Document:

EXHIBIT 4.28

                             SUBSCRIPTION AGREEMENT

      SUBSCRIPTION  AGREEMENT  (this  "Agreement")  made as of the last date set
forth on the signature page hereof between American  Technologies Group, Inc., a
Nevada corporation (the "Company"), and the undersigned (the "Subscriber").

                              W I T N E S S E T H:

      WHEREAS,  the Company is conducting a private  offering  (the  "Offering")
consisting  of up to  25,000  shares  (the  "Shares")  of  Series E  Convertible
Preferred Stock ("Preferred Stock"),  pursuant to Section 4(2) of the Securities
Act of 1933,  as  amended  (the  "Securities  Act")  and  Rule  506  promulgated
thereunder; and

      WHEREAS,  the  Subscriber  desires to  purchase  that number of Shares set
forth on the signature page hereof on the terms and conditions  hereinafter  set
forth.

      NOW,   THEREFORE,   in  consideration  of  the  premises  and  the  mutual
representations  and  covenants  hereinafter  set forth,  the parties  hereto do
hereby agree as follows:

I. SUBSCRIPTION FOR SHARES AND REPRESENTATIONS BY SUBSCRIBER

      1.1  The  Subscriber  hereby  irrevocably  subscribes  for and  agrees  to
purchase from the Company such number of Shares,  and the Company agrees to sell
to the Subscriber as is set forth on the signature  page hereof,  at a per share
price equal to $100.00 per Share. The purchase price is payable by wire transfer
of immediately available funds to:

                                    Account Name:  ________________
                                    Account #      ________________
                                    Swift Code     ________________
                                    ABA #          ________________
                                    Bank           ________________
                                    Address:       ________________
                                                   ________________

      1.2 The Subscriber  recognizes  that the purchase of the Shares involves a
high  degree of risk  including,  but not  limited  to, the  following:  (a) the
Company has limited operating history and requires substantial funds in addition
to the  proceeds of the  Offering;  (b) an  investment  in the Company is highly
speculative,  and  only  investors  who can  afford  the  loss of  their  entire
investment  should  consider  investing  in the Company and the Shares;  (c) the
Subscriber may not be able to liquidate its investment;  (d)  transferability of
the  Shares  is  extremely  limited;  (e) in the  event  of a  disposition,  the
Subscriber could sustain the loss of its entire investment;  (f) the Company has
not paid any dividends  since its inception and does not  anticipate  paying any
dividends;  and (g) the Company may issue  additional  securities  in the future
which have  rights  and  preferences  that are senior to those of the  Preferred
Stock.  Without  limiting the  generality  of the  representations  set forth in
Section 1.5 below,  the Subscriber  represents that the Subscriber has carefully
reviewed the Company's  filings made pursuant to the Securities  Exchange Act of
1934, as amended (the "34 Act Filings").

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      1.3 The  Subscriber  represents  that  the  Subscriber  is an  "accredited
investor" as such term is defined in Rule 501 of Regulation D  ("Regulation  D")
promulgated under the Securities Act, as indicated by the Subscriber's responses
to the  questions  contained in Article VII hereof,  and that the  Subscriber is
able to bear the economic risk of an investment in the Shares.

      1.4  The  Subscriber  hereby  acknowledges  and  represents  that  (a) the
Subscriber has knowledge and experience in business and financial matters, prior
investment  experience,  including investment in securities that are non-listed,
unregistered  and/or  not traded on a national  securities  exchange  nor on the
National  Association  of  Securities  Dealers,   Inc.  (the  "NASD")  automated
quotation  system  ("NASDAQ"),  or the Subscriber has employed the services of a
"purchaser  representative"  (as defined in Rule 501 of Regulation D),  attorney
and/or  accountant to read all of the documents  furnished or made  available by
the Company both to the Subscriber and to all other prospective investors in the
Shares  to  evaluate  the  merits  and  risks  of  such  an  investment  on  the
Subscriber's behalf; (b) the Subscriber recognizes the highly speculative nature
of this  investment;  and (c) the  Subscriber  is able to bear the economic risk
that the Subscriber hereby assumes.

      1.5 The Subscriber hereby acknowledges  receipt and careful review of this
Agreement, the 34 Act Filings, including all exhibits thereto, and any documents
which  may  have  been  made  available   upon  request  as  reflected   therein
(collectively  referred to as the "Offering  Materials")  and hereby  represents
that the  Subscriber  has been furnished by the Company during the course of the
Offering with all information regarding the Company, the terms and conditions of
the Offering and any additional information that the Subscriber has requested or
desired to know,  and has been afforded the  opportunity to ask questions of and
receive answers from duly authorized  officers or other  representatives  of the
Company concerning the Company and the terms and conditions of the Offering.

      1.6 (a) In making the decision to invest in the Shares the  Subscriber has
relied  solely upon the  information  provided  by the  Company in the  Offering
Materials.  To the extent  necessary,  the Subscriber  has retained,  at its own
expense,   and  relied  upon  appropriate   professional  advice  regarding  the
investment,  tax and legal merits and  consequences  of this  Agreement  and the
purchase  of the Shares  hereunder.  The  Subscriber  disclaims  reliance on any
statements made or information provided by any person or entity in the course of
Subscriber's  consideration  of an  investment  in the  Shares  other  than  the
Offering Materials.

            (b) The Subscriber  represents that (i) the Subscriber was contacted
regarding  the sale of the  Shares by the  Company  (or an  authorized  agent or
representative  thereof)  with  whom  the  Subscriber  had a  prior  substantial
pre-existing relationship and (ii) no Shares were offered or sold to it by means
of any form of general  solicitation or general  advertising,  and in connection
therewith,  the  Subscriber  did not (A)  receive or review  any  advertisement,
article,  notice or other communication  published in a newspaper or magazine or
similar media or broadcast over television or radio,  whether closed circuit, or
generally  available;  or (B) attend any seminar  meeting or  industry  investor
conference  whose attendees were invited by any general  solicitation or general
advertising.

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      1.7 The Subscriber hereby represents that the Subscriber, either by reason
of  the  Subscriber's  business  or  financial  experience  or the  business  or
financial  experience  of  the  Subscriber's   professional  advisors  (who  are
unaffiliated with and not compensated by the Company or any affiliate or selling
agent of the Company,  directly or indirectly),  has the capacity to protect the
Subscriber's  own  interests in  connection  with the  transaction  contemplated
hereby.

      1.8 The  Subscriber  hereby  acknowledges  that the  Offering has not been
reviewed by the United States Securities and Exchange Commission (the "SEC") nor
any state regulatory  authority since the Offering is intended to be exempt from
the  registration  requirements of Section 5 of the Securities Act,  pursuant to
Regulation  D.  The  Subscriber  understands  that  the  Shares  have  not  been
registered  under the Securities Act or under any state securities or "blue sky"
laws and agrees not to sell, pledge,  assign or otherwise transfer or dispose of
the Shares unless they are  registered  under the  Securities  Act and under any
applicable  state securities or "blue sky" laws or unless an exemption from such
registration is available.

      1.9 The Subscriber  understands  that the Shares have not been  registered
under the Securities Act by reason of a claimed  exemption  under the provisions
of the Securities Act that depends,  in part, upon the  Subscriber's  investment
intention.  In this  connection,  the  Subscriber  hereby  represents  that  the
Subscriber  is  purchasing  the  Shares for the  Subscriber's  own  account  for
investment and not with a view toward the resale or distribution to others.  The
Subscriber,  if an  entity,  further  represents  that it was not formed for the
purpose of purchasing the Shares.

      1.10 The  Subscriber  understands  that the  common  stock  issuable  upon
conversion  of the  Preferred  Stock (the "Common  Shares") is quoted on the OTC
Bulletin  Board and that there is a limited  market for the Common  Shares.  The
Subscriber  understands  that even if a public  market  develops  for the Common
Shares,  Rule 144 ("Rule 144") promulgated under the Securities Act requires for
non-affiliates,  among other conditions,  a one-year holding period prior to the
resale (in limited  amounts) of  securities  acquired in a  non-public  offering
without  having to satisfy the  registration  requirements  under the Securities
Act. The  Subscriber  understands  and hereby  acknowledges  that the Company is
under no  obligation to register any of the Shares under the  Securities  Act or
any state  securities  or "blue  sky" laws other than as set forth in Article V.
The Subscriber  understands and acknowledges that presently the Company does not
have shares of common stock to issue upon conversion of the Preferred Stock and,
accordingly, the Company will be required to obtain shareholder approval to file
an amendment to its  certificate  of  incorporation  increasing  its  authorized
shares of common stock.

      1.11  The  Subscriber  consents  to  the  placement  of a  legend  on  any
certificate  or other  document  evidencing  the Shares and any shares of common
stock issuable upon  conversion of the Preferred Stock that such securities have
not been  registered  under the Securities Act or any state  securities or "blue
sky" laws and setting forth or referring to the restrictions on  transferability
and sale thereof  contained in this Agreement.  The Subscriber is aware that the
Company  will make a notation in its  appropriate  records  with  respect to the
restrictions on the  transferability  of such Shares. The legend to be placed on
each certificate shall be in form substantially similar to the following:

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      "THE  SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN  REGISTERED  UNDER THE
      UNITED STATES  SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY STATE
      SECURITIES OR "BLUE SKY LAWS," AND MAY NOT BE OFFERED, SOLD,  TRANSFERRED,
      ASSIGNED, PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
      UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED  UNDER SUCH ACT, OR
      UNLESS  THE  COMPANY  HAS  RECEIVED  AN  OPINION  OF  COUNSEL,  REASONABLY
      SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
      REQUIRED."

      1.12  The  Subscriber  understands  that  the  Company  will  review  this
Agreement and is hereby given  authority by the Subscriber to call  Subscriber's
bank or place of  employment or otherwise  review the financial  standing of the
Subscriber;  and it is further agreed that the Company,  at its sole discretion,
reserves the unrestricted right,  without further  documentation or agreement on
the part of the  Subscriber,  to  reject or limit  any  subscription,  to accept
subscriptions  for fractional Shares and to close the Offering to the Subscriber
at any time and that the Company will issue stop  transfer  instructions  to its
transfer agent with respect to such Shares.

      1.13 The Subscriber  hereby  represents that the address of the Subscriber
furnished  by  Subscriber  on the  signature  page  hereof  is the  Subscriber's
principal  residence if Subscriber  is an  individual or its principal  business
address if it is a corporation or other entity.

      1.14 The  Subscriber  represents  that the  Subscriber  has full power and
authority  (corporate,  statutory  and  otherwise)  to execute and deliver  this
Agreement  and to purchase the Shares.  This  Agreement  constitutes  the legal,
valid  and  binding  obligation  of  the  Subscriber,  enforceable  against  the
Subscriber in accordance with its terms.

      1.15 If the Subscriber is a corporation,  partnership,  limited  liability
company,  trust,  employee benefit plan,  individual  retirement account,  Keogh
Plan, or other  tax-exempt  entity,  it is authorized and qualified to invest in
the Company and the person  signing this  Agreement on behalf of such entity has
been duly authorized by such entity to do so.

      1.16  The  Subscriber  acknowledges  that  if he or  she  is a  Registered
Representative  of an NASD member firm, he or she must give such firm the notice
required  by the  NASD's  Rules  of Fair  Practice,  receipt  of  which  must be
acknowledged by such firm in Section 7.4 below.

      1.17 The Subscriber acknowledges that at such time, if ever, as the Shares
are  registered  (as such term is defined  in  Article V  hereof),  sales of the
Shares will be subject to state securities laws.

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      1.18 (a) The  Subscriber  agrees  not to issue any public  statement  with
respect to the Subscriber's  investment or proposed investment in the Company or
the terms of any agreement or covenant  between them and the Company without the
Company's  prior written  consent,  except such  disclosures  as may be required
under applicable law or under any applicable order, rule or regulation.

            (b) The Company  agrees not to disclose the names,  addresses or any
other  information about the Subscribers,  except as required by law;  provided,
that the Company may use the name of the  Subscriber  for any offering or in any
registration  statement  filed  pursuant to Article V in which the  Subscriber's
shares are included.

      1.19  The  Subscriber  agrees  to hold  the  Company  and  its  directors,
officers,  employees,  affiliates,  controlling  persons  and  agents  and their
respective  heirs,  representatives,  successors  and  assigns  harmless  and to
indemnify them against all liabilities, costs and expenses incurred by them as a
result  of (a) any sale or  distribution  of the  Shares  by the  Subscriber  in
violation of the Securities Act or any applicable state securities or "blue sky"
laws;  or (b) any false  representation  or warranty or any breach or failure by
the  Subscriber  to comply  with any  covenant  made by the  Subscriber  in this
Agreement  (including  the  Confidential  Investor  Questionnaire  contained  in
Article VII herein) or any other document  furnished by the Subscriber to any of
the foregoing in connection with this transaction.

II. REPRESENTATIONS BY AND COVENANTS OF THE COMPANY

      The Company hereby represents and warrants to the Subscriber that:

      2.1  Organization,  Good  Standing  and  Qualification.  The  Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada and has full corporate power and authority to conduct its
business.

      2.2  Capitalization   and  Voting  Rights.  The  authorized,   issued  and
outstanding  capital  stock of the Company is as set forth in the 34 Act Reports
and all issued and outstanding  shares of the Company are validly issued,  fully
paid  and  nonassessable.  Except  as set  forth in the 34 Act  Reports  and the
securities  to be issued to Laurus  Master Fund Ltd.,  there are no  outstanding
options,  warrants,  agreements,  convertible  securities,  preemptive rights or
other rights to subscribe  for or to purchase any shares of capital stock of the
Company.  Except as set forth in the 34 Act Reports and as otherwise required by
law, there are no restrictions  upon the voting or transfer of any of the shares
of  capital  stock  of  the  Company  pursuant  to  the  Company's  Articles  of
Incorporation  (the  "Articles  of  Incorporation"),  Bylaws or other  governing
documents or any agreement or other  instruments to which the Company is a party
or by which the Company is bound.

      2.3  Authorization;  Enforceability.  The Company has all corporate right,
power  and  authority  to  enter  into  this  Agreement  and to  consummate  the
transactions  contemplated  hereby.  All  corporate  action  on the  part of the
Company,  its directors  and  stockholders  necessary for the (a)  authorization
execution,  delivery and  performance of this Agreement by the Company;  and (b)
authorization, sale, issuance and delivery of the Shares contemplated hereby and
the  performance  of the Company's  obligations  hereunder has been taken.  This
Agreement has been duly executed and delivered by the Company and  constitutes a
legal,  valid and binding  obligation  of the Company,  enforceable  against the
Company in  accordance  with its terms,  subject to laws of general  application
relating to  bankruptcy,  insolvency  and the relief of debtors and rules of law
governing specific  performance,  injunctive relief or other equitable remedies,
and to limitations of public policy. The Shares,  when issued and fully paid for
in accordance  with the terms of this Agreement,  will be validly issued,  fully
paid and nonassessable.  The issuance and sale of the Shares contemplated hereby
will not give rise to any preemptive rights or rights of first refusal on behalf
of any person which have not been waived in connection with this offering.

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      2.4 No Conflict; Governmental Consents.

            (a) The execution and delivery by the Company of this  Agreement and
the consummation of the transactions  contemplated hereby will not result in the
violation  of  any  material  law,  statute,  rule,  regulation,   order,  writ,
injunction,  judgment or decree of any court or governmental  authority to or by
which the Company is bound, or of any provision of the Articles of Incorporation
or Bylaws of the Company,  and will not conflict  with,  or result in a material
breach or violation of, any of the terms or provisions  of, or constitute  (with
due notice or lapse of time or both) a default under, any lease, loan agreement,
mortgage,  security agreement,  trust indenture or other agreement or instrument
to which the  Company  is a party or by which it is bound or to which any of its
properties or assets is subject, nor result in the creation or imposition of any
lien upon any of the properties or assets of the Company.

            (b) No  consent,  approval,  authorization  or  other  order  of any
governmental  authority is required to be obtained by the Company in  connection
with the  authorization,  execution  and delivery of this  Agreement or with the
authorization,  issue and sale of the  Shares,  except  such  filings  as may be
required  to be made with the SEC,  NASD,  NASDAQ  and with any state or foreign
blue sky or securities regulatory authority.

      2.5  Licenses.  Except as otherwise  set forth in the 34 Act Reports,  the
Company has sufficient licenses,  permits and other governmental  authorizations
currently  required for the conduct of its  business or ownership of  properties
and is in all material respects in compliance therewith.

      2.6  Litigation.  Except as set forth in the 34 Act  Reports,  the Company
knows of no pending or threatened legal or governmental  proceedings against the
Company  which  could  materially  adversely  affect  the  business,   property,
financial  condition  or  operations  of the  Company  or which  materially  and
adversely  questions the validity of this Agreement or any agreements related to
the transactions  contemplated  hereby or the right of the Company to enter into
any of such agreements, or to consummate the transactions contemplated hereby or
thereby.  The Company is not a party or subject to the  provisions of any order,
writ,  injunction,  judgment  or  decree of any  court or  government  agency or
instrumentality which could materially adversely affect the business,  property,
financial  condition or  operations  of the Company.  There is no action,  suit,
proceeding or  investigation  by the Company  currently  pending in any court or
before any arbitrator or that the Company intends to initiate.

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      2.7 Disclosure.  The information set forth in the Offering Materials as of
the date hereof  contains no untrue  statement  of a material  fact nor omits to
state a  material  fact  necessary  in order to make  the  statements  contained
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.

      2.8 Investment Company.  The Company is not an "investment company" within
the meaning of such term under the  Investment  Company Act of 1940, as amended,
and the rules and regulations of the SEC thereunder.

      2.9  Brokers.  Neither  the  Company  nor any of the  Company's  officers,
directors,  employees  or  stockholders  has  employed  or engaged any broker or
finder in connection with the transactions contemplated by this Agreement and no
fee or other  compensation  is or will be due and owing to any  broker,  finder,
underwriter,   placement   agent  or  similar  person  in  connection  with  the
transactions  contemplated  by this  Agreement.  The Company is not party to any
agreement,  arrangement  or  understanding  whereby any person has an  exclusive
right to raise funds and/or place or purchase any debt or equity  securities for
or on behalf of the Company.

      2.10 Intellectual Property.

            (a) To the best of its  knowledge,  the  Company  owns or  possesses
sufficient legal rights to all patents, trademarks,  service marks, trade names,
copyrights,  trade secrets,  licenses,  information and other proprietary rights
and  processes  necessary  for its  business as now  conducted  and as presently
proposed  to be  conducted,  without  any known  infringement  of the  rights of
others.  Except  as  disclosed  in the 34 Act  Reports,  there  are no  material
outstanding  options,  licenses  or  agreements  of  any  kind  relating  to the
foregoing  proprietary  rights,  nor is the  Company  bound by or a party to any
material  options,  licenses  or  agreements  of any kind  with  respect  to the
patents,  trademarks,  service marks,  trade names,  copyrights,  trade secrets,
licenses,  information and other  proprietary  rights and processes of any other
person or entity  other  than  such  licenses  or  agreements  arising  from the
purchase of "off the shelf" or standard  products.  The Company has not received
any  written  communications  alleging  that the  Company  has  violated  or, by
conducting its business as presently proposed to be conducted, would violate any
of the patents,  trademarks,  service  marks,  trade names,  copyrights or trade
secrets or other proprietary rights of any other person or entity.

            (b) Except as disclosed  in the 34 Act  Reports,  the Company is not
aware that any of its  employees  is  obligated  under any  contract  (including
licenses, covenants or commitments of any nature) or other agreement, or subject
to any judgment,  decree or order of any court or  administrative  agency,  that
would interfere with their duties to the Company or that would conflict with the
Company's business as presently conducted.

            (c) Neither the  execution nor delivery of this  Agreement,  nor the
carrying on of the Company's  business by the employees of the Company,  nor the
conduct of the Company's business as presently conducted, will, to the Company's
knowledge,  conflict  with or  result in a breach of the  terms,  conditions  or
provisions  of, or  constitute  a  default  under,  any  contract,  covenant  or
instrument under which any employee is now obligated.

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            (d) To the Company's knowledge,  no employee of the Company, nor any
consultant with whom the Company has contracted,  is in violation of any term of
any  employment  contract,   proprietary  information  agreement  or  any  other
agreement  relating to the right of any such individual to be employed by, or to
contract  with, the Company  because of the nature of the business  conducted by
the Company;  and to the Company's  knowledge  the  continued  employment by the
Company of its present employees, and the performance of the Company's contracts
with its independent  contractors,  will not result in any such  violation.  The
Company has not received any written notice alleging that any such violation has
occurred.  Except as described in the 34 Act Reports, no employee of the Company
has been  granted  the right to  continued  employment  by the Company or to any
compensation following termination of employment with the Company except for any
of the same which would not have a material  adverse  effect on the  business of
the Company. The Company is not aware that any officer, key employee or group of
employees  intends to terminate his, her or their  employment  with the Company,
nor does the Company have a present intention to terminate the employment of any
officer, key employee or group of employees.

      2.11 Title to Properties and Assets;  Liens,  Etc.  Except as described in
the 34 Act Reports,  the Company has good and marketable title to its properties
and assets,  including the  properties  and assets  reflected in the most recent
balance sheet included in the Company's financial statements,  and good title to
its leasehold estates, in each case subject to no mortgage, pledge, lien, lease,
encumbrance or charge,  other than (a) those resulting from taxes which have not
yet  become  delinquent;  (b) liens  and  encumbrances  which do not  materially
detract from the value of the property subject thereto or materially  impair the
operations  of the  Company;  and (c) those  that have  otherwise  arisen in the
ordinary  course of  business.  The Company is in  compliance  with all material
terms of each lease to which it is a party or is otherwise bound.

      2.12  Obligations  to Related  Parties.  Except as described in the 34 Act
Reports,  and, there are no  obligations of the Company to officers,  directors,
stockholders,  or employees of the Company  other than (a) for payment of salary
or other  compensation for services  rendered,  (b) reimbursement for reasonable
expenses  incurred on behalf of the Company and (c) for other standard  employee
benefits  made  generally  available to all  employees  (including  stock option
agreements  outstanding  under any stock  option  plan  approved by the Board of
Directors of the Company). Except as may be disclosed in the 34 Act Reports, the
Company  is not a  guarantor  or  indemnitor  of any  indebtedness  of any other
person, firm or corporation.

III. TERMS OF SUBSCRIPTION

      3.1 All  funds  shall  be  submitted  directly  to the  Company's  account
identified in Section 1.1 hereof.

      3.2  Certificates  representing  the Series E Convertible  Preferred Stock
purchased  by the  Subscriber  pursuant to this  Agreement  will be prepared for
delivery to the  Subscriber  within 15 business  days  following  the closing at
which such purchase takes place.  The Subscriber  hereby  authorizes and directs
the Company to deliver the  certificates  representing  the Series E Convertible
Preferred Stock purchased by the Subscriber  pursuant to this Agreement directly
to the Subscriber's  residential or business address  indicated on the signature
page hereto.

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IV. CONDITIONS TO OBLIGATIONS OF THE SUBSCRIBERS

      4.1 The  Subscriber's  obligation to purchase the Shares at the closing at
which such purchase is to be  consummated  is subject to the  fulfillment  on or
prior to such  closing of the  following  conditions,  which  conditions  may be
waived at the option of each Subscriber to the extent permitted by law:

            (a) Covenants. All covenants, agreements and conditions contained in
this  Agreement  to be  performed by the Company on or prior to the date of such
closing shall have been performed or complied with in all material respects.

            (b) No Legal  Order  Pending.  There shall not then be in effect any
legal or other order enjoining or restraining the  transactions  contemplated by
this Agreement.

            (c) No Law Prohibiting or Restricting  Such Sale. There shall not be
in effect any law, rule or regulation  prohibiting or  restricting  such sale or
requiring  any  consent or  approval  of any  person,  which shall not have been
obtained, to issue the Shares (except as otherwise provided in this Agreement).

V. REGISTRATION RIGHTS

      5.1 Definitions. As used in this Agreement, the following terms shall have
the following meanings.

            (a) The term  "Holder"  shall mean any  person  owning or having the
right to acquire Registrable Securities or any permitted transferee of a Holder.

            (b) The terms "register," "registered" and "registration" refer to a
registration  effected  by  preparing  and filing a  registration  statement  or
similar  document in compliance  with the Securities Act, and the declaration or
order of effectiveness of such registration statement or document.

            (c) The term  "Registrable  Securities" shall mean the common shares
of stock  issuable upon  conversion of the Series E Preferred  Stock;  provided,
however, that securities shall only be treated as Registrable  Securities if and
only  for so  long  as  they  (A)  have  not  been  disposed  of  pursuant  to a
registration  statement declared effective by the SEC; (B) have not been sold in
a transaction exempt from the registration and prospectus delivery  requirements
of the Securities Act so that all transfer  restrictions and restrictive legends
with respect  thereto are removed upon the  consummation  of such sale;  (C) are
held by a Holder or a permitted transferee of a Holder pursuant to Section 5.10;
and (D) may not be  disposed  of under  Rule  144(k)  under the  Securities  Act
without restriction.

            (d) the term "Filing Date" means,  with respect to the  Registration
Statement required to be filed hereunder, the 90th day following the date of the
first closing under this Agreement.

                                       9
<PAGE>

            (e)  the  term  "Effectiveness  Date"  means,  with  respect  to the
Registration  Statement  required to be filed hereunder,  the 120th calendar day
following the date of the first closing under this Agreement.

      5.2 Registration.

            (a) On or prior to the Filing Date,  the Company  shall  prepare and
file with the Commission the Registration  Statement  covering the resale of all
of the Registrable  Securities for an offering to be made on a continuous  basis
pursuant to Rule 415. The Registration  Statement required hereunder shall be on
Form S-3 (except if the Company is not then  eligible to register for resale the
Registrable  Securities on Form S-3, in which case the Registration  shall be on
another appropriate form in accordance  herewith).  Subject to the terms of this
Agreement,  the  Company  shall use its best  efforts to cause the  Registration
Statement  to be  declared  effective  under the  Securities  Act as promptly as
possible  after  the  filing  thereof,  but in any  event  not  later  than  the
Effectiveness  Date,  and shall use its best  efforts  to keep the  Registration
Statement  continuously  effective  under the Securities Act until the date when
all Registrable  Securities covered by the Registration Statement have been sold
or may be sold without volume restrictions pursuant to Rule 144(k) as determined
by the  counsel to the  Company  pursuant  to a written  opinion  letter to such
effect,  addressed  and  acceptable  to the  Company's  transfer  agent  and the
affected Holders (the "Effectiveness Period").

            (b) If: (i) a Registration Statement is not filed on or prior to the
Filing Date or declared effective by the Effectiveness Date, then in addition to
any other rights the  Subscribers  may have hereunder or under  applicable  law,
then, on each such date and on each monthly  anniversary of each such date until
the registration is filed, the Company shall pay to each Subscriber an amount in
cash or stock, at the Company's election,  as partial liquidated damages and not
as a  penalty,  equal  to  1.0% of the  aggregate  purchase  price  paid by such
Subscriber  pursuant to this Agreement for any Registrable  Securities then held
by such Subscriber.

      5.3  Registration  Procedures.  Whenever  required under this Article V to
include Registrable Securities in a Company registration statement,  the Company
shall, as expeditiously as reasonably possible:

            (a) Use best  efforts to (i) cause such  registration  statement  to
become effective, and (ii) cause such registration statement to remain effective
until the  earliest  to occur of (A) such  date as the  sellers  of  Registrable
Securities (the "Selling Holders") have completed the distribution  described in
the  registration  statement  and (B) such  time  that  all of such  Registrable
Securities  are no longer,  by reason of Rule 144(k) under the  Securities  Act,
required to be registered for the sale thereof by such Holders. The Company will
also use its best efforts to, during the period that such registration statement
is required to be maintained hereunder,  file such post-effective amendments and
supplements  thereto as may be required by the  Securities Act and the rules and
regulations  thereunder or otherwise to ensure that the  registration  statement
does not contain any untrue  statement of material  fact or omit to state a fact
required to be stated  therein or  necessary  to make the  statements  contained
therein,  in  light  of  the  circumstances  under  which  they  are  made,  not
misleading; provided, however, that if applicable rules under the Securities Act
governing the obligation to file a post-effective  amendment permits, in lieu of
filing a post-effective  amendment that (i) includes any prospectus  required by
Section  10(a)(3)  of the  Securities  Act or  (ii)  reflects  facts  or  events
representing a material or fundamental  change in the  information  set forth in
the registration statement, the Company may incorporate by reference information
required to be included in (i) and (ii) above to the extent such  information is
contained  in  periodic  reports  filed  pursuant  to Section 13 or 15(d) of the
Exchange Act in the registration statement.

                                       10
<PAGE>

            (b) Prepare and file with the SEC such amendments and supplements to
such  registration  statement,  and the prospectus  used in connection with such
registration statement, as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

            (c) Make available for inspection upon reasonable  notice during the
Company's  regular  business  hours  by each  Selling  Holder,  any  underwriter
participating in any distribution pursuant to such registration  statement,  and
any  attorney,  accountant  or other agent  retained by such  Selling  Holder or
underwriter,  all financial and other records, pertinent corporate documents and
properties  of the Company,  and cause the  Company's  officers,  directors  and
employees  to supply all  information  reasonably  requested by any such Selling
Holder,  underwriter,  attorney,  accountant  or agent in  connection  with such
registration statement.

            (d) Furnish to the Selling Holders such numbers of copies of a final
prospectus,  in conformity with the requirements of the Securities Act, and such
other  documents  as they may  reasonably  request  in order to  facilitate  the
disposition of Registrable Securities owned by them.

            (e) Use best efforts to register and qualify the securities  covered
by such registration statement under such other federal or state securities laws
of such  jurisdictions as shall be reasonably  requested by the Selling Holders;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith  or as a  condition  thereto to qualify  to do  business  or to file a
general  consent to service  of  process  in any such  states or  jurisdictions,
unless the Company is already subject to service in such jurisdiction and except
as may be required by the Securities Act.

      5.4  Furnish  Information.  It  shall  be a  condition  precedent  to  the
obligation  of the Company to take any action  pursuant  to this  Article V with
respect to the  Registrable  Securities  of any Selling  Holder that such Holder
shall  furnish  to the  Company  such  information  regarding  the  Holder,  the
Registrable   Securities  held  by  the  Holder,  and  the  intended  method  of
disposition of such securities as shall be reasonably required by the Company to
effect the registration of such Holder's Registrable Securities.

      5.5 Registration Expenses. The Company shall bear and pay all Registration
Expenses incurred in connection with any  registration,  filing or qualification
of Registrable  Securities with respect to registrations pursuant to Section 5.2
for each  Subscriber,  but  excluding  underwriting  discounts  and  commissions
relating to Registrable  Securities and excluding any professional fees or costs
of accounting, financial or legal advisors to any of the Subscribers.

                                       11
<PAGE>

      5.6 Underwriting  Requirements.  In connection with any offering involving
an underwriting of shares of the Company's  capital stock, the Company shall not
be  required  under  Section  5.2 to  include  any of the  Holders'  Registrable
Securities in such underwriting unless they accept the terms of the underwriting
as agreed upon  between the Company and the  underwriters  selected by it (or by
other  persons  entitled  to  select  the  underwriters),  and then only in such
quantity  as the  underwriters  determine  in  their  sole  discretion  will not
jeopardize  the success of the offering by the  Company.  If the total amount of
securities,  including Registrable  Securities,  requested by stockholders to be
included in such offering  exceeds the amount of  securities  sold other than by
the  Company  that the  underwriters  determine  in  their  sole  discretion  is
compatible with the success of the offering,  then the Company shall be required
to  include  in the  offering  only that  number of such  securities,  including
Registrable   Securities,   which  the  underwriters  determine  in  their  sole
discretion  will not jeopardize  the success of the offering (the  securities so
included to be apportioned pro rata among the selling stockholders  according to
the total amount of  securities  entitled to be included  therein  owned by each
selling  stockholder or in such other proportions as shall mutually be agreed to
by such  selling  stockholders).  For  purposes of the  preceding  parenthetical
concerning  apportionment,  for  any  selling  stockholder  who is a  holder  of
Registrable  Securities  and is a  partnership  or  corporation,  the  partners,
retired  partners and  stockholders  of such  holder,  or the estates and family
members of any such partners and retired partners and any trusts for the benefit
of any of  the  foregoing  persons  shall  be  deemed  to be a  single  "selling
stockholder,"  and  any  pro-rata   reduction  with  respect  to  such  "selling
stockholder"  shall be based  upon  the  aggregate  amount  of  shares  carrying
registration  rights  owned by all  entities  and  individuals  included in such
"selling stockholder," as defined in this sentence.

      5.7 Delay of  Registration.  No Holder  shall  have any right to obtain or
seek an injunction  restraining or otherwise  delaying any such  registration as
the  result  of  any   controversy   that  might  arise  with   respect  to  the
interpretation or implementation of this Article.

      5.8  Indemnification.  In the event that any  Registrable  Securities  are
included in a registration statement under this Article V:

            (a) To the extent  permitted by law, the Company will  indemnify and
hold harmless each Holder,  any  underwriter  (as defined in the Securities Act)
for such Holder and each person, if any, who controls such Holder or underwriter
within the  meaning of the  Securities  Act or the  Exchange  Act,  against  any
losses,  claims,  damages,  or liabilities  (joint or several) to which they may
become  subject under the Securities  Act, or the Exchange Act,  insofar as such
losses,  claims,  damages,  or liabilities (or actions in respect thereof) arise
out  of or  are  based  upon  any  of the  following  statements,  omissions  or
violations (collectively a "Violation"):  (i) any untrue statement of a material
fact  contained  in  such  registration  statement,  including  any  preliminary
prospectus  or  final  prospectus   contained   therein  or  any  amendments  or
supplements thereto, (ii) the omission to state therein a material fact required
to  be  stated  therein,  or  necessary  to  make  the  statements  therein  not
misleading,  or (iii) any  violation by the Company of the  Securities  Act, the
Exchange Act, or any rule or regulation promulgated under the Securities Act, or
the Exchange Act, and the Company will pay to each such Holder,  underwriter  or
controlling person, as incurred, any legal or other expenses reasonably incurred
by them in connection  with  investigating  or defending  any such loss,  claim,
damage,  liability, or action;  provided,  however, that the indemnity agreement
contained in this Section  5.8(a) shall not apply to amounts paid in  settlement
of any such loss,  claim,  damage,  liability,  or action if such  settlement is
effected  without  the  consent  of the  Company  (which  consent  shall  not be
unreasonably withheld), nor shall the Company be liable in any such case for any
such loss, claim, damage,  liability, or action to the extent that it arises out
of or is based upon a Violation  which occurs in reliance upon and in conformity
with written  information  furnished  expressly for use in connection  with such
registration by any such Holder, underwriter or controlling person.

                                       12
<PAGE>

            (b) To the  extent  permitted  by  law,  each  Selling  Holder  will
indemnify  and hold  harmless the Company,  each of its  directors,  each of its
officers,  each person,  if any, who controls the Company  within the meaning of
the Securities Act, any underwriter, any other Holder selling securities in such
registration  statement and any  controlling  person of any such  underwriter or
other Holder,  against any losses,  claims,  damages,  or liabilities  (joint or
several) to which any of the  foregoing  persons may become  subject,  under the
Securities Act, or the Exchange Act, insofar as such losses, claims, damages, or
liabilities  (or actions in respect  thereto) arise out of or are based upon any
Violation,  in each  case to the  extent  (and  only to the  extent)  that  such
Violation  occurs in reliance  upon and in conformity  with written  information
furnished by such Holder expressly for use in connection with such registration;
and each  such  Holder  will  pay,  as  incurred,  any  legal or other  expenses
reasonably  incurred by any person  intended to be indemnified  pursuant to this
Section  5.8(b),  in connection with  investigating  or defending any such loss,
claim,  damage,  liability,  or action;  provided,  however,  that the indemnity
agreement  contained in this  Section  5.8(b) shall not apply to amounts paid in
settlement  of any  such  loss,  claim,  damage,  liability  or  action  if such
settlement  is effected  without the consent of the Holder,  which consent shall
not be unreasonably  withheld;  provided,  further,  that, in no event shall any
indemnity  under this Section 5.8(b) exceed the greater of the cash value of the
(i)  gross  proceeds  from the  Offering  received  by such  Holder or (ii) such
Holder's  investment  pursuant to this  Agreement as set forth on the  signature
page attached hereto.

            (c)  Promptly  after  receipt  by an  indemnified  party  under this
Section  5.8  of  notice  of  the  commencement  of any  action  (including  any
governmental  action),  such  indemnified  party  shall,  if a claim in  respect
thereof is to be made  against any  indemnifying  party under this  Section 5.8,
deliver to the indemnifying  party a written notice of the commencement  thereof
and the  indemnifying  party shall have the right to participate in, and, to the
extent the indemnifying  party so desires,  jointly with any other  indemnifying
party similarly notified, to assume the defense thereof with counsel selected by
the  indemnifying  party and approved by the  indemnified  party (whose approval
shall not be  unreasonably  withheld);  provided,  however,  that an indemnified
party  (together  with all other  indemnified  parties which may be  represented
without  conflict by one  counsel)  shall have the right to retain one  separate
counsel,  with the fees and expenses to be paid by the  indemnifying  party,  if
representation  of  such  indemnified  party  by  the  counsel  retained  by the
indemnifying  party would be inappropriate due to actual or potential  differing
interests between such indemnified party and any other party represented by such
counsel  in such  proceeding.  The  failure  to  deliver  written  notice to the
indemnifying  party within a  reasonable  time of the  commencement  of any such
action, if prejudicial to its ability to defend such action,  shall relieve such
indemnifying  party of any liability to the indemnified party under this Section
5.8, but the omission so to deliver  written  notice to the  indemnifying  party
will not relieve it of any liability that it may have to any  indemnified  party
otherwise than under this Section 5.8.

                                       13
<PAGE>

            (d) If the indemnification  provided for in this Section 5.8 is held
by a court of competent  jurisdiction to be unavailable to an indemnified  party
with  respect to any loss,  liability,  claim,  damage,  or expense  referred to
therein,  then the indemnifying  party, in lieu of indemnifying such indemnified
party  hereunder,  shall  contribute  to the  amount  paid  or  payable  by such
indemnified party as a result of such loss, liability, claim, damage, or expense
in such  proportion  as is  appropriate  to reflect  the  relative  fault of the
indemnifying  party on the one hand and of the indemnified party on the other in
connection  with  the  statements  or  omissions  that  resulted  in such  loss,
liability,  claim,  damage,  or expense as well as any other relevant  equitable
considerations.  The  relative  fault  of  the  indemnifying  party  and  of the
indemnified  party shall be  determined  by reference  to,  among other  things,
whether the untrue or alleged untrue statement of a material fact or the alleged
omission  to state a  material  fact  relates  to  information  supplied  by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge,  access to information,  and  opportSharey to correct or prevent such
statement or omission.

            (e) Notwithstanding the foregoing, to the extent that the provisions
on  indemnification  and  contribution  contained in an  underwriting  agreement
entered into in connection with an underwritten  public offering are in conflict
with the foregoing  provisions,  the provisions in such  underwriting  agreement
shall control.

            (f) The  obligations  of the Company and Holders  under this Section
5.8 shall survive the completion of the Offering.

      5.9 Reports Under  Securities  Exchange Act of 1934. With a view to making
available  to the  Holders  the  benefits  of Rule  144 and  any  other  rule or
regulation of the SEC that may at any time permit a Holder to sell securities of
the Company to the public without  registration or pursuant to a registration on
Form S-3 (or other applicable form), the Company agrees to:

            (a) file with the SEC all  reports and other  documents  required of
the Company under the Securities Act and the Exchange Act; and

            (b)  furnish  to  any  Holder,  so  long  as  the  Holder  owns  any
Registrable  Securities,  forthwith  upon  request (i) a copy of the most recent
annual or quarterly  report of the Company and such other  reports and documents
so filed by the Company,  and (ii) such other  information  as may be reasonably
requested  in  availing  any Holder of any rule or  regulation  of the SEC which
permits the selling of any such securities  without  registration or pursuant to
such form.

      5.10  Permitted  Transferees.  The rights to cause the Company to register
Registrable  Securities granted to the Holders by the Company under this Article
V may be  assigned  in full by a Holder in  connection  with a transfer  by such
Holder of its  Registrable  Securities  if: (a) such Holder gives prior  written
notice to the Company;  (b) such transferee  agrees to comply with the terms and
provisions of this Agreement;  (c) such transfer is otherwise in compliance with
this Agreement;  and (d) such transfer is otherwise  effected in accordance with
applicable  securities  laws.  Except as specifically  permitted by this Section
5.10, the rights of a Holder with respect to  Registrable  Securities as set out
herein shall not be transferable to any other Person, and any attempted transfer
shall cause all rights of such Holder therein to be forfeited.

                                       14
<PAGE>

      5.11 Termination of Registration Rights The right of any Holder to request
inclusion  in any  registration  pursuant to Section 5.2 shall  terminate if all
shares of  Registrable  Securities  held by such Holder may  immediately be sold
under Rule 144(k).

VI. MISCELLANEOUS

      6.1 Any  notice or other  communication  given  hereunder  shall be deemed
sufficient  if in writing  and sent by  registered  or  certified  mail,  return
receipt  requested,  or  delivered  by hand against  written  receipt  therefor,
addressed as follows:

      if to the Company, to it at:

      American Technologies Group, Inc.

      _______________________________

      _______________________________

      Attn:  ________________________

      With a copy to (which shall not constitute notice):

      Sichenzia Ross Friedman Ference LLP
      1065 Avenue of the Americas
      New York, NY 10018
      Attn:  Gregory Sichenzia, Esq.

      if to  the  Subscriber,  to  the  Subscriber's  address  indicated  on the
      signature page of this Agreement.

Notices  shall be deemed to have been given or delivered on the date of mailing,
except notices of change of address, which shall be deemed to have been given or
delivered when received.

      6.2 Except as  otherwise  provided  herein,  this  Agreement  shall not be
changed,  modified  or amended  except by a writing  signed by the parties to be
charged,  and this  Agreement may not be  discharged  except by  performance  in
accordance with its terms or by a writing signed by the party to be charged.

      6.3 Subject to the  provisions of Section 5.10,  this  Agreement  shall be
binding  upon and  inure  to the  benefit  of the  parties  hereto  and to their
respective heirs, legal representatives,  successors and assigns. This Agreement
sets forth the entire agreement and understanding  between the parties as to the
subject  matter  hereof  and  merges  and  supersedes  all  prior   discussions,
agreements and understandings of any and every nature among them.

      6.4 Upon the execution and delivery of this  Agreement by the  Subscriber,
this Agreement shall become a binding  obligation of the Subscriber with respect
to the purchase of Shares as herein  provided,  subject,  however,  to the right
hereby  reserved  by the  Company to enter into the same  agreements  with other
subscribers and to add and/or delete other persons as subscribers.

                                       15
<PAGE>

      6.5  NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY
OF THE  PARTIES  HERETO,  THE  PARTIES  EXPRESSLY  AGREE  THAT ALL THE TERMS AND
PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK WITHOUT REGARD TO SUCH STATE'S  PRINCIPLES OF CONFLICTS
OF LAW. IN THE EVENT THAT A JUDICIAL PROCEEDING IS NECESSARY, THE SOLE FORUM FOR
RESOLVING  DISPUTES  ARISING OUT OF OR RELATING TO THIS  AGREEMENT IS THE COURTS
STATE OF NEW YORK IN AND FOR THE  COUNTY OF NEW YORK OR THE  FEDERAL  COURTS FOR
SUCH STATE AND COUNTY,  AND ALL RELATED  APPELLATE  COURTS,  THE PARTIES  HEREBY
IRREVOCABLY CONSENT TO THE JURISDICTION OF SUCH COURTS AND AGREE TO SAID VENUE.

      6.6 In order to discourage  frivolous claims the parties agree that unless
a  claimant  in  any  proceeding  arising  out of  this  Agreement  succeeds  in
establishing   his  claim  and  recovering  a  judgment  against  another  party
(regardless of whether such claimant  succeeds  against one of the other parties
to the  action),  then the other party  shall be  entitled to recover  from such
claimant all of its/their  reasonable legal costs and expenses  relating to such
proceeding and/or incurred in preparation therefor.

      6.7 The  holding  of any  provision  of this  Agreement  to be  invalid or
unenforceable  by a court of competent  jurisdiction  shall not affect any other
provision of this Agreement, which shall remain in full force and effect. If any
provision  of  this  Agreement  shall  be  declared  by  a  court  of  competent
jurisdiction  to be invalid,  illegal or incapable of being enforced in whole or
in part, such provision shall be interpreted so as to remain  enforceable to the
maximum  extent  permissible  consistent  with  applicable law and the remaining
conditions and provisions or portions thereof shall nevertheless  remain in full
force and  effect  and  enforceable  to the  extent  they are  valid,  legal and
enforceable, and no provisions shall be deemed dependent upon any other covenant
or provision unless so expressed herein.

      6.8 It is  agreed  that a  waiver  by  either  party  of a  breach  of any
provision of this Agreement shall not operate,  or be construed,  as a waiver of
any subsequent breach by that same party.

      6.9 The parties  agree to execute and deliver all such further  documents,
agreements  and  instruments  and take such other and  further  action as may be
necessary or appropriate to carry out the purposes and intent of this Agreement.

      6.10 This  Agreement may be executed in two or more  counterparts  each of
which shall be deemed an original,  but all of which shall  together  constitute
one and the same instrument.

      6.11  Nothing in this  Agreement  shall  create or be deemed to create any
rights in any  person or entity  not a party to this  Agreement,  except for the
holders of Registrable Securities.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       16
<PAGE>

VII. CONFIDENTIAL INVESTOR QUESTIONNAIRE

      7.1 The Subscriber represents and warrants that he, she or it comes within
one category marked below, and that for any category  marked,  he, she or it has
truthfully  set  forth,  where  applicable,  the  factual  basis or  reason  the
Subscriber  comes  within that  category.  ALL  INFORMATION  IN RESPONSE TO THIS
SECTION WILL BE KEPT STRICTLY  CONFIDENTIAL.  The undersigned  agrees to furnish
any additional  information which the Company deems necessary in order to verify
the answers set forth below.

Category A __     The   undersigned   is  an  individual   (not  a  partnership,
                  corporation,  etc.) whose  individual net worth,  or joint net
                  worth with his or her spouse, presently exceeds $1,000,000.

                  Explanation.  In calculating  net worth you may include equity
                  in personal property and real estate, including your principal
                  residence, cash, short-term investments, stock and securities.
                  Equity in personal property and real estate should be based on
                  the fair market  value of such  property  less debt secured by
                  such property.

Category B __     The   undersigned   is  an  individual   (not  a  partnership,
                  corporation,  etc.) who had an income in excess of $200,000 in
                  each of the two most recent years, or joint income with his or
                  her spouse in excess of  $300,000  in each of those  years (in
                  each case including foreign income, tax exempt income and full
                  amount of capital gains and losses but excluding any income of
                  other family members and any unrealized capital  appreciation)
                  and has a reasonable  expectation  of reaching the same income
                  level in the current year.

Category C __     The  undersigned  is a director  or  executive  officer of the
                  Company which is issuing and selling the Shares.

Category D __     The  undersigned  is a bank;  a savings and loan  association;
                  insurance company;  registered investment company;  registered
                  business   development   company;   licensed   small  business
                  investment  company ("SBIC");  or employee benefit plan within
                  the  meaning  of  Title 1 of  ERISA  and  (a)  the  investment
                  decision is made by a plan  fiduciary  which is either a bank,
                  savings and loan association,  insurance company or registered
                  investment advisor, or (b) the plan has total assets in excess
                  of $5,000,000  or (c) is a self directed plan with  investment
                  decisions   made  solely  by  persons   that  are   accredited
                  investors. (describe entity)

Category E __     The undersigned is a private business  development  company as
                  defined in section  202(a)(22) of the Investment  Advisors Act
                  of 1940. (describe entity)

                  ______________________________________________________________

                  ______________________________________________________________

                                       17
<PAGE>

Category F __     The   undersigned  is  either  a   corporation,   partnership,
                  Massachusetts  business  trust,  or  non-profit   organization
                  within  the  meaning  of  Section  501(c)(3)  of the  Internal
                  Revenue Code, in each case not formed for the specific purpose
                  of  acquiring  the Shares  and with total  assets in excess of
                  $5,000,000. (describe entity)

                  ______________________________________________________________

                  ______________________________________________________________

Category G __     The  undersigned  is a trust  with  total  assets in excess of
                  $5,000,000,  not formed for the specific  purpose of acquiring
                  the Shares, where the purchase is directed by a "sophisticated
                  investor"  as defined in  Regulation  506(b)(2)(ii)  under the
                  Act.

Category H __     The undersigned is an entity (other than a trust) in which all
                  of the equity owners are "accredited  investors" within one or
                  more of the above  categories.  If relying upon this  Category
                  alone, each equity owner must complete a separate copy of this
                  Agreement. (describe entity)

                  ______________________________________________________________

                  ______________________________________________________________

Category I __     The undersigned is not within any of the categories  above and
                  is therefore not an accredited investor.

                  The undersigned  agrees that the  undersigned  will notify the
                  Company  at any time on or prior to the  closing  in the event
                  that the  representations  and  warranties  in this  Agreement
                  shall cease to be true, accurate and complete.

      7.2 SUITABILITY (please answer each question)

      (a) For an individual Subscriber, please describe your current employment,
including the company by which you are employed and its principal business:
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________

      (b) For an individual Subscriber,  please describe any college or graduate
degrees held by you:
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________

      (c) For all Subscribers, please list types of prior investments:
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________

                                       18
<PAGE>

      (d) For all  Subscribers,  please state whether you have  participated  in
other private placements before:

                   YES_______                         NO_______

      (e) If your  answer  to  question  (d) above was  "YES",  please  indicate
frequency of such prior participation in private placements of:

                                                     Public or Private Companies
                    Public           Private         with no, or insignificant,
                    Companies        Companies       assets and operations
                    ---------        ---------       ---------------------

Frequently          _______________  _______________ ________________________
Occasionally        _______________  _______________ ________________________
Never               _______________  _______________ ________________________

      (f) For individual Subscribers, do you expect your current level of income
to significantly decrease in the foreseeable future:

                   YES_______                         NO_______

      (g) For trust, corporate, partnership and other institutional Subscribers,
do you expect your total  assets to  significantly  decrease in the  foreseeable
future:

                   YES_______                         NO_______

      (h) For all Subscribers,  do you have any other  investments or contingent
liabilities which you reasonably  anticipate could cause you to need sudden cash
requirements in excess of cash readily available to you:

                   YES_______                         NO_______

      (i) For all  Subscribers,  are you familiar  with the risk aspects and the
non-liquidity  of  investments  such as the  securities  for  which  you seek to
subscribe?

                   YES_______                         NO_______

      (j) For all  Subscribers,  do you understand that there is no guarantee of
financial  return on this  investment  and that you run the risk of losing  your
entire investment?

                   YES_______                         NO_______

      7.3 MANNER IN WHICH TITLE IS TO BE HELD. (circle one)

          (a) Individual Ownership
          (b) CommSharey Property
          (c) Joint Tenant with Right of
              Survivorship (both parties
              must sign)
          (d) Partnership*
          (e) Tenants in Common

                                       19
<PAGE>

          (f) Company*
          (g) Trust*
          (h) Other*

      *If  Securities  are  being  subscribed  for by an  entity,  the  attached
Certificate of Signatory must also be completed.

      7.4 NASD AFFILIATION.

Are you affiliated or associated with an NASD member firm (please check one):

Yes _________              No __________

If Yes, please describe:

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

*If Subscriber is a Registered Representative with an NASD member firm, have the
following acknowledgment signed by the appropriate party:

The undersigned NASD member firm acknowledges  receipt of the notice required by
Article 3, Sections 28(a) and (b) of the Rules of Fair Practice.

__________________________________
Name of NASD Member Firm

By: ______________________________
         Authorized Officer

Date: ____________________________

      7.5 The undersigned is informed of the  significance to the Company of the
foregoing  representations  and answers  contained in the Confidential  Investor
Questionnaire  contained in this Article VII and such answers have been provided
under the assumption that the Company will rely on them.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       20
<PAGE>

23

NUMBER OF SHARES _________ X $100.00  = $_________ (the "Purchase Price")

___________________________________     ________________________________________
Signature                               Signature (if purchasing jointly)

___________________________________     ________________________________________
Name Typed or Printed                   Name Typed or Printed

___________________________________     ________________________________________
Title (if Subscriber is an Entity)      Title (if Subscriber is an Entity)

___________________________________     ________________________________________
Entity Name (if applicable)             Entity Name (if applicable

___________________________________     ________________________________________

___________________________________     ________________________________________
Address                                 Address

___________________________________     ________________________________________
City, State and Zip Code                City, State and Zip Code

___________________________________     ________________________________________
Telephone-Business                      Telephone-Business

___________________________________     ________________________________________
Telephone-Residence                     Telephone-Residence

___________________________________     ________________________________________
Facsimile-Business                      Facsimile-Business

___________________________________     ________________________________________
Facsimile-Residence                     Facsimile-Residence

___________________________________     ________________________________________
Tax ID # or  Social  Security  #        Tax ID # or  Social  Security  #

Name in which securities should be issued: ________________________________

Dated: _________________, 2005

      This   Subscription   Agreement   is   agreed  to  and   accepted   as  of
________________ , 2005.

                                            AMERICAN TECHNOLOGIES GROUP, INC.

                                            By:_______________________________
                                            Name:  Dr. Gary Fromm
                                            Title: Chief Executive Officer

                                       21
<PAGE>

                            CERTIFICATE OF SIGNATORY

                       (To be completed if Securities are
                       being subscribed for by an entity)

I,   ____________________________,   am  the   ____________________________   of
__________________________________________ (the "Entity").

I certify that I am empowered  and duly  authorized by the Entity to execute and
carry out the terms of the  Subscription  Agreement and to purchase and hold the
shares of Series E Preferred  Stock,  and certify further that the  Subscription
Agreement  has been  duly and  validly  executed  on behalf  of the  Entity  and
constitutes a legal and binding obligation of the Entity.

IN WITNESS WHEREOF, I have set my hand this ________ day of ______________, 200_

                                            ___________________________________
                                            (Signature)

                                       22EXHIBIT 4.29

               CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS

                                       OF

                      SERIES E CONVERTIBLE PREFERRED STOCK

                                       OF

                        AMERICAN TECHNOLOGIES GROUP, INC.

                    (Pursuant to the Nevada Revised Statutes)

      American  Technologies  Group, Inc., a corporation  organized and existing
under the laws of the State of Nevada (the  "Company"),  hereby  certifies that,
pursuant to authority vested in the Board of Directors of the Company by Article
IV of the Articles of Incorporation of the Company, the following resolution was
adopted  as of  September  __,  2005 by the Board of  Directors  of the  Company
pursuant to the Nevada Revised Statutes:

      "RESOLVED that,  pursuant to authority vested in the Board of Directors of
the Company by Article IV of the Company's Articles of Incorporation, out of the
total authorized  number of 50,000,000  shares of its preferred stock, par value
$0.001 per share  ("Preferred  Stock"),  there shall be  designated  a Series of
25,000  shares  which shall be issued in and  constitute  a single  series to be
known as "Series E Convertible  Preferred Stock" (hereinafter called the "Series
E  Preferred  Stock").  The shares of Series E  Preferred  Stock have the voting
powers, designations,  preferences and other special rights, and qualifications,
limitations and restrictions thereof set forth below:

      1. Certain Definitions.

      As used in this Articles of Designations, Preferences and Rights of Series
E  Convertible  Preferred  Stock  of  American  Technologies  Group,  Inc.,  the
following terms shall have the respective meanings set forth below:

      "Affiliate",  as applied to any Person, means any other Person directly or
indirectly  controlling,  controlled  by, or under  common  control  with,  that
Person.  For  the  purposes  of  this  definition,  "control"  (including,  with
correlative meanings, the terms "controlling", "controlled by" and "under common
control  with"),  as applied to any Person,  means the  possession,  directly or
indirectly,  of the power to direct or cause the direction of the management and
policies of that Person,  whether through the ownership of voting  securities or
by contract or otherwise.

      "Common Stock" means the common stock,  $0.001 par value per share, of the
Company,  including  the  stock  into  which  the  Series E  Preferred  Stock is
convertible, and any securities into which the Common Stock may be reclassified.

                                       1
<PAGE>

      "Excluded  Stock" means (A) capital stock,  Options (as defined in Section
4E(1)) or  Convertible  Securities  (as  defined  in  Section  4E(1))  issued to
employees,  consultants,  officers or directors  of the Company  pursuant to any
stock or option plan duly adopted by a majority of the  non-employee  members of
the  Board of  Directors  of the  Company  or a  majority  of the  members  of a
committee of non-employee  directors established for such purpose, (B) shares of
Common Stock issued upon the  conversion  or exercise of Options or  Convertible
Securities  issued  prior to the date the  Series E  Preferred  Stock is issued,
provided that such securities  have not been amended since the date hereof,  (C)
capital stock or Convertible  Securities  issued to a lender in connection  with
the  provision of credit to the Company and (D) shares of Common Stock issued or
issuable by reason of a dividend, stock split or other distribution on shares of
Common Stock (but only to the extent that such a dividend, split or distribution
results  in an  adjustment  in  the  Conversion  Price  pursuant  to  the  other
provisions of this Series E Preferred Stock).

      "Person"  shall be construed in the broadest  sense and means and includes
any natural person, a partnership, a corporation,  an association, a joint stock
company,   a  limited  liability   company,   a  trust,  a  joint  venture,   an
unincorporated    organization    and   other   entity   or    governmental   or
quasi-governmental entity.

      "Series E Stated Value" means $100  (appropriately  adjusted for any stock
split,  reverse  stock  split,  stock  dividend  or  other  reclassification  or
combination of the Series E Preferred Stock occurring after the date hereof).

      "Subsidiary"  means any corporation,  association or other business entity
(i) at least 50% of the outstanding  voting  securities of which are at the time
owned or  controlled,  directly  or  indirectly,  by the  Company;  or (ii) with
respect to which the Company  possesses,  directly or  indirectly,  the power to
direct or cause the direction of the affairs or management of such Person.

      2. Dividends.

      Subject to the payment of  dividends  on the Series D Preferred  Stock and
the Series F Preferred  Stock,  in the event that the Company  shall at any time
pay a dividend  on the Common  Stock  (other than a dividend  payable  solely in
shares of Common  Stock) or any other  class or series of  capital  stock of the
Company  the  Company  shall,  at the same time,  pay to each holder of Series E
Preferred Stock a dividend equal to the dividend that would have been payable to
such  holder if the shares of Series E  Preferred  Stock held by such holder had
been  converted  into Common  Stock on the date of  determination  of holders of
Common Stock entitled to receive such dividends.

      3. Liquidation;  Redemption. Upon any liquidation,  dissolution or winding
up of the Company,  whether voluntary or involuntary,  the holders of the shares
of Series E  Preferred  Stock shall rank (i) senior to the holders of the Common
Stock and the  Series A  Preferred  Stock and  shall be  entitled  to be paid an
amount per share equal to the Series E Stated  Value plus any accrued and unpaid
dividends (the  "Liquidation  Preference") and (ii) junior to the holders of the
Series  D  Preferred  Stock  and the  Series F  Preferred  Stock.  If upon  such
liquidation,  dissolution  or winding up of the  Company,  whether  voluntary or
involuntary,  the  assets to be  distributed  among the  holders of the Series E
Preferred  Stock and any class or series of  capital  stock  ranking on a parity
with the Series E Preferred Stock as to such distributions shall be insufficient
to permit  payment to the holders of the Series E  Preferred  Stock and any such
class or series of capital stock of their respective  liquidation  amount,  then
the entire assets of the Company to be distributed shall be distributed pro rata
to the  holders  of Series E  Preferred  Stock and the  holders of such class or
series of capital stock ranking on a parity with the Series E Preferred Stock as
to such distributions according to the preferential amounts due thereon.

                                       2
<PAGE>

      4. Conversion.

            4A.  Right  to  Convert.   Subject  to  the  Company  authorizing  a
      sufficient  number of shares of Common Stock and effecting a reverse stock
      split  pursuant  to which  each  10,000  shares of Common  Stock  shall be
      reconstituted  as one share  and/or the Company  filing a  certificate  of
      amendment to the Company's  certificate  of  incorporation  increasing its
      authorized  shares of common  stock to  15,000,000,000  and subject to the
      terms and  conditions of this paragraph 4A, (A) the holder of any share or
      shares of Series E Preferred  Stock shall have the right, at its option at
      any time,  to convert and (B) the Series E Preferred  Stock shall  convert
      automatically  upon (i) the closing of a public  offering with a per share
      price of at least $.003 and gross proceeds of at least $10,000,000 or (ii)
      the  conversion  of a  majority  of the  outstanding  shares  of  Series E
      Preferred Stock,  into such number of fully paid and  nonassessable  whole
      shares of Common Stock as is obtained by multiplying  the number of shares
      of  Series  E  Preferred  Stock  so to be  converted  by  the  Liquidation
      Preference and dividing the result by the  conversion  price of $.0011 per
      share or, if there has been an adjustment of the conversion  price, by the
      conversion  price as last  adjusted and in effect at the date any share or
      shares of Series E Preferred Stock are  surrendered  for conversion  (such
      price,  or such price as last  adjusted,  being  referred to herein as the
      "Conversion  Price").  Holders shall effect  conversions  by providing the
      Company with the form of conversion  notice  attached hereto as Annex A (a
      "Notice of  Conversion").  Each  Notice of  Conversion  shall  specify the
      number of shares of Series E Preferred  Stock to be converted,  the number
      of shares of Preferred  Stock owned prior to the conversion at issue,  the
      number of  shares of Series E  Preferred  Stock  owned  subsequent  to the
      conversion  at  issue  and the  date on  which  such  conversion  is to be
      effected, which date may not be prior to the date the Holder delivers such
      Notice of Conversion to the Company by facsimile (the "Conversion  Date").
      If no  Conversion  Date  is  specified  in a  Notice  of  Conversion,  the
      Conversion  Date shall be the date that such Notice of  Conversion  to the
      Company is deemed delivered hereunder. .

            4B. Beneficial  Ownership  Limitation.  The Company shall not effect
      any conversion of the Series E Preferred  Stock,  and the holder shall not
      have the right to convert any  portion of the Series E Preferred  Stock to
      the  extent  that  after  giving  effect to such  conversion,  the  holder
      (together  with the holder's  affiliates),  as set forth on the applicable
      Notice of  Conversion,  would  beneficially  own in excess of 4.99% of the
      number of shares of the Common Stock outstanding  immediately after giving
      effect to such  conversion.  For purposes of the foregoing  sentence,  the
      number of shares of Common Stock  beneficially owned by the holder and its
      affiliates  shall  include the number of shares of Common  Stock  issuable
      upon  conversion of the Series E Preferred Stock with respect to which the

                                       3
<PAGE>

      determination of such sentence is being made, but shall exclude the number
      of shares of Common Stock which would be issuable  upon (A)  conversion of
      the  remaining,  nonconverted  Series E Stated Value of Series E Preferred
      Stock  beneficially  owned by the holder or any of its  affiliates and (B)
      exercise or conversion of the unexercised or  nonconverted  portion of any
      other  securities of the Company  subject to a limitation on conversion or
      exercise analogous to the limitation  contained herein  beneficially owned
      by the  holder  or  any of its  affiliates.  Except  as set  forth  in the
      preceding sentence,  for purposes of this Section 4B, beneficial ownership
      shall be calculated in accordance  with Section 13(d) of the Exchange Act.
      To the extent that the  limitation  contained  in this Section 4B applies,
      the  determination  of whether the Series E Preferred Stock is convertible
      (in relation to other  securities  owned by the holder  together  with any
      affiliates) and of which shares of Series E Preferred Stock is convertible
      shall be in the sole  discretion of such holder,  and the  submission of a
      Notice of Conversion shall be deemed to be such holder's  determination of
      whether  the  shares of Series E  Preferred  Stock  may be  converted  (in
      relation to other securities owned by such holder) and which shares of the
      Series E  Preferred  Stock is  convertible,  in each case  subject to such
      aggregate   percentage   limitations.   To  ensure  compliance  with  this
      restriction,  the holder will be deemed to  represent  to the Company each
      time it delivers a Notice of Conversion that such Notice of Conversion has
      not violated the  restrictions set forth in this paragraph and the Company
      shall  have no  obligation  to  verify or  confirm  the  accuracy  of such
      determination.  For purposes of this Section 4B, in determining the number
      of outstanding  shares of Common Stock,  the holder may rely on the number
      of  outstanding  shares of Common Stock as reflected in the most recent of
      the  following:  (A) the Company's most recent Form 10-QSB or Form 10-KSB,
      as the case may be, (B) a more recent public  announcement  by the Company
      or (C) any other  notice by the Company or the  Company's  transfer  agent
      setting forth the number of shares of Common Stock  outstanding.  Upon the
      written or oral  request  of the  holder,  the  Company  shall  within two
      trading  days  confirm  orally  and in writing to the holder the number of
      shares of Common  Stock  then  outstanding.  In any  case,  the  number of
      outstanding shares of Common Stock shall be determined after giving effect
      to the conversion or exercise of securities of the Company,  including the
      Series E Preferred  Stock, by the holder or its affiliates  since the date
      as of which  such  number  of  outstanding  shares  of  Common  Stock  was
      reported.  The  provisions  of this Section 4B may be waived by the holder
      upon,  at the election of the holder,  not less than 61 days' prior notice
      to the Company,  and the  provisions of this Section 4B shall  continue to
      apply  until  such 61st day (or such  later  date,  as  determined  by the
      holder, as may be specified in such notice of waiver).

            4C. Issuance of Certificates;  Time Conversion Effected. Within five
      business  days after the  optional  conversion  of the Series E  Preferred
      Stock  pursuant  to  Section  4A  and  surrender  of  the  certificate  or
      certificates for the share or shares of the Series E Preferred Stock being
      converted,  the Company shall issue and deliver, or cause to be issued and
      delivered, to the holder,  registered in such name or names as such holder
      may direct,  subject to compliance with applicable laws to the extent such
      designation  shall involve a transfer,  a certificate or certificates  for
      the number of whole shares of Common Stock issuable upon the conversion of
      such share or shares of Series E Preferred Stock.  Upon the effective date
      of any such conversion, the rights of the holder of the shares of Series E
      Preferred Stock being converted shall cease,  and the person or persons in
      whose name or names any certificate or  certificates  for shares of Common
      Stock  shall be  issuable  upon  such  conversion  shall be deemed to have
      become the holder or holders of record of the shares represented thereby.

                                       4
<PAGE>

            4D. Fractional Shares; Dividends;  Partial Conversion. No fractional
      shares shall be issued upon any conversion of the Series E Preferred Stock
      into Common  Stock,  and the number of shares of Common Stock to be issued
      shall be rounded down to the nearest  whole  share.  In case the number of
      shares of Series E  Preferred  Stock  represented  by the  certificate  or
      certificates  surrendered  pursuant to subsection 4A exceeds the number of
      shares  converted,  the Company  shall upon such  conversion,  execute and
      deliver  to the  holder  thereof  at the  expense  of the  Company,  a new
      certificate  for  the  number  of  shares  of  Series  E  Preferred  Stock
      represented by the certificate or certificates  surrendered  which are not
      to be converted.

            4E.  Adjustment of Conversion  Price.  If the Company shall issue or
      sell, or is, in  accordance  with  subsections  4E(1) through 4E(8) below,
      deemed  to have  issued or sold,  any  Additional  Shares of Common  Stock
      without  consideration  or for a  consideration  per  share  less than the
      Conversion Price in effect  immediately prior to the time of such issue or
      sale, then and in each such case (a "Trigger  Issuance") the then-existing
      Conversion  Price,  shall be  reduced,  as of the close of business on the
      effective date of the Trigger Issuance, to a price determined as follows:

            Adjusted Conversion Price = (A x B) + D
                                        -----------
                                           A + C

            where

            "A"  equals  the  number  of shares  of  Common  Stock  outstanding,
      including  Additional  Shares of Common Stock (as defined below) deemed to
      be issued hereunder, immediately preceding such Trigger Issuance;

            "B" equals the Conversion Price in effect immediately preceding such
      Trigger Issuance;

            "C" equals the number of Additional Shares of Common Stock issued or
      deemed issued hereunder as a result of the Trigger Issuance; and

            "D" equals the aggregate  consideration,  if any, received or deemed
      to be received by the Company upon such Trigger Issuance;

      For purposes of this  subsection 4E,  "Additional  Shares of Common Stock"
shall  mean all  shares of Common  Stock  issued by the  Company or deemed to be
issued pursuant to this subsection 4E, other than Excluded Stock.

                                       5
<PAGE>

      For purposes of this  subsection  4E, the  following  paragraphs  4E(1) to
4E(8) shall also be applicable:

            4E(1) Issuance of Rights or Options. In case at any time the Company
      shall in any manner grant  (directly  and not by assumption in a merger or
      otherwise)  any warrants or other rights to subscribe  for or to purchase,
      or any options for the purchase of,  Common Stock or any stock or security
      convertible into or exchangeable  for Common Stock (such warrants,  rights
      or options being called  "Options" and such  convertible  or  exchangeable
      stock or securities being called "Convertible  Securities") whether or not
      such  Options  or the right to convert or  exchange  any such  Convertible
      Securities are immediately exercisable,  and the price per share for which
      Common  Stock is issuable  upon the  exercise of such  Options or upon the
      conversion  or  exchange of such  Convertible  Securities  (determined  by
      dividing  (i)  the  sum  (which  sum  shall   constitute   the  applicable
      consideration)  of (x) the total amount, if any, received or receivable by
      the Company as  consideration  for the granting of such Options,  plus (y)
      the aggregate  amount of additional  consideration  payable to the Company
      upon the  exercise  of all such  Options,  plus  (z),  in the case of such
      Options which relate to Convertible  Securities,  the aggregate  amount of
      additional  consideration,  if any, payable upon the issue or sale of such
      Convertible  Securities  and upon the conversion or exchange  thereof,  by
      (ii) the total maximum  number of shares of Common Stock issuable upon the
      exercise of such  Options or upon the  conversion  or exchange of all such
      Convertible  Securities  issuable upon the exercise of such Options) shall
      be less than the Conversion Price in effect  immediately prior to the time
      of the granting of such Options, then the total number of shares of Common
      Stock  issuable  upon the exercise of such Options or upon  conversion  or
      exchange of the total amount of such Convertible  Securities issuable upon
      the exercise of such Options  shall be deemed to have been issued for such
      price per share as of the date of granting of such Options or the issuance
      of such  Convertible  Securities  and  thereafter  shall be  deemed  to be
      outstanding  for purposes of adjusting  the  Conversion  Price.  Except as
      otherwise  provided in subsection  4E(3),  no adjustment of the Conversion
      Price shall be made upon the actual  issue of such Common Stock or of such
      Convertible  Securities  upon  exercise of such Options or upon the actual
      issue of such Common Stock upon conversion or exchange of such Convertible
      Securities.

            4E(2) Issuance of Convertible Securities.  In case the Company shall
      in any  manner  issue  (directly  and not by  assumption  in a  merger  or
      otherwise) or sell any Convertible  Securities,  whether or not the rights
      to exchange or convert any such  Convertible  Securities  are  immediately
      exercisable,  and the price per share for which  Common  Stock is issuable
      upon such  conversion  or exchange  (determined  by  dividing  (i) the sum
      (which sum shall constitute the applicable consideration) of (x) the total
      amount  received or  receivable  by the Company as  consideration  for the
      issue  or sale of such  Convertible  Securities,  plus  (y) the  aggregate
      amount of additional  consideration,  if any,  payable to the Company upon
      the conversion or exchange thereof,  by (ii) the total number of shares of
      Common  Stock  issuable  upon  the  conversion  or  exchange  of all  such
      Convertible  Securities) shall be less than the Conversion Price in effect
      immediately  prior to the  time of such  issue  or  sale,  then the  total
      maximum  number of shares of Common  Stock  issuable  upon  conversion  or
      exchange of all such  Convertible  Securities shall be deemed to have been
      issued  for such  price  per  share as of the date of the issue or sale of
      such  Convertible   Securities  and  thereafter  shall  be  deemed  to  be
      outstanding for purposes of adjusting the Conversion Price,  provided that
      (a) except as otherwise provided in subsection 4E(3), no adjustment of the
      Conversion  Price  shall be made upon the actual  issuance  of such Common
      Stock upon conversion or exchange of such  Convertible  Securities and (b)
      no further  adjustment of the Conversion  Price shall be made by reason of
      the issue or sale of Convertible  Securities  upon exercise of any Options
      to purchase any such Convertible  Securities for which  adjustments of the
      Conversion  Price  have been made  pursuant  to the  other  provisions  of
      subsection 4E.

                                       6
<PAGE>

            4E(3) Change in Option Price or Conversion  Rate. Upon the happening
      of any of the following events, namely, if the purchase price provided for
      in any Option  referred to in  subsection  4E(l)  hereof,  the  additional
      consideration,  if any,  payable  upon the  conversion  or exchange of any
      Convertible  Securities  referred to in subsections 4E(l) or 4E(2), or the
      rate at which Convertible  Securities  referred to in subsections 4E(l) or
      4E(2) are convertible  into or exchangeable  for Common Stock shall change
      at any time (including,  but not limited to, changes under or by reason of
      provisions designed to protect against dilution),  the Conversion Price in
      effect at the time of such event  shall  forthwith  be  readjusted  to the
      Conversion  Price  which  would  have been in effect at such time had such
      Options or  Convertible  Securities  still  outstanding  provided for such
      changed  purchase price,  additional  consideration or conversion rate, as
      the case may be, at the time  initially  granted,  issued or sold.  On the
      termination  of any Option for which any  adjustment  was made pursuant to
      this  subsection  4(D) or any right to  convert  or  exchange  Convertible
      Securities for which any  adjustment was made pursuant to this  subsection
      4(D)  (including  without  limitation  upon the redemption or purchase for
      consideration  of  such  Convertible   Securities  by  the  Company),  the
      Conversion  Price then in effect  hereunder  shall forthwith be changed to
      the  Conversion  Price which would have been in effect at the time of such
      termination  had such  Option or  Convertible  Securities,  to the  extent
      outstanding immediately prior to such termination, never been issued.

            4E(4) Stock Dividends.  Subject to the provisions of this subsection
      4E,  in case the  Company  shall  declare  a  dividend  or make any  other
      distribution  upon any stock of the Company  (other than the Common Stock)
      payable in Common  Stock,  Options  or  Convertible  Securities,  then any
      Common  Stock,  Options  or  Convertible  Securities,  as the case may be,
      issuable in payment of such  dividend or  distribution  shall be deemed to
      have been issued or sold without consideration.

            4E(5)  Consideration  for Stock. In case any shares of Common Stock,
      Options or  Convertible  Securities  shall be issued or sold for cash, the
      consideration  received  therefor  shall be  deemed  to be the net  amount
      received  by  the  Company  therefor,  after  deduction  therefrom  of any
      expenses  incurred or any underwriting  commissions or concessions paid or
      allowed by the  Company  in  connection  therewith.  In case any shares of
      Common Stock,  Options or Convertible  Securities  shall be issued or sold
      for a consideration other than cash, the amount of the consideration other
      than cash  received by the Company shall be deemed to be the fair value of
      such  consideration  as determined in good faith by the Board of Directors
      of  the  Company,   after  deduction  of  any  expenses  incurred  or  any
      underwriting  commissions or concessions paid or allowed by the Company in
      connection  therewith.  In case any Options  shall be issued in connection
      with the  issue  and sale of other  securities  of the  Company,  together
      comprising one integral transaction in which no specific  consideration is
      allocated to such Options by the parties  thereto,  such Options  shall be
      deemed to have been issued for such  consideration  as  determined in good
      faith by the Board of Directors of the Company.  If Common Stock,  Options
      or Convertible  Securities  shall be issued or sold by the Company and, in
      connection  therewith,   other  Options  or  Convertible  Securities  (the
      "Additional Rights") are issued, then the consideration received or deemed
      to be received by the Company shall be reduced by the fair market value of
      the  Additional  Rights  (as  determined  using the  Black-Scholes  option
      pricing model or another method  mutually agreed to by the Company and the
      holder). The Board of Directors of the Company shall respond promptly,  in
      writing,  to an inquiry by the holder as to the fair  market  value of the
      Additional Rights. In the event that the Board of Directors of the Company
      and the  holder  are  unable to agree  upon the fair  market  value of the
      Additional  Rights,  the Company and the holder  shall  jointly  select an
      appraiser,  who is  experienced  in such  matters.  The  decision  of such
      appraiser  shall be final and  conclusive,  and the cost of such appraiser
      shall be borne evenly by the Company and the holder.

                                       7
<PAGE>

            4E(6)  Record Date.  In case the Company  shall take a record of the
      holders  of its Common  Stock for the  purpose  of  entitling  them (i) to
      receive a dividend or other distribution  payable in Common Stock, Options
      or  Convertible  Securities  or (ii) to subscribe  for or purchase  Common
      Stock, Options or Convertible  Securities,  then such record date shall be
      deemed to be the date of the issue or sale of the  shares of Common  Stock
      deemed to have been issued or sold upon the  declaration  of such dividend
      or the making of such other  distribution  or the date of the  granting of
      such right of subscription or purchase, as the case may be.

            4E(7)  Treasury  Shares.  The  number  of  shares  of  Common  Stock
      outstanding at any given time shall not include shares owned or held by or
      for the  account of the Company or any of its  wholly-owned  subsidiaries,
      and the  disposition  of any such shares (other than the  cancellation  or
      retirement  thereof)  shall be considered an issue or sale of Common Stock
      for the purpose of this Section 4E.

            4F Stock Splits and Dividends.  If the Company shall, at any time or
      from time to time while the Series E Preferred Stock is outstanding, pay a
      dividend or make a  distribution  on its Common  Stock in shares of Common
      Stock,  subdivide  its  outstanding  shares of Common Stock into a greater
      number of shares or combine its outstanding  shares of Common Stock into a
      smaller number of shares or issue by  reclassification  of its outstanding
      shares of Common Stock any shares of its capital stock (including any such
      reclassification in connection with a consolidation or merger in which the
      Company  is the  continuing  corporation),  then the  Conversion  Price in
      effect  immediately  prior to the date upon which such change shall become
      effective  shall be adjusted by the Company so that the holder  thereafter
      converting  its shares of Series E  Preferred  Stock  shall be entitled to
      receive the number of shares of Common Stock or other  capital stock which
      such holder would have received if the shares of Series E Preferred  Stock
      had been converted immediately prior to such event. Such adjustments shall
      be made successively whenever any event listed above shall occur.

                                       8
<PAGE>

            4G.    Reorganization   or   Reclassification.    If   any   capital
      reorganization  or  reclassification  of the capital  stock of the Company
      shall be effected in such a way (including,  without limitation, by way of
      consolidation  or merger)  that holders of Common Stock but not holders of
      Series E Preferred Stock shall be entitled to receive stock, securities or
      assets  with  respect  to or in  exchange  for  Common  Stock  then,  as a
      condition of such reorganization or reclassification,  lawful and adequate
      provision shall be made whereby each holder of a share or shares of Series
      E Preferred  Stock shall  thereafter  have the right to receive,  upon the
      basis and upon the terms and  conditions  specified  herein and in lieu of
      the  shares  of  Common  Stock  of  the  Company  immediately  theretofore
      receivable  upon the  conversion  of such  share or shares of the Series E
      Preferred  Stock,  such  shares of stock,  securities  or assets as may be
      issued  or  payable  with  respect  to or in  exchange  for  a  number  of
      outstanding  shares of Common  Stock equal to the number of shares of such
      stock  immediately  theretofore so receivable had such  reorganization  or
      reclassification  not  taken  place  and  in  any  such  case  appropriate
      provision  shall be made with respect to the rights and  interests of such
      holder to the end that the provisions hereof (including without limitation
      provisions for  adjustments of the Conversion  Price) shall  thereafter be
      applicable,  as  nearly  as may be, in  relation  to any  shares of stock,
      securities  or assets  thereafter  deliverable  upon the  exercise of such
      conversion  rights (including an immediate  adjustment,  by reason of such
      reorganization or  reclassification,  of the Conversion Price to the value
      for the Common  Stock  reflected  by the terms of such  reorganization  or
      reclassification  if the value so  reflected  is less than the  Conversion
      Price   in   effect   immediately   prior   to  such   reorganization   or
      reclassification).  In the  event  of a  merger  or  consolidation  of the
      Company  as a result  of which a  greater  or  lesser  number of shares of
      common stock of the surviving  corporation  are issuable to holders of the
      Common Stock of the Company  outstanding  immediately prior to such merger
      or consolidation, the Conversion Price in effect immediately prior to such
      merger or  consolidation  shall be  adjusted  in the same manner as though
      there were a  subdivision  or  combination  of the  outstanding  shares of
      Common Stock of the Company.

            4H. Distributions.  In case the Company shall fix a payment date for
      the making of a distribution to all holders of Common Stock (including any
      such  distribution  made in connection with a  consolidation  or merger in
      which  the  Company  is  the  continuing   corporation)  of  evidences  of
      indebtedness  or assets (other than cash  dividends or cash  distributions
      payable out of  consolidated  earnings or earned  surplus or  dividends or
      distributions  referred to in Section 4E or F), or subscription  rights or
      warrants,  the  Conversion  Price to be in effect  after such payment date
      shall  be  determined  by  multiplying  the  Conversion  Price  in  effect
      immediately  prior to such  payment date by a fraction,  the  numerator of
      which  shall be the total  number of  shares of Common  Stock  outstanding
      multiplied  by the  Market  Price (as  defined  below) per share of Common
      Stock  immediately  prior to such payment date, less the fair market value
      (as determined by the Company's  Board of Directors in good faith) of said
      assets  or  evidences  of  indebtedness   so   distributed,   or  of  such
      subscription rights or warrants, and the denominator of which shall be the
      total  number of shares of Common  Stock  outstanding  multiplied  by such

                                       9
<PAGE>

      Market Price per share of Common Stock  immediately  prior to such payment
      date.  "Market Price" as of a particular date (the "Valuation Date") shall
      mean the  following:  (a) if the Common Stock is then listed on a national
      stock  exchange,  the closing  sale price of one share of Common  Stock on
      such exchange on the last trading day prior to the Valuation  Date; (b) if
      the  Common  Stock  is  then  quoted  on The  Nasdaq  Stock  Market,  Inc.
      ("Nasdaq"),  the National  Association  of  Securities  Dealers,  Inc. OTC
      Bulletin  Board  (the  "Bulletin  Board")  or  such  similar  exchange  or
      association,  the  closing  sale  price of one  share of  Common  Stock on
      Nasdaq,  the Bulletin  Board or such other  exchange or association on the
      last trading day prior to the  Valuation  Date or, if no such closing sale
      price is  available,  the  average of the high bid and the low asked price
      quoted thereon on the last trading day prior to the Valuation Date; or (c)
      if the Common  Stock is not then  listed on a national  stock  exchange or
      quoted  on  Nasdaq,   the  Bulletin   Board  or  such  other  exchange  or
      association,  the fair market value of one share of Common Stock as of the
      Valuation  Date,  shall  be  determined  in good  faith  by the  Board  of
      Directors of the Company and the holders of a majority of the  outstanding
      Series E  Preferred  Stock.  If the Common  Stock is not then  listed on a
      national securities exchange, the Bulletin Board or such other exchange or
      association, the Board of Directors of the Company shall respond promptly,
      in writing, to an inquiry by a holder of Series E Preferred Stock prior to
      the  exercise  hereunder  as to the fair market value of a share of Common
      Stock as determined by the Board of Directors of the Company. In the event
      that the Board of  Directors  of the  Company  and the holders of at least
      62.5% of the outstanding Series E Preferred Stock are unable to agree upon
      the fair market  value in respect of subpart  (c) hereof,  the Company and
      the holders of a majority  of the  outstanding  Series E  Preferred  Stock
      shall jointly select an appraiser, who is experienced in such matters. The
      decision of such appraiser shall be final and conclusive,  and the cost of
      such  appraiser  shall be borne  equally by the Company and such  holders.
      Such adjustment shall be made successively whenever such a payment date is
      fixed.

            4I.  Effective Date of  Adjustment.  An adjustment to the Conversion
      Price shall  become  effective  immediately  after the payment date in the
      case of each dividend or distribution and immediately  after the effective
      date of each other event which requires an adjustment.

            4J.  Subsequent  Adjustments.  In the event that,  as a result of an
      adjustment  made pursuant to this Section 4, holders of Series E Preferred
      Stock shall become  entitled to receive any shares of capital stock of the
      Company other than shares of Common Stock, the number of such other shares
      so receivable upon the conversion of the Series E Preferred Stock shall be
      subject  thereafter  to  adjustment  from time to time in a manner  and on
      terms as nearly  equivalent as practicable to the provisions  with respect
      to the Conversion Shares contained herein.

            4K. Notice of  Adjustment.  Upon any  adjustment  of the  Conversion
      Price,  then,  and in each such case the Company shall give written notice
      thereof by first class mail, postage prepaid,  addressed to each holder of
      shares of Series E Preferred  Stock at the address of such holder as shown
      on the books of the Company, which notice shall state the Conversion Price
      resulting  from such  adjustment,  setting forth in reasonable  detail the
      method of calculation and the facts upon which such calculation is based.

                                       10
<PAGE>

            4L. Other Notices. In case at any time:

            (1) the Company  shall  declare any  dividend  upon its Common Stock
      payable in cash or stock or make any other  distribution to the holders of
      its Common Stock;

            (2) the Company shall offer for subscription pro rata to the holders
      of its Common  Stock any  additional  shares of such stock of any class or
      other rights;

            (3) there shall be any capital reorganization or reclassification of
      the capital  stock of the  Company,  or a  consolidation  or merger of the
      Company with, or a sale of all or substantially all its assets to, another
      corporation; or

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

      then,  in any one or more of said cases,  the Company shall give, by first
      class mail,  postage  prepaid,  addressed  to each holder of any shares of
      Series E  Preferred  Stock at the  address of such  holder as shown on the
      books of the  Company,  (a) at least 15 days prior  written  notice of the
      date on which the books of the Company  shall  close or a record  shall be
      taken  for such  dividend,  distribution  or  subscription  rights  or for
      determining  rights  to  vote  in  respect  of  any  such  reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding   up,   and  (b)  in  the   case  of  any   such   reorganization,
      reclassification, consolidation, merger, sale, dissolution, liquidation or
      winding  up, at least 15 days  prior  written  notice of the date when the
      same shall take place. Such notice in accordance with the foregoing clause
      (a) shall also specify, in the case of any such dividend,  distribution or
      subscription  rights,  the date on which the holders of Common Stock shall
      be entitled  thereto,  and such notice in  accordance  with the  foregoing
      clause  (b) shall  also  specify  the date on which the  holders of Common
      Stock shall be entitled to exchange  their Common Stock for  securities or
      other property  deliverable  upon such  reorganization,  reclassification,
      consolidation,  merger, sale,  dissolution,  liquidation or winding up, as
      the case may be.

            4L. Reservation of Shares.

            The Company will at all times reserve and keep  available out of its
      authorized  Series E  Preferred  Stock  such  number of shares of Series E
      Preferred  Stock as is equal to the number of shares of Series E Preferred
      Stock then outstanding, but in any case not less than the number of shares
      stated in the second  paragraph of this  certificate,  except as otherwise
      provided  in Section  4M. All shares of Series E  Preferred  Stock,  which
      shall be so issued  shall be duly and  validly  issued  and fully paid and
      nonassessable  and free from all liens,  duties and charges arising out of
      or by reason of the  issue  thereof  (including,  without  limitation,  in
      respect of taxes).

                                       11
<PAGE>

            4M. No  Reissuance of Series E Preferred  Stock.  Shares of Series E
      Preferred Stock that are converted into shares of Common Stock as provided
      herein  shall be retired  and may not be  reissued  as Series E  Preferred
      Stock but may be  reissued  as all or part of another  Series E  Preferred
      Stock.

            4N.  Issue Tax. The  issuance of  certificates  for shares of Common
      Stock  upon  conversion  of the  Series E  Preferred  Stock  shall be made
      without  charge to the holders  thereof for any issuance  tax,  stamp tax,
      transfer tax, duty or charge in respect thereof, provided that the Company
      shall not be required to pay any tax,  duty or charge which may be payable
      in respect of any  transfer  involved in the  issuance and delivery of any
      certificate  in a name  other  than  that of the  holder  of the  Series E
      Preferred Stock which is being converted.

            4O. Closing of Books. The Company will at no time close its transfer
      books  against  the  transfer  of any Series E  Preferred  Stock or of any
      shares of Common  Stock  issued or  issuable  upon the  conversion  of any
      shares of Series E Preferred Stock in any manner which interferes with the
      timely  conversion of such Series E Preferred  Stock;  provided,  however,
      nothing  herein  shall be  construed  to prevent the Company  from setting
      record dates for the holders of its securities.

      5. Voting - Series E  Preferred  Stock.  In  addition to any class  voting
rights  provided by law and this  Certificate  of  Designations,  the holders of
Series E Preferred  Stock shall have no voting rights;  provided,  however,  the
vote of a majority of the shares of Series E  Preferred  Stock will be needed to
approve any  amendment to the Company's  certificate  of  incorporation  of this
certificate  of  designation  that would (i) increase or decrease the  aggregate
number of Series E Preferred  Stock,  (ii) increase or decrease the par value of
the Series E Preferred Stock,  (iii) alter or change the powers,  preferences or
special rights of the Series E Preferred Stock so as to affect them adversely or
(iv)  authorize or issue  shares of capital  stock with rights on a parity to or
senior to the rights of the Series E Preferred Stock.

      6.  Amendment;  Waiver.  Any term of the Series E  Preferred  Stock may be
amended or waived (including the adjustment  provisions included in Section 4(E)
hereof) upon the written consent of the Company and the holders of a majority of
the Series E Preferred Stock then outstanding; provided, however that the number
of Conversion  Shares  issuable  hereunder and the  Conversion  Price may not be
amended,  and the  right to  convert  the  Series E  Preferred  Stock may not be
altered or waived,  without  the  written  consent of the  holders of all of the
Series E Preferred Stock then outstanding.

      7.  Action By  Holders.  Any action or consent to be taken or given by the
holders of the Series E Preferred  Stock may be given either at a meeting of the
holders of the Series E Preferred  Stock  called and held for such purpose or by
written consent.

                            [Execution Page Follows]

                                       12
<PAGE>

      IN WITNESS  WHEREOF,  the  undersigned  has executed this  Certificate  of
Designations, Preferences and Rights this ____ day of September, 2005.

                                             AMERICAN TECHNOLOGIES GROUP, INC.

                                             By: ______________________________
                                                 Name: Dr. Gary Fromm
                                                 Title: Chief Executive Officer

                                       13
<PAGE>

                                     ANNEX A

                              NOTICE OF CONVERSION

(To be Executed by the Registered  Holder in order to convert shares of Series E
Convertible Preferred Stock)

The  undersigned  hereby  elects  to  convert  the  number of shares of Series E
Convertible  Preferred Stock indicated  below,  into shares of common stock, par
value $0.001 per share (the "Common  Stock"),  of American  Technologies  Group,
Inc., a Nevada corporation (the "Company"),  according to the conditions hereof,
as of the date written below. If shares are to be issued in the name of a person
other than undersigned, the undersigned will pay all transfer taxes payable with
respect  thereto and is delivering  herewith such  certificates  and opinions as
reasonably  requested  by the Company in  accordance  therewith.  No fee will be
charged to the holder for any  conversion,  except for such transfer  taxes,  if
any.

Conversion calculations:

Date to Effect Conversion

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

Number of shares of Series E Preferred Stock owned prior to Conversion

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

Number of shares of Series E Preferred Stock to be Converted

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

Series E Stated Value of shares of Series E Preferred Stock to be Converted

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

Number of shares of Common Stock to be Issued

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

Applicable Set Price

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

Number of shares of Series E Preferred Stock subsequent to Conversion

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

                                    [HOLDER]

                                     By:_______________________
                                        Name:
                                        Title:

                                       14

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