Document:

EXHIBIT
      4.1

     

    Amendments
      to Sections 6.2 and 6.4 of the Amended and Restated Bylaws of Harbin Electric, Inc.

    

    “6.2
      Certificates for Shares

    

    (a)
      The
      Board may authorize the Corporation to issue some or all of its shares with
      or
      without certificates. Certificates representing shares of the Corporation shall
      be signed by any two of the President, Vice-President, Secretary or Treasurer
      as
      designated by the Board from time to time. Any certificate that is countersigned
      or otherwise authenticated by a transfer agent or transfer clerk, or by a
      registrar may have the facsimile of the officers’ signatures printed or
      lithographed up on the certificates in lieu of actual signatures. Certificates
      shall include on their face written notice of any restrictions that may be
      imposed on the transferability of such shares. All certificates shall be
      consecutively numbered or otherwise identified.

    

    (b)
      The
      Board, from time to time, may authorize the issuance of some or all of the
      shares of the Corporation of any or all of its classes or series without
      certificates. (Such shares shall be known as ‘uncertificated shares’). Such
      authorization by the Board does not affect shares of the Corporation already
      represented certificates until they are surrendered to the Corporation. Within
      a
      reasonable time after the issue or transfer of such uncertificated shares,
      the
      Corporation shall send the shareholder a written statement of the information
      required by law and these Bylaws on certificates of shares of the
      Corporation.”

    

    “6.4
      Transfer of Shares

    

    The
      transfer of shares of the Corporation shall be made only on the stock transfer
      books of the Corporation pursuant to authorization or document of transfer
      made
      by the holder of record thereof or by his or her legal representative, who
      shall
      furnish proper evidence of authority to transfer, or by his or her
      attorney-in-fact authorized by power of attorney duly executed and filed with
      the Secretary of the Corporation. When shares are certificated shares, all
      certificates surrendered to the Corporation for transfer shall be canceled
      and
      no new certificate shall be issued until the former certificates for a like
      number of shares shall have been surrendered and canceled.”Exhibit
      4.28. Form of Waiver Agreement with Laurus

    

    WAIVER
      AGREEMENT

    

    December
      12, 2006

    

    Reference
      is hereby made to (a) that certain Security Agreement dated as of September
      7,
      2005 (the “Closing
      Date”)
      by and
      among Laurus Master Fund, Ltd. (“Laurus”),
      American Technologies Group, Inc. (the “Company”)
      and
      the other subsidiaries of the Company named therein or which thereafter became
      a
      party thereto (the “Security
      Agreement”)
      and
      (b) the Ancillary Agreements (as defined in the Security Agreement) (the
      Security Agreement and the Ancillary Agreements, as each may be amended,
      restated, supplemented and modified from time to time, the “Agreements”).
      Capitalized terms used but not defined herein shall have the meanings given
      them
      in the Security Agreement.

    

    WHEREAS,
      the Company was required to file the Registration Statement (as defined in
      the
      Registration Rights Agreement) with the SEC on or prior to the Filing Date
      under
      the terms of the Registration Rights Agreement;

    

    WHEREAS,
      the Company filed the Registration Statement on November 8, 2005 and therefore
      failed to file the Registration Statement on or prior to the Filing Date (a
      “Filing
      Date Failure”)
      and,
      as a result thereof, the Company was required to pay to Laurus liquidated
      damages as determined in accordance with Section 2 of the Registration Rights
      Agreement (the “Initial
      Liquidated Damages”);
      

    

    WHEREAS,
      as of the date hereof, the Company has not paid to Laurus the Initial Liquidated
      Damages; 

    

    WHEREAS,
      the Company withdrew the Registration Statement on or about November 23, 2005
      (the “Withdrawal
      Date”)
      and,
      as a result of the occurrence and continuance of such Filing Date Failure,
      the
      Company is required to pay to Laurus liquidated damages as of the Withdrawal
      Date through the date the Company files a
      Registration Statement covering the Registrable Securities
      with the
      SEC as determined in accordance with Section 2 of the Registration Rights
      Agreement (the “Additional
      Liquidated Damages”);
      

    

    WHEREAS,
      as of the date hereof, the Company has not filed a
      Registration Statement covering the Registrable Securities
      with the
      SEC nor has the Company paid to Laurus any of the Additional Liquidated Damages
      that have accrued and continue to accrue since the Withdrawal Date;

    

    WHEREAS,
      certain Events of Default have occurred under (a) Section 19(a) of the Security
      Agreement as a result of the failure by the Company and its Subsidiaries named
      in the Security Agreement (together with the Company, the “Obligors”)
      to
      make principal payments to Laurus under Term Note A for the months of June,
      2006
      through December, 2006 (the “Existing
      Payment Default”),
      (b)
      Section 19(c) of the Security Agreement as a result of the failure by the
      Company to deliver to Laurus an unaudited/internal balance sheet and statements
      of income, retained earnings and cash flows of each Obligor pursuant to Section
      11(b) of the Security Agreement for the fiscal quarter ended October 31, 2006
      (the “Existing
      Financial Reporting Default”)
      and
      (c) Section 19(c) of the Security Agreement as a result of the failure by the
      Company to deliver to Laurus copies of the Company’s 10-K for the fiscal year
      ended July 31, 2006 and the Company’s 10-Q for the fiscal quarter ended October
      31, 2006 pursuant to Section 11(d) of the Security Agreement (the “Existing
      SEC Filings Default”
      together with the Existing Payment Default and the Existing Financial Reporting
      Default, collectively, the “Existing
      Defaults”);
      and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    WHEREAS,
      the Obligors have requested, and Laurus has agreed, to waive on the terms and
      conditions set forth herein (the “Waiver”),
      (a)
      the obligation of the Company to pay to Laurus, as a result of the Filing Date
      Failures, all of (i) the Initial Liquidated Damages and the Additional
      Liquidated Damages that have accrued during the period commencing on the
      Withdrawal Date through and including the date hereof and (ii) the Additional
      Liquidated Damages that may accrue during the period commencing after the date
      hereof through and including January 30, 2007 and (b) the Existing
      Defaults.

    

    NOW,
      THEREFORE, in consideration of the above, and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      parties hereto agree as follows:

    

    1.  Subject
      to Section 4 hereof, Laurus hereby waives the obligation of the Company to
      pay
      to Laurus, as a result of the Filing Date Failures, all of (a) the Initial
      Liquidated Damages and the Additional Liquidated Damages that have accrued
      during the period commencing on the Withdrawal Date through and including the
      date hereof and (b) the Additional Liquidated Damages that may accrue during
      the
      period commencing after the date hereof through and including January 30, 2007
      but not any Additional Liquidated Damages that may accrue
      thereafter.

    

    2.  Subject
      to Section 4 hereof, Laurus hereby waives the Existing Payment Default;
provided,
      however,
      such
      waiver does not, in any way, release the Obligors from their obligation to
      repay
      all amounts that remain unpaid under Term Note A (including, without limitation,
      the amounts under Term Note A that were not paid by the Obligors for the months
      of June, 2006 through December, 2006). Each Obligor hereby acknowledges,
      ratifies and confirms that the Obligors shall, jointly and severally, make
      (a)
      monthly principal payments to Laurus under Term Note A in the amount of $98,275
      on the first Business Day of January, 2007 and each succeeding month thereafter
      until the Maturity Date (as defined in Term Note A), in each case, together
      with
      any accrued and unpaid interest thereon and (b) a principal payment to Laurus
      in
      an amount equal to the unpaid principal balance of Term Loan A on the Maturity
      Date (as defined in Term Note A), together with any accrued and unpaid interest
      thereon.

    

    3.  Subject
      to Section 4 hereof, Laurus hereby waives the Existing Financial Reporting
      Default and the Existing SEC Filings Default.

    

    4.  The
      Waiver set forth herein shall be effective upon the execution by each Obligor
      and Laurus of this Waiver Agreement and the receipt by Laurus of each Obligor’s
      executed counterpart to this Waiver Agreement.

    

    5.  The
      Company hereby agrees that it shall (a) file a
      Registration Statement covering the Registrable Securities
      with the
      SEC on or prior to January 31, 2007, (b) cause such Registration Statement
      to
      be
      declared effective under the Securities Act on
      or
      prior to April 16, 2007, (c) deliver to Laurus the unaudited/internal balance
      sheet and statements of income, retained earnings and cash flows of each Obligor
      pursuant to Section 11(b) of the Security Agreement for the fiscal quarter
      ended
      October 31, 2006 on or prior to January 31, 2007 and (d) deliver to Laurus
      copies of the Company’s 10-K for the fiscal year ended July 31, 2006 and the
      Company’s 10-Q for the fiscal quarter ended October 31, 2006 pursuant to Section
      11(d) of the Security Agreement on or prior to January 31, 2007. Each Obligor
      hereby acknowledges that the breach of this covenant shall constitute an
      automatic Event of Default and no cure or grace period shall be applicable
      thereto notwithstanding any other provision of the Agreements to the
      contrary.

    

    6.  Each
      Obligor hereby represents and warrants to Laurus that, on the date hereof,
      after
      giving effect to this Waiver Agreement, (i) no Event of Default exists, (ii)
      all
      representations, warranties and covenants made by such Obligor in connection
      with the Agreements are true, correct and complete and (iii) all of such
      Obligor’s covenant requirements under the Agreements have been met.

    

    7.  Except
      as
      expressly described above, this Waiver Agreement shall not constitute (a) a
      modification or an alteration of any of the terms, conditions or covenants
      of
      the Agreements, all of which remain in full force and effect, or (b) a waiver,
      release or limitation upon Laurus’ exercise of any of its rights and remedies
      thereunder, all of which are hereby expressly reserved. This Waiver Agreement
      shall not relieve or release any Obligor in any way from any of its duties,
      obligations, covenants or agreements under the Agreements or from the
      consequences of any Events of Default thereunder, except as expressly described
      above.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    8.  This
      Waiver Agreement shall be governed by and construed under the laws of the State
      of New York as applied to agreements among New York residents entered into
      and
      to be performed entirely within New York. Provisions hereof shall inure to
      the
      benefit of, and be binding upon, the successors, assigns, heirs, executors,
      and
      administrators of the parties hereto. This Waiver Agreement constitutes the
      full
      and entire understanding and agreement between the parties with regard to the
      subjects hereof. This Waiver Agreement may be executed in any number of
      counterparts, each of which shall be an original, but all of which together
      shall constitute one instrument.

    

    [Signature
      Page Follows]

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    IN
      WITNESS WHEREOF, the parties hereto have caused this Waiver Agreement to be
      signed by their respective representatives thereunto duly authorized, all as
      of
      the date first written above.

     

    
      	 	
              OBLIGORS:

            
	 	
              AMERICAN
                TECHNOLOGIES GROUP, INC.

            
	 	 
	 	
              /s/
                William N. Plamondon, III, President

            
	
               

            	 
	 	
              NORTH
                TEXAS STEEL COMPANY, INC.

            
	 	 
	 	
              /s/
                Barry Ennis, President 

            
	 	 
	 	
              OMAHA
                HOLDINGS CORP.

            
	 	 
	 	
              /s/
                William N. Plamondon, III, President 

            
	 	 
	 	
              LAURUS:

            
	 	 
	 	
              LAURUS
                MASTER FUND, LTD.

            
	 	 
	 	
              By:
                Laurus Capital Management, LLC

            
	 	 
	 	
              /s/  
                Lloyd
                Davis

            
	 	
              Title:  
                Chief
                Credit Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]