Document:

Letter dated June 25, 2007

 Exhibit 10.2 
 June 25, 2007 
 Mr. John T. Corcia 
 Chief Executive Officer 
 North American Technologies Group, Inc. 
 429 Memory Lane 
 Marshall, Texas 75672 
  

	Re:	Letter Agreement Regarding Loans to 

 North American
Technologies Group, Inc. 
 Dear Mr. Corcia: 
 The purpose
of this letter is to set forth the terms on which the undersigned shareholders of North American Technologies Group, Inc. are willing to lend additional funds to North American Technologies Group, Inc. and its subsidiaries (collectively referred to
herein as “NATK”). The undersigned shareholders are herein collectively referred to as “Lenders”. This letter agreement shall not be effective until all Lenders and NATK shall have duly countersigned this letter agreement and
evidence of such has been provided to all parties to this letter agreement. 
  

	A.	Initial Loan: Lenders are willing to loan $500,000 to NATK subject to the following terms and conditions: 

  

	 	(i)	NATK shall have received a commitment in writing from Union Pacific in the form attached hereto as Exhibit A (the “UP Commitment”) providing that Union Pacific is
willing to purchase railroad ties from NATK at a purchase price of $115 per tie effective immediately. 

  

	 	(ii)	Provided the UP Commitment is received by NATK (such date, the “Commitment Date”), the Lenders will loan an aggregate amount of $500,000 to NATK with each Lender loaning
the percentage thereof as is set forth below. Within one (1) business day following the Commitment Date NATK shall deliver to each Lender (i) its original promissory note as described below which promissory note shall be held in escrow by
each Lender subject to receipt by NATK of such Lender’s respective loan amount; and (ii) copies of all other promissory notes executed by NATK and delivered to the other Lenders pursuant hereto. Within two (2) business days following
receipt by a Lender of its respective note, such Lender shall wire its respective loan amount per the written instructions of NATK. 

 Mr. John T. Corcia 
 June 25, 2007 
  Page
 2
 
  

	 	(iii)	The $500,000 loan shall be evidenced by seven separate promissory notes each of which shall contain the following terms: 

  

	 	(a)	The note shall be due and payable on November 30, 2008. 

  

	 	(b)	The note shall bear interest at the prime rate of interest. 

  

	 	(c)	The note shall be unsecured and shall be subordinate to the $14,000,000 construction loan due to Opus 5949, LLC but shall be superior to the $2,000,000 bridge loan previously made
to NATK in March 2007 by Lenders. 

  

	 	(iv)	NATK will provide to Lenders its current listing of all accounts payable and any/all other lists of liabilities related to raw materials received and the list of all accrued
liabilities. 

  

	 	(v)	Commencing at such time, if ever, as the $500,000 loan is made and continuing thereafter until such time as Lenders determine to make the additional loan (referred to in paragraph B
below) or decline to make such additional loan, Lenders will appoint a designee to review and approve all payments for any/all services or service providers and goods prior to NATK making any actual payments to vendors provided however, if
Lenders’ designee fails to approve or disapprove any such payment within forty-eight (48) hours after receipt of management’s recommendation of payment with respect thereto, such payment shall be deemed to be approved by the designee.

  

	B.	Additional Loan: Within 20 days after the funding of the $500,000 loan (the “Due Diligence Period”), Lenders will review the information set forth on Schedule A
attached hereto and shall determine, in their sole and absolute discretion, if they are willing to make an additional loan to NATK in the amount of $2.5 million dollars (the “Additional Loan”). If Lenders are willing to make the
Additional Loan, then on or before the expiration of the Due Diligence Period, Lenders will deliver to NATK execution copies of loan documents evidencing the terms upon which Lenders are willing to make the Additional Loan. 

 

	 	(i)	If, based on their financial due diligence, Lenders determine they are willing to make the Additional Loan, as a further condition of making the Additional Loan, Lenders may impose
the following conditions upon the funding of the Additional Loan: 

  

	 	(a)	Lenders (who are also shareholders of North American Technologies Group, Inc. as noted above), in their sole and absolute discretion, may require a complete restructuring of the

 Mr. John T. Corcia 
 June 25, 2007 
  Page
 3
 
  

 Very truly yours, 
  

			
	The Lenders:
	
	Herakle Investments, Inc. ( 8.711% of $500,000)
		
	By:	 	 /s/ Robert W. Korba

		 	Robert W. Korba
	Its:	 	President
	
	Midsummer Investment Ltd. (14.268% of $500,000)
		
	By:	 	  

	Its:	 	  

	
	Crestview Capital Master, LLC (14.976% of $500,000)
		
	By:	 	  

	Its:	 	  

	
	Islandia, LP (5.682% of $500,000)
		
	By:	 	  

	Its:	 	  

	
	Enable Growth Partners LP (5.409% of $500,000)
		
	By:	 	  

	Its:	 	  

	
	Enable Opportunity Partners LP (.636% of $500,000)
		
	By:	 	  

	Its:	 	  

 Mr. John T. Corcia 
 June 25, 2007 
  Page
 4
 
  

			
	 Pierce Diversified Strategy Master Fund LLC, Ena (.318% of $500,000)

		
	 By:
	 	  

	 Its:
	 	  

 By execution hereof, the undersigned hereby agrees and accepts the foregoing terms and conditions: 
  

			
	North American Technologies Group, Inc.
		
	By:	 	  

	Its:	 	  

	Date: June 25, 2007Form of $500,000 promissory note

 Exhibit 10.3 
 PROMISSORY NOTE 
  

					
	$            	 	Dallas, Texas	 	June 25, 2007

 FOR VALUE RECEIVED, the undersigned, North American Technologies Group, Inc. (“NATK”), a
Delaware corporation (herein called “Maker”), whose address is 429 Memory Lane, Marshall, Texas 75672, hereby promises to pay to the order of
                             (herein sometimes called “Payee”), the principal sum of
                                        
Dollars ($            ), or so much thereof from time to time outstanding as shall be advanced, with interest on the unpaid balance thereof from date of advancement until maturity at
the Applicable Rate, as hereinafter defined and provided, both principal and interest payable as hereinafter provided in lawful money of the United States of America at the offices of Payee at __________________________, or at such other place as
from time to time may be designated by the Payee or subsequent payee of this Note or in such other form as Payee may designate or consent. 
 As used in this Note, the following terms shall have the meanings indicated opposite them: 
 “Applicable Rate.” The
rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such
change is publicly announced as being effective. 
 “Loan.” The
$             loan to be made to Maker by Payee which is evidenced hereby. 
 “Maturity Date.” The earlier of November 30, 2008 or the date on which Maker receives funding of a financing for a minimum of $500,000, provided however Payee hereby acknowledges and agrees that any additional loan by
Payee to Maker which is made pursuant to the terms of the Letter Agreement, as hereinafter defined, shall not result in an acceleration of the Maturity Date of this Note. 
 “Maximum Rate.” The maximum interest rate permitted under applicable law, it being understood that, if applicable law provides for a ceiling under Chapter 301, Subchapter A of the Texas Credit Title
(as may be amended from time to time), such ceiling shall be the “weekly” ceiling. 
 “Principal Amount.” That
portion of the Loan evidenced hereby as is from time to time outstanding. 
 This Note is one of a series of notes aggregating $500,000 made
by the parties to that certain letter agreement dated as of June 25, 2007 (the “Letter Agreement”) by and between said parties and the Maker. 
  

 Page 1 

 As herein provided, the unpaid Principal Amount of this Note (or portions thereof) from time to time
outstanding shall bear interest prior to maturity at the Applicable Rate provided that in no event shall the Applicable Rate exceed the Maximum Rate. Notwithstanding the foregoing, if at any time the Applicable Rate exceeds the Maximum Rate, the
rate of interest payable under this Note shall be limited to the Maximum Rate, but any subsequent reductions in the Applicable Rate shall not reduce the Applicable Rate below the Maximum Rate until the total amount of interest accrued on this Note
equals the total amount of interest which would have accrued at the Applicable Rate if the Applicable Rate had at all times been in effect. 
 Maker shall have the right to prepay this Note, in whole or in part, without premium or penalty upon written notice thereof given to Payee at least five (5) days prior to the date to be fixed therein for prepayment, and upon the
payment of all accrued interest on the amount prepaid (and any interest which has accrued at the Maximum Rate, if applicable, and other sums that may be payable hereunder) to the date so fixed. 
 The Principal Amount and accrued interest shall be due and payable on the Maturity Date. 
 Notwithstanding anything to the contrary contained in this Note, at the option of the holder of this Note and upon notice to the Maker at any time after
the occurrence of a default hereunder, from and after such notice and during the continuance of such default, the unpaid principal of this Note from time to time outstanding and all past due interest shall, to the extent permitted by applicable law,
bear interest at the Maximum Rate, provided that in no event shall such interest rate be more than the Maximum Rate. 
 All interest accruing
under this Note shall be calculated on the basis of a 360-day year applied to the actual number of days in each month. The Maker shall make the payment which it owes hereunder not later than twelve o’clock, noon, Dallas, Texas, time, on the
date such payment becomes due and payable (or the date any voluntary prepayment is made), in immediately available funds. Any payment received by the Payee after such time will be deemed to have been made on the next following business day. As used
herein, the term “business day” shall mean any day other than a Saturday or Sunday or any other day on which commercial banks are authorized or required by law to be closed in Dallas, Texas. 
 Payee and Maker intend in the execution of this Note and all other instruments now or hereafter securing this Note to contract in strict
compliance with applicable usury law. In furtherance thereof, Payee and Maker stipulate and agree that none of the terms and provisions contained in this Note, or in any other instrument executed in connection herewith, shall ever be construed to
create a contract to pay for the use, forbearance or detention of money, interest at a rate in excess of the Maximum Rate; neither Maker nor any guarantors, endorsers or other parties now or hereafter becoming liable for payment of this Note shall
ever be obligated or required to pay interest on this Note at a rate in excess of the Maximum Rate that may be lawfully charged under applicable law, and the provisions of this paragraph shall control over all other provisions of this Note and any
other instruments now or hereafter executed in connection herewith which may be in apparent conflict herewith. Payee, including each holder of this Note, expressly disavows any intention to charge or collect excessive unearned interest or finance
charges in the event the maturity of this Note is accelerated. If the maturity of this Note shall be accelerated for any reason or if the Principal 

  

 Page 2 

 
Amount is paid prior to the end of the term of this Note, and as a result thereof the interest received for the actual period of existence of the Loan
exceeds the amount of interest that would have accrued at the Maximum Rate, the Payee or other holder of this Note shall, at its option, either refund to Maker the amount of such excess or credit the amount of such excess against the Principal
Amount and thereby shall render inapplicable any and all penalties of any kind provided by applicable law as a result of such excess interest. In the event that Payee or any other holder of this Note shall contract for, charge or receive any
amounts and/or any other thing of value which are determined to constitute interest which would increase the effective interest rate on this Note to a rate in excess of that permitted to be charged by applicable law, all such sums determined to
constitute interest in excess of the amount of interest at the lawful rate shall, upon such determination, at the option of the Payee or other holder of this Note, be either immediately returned to Maker or credited against the Principal Amount, in
which event any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. By execution of this Note, Maker acknowledges that it believes the Loan evidenced by this Note to be non-usurious
and agrees that if, at any time, Maker should have a good faith reason to believe, based on the advice of counsel, that the Loan is in fact usurious, it will give the Payee or other holder of this Note notice of such condition and Maker agrees that
the Payee or other holder shall have ninety (90) days in which to make appropriate refund or other adjustment in order to correct such condition if in fact such exists. The term “applicable law” as used in this Note shall mean the
laws of the state of Texas or the laws of the United States, whichever laws allow the greater rate of interest, as such laws now exist or may be changed or amended or come into effect in the future. 
 Should the indebtedness represented by this Note or any part thereof be collected at law or in equity or through any bankruptcy, receivership, probate or
other court proceedings or if this Note is placed in the hands of attorneys for collection after default, Maker and all endorsers, guarantors and sureties of this Note jointly and severally agree to pay to the Payee or other holder of this Note in
addition to the principal and interest due and payable hereon reasonable attorneys’ and collection fees. 
 Maker and all endorsers,
guarantors and sureties of this Note and all other persons obligated or to become obligated on this Note severally waive presentment for payment, demand, notice of demand and of dishonor and nonpayment of this Note, notice of intention to accelerate
the maturity of this Note, protest and notice of protest, diligence in collecting, and the bringing of suit against any other party, and agree to all renewals, extensions, modifications, partial payments, releases or substitutions of security, in
whole or in part, with or without notice, before or after maturity. 
 THIS NOTE AND THE PARTIES’ RIGHTS AND OBLIGATIONS HEREUNDER SHALL
IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS (WITHOUT GIVING EFFECT TO TEXAS’ PRINCIPLES OF CONFLICTS OF LAW) AND THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN SUCH
STATE. MAKER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE TEXAS OR FEDERAL COURT SITTING IN DALLAS, TEXAS OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, AND MAKER HEREBY AGREES AND CONSENTS THAT, IN ADDITION TO
ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR 

  

 Page 3 

 
PROCEEDING IN ANY TEXAS OR FEDERAL COURT SITTING IN DALLAS, TEXAS MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO MAKER AT
THE ADDRESS OF MAKER CONTAINED HEREIN, AND SERVICE SO MADE SHALL BE COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED. 
 MAKER HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVES, IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING BROUGHT B Y THE HOLDER OF THIS NOTE IN CONNECTION WITH THE LOAN, ANY AND EVERY RIGHT IT MAY HAVE TO (I) A TRIAL BY
JURY AND (II) INTERPOSE ANY COUNTERCLAIM THEREIN (OTHER THAN A COMPULSORY COUNTERCLAIM). Nothing herein contained shall prevent or prohibit Maker from instituting or maintaining a separate action against the holder of this Note with respect to
any asserted claim. 
 Signed as of the 25th day of June, 2007. 
  

			
	 MAKER:

	
	 NORTH AMERICAN TECHNOLOGIES
 GROUP, INC., a Delaware corporation

		
	By:	 	  

	Name:	 	  

	Title:	 	Chief Executive Officer

  

 Page 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]