept, on the Date of Closing title to the Property by special
     warranty deed (the "Deed"),

                                                                          Page 2

<PAGE>

     subject to the Permitted Exceptions, the Mineral Reservation and the
     Restricted Use, as hereinafter described.

     2.   Price and Payment.

          2.1   Purchase Price. The purchase price for the Property ("Purchase
     Price") shall be One Million Five Hundred Thousand Dollars ($1,500,000.00).

          2.2   Deposit. A deposit of One Hundred Fifty Thousand Dollars ($
     150,000.00) ("Initial Deposit") shall be paid by Purchaser to American
     Title Company (Charles Badgett), 6029 Beltline Road at Preston, Suite 250,
     Dallas, Texas 75240 ("Title Company"), on or before the third (3/rd/)
     business day following the full execution of this Agreement by the parties.
     The Initial Deposit shall be placed in an interest bearing account with a
     federally insured bank doing business and having an office in the State of
     Texas, in the name of the Title Company. On the day after the expiration of
     the Due Diligence Period (as hereinafter defined), if Purchaser has not
     terminated this Agreement, (a) the Initial Deposit shall be released by the
     Title Company to Seller, and (b) an additional deposit of One Hundred Fifty
     Thousand Dollars ($150,000.00) ("Additional Deposit") shall be deposited by
     Purchaser with the Title Company (the Additional Deposit and the Initial
     Deposit are together hereinafter referred to as the "Deposit"), and the
     Deposit shall, except as otherwise provided herein, be non-refundable. The
     Initial Deposit shall be held by Seller and the Additional Deposit shall be
     held by the Title Company in interest bearing accounts as aforesaid, and
     shall be credited against the Purchase Price at Closing. The Initial
     Deposit shall be retained by, and the Additional Deposit shall be paid to,
     Seller if this transaction shall not close, or otherwise paid to Purchaser
     as hereinafter provided. All interest earned on the Initial Deposit and the
     Additional Deposit shall be considered a part thereof. Included within the
     Initial Deposit is the sum of One Hundred Dollars ($100.00) which shall
     constitute the Independent Contract Consideration (herein so called) for
     Purchaser's rights to inspect the Property as hereinafter provided.
     Notwithstanding any provision contained herein to the contrary, in the
     event the Initial Deposit or the Deposit is to be returned to Purchaser
     under the provisions of this Agreement, the Independent Contract
     Consideration shall nevertheless be retained for the benefit of Seller.

          In addition to the Deposit, as hereinabove defined, Purchaser shall
     have the right to make the Financing Extension Deposit, as hereinafter
     provided in Section 2.5, and as provided therein, the Financing Extension
     Deposit shall, for purposes of this Agreement, be included within the
     definition of the Deposit.

          2.3   Payment. The Purchase Price, subject to adjustment for the
     prorations as provided in Section 8.5, below, shall be paid by Purchaser to
     Seller on or before 10:00 a.m., CST on the Date of Closing (hereinafter
     defined) by Purchaser causing the Title Company to wire immediately
     available funds to such bank account as Seller may designate. The Deposit,
     and all interest earned thereon, shall be credited against the Purchase
     Price.

                                                                          Page 3

<PAGE>

          2.4   Closing. Except as provided in Section 2.5 below, the purchase
     and sale contemplated by this Agreement shall be consummated at Closing
     ("Closing"), which shall take place at the offices of the Title Company or
     the Title Company's local title agent in Harrison County, Texas on a date
     and at a time to be mutually agreed upon by the parties, but in any event,
     on or before the thirtieth (30/th/) day after the expiration of the Due
     Diligence Period ("Date of Closing").

          2.5   Extended Closing Date. In the event Purchaser shall not have
     terminated this Agreement as provided in Section 3.3.2 or Section 3.6, but,
     as of the end of the Due Diligence Period, Purchaser has not obtained a
     financing commitment for a Business and Industry Government Loan (the
     "Financing Commitment"), then Purchaser shall have the right to extend
     the Date of Closing for an additional sixty (60) days (the "Financing
     Extension Period"), only for the purpose of obtaining the Financing
     Commitment, by providing written notice to Seller on or before the
     expiration of the Due Diligence Period and by depositing $150,000.00 with
     the Title Company (the "Financing Extension Deposit"). The Financing
     Extension Deposit shall be non-refundable, shall be in addition to the
     Initial Deposit and the Additional Deposit, and for purposes of this
     Agreement, shall be treated as, and disbursed as a part of, the Deposit. In
     the event Purchaser shall not have obtained the Financing Commitment by the
     end of the Financing Extension Period, Purchaser shall have the right to
     terminate this Agreement and its obligations hereunder by providing written
     notice to Seller of such termination on or before the expiration of the
     Financing Extension Period, whereupon the Deposit (including the Financing
     Extension Deposit), shall be paid to Seller; or, in the event that
     Purchaser fails to deliver such written notice to Seller terminating this
     Agreement, such failure shall be deemed to be an election of Purchaser to
     proceed to Closing and to purchase the Property pursuant to the terms and
     conditions herein contained, and, upon Closing, the Financing Extension
     Deposit shall be credited against the Purchase Price as a part of the
     Deposit.

     3.   Due Diligence. Purchaser shall have a period ("Due Diligence Period"),
commencing on the Effective Date and expiring at 5:00 p.m. on the day which is
thirty (30) days thereafter, in which to review the Materials and conduct
inspections of the Property, as described in this Section 3.

          3.1   Materials. Within ten (10) days from the Effective Date, Seller
     shall furnish to Purchaser, or make available for Purchaser to inspect and
     copy, any information and materials which Seller has in its possession or
     control (including the authorization of third-party releases thereof but at
     no expense to Seller), that relate to the Property, such as environmental
     reports, soil reports, building plans and service, maintenance and security
     contracts ("Materials"); provided, however, if Seller does not have any
     such Materials in its possession or control, Seller shall not be obligated
     to obtain them for Purchaser; and provided further that the Seller shall
     not be obligated to make available any information or materials that Seller
     deems proprietary or for internal use only.

                                                                          Page 4

<PAGE>

          3.2   Physical Inspections and Access.

                3.2.1  Seller agrees that, during the Due Diligence Period,
          Seller shall permit Purchaser's agents or representatives reasonable
          access to the Property for purposes of physical and environmental
          inspections of the Property, as permitted by Section 3.2.2, and review
          of the Materials to evaluate and analyze the feasibility of acquiring
          the Property for Purchaser's intended use thereof.

                3.2.2  Purchaser may implement, at its expense, a Phase I
          environmental site assessment and core sampling for geotechnical soil
          analysis, but no Phase II environmental site assessment, nor any
          surface or subsurface invasive or intrusive sampling shall be allowed
          during any inspection without the separate, prior and written consent
          of Seller, which consent may be withheld by Seller at Seller's sole
          and arbitrary discretion, with or without cause. The core sampling for
          geotechnical soil analysis shall be limited in scope to determining
          if the surface and subsurface condition of the ground is suitable for
          structures, foundations, pavements and overall site preparation and
          shall not involve any environmental hazard analysis, unless Seller's
          prior written consent has been obtained.

                In the event Purchaser desires to implement a Phase II
          environmental site assessment or other invasive or intrusive sampling,
          it shall submit its written request to Seller and shall submit a work
          and/or sampling and analysis plan specifically identifying, at a
          minimum, the area(s) and depths to be sampled, sample collection and
          management protocols, sample analytical methods and a schedule for
          work plan or sampling and analysis plan implementation and completion.
          Seller shall respond promptly to any such submission or request made
          by Purchaser.

                In the event Seller shall consent to a Phase II environmental
          site assessment or other invasive or intrusive sampling, Seller may,
          as a condition to granting its consent, participate in the selection
          of the auditor or inspector and the procedure to be followed, observe
          any such site assessment or sampling and terminate the same at any
          time in its sole discretion.

                3.2.3  Costs; Confidentiality. Purchaser shall make such
          inspections and tests provided for in this Section 3 in good faith and
          with due diligence and in compliance with all applicable laws. Seller
          shall cooperate with Purchaser in making such inspections and tests.
          Unless required otherwise under applicable laws or any court orders,
          Purchaser shall treat all information obtained by Purchaser pursuant
          to the terms of this Agreement as strictly confidential through the
          date of Closing; provided, however, that Purchaser may share such
          information with outside consultants, lenders, agents, and Purchaser's
          employees, and may disclose such information as required by law.
          Purchaser shall promptly pay for any and all costs associated with the
          inspection and tests conducted by Purchaser or its representatives on
          the Property or otherwise pursuant to this

                                                                          Page 5

<PAGE>

          Section and agrees to promptly discharge any liens that arise against
          the Property as a result of such inspections and tests.

                3.2.4  Purchaser agrees that, prior to undertaking any physical
          or environmental inspections of the Property, Purchaser or Purchaser's
          agents will obtain not less than One Million Dollars ($1,000,000.00)
          comprehensive general liability insurance with a contractual liability
          endorsement which insures Purchaser's indemnity obligations with
          respect thereto hereunder and which names Seller as an additional
          insured thereunder (a copy of which policy shall be provided by
          Purchaser to Seller prior to undertaking any inspections under Section
          3.2). Such insurance coverage shall be maintained by Purchaser as long
          as this Agreement remains in force and effect. Purchaser agrees at its
          own expense promptly to restore the Property if any inspection or test
          requires or results in any damage to or alteration of its condition.
          Purchaser shall indemnify and hold Seller harmless from any claims,
          loss, injury, liability, damage or expense, including reasonable
          attorneys' fees and costs, arising out of (a) the exercise by
          Purchaser or its agents or representatives of the right of access
          under Section 3.2; and (b) any claims, suits, actions or liabilities
          incurred by Seller arising out of actual damages to the Property
          resulting from Purchaser's entry upon the Property (collectively,
          "Indemnity Obligations"). All agreements of, and indemnifications by
          Purchaser under Section 3.2 shall survive Closing or termination of
          this Agreement for any reason.

          3.3   Title and Survey.

                3.3.1  Within ten (10) days after the Effective Date, Seller
          shall cause the Title Company to deliver to Purchaser a commitment
          ("Title Commitment") to issue an Owner's Policy of Title Insurance
          ("Title Policy"), at Seller's expense, to Purchaser insuring the
          Property, together with copies of all items shown as exceptions to
          title therein. Within ten (10) days after the Effective Date, Seller
          shall furnish to Purchaser a copy of its existing survey of the
          Property (the "Survey"). Purchaser may obtain, at its expense, a
          re-certification or update of the Survey if required by the Title
          Company in order to modify the standard survey/boundary exception.

                3.3.2. Title to the Property shall be good and indefeasible,
          free and clear of all liens, encumbrances and other matters
          unacceptable to Purchaser, except the Permitted Exceptions. Title
          shall be insurable at standard rates with only the Permitted
          Exceptions. The Title Commitment includes a written preliminary title
          report, and if such title report shall disclose defects in title such
          that title does not comply with the provisions of this Section
          (hereinafter "Title Objection"), then Purchaser shall so notify Seller
          and the Title Company by written notice of its objections to title
          within ten (10) days of the date of receipt of the Title Commitment
          ("Objection Notice"). If the title report or Survey shall reveal a
          Title Objection and such Title Objection is one which Seller elects to
          remedy,

                                                                          Page 6

<PAGE>

          then Seller shall take such action as may be necessary, at Seller's
          expense, to correct such Title Objection within fifteen (15) days from
          Seller's receipt of the Objection Notice. If such Title Objection is
          corrected and remedied by Seller, then this Agreement shall continue
          in full force and effect in the same manner and for all intents and
          purposes as if such Title Objection had never existed. If Seller shall
          notify Purchaser in writing that it elects not to remedy a Title
          Objection ("Seller's Notice") or if the title report shall reveal a
          Title Objection that cannot be remedied within fifteen (15) days from
          Seller's receipt of the Objection Notice, then Purchaser, at
          Purchaser's election, shall, within ten (10) days of receipt of
          Seller's Notice, by written notice to Seller either (i) waive such
          uncured Title Objection, in which event the parties shall proceed with
          Closing under this Agreement in accordance with and subject to the
          terms and provisions hereof; or (ii) terminate this Agreement, in
          which event the Initial Deposit shall be promptly refunded to
          Purchaser, and thereupon all parties hereto shall be released from all
          further liability hereunder, at law and in equity, except for
          obligations that expressly survive termination of this Agreement.
          Notwithstanding the foregoing, if a Title Objection that Seller is
          willing to remedy cannot be remedied within fifteen (15) days of the
          Objection Notice, and Purchaser desires that such Title Objection be
          remedied, then, if Seller is willing to do so, Seller shall commence
          the remedy of such Title Objection and diligently pursue the same to
          completion prior to the end of the Due Diligence Period.

          3.4   Permitted Exceptions. Purchaser shall be deemed to have approved
     and to have agreed to purchase the Property subject to the following
     (collectively, "Permitted Exceptions"):

                3.4.1  All matters of title and survey not objected to in
          accordance with Section 3.3.2 above or objected to but not cured as of
          the expiration of the Due Diligence Period; and,

                3.4.2  The lien of non-delinquent real property taxes and
          assessments, but in all cases, prorated between the parties as of the
          date of Closing.

          3.5   Restricted Use. The conveyance of the Property shall be subject
     to (and the Deed shall so provide) the restriction that no portion of the
     Property shall be used by Purchaser, or any parent entity, merged or
     consolidated entity, affiliate, agent or assign of Purchaser, as a facility
     for (i) railcar repair, railcar re-manufacturing or the manufacture of
     railcars or railcar kits, or for the manufacture or repair of any railcar
     parts or components, (ii) the production of LPG tanks, storage vessels and
     industrial heads, highway guardrail or other highway safety products, (iii)
     the manufacture of ocean-going or river barges or the parts, components or
     assemblies thereof, (iv) the manufacture of structural towers, (v) the
     manufacture of castings and fittings (hot or cold forged), or (vi) the
     ready mix concrete and and/or aggregates business ("Restricted Use"). The
     Restricted Use shall run with the Property and be binding upon Purchaser
     and its successors and assigns.

                                                                          Page 7

<PAGE>

          3.6   Purchaser's Right to Terminate. In the event Purchaser has not
     terminated this Agreement as provided in Section 3.3.2, Purchaser shall
     have the right to terminate this Agreement and its obligations hereunder in
     the event it shall not be satisfied with the results of its reviews and
     inspections described in Section 3.1 and 3.2, or if a Title Objection has
     not been remedied as provided in the last sentence of Section 3.3.2, by
     providing written notice to Seller of such termination on or before the
     expiration of the Due Diligence Period. In the event that, by such date and
     time, Purchaser fails to deliver written notice to Seller terminating this
     Agreement, such failure shall be deemed to be an election of Purchaser to
     proceed to Closing and to purchase the Property pursuant to the terms and
     conditions herein contained, and the Deposit shall, except as otherwise
     provided herein, become non-refundable in the absence of default by Seller
     hereunder. If Purchaser timely terminates this Agreement pursuant to this
     Section 3.6, the Initial Deposit shall be returned to Purchaser and neither
     party shall have any further obligations or liability hereunder. In the
     event Purchaser terminates this Agreement in accordance with the provisions
     of this Section 3.6, Purchaser shall deliver to Seller copies of all
     inspection and environmental reports produced for Purchaser during the Due
     Diligence Period.

          3.7   Seller's Right to Terminate. Notwithstanding Purchaser's failure
     to terminate this Agreement within the Due Diligence Period as provided in
     Section 3.6 above, if Seller has conducted its own Phase I environmental
     site assessment during the Due Diligence Period, Seller shall have the
     right to terminate this Agreement if Seller is not satisfied with the
     results of such assessment, by providing written notice to Purchaser of
     such termination on or before the expiration of the Due Diligence Period.
     If Seller shall terminate this Agreement pursuant to this Section 3.7, the
     Initial Deposit shall be returned to Purchaser and neither party shall have
     any further obligations or liability hereunder.

          3.8   Post-Closing Covenants.

                3.8.1  In the event that, prior to Closing, Seller has
          undertaken, but not completed, certain clean-up activities at the
          Property, Purchaser shall grant Seller access to the Property for a
          reasonable period of time following the Closing for such purpose (the
          "Post Closing Period"). During the Post Closing Period, Seller shall
          use all reasonable efforts to avoid interference with Purchaser or its
          operations and shall provide notification to Purchaser at such time as
          Seller has completed such activities.

                3.8.2  Following the Closing, Purchaser shall undertake no Phase
          II environmental site assessment or other invasive or intrusive
          sampling of the Property unless required to do so by law or other
          legal mandate.

     4.   Insurance. Prior to Closing, Seller shall maintain its existing
casualty and liability insurance with respect to the Property.

     5.   Representations and Warranties.

                                                                          Page 8

<PAGE>

          5.1   By Seller. Seller represents and warrants to Purchaser as of the
     Effective Date:

                5.1.1  Seller is a corporation duly organized and validly
          existing under the laws of Delaware and duly qualified to conduct
          business and in good standing in the State of Texas.

                5.1.2  Seller is the fee simple owner of the Property and has
          the power to sell the Property and to engage in the transactions
          contemplated in this Agreement.

                5.1.3  The execution and performance of this Agreement has been
          duly authorized by Seller.

                5.1.4  Seller has received no notice of any condemnation or
          eminent domain proceedings pending or contemplated against the
          Property or any part thereof or interest therein.

                5.1.5  There are no leases; licenses, tenancies or other
          occupancy agreements of any nature or any kind affecting the Property
          or any part thereof.

          5.2   By Purchaser. Purchaser represents and warrants to Seller as of
     the Effective Date that:

                5.2.1  Purchaser is a corporation duly organized and validly
          existing and in good standing in the State of Delaware and duly
          qualified to conduct business and in good standing in the State of
          Texas.

                5.2.2  Purchaser has the power to acquire and own the Property
          and to engage in the transactions contemplated in this Agreement.

                5.2.3  The execution and performance of this Agreement has been
          duly authorized by Purchaser.

          5.3.  Commissions. Seller and Purchaser each represents to the other
     that, except for a commission payable by Seller to J.R. McDearman, LLC
     pursuant to separate agreement, it has had no dealings, negotiations, or
     consultations with any broker, representative, employee, agent or other
     intermediary in connection with the sale of the Property. Seller and
     Purchaser agree that each will indemnify, defend and hold the other free
     and harmless from the claims of any other broker(s), representatives),
     employees), agent(s) or other intermediary(ies) claiming to have
     represented Seller or Purchaser, respectively, or otherwise to be entitled
     to compensation in connection with this Agreement or in connection with the
     sale of the Property. This mutual indemnity shall survive Closing and any
     termination of this Agreement for any reason.

                                                                          Page 9

<PAGE>

     6.   Notices. Any notice required or permitted to be given hereunder must
be in writing and shall be deemed to be given when (a) hand delivered, or (b)
one (1) business day after pickup by overnight express service, in either case
addressed to the parties at their respective addresses set forth below:

          If to Seller:          2525 Stemmons Freeway
                                 Dallas, Texas 75207
                                 Attention: John Lee, Vice President
                                 Phone: (214)589-8618
                                 Facsimile: (214)589-2515
                                 E-Mail: john.lee@trin.net

          With a copy to:        Theis Rice, Vice President-Legal Affairs
                                 2525 Stemmons Freeway
                                 Dallas, Texas 75207
                                 Phone: (214)589-8170
                                 Facsimile: (214)589-8824
                                 E-Mail: theis.rice@trin.net

          and with a copy to:    Law Offices of Richard A. Fogel, PLLC
                                 2730 Stemmons Freeway, Suite 813
                                 Dallas, Texas 75207
                                 Attention: Richard A. Fogel, Esq.
                                 Phone: (214)267-9110
                                 Facsimile: (214)267-9115
                                 E-Mail: rfogel@airmail.net

          If to Purchaser:       14315 West Hardy Road
                                 Houston, Texas 77060
                                 Attention: Henry W. Sullivan, President and CEO
                                 Phone: (281)847-0029
                                 Facsimile: (281)847-1791
                                 E-mail: hsullivan@natk.com

          With a copy to:        14314 West Hardy Road
                                 Houston, Texas 77060
                                 Attention: Kevin C. Maddox
                                 Phone: (281)847-0029
                                 Facsimile: (281)847-1791
                                 E-mail: kmaddox@na1k.com

or in each case to such other address as either party may from time to time
designate by giving notice in writing pursuant to this Section 6 to the other
party. Telephone and facsimile numbers and e-mail addresses are for
informational purposes only. Effective notice will be deemed given only as
provided above, except as otherwise expressly provided in this Agreement.

                                                                         Page 10

<PAGE>

     7.   Conditions to Closing. If Purchaser has not terminated this Agreement
as provided in Section 3.6, then the parties shall proceed to Closing; provided,
however, Purchaser's or Seller's obligation to close this transaction shall be
subject to the condition that, prior to the Date of Closing, (a) Seller shall
not have received notice from a governmental authority that a material portion
of the Property shall be permanently taken under the power of eminent domain
("Condemnation Notice") or (b) a material portion of the Plant shall not have
been damaged by casualty, and in either case, such taking or casualty damage
shall render the Property unusable for Purchaser's intended use. In the event
Seller shall have received a Condemnation Notice or the Plant shall have
suffered a casualty, Seller shall furnish a copy of the Condemnation Notice or
a notice concerning such casualty to Purchaser, and either party may furnish
written notice to the other party of its election to terminate this Agreement,
in which event the Deposit shall be returned to Purchaser and the parties shall
have no further obligations hereunder except for the Surviving Obligations;
otherwise, this transaction shall close on the Date of Closing and Purchaser
shall pay the full Purchase Price provided for in Section and Seller shall
assign to Purchaser its rights to any award in connection with such taking or
any insurance proceeds payable to Seller by reason of such casualty.

     Seller's obligation to close this transaction shall be subject to the
condition that, on or prior to the Closing, the lender who issues the Financing
Commitment to Purchaser and ultimately provides funding for this transaction
shall have executed and delivered to Seller the Lender Acknowledgement in the
form attached hereto as EXHIBIT B (the "Lender Acknowledgement"). Purchaser's
failure to have obtained the Lender Acknowledgement and caused the same to be
delivered to Seller as aforesaid, shall be a Purchaser default subject to the
provisions of Section 9.1 hereof.

     8.   Closing and Escrow.

          8.1   Seller's Deliveries. Seller shall deliver at the Closing the
     following original documents, each executed and, if required, acknowledged:

                8.1.1  The Deed to the Property, subject to the Permitted
          Exceptions and the Restricted Use and the Mineral Reservation.

                8.1.2  Such documents as are reasonably required of Seller
          pursuant to the Title Commitment as a condition precedent to the
          issuance of the Title Policy pursuant to the terms thereof.

                8.1.3  A settlement statement.

          8.2   Purchaser's Deliveries. At the Closing, Purchaser shall (i) pay
     Seller the Purchase Price as required by Section 2 hereof, and (ii) execute
     and deliver the following documents:

                                                                         Page 11

<PAGE>

                8.2.1  Such documents as are required of Purchaser pursuant to
          the Title Commitment as a condition precedent to the issuance of the
          Title Policy pursuant to the terms thereof.

                8.2.2  A settlement statement.

                8.2.3  The Lender Acknowledgement.

          8.3   Possession. Purchaser shall be entitled to possession of the
     Property at the conclusion of the Closing.

          8.4   Insurance. Seller shall terminate its policies of insurance as
     of noon on the Date of Closing, at which point the risk of loss shall pass
     to Purchaser and Purchaser shall be responsible for obtaining its own
     insurance thereafter.

          8.5.  Costs and Prorations.

                8.5.1  Purchaser's Costs. Purchaser will pay the following costs
          of closing this transaction upon the Closing:

                       (a)  The fee due in connection with the recordation of
                the Deed;

                       (b)  One-half (1/2) of all Closing fees and other charges
                of the Title Company due in connection with the closing of this
                transaction;

                       (c)  Any and all costs and expenses in connection with
                obtaining financing for the purchase of the Property, including
                without limitation any fees required to be paid upon the
                recordation of any deed of trust or other security agreement
                executed and recorded in connection with such financing;

                       (d)  The portion of the premium for the Title Policy to
                modify any survey or boundary exception and to provide title
                insurance coverage to Purchaser's mortgagee;

                       (e)  The fees and disbursements of Purchaser's counsel;
                and

                       (f)  The cost of any re-certification or update of the
                Survey.

                8.5.2  Seller's Costs. Seller will pay the following costs of
          closing this transaction upon the Closing:

                       (a)  The fees and disbursements of Seller's counsel;

                       (b)  The commission referred to in Section 5.3 above;

                                                                         Page 12

<PAGE>

                       (c)  One-half (1/2) of all Closing fees and other charges
                of the Title Company due in connection with the closing of this
                transaction;

                       (d)  The base premium for the Title Policy; and

                       (e)  The cost and expense of removing any liens,
                encumbrances or other Title Objections which Seller has elected
                to cure.

                8.5.3  Expense Prorations. All sewer charges, utility charges,
          security fees and normally prorated operating expenses billed or paid
          as of the Date of Closing shall be prorated as of the Date of Closing
          and shall be adjusted against the Purchase Price due at Closing,
          provided that within sixty (60) days after Closing, Purchaser and
          Seller will make a further adjustment for such expenses or charges
          which may have accrued or been incurred prior to the Date of Closing,
          but not received or paid at that date.

                8.5.4  Tax Prorations. General real estate taxes and special
          assessments relating to the Property payable during the year in which
          Closing occurs shall be prorated as of the Date of Closing. If
          Closing shall occur before the actual taxes and special assessments
          payable during such year are known, the apportionment of taxes shall
          be upon the basis of taxes for the Property payable during the
          immediately preceding year; provided that, if the taxes and special
          assessments payable during the preceding year in which Closing occurs
          are thereafter determined to be more or less than the taxes payable
          during the preceding year (after any appeal of the assessed valuation
          thereof is concluded), Seller and Purchaser promptly shall adjust the
          proration of such taxes and special assessments, and Seller or
          Purchaser, as the case may be, shall pay to the other any amount
          required as a result of such adjustment. Notwithstanding the
          foregoing, Purchaser shall be responsible for any "rollback" or
          similar taxes assessed for periods prior to Closing due to a change in
          use or ownership of the Property after Closing.

                8.5.5  Utility Deposits. Seller shall be entitled to the return
          of any deposit(s) posted by it with any utility company and Seller
          shall notify each utility company serving the Property to terminate
          Seller's account, effective as of the Closing Date. Seller agrees to
          reasonably cooperate with Purchaser in transferring any utility
          company accounts with respect to the Property.

     9.   Default.

          9.1   Purchaser Default. If Purchaser shall fail or refuse to purchase
     the Property in violation of Purchaser's obligations hereunder for any
     reason (other than a default by Seller under this Agreement), or shall
     otherwise be in default in its obligations hereunder, and shall not have
     cured such default within ten (10) days after receipt of notice thereof
     from Seller, Seller shall have as its sole remedy the right to terminate
     this

                                                                         Page 13

<PAGE>

     Agreement and the Deposit shall be paid to Seller by Purchaser as
     liquidated damages. Seller and Purchaser acknowledge and agree that, it
     would be extremely difficult to accurately determine the amount of damages
     suffered by Seller as a result of Purchaser's default hereunder; the
     Deposit and any interest accrued thereon constitutes a fair a reasonable
     amount to be received by Seller as agreed and liquidated damages for
     Purchaser's default under this Agreement, as well as a fair, reasonable and
     customary amount to be paid as liquidated damages to a seller in an arm's
     length transaction of the type contemplated by this Agreement upon a
     default by the purchaser thereunder; and receipt by Seller of the Deposit
     and interest accrued thereon upon Purchaser's default hereunder shall not
     constitute a penalty or a forfeiture.

          9.2   Seller Default. If Seller shall refuse or fail to convey the
     Property to Purchaser in violation of Seller's obligations hereunder for
     any reason other than a default by Purchaser under this Agreement, or shall
     otherwise be in default in its obligations hereunder, and shall not have
     cured such default within ten (10) days after receipt of notice thereof
     from Purchaser, Purchaser shall have as its sole and exclusive remedy
     hereunder the right to either: (a) terminate this Agreement and have the
     Deposit and interest accrued thereon returned; or (b) seek specific
     performance of this Agreement. In the event that Purchaser elects to seek
     specific performance under Section 9.2(b) above, Purchaser hereby agrees
     that: (i) Purchaser shall bring such action within ninety (90) days after
     the scheduled Date of Closing, or else such remedy shall be deemed waived;
     and (ii) in no event shall Seller be obligated to undertake any of the
     following (A) change the condition of the Property or restore the same
     after any fire or casualty; (B) expend any money (except as provided in
     Section 3.4 above) or post a bond to remove or insure over a title defect
     or encumbrance or to correct any matter shown on a survey of the Property
     except a title defect created by the act, or omission to act, by Seller
     from and after the full execution of this Agreement by the parties; (C)
     secure any permit, approval, or consent with respect to the Property or
     Seller's conveyance thereof; or (D) expend any money to repair, improve or
     alter the Property or any portion thereof. If Purchaser shall not institute
     an action for specific performance within ninety (90) days after the Date
     of Closing, time being of the essence, and Purchaser has not then elected
     to waive such default by Seller, Purchaser shall be deemed to have elected
     to exercise the remedy set forth in Section 9.2(a) above.

          9.3   Attorneys' Fees. Notwithstanding anything to the contrary in
     this Agreement, in the event that either Seller or Purchaser, as the case
     may be, shall bring a lawsuit against the other party to enforce their
     respective rights under Section 9.1 and 9.2 above, the losing party shall
     pay the prevailing party's costs and expenses incurred in connection with
     such litigation, including without limitation reasonable attorneys' fees.
     The "prevailing party" shall be determined by the court hearing such
     matter.

     10.  Miscellaneous.
          -------------

          10.1  Entire Agreement. This Agreement, together with the Exhibits
     attached hereto, all of which are incorporated by reference, is the entire
     agreement between the

                                                                         Page 14

<PAGE>

     parties with respect to the subject matter hereof, and no alternation,
     modification or interpretation hereof shall be binding unless in writing
     and signed by both parties.

          10.2  Severability. If any provision of this Agreement or its
     application to any party or circumstances shall be determined by any court
     of competent jurisdiction to be invalid and unenforceable to any extent,
     the remainder of this Agreement or the application of such provision to
     such person or circumstances, other than those as to which it is so
     determined invalid or unenforceable, shall not be effected thereby, and
     each provision hereof shall be valid and shall be enforced to the fullest
     extent permitted by law.

          10.3  Applicable Law. This Agreement shall be construed and enforced
     in accordance with the internal laws of the State of Texas.

          10.4  Assignability. Purchaser shall not have the right, except upon
     the prior written consent of Seller, to assign or transfer any or all of
     Purchaser's rights, obligations and/or interests under this Agreement, nor
     shall any of Purchaser's rights, obligations and/or interests hereunder be
     assignable by operation of law or otherwise; provided that, as a condition
     to granting its consent, Seller may require that Purchaser remain liable
     for all of the obligations of Purchaser hereunder.

          10.5  Successors Bound. This Agreement shall be binding upon and inure
     to the benefit of Purchaser and Seller and their respective successors and
     assigns.

          10.6  No Public Disclosure. All press releases or other dissemination
     of information to the media or responses to requests from the media for
     information relating to the transaction contemplated herein shall be
     subject to the prior written consent of both parties.

          10.7  Captions: Interpretation. The captions in this Agreement are
     inserted only as a matter of convenience and for reference and in no way
     define, limit or described the scope of this Agreement or the scope or
     content of any of its provisions. Whenever the context may require, words
     used in this Agreement shall include the corresponding feminine, masculine,
     or neuter forms, and the singular shall include the plural and vice versa.
     Unless the context expressly indicates otherwise, all references to
     "Section" are to sections of this Agreement. The parties acknowledge that
     they have had the opportunity to be represented by counsel in the
     negotiation and execution of this Agreement, and therefore, it is expressly
     agreed that in the case of any vagueness or ambiguity with regard to any
     provision of this Agreement, there shall be no presumption of construction
     against the drafter of such provision, but instead this Agreement shall be
     interpreted in accordance with a fair construction of the law.

          10.8  No Partnership. Nothing contained in this Agreement shall be
     construed to create a partnership or joint venture between the parties or
     their successors in interest.

          10.9  Time of Essence. Time is of the essence in this Agreement.

                                                                         Page 15

<PAGE>

          10.10 Counterparts. This Agreement may be executed and delivered in
     any number of counterparts, each of which so executed and delivered shall
     be deemed to be an original and all of which shall constitute one and the
     same instrument.

          10.11 Proper Execution. Purchaser shall have five (5) days from its
     receipt of the unsigned form of this Agreement from Seller to execute and
     forward this Agreement to Seller for its execution; otherwise, the form
     submitted by Seller shall be considered withdrawn and of no effect after
     such five (5) day period. The submission by Seller to Purchaser of this
     Agreement for execution by Purchaser and the actual execution thereof and
     delivery to Seller by Purchaser shall have no binding force and effect on
     Seller unless and until Seller shall have executed this Agreement and this
     Agreement and the Initial Deposit shall have been received by the Title
     Company.

          10.12 Limitation of Liability. It is further hereby expressly agreed
     that in no event shall any officer, director, employee, agent or
     representative of Seller or Purchaser have any personal liability in
     connection with this Agreement or the transaction envisioned herein.

          10.13 Waiver. No waiver of any breach of any agreement or provision
     contained herein shall be deemed a waiver of any preceding or succeeding
     breach of any other agreement or provision herein contained. No extension
     of time for the performance of any obligation or act shall be deemed an
     extension of time for the performance of any other obligation or act.

          10.14 Survival. It is agreed that all representations, statements,
     agreements, warranties and covenants of each party hereunder shall continue
     to bind the parties and survive Closing pursuant to this Agreement;
     PROVIDED, HOWEVER, such representations, statements, agreements, warranties
     and covenants shall expire automatically without further action of the
     parties on the first (1/st/) anniversary of Closing unless a specific claim
     in writing with respect to these matters shall have been made, or an action
     at law or in equity shall have been commenced or filed before such date.

          10.15 Business Days. If any date herein setforth for the performance
     of any obligations by Seller or Purchaser or for the delivery of any
     instrument or notice as herein provided should fall on a Saturday, Sunday
     or Legal Holiday (hereinafter defined), the compliance with such
     obligations or delivery shall be deemed acceptable on the next business day
     following such Saturday, Sunday or Legal Holiday. As used herein, the term
     "Legal Holiday" shall mean any local or federal holiday on which post
     offices are closed in Dallas, Texas.

          10.16 Surviving Obligations. The term "Surviving Obligations", as used
     herein shall mean, collectively, the Indemnity Obligations and any other
     obligations of the parties which expressly survive Closing or the
     termination of this Agreement for any reason.

                                                                         Page 16

<PAGE>

          10.17 Effective Date. The "Effective Date" of this Agreement shall be
     the date of acknowledgment by the Title Company of receipt of this fully
     executed Agreement and the Initial Deposit

                            [Signature Page Follows]

                                                                         Page 17

<PAGE>

     IN WITNESS WHEREOF, Purchaser and Seller have executed this Agreement on
the dates set forth below, effective as of the Effective Date.

                                        SELLER:

                                        TRINITY INDUSTRIES, INC.

                                        By:    John Lee
                                           -------------------------------------
                                        Name:  John Lee
                                        Title: Vice President

                                        Date:
                                             -----------------------------------

                                        PURCHASER:

                                        NORTH AMERICAN TECHNOLOGIES GROUP, INC.

                                        By: /s/ Henry W. Sullivan
                                           -------------------------------------
                                        Name:  Henry W. Sullivan
                                        Title: President and CEO

                                        Date: 17 APR 03

                                 ACKNOWLEDGMENT

     The undersigned hereby acknowledges receipt of the fully executed Purchase
and Sale Agreement and the Initial Deposit and agrees to hold, invest, and
disburse the Initial Deposit, all pursuant to and in accordance with the terms
and provisions of the said Agreement.

                                        AMERICAN TITLE COMPANY

                                        By:    Charles Badgett
                                           -------------------------------------
                                        Name:  Charles Badgett
                                        Title: Vice President

                                        Date:
                                             -----------------------------------

                                                                         Page 18

<PAGE>

                                    EXHIBIT A

                                LEGAL DESCRIPTION

                                   [Attached]

                                                                         Page 19

<PAGE>

                                   EXHIBIT A

                        Trinity Industries, Inc. Property
                                   U.S. Hwy. 59
                        6 miles north of Marshall, Texas

          All that certain lot, tract, or parcel of land situated in Harrison
          County, Texas, about 7 miles North of the Courthouse in the City of
          Marshall, being 39.993 acres of land, a part of the LEWIS WATKINS
          SURVEY, A-750, and being that same land called to contain 40 acres
          described in a deed from Marshall Industrial Foundation to Cooper
          Industries, Inc., recorded in Volume 1373, Page 783 of the Harrison
          County Deed Records, said 39.993 acres being more particularly
          described as follows:

          Beginning at a 1/2" iron rod set for corner for the Northeast corner
          of herein described tract, being on the West margin of the T & P
          Railroad right-of-way, at its point of intersection with the South
          line of the Townsite of Woodlawn, as shown by plat, recorded in Volume
          1, page 351 of said Deed Records, said beginning corner being 840.01
          feet Southerly from the intersection of U.S. Hwy. 59 with FM 1997, and
          being the Northeast corner of that certain called 55 acre tract of
          land described in a deed to J.C. Callaway, dated April 4, 1898 and
          recorded in Volume 40, Page 280 of said Deed Records;

          Thence South 11 deg 42'00" West, with the East line of said 55 acre
          tract and the West right-of-way line of said railroad, 2577.42 feet to
          a 1/2" iron rod set for corner at the Southeast corner of the herein
          described tract, same being the Northeast corner of that certain 53.84
          acre tract described in a deed to Ty Mitchell, recorded in Volume
          1374, Page 120 of said Deed Records, a fence corner bears North 78 deg
          20'41" West - 0.51 feet;

          Thence North 78 deg 20'41" West, with the North line of said 53.84
          acre tract, at 1240.34 feet pass a 1/2" iron rod set for reference on
          the Easterly side of Memory Lane, a county maintained road, and
          continuing in all, 1275.20 feet to a railroad spike set for corner in
          said road for the Southwest corner of the herein described tract,
          being the Northwest corner of said 53.84 acre tract and being on the
          Southeast line of that land owned by Taxie B. Davis, called to contain
          165 acres and described in several deeds to E.B. Blalock, recorded in
          Volume 25, Page 294, Volume 36, Page 310, Volume 41, Page 31 of said
          Deed Records;

          Thence in a Northeasterly direction, generally along said Memory Lane,
          along the centerline of the "Old Marshall- Woodlawn Road", being the
          Northwest line of said called 55 acre tract, (1) North 29 deg 03'00"
          East 132.00 feet to a 1/2" iron rod set,

<PAGE>

          (2) North-40 deg 56'00" East - 400.00 feet to a railroad spike set,
          (3) North 35 deg 30'00" East - 400.00 feet to a railroad spike set,
          and (4) North 36 deg 18'33" East - 1910.96 feet to a 1/2" iron rod
          set for corner for the Northwest corner of the herein described tract,
          being on the South line of said Townsite of Woodlawn;

          Thence South 78 deg 18'00" East, with the North line of said called
          55 acre tract and said South line of said Townsite, 83.30 feet to the
          place of beginning and containing 39.993 acres of land, of which
          approximately 2.8 acres lies within the Memory Lane right-of-way.

     This conveyance is made and accepted subject to the following restrictive
covenants, easemants and reservations of record in the office of the County
Clerk of Harrison County, Texas, applicable to and/or affecting the property
conveyed hereby, limited, however to, the following:

     A. Estate created by oil, gas and mineral lease granted to G. A. Ritnour
in instrument dated March 15, 1945, recorded in Vol. 273, page 287, of the Deed
Records of Harrison County, Texas, and all terms, conditions, and stipulations
contained therein.

     B. All oil, gas and other minerals of every character in and under the
herein described property, together with any and all rights of the owners of the
mineral estate to execute leases and grant the lessee the rights of ingress and
egrass for the use of the surface for exploration, capture, and handling of oil,
gas and other minerals, as reserved by Charles M. Davis, et ux. and Barney Roy
Goolsby, in instrument recorded in Vol. 666, pages 405 and 409, as amended in
Vol. 843, page 173, Deed Records, Harrison County, Texas.

     C. Right of way to Marshall Electric Co. from J. C. Callaway in instrument
dated June 1, 1915, recorded in Vol. 87, page 340, of the Deed Records of
Harrison County, Texas.

     D. Right of way to Southwestern Bell Telephone Co. from J. C. Callaway in
instrument dated Jan. 23, 1934, recorded in Vol. 19B, page 218, of the Deed
Records of Harrison County, Texas.

     E. Right of way to Southwestern Bell Telephone Co. from Mrs. Alice
Callaway in instrument dated April 15, 1946, recorded, in Vol. 299, page 128, of
the Deed Records of Harrison County, Texas.

<PAGE>

                                    EXHIBIT B

                             LENDER ACKNOWLEDGEMENT

                                   [Attached]

                                                                         Page 20

<PAGE>

                             LENDER ACKNOWLEDGEMENT
                             ----------------------

     The undersigned, as lender to North American Technologies Group, Inc.
("NATK"), hereby acknowledges that it has been advised that Trinity Industries,
Inc. ("Trinity") sold approximately 39.993 acres, together with certain
improvements, located in Harrison County, Texas, to NATK for $1.5 million cash
on__________, 2003.

                                        LENDER:

                                        By:_____________________________________
                                        Name:___________________________________
                                        Title:__________________________________

                                        Date:___________________________________

                                                                         Page 21

<PAGE>

                 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT
                 ----------------------------------------------

     THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT (this "First
Amendment"), dated as of the date of full execution hereof, is made by and
between Trinity Industries, Inc. a Delaware corporation ("Seller"), and North
American Technologies Group, Inc., a Delaware corporation ("Purchaser").

                                    RECITAL:

     Seller and Purchaser are parties to that certain Purchase and Sale
Agreement of even date herewith (the "Agreement") and desire to amend the
Agreement as hereinafter provided. The defined terms used in this First
Amendment shall have the meanings ascribed to them in the Agreement unless
otherwise defined herein.

     NOW, THEREFORE, in consideration of the terms and conditions set forth in
the Agreement, as amended by this First Amendment, Seller and Purchaser covenant
and agree as follows:

     1.   The Due Diligence Period shall be sixty (60) days, instead of thirty
(30) days, from the Effective Date. During the first thirty (30) days of the Due
Diligence Period (the "Inspection Phase"), Purchaser shall complete its review
of the Materials, conduct its physical inspections of the Property, and review
the Title Commitment and Survey, all as provided in Sections 3.1, 3.2 and 3.3 of
the Agreement. Purchaser's right to furnish the notice of termination, as
provided in Section 3.6 of the Agreement, shall be applicable only during the
Inspection Phase, and, if such notice of termination is not given by the end of
the Inspection Phase, Purchaser shall be deemed to be satisfied with the results
of such reviews and inspections.

     2.   During the last thirty (30) days of the Due Diligence Period (the
"Financing Phase"), Purchaser shall, if it has not previously obtained the
Financing Commitment as a result of its application therefor made during the
Inspection Phase, continue to diligently pursue obtaining the Financing
Commitment. If the Financing Commitment has not been obtained by the end of the
Financing Phase, then, subject to Purchaser's right to extend the Date of
Closing as provided in Section 2.5 of the Agreement, Purchaser shall have the
right to furnish the notice of termination, as provided in Section 3.6 of the
Agreement, only on the basis that it has not, despite its diligent efforts,
obtained the Financing Commitment. If such notice of termination is not given by
the end of the Financing Phase, then Purchaser shall either proceed to Closing
or exercise its right to extend the Date of Closing in accordance with the
provisions of Section 2.5.

     3.   The Financing Extension Period shall be forty-five (45) days instead
of sixty (60) days.

     4.   Except as amended by this First Amendment, all other terms of the
Agreement shall continue to be applicable and in full force and effect as
originally set forth in the Agreement.

<PAGE>

     IN WITNESS WHEREOF, Purchaser and Seller have executed this First Amendment
effective as of the date of full execution by the parties.

                                        TRINITY INDUSTRIES, INC.

                                        By:    John M. Lee
                                           -------------------------------------
                                        Name:  John M. Lee
                                        Title: Vice President

                                        NORTH AMERICAN TECHNOLOGIES GROUP, INC.

                                        By: /s/ Henry W. Sullivan
                                           -------------------------------------
                                        Name:  HENRY W. SULLIVAN
                                        Title: PRESIDENT

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