Document:

EXHIBIT NO. 10.4

                         [FORM OF] CONVERTIBLE TERM NOTE

THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN REGISTERED UNDER
THE  SECURITIES  ACT OF 1933,  AS AMENDED (THE  "SECURITIES  ACT") OR APPLICABLE
STATE  SECURITIES  LAWS,  AND,  ACCORDINGLY,  MAY NOT BE OFFERED OR SOLD  EXCEPT
PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT FOR SUCH SECURITIES  UNDER THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN OPINION OF
COUNSEL  REASONABLY  SATISFACTORY  TO THE  COMPANY  THAT  THERE IS AN  AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

Subscription Amount: $[amount]                                Irvine, California
                                                                   Dated: [date]

      FOR VALUE RECEIVED, NUWAY MEDICAL, INC., a corporation organized under the
laws of the  state of  Delaware  ("Borrower"),  promises  to pay to the order of
"Investor",  as that term is defined in the  Convertible  Loan  Agreement by and
between  Borrower  and  Investor  ("Convertible  Loan  Agreement")   (hereafter,
together with any subsequent holder hereof,  called "Lender"),  at its office at
"Investor's Address", as that term is defined in the Convertible Loan Agreement,
or at such other place as Lender may direct,  the "Subscription  Amount",  noted
above (the "Loan"), payable in full one year from the "Subscription Date", or at
an earlier  date as provided in Section 3.2 of the  Convertible  Loan  Agreement
(the "Maturity  Date").  This  Convertible Term Note is duly authorized issue of
the  Borrower  (the  "Issuer"),  issued on [date]  (the  "Issuance  Date"),  and
designated as its Convertible Term Note due one year from the Issuance Date (the
"Note").

      Borrower agrees to pay interest on the unpaid  principal  amount from time
to time outstanding hereunder on the dates and at the rate or rates as set forth
in the Convertible Loan Agreement.

      Payments of both  principal  and  interest  are to be made in  immediately
available  funds in lawful money of the United  States of America,  or in Common
Stock of the Borrower as set forth below.

      Accrual of interest shall commence as of the Issuance Date. Interest shall
be payable by the Issuer,  at the Issuer's option,  in cash or in that number of
shares of Common stock of the Issuer (the "Common  Stock") (at a price per share
calculated pursuant to the conversion formula contained below), upon the earlier
to occur of (i) upon conversion of this Note pursuant to the conversion features
set forth below,  or (ii) upon an Event of Default as defined  below,  and if an
Event of Default occurs interest due hereunder shall be payable in cash or stock
as set forth  herein at the option of the  Holder.  Unless  otherwise  agreed in
writing by both  parties  hereto,  the  interest so payable  will be paid to the
person in whose name this Note (or one or more predecessor  Notes) is registered
on the records of the Issuer  regarding  registration  and transfers of the Note
(the "Note  Register"),  provided,  however,  that the Issuer's  obligation to a
transferee of this Note arises only if such transfer,  sale or other disposition
is made in accordance  with the terms and conditions  contained in the Agreement
and this Note.

<PAGE>

The Note is subject to the following additional provisions:

      1. The Issuer shall be entitled to withhold from all payments of principal
and/or  interest  of this Note any amounts  required  to be  withheld  under the
applicable  provisions of the U.S. Internal Revenue Code of 1986, as amended, or
other applicable laws at the time of such payments.

      2. This Note has been issued subject to investment  representations of the
original  Holder hereof and may be  transferred  or exchanged only in compliance
with the Securities Act and applicable  state  securities laws and in compliance
with the  restrictions on transfer  provided in the Agreement.  Prior to the due
presentment  for such  transfer  of this  Note,  the Issuer and any agent of the
Issuer may treat the person in whose  name this Note is duly  registered  on the
Issuer's Note register as the owner hereof for the purpose of receiving  payment
as herein provided and all other purposes,  whether or not this Note is overdue,
and  neither  the Issuer nor any such agent  shall be  affected by notice to the
contrary.  The  transferee  shall be bound,  as the original  Holder by the same
representations and terms described herein and under the Agreement.

      3.  The  Holder  or  Issuer  may,  at its  option,  at any  time up to and
including  [date],  convert  the  principal  amount of this Note or any  portion
thereof,  and any accrued interest  thereon,  into [number] shares of fully paid
and non assessable Common Stock of the Issuer ("Conversion  Shares").  The right
to convert the Note may be exercised by  telecopying  an executed and  completed
notice of conversion (the "Notice of Conversion") to the Holder or Issuer.  Each
business day on which a Notice of Conversion  is  telecopied in accordance  with
the  provisions  hereof  shall be deemed a  "Conversion  Date".  The Issuer will
transmit the  certificates  representing  Conversion  Shares  issuable upon such
conversion of the Note (together with the certificates representing the Note not
so converted)  to the Holder via express  courier,  by  electronic  transfer (if
applicable)  or otherwise  within ten Business Days after the  Conversion  Date,
provided,  the Issuer has received the original Note being so converted from the
Holder. If the Company has not received the original Note being converted within
three Business Days after  Conversion  Date,  then the Issuer shall transmit the
certificates representing the Conversion Shares issuable upon such conversion of
the Note (together with the certificates representing the Note not so converted)
to the Holder via express  courier,  by electronic  transfer (if  applicable) or
otherwise  within five  business  days after  receipt of the original  Notice of
Conversion and original Note being  converted.  The Conversion of this note will
require that the Issue amend its charter to increase the number of common shares
authorized  and  therefore,  the  conversion  will not be  allowed  prior to the
Issuers completion of that process. Issuer shall promptly affect such amendments
to its charter.

      4. The principal  amount of this Note, and any accrued  interest  thereon,
shall be  reduced  as per that  principal  amount  indicated  on the  Notice  of
Conversion upon the proper receipt by the Holder of such  Conversion  Shares due
upon such Notice of Conversion.

      5. The number of Conversion Shares shall be adjusted as follows:

            a. If the Issuer shall at any time subdivide its outstanding  shares
of Common Stock into a greater  number of shares of Common Stock,  the number of
Conversion  Shares  in effect  immediately  prior to such  subdivision  shall be
proportionately  increased,  and conversely,  in case the outstanding  shares of
Common Stock shall be combined into a smaller  number of shares of Common Stock,
the Conversion Price in effect  immediately  prior to such combination  shall be
proportionately reduced.

<PAGE>

      6. No provision of this Note shall alter or impair the  obligation  of the
Issuer,  which is  absolute  and  unconditional,  upon an Event of  Default  (as
defined below), to pay the principal of, and interest on this Note at the place,
time, and rate, and in the coin or currency herein prescribed.

      7. The Issuer hereby  expressly waives demand and presentment for payment,
notice on nonpayment,  protest, notice of protest, notice of dishonor, notice of
acceleration  or intent to  accelerate,  and  diligence  in taking any action to
collect amounts called for hereunder and shall be directly and primarily  liable
for the  payment of all sums  owing and to be owing  hereon,  regardless  of and
without  any  notice,  diligence,  act or  omission  as or with  respect  to the
collection of any amount called for hereunder.

      8. If one or more "Events of Default" shall occur, as that term is used in
the Convertible Loan Agreement, then, or at any time thereafter, and in each and
every such case,  unless such Event of Default shall have been waived in writing
by the Holder (which waiver shall not be deemed to be a waiver of any subsequent
default) or cured as provided  herein,  at the option of the Holder,  and in the
Holder's  sole  discretion,  the Holder may consider this Note (and all interest
through such date)  immediately  due and payable in cash,  without  presentment,
demand protest or notice of any kind, all of which are hereby expressly  waived,
anything  herein or in any note or other  instruments  contained to the contrary
notwithstanding,  and Holder may  immediately,  and  without  expiration  of any
period  of  grace,  enforce  any and all of the  Holder's  rights  and  remedies
provided  herein or any other rights or remedies  afforded by law (including but
not limited to consequential  damages if any). It is agreed that in the event of
such action, such Holder shall be entitled to receive all reasonable fees, costs
and expenses  incurred,  including  without  limitation such reasonable fees and
expenses of attorneys.  The parties  acknowledge that a change in control of the
Issuer shall not be deemed to be an Event of Default as set forth herein.

      9. In case any  provision  of this  Note is held by a court  of  competent
jurisdiction  to be excessive in scope or  otherwise  invalid or  unenforceable,
such provision shall be adjusted rather than voided, if possible,  so that it is
enforceable to the maximum extent possible,  and the validity and enforceability
of the  remaining  provisions  of this Note will not in any way be  affected  or
impaired thereby.

      10. The Holder shall have the right, if applicable,  to include all of the
Conversion Shares underlying this Note (the "Registrable Securities") as part of
any  registration  of  securities  filed by the Issuer (other than in connection
with a  transaction  contemplated  by Rule 145(a)  promulgated  under the Act or
pursuant  to Form S-4 or S-8) and must be  notified in writing of such filing as
soon as reasonably  practicable;  PROVIDED,  HOWEVER,  that the Holder agrees it
shall not have any piggy-back  registration  rights pursuant to this Note if the
Conversion Shares underlying this Note may be sold in the United States pursuant
to the provisions of Rule 144 without any  restriction  on resale.  Holder shall
have five  business  days after  receipt of the  aforementioned  notice from the
Issuer,  to notify the Issuer in writing as to whether  the Issuer is to include
Holder or not include Holder as part of such  registration;  PROVIDED,  HOWEVER,
that if any registration  pursuant to this paragraph shall be  underwritten,  in
whole or in part,  the  Issuer  may  require  that  the  Registrable  Securities
requested  for  inclusion   pursuant  to  this  paragraph  be  included  in  the
underwriting on the same terms and conditions as the securities  otherwise being
sold through the underwriters.  If in the good faith judgment of the underwriter
evidenced  in  writing of such  offering  only a limited  number of  Registrable
Securities  should be included  in such  offering,  or no such shares  should be
included,  the Holder, and all other selling  stockholders,  shall be limited to
registering  such  proportion  of their  respective  shares  as shall  equal the
proportion that

<PAGE>

the number of shares of selling  stockholders  permitted to be registered by the
underwriter  in such offering  bears to the total number of all shares then held
by all  selling  stockholders  desiring to  participate  in such  offering.  All
registration expenses incurred by the Issuer in complying with the terms of this
Note  shall  be  paid  by  the  Issuer,  exclusive  of  underwriting  discounts,
commissions and legal fees and expenses for counsel to the Holder.

      11. This Note does not entitle the Holder  hereof to any voting  rights or
other rights as a shareholder of the Issuer prior to the conversion  into Common
Stock thereof, except as provided by applicable law. If, however, at the time of
the surrender of this Note and conversion the Holder hereof shall be entitled to
convert this Note, the Conversion  Shares so issued shall be and be deemed to be
issued to such  holder  as the  record  owner of such  shares as of the close of
business on the Conversion Date.

      12. Except as expressly  provided herein or as required by law, so long as
this Note remains  outstanding,  the Issuer  shall not,  without the approval by
vote or written  consent by the  Holder,  take any action  that would  adversely
affect the rights, preferences or privileges of this Note.

      IN WITNESS WHEREOF, the Issuer has caused this Convertible Term Note to be
duly executed by an officer thereunto duly authorized.

NUWAY MEDICAL, INC.

By /s/ Dennis Calvert
   ---------------------
Name: Dennis Calvert, its President

<PAGE>

NOTICE OF CONVERSION

      (To be Executed by the Registered Holder in order to Convert the Note)

      The undersigned hereby  irrevocably  elects to convert  ___________ of the
principal  amount of the above Note into  ___________  Shares of Common Stock of
NuWay Medical,  Inc.  according to the conditions hereof, as of the date written
below.

Date of Conversion:
                    ---------------------------------

Signature:
           ------------------------------------------

Name:
     ------------------------------------------------

Address:
        ---------------------------------------------

Date of Conversion:
                    ---------------------------------

Signature:
           ------------------------------------------

Name:
     ------------------------------------------------

Address:
        ---------------------------------------------EXHIBIT 10.5

                      AMENDMENT NUMBER 1 TO PROMISSORY NOTE
                      (TO INCLUDE CONVERTIBLE LOAN TERMS )

                          Dated as of February 10, 2005

      This AMENDMENT  NUMBER 1 TO PROMISSORY NOTE (this  "Amendment") is entered
into by and between NUWAY MEDICAL,  INC., a corporation organized under the laws
of the state of Delaware (the "Borrower"),  and [redacted],  the "Investor". The
Investor  shall be referred to herein as the  "Lender".  Capitalized  terms used
herein  shall  have the  meanings  ascribed  to such  terms in Section 8 of this
Agreement.

      On November 20, 2003 lender  loaned to Borrower  $50,000  pursuant to that
certain  Promissory  Note of the same date  ("Note") . Payments on the Note were
made  during  2004 by Borrower  to Lender,  reducing  the amount due  (including
outstanding  interest) to  approximately  $35,000,  which  remains  unpaid.  The
parties  hereto desire to extend the loan Maturity Date (all  capitalized  terms
have the  meanings  set  forth in the Note) and add to the terms of the Note the
option to convert the Note into common stock of NuWay Medical, Inc.

      In  consideration  of the  mutual  covenants  and  undertakings  contained
herein,  and  for  other  good  and  valuable  consideration,  the  receipt  and
sufficiency of which are hereby acknowledged, the Borrower and the Lender hereby
agree as follows:

      1. Maturity  Date. The Maturity Date, as that term is defined in the Note,
shall be extended up to and including February 3, 2006.

      2. Interest.  The Borrower agrees to pay interest on the unpaid  principal
amount of the Term Loan from time to time outstanding hereunder at the following
rates per year, compounded annually:

                  a.    before   maturity   of  the  Term   Loan,   whether   by
                        acceleration  or otherwise,  at the rate per annum equal
                        to ten percent (10%).

                  b.    after  the  maturity  of  the  Term  Loan,   whether  by
                        acceleration  or  otherwise,  until paid,  at a rate per
                        annum equal to fifteen percent (15%).

                  c.    Interest Payment Date. Accrued interest shall be paid in
                        full on the Maturity Date.

                  d.    Basis Of Computation. Interest shall be computed for the
                        actual  number  of days  elapsed  on the basis of a year
                        consisting of 360 days, including the date the Term Loan
                        is made and  excluding  the  date  the Term  Loan or any
                        portion thereof is paid or prepaid.

                                      -1-
<PAGE>

      3.  Conversion.  The  Borrower or Lender  may, at its option,  convert the
principal amount of this Note or any portion  thereof,  and any accrued interest
thereon,  into 7,000,000 shares of fully paid and non assessable Common Stock of
the Issuer ("Conversion Shares"). The right to convert the Note may be exercised
by  telecopying an executed and completed  notice of conversion  (the "Notice of
Conversion")  to the Borrower or Lender.  Each business day on which a Notice of
Conversion  is  telecopied in  accordance  with the  provisions  hereof shall be
deemed  a  "Conversion  Date".  The  Borrower  will  transmit  the  certificates
representing  Conversion  Shares  issuable  upon  such  conversion  of the  Note
(together with the  certificates  representing the Note not so converted) to the
Lender via  express  courier or  otherwise  within ten  Business  Days after the
Conversion  Date,  provided the Borrower has received the original Note being so
converted  from the Lender.  The  Conversion  of this note may require  that the
Borrower  amend its charter to increase the number of common  shares  authorized
and therefore, in such an event, the conversion will not be allowed prior to the
Borrower's  completion  of that process.  Borrower  shall act promptly to affect
such amendments, if necessary.

            a. The number of Conversion Shares shall be adjusted as follows:  If
the Borrower shall at any time subdivide its outstanding  shares of Common Stock
into a greater number of shares of Common Stock, the number of Conversion Shares
in  effect  immediately  prior  to such  subdivision  shall  be  proportionately
increased, and conversely,  in case the outstanding shares of Common Stock shall
be combined  into a smaller  number of shares of Common  Stock,  the  Conversion
Price in effect  immediately prior to such combination shall be  proportionately
reduced.

      4. Lender  represents that it is an "Accredited  Investor" as that term is
defined in Rule 501 of  Regulation D  promulgated  under the  Securities  Act of
1933, as amended (the "Securities Act")

      5. The Amendment  and the Note it amends set for the entire  understanding
and agreement of the parties  hereto with respect to the subject  matter hereof,
and  supersedes  all  prior  or  contemporaneous  oral  or  written  agreements,
arrangements,  representations  or  understandings  of any kind  relating to the
subject matter hereof.

                                      -2-
<PAGE>

      IN WITNESS  WHEREOF,  the parties  have caused this  Amendment  to be duly
executed as of the day and year first above written.

                                                 BORROWER
                                                 NUWAY MEDICAL, INC.

                                                 /s/
                                                 ------------------------------
                                                 Dennis Calvert, President

                                                 LENDER

                                                 /s/
                                                 ------------------------------
                                                 [redacted]

                                      -3-

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