Document:

Stockholders Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 STOCKHOLDERS AGREEMENT 
  
 This STOCKHOLDERS AGREEMENT (the “Agreement”) is made and entered into as of February     , 2005, by
and among Big Bend XI Investments, Ltd. (“Big Bend”), Crestview Capital Master, LLC (“Crestview”), HLT FFT, LLC (“HLT”), Midsummer Investment Ltd.
(“Midsummer”), Islandia, L.P. (“Islandia”), Richard Kiphart (“Kiphart”) and Sponsor Investments, LLC, a Texas limited liability company (“Sponsor”)
(collectively, the “Stockholders”). 
  
 RECITALS 
  
 WHEREAS, the Stockholders, each of
which is listed on Exhibit A attached hereto, have received or will receive shares of Series CC Preferred Stock or Common Stock of North American Technologies Group, Inc., a Delaware corporation (the “Company”) in
connection with a restructuring of the capitalization of the Company; 
  
 WHEREAS, in connection with such restructuring, Big Bend, Crestview, HLT, Midsummer, Islandia and Kiphart (the “Purchasing Group”) have acquired or will acquire shares of the Company’s Common Stock from
Avalanche Resources, Ltd., a Delaware corporation (“Avalanche”) and Kevin Maddox (“Maddox”) pursuant to that certain Common Stock Purchase Agreement dated November 8, 2004 (the “Common Stock
Purchase Agreement”); 
  
 WHEREAS, Sponsor owns all
of the Class B membership interests of TieTek LLC (“TieTek”), a limited liability company that is a subsidiary of the Company, and has the option to acquire up to 499 Class A membership interests of TieTek (the
“Class A Option”); 
  
 WHEREAS, in
connection with the restructuring, Sponsor will exchange its Class B membership interests in TieTek and the Class A Option for shares of the Company’s Series CC Preferred Stock and a warrant to purchase shares of the Company’s Series CC
Preferred Stock (the “Exchange”) pursuant to that certain Exchange Agreement dated November 8, 2004 (the “Exchange Agreement”); 
  
 WHEREAS, Exhibit A attached hereto sets forth the total number of the Company’s equity securities that each
Stockholder will beneficially own immediately following the consummation of the Common Stock Purchase Agreement and the Exchange Agreement and the transactions contemplated therein; and 
  
 WHEREAS, it is a condition to the consummation of the Exchange Agreement and the Common Stock Purchase Agreement that the
parties hereto execute and deliver this Agreement. 
  

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 AGREEMENT 
  

NOW, THEREFORE, in consideration of the foregoing and the mutual promises herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 1. REPRESENTATION ON COMPANY’S BOARD OF DIRECTORS. 
  
 The Company’s Board of Directors shall consist of five (5) directors. On all matters relating to the election of
directors of the Company, the Stockholders agree to vote all shares of Common Stock held by them (or to consent pursuant to an action by written consent of the holders of Common Stock) in favor of the election of two (2) nominees designated by the
Purchasing Group (the “Purchasing Group Nominees”), two (2) nominees designated by Sponsor (the “Sponsor Nominees”) and one (1) nominee designated by Sponsor and Big Bend (the “Sponsor/Big
Bend Nominee”) to serve on the Company’s Board of Directors (collectively, the “Designated Directors”). The initial Purchasing Group Nominees shall be Robert Hoyt and Kenneth Scott. The initial Sponsor
Nominees shall be General Goh Yong Siang and Robert W. Black. The initial Sponsor/Big Bend Nominee shall be Henry W. Sullivan. The Stockholders shall take such action as is necessary to promptly elect such Designated Directors to the Company’s
Board of Directors as provided in this Section 1. In the event that any Designated Director is removed for cause pursuant to a vote of the Company’s Board of Directors, the replacement for such removed Designated Director shall be designated in
accordance with the provisions of this Section 1. Any other vote taken to fill any vacancy created by the resignation or death of any Designated Director shall also be subject to the provisions of this Section 1. 
  
 2. RECOVERY FOR BREACHES OF
EXCHANGE AGREEMENT OR COMMON STOCK PURCHASE AGREEMENT. 
  
 2.1 Sharing of Recovery. In the event that any Stockholder recovers any funds, proceeds or collateral from either
Avalanche or Maddox for any breach of either the Exchange Agreement or the Common Stock Purchase Agreement (any such recovery referred to herein as a “Recovery”), then such recovering Stockholder agrees to share such Recovery
with all of the Stockholders in accordance with the provisions of this Agreement. 
  
 2.2 Allocation of Recovery. The Stockholders agree to share any Recovery among all Stockholders such that each Stockholder shall be entitled to that percentage of any Recovery that is equal to the quotient of
(A) the lesser of (i) the number of shares of the Company’s Common Stock acquired by such Stockholder pursuant to the Exchange Agreement or the Common Stock Purchase Agreement, including any shares of Common Stock underlying or acquired
pursuant to the exercise of any warrant to purchase shares of the Company’s Common Stock (a “Warrant”) that is acquired pursuant to the Exchange Agreement, the Common Stock Purchase Agreement or the transactions
contemplated therein, and including any shares of Common Stock issuable upon the conversion of any shares of Preferred Stock acquired pursuant to the Exchange Agreement or the transactions contemplated therein, or (ii) the total 
  

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 number of shares of the Company’s Common Stock that is beneficially owned by such Stockholder at the time of the
claim that resulted in the Recovery, including any shares of Common Stock underlying any Warrant and including any shares of Common Stock issuable upon the conversion of any shares of Preferred Stock, and (B) the number of shares of the
Company’s Common Stock acquired by all of the Stockholders pursuant to the Exchange Agreement and the Common Stock Purchase Agreement, including any shares of Common Stock underlying or acquired pursuant to the exercise of any Warrant that is
acquired pursuant to the Exchange Agreement, the Common Stock Purchase Agreement or the transactions contemplated therein, and including any shares of Common Stock issuable upon the conversion of any shares of Preferred Stock acquired pursuant to
the Exchange Agreement or the transactions contemplated therein. The Stockholders acknowledge and agree that any shares of the Company’s Common Stock (or any shares of Common Stock underlying or acquired pursuant to the exercise of any Warrant)
that were not acquired pursuant to the Exchange Agreement or the Common Stock Purchase Agreement shall not be counted for purposes of determining the percentage of any Recovery that each Stockholder shall be entitled to pursuant to this Agreement.

  
 3. ASSIGNMENT, AMENDMENT AND
WAIVER. 
  
 3.1 Assignment. No
Stockholder may assign its rights under this Agreement, except to a Permitted Transferee. For purposes of this Agreement, “Permitted Transferee” means any Affiliate of a Stockholder so long as he, she or it has agreed in
writing to be bound by the terms of the Agreement to the same extent as his, her or its transferor. For purposes of this Agreement, “Affiliate” shall mean, with respect to any Stockholder, the following: (a) any person or
entity that directly, or indirectly through one or more intermediaries, Controls such Stockholder, (b) any person or entity that is Controlled by or is under common Control with such Stockholder, or (c) any person or entity that has agreed in
writing to grant any Stockholder such person’s proxy to vote or act by written consent with respect to such person’s Preferred Stock or upon conversion of such Preferred Stock any shares of the Company’s Common Stock. For purposes of
this Agreement, “Control” and its derivatives “Controls” and “Controlled” shall mean possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise.  
  
 3.2 Amendment and Waiver. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a
particular instance and either retroactively or prospectively), only by an instrument in writing signed by all of the Stockholders. Any amendment or waiver effected in accordance with this Section 3.2 will be binding upon the parties, and each
permitted successor or assignee of the parties. 
  
 4.
ARBITRATION. 
  
 The Stockholders acknowledge
and agree that any and all disputes related to this Agreement shall be settled by a single arbitrator mutually agreeable to the Stockholders, or if they cannot agree on a single arbitrator in 20 days, by three arbitrators, in accordance with the
Commercial Arbitration Rules then in effect of the American Arbitration Association. One of 
  

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such arbitrators shall be chosen by Sponsor, one shall be chosen by Crestview and the third shall be chosen by the first two arbitrators selected pursuant to
this sentence. The party against whom a judgment is made or against whom an award is entered shall pay the costs of arbitration and the other party’s reasonable out of pocket costs and expenses, including without limitation, reasonable
attorney’s fees. The final decision of the arbitrator, or a majority of the arbitrators in the case of three arbitrators, shall be furnished to the Stockholders in writing within 10 business days of the date of the selection of the last
arbitrator to participate in the arbitration, and such decision shall constitute a conclusive determination of the issue in question, binding upon all of the Stockholders, and shall not be contested by any of them. Such decision may be used in a
court of law only for the purpose of seeking enforcement of the arbitrator’s award. The Stockholders agree that all arbitration proceedings conducted pursuant to this Agreement shall be held confidential. 
  
 5. GENERAL PROVISIONS. 
  
 5.1 Notices. All notices, requests and demands hereunder shall be in
writing and (a) made to the Stockholders at the address set forth in the signature page to this Agreement, or to such other address as any party may designate by written notice to the other parties in accordance with this provision, and (b) deemed
to have been given or made: if delivered in person, immediately upon delivery; if by telex, telegram or facsimile transmission, immediately upon sending and upon confirmation of receipt; if by nationally recognized overnight courier service with
instructions to deliver the next business day, one (1) business day after sending; and if by certified mail, return receipt requested, five (5) days after mailing. 
  
 5.2 Governing Law. The validity, interpretation and enforcement of this Agreement and the Transaction Agreements and
any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of Texas (without giving effect to principles of conflicts of law).

  
 5.3 Partial Invalidity. If any provision of this
Agreement is held to be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole, but this Agreement shall be construed as though it did not contain the particular provision held to be invalid or
unenforceable and the rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law 
  
 5.4 Successors. Subject to the provisions of Section 3.1, this Agreement shall be binding upon and inure to the benefit of and be enforceable by
the parties hereto and their respective successors and assigns. 
  
 5.5 Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. 
  
 5.6 Entire Agreement. This Agreement, any supplements hereto, and any
instruments or documents delivered or to be delivered in connection herewith represents the entire agreement and understanding concerning the subject matter hereof and thereof between the 

  

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parties hereto, and supersede all other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals,
offers and contracts concerning the subject matter hereof, whether oral or written. In the event of any inconsistency between the terms of this Agreement and any schedule or exhibit hereto, the terms of this Agreement shall govern. 
  
 5.7 Construction. All references to the plural herein shall also mean
the singular and to the singular shall also mean the plural unless the context otherwise requires. All references to the Company and the Stockholders pursuant to the definitions set forth in the preamble hereto, or to any other person herein, shall
include their respective successors and assigns. The words “hereof”, “herein”, “hereunder”, “this Agreement” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and
not any particular provision of this Agreement and as this Agreement now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced. The words “include”, “includes”, “including”
or similar words, when used in this Agreement shall mean “including, without limitation”. 
  
 5.8 Termination. 
  
 (a) The rights and obligations of the Stockholders under Section 1 of this Agreement shall terminate on May 31, 2005. 
  
 (b) The rights and obligations of any individual Stockholder under
Section 2.1 and Section 2.2 of this Agreement shall terminate on the first day that such Stockholder and/or any of its Permitted Transferees no longer owns any of the Company’s Common Stock or any securities that are convertible into shares of
the Company’s Common Stock. If the rights and obligations of any individual Stockholder under Section 2.1 and Section 2.2 of this Agreement are terminated, all other Stockholders will continue to be bound by Section 2.1 and Section 2.2 of this
Agreement. 
  
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 IN WITNESS WHEREOF, the parties hereto have executed
this STOCKHOLDERS AGREEMENT as of the date set forth in the first paragraph hereof. 
  

			
	 BIG BEND XI INVESTMENTS, LTD.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	 Facsimile:
	 	(        )
        -            
	
	 CRESTVIEW CAPITAL MASTER, LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	 Facsimile:
	 	(        )
        -            
	
	 HLT FFT, LLC

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	 Facsimile:
	 	(        )
        -            

  
  

			
	MIDSUMMER INVESTMENT LTD.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	
	 Facsimile:    (        )
         -             

	
	ISLANDIA, L.P.
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	
	 Facsimile:    (        )
         -             

	
	RICHARD KIPHART
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 Address:
	 	 
		
	 	 	 
	
	 Facsimile:    (        )
         -             

  
  

			
	SPONSOR INVESTMENTS, LLC
	By: Herakles Investments, Inc., Manager
		
	By:	 	 /s/ Robert W. Korba

	Name:	 	Robert W. Korba
	Title:	 	President
		
	Address:	 	 
		
	 	 	 
	
	 Facsimile:    (        )
         -             

  
  

 Exhibit A 
  

Stockholder Ownership of Company Securities 
 (Post-Closing of Common Stock Purchase Agreement and Exchange Agreement) 
  

									
	 NAME

	 	 SHARES OF
 COMMON STOCK
 HELD

	 	 SHARES ISSUABLE
 UPON EXERCISE OF
 OPTIONS

	 	 SHARES ISSUABLE ON
EXERCISE
OF
 WARRANTS

	 	 SHARES ISSUABLE ON
CONVERSION
OF
 PREFERRED STOCK

	 Big Bend XI
 Investments, Ltd.
	 	 	 	 	 	 	 	 
					
	 Crestview Capital
 Master, LLC
	 	 	 	 	 	 	 	 
					
	HLT FFT, LLC	 	 	 	 	 	 	 	 
					
	 Midsummer
 Investment Ltd.
	 	 	 	 	 	 	 	 
					
	Islandia, L.P.	 	 	 	 	 	 	 	 
					
	Richard Kiphart	 	 	 	 	 	 	 	 
					
	 Sponsor
 Investments, LLC
	 	 	 	 	 	 	 	 

  
 Each of the Stockholders hereby
represents and warrants, as to itself only, that the number of shares of the Company’s Common Stock held by such person, or issuable to such person upon conversion or exercise of preferred stock, options, warrants, or any other convertible
security, accurately sets forth such Stockholder’s beneficial ownership of the Company’s securities after the closing of the Common Stock Purchase Agreement and the Exchange Agreement and the transactions contemplated therein, and
immediately after the closing of the Common Stock Purchase Agreement and the Exchange Agreement, such Stockholder will not beneficially own, or have the right to acquire, any securities of the Company other than as set forth above.Registration Rights Agreement

 Exhibit 10.2 
  
 REGISTRATION RIGHTS AGREEMENT 
  

This Registration Rights Agreement (the “Agreement”) is made as of February 22, 2005, among North American
Technologies Group, Inc., a Delaware corporation (the “Company”), and the stockholders listed on Exhibit A hereto (each individually a “Stockholder” and collectively the
“Stockholders”). 
  
 RECITALS 
  
 WHEREAS, the Stockholders or their
affiliates have acquired either shares of the Company’s common stock, par value $.001 per share (the “Common Stock”), or securities convertible into shares of the Common Stock pursuant to either (i) that
certain Common Stock Purchase Agreement of even date herewith by and among Avalanche Resources, Ltd. and the Purchasers named therein (the “Stock Purchase Agreement”) or (ii) that certain Exchange Agreement of
even date herewith by and between the Company and Sponsor Investments, LLC (the “Exchange Agreement”); and 
  
 WHEREAS, in order to induce the Stockholders or their affiliates to enter into the Stock Purchase Agreement or the Exchange Agreement, as the case may be,
the Company has agreed to provide the Stockholders with certain rights to register Shares of the Company’s Common Stock, as provided herein. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the Stockholders and the Company hereby agree as follows:

  
 1. Demand Registrations. 
  
 (a) Requests for Registration. At any time, the Initiating Holders
may request registration under the Securities Act of all or any portion of their Registrable Securities on Form S-1 or any similar long-form registration (“Long-Form Registrations”), and any Holders may request registration under
the Securities Act of all or any portion of their Registrable Securities on Form S-2 or S-3 or any similar short-form registration (“Short-Form Registrations”) if the Company is eligible to use any such short-form. All registrations
requested pursuant to this Section 1(a) are referred to herein as “Demand Registrations.” Each request for a Demand Registration shall specify the approximate number of Registrable Securities requested to be registered and the
anticipated per share price range for such offering. Within ten days after receipt of any such request, the Company shall give written notice of such requested registration to all other holders of Registrable Securities and, subject to Section 1(d)
below, shall include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 15 days after the receipt of the Company’s notice. 
  
 (b) Long-Form Registrations. The Initiating Holders shall be entitled
to request four Long-Form Registrations in which the Company shall pay all Registration Expenses (the “Company-Paid Long-Form Registrations”); provided, however, that each of the Crestview 
  

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 Group and the Sponsor Group shall be limited to two such requests which do not include a member of the other as one of
the Initiating Holders. Any sales by the Initiating Holders pursuant to a registration statement that has been filed with the Commission but that has not been declared effective as of the date hereof shall count as one of the permitted Long-Form
Registrations. A registration shall not count as one of the permitted Long-Form Registrations until it has become effective and the holders of Registrable Securities initially requesting the Long-Form Registration are able to register and sell at
least 90% of the Registrable Securities requested to be included in such registration by such holders; provided that in any event the Company shall pay all Registration Expenses in connection with any registration initiated as a Long-Form
Registration whether or not it has become effective and whether or not the holders of Registrable Securities have been able to register and sell at least 90% of the Registrable Securities to be included in such registration by such holders. All
Long-Form Registrations shall be underwritten registrations. 
  
 (c) Short-Form Registrations. In addition to the Long-Form Registrations provided pursuant to Section 1(b), the Holders shall be entitled to request unlimited Short-Form Registrations in which the Company shall pay all Registration
Expenses provided, however, that Shares representing at least 15% of the Company’s issued and outstanding Common Stock will be included in such registration. Demand Registrations shall be Short-Form Registrations whenever the Company is
eligible to use any applicable short form. The Company shall use its best efforts to qualify and/or maintain qualification for registration on Form S-3 or any comparable or successor form. 
  
 (d) Priority on Demand Registrations. The Company shall not include in
any Demand Registration any securities which are not Registrable Securities without the prior written consent of the Holders owning more than 50% of the Registrable Securities being requested to be registered. If a Demand Registration is an
underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities and, if permitted hereunder other securities requested to be included in such offering, exceeds the number
of Registrable Securities and other securities, if any, which can be sold in an orderly manner in such offering within a price range acceptable to the Holders owning more than 50% of the Registrable Securities being requested to be registered, then
the Company shall include in such registration before the inclusion of any securities which are not Registrable Securities (other than securities requested to be included in such registration pursuant to contractual obligations with the Company) the
number of Registrable Securities requested to be included which in the opinion of such underwriters can be sold in an orderly manner within the price range of such offering, pro rata among the respective holders thereof on the basis of the amount of
Registrable Securities owned by each such holder. Any Persons other than holders of Registrable Securities who participate in Demand Registrations which are not at the Company’s expense must pay their share of the Registration Expenses as
provided in Section 4 hereof. 
  
 (e) Selection of
Underwriters. The selection of investment banker(s) and manager(s) for any Demand Registration must be approved by the Holders owning more than 50% of the Registrable Securities being requested to be registered. 
  

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 (f) Other Registration Rights. Except as provided in this Agreement, the Company shall not grant
to any Persons the right to request the Company to register any equity securities of the Company, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of Holders owning more than
50% of the Registrable Securities; provided that the Company may grant rights to other Persons to participate in Piggyback Registrations so long as such rights are subordinate to the rights of the holders of Registrable Securities with
respect to such Piggyback Registrations. 
  
 2. Piggyback
Registrations. 
  
 (a) Right to Piggyback. Whenever
the Company proposes to register any of its securities under the Securities Act (other than pursuant to a Demand Registration or any registration on Form S-4 or Form S-8) and the registration form to be used may be used for the registration of
Registrable Securities (a “Piggyback Registration”), the Company shall give prompt written notice to all Holders of Registrable Securities of its intention to effect such a registration and, subject to Sections 2(c) and 2(d) below,
shall include in such registration all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 20 days after the receipt of the Company’s notice. 
  
 (b) Piggyback Expenses. The Registration Expenses of the holders of
Registrable Securities shall be paid by the Company in all Piggyback Registrations. 
  
 (c) Priority on Primary Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their
opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i)
first, the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be included in such registration and other securities requested in such registration pursuant to contractual obligations with the Company, pro
rata among the holders of such Registrable Securities and other securities on the basis of the number of shares owned by each such holder, and (iii) third, other securities requested to be included in such registration. 
  
 (d) Priority on Secondary Registrations. If a Piggyback Registration
is an underwritten secondary registration on behalf of holders of the Company’s securities, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration
exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i) first, the securities requested to be included therein by the holders requesting
such registration, the Registrable Securities requested to be included in such registration and other securities requested to be included in such registration pursuant to contractual obligations with the Company, pro rata among the holders of such
securities on the basis of the number of securities owned by each such holder and (ii) other securities requested to be included in such registration. 
  

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 (e) Other Registrations. If the Company has previously filed a registration statement with respect
to Registrable Securities pursuant to Section 1 or Registrable Securities pursuant to this Section 2, and if such previous registration has not been withdrawn or abandoned, the Company shall not file or cause to be effected any other registration of
any of its equity securities or securities convertible or exchangeable into or exercisable for its equity securities under the Securities Act (except on Form S-8 or any successor form), whether on its own behalf or at the request of any holder or
holders of such securities, until a period of at least 90 days has elapsed from the effective date of such previous registration. 
  
 3. Registration Procedures. Whenever the holders of Registrable Securities have requested that any Registrable Securities be registered pursuant to
this Agreement, the Company shall use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the terms of this Agreement and the intended method of disposition thereof, and pursuant thereto the
Company shall as expeditiously as possible: 
  
 (a) prepare and
file with the Securities and Exchange Commission a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective; provided that before filing a
registration statement or prospectus or any amendments or supplements thereto, the Company shall, if requested, furnish to the counsel selected by the Initiating Holders in the event of a Company-Paid Long-Form Registration or by Holders owning more
than 50% of the Registrable Securities prepared to be registered under any other registration hereunder, copies of all such documents proposed to be filed (excluding exhibits); 
  
 (b) notify each holder of Registrable Securities of the effectiveness of each registration statement filed hereunder and
prepare and file with the Securities and Exchange Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a
period of not less than 180 days and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition
by the sellers thereof set forth in such registration statement; 
  
 (c) furnish to each seller of Registrable Securities such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary
prospectus), and such other documents as such seller may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller; 
  
 (d) use its best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of
such jurisdictions as any seller reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller; provided that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph, (ii) subject itself to
taxation in any such jurisdiction, or (iii) consent to general service of process in any such jurisdiction; 
  

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 (e) notify each seller of such Registrable Securities, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the
statements therein not misleading, and, at the request of the holders of a majority of the sellers of such Registrable Securities, the Company shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 
  
 (f) cause all such Registrable Securities to be listed on each securities
exchange on which similar securities issued by the Company are then listed and, if not so listed, to be listed on the NASD automated quotation system and, if listed on the NASD automated quotation system, use its best efforts to secure designation
of all such Registrable Securities covered by such registration statement as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to secure NASDAQ
authorization for such Registrable Securities; 
  
 (g) provide a
transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement; 
  
 (h) enter into such customary agreements (including underwriting agreements in customary form) as the holders of a majority of the Registrable Securities
being sold and the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities; 
  
 (i) make available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration
statement and any attorney, accountant, or other agent retained by any such seller or underwriter, all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, so as to permit such Persons to comply with
their respective due diligence obligations under the Securities Act; 
  
 (j) otherwise use its best efforts to comply with all applicable rules and regulations of the Securities and Exchange Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering
the period of at least twelve months beginning with the first day of the Company’s first full calendar quarter after the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder; and 
  
 (k) in the event
of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any common stock included in such registration
statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain the withdrawal of such order. 
  

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 4. Registration Expenses. 
  
 (a) All expenses incident to the Company’s performance of or compliance with this Agreement, including, without
limitation, all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for the
Company and all independent certified public accountants, underwriters (excluding discounts and commissions), and other Persons retained by the Company (all such expenses being herein called “Registration Expenses”), shall be borne
as provided in this Agreement, except that the Company shall, in any event, pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any
annual audit or quarterly review, the expense of any liability insurance, and the expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued by the Company are then listed or on the
NASD automated quotation system. Notwithstanding the foregoing, the holders of Registrable Securities (and not the Company) shall pay all underwriting discounts and commissions with respect to the Registrable Securities. 
  
 (b) In connection with each Company-Paid Long-Form Registration, each
Short-Form Registration, and each Piggyback Registration, the Company shall reimburse the holders of Registrable Securities included in such registration for the reasonable fees and disbursements of one counsel chosen by the Initiating Holders in
the event of a Company-Paid Long Form Registration and the Required Holders in the event of any other registration hereunder. 
  
 (c) To the extent Registration Expenses are not required to be paid by the Company and unless otherwise approved by the Company’s board of directors,
each holder of securities included in any registration hereunder shall pay those Registration Expenses allocable to the registration of such holder’s securities so included or otherwise incurred by such holder, and any Registration Expenses not
so allocable shall be borne by all sellers of securities included in such registration in proportion to the aggregate selling price of the securities to be so registered. 
  
 5. Termination of Previous Registration Rights. The Stockholders acknowledge and agree that this Agreement terminates
all previously existing rights of the Stockholders to register shares of the Company’s common stock. 
  
 6. Indemnification. 
  
 (a) The Company agrees to indemnify, to the extent permitted by law, each holder of Registrable Securities, its officers and directors, and each Person
who controls such holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities, and expenses caused by any untrue or alleged untrue statement of material fact contained in any registration statement, prospectus,
or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated 
  

 6 

 therein or necessary to make the statements therein not misleading, except insofar as the same are caused by or contained
in any information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company
has furnished such holder with a sufficient number of copies of the same. In connection with an underwritten offering, the Company shall indemnify such underwriters, their officers and directors, and each Person who controls such underwriters
(within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the holders of Registrable Securities, except with respect to any information supplied by any underwriter for use in such
registration statement, prospectus, or other offering document and except that with respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus, the indemnity agreement contained in this
Section shall not inure to the benefit of the underwriter from whom the Person asserting any such losses, claims, damages, liabilities, or expenses purchased shares concerned (or to the benefit of any person controlling such underwriter) to the
extent that any such loss, claim, damage, liability, or expense of the underwriter or controlling person results from an untrue statement or omission in the preliminary prospectus which was corrected in the prospectus if a copy of the prospectus was
not sent or given to such Person as required by the Securities Act. 
  
 (b) In connection with any registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for
use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act)
against any losses, claims, damages, liabilities, and expenses resulting from any untrue or alleged untrue statement of material fact contained in the registration statement, prospectus, or preliminary prospectus or any amendment thereof or
supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any
information or affidavit so furnished in writing by such holder; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the net amount of proceeds received by such
holder from the sale of Registrable Securities pursuant to such registration statement. 
  
 (c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure
to give prompt notice shall not impair any Person’s right to indemnification hereunder, except to the extent such failure has prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of
interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is
assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying 
  

 7 

 party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties with respect to such claim. 
  
 (d) The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of
the indemnified party or any officer, director, or controlling Person of such indemnified party and shall survive the transfer of securities. The indemnifying parties also agree to make such provisions as are reasonably requested by any indemnified
party for contribution to such party in the event the indemnification provided hereunder is called for under the terms hereof but is unavailable for any reason. 
  

7. Participation in Underwritten Registrations. No Person may participate in any registration hereunder which is underwritten unless such Person
(i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements, (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements, and other documents required under the terms of such underwriting arrangements; provided that no holder of Registrable Securities included in any underwritten registration shall be required to make any
representations or warranties to the Company (other than representations and warranties regarding such holder and such holder’s intended method of distribution) or to undertake any indemnification obligations to the Company with respect
thereto, except as otherwise provided in Section 6 hereof, and (iii) upon the request of the Company, agrees to enter into agreements to not sell any of its equity securities for a specified period prior to or following the effective date of the
Company’s filing and effectiveness of any registration statement. 
  
 8. Holdback Agreement. No Holder shall effect any public sale, public distribution (including sales pursuant to Rule 144 under the Securities Act), or public offering of any Holder’s shares or of any other capital stock or
equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such stock or securities, during the seven days before and the 180-day period or other period designated by the underwriter after the beginning
on the effective date of an underwritten public offering (except as part of any such registration), unless the underwriters managing such registration agree otherwise in writing. 
  
 9. Definitions. 
  
 “Board” means the board of directors of the Company. 
  
 “Commission” means the Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act. 
  
 “Crestview
Group” means Crestview Capital Master, LLC., Big Bend XI Investments, Ltd., HLT FFT, LLC, Midsummer Investment Ltd., Islandia, L.P., Rooster LP, and Richard Kiphart. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar successor
federal statute, and the rules and regulations thereunder, all as the same shall be in effect from time to time. 
  

 8 

 “Holder” means (i) any Stockholder holding Registrable Securities
and (ii) any person holding Registrable Securities to whom the rights under this Agreement have been transferred. 
  
 “Initiating Holders” means any Holder or Holders who in the aggregate hold not less than twenty percent (20%) of the
Registrable Securities then outstanding and who propose to register securities representing not less than ten percent (10%) of the Registrable Securities then outstanding. 
  
 The terms “register”, “registered” and
“registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration
statement. 
  
 “Registrable
Securities” shall mean (i) the Common Stock issued to any person who is a party hereto, (ii) any Common Stock issued or issuable with respect to the Common Stock referred to in clause (i) above by way of a stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger, consolidation, or other reorganization, and (iii) any other shares of Common Stock held by Persons holding securities described in clauses (i) or (ii) above. As to any
particular Registrable Securities, such securities shall cease to be Registrable Securities when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through a broker, dealer, or
market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force) or repurchased by the Company or any subsidiary. For purposes of this Agreement, a Person shall be deemed to be the holder of Registrable
Securities, and the Registrable Securities shall be deemed to be in existence, whenever such Person has the right to acquire such Registrable Securities (upon conversion or exercise or otherwise, but disregarding any restrictions or limitations upon
exercise of such right), whether or not the acquisition has actually been effected, and such Person shall be entitled to exercise the rights of a holder of Registrable Securities hereunder. 
  
 “Required Holders” means Holders owning
a majority of Registrable Securities which are requested to be registered stock hereunder. 
  
 “Rule 144” means Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be
promulgated by the Commission. 
  
 “Rule
145” means Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission. 
  
 “Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  

 9 

 “Shares” means the Company’s Common Stock or any securities
exercisable and/or convertible into the Company’s Common Stock. 
  
 “Sponsor Group” means Sponsor Investments, LLC, Herakles Investments, Inc., Astraea Investment Management, L.P., and Paul Pottinger, Christopher Bancroft, Michael Jordan, John M. Pigott, Goh Yong Siang,
Pat Long, David Kellogg, Charles Jarvie and David Pasahow, as individuals, and their successors and assigns. 
  
 10. Miscellaneous. 
  
 (a) No Inconsistent Agreements. Except in compliance with Section 8(c) hereof, the Company shall not hereafter enter into any agreement with
respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 
  
 (b) Remedies. Any Person having rights under any provision of this Agreement shall be entitled to enforce such rights specifically to recover
damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or other security) for specific performance and for other injunctive relief in order to enforce or
prevent violation of the provisions of this Agreement. 
  
 (c)
Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended or waived only upon the prior written consent of each of the Company, the Initiating Holders, and the holders of a majority of the
Registrable Securities. 
  
 (d) Successors and Assigns. All
covenants and agreements in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. In addition, whether or not any
express assignment has been made, the provisions of this Agreement which are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of such Registrable Securities.

  
 (e) Severability. Whenever possible, each provision of
this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 
  
 (f) Counterparts. This Agreement may be executed simultaneously in two or more counterparts (including by means of telecopied signature pages), any
one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 
  

 10 

 (g) Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a part of this Agreement. 
  
 (h)
Governing Law. The corporate law of the State of Delaware shall govern all issues and questions concerning the relative rights and obligations of the Company and its stockholders. All other issues and questions concerning the construction,
validity, interpretation and enforcement of this Agreement and the schedules hereto shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 
  
 (i) Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be
mailed by registered or certified mail, postage prepaid, return receipt requested, or otherwise delivered by hand or by messenger, addressed (a) if to a Stockholder, at such Stockholder’s address set forth on Exhibit A, or at such other
address as such Stockholder shall have furnished to the Company in writing, or (b) if to the Company, at its address set forth on the signature page of this Agreement addressed to the attention of the Corporate Secretary, or at such other address as
the Company shall have furnished to the Stockholders. Unless specifically stated otherwise, if notice is provided by mail, it shall be deemed to be delivered upon proper deposit in a mailbox, and if notice is delivered by hand or by messenger, it
shall be deemed to be delivered upon actual delivery. 
  

 11 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

							
	NORTH AMERICAN TECHNOLOGIES GROUP, INC.	 	BIG BEND XI INVESTMENTS, LTD.
				
	By:	 	  

	 	By:	 	  

	Its:	 	  

	 	Its:	 	  

		
	CRESTVIEW CAPITAL MASTER, LLC	 	HLT FFT, LLC
				
	By:	 	  

	 	By:	 	  

	Its:	 	  

	 	Its:	 	  

		
	MIDSUMMER INVESTMENT LTD.	 	ISLANDIA, LP
				
	By:	 	  

	 	By:	 	  

	Its:	 	  

	 	Its:	 	  

		
	RICHARD KIPHART	 	ROOSTER LP
				
	By:	 	  

	 	By:	 	  

	Its:	 	  

	 	Its:	 	  

  

 12 

							
	SPONSOR INVESTMENTS, LLC	 	HERAKLES INVESTMENTS, INC.
	By:	 	Herakles Investments, Inc., Manager	 	 	 	 
				
	By:	 	 /s/ Robert W. Korba

	 	By:	 	  

	 	 	Robert W. Korba	 	 	 	 
	Its:	 	President	 	Its:	 	  

		
	ASTRAEA INVESTMENT MANAGEMENT, L.P.	 	PAUL POTTINGER, Individually
				
	By:	 	  

	 	By:	 	  

				
	Its:	 	  

	 	 	 	 
		
	CHRISTOPHER BANCROFT, Individually	 	MICHAEL JORDAN, Individually
				
	By:	 	  

	 	By:	 	  

		
	JOHN M. PIGOTT, Individually	 	GOH YONG SIANG, Individually
				
	By:	 	  

	 	By:	 	  

		
	PAT LONG, Individually	 	DAVID KELLOGG, Individually
				
	By:	 	  

	 	By:	 	  

		
	CHARLES JARVIE, Individually	 	DAVID PASAHOW, Individually
				
	By:	 	  

	 	By:	 	  

  

 13 

 EXHIBIT A 
  
 SCHEDULE OF STOCKHOLDERS 
  
 CRESTVIEW CAPITAL MASTER, LLC 
 95 Revere Drive, Suite A 
 Northbrook, Illinois 60062 
 Attn: Richard Levy 
 TEL: (847) 418-8303 
 FAX: (847) 559-5807

  
 For all notices to Crestview Capital Master,
LLC, provide a copy to: 
  
 FELDMAN WEINSTEIN,
LLP 
 The Graybar Building 
 420 Lexington Ave 
 New York, New York 10170-0002 
 Attn: Joseph Smith 
 TEL: (212) 931-8719 
 FAX: (212) 997-4242 
  
 SPONSOR INVESTMENTS, LLC 
 Two Lincoln Centre 
 5420 LBJ Freeway, Suite 1450 
 Dallas, Texas 75240 
 Attn: Bruce Leadbetter 
 TEL: (972) 490-2360 
 FAX: (972) 490-2345 
  
 For all notices to Sponsor Investments, LLC, provide a copy to: 
  
 LATHAM & WATKINS LLP 
 233 South Wacker Drive 
 Sears Tower, Suite 5800 
 Chicago, Illinois 60606 
 Attn: Richard S. Meller 
 TEL: (312) 876-7700 
 FAX: (312) 993-9767 
  
 SAMMONS CORPORATION 
 5949 Sherry Lane, Suite 1900 
 Dallas, Texas 75225 
 Attn: Legal Department 
 TEL: (214) 210-5058 
 FAX: (214) 210-5087 
  

 14 

 BIG BEND XI INVESTMENTS, LTD. 
  
 TEL: 
 FAX: 
  
 For all notices to Big Bend XI Investments, Ltd., provide a
copy to: 
  
 TEL: 
 FAX: 
  
 HLT FFT, LLC 
  
 TEL: 
 FAX: 
  
 For all notices to HLT FFT, LLC, provide a copy to: 
  
 TEL: 
 FAX: 
  

 15 

 MIDSUMMER INVESTMENTS LTD. 
  
 TEL: 
 FAX: 
  
 For all notices to Midsummer Investments Ltd., provide a
copy to: 
  
 TEL: 
 FAX: 
  
 ISLANDIA, LP 
  
 TEL: 
 FAX: 
  
 For all notices to Islandia, LP provide a copy to: 
  
 TEL: 
 FAX: 
  

 16 

 ROOSTER LP 
  
 TEL: 
 FAX: 
  
 For all notices to Rooster LP, provide a copy to:

  
 TEL: 
 FAX: 
  
 RICHARD KIPHART 
  
 TEL: 
 FAX: 
  
 For all notices to Richard Kiphart provide a copy to: 
  
 TEL: 
 FAX: 
  

 17

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