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Exhibit 10.1
 
 
THE SECURITIES TO WHICH THIS AMENDMENT APPLIES, AND THE UNDERLYING SHARES TO
WHICH THE PROMISSORY NOTE IS CONVERTIBLE INTO, HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT
TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
COMPANY THAT SUCH REGS1TRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE
144 OF SUCH ACT
 
AMENDMENT TO
JAYHAWK ENERGY, INC.
CONVERTIBLE PROMISSORY NOTE
 
THIS AMENDMENT, made effective this 30thday of July, 2009, amends and modifies
that certain Convertible Promissory Note dated July 30, 2008 in the original
principal amount of .eight hundred thousand and no/100 dollars ($800,000.00)
(the "Note") payable to Starshell Consultants Ltd. (the "Holder"). A copy of the
Note is attached hereto.
 
Jayhawk Energy, Inc. (the "Maker") executed and delivered the Note in connection
with the extension of a loan in said amount on such date (the "Loan"). The Maker
and Holder have agreed to amend the terms of the Note as provided in this
Amendment.
 
NOW, THEREFORE, in consideration of the foregoing premises and other good and
valuable consideration, the receipt and sufficiency of which being hereby
acknowledged and affirmed, Maker and Holder do hereby agree that the Note is
hereby amended as follows:
 
1. By extending the Maturity Date of the Note to July 30, 2010.
 
2. By providing that the interest accrued, through July 30. 2009, on the
principal of the Note (the "Interest") shall be converted, by way of the
execution of the Notice of Conversion attached hereto, into three hundred eighty
thousand (384,000) shares of restricted common stock of Maker. Holder and Maker
agree that the Interest amount accrued is ninety six thousand and no/100 dollars
($96,000.00). The restricted common stock to which the Interest is being
converted by Holder shall be valued at zero and 25/100 dollars ($0.25) per share
("Amended  Conversion Price").
 
3. By providing that in exchange for the extension of the Note Holder shall be
paid a fee of five percent (5%), or forty thousand and no/100 dollars
($40,000.00) (the "Extension  Fee"), of the outstanding principal amount owed on
the Note. The Extension Fee shall be paid to Holder in the form of one hundred
sixty thousand (160,000) shares of restricted common stock of Maker which shall
be valued at zero and 25/100 dollars ($0.25) per share.
 
With the exception of the amendments set forth above, and specifically the
Conversion Price and Amended Conversion Price of the Interest owed, the
remainder of the terms and conditions of the Note shall remain in effect and
shall be enforceable against the parties as provided in the Note. Any interest
which shall accrue on the Note, after the date of this Amendment, shall be
convertible by Holder at the Conversion Price as that term is defined in the
Note. Copies of the Company's most recent 10-K and 10-Q filings with the
Securities and Exchanue Commission ("SEC") are attached hereto as Exhibits "B"'
and "C" respectively.
 
[signature page to follow]
 
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[signature page to Convertible Promissory Note Amendment]
 
IN WITNESS WHEREOF, Maker and Holder have each set their hand as of the day and
year first above written.
 
MAKER:
 
JAYHAWK ENERGY, INC.
a Colorado corporation
 
By: /s/ Lindsay Gorrill
   
 
 
Lindsay Gorrill. President
   
 
 

 
HOLDER:
 
STARSHELL CONSULTANTS LTD.
 
By: /s/ Don Scholar
   
 
 
Print Name: Don Scholar
   
 
  Title: Director        

 
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NOTICE OF CONVERSION
 
To .Jayhawk Energy, Inc. (the "Company"):
 
The undersigned, holder of the $800,000 Convertible Note of Jayhawk Energy, Inc.
as amended, due July 30, 2010 (the "Note"), hereby agrees to convert Ninety Six
Thousand and no/100 dollars ($96,000.00) unpaid accrued interest owed under the
Note into three hundred eighty four thousand (384,000) shares of restricted
common stock of the Company and requests that the certificates for such shares
be issued in the name of, and delivered to, Starshell Consultants Ltd., whose
address is 76 Dean Street, PO Box 1117, Belize City, Belize. Conversion should
be effected as of July 30. 2009.
 

         
Dated: August 22, 2009
   
 
 

 
 
   
/s/ Don Scholar
 
 
   
(signature must conform in all respects to name of holder as specified on the
face of the Note)
 
 
   
 
        Address:                      
Starshell Consultants Ltd.
                 
76 Dean Street. PO Box 1117
Belize City. Belize
 

 
 
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