Document:

Second Lien Pledge Agreement

 Exhibit 10.3 
 SECOND LIEN PLEDGE AGREEMENT 
 This Second Lien Pledge Agreement (this
“Agreement”) is made as of the 20th day of August, 2009 by 
 TieTek Technologies, Inc., a Texas corporation (the
“Pledgor”) in favor of Opus 5949 LLC (formerly known as Tie Investors, LLC), a Texas limited liability company (the “Lender”). 
 R E C I T A L S : 
 A. Pursuant to that certain Second Lien Credit Agreement dated as of
August 20, 2009, by and among North American Technologies Group, Inc., a Delaware corporation (“NATK”), Pledgor and TieTek LLC, a Delaware limited liability company (“TieTek” and together with NATK and the
Pledgor, the “Borrowers” and each individually a “Borrower”), and Lender (as the same may from time to time be amended, restated, supplemented or otherwise modified, the “Loan Agreement”), the Lender has agreed
to make Loans to Borrowers. 
 B. Pledgor is the record and beneficial owner of the Pledged Shares listed next to Pledgor’s name in Part
A of Schedule I hereto and the owner of the promissory notes and instruments listed in Part B of Schedule I hereto. 
 C. In
order to induce Lender to make the Loans as provided for in the Loan Agreement, the Pledgor has agreed to pledge the Pledged Collateral to Lender in accordance herewith. 
 NOW, THEREFORE, for and in consideration of the premises and the making of the Loans, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the Pledgor, the Pledgor hereby
agrees as follows: 
 A G R E E M E N T S : 
 1. Definitions. Unless otherwise defined herein, terms defined in the Loan Agreement are used herein as therein defined, and following shall have (unless otherwise provided elsewhere in this Agreement) the
following respective meanings (such meanings being equally applicable to both singular and plural form of the terms defined): 
 “Membership Interest” has the meaning assigned to such term in Section 2 hereof. 
 “Pledged
Collateral” has the meaning assigned to such term in Section 2 hereof. 
 “Pledged Indebtedness” means the
indebtedness evidenced by promissory notes and instruments listed on Part B of Schedule I hereto. 
 “Pledged Shares”
means the Membership Interest, other interests and those other shares listed on Part A of Schedule I hereto. 
 “Secured
Indebtedness” has the meaning assigned to such term in Section 2 hereof. 

 2. Pledge. The Pledgor hereby pledges to Lender and grants to Lender a security interest in all of
the following (collectively, the “Pledged Collateral”): 
 (i) (a) All of the right, title and interest (the
“Membership Interest”) of the Pledgor in and to TieTek, which was formed pursuant to the Articles of Formation (the “Articles of Formation”) dated as of February 5, 2004, and the Regulations (the
“Regulations”) dated as of February 5, 2004, (together, the “Organization Documents”, (b) all other Pledged Shares, and (c) the certificates representing the Membership Interest and other Pledged Shares;

 (ii) Any and all proceeds and distributions (the “Proceeds”) due or to become due to the Pledgor under the
Organization Documents and all dividends, distributions, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares; 

(iii) All rights under all operating or limited liability company agreements and other documents (including the Articles of Formation
and the Regulations) governing any of the Pledged Shares (collectively, the “LLC Agreements”); 
 (iv) Any
additional shares of stock or equity interests from time to time acquired by the Pledgor in any manner (which shares shall be deemed to be part of the Pledged Shares), and the certificates representing such additional shares, and all dividends,
distributions, cash, instruments and other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any o all of such stock; 
 (v) Any and all present and future accounts, certificates of deposit, securities, general intangibles, chattel paper and other proceeds
arising from, or by virtue of, or from the disposition of, or claims against any other person or entities with respect to, all or any part of the property described in clauses (i) or (ii) preceding; 
 (vi) The Pledged Indebtedness and the promissory notes or instruments evidencing the Pledged Indebtedness, and all interest, cash,
instruments and other property and assets from time to time received, receivable or otherwise distributed in respect of the Pledged Indebtedness; 
 (vii) All additional indebtedness arising after the date hereof and owing to such Pledgor and evidenced by promissory notes or other instruments, together with such promissory notes and instruments, and all interest,
cash, instruments and other property and assets from time to time received or otherwise distributed in respect of that Pledged Indebtedness. 
 3. Secured Indebtedness. This Agreement is made to secure the payment and performance of (a) the Loans and any renewals, increases, extensions, and modifications thereof, (b) any and all advances made and costs and expenses
incurred by the Lender pursuant to the Loan Agreement, this Agreement and any other Loan Document, as such term is defined in the Loan Agreement, (c) Borrowers’ performance of its obligations under the Note, the Loan Agreement and other
Loan Documents, (d) the Pledgor’s performance of its obligations under this Agreement and other Loan Documents, and (e) all other and additional debts, obligations and liabilities of every 

 
kind and character of Borrowers now or hereafter existing in favor of the Lender, under the Loan Documents, as such term is defined in the Loan Agreement.
The debts, obligations and liabilities referred to in clauses (a), (b), (c), (d) and (e) above are referred to collectively as the “Secured Indebtedness.” Upon full payment in cash and performance of the
Secured Indebtedness, the Lender, at the request and expense of the Pledgor, shall execute a release of this Agreement. 
 4. Delivery of
Pledged Collateral. Unless in possession of First Lien Lender, all certificates and all promissory notes and instruments evidencing the Pledged Collateral shall be delivered to Lender. All Pledged Shares shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory to Lender and all promissory notes or other instruments evidencing the Pledged Indebtedness shall be endorsed by the Pledgor. 
 5. Representations and Warranties. To induce the Lender to make the Loans, the Pledgor represents and warrants as follows: 
 (a) The Organization Documents are valid and in full force and effect according to its terms, and no change, modification or amendment has
been made to the Organization Documents; 
 (b) The Pledgor has good title to its interest in the Pledged Collateral and full
authority to grant a security interest in the Pledged Collateral; and no other person, corporation or entity (other than the First Lien Lender) has any right, title or interest therein; 
 (c) Subject to paragraph (h) below, there are no provisions in any indenture, contract, agreement or other document controlling
(directly or indirectly) the Pledgor or to which the Pledgor is a party or is bound, which prohibits the execution and delivery of this Agreement or the performance of its terms; 
 (d) The Pledgor has performed duly and punctually all and singular the terms, covenants, conditions and warranties of the Organization
Documents on the Pledgor’s part to be kept, observed and performed; 
 (e) The Pledgor has not previously sold, assigned,
transferred, mortgaged, pledged or encumbered the Pledgor’s interests in the Pledged Collateral, except as set forth in the Security Agreement (Membership Interest) dated as of February 5, 2004 (the “First Lien Pledge
Agreement”) ; 
 (f) The Pledgor is not in default of any of the terms of the Organization Documents; 
 (g) To the knowledge of Pledgor, no other party to the Organization Documents is in default thereunder; 
 (h) Except as required by the Organization Documents and the First Lien Loan Agreement, which requirement has been waived, no consent,
approval, or authorization of or from any person, entity or governmental authority is necessary for the Pledgor validly to grant a security interest in the Pledged Collateral; 

 (i) Any sums to which the Pledgor is entitled under the Organization Documents, which are
due from and after the date hereof have not been collected; and payment of such sums has not otherwise been anticipated, waived, released, discounted, set off, or otherwise discharged or compromised; and 
 (j) The pledge, assignment and delivery of the Pledged Collateral (together with duly executed instruments of transfer or assignment in
blank and appropriate endorsements) pursuant to this Agreement will create a valid Lien on and a perfected security interest in favor of the Lender in the Pledged Collateral and the proceeds thereof, securing the payment of the Secured Indebtedness,
subject to no other Lien other than the lien pursuant to the First Lien Loan Agreement 
 6. Covenants. The Pledgor covenants and
agrees as follows: 
 (a) To observe, perform and discharge all obligations, covenants and warranties provided for under the
terms of the Organization Documents to be kept, observed and performed by the Pledgor, and to inform the Lender promptly in writing of any notice received by the Pledgor (i) with respect to any obligation to be performed but alleged not to have
been performed by the Pledgor under the Organization Documents, and (ii) of any default or claimed default by any party to the Organization Documents; 
 (b) To enforce or secure the enforcement, in the name of the Lender, the performance of each and every obligation, term, covenant, condition and agreement to be performed by any other party under the terms of the
Organization Documents; 
 (c) Not to vote in favor of, or cause, the termination of TieTek, or vote in favor of any
modification, extension, renewal, amendment or material alteration of any term of the Organization Documents without, in each such instance, the prior written consent of the Lender; 
 (d) To keep accurate books, records, and accounts with respect to TieTek and make them available to the Lender, at its request, for
examination and inspection; 
 (e) At any time after the occurrence of an Event of Default or Default (as defined in the Loan
Agreement), to pay over and deliver immediately to the Lender as a prepayment on the Secured Indebtedness any and all amounts hereafter received by the Pledgor pursuant to the terms of the Organization Documents or documents evidencing Pledged
Indebtedness (any and all amounts paid to the Lender pursuant hereto shall be applied against the Secured Indebtedness in the manner the Lender shall determine, in its sole and absolute discretion); 
 (f) That the Lender, after the occurrence of an Event of Default or a Default, without notice to the Pledgor, shall have the right at any
time and from time to time to notify and direct any officer or such other appropriate party, of TieTek to thereafter make all disbursements of the Proceeds directly to the Lender; such officer or other party shall be fully protected in relying on
the written statement of the Lender that it holds a security interest that entitles the Lender to receive any such disbursement, and the receipt by the Lender of such disbursements shall be full acquittance thereof to the party making such
disbursements; 

 (g) At any time, and from time to time, at the request of the Lender, to execute and
deliver to the Lender any and all additional instruments and further assurances, and to do all other acts and things as may be necessary or proper, at the Lender’s option, more fully to evidence and perfect the rights, titles, liens and
security interests herein created or intended to be created, and protect the rights, remedies, privileges and powers of the Lender hereunder; 
 (h) To pay any and all costs and expenses incurred by the Lender incident to the making of the Secured Indebtedness, the preparation of this Agreement and the exercise of any and all rights of the Lender hereunder;

 (i) To pay all the Secured Indebtedness in accordance with the terms thereof and hereof, or when the maturity thereof may
be accelerated, in accordance with the terms thereof or hereof; 
 (j) Not to create or permit to be created any liens or
security interests against or affecting the Pledged Collateral, other than the security interest created by this Agreement and the First Lien Pledge Agreement, without the prior written consent of the Lender; and 
 (k) Not to sell, assign, pledge, hypothecate, encumber or in any manner dispose of the Pledged Collateral except for the pledge pursuant
to this Agreement and pursuant to the First Lien Pledge Agreement. 
 7. Obligations of the Lender. The Lender shall have no duty to
fix or preserve rights against prior parties to the Pledged Collateral, and shall never be liable for its failure to use diligence to collect any amount payable in respect of the Pledged Collateral, but shall be liable only to account to the Pledgor
for what the Lender actually may collect or receive thereon. 
 8. Events of Default. As used herein the term
“Default” shall mean: 
 (a) The failure to pay any installment of principal or interest of the Secured
Indebtedness in accordance with its terms, through acceleration, or otherwise; 
 (b) The failure of the Pledgor to perform
properly any obligation contained in this Agreement; or 
 (c) The occurrence of an Event of Default. 
 9. Remedies Upon Default. Upon the occurrence of a Default, in addition to any and all other rights and remedies that the Lender then may have
hereunder, under the Uniform Commercial Code (the “Code”) under any other Loan Document, or otherwise, the Lender at its option may: (a) declare the entire unpaid balance of principal of and all earned interest on the Secured
Indebtedness immediately due and payable, without notice (including notice of intention to accelerate and notice of acceleration), demand or presentment, which are hereby waived; (b) reduce its claim to judgment, foreclose or otherwise enforce
its security interest in all or any part of the 

 
Pledged Collateral by any available judicial procedure; (c) after notification, if any, provided for in the following paragraph hereof, sell or
otherwise dispose of, at the office of the Lender, or elsewhere, as chosen by the Lender, all or any part of the Pledged Collateral, and any such sale or other disposition may be as a unit or in parcels, by public or private proceedings, and by way
of one or more contracts (it being agreed that the sale of any part of the Pledged Collateral shall not exhaust the Lender’s power of sale, but sales may be made from time to time until all of the Pledged Collateral has been sold or until the
Secured Indebtedness has been paid in full in cash), and at any such sale it shall not be necessary to exhibit the Pledged Collateral; (d) at its discretion, retain the Pledged Collateral in satisfaction of the Secured Indebtedness whenever the
circumstances are such that the Lender is entitled to do so under the Code; (e) apply by appropriate judicial proceedings for appointment of a receiver for the Pledged Collateral, or any part thereto, and the Pledgor hereby consents to any such
appointment; (f) buy the Pledged Collateral at any public sale; and (g) buy the Pledged Collateral at any private sale. Lender shall be entitled to apply the proceeds of any sale or other disposition of the Pledged Collateral in the
following order: first, to the payment of all of its reasonable costs incurred in storing, preparing for sale and selling all or any part of the Pledged Collateral and to the payment of attorney’s fees as provided for herein or in any note or
obligation secured hereby; and next, toward payment of the balance of the Secured Indebtedness in such order and manner as the Lender, in its discretion, may deem advisable. The Lender shall account to the Pledgor for any surplus. If the proceeds
are not sufficient to pay the Secured Indebtedness in full in cash, Borrowers shall remain liable for any deficiency. 
 10. PROXY.
PLEDGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS LENDER AS THE PROXY AND ATTORNEY-IN-FACT OF SUCH PLEDGOR WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE THE PLEDGED SHARES, WITH FULL POWER OF SUBSTITUTION TO DO SO. THE
APPOINTMENT OF LENDER AS PROXY AND ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE. IN ADDITION TO THE RIGHT TO VOTE THE PLEDGED SHARERS, THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO
EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF THE PLEDGED SHARES WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND
WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY PLEDGED SHARES ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OR THE PLEDGED SHARES OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF AN EVENT
OF DEFAULT. NOTWITHSTANDING THE FOREGOING, LENDER SHALL NOT HAVE ANY DUTY TO EXERCISE ANY SUCH RIGHT OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO. 
 11. Required Notification. Ten (10) days’ notification of the time and place of any public sale of the Pledged Collateral, or ten
(10) days’ notification of the time after which any private sale or other intended disposition of the Pledged Collateral is to be made, shall be sent to the Pledgor and to any other person entitled under the Code to notice; provided, that
if the Pledged Collateral is perishable, threatens to decline speedily in value, or is of a type customarily sold on a recognized market, then the Lender may sell or otherwise dispose of the Pledged Collateral without notification, advertisement or
other notice of any kind. It is agreed that notice sent or given not less than five (5) calendar days prior to the taking of the action to which the notice relates is reasonable notification and notice for the purpose of this paragraph.

 12. Financing Statement. The Lender shall have the right at any time to execute and file the
original or a copy of this Agreement as a financing statement, but the failure of the Lender to do so shall not impair the validity or enforceability of this Agreement. 
 13. Additional Remedies. All rights and remedies of the Lender hereunder are cumulative of each other and of every other right or remedy that the Lender may otherwise have at law or in equity or under any other
contract or other writing for the enforcement of the security interest herein created or the collection of the Secured Indebtedness. The exercise of one or more rights or remedies shall not prejudice or impair the concurrent or subsequent exercise
of other rights or remedies. Should the Pledgor have heretofore executed or hereafter execute any other security agreement in favor of the Lender, the security interest therein created and all other rights, powers and privileges vested in the Lender
by the terms thereof shall exist concurrently with the security interest created herein, and the exercise or failure to exercise by the Lender of any right or power conferred upon the Lender in any such instrument shall not prejudice or impair the
Lender’s rights, titles, liens, and powers existing hereunder. 
 14. Effect of Securities Laws. The Pledgor agrees that, because
of the Securities Act of 1933, as amended, or any other laws, and for other reasons, there may be legal or practical restrictions or limitations affecting the Lender in any attempts to dispose of certain portions of the Pledged Collateral and for
enforcement of the Lender’s rights and remedies hereunder. For these reasons, the Lender is hereby authorized by the Pledgor, but not obligated, in the event of the occurrence of a Default hereunder, to sell all or any part of the Pledged
Collateral at private sale, subject to investment letter or in any other manner that will not require the Pledged Collateral, or any part thereof, to be registered in accordance with the Securities Act of 1933, as amended, or the rules and
regulations promulgated thereunder, or any other law, at the best price reasonably obtainable by the Lender at any such private sale or other sale and to do such other things as the Lender may deem to be required or appropriate in the event of sale
or disposition of any of the Pledged Collateral. The Pledgor acknowledges that the Lender, in its discretion, may approach a restricted number of potential purchasers and that a sale under such circumstances may yield a lower price for the Pledged
Collateral, or any part or parts thereof, than otherwise would be obtainable if the same either were offered to a large number of potential purchasers, or were registered and sold in the open market. The Pledgor agrees (a) that in the event the
Lender, upon a Default hereunder, shall sell the Pledged Collateral, or any portion thereof, at such private sale or sales, the Lender shall have the right to rely upon the advice and opinion of any member firm of a national securities exchange as
to the best price reasonably obtainable upon such a private sale thereof, and (b) that such reliance shall be conclusive evidence that the Lender handled such matter in a commercially reasonable manner under the Code. 
 15. Assignment. The rights, powers and interests held by the Lender hereunder, together with the Pledged Collateral, may be transferred and
assigned by the Lender, in whole or in part, at such time and upon such terms as the Lender may deem advisable. 
 16. Actions Not Deemed
a Waiver. Should any part of the Secured Indebtedness be payable in installments, the acceptance by the Lender at any time and from time to time of part 

 
payment of the aggregate amount of all installments then matured shall not be deemed to be a waiver of the Default then existing. No waiver by the Lender of
any Default shall be deemed to be a waiver of any other subsequent Default; nor shall any such waiver by the Lender be deemed to be a continuing waiver. No delay or omission by the Lender in exercising any right or power hereunder, or under any
other writings executed by the Pledgor as security for or in connection with the Secured Indebtedness, shall impair any such right or power or be construed as a waiver thereof or any acquiescence therein; nor shall any single or partial exercise of
any such right or power preclude other or further exercise thereof, or the exercise of any other right or power of the Lender hereunder or under such other writings. 
 17. Voting Rights. So long as an Event of Default or a Default has not occurred and is continuing, the Pledgor shall have the right, from time to time, to vote and to give consents, ratifications, and waivers
with respect to the Membership Interest or any other Pledged Shares at the time included in the Pledged Collateral. The Lender, in respect to any such Membership Interest or any other Pledged Shares at the time registered in the name of the Lender
or in the name of its nominee, from time to time, which the Pledgor is entitled so to do, upon the written request of the Pledgor (which request shall include, or be accompanied by, a statement that no Event of Default or Default has occurred),
shall deliver to the Pledgor or as specified in such request such consents, ratifications, and waivers as may be specified in such request and which are not inconsistent with the Lender’s rights hereunder. Without limiting the provisions in
clause 9 above, from and after the occurrence and during the continuation of an Event of Default or Default, the Lender shall have the right to vote and to give consents, ratifications, and waivers with respect to the Membership Interest or any
other Pledged Shares at the time included in the Pledged Collateral and to take action to enforce any such Membership Interest or other Pledged Shares. 
 18. Usury Savings Clause. No provision herein or in any of the documents evidencing the Secured Indebtedness shall require the payment or permit the collection of interest in excess of the maximum permitted by
law. If any excess of interest in such respect is provided for herein or in any such promissory note or any other loan document, the provisions of this paragraph shall govern; and the Pledgor or TieTek shall not be obligated to pay the amount of
such interest to the extent that it is in excess of the amount permitted by law. The intention of the parties being to conform strictly to the usury laws now in force, all documents evidencing the Secured Indebtedness shall be held subject to
reduction to the amount allowed under said usury laws as now or hereafter construed by the courts having jurisdiction. 
 19. Notice.
Whenever this Agreement requires or permits any consent, approval, notice, request or demand from one party to another, the consent, approval, notice, request or demand must be in writing to be effective and, if mailed, shall be deemed to have been
given on the third business day after the same is enclosed in an envelope, addressed to the party to be notified at the address set forth below, properly stamped, sealed and deposited in the United States mail, certified, return receipt requested.

 20. Binding Effect. This Agreement shall be binding on the Pledgor and the Pledgor’s personal and legal representatives,
heirs, devisees, successors and assigns and shall inure to the benefit of the Lender, its successors and assigns. 

 21. Severability. If any provision of this Agreement should be illegal or unenforceable, then this
Agreement shall be effective only to the extent of the provisions hereof that are legal and enforceable. 
 22. Applicable Laws. This
Agreement is being executed and delivered in the State of Texas. The substantive laws of the State of Texas shall govern the validity, construction, and interpretation of this Agreement, unless the laws of the United States or another state require
the application of the laws of such state. 
 23. Power of Attorney. Notwithstanding any prohibition against the assignment by the
Pledgor of its interest in TieTek and the consequent ineffectiveness of this Agreement with respect thereto, the effectiveness of this Agreement shall not be diminished or rendered ineffective in any way with respect to the Proceeds derived
therefrom. In connection therewith, the Pledgor does hereby constitute and appoint the Lender as the Pledgor’s true and lawful attorney-in-fact, coupled with an interest, to act as the Pledgor’s agent for the purpose of the collection of
all Proceeds. Neither the Lender nor any partner or other party to the Organization Documents shall have any liability for the distribution to and collection of the Proceeds by the Lender, but shall be fully protected in relying on the written
statement of the Lender as to its authorization pursuant to this paragraph. Any and all amounts collected by the Lender pursuant hereto shall be applied against the Secured Indebtedness in the manner that the Lender shall determine, in the
Lender’s sole and absolute discretion. 
 [Signature Page to Follow] 

 EXECUTED EFFECTIVE as of the      day of August, 2009. 
  

			
	PLEDGOR:
	
	TIETEK TECHNOLOGIES, INC., a Texas corporation
		
	By:	 	 /s/

		
	Name:	 	 D. Patrick Long

		
	Its:	 	 Chief Executive Officer

	
	 ADDRESS FOR NOTICE:
  
 TieTek Technologies, Inc.
 429 Memory Lane,
 Marshall, Texas 75672

 SCHEDULE I 
 PART A 
 PLEDGED SHARES 
  

											
	 Pledgor
	  	 Pledged Entity
	  	 Class of Stock
	  	 Stock Certificate
 Number
	  	 Number of Shares
	  	 Percentage of
 Outstanding Shares

	TieTek Technologies, Inc.	  	TieTek LLC	  		  		  		  	

 [Pledgor to complete] 
 PART B 
 PLEDGED INDEBTEDNESS 
 [Pledgor to complete]Second Lien Security Agreement

 Exhibit 10.4 
 SECOND LIEN SECURITY AGREEMENT 
 SECOND LIEN SECURITY AGREEMENT, dated as of August 20, 2009,
between North American Technologies Group, Inc., a Delaware corporation (“NATK”), TieTek Technologies, Inc., a Texas Corporation (“TTT”), and TieTek LLC, a Delaware limited liability company
(“TieTek” and together with NATK and TTT, the “Debtors” and each individually a “Debtor”), and Opus 5949 LLC (formerly known as Tie Investors, LLC), a Texas limited liability company (the
“Secured Party”). 
 WHEREAS, the Debtors and Secured Party have entered into a Second Lien Loan Agreement (the
“Loan Agreement”) of even date herewith pursuant to which the Secured Party has agreed to loan to Debtors certain funds on the terms and conditions set forth therein; 
 WHEREAS, pursuant to the Loan Agreement, the Debtors have agreed to execute and deliver this Second Lien Security Agreement (this
“Agreement”) to secure the payment and performance of the Obligations (as defined below); and 
 WHEREAS, the Debtors wish
to grant a security interest in favor of the Secured Party as herein provided. 
 NOW, THEREFORE, in consideration of the promises contained
herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Definitions and Construction. All capitalized terms used herein without definitions shall have the respective meanings provided therefor in the Loan Agreement. The term “State,” as
used herein, means the state of Texas. All terms defined in the Uniform Commercial Code of the State and used herein shall have the same definitions herein as specified therein. However, if a term is defined in Article 9 of the Uniform Commercial
Code of the State differently than in another Article of the Uniform Commercial Code of the State, the term has the meaning specified in Article 9. The term “Obligations,” as used herein, means the Loans and all other obligations of
the Debtors to the Secured Party to make the payment under the Loan Documents and all other obligations and liabilities of the Debtors under this Agreement. 
 In this Agreement, the following rules of construction and interpretation shall be applicable: (i) no reference to “proceeds” in this Agreement authorizes any sale, transfer or other disposition of any
Collateral by any Debtor; (ii) “includes” and “including” are not limiting; (iii) “or” is not exclusive; and (iv) “all” includes “any” and “any” includes “all.” To
the extent not inconsistent with the foregoing, the rules of construction and interpretation applicable to the Intellectual Property Security Agreement shall also be applicable to this Agreement and are incorporated herein by this reference.

 2. Grant of Security Interest. Each Debtor hereby grants, assigns, mortgages, pledges and transfers to the Secured Party, to
secure the payment and performance in full of all of the Obligations, a Lien on and security interest in, each and all of such Debtor’s right, title and 

 
interest in the following property and assets and all other personal property of such Debtor, whether now owned by such Debtor or hereafter acquired and
whether now existing or hereafter coming into existence and wherever located (all being collectively referred to herein as “Collateral”), including, without limitation: (i) Accounts; (ii) Chattel Paper (whether tangible or
electronic); (iii) Commercial Tort Claims set forth on Schedule II; (iv) Deposit Accounts and all other bank accounts and deposits therein; (v) Documents; (vi) Equipment; (vii) financial assets; (viii) Fixtures;
(ix) General Intangibles; (x) Goods; (xi) Instruments; (xii) insurance claims and proceeds; (xiii) Inventory; (xiv) Investment Property; (xv) Supporting Obligations and Letter of Credit Rights; (xvi) Payment
Intangibles; (xvii) Promissory Notes; (xviii) Intellectual Property, (xviv) money, cash or cash equivalents of such Debtor, and (xviv) all other tangible and intangible property of such Debtor, including, without limitation, all
proceeds, tort claims, products, accessions, rents, profits, income, benefits, substitutions, additions and replacements of and to any of the foregoing (including, without limitation, any proceeds of insurance thereon, insurance claims and all
rights, claims and benefits against any person relating thereto), other rights to payments not otherwise included in the foregoing and all books, correspondence, files, records, invoices and other papers, including without limitation all tapes,
cards, computer runs, computer programs, computer files and other papers, documents and records in the possession or under the control of such Debtor or any computer bureau or service company from time to time acting for such Debtor, and all
proceeds of the foregoing. 
 3. Authorization to File Financing Statements. Each Debtor hereby irrevocably authorizes the
Secured Party at any time and from time to time to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all assets of such
Debtor now owned or hereafter acquired or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State or such jurisdiction, or
(ii) as being of an equal or lesser scope or with greater detail and (b) provide any other information required by part 5 of Article 9 of the Uniform Commercial Code of the State, or such other jurisdiction, for the sufficiency or filing
office acceptance of any financing statement or amendment, including (i) whether such Debtor is an organization, the type of organization and any organizational identification number issued to such Debtor and (ii) in the case of a
financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates. Each Debtor agrees to furnish any such information to
the Secured Party promptly upon the Secured Party’s request. 
 4. Other Actions as to Any and All Collateral. Each Debtor
further agrees, at the request and option of the Secured Party, to take, at such Debtor’s expense, any and all other actions the Secured Party may determine to be necessary or useful for the attachment, perfection and priority of, and the
ability of the Secured Party to enforce, the Secured Party’s security interest in any and all of the Collateral, including, without limitation, (a) executing, delivering and, where appropriate, filing financing statements and amendments
relating thereto under the Uniform Commercial Code, to the extent, if any, that such Debtor’s signature thereon is required therefor, (b) causing the Secured Party’s name to be noted as secured party on any certificate of title for a
titled good if such notation is a condition to attachment, perfection or priority of, or ability of the Secured Party to enforce, the Secured Party’s security interest in such Collateral, 

 
(c) complying with any provision of any statute, regulation or treaty of the United States as to any Collateral if compliance with such provision is a
condition to attachment, perfection or priority of, or ability of the Secured Party to enforce, the Secured Party’s security interest in such Collateral, (d) obtaining governmental and other third party waivers, consents, and approvals in
form and substance satisfactory to Secured Party, including, without limitation, any consent of any licensor, lessor or other person obligated on Collateral, (e) obtaining waivers from mortgagees and landlords in form and substance satisfactory
to the Secured Party, and (f) taking all actions under any earlier versions of the Uniform Commercial Code or under any other law, as reasonably determined by the Secured Party to be applicable in any relevant Uniform Commercial Code or other
jurisdiction, including any foreign jurisdiction. Unless delivered to Secured Party (as such term is defined in that certain Security Agreement dated as of February 5, 2004, by and among Debtors and such Secured Party (the “First Lien
Security Agreement”)) or Secured Party shall otherwise consent in writing (which consent may be revoked), each Debtor shall deliver to Secured Party all Collateral (and take all other steps requested by Secured Party with respect to such
Collateral) consisting of negotiable Documents, letters of credit (in which Debtor is the beneficiary thereof), certificated securities, Chattel Paper and Instruments (in each case, accompanied by stock powers, allonges or other instruments of
transfer executed in blank) promptly after such Debtor receives the same. Each Debtor shall provide Secured Perty with prompt written notice if Debtor acquires any commercial tort claims (as defined in the Code) and unless otherwise consented by
Secured Party, each Debtor shall enter into a supplement to this Agreement, granting to Secured Party a Lien in such commercial tort claim 
 5. Intellectual Property Security Agreement. Concurrently herewith, the Debtors are also executing and delivering to the Secured Party an Intellectual Property Security Agreement pursuant to which each Debtor is granting to
the Secured Party security interests in certain Collateral consisting of, among other things, patents, patent rights and trademarks. The provisions of the Intellectual Property Security Agreement are supplemental to the provisions of this Agreement,
and nothing contained in the Intellectual Property Security Agreement shall derogate from any of the rights or remedies of the Secured Party hereunder. Neither the delivery of, nor anything contained in, the Intellectual Property Security Agreement
shall be deemed to prevent or postpone the time of attachment or perfection of any security interest in such Collateral created hereby. 
 6. Representations and Warranties Concerning Debtors’ Legal Status. 
 (a) North American Technologies Group,
Inc. represents and warrants to the Secured Party as follows: (i) North American Technologies Group, Inc.’s exact legal name is North American Technologies Group, Inc., (ii) North American Technologies Group, Inc. is a Delaware
corporation, (iii) North American Technologies Group, Inc.’s organizational identification number is 2112835, and (iv) North American Technologies Group, Inc.’s principal place of business is 429 Memory Lane, Marshall, Texas
75672. 
 (b) TieTek Technologies, Inc. represents and warrants to the Secured Party as follows: (i) TieTek Technologies, Inc.’s
exact legal name is TieTek Technologies, Inc., (ii) TieTek Technologies, Inc. is a Texas corporation and a wholly-owned subsidiary of North American Technologies Group, Inc., (iii) TieTek Technologies, Inc.’s organizational
identification number is 01373482-00, and (iv) TieTek Technologies, Inc.’s principal place of business is 429 Memory Lane, Marshall, Texas 75672. 

 (c) TieTek LLC represents and warrants to the Secured Party as follows: (i) TieTek, LLC’s exact
legal name is TieTek LLC, (ii) TieTek LLC is a Delaware limited liability company and a wholly-owned subsidiary of TieTek Technologies, Inc., (iii) TieTek LLC’s organizational identification number is 3692537, and (iv) TieTek
LLC’s principal place of business is 429 Memory Lane, Marshall, Texas 75672. 
 7. Covenants Concerning Debtors’ Legal
Status. Debtors covenant with the Secured Party as follows: (a) No Debtor will change its name, its place of business, chief executive office or its mailing address; (b) if any Debtor does not have an organizational identification
number and later obtains one, such Debtor shall forthwith notify the Security Party of such organizational identification number; and (c) no Debtor will change its type of organization, jurisdiction or organization or other legal structure.

 8. Representations and Warranties Concerning Collateral, etc. Debtors further represent and warrant to the Secured Party as
follows: (a) Debtors are the owners of or have other rights in or power to transfer the Collateral, free from any right or claim of any person or any adverse lien, security interest or other encumbrance, except for the security interest created
by this Agreement and other liens disclosed on Schedule I; (b) none of the Collateral constitutes, or is the proceeds of, “farm products” as defined in Section 9-102(a)(34) of the Uniform Commercial Code of the State;
(c) none of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral;
(d) Debtors have at all times operated their business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state, and local statutes and ordinances
dealing with the control, shipment, storage or disposal of hazardous materials or substances; and (e) all other information set forth herein or otherwise provided to the Secured Party pertaining to the Collateral is accurate and complete.

 9. Covenants Concerning Collateral, etc. Debtors further covenant with the Secured Party as follows: 
 9.1 the Collateral, to the extent not in the possession of the Secured Party (as defined in the First Lien Security Agreement) or not delivered to
the Secured Party and except as contemplated in Section 9.8 hereof, will be kept at 429 Memory Lane, Marshall, Texas 75672, and no Debtor will remove the Collateral (other than any Inventory sold in the ordinary course of business) from
such locations, without the prior written consent of Secured Party (which consent shall be given in Secured Party’s sole discretion); 
 9.2 except for the security interest herein granted and liens disclosed on Schedule I, Debtors shall be the owners of or have other rights in the Collateral free from any right or claim of any other person, lien, security
interest or other encumbrance, and Debtors shall defend the same against all claims and demands of all persons at any time claiming the same or any interests therein adverse to the Secured Party; 

 9.3 Debtors shall not pledge, mortgage or create, or suffer to exist any right of any person in or
claim by any person to the Collateral, or any security interest, lien or encumbrance in the Collateral in favor of any person, other than the Secured Party except for liens disclosed on Schedule I; 
 9.4 Debtors will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon;

 9.5 Debtors will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time, wherever located;

 9.6 Debtors will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in
connection with the use or operation of such Collateral or incurred in connection with this Agreement; 
 9.7 Debtors will continue to
operate, their business in compliance with all applicable provision of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state, and local statutes and ordinances dealing with the control, shipment,
storage or disposal of hazardous material or substances; and 
 9.8 Debtors will not sell or otherwise dispose of, or offer to sell or
otherwise dispose of, the Collateral or any interest therein except for sales of inventory in the ordinary course of business. 
 10.
Insurance and Risk of Loss. 
 10.1 Debtors will insure the Collateral in accordance with Secured Party’s reasonable
requirements regarding choice of carrier, risks insured against, and amount of coverage. Policies must be written in favor of Debtors, be endorsed to name Secured Party as an additional insured or as otherwise directed in writing by Secured Party,
and provide that Secured Party will receive at least ten (10) days’ notice before cancellation or change in coverage. Debtors must provide copies of the policies or certificates, and any renewals, to Secured Party. 
 10.2 Debtors assume all risk of loss to the Collateral. 
 10.3 Debtors appoint Secured Party as attorney-in-fact to collect any returned unearned premiums and proceeds of any insurance on the Collateral and to endorse and deliver to Secured Party any payment from such
insurance made payable to Debtors. Debtors’ appointment of Secured Party as Debtors’ agent is coupled with an interest. 
 10.4
In the event of failure by the Debtors to provide and maintain insurance as herein provided, the Secured Party may, at its option, provide such insurance and charge the amount thereof to the Debtors. The Debtors shall furnish the Secured Party
with certificates of insurance and policies evidencing compliance with the foregoing insurance provision. 

 11. Collateral Protection Expenses; Preservation of Collateral. 
 11.1 Expenses Incurred by Secured Party. In the Secured Party’s discretion, if the Debtors fail to do so, the Secured Party may
discharge taxes and other encumbrances at any time levied or placed on any of the Collateral, maintain any of the Collateral, make repairs thereto and pay any necessary filing fees or insurance premiums. The Debtors agree to reimburse the Secured
Party on demand for all expenditures so made. These expenses will bear interest from the date of advance at the rate of 18% per annum and are payable on demand at the place where the Obligations are payable. These expenses and interest are part
of the Obligations and are secured by this Agreement. The Secured Party shall have no obligation to the Debtors to make any such expenditures, nor shall the making thereof be construed as the waiver or cure of any Event of Default. 
 11.2 Secured Party’s Obligations and Duties. Anything herein to the contrary notwithstanding, the Debtors shall remain obligated and
liable under each contract or agreement comprised in the Collateral to be observed or performed by the Debtors thereunder. The Secured Party shall not have any obligation or liability under any such contract or agreement by reason of or arising out
of this Agreement or the receipt by the Secured Party of any payment relating to any of the Collateral, nor shall the Secured Party be obligated in any manner to perform any of the obligations of the Debtors under or pursuant to any such contract or
agreement, to make inquiry as to the nature or sufficiency of any payment received by the Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file
any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Secured Party or to which the Secured Party may be entitled at any time or times. The Secured Party shall use
reasonable care with respect to the Collateral in its possession or under its control. The Secured Party shall not have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the
Secured Party, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. 
 12. An Event of Default. An “Event of Default” shall be deemed to have occurred hereunder if: 
 12.1
Debtors fail to timely pay the Obligations or Debtors fail to perform any obligation or covenant in this Agreement or the Loan Documents as or when due to be paid or performed; 
 12.2 any warranty, covenant or representation in the Security Agreement or the Intellectual Property Security Agreement between Debtors, on the
one hand, and Secured Party, on the other, in this Agreement is materially false when made; 
 12.3 an Event of Default has occurred
under the Loan Agreement; or 

 12.4 any Collateral is impaired by loss, theft, damage, levy and execution, issuance of an
official writ or order of seizure, or destruction, unless it is promptly replaced with Collateral of like kind and quality or restored to its former condition. 
 13. Remedies. 
 13.1 If an Event of Default exists, Secured Party may: 
  

	 	(a)	demand, collect, convert, redeem, settle, compromise, receipt for, realize on, sue for, and adjust the Collateral either in Secured Party’s or any Debtor’s name, as
Secured Party desires, or take control of any proceeds of the Collateral and apply the proceeds against the Obligations; 

  

	 	(b)	take possession of any Collateral to the extent not in possession of the Secured Party (as defined under the First Lien Security Agreement) or not already in Secured
Party’s possession, without demand or legal process, and for that purpose, Debtors grant Secured Party the right to enter any premises where the Collateral may be located; 

  

	 	(c)	without taking possession, sell, lease or otherwise dispose of the Collateral at any public or private sale in accordance with law; 

  

	 	(d)	exercise any rights and remedies granted by law or this Agreement; 

  

	 	(e)	notify obligors on the Collateral to pay Secured Party directly; 

  

	 	(f)	as Debtors’ agent, make any endorsements in any Debtor’s name and on such Debtor’s behalf of any instruments in the Collateral and to any proceeds of the
Collateral; 

  

	 	(g)	and enforce all rights, including voting rights, available to an owner of the Collateral; and 

  

	 	(h)	transfer record ownership of any Collateral to Secured Party. 

 13.2 Foreclosure of this security interest by suit does not limit Secured Party’s remedies, including the right to sell the Collateral under the terms of this Agreement. Secured Party may exercise all
remedies at the same or different times, and no remedy is a defense to any other. Secured Party’s rights and remedies include all those granted by law and those specified in this Agreement. 
 13.3 Secured Party’s delay in exercising, partial exercise of, or failure to exercise any of its remedies or rights does not waive Secured
Party’s rights to subsequently 

 
exercise those remedies or rights. Secured Party’s waiver of any default does not waive any other default by any Debtor. Secured Party’s waiver of
any right in this Agreement or of any default is binding only if it is in writing. Secured Party may remedy any default without waiving it. 
 13.4 If Secured Party sells any of the Collateral on credit, Debtors will be credited only with payments actually made by the purchaser and received by Secured Party for application to the indebtedness of the purchaser. If the
purchaser fails to pay for the Collateral, Secured Party may resell the Collateral and Debtors will be credited with the proceeds of the sale. 
 13.5 Each Debtor shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient to pay all Obligations, including any attorneys’ fees and other expenses incurred by the
Secured Party to collect such deficiency. 
 13.6 If Secured Party purchases any of the Collateral being sold, Secured Party may pay
for the Collateral by crediting the purchase price against the Obligations. 
 13.7 Secured Party has no obligation to marshal any
assets in favor of or against any Debtor, any of the Obligations, or any other obligation owned to Secured Party by any Debtor or any other person. 
 13.8 If the Collateral is sold after default, recitals in the bill of sale or transfer will be prima facie evidence of their truth and all prerequisites to the sale specified by this Agreement and by law will be presumed satisfied.

 14. Power of Attorney. 
 14.1 Appointment and Powers of Secured Party. Each Debtor hereby irrevocably constitutes and appoints the Secured Party and any officer or agent thereof, with full power of substitution, as its true and lawful
attorneys-in-fact with full irrevocable power and authority in the place and stead of such Debtor or in the Secured Party’s own name, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action and to
execute any and all documents and instruments that may be necessary or useful to accomplish the purposes of this Agreement and the other Loan Documents and, without limiting the generality of the foregoing, hereby gives said attorneys the power and
right, on behalf of such Debtor, without notice to or assent by such Debtor, to do the following: upon the occurrence and during the continuance of an Event of Default, generally to sell, transfer, pledge, make any agreement with respect to or
otherwise dispose of or deal with any of the Collateral in such manner as is consistent with the Uniform Commercial Code of the State and as fully and completely as though the Secured Party were the absolute owner thereof for all purposes, and to
do, at the Debtor’s expense, at any time, or from time to time, all acts and things which the Secured Party deems necessary or useful to protect, preserve or realize upon the Collateral and the Secured Party’s security interest therein, in
order to effect the intent of this Agreement, all at least as fully and effectively as the Debtor might do, including, without limitation, (i) the filing and prosecuting of registration and transfer applications with the appropriate federal,
state, local or other agencies or authorities with respect to trademarks, copyrights, and patentable inventions 

 
and processes, (ii) upon written notice to the Debtors, the exercise of voting rights with respect to voting securities, which rights may be exercised,
if the Secured Party so elects, with a view to causing the liquidation of assets of the issuer of any such securities, (iii) change the mailing address of any Debtor, open a post office box on behalf of any Debtor, open mail for any Debtor, and
ask, demand, collect, give acquittances and receipts for, take possession of, endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, and notices in
connection with any property of any Debtor; (iv) effect any repairs to any asset of any Debtor, or continue to obtain any insurance and pay all or any part of the premiums therefor and costs thereof, and make, settle and adjust all claims under
such policies of insurance, and make all determinations and decisions with respect to such policies; (v) pay or discharge any taxes, liens, security interests, or other encumbrances levied or placed on or threatened against any Debtor or its
property; (vi) defend any suit, action or proceeding brought against any Debtor if such Debtor does not defend such suit, action or proceeding or if Secured Party reasonably believes that such Debtor is not pursuing such defense in a manner
that will maximize the recovery to Secured Party, and settle, compromise or adjust any suit, action, or proceeding described above and, in connection therewith, give such discharges or releases as Secured Party may deem reasonably appropriate;
(vii) file or prosecute any claim, litigation, suit or proceeding in any court of competent jurisdiction or before any arbitrator, or take any other action otherwise deemed appropriate by Secured Party for the purpose of collecting any and all
such moneys due to any Debtor whenever payable and to enforce any other right in respect of such Debtor’s property; (viii) cause the certified public accountants then engaged by Debtors to prepare and deliver to Secured Party at any time
and from time to time, promptly upon Secured Party’s request, the following reports: (1) a reconciliation of all accounts; (2) an aging of all accounts, (3) trial balances, (4) test verifications of such accounts as Secured
Party may request, and (5) the results of each physical verification of inventory if any; (vix) communicate in its own name with any party to any contract with regard to the assignment of the right, title and interest of any Debtor in and
under the contracts and other matters relating thereto; (vx) to file such financing statements with respect to this Agreement, with or without Debtors’ signatures, or to file a photocopy of this Agreement in substitution for a financing
statement, as the Secured Party may deem appropriate and to execute in Debtors’ name such financing statements and amendments thereto and continuation statements which may require Debtors’ signatures; and (vxi) execute, in connection
with sale provided for in any Loan Document, any endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral and to otherwise direct such sale or resale, all as though Secured Party were the absolute owner
of the property of Debtors for all purposes, and to do, at Secured Party’s option and Debtors’ expense, at any time or from time to time, all acts and other things that Secured Party reasonably deems necessary to perfect, preserve, or
realize upon Debtors’ property or assets and Secured Party’s Liens thereon, all as fully and effectively as Debtors might do. 
 14.2 Ratification by Debtors. To the extent permitted by law, the Debtors hereby ratify all that said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with an interest
and is irrevocable. 
 14.3 No Duty on Secured Party. The powers conferred on the Secured Party hereunder are solely to protect
its interests in the Collateral and shall not impose any duty upon it 

 
to exercise any such powers. The Secured Party shall be accountable only for the amounts that it actually receives as a result of the exercise of such
powers, and neither it nor any of its affiliates, officers, directors, employees, agents or representatives shall be responsible to any Debtor for any act or failure to act (except for the Secured Party’s own gross negligence or willful
misconduct as determined by a court of competent jurisdiction), nor for any punitive, exemplary, indirect or consequential damages. 
 15.
Standards for Exercising Rights and Remedies. To the extent that applicable law imposes duties on the Secured Party to exercise remedies in a commercially reasonable manner, the Debtors acknowledge and agree that it is not commercially
unreasonable for the Secured Party: 
 15.1 to fail to incur expenses reasonably deemed significant by the Secured Party to prepare
Collateral for disposition or otherwise to fail to complete raw material or work in process into finished goods or other finished products for disposition; 
 15.2 to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection
or disposition of Collateral to be collected or disposed of; 
 15.3 to fail to exercise collection remedies against account debtors
or other persons obligated on Collateral or to fail to remove liens or encumbrances on or any adverse claims against Collateral; 
 15.4
to exercise collection remedies against account debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists; 
 15.5 to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a
specialized nature; 
 15.6 to contact other persons, whether or not in the same business as the Debtors, for expressions of interest
in acquiring all or any portion of the Collateral; 
 15.7 to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature; 
 15.8 to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets; 
 15.9 to dispose of assets in wholesale rather than retail markets; 
 15.10 to disclaim disposition warranties; 

 15.11 to purchase insurance or credit enhancements to insure the Secured Party against risks of
loss, collection or disposition of Collateral or to provide to the Secured Party a guaranteed return from the collection or disposition of Collateral; or 
 15.12 to the extent deemed appropriate by the Secured Party, to obtain the services of other brokers, investment bankers, consultants, and other professionals to assist the Secured Party in the collection or
disposition of any of the Collateral. The Debtors acknowledge that the purpose of this Section 15 is to provide non-exhaustive indications of what actions or omissions by the Secured Party would fulfill the Secured Party’s duties under the
Uniform Commercial Code or other law of the State or any other relevant jurisdiction in the Secured Party’s exercise of remedies against the Collateral and that other actions or omissions by the Secured Party shall not be deemed to fail to
fulfill such duties solely on account of not being indicated in this Section 15. Without limitation upon the foregoing, nothing contained in this Section 15 shall be construed to grant any rights to the Debtors or to impose any duties on
the Secured Party that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section 15. 
 16. No Waiver by Secured Party, etc. The Secured Party shall not be deemed to have waived any of its rights or remedies in respect of the Obligations or the Collateral unless such waiver shall be in writing and signed by the
Secured Party. No delay or omission on the part of the Secured Party in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any one occasion shall not be construed as a bar to or
waiver of any right or remedy on any future occasion. All rights and remedies of the Secured Party with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or papers, shall be cumulative and may be
exercised singularly, alternatively, successively or concurrently at such time or at such times as the Secured Party deems expedient. 
 17. Suretyship Waivers by Debtors. The Debtors waive demand, notice, protest, notice of acceptance of this Agreement, notice of credit extended, Collateral received or delivered or other action taken in reliance hereon and all
other demands and notices of any description. With respect to both the Obligations and the Collateral, the Debtors assent to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of or
failure to perfect any security interest in any Collateral, to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial payment thereon and the settlement, compromising or adjusting of any thereof,
all in such manner and at such time or times as the Secured Party may deem advisable. The Secured Party shall have no duty as to the collection or protection of the Collateral or any income therefrom, the preservation of rights against prior
parties, or the preservation of any rights pertaining thereto beyond the safe custody thereof as set forth in Section 11.2. The Debtors further waive any and all other suretyship defenses. 
 18. Marshalling. The Secured Party shall not be required to marshal any present or future collateral security (including but not limited to
the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in 

 
respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or
arising. To the extent that it lawfully may, the Debtors hereby agree that they will not invoke any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the Secured Party’s rights and remedies
under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the
extent that it lawfully may, the Debtors hereby irrevocably waive the benefits of all such laws. 
 19. Proceeds of Dispositions;
Expenses. The Debtors shall pay to the Secured Party on demand any and all expenses, including reasonable attorneys’ fees and disbursements, incurred or paid by the Secured Party in protection, preserving or enforcing the Secured
Party’s rights and remedies under or in respect of any of the Obligations or any of the Collateral. After deducting all of said expenses, the residue of any proceeds of collection or sale or other disposition of the Collateral shall, to the
extent actually received in cash, be applied to the payment of the Obligations in such order or preference as the Secured Party may determine, proper allowance and provision being made for any Obligations not then due. Upon the final payment and
satisfaction in full in cash of all of the Obligations and after making any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial Code of the State, any excess shall be returned to the Debtors. In the absence of final
payment and satisfaction in full in cash of all of the Obligations, the Debtors shall remain liable for any deficiency. 
 20.
Governing Law; Consent to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 
 21. Waiver of Judicial Procedural Matters. DEBTORS HEREBY EXPRESSLY AND UNCONDITIONALLY WAIVE, IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS, ANY
AND EVERY RIGHT IT MAY HAVE TO (I) INJUNCTIVE RELIEF, (II) A TRIAL BY JURY, (III) INTERPOSE ANY COUNTERCLAIM THEREIN (OTHER THAN A COMPULSORY COUNTERCLAIM) AND (IV) HAVE THE SAME CONSOLIDATED WITH ANY OTHER OR SEPARATE SUIT,
ACTION OR PROCEEDING. Nothing herein contained shall prevent or prohibit Debtors from instituting or maintaining a separate action against Secured Party with respect to any asserted claim. 
 22. Headings. The headings of each section of this Agreement are for convenience only and shall not define or limit the provisions thereof.

 23. Binding on Successors and Permitted Assigns. This Agreement and all rights and obligations hereunder shall be binding
upon the Debtors and their respective successors and assigns (including any debtor-in-possession on behalf of any Debtor), and shall inure to the benefit of the Secured Party and its successors and assigns. Assignment of any part of the Obligations
and Secured Party’s delivery of any part of the Collateral will fully discharge Secured Party from responsibility for that part of the Collateral. If such an assignment is made, 

 
Debtors will render performance under this Agreement to the assignee. Debtors waive and will not assert against any assignee any claims, defenses or setoffs
that Debtors could assert against Secured Party except defenses that cannot be waived. All representations, warranties, and obligations are joint and several as to Debtors. No Debtor may assign, sell or otherwise transfer any interest in or
obligations under this Agreement. 
 24. Severability. If any term of this Agreement shall be held to be invalid, illegal or
unenforceable, the validity of all other terms hereof shall in no way be affected thereby, and this Agreement shall be construed and be enforceable as if such invalid, illegal or unenforceable term had not been included herein. The Debtors
acknowledge receipt of a copy of this Agreement. 
 25. Notice. Notice is reasonable if it is mailed, postage prepaid, to
Debtors at Debtors’ Mailing Address at least ten (10) days before any public sale or ten (10) days before the time when the Collateral may be otherwise disposed of without further notice to Debtors. 
 26. Lien Status. This security interest will neither affect nor be affected by any other security for any of the Obligations.
Neither extensions of any of the Obligations nor releases of any of the Collateral will affect the priority or validity of this security interest. 
 27. Amendment. This Agreement may be amended only by an instrument in writing signed by Secured Party and Debtors. 
 28. Interest. Interest on the Obligations secured by this Agreement will not exceed the maximum amount of nonusurious interest that may be contracted for, take, reserved, charged or received under law. Any interest in excess
of that maximum amount will be credited on the principal of the Obligations or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess will be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the Obligations or, if the principal of the Obligations has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the
Obligations. 
 29. No Prohibited Liens. In no event may this Agreement create a lien prohibited by law. 
 30. Subordination. The Secured Party hereby acknowledges that the First Lien Lender has been granted Liens upon
certain Assets of Debtors to secure the Senior Indebtedness. The Liens of the First Lien Lender on such Assets, to the extent such Liens secure Senior Indebtedness, are and shall be senior and prior in right to the Liens of the Secured Party on the
Assets, and such Liens of the Secured Party on the Assets are and shall be junior and subordinate to the Liens of the First Lien Lender, to the extent such Liens secure Senior Indebtedness. Except with respect to proceeds of such Assets securing the
Senior Indebtedness, this Agreement shall not subordinate payment of the Loans. 
 [Signature Pages Follow] 

 IN WITNESS WHEREOF, intending to be legally bound, the Debtors have caused this Agreement to be duly
executed as of the date first above written. 
  

					
		 	DEBTORS:
		
		 	NORTH AMERICAN TECHNOLOGIES GROUP, INC., a Delaware corporation
			
	Attest:	 		 	
			
	 Joe B. Dorman
	 	By:	 	 /s/

			
		 	Name:	 	 D. Patrick Long

			
		 	Its:	 	 Chief Executive Officer

			
		 	Federal ID #:	 	 33-0041789

		
		 	TIETEK TECHNOLOGIES, INC., a Texas corporation
			
	Attest:	 		 	
			
	 Joe B. Dorman
	 	By:	 	 /s/

			
		 	Name:	 	 D. Patrick Long

			
		 	Its:	 	 Chief Executive Officer

			
		 	Federal ID #:	 	  

					
		 	TIETEK LLC, a Delaware limited liability company
		
	Attest:	 	
			
	 Joe B. Dorman
	 	By:	 	 /s/

			
		 	Name:	 	 D. Patrick Long

			
		 	Title:	 	 Chief Executive Officer

			
		 	Federal ID #:	 	 52-2440303

		
		 	SECURED PARTY:
		
		 	OPUS 5949 LLC (formerly known as TIE INVESTORS, LLC), a Texas limited liability Company
			
		 	By:	 	SAMMONS VPC, INC., a Delaware corporation, Manager
			
	Attest: Yolanda Brown	 	By:	 	 /s/

			
		 	Name:	 	Heather Kreager
			
		 	Title:	 	Sr. Vice President

 SCHEDULE I 
 TO SECOND LIEN SECURITY AGREEMENT 
 Liens 
  

							
	 Debtor
	  	 Creditor
	  	 Second Collateral
	  	 Financing Statement No.

	Tietek LLC	  	Citicapital Commercial Leasing Corporation	  	 1 Bobcat Skid Steer Loader S130 S/N 529217923
 Alarm Pkg.
68” Lo-Pro Bkt. Exhaust Purifier Kits
 1 Bobcat Skid Steer Loader S130 S/N 529217929
 Alarm Pkg. 68” Lo-Pro Bkt.
 Exhaust Purifier Kits
	  	2007 2119682
				
	Tie Tek, LLC	  	Citicapital Commercial Corporation	  	1 Bobcat Sweepers S/N 714418363 60” Sweeper	  	07-0026598805
				
	TieTek, LLC	  	NMHG Financial Services, Inc.	  	All of the equipment nor or hereafter leased by Lessor to Lessee; and all accessions, additions, replacements, and substitutions	  	07-0034187010
				
	TieTek, LLC	  	Wells Fargo Equipment Finance, Inc.	  	One (1) Terek Lift w/48” forks S/N: GTH1008A13394	  	08-0032763241
				
	Tietek LLC	  	Opus 5949 LLC	  	All general intangibles, including without limitation, all patents (issued and applied for), and copyrights, trademarks, trade names, licenses, trade secrets an processes, an other intellectual
property	  	2007 1008753
				
	 TieTek LLC
 TieTek Technologies, Inc.
 North American Technologies Group, Inc.
	  	Opus 5949 LLC	  	 All Assets
 All Assets
 All Assets except NATK Excluded Assets
	  	 2009 2580972
  
 2009 2586672

 SCHEDULE II 
 TO SECOND LIEN SECURITY AGREEMENT 
 Commercial Tort Claims 
 NONE.

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