X0202 4 2007-07-30 0 0000808013 NORTH AMERICAN TECHNOLOGIES GROUP INC /TX/ NATK 0001318540 Herakles Investments, Inc. 5949 SHERRY LANE SUITE 1900 DALLAS TX 75225 0 0 1 0 0001332355 CONSOLIDATED INVESTMENT SERVICES, INC. ONE MIDLAND PLAZA SIOUX FALLS SD 57193 0 0 1 0 0001332354 CHARLES A. SAMMONS 1987 CHARITABLE REMAINDER TRUST NUMBER TWO 5949 SHERRY LANE SUITE 1900 DALLAS TX 75225 0 0 1 0 0001332231 SAMMONS ENTERPRISES, INC. 5949 SHERRY LANE SUITE 1900 DALLAS TX 75225 0 0 1 0 8% Convertible Debentures due July 25, 2010 0.20 2007-07-30 2007-07-30 4 P 0 1761330.00 1761330.00 A 2007-07-30 2010-07-25 Common Stock 1761330.00 1761330.00 D Common Stock Warrants (Right to Buy) 0.20 2007-07-30 2007-07-30 4 P 0 4403325 A 2007-07-30 2011-07-30 Common Stock 4403325 4403325 D On July 24, 2007, Herakles Investments, Inc. entered into a Securities Purchase Agreement ("July 2007 SPA") by and among North American Technologies, Inc. ("NATK"), Midsummer Investment, Ltd.; Crestview Capital Master, LLC; Islandia, LP; Enable Growth Partners LP; Enable Opportunity Partners LP; Pierce Diversified Strategy Master Fund LLC, Ena. Pursuant to the July 2007 SPA, NATK issued to Herakles an 8% Convertible Debenture in the original principal amount of $1,761,330 due July 25, 2010 ("Debenture") and a four year warrant to purchase up to 4,403,325 shares of common stock of NATK at $.20 per share ("Warrant"). Pursuant to the July 2007 SPA, Herakles paid to NATK $1,761,330 ("Herakles Subscription Amount") on July 30, 2007. In consideration of the Herakles Subscription Amount, NATK issued to Herakles a Debenture with a principal amount equal to the Herakles Subscription Amount and a Warrant to purchase up to 4,403,325 shares of common stock of NATK. Herakles did not pay separate consideration for the Debenture and the Warrant. /s/ Heather Kreager, Senior Vice President Herakles Investments, Inc. 2007-08-01 Heather Kreager, Senior Vice President 2007-08-01 By Herakles Investments, Inc., Attorney-in-Fact, Heather Kreager, Senior Vice President 2007-08-01 Heather Kreager, Senior Vice President 2007-08-01