Document:

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Exhibit 10.4

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "AGREEMENT") is entered into as of March
1, 2003 (the "EFFECTIVE  DATE"), by and between NuWay Medical,  Inc., a Delaware
corporation  ("COMPANY"),  whose address is 23461 South Pointe Drive, Suite 200,
Laguna  Hills,  California  92653,  and  Joseph  Provenzano  ("EXECUTIVE"),   an
individual with reference to the following:

         A.  Executive has certain skills and abilities in the business in which
Company engages.

         B. Company wishes to employ  Executive,  and Executive wishes to accept
employment  with  Company,  all on the terms and subject to the  conditions  set
forth in this Agreement.

         Accordingly, the parties agree as follows:

1.  EFFECTIVE  DATE AND TERM.  Unless  sooner  terminated  as  provided  in this
Agreement,  including  as a  result  of  Company's  early  termination  of  this
Agreement as provided in SECTION 4 below,  Company shall employ  Executive for a
term  commencing on the Effective Date and expiring on the Fifth  anniversary of
the Effective Date (the "EXPIRATION DATE"). This Agreement shall in all respects
terminate on the Expiration Date,  except for those  obligations of either party
that are expressly  stated to continue after such time. The period  beginning on
the  Effective  Date and ending on the date  Executive's  employment  under this
Agreement actually terminates is referred to as the "TERM."

2. POSITION AND DUTIES.

2.1  GENERAL  DUTIES.  Executive  shall serve  Company as its Chief  Information
Officer  (CIO),  and in such  capacity  shall be  Company's  second  most senior
executive  officer,  as well as a member of the Board of Directors.  Executive's
duties shall be those,  which are consistent  with such titles.  In carrying out
his duties,  Executive shall use Executive's best efforts,  skills, judgment and
abilities,  and shall at all times promote  Company's  interests and perform and
discharge well and faithfully  those duties.  Executive shall report directly to
Company's  President and the Board of Directors.  In acting on Company's behalf,
Executive shall observe and be governed by all of Company's rules and policies.

2.2 FULL TIME EMPLOYMENT.  At all times during the Term,  Executive shall devote
Executive's  business time,  attention and energies to Company's  business,  and
shall  furnish  services for Company and for its  subsidiaries,  affiliates  and
divisions.  During the Term,  Executive  shall not engage in any  activity  that
would materially  interfere with or adversely affect Executive's  performance of
Executive's duties under this Agreement or which could reasonably be expected to
be  competitive  with  or  adverse  to the  business  of  Company  or any of its
subsidiaries, affiliates or divisions.

2.3 PLACE OF PERFORMANCE.  In connection with Executive's  employment under this
Agreement, Executive shall be based at Company's office located in Laguna Hills,
California.

3.       COMPENSATION.

3.1 "COMPENSATION".  "COMPENSATION" means the Base Salary (as defined below) and
any bonus that  Company is  required  to provide to  Executive  pursuant to this
SECTION 3.

3.2 BASE SALARY.  Commencing on the Effective  Date,  Executive  shall receive a
base  salary  (as may be  adjusted  from  time to time,  the "BASE  SALARY")  of
$10,900.  per month.  The Company has the option to pay the amount of $4900.  in
the form of stock as necessary.  The balance of $6000.  plus $400.  auto expense

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must be paid in cash on a bi-weekly basis.  The Company,  acting in its sole and
absolute discretion, may increase, but not decrease, the Base Salary.

3.3 BONUS.  Executive  shall be  eligible to receive a  performance  bonus in an
amount  determined as the greater of the  following:  3.3.1 As determined by the
Board of  Directors  or, 3.3.2 By  performance  review by the Board of Directors
measuring stated goals and accomplishments and by assigning a rating of 1 to 10,
with 10 being highest. If this method is used, then the rating determined by the
Board,  during the first 60 days of the first calendar quarter of each year, for
the prior calendar years work, shall be applied to the then current base salary,
annualized,  multiplied by 5%, and shall be payable to  Executive,  on or before
the 120th day of the calendar quarter, in cash.

3.3.3  An  amount  equal  to  1.5%  of  the  increase  in the  Company's  market
capitalization from beginning of the year to the end of that same year.

3.4 BENEFITS.  Executive  shall be eligible to receive such other  benefits,  if
any, as Company may, in its sole and absolute  discretion,  grant to  Executive,
but shall include the  following:  3.4.1 Heath  Insurance  Premium  Payments for
Executive's  Family  Coverage  3.4.2 Car  Allowance of $400 per month 3.4.3 Paid
Vacation  of not less than 2 weeks per year and an  additional  1 weeks for each
year of service.  3.4.4 Life insurance for the benefit of his estate, equal to 3
times his annual salary and disability  insurance.

3.4.5 Participation in the Company's stock option plan as determined by the Plan
Committee.

3.5 EXPENSES.  Company shall reimburse Executive for all reasonable and ordinary
expenses that Executive incurs or pays during the Term in performing Executive's
services under this Agreement.  Company shall,  however, be required to make any
such reimbursement only after Executive presents appropriate expense statements,
vouchers or such other  supporting  information  in  accordance  with  Company's
reimbursement policies, as Company may modify from time to time. In the event of
a dispute over any business expense reimbursement, Company shall be obligated to
notify Executive of any dispute,  within 3 months of any  reimbursement,  or the
expense shall be so classified.

3.6 PAYMENT OF  COMPENSATION.  All  Compensation  and other  amounts  payable to
Executive under this  Agreement,  whether for a period during or after the Term,
shall be paid in such installments and on such schedule as Company may from time
to time implement for general  payroll  purposes,  provided that the Base Salary
shall be paid bi-weekly. Any Base Salary required to be paid to Executive upon a
termination of Executive's  employment in excess of amounts  accrued through the
Date of  Termination  (as defined  below)  shall be paid in the same manner that
Base Salary is paid during the Term,  but not more than 30 days from the Date of
Termination.  Any payments  made by the Company shall be deemed to be applied to
base  compensation  or bonus  payments as the case may be and any payments  made
prior to the  effective  date of this  Agreement  shall  not be  applied  to any
calculations called for in this Agreement.

4. TERMINATION AND COMPENSATION UPON TERMINATION.

4.1      DEFINITIONS.

4.1.1 "DATE OF  TERMINATION"  has the  following  meaning:  (a) in the case of a
termination  of  Executive's  employment  pursuant  to  this  Agreement  due  to
Executive's  death or Disability (as defined below),  the date Executive dies or
the  time  it is  determined  that  Executive  has  suffered  a  Disability,  as
applicable;  and  (b) in  the  case  of any  other  termination  of  Executive's
employment  pursuant to this  Agreement,  the date specified for  termination of
Executive's employment in the Notice of Termination (as defined below), provided
that the  date  specified  shall be no  earlier  than  the  time the  Notice  of
Termination is delivered.

4.1.2 "NOTICE OF TERMINATION"  means a written  document  delivered by the party
terminating  this Agreement to the other party that specifies (i) the section of
this  Agreement  pursuant  to  which  termination  is  being  made  and (ii) the
effective date of the termination.

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4.2   EFFECTIVENESS  OF  TERMINATION.   Any  early  termination  of  Executive's
employment,  for any reason,  shall be effective  upon the Date of  Termination.
Upon the Date of Termination, this Agreement shall forever terminate, subject to
SECTION 4.9.2.

4.3 DEATH. Upon Executive's  death, this Agreement shall  automatically  forever
terminate.

4.4 DISABILITY.  If Executive is unable to perform Executive's duties under this
Agreement by reason of Disability,  Company may, acting in its sole and absolute
discretion, terminate Executive's employment under this Agreement by delivery to
Executive  of  a  Notice  of  Termination.   For  purposes  of  this  Agreement,
"DISABILITY"  means  Executive's   physical  or  mental  incapacity  or  illness
rendering Executive unable to perform Executive's duties under this Agreement on
a long-term  basis (i) as  evidenced  by  Executive's  failure or  inability  to
perform  Executive's  duties under this Agreement for a total of 120 days in any
360 day period,  or (ii) as determined by an independent  physician whom Company
selects.

4.5  TERMINATION BY COMPANY  WITHOUT CAUSE.  Company may, acting in its sole and
absolute  discretion,  at any time terminate  Executive's  employment under this
Agreement,  with or without  prior  notice,  with or without  cause,  or for any
reason  whatsoever  or for no reason,  by  delivering  to  Executive a Notice of
Termination.

4.6  TERMINATION  FOR  CAUSE.  Company  may at any  time  terminate  Executive's
employment  for Cause (as defined  below) by  delivery to  Executive a Notice of
Termination.  For purposes of this  Agreement,  "CAUSE"  means that the Company,
reasonably and in good faith,  forms the belief that Executive has (i) committed
any act or  omission  constituting  a material  breach of this  Agreement;  (ii)
engaged  in gross  negligence  or  willful  misconduct  in  connection  with the
Company's  business;  (iii) been convicted of, or plead guilty or nolo contendre
in  connection  with,  fraud or any  crime  that  constitutes  a felony  or that
involves moral  turpitude or theft;  (iv) resigned from this  employment for any
reason other than Company's material breach of this Agreement (v) undertaken any
act injurious to the Company's business, including insubordination or failure to
follow a directive of any of Executive's superiors.

4.7 VOLUNTARY  TERMINATION.  Executive may terminate Executive's employment with
Company at any time,  for any reason  whatsoever,  by giving Company a Notice of
Termination.

4.8 PAYMENT UPON TERMINATION.  If Executive's employment under this Agreement is
terminated:

4.8.1 by Company  pursuant to SECTION 4.5 and not pursuant to any other  section
of this agreement,  Executive shall be entitled to receive (i) all  Compensation
that has accrued through the Date of Termination,  plus (ii) a severance payment
equal to one years Compensation,  plus an additional one half years Compensation
for each year of service beginning in 2003 ; PROVIDED,  HOWEVER,  that if at any
time while Company is required to pay severance to Executive  pursuant to clause
(ii) of this  paragraph  any event  occurs that would cause the  termination  of
Executive's  employment (for example,  Executive dies) or give rise to the right
of  Company  to  terminate  this  Agreement  for  Cause  or due  to  Executive's
Disability  were  Executive  still  employed  pursuant to this  Agreement,  then
Company's   obligation  to  pay  such  severance  shall  thereupon   immediately
terminate; or

4.8.2 for any other reason,  including  for Cause,  Executive (or in the case of
Executive's death,  Executive's estate or other legal representative) shall only
be entitled to receive the Compensation accrued through the Date of Termination,
and no other amount whatsoever.

4.9      EFFECT OF TERMINATION.

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4.9.1 FULL DISCHARGE OF OBLIGATIONS.  The amounts paid to Executive  pursuant to
SECTION 4.8 upon a termination of Executive's  employment  shall constitute full
and complete  satisfaction  of Company's  obligations to Executive in connection
with this Agreement and Company's employment of Executive.  Executive shall have
no further  rights or remedies with respect to or against  Company in connection
with this Agreement or Company's employment of Executive.

4.9.2 NO LIMITATION ON EXECUTIVE'S LEGAL OBLIGATIONS.  No obligation (if any) of
Company under SECTION 4.8 to pay Executive Compensation or severance following a
termination  of  Executive's  employment  shall  in  any  way  limit  or  modify
Executive's  obligations  under applicable law to mitigate such amounts payable,
nor shall such  obligations of Company limit its rights under  applicable law to
offset  against,  or reduce,  such amounts payable by any amounts that Executive
may earn after the termination of Executive's employment.

4.9.3 SURVIVAL OF OBLIGATIONS.  Notwithstanding anything to the contrary in this
Agreement, Executive's representations,  warranties, covenants, duties and other
obligations  set forth  under  SECTIONS 5, 6, 7 and 11 of this  Agreement  shall
survive and continue after any termination of this Agreement,  regardless of the
reason for the termination.

4.10  PARACHUTE  TAX  GROSS-UP.  To  the  extent  that  the  grant,  payment  or
acceleration  of payment of any amount  under this  Agreement (a  "BENEFIT")  is
subject  to golden  parachute  excise tax under  Section  4999(a) of the Code (a
"PARACHUTE  TAX"),  Company shall pay Executive an amount of cash (the "GROSS-UP
AMOUNT") such that the "net" Benefit received by Executive under this Agreement,
after paying all applicable  Parachute  Taxes  (including  those on the Gross-Up
Amount) and any federal or state taxes on the Gross-Up Amount, shall be equal to
the Benefit that  Executive  would have  received if such  Parachute Tax had not
been applicable.

5. OWNERSHIP AND PROTECTION OF WORK PRODUCT.

5.1  Executive  shall  promptly  and fully  inform  Company of, and  disclose to
Company, any and all ideas, processes,  trademarks,  trade names, service marks,
service mark applications,  copyrights,  mask work rights,  fictitious  business
names, technology, patents, know-how, trade secrets, computer programs, original
works of authorship, formulae, concepts, themes, inventions, designs, creations,
new works, derivative works and discoveries, and all applications, improvements,
rights  and  claims  related to any the  foregoing,  and all other  intellectual
property,  proprietary  rights and work  product,  whether or not  patentable or
copyrightable, registered or unregistered or domestic or foreign, and whether or
not relating to a published  work,  that  Executive  develops,  makes,  creates,
conceives  or  reduces  to  practice  during  the  Term,  whether  alone  or  in
collaboration with others (collectively, "INVENTION IDEAS").

5.2 Each of the items  described in the  immediately  preceding  paragraph shall
constitute  Invention  Ideas  whether  or not they  relate to any of the  duties
Executive performs for Company or Company's Proprietary  Information (as defined
below),  or whether or not they are created while Executive is performing duties
for Company or otherwise  acting on Company's behalf (whether or not pursuant to
this  Agreement) or while using  Company's  equipment,  supplies,  facilities or
Proprietary Information.

5.3 All  right,  title  and  interest  in and to all  Invention  Ideas  shall be
Company's  sole and exclusive  property,  and  Executive  shall have no interest
therein,  and to the extent  permitted  by law,  all  Invention  Ideas  shall be
produced as works made for hire.  Executive shall not assert any right, title or
interest in or to any Inventions  Ideas,  and Executive  shall not undertake any
other act or omission  that would  reduce the value to Company of any  Invention
Ideas.

5.4 Executive shall assist Company, to the extent necessary, in obtaining patent
or copyright  registration on all Invention Ideas, and shall execute and deliver
all documents,  instruments and agreements, including the formal execution of an
assignment  of  copyright,  and do all things  necessary or proper (or otherwise
reasonably required by Company),  to the extent lawfully permitted,  in order to
enable  Company to obtain and enforce full and exclusive  title to all Invention

                                      -4-
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Ideas and all rights  granted or assigned  pursuant to this SECTION 5. Executive
hereby  appoints  Company as Executive's  irrevocable  attorney-in-fact  for the
purpose  of  executing  and  delivering  all  such  documents,  instruments  and
agreements,  and performing all such acts,  with the same legal force and effect
as if executed and delivered and taken by Executive.

5.5 If any of the Invention Ideas or any part of the duties  Executive  performs
for Company is based on,  incorporates or is an improvement or derivative of, or
cannot be reasonably and fully made, used, reproduced,  distributed or otherwise
exploited without using or violating, technology or intellectual property rights
owned or licensed by Executive and not assigned under this Agreement,  Executive
grants  to   Company  a   perpetual,   irrevocable,   worldwide,   royalty-free,
non-exclusive, sub-licensable right and license to exploit and exercise all such
technology and intellectual  property rights in support of Company's exercise or
exploitation  of the Invention  Ideas or exploitation of other work performed by
Executive  for Company or any  assigned  rights  (including  any  modifications,
improvements and derivatives of any of them).

5.6 Because of the difficulty of establishing  when Executive first conceives of
or develops intellectual property, proprietary rights or work product or whether
such  intellectual  property,  proprietary  rights or work product  results from
access to Company's  confidential  and  proprietary  information  or  equipment,
facilities or data, Executive agrees that any intellectual property, proprietary
rights and work  product  shall be  presumed  to be an  Invention  Idea if it is
conceived,  developed, used, sold, exploited or reduced to practice by Executive
or  with  the  aid of  Executive  within  one  year  after  the  termination  of
Executive's  employment  with Company.  Executive can rebut that  presumption if
Executive proves that the  intellectual  property,  proprietary  rights and work
product (i) was first  conceived or developed  after  termination of Executive's
employment  with and by Company;  (ii) was  conceived or  developed  entirely on
Executive's own time without using Company's equipment,  supplies, facilities or
confidential and proprietary information; and (iii) did not result from any work
performed by Executive for or on behalf of Company.

5.7 Executive acknowledges that there is no intellectual  property,  proprietary
right or work product that Executive  desires not to be deemed  Invention  Ideas
and thus to exclude from the above provisions of this Agreement.  To the best of
Executive's  knowledge,  there is no existing  contract  in  conflict  with this
Agreement or any other contract to assign ideas, processes,  trademarks, service
marks, inventions,  technology, computer programs, original works of authorship,
designs, formulas,  discoveries,  patents or copyrights that is now in existence
between Executive and any other person or entity.

5.8 This  SECTION 5 shall not operate to require  Executive to assign to Company
any of  Executive's  rights  to  inventions,  intellectual  properties  or  work
products that would not be assignable  under the provisions of California  Labor
Code  Section  2870.  Executive  represents  and  warrants to Company  that this
paragraph  constitutes  Company's  written  notification  to  Executive  of  the
provisions  of  Section  2870  of  the  California  Labor  Code,  and  Executive
represents and warrants to Company that  Executive has reviewed  Section 2870 of
the California Labor Code.

6. UNFAIR COMPETITION AND PROTECTION OF PROPRIETARY INFORMATION.

6.1 Executive shall not at any time (including after Executive's employment with
Company  terminates)  divulge,  furnish  or make  accessible  to  anyone  any of
Company's  Proprietary  Information,   or  use  in  any  way  any  of  Company's
Proprietary Information other than as reasonably required to perform Executive's
duties under this  Agreement.  Executive  shall not  undertake any other acts or
omissions  that  would  reduce the value to  Company  of  Company's  Proprietary
Information.  The  restrictions  on  Executive's  use of  Company's  Proprietary
Information shall not apply to knowledge or information that Executive can prove
is part of the public  domain  through no fault of Executive.  Executive  agrees
that such restrictions are fair and reasonable.

6.2 Executive agrees that Company's Proprietary Information constitutes a unique
and valuable  asset of Company that Company  acquired at great time and expense,
and  which  is  secret  and  confidential  and  will  only  be  available  to or
communicated  to Executive in confidence in the course of Executive's  provision
of services to Company.  Executive  also agrees that any disclosure or other use

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of Company's Proprietary Information other than for Company's sole benefit would
be wrongful,  would constitute unfair competition and will cause irreparable and
incalculable harm to Company and to its subsidiaries, affiliates and divisions.
1.1

6.3 Executive  agrees that  Company's  employees  constitute a valuable asset of
Company.  Executive  agrees that Executive  shall not, during the Term and for a
period of two years  thereafter,  directly or  indirectly,  for  Executive or on
behalf of any other person or entity,  solicit any person who was an employee of
or consultant to Company (at any time while Executive is performing any services
for  Company,  or at any time  within  twelve  months  prior  to or  after  such
solicitation) for a competing  business or otherwise induce or attempt to induce
any such persons to terminate their  employment or relationship  with Company or
otherwise  to disrupt or  interfere,  or attempt to disrupt or  interfere,  with
Company's  employment or relationships with such persons.  Executive agrees that
any such  solicitation,  inducement or interference  would be wrongful and would
constitute unfair competition,  and will cause irreparable and incalculable harm
to Company. Further,  Executive shall not engage in any other unfair competition
with Company. Executive agrees that such restrictions are fair and reasonable.

6.4 Executive recognizes and agrees that Executive has no expectation of privacy
with  respect  to  Company's   telecommunications,   networking  or  information
processing systems  (including stored computer files,  e-mail messages and voice
messages), and that Executive's activity, and any files or messages, on or using
any of those systems may be monitored at any time without notice.

6.5 As used in this Agreement,  "COMPANY'S  PROPRIETARY  INFORMATION"  means any
knowledge, trade secrets (including "trade secrets" as defined in Section 3426.1
of  the  California  Civil  Code),   Invention  Ideas,   proprietary  rights  or
proprietary  information,  intangible assets or property, and other intellectual
property   (whether  or  not  copyrighted  or   copyrightable   or  patented  or
patentable),  information and materials (including processes,  trademarks, trade
names, service marks, service mark applications,  copyrights,  mask work rights,
technology,  patents, patent applications and works of authorship),  in whatever
form,  including  electronic  form,  and all  goodwill  relating or  appurtenant
thereto, owned or licensed by Company or any of its subsidiaries,  affiliates or
divisions,  or directly or  indirectly  useful in any aspect of the  business of
Company or its subsidiaries,  affiliates or divisions,  whether or not marked as
confidential  or proprietary and whether  developed by Executive,  by Company or
its  subsidiaries,  affiliates or divisions or by others.  Without  limiting the
foregoing,  Company's Proprietary Information includes (a) the names, locations,
practices and requirements of any of Company's customers, prospective customers,
vendors,  suppliers  and  personnel  and any  other  persons  having a  business
relationship  with Company;  (b) confidential or secret  development or research
work  of  Company  or  its  subsidiaries,  affiliates  or  divisions,  including
information  concerning  any  future  or  proposed  services  or  products;  (c)
Company's  accounting,  cost,  revenue and other financial records and documents
and the  contents  thereof;  (d)  Company's  documents,  contracts,  agreements,
correspondence  and other similar business  records;  (e) confidential or secret
designs,  software code, know how, processes,  formulae,  plans and devices; and
(f) any other  confidential  or secret  aspect of the business of Company or its
subsidiaries, affiliates or divisions.

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7. RESTRICTION OF EXECUTIVE'S ACTIVITIES.  During the Term, including any period
during which the Company is making any  payments to  Executive  pursuant to this
Agreement,  neither  Executive  nor  any  person  or  entity  acting  with or on
Executive's  behalf, nor any person or entity under the control of or affiliated
with Executive,  shall,  directly or indirectly,  in any way Compete (as defined
below),  whether  for  compensation  or  otherwise,  in  any  capacity  (whether
individual or  representative,  including as an advisor,  principal,  executive,
independent contractor, agent, partner, officer, director, stockholder, employer
or employee),  with Company's business within the counties of San Francisco, Los
Angeles,  Santa  Clara,  San Mateo,  San Diego,  Orange,  Ventura or  Riverside,
California.  Executive agrees that, if Executive has any business to transact on
Executive's  own account that is similar to the business  entrusted to Executive
by Company,  Executive  shall  always give  preference  to  Company's  business.
Executive agrees that such restrictions are fair and reasonable. For purposes of
this Agreement, "COMPETE" means doing any of the following: (i) selling products
or  services  to any  person  or entity  that was or is (at any time,  including
during the Term and the period  when the  provisions  of this  paragraph  are in
effect) a client or  customer  of Company (or its  subsidiaries,  affiliates  or
divisions)  or on a list of  prospective  clients or  customers  of Company,  or
calling on, soliciting,  taking away or accepting any such person or entity as a
client or  customer,  or any attempt or offer to do any of the  foregoing;  (ii)
entering into, or any attempt or offer to enter into,  any business,  enterprise
or activity  that is in any way  similar to or  otherwise  competitive  with the
business  that  the  Company  (or its  subsidiaries,  affiliates  or  divisions)
conducted  at any  time  during  the Term or any  time  the  provisions  of this
paragraph are in effect, or (iii) directly or indirectly assisting any person or
entity to take or attempt or offer to take any of the actions  described  in the
foregoing clauses (i) or (ii).

8. NOTICES. All notices, deliveries, requests, consents and other communications
required or permitted to be given under this  Agreement  shall be in writing and
shall be  deemed  to have been duly  given  (i) if  delivered  personally,  when
delivered;  (ii) if delivered by overnight carrier, on the date of delivery;  or
(iii) if delivered by registered or certified mail, return receipt requested, on
the third business day after having been mailed in Los Angeles,  California.  In
any case, each such notice,  delivery,  request,  consent or other communication
shall be  addressed  to the  address  of the party as set forth in the  preamble
paragraph  of this  Agreement,  or to such other  address as either  party shall
designate by notice in writing to the other in accordance with this SECTION 8.

9. ASSIGNMENT; SUCCESSORS.

9.1 BY COMPANY.  This Agreement is fully  assignable by Company to any person or
entity, including any successor entity; PROVIDED,  HOWEVER, that any such person
or entity  shall be  obligated  to  perform  Company's  obligations  under  this
Agreement in accordance with its terms.

9.2 BY  EXECUTIVE.  As to  Executive,  this is a personal  service  contract and
Executive may not assign this  Agreement or any part of this  Agreement  without
Company's  prior  written  consent,  which  consent  may be given or withheld by
Company acting in its sole and absolute discretion.

10.      REMEDIES.

10.1  RELIEF.  Company  agrees that if any sort of  injunctive  relief if sought
against Executive, then Company will first have a requirement to have fully paid
to Executive, all Compensation due to Executive, and shall have an obligation to
prove irreparable harm and damages would be created if Executive were allowed to
continue his actions, and, in the event any such motion is not granted,  Company
shall pay all legal fees and costs  incurred by Executive in his defense of such
motions.

10.2 OFFSET. If Executive breaches this Agreement, Company shall have the right,
to the  greatest  extent  permissible  under the law,  to offset any  damages it
incurs with regard to such breach against any sums that remain thereafter due to
Executive under this  Agreement;  PROVIDED,  HOWEVER,  that the exercise of such
right of  offset  shall in no way  diminish  Company's  rights to seek any other
remedies it may be entitled to under this Agreement at law or in equity.  To the
extent that the Company alleges offsetting rights and withholds any payments due
hereunder, and is unable to substantiate it's claims giving cause to the offset,
then  Executive  shall receive an award of not less than 150% of the amount due,
or whatever the Arbitrator shall grant, whichever is greater, plus reimbursement
for  all  costs  associated  with  his  legal  defense  or  enforcement  of this
Agreement.

                                      -7-
<PAGE>

10.3 UNIFORM TRADE SECRETS ACT. If Executive breaches any provision of SECTION 6
of this  Agreement,  Company shall have the right to invoke any and all remedies
provided under the California  Uniform Trade Secrets Act (California  Civil Code
ss.ss.3426, et seq.) or other statutes or common law remedies of similar effect.

10.4 NON-EXCLUSIVE REMEDIES. The remedies provided to Company in this SECTION 10
are cumulative,  and not exclusive,  of any other remedies that may be available
to Company.

10.5 ARBITRATION. Any controversy,  dispute or claim between the parties to this
Agreement,  including  any claim  arising  out of,  in  connection  with,  or in
relation  to the  formation,  interpretation,  performance  or  breach  of  this
Agreement or Executive's  employment with Company,  shall be settled exclusively
by arbitration,  before a single arbitrator, in accordance with this section and
the then most applicable rules of the American Arbitration  Association,  except
as  modified  by this  SECTION  11,  but only if one (or  both)  of the  parties
requests  such  arbitration.  The  arbitrator  shall  be  bound  by the  express
provisions of this Agreement and by the laws of the  jurisdiction  chosen by the
parties  to be the law  governing  the  interpretation  of this  Agreement.  The
arbitrator  shall  permit such  discovery as required by  applicable  law and as
sufficient to adequately  arbitrate  Executive's  statutory  claims (if any have
been  asserted),  including  access to essential  documents and witnesses  where
required by applicable law.  Judgement upon any award rendered by the arbitrator
may be  entered  by any state or  federal  court  having  jurisdiction  thereof.
Notwithstanding the foregoing,  to the extent permitted by applicable law either
party may in an appropriate  manner apply to a court pursuant to California Code
of Civil Procedure Section 1281.8, or any comparable provision,  for provisional
relief,  including a temporary  restraining  order or a preliminary or permanent
injunction (such as specified in SECTION 10.1 of this Agreement),  on the ground
that the award to which the  applicant  may be  entitled in  arbitration  may be
rendered  ineffectual  without  provisional  relief.  Nor shall anything in this
SECTION 11 (to the extent  permitted by  applicable  law) prevent any party from
(i) joining any party as a defendant in any action brought by or against a third
party; (ii) bringing an action in court to effect any attachment or garnishment;
or (iii)  bringing an action in court to compel  arbitration as required by this
SECTION 11.

     If the parties are unable to agree upon an  arbitrator,  the parties  shall
select a single  arbitrator from a list of nine arbitrators drawn by the parties
at random from the "Independent" (or "Gold Card") list of retired judges. If the
parties are unable to agree upon an arbitrator from the list so drawn,  then the
parties shall each strike names alternately from the list, with the first strike
being  determined by lot. After each party has used four strikes,  the remaining
name on the list shall be the arbitrator.  If such person is unable to serve for
any reason,  the  parties  shall  repeat this  process  until an  arbitrator  is
selected.

     This agreement to resolve any disputes by binding  arbitration shall extend
to claims against any parent,  subsidiary or affiliate of each party,  and, when
acting within such capacity,  any officer,  director,  shareholder,  employee or
agent of each party,  or of any of the above,  and shall apply as well to claims
arising out of state and federal  statutes  and local  ordinances  as well as to
claims  arising under the common law. In the event of a dispute  subject to this
SECTION 11 the parties shall be entitled to reasonable  discovery subject to the
discretion of the arbitrator.  The remedial authority of the arbitrator shall be
the same as, but no greater than,  would be the remedial power of a court having
jurisdiction  over the parties and their dispute.  The arbitrator shall, upon an
appropriate  motion,  dismiss any claim  without an  evidentiary  hearing if the
party  bringing  the  motion  establishes  that he or she would be  entitled  to
summary judgment if the matter had been pursued in court litigation.

     To the  extent  permitted  by  law,  the  initial  fees  and  costs  of the
arbitrator shall be borne by the Company, with Company being responsible for the
costs and fees of the arbitration and the prevailing  party shall be entitled to
reimbursement for legal fees and costs incurred by the other.

     The  arbitrator  shall render an award and written  opinion,  and the award
shall be final and binding upon the parties.

     Any arbitration shall take place in the county of Orange, California.

<PAGE>

THE PARTIES  UNDERSTAND  THAT BY AGREEING TO ARBITRATE IN THE MANNER REQUIRED BY
THIS SECTION 11, THEY ARE WAIVING  THEIR RIGHTS TO HAVE ANY DISPUTE  ARISING OUT
OF THIS  AGREEMENT  OR  EXECUTIVE'S  EMPLOYMENT  BY  COMPANY  TRIED  BEFORE  AND
ADJUDICATED BY A JURY,  INCLUDING  DISPUTES  RELATING TO ANY CLAIM EXECUTIVE MAY
HAVE FOR  UNLAWFUL  TERMINATION  OF HER  EMPLOYMENT  OR FOR A  VIOLATION  OF ANY
FEDERAL,  STATE OR OTHER LAW OR STATUTORILY  PROTECTED RIGHTS, (SUCH AS, WITHOUT
LIMITATION,  AGE DISCRIMINATION IN EMPLOYMENT ACT, AS AMENDED,  29 U.S.C. SS.SS.
621 - 634; OLDER WORKERS BENEFIT PROTECTION ACT, AS AMENDED, 29 U.S. SS.SS. 621,
623;  TITLE VII OF THE CIVIL RIGHTS ACT OF 1964,  AS AMENDED,  42 U.S.C.  SS.SS.
2000E - 2000E-17; THE FAIR LABOR STANDARDS ACT OF 1938 AS AMENDED; THE EQUAL PAY
ACT OF 1963, AS AMENDED, 29 U.S.C. SS.SS. 206(D); THE EMPLOYEE RETIREMENT INCOME
SECURITY  ACT OF 1974,  AS AMENDED,  29 U.S.C.  SS.SS.  1001 - 1461;  THE WORKER
ADJUSTMENT AND RETRAINING  NOTIFICATION  ACT, AS AMENDED,  29 U.S.C. SS. 2101 ET
SEQ.; THE NATIONAL LABOR RELATIONS ACT, AS AMENDED,  29 U.S.C.  SS.SS.  151-169;
FAMILY AND  MEDICAL  LEAVE ACT OF 1993,  AS AMENDED,  29 U.S.C.  SS. 825 ET SEQ.
AMERICANS WITH DISABILITY ACT OF 1990, AS AMENDED,  42 U.S.C.  SS.SS.  12101 ET.
SEQ.; INFLICTION OF EMOTIONAL DISTRESS,  DEFAMATION,  PERSONAL INJURY AND BREACH
OF CONTRACT,  WHICH INCLUDE  DISCRIMINATION  ON THE BASIS OF AGE, RACE,  GENDER,
DISABILITY,  ETHNIC ORIGIN OR SEXUAL  ORIENTATION).  NEVERTHELESS,  BOTH PARTIES
AGREE TO WAIVE ALL SUCH  RIGHTS  THEY MAY HAVE TO A JURY TRIAL AND TO SUBMIT ALL
SUCH  DISPUTES  TO  BINDING  ARBITRATION  IN  ACCORDANCE  WITH THE TERMS OF THIS
SECTION 11.

                  COMPANY_______/S/_______  EXECUTIVE_______/S/________
                                    (INITIALS)                 (INITIALS)

11. NO CONFLICT. Executive represents and warrants that neither his execution of
this  Agreement  nor his  performance  under this  Agreement  will (i)  violate,
conflict with or result in a breach of any provision of, or constitute a default
(or an event that,  with notice or lapse of time,  or both,  would  constitute a
default) under,  any contract or other  obligation to which Executive is a party
or by which he is bound; or (ii) violate any judgment or other order  applicable
to Executive.  Executive shall indemnify,  defend and hold harmless Company from
and against any and all claims, liabilities, lawsuits, judgments, losses, costs,
fees and expenses  (including  reasonable  attorneys'  fees, costs and expenses)
that Company or any of its agents, affiliates, employees, shareholders, officers
or directors may suffer or incur as a result of Executive's breach or alleged or
threatened breach of any of the representations and warranties set forth in this
paragraph.

12.       GENERAL.

12.1  CAPTIONS.  The  section  headings  contained  in  this  Agreement  are for
reference  purposes  only  and  shall  not in any  way  affect  the  meaning  or
interpretation of this Agreement.

12.2  ENTIRE  AGREEMENT.  This  Agreement  sets forth the entire  agreement  and
understanding  of the  parties  with  regard to the  subject  matter  hereof and
supersedes all prior  agreements,  arrangements and  understandings,  written or
oral, between the parties.

12.3 AMENDMENTS;  WAIVERS. This Agreement may be amended, modified,  superseded,
canceled,  renewed or extended, and the terms or covenants of this Agreement may
be waived,  only by a written instrument executed by both of the parties hereto,
or in the case of a waiver,  by the party  waiving  compliance.  The  failure of
either  party at any time or times to require  performance  of any  provision of
this  Agreement  shall in no manner affect such party's right at a later time to
enforce such performance. No waiver by either party of the breach of any term or
covenant  contained in this Agreement,  whether by conduct or otherwise,  in any
one or more  instances,  shall be deemed to be, or  construed  as, a further  or
continuing  waiver of any such  breach,  or a waiver of the  breach of any other
term or covenant contained in this Agreement.

                                      -9-
<PAGE>

12.4 NO OTHER REPRESENTATIONS. No representation, promise or inducement has been
made by either party that is not embodied in this  Agreement,  and neither party
shall  be bound by or be  liable  for any  alleged  representation,  promise  or
inducement not so set forth.

12.5 SEVERABILITY. If any of the provisions of this Agreement (including SECTION
11) are  determined  to be unlawful or otherwise  unenforceable,  in whole or in
part, such determination  shall not affect the validity of the remainder of this
Agreement, and this Agreement shall be reformed to the extent necessary to carry
out its  provisions  to the  greatest  extent  possible  and,  with  respect  to
reformation of any provision of SECTION 11, to ensure that the resolution of all
conflicts between the parties  (including those arising out of statutory claims)
shall be resolved by neutral,  binding arbitration.  If a court should find that
any provision  set forth in SECTION 11 is not  absolutely  binding,  the parties
intend that any arbitration decision and award with respect to this Agreement be
fully admissible in evidence in any subsequent action, given great weight by any
finder of fact, and treated as  determinative to the maximum extent permitted by
law.

12.6  COUNTERPARTS.  This Agreement may be executed in one or more counterparts,
each of which  shall be deemed an  original,  and it shall not be  necessary  in
making  proof of this  Agreement,  to produce or account  for more than one such
counterpart.

12.7  WITHHOLDING.  Notwithstanding  anything in this Agreement to the contrary,
all payments that Company is required to make under this  Agreement to Executive
or Executive's  estate or  beneficiaries  shall be subject to the withholding of
such  amounts  relating to taxes as Company may  reasonably  determine it should
withhold pursuant to any applicable law or regulation.

12.8 TAX  CONSEQUENCES.  Company shall have no obligation to any person entitled
to the benefits of this  Agreement  with respect to any tax  obligation any such
person incurs as a result of or attributable  to this  Agreement,  including any
supplemental  agreements,  stock  option  plans or employee  benefit  plans,  or
arising from any payments made or to be made under this Agreement or thereunder.

12.9  CONSENT TO  JURISDICTION.  The  parties to this  Agreement  agree that all
actions or proceedings  arising directly or indirectly from this Agreement shall
be arbitrated or litigated before arbitrators or in courts having a situs within
Orange  County,  California;  hereby consent to the  jurisdiction  of any local,
state or federal court in which such an action or  proceeding is commenced  that
is located in Los Angeles County,  California;  agree not to disturb such choice
of forum  (including  waiving any  argument  that venue in any such forum is not
convenient);  agree  that  any  litigation  initiated  by any  party  hereto  in
connection  with this  Agreement  may be venued in either  the state or  federal
courts located in Los Angeles County, California; agree that a final judgment in
any such action or proceeding  shall be conclusive  and may be enforced in other
jurisdictions  by suit on the judgment or in any other  manner  provided by law;
and waive the personal service of any and all process upon them and consent that
all such service of process may be made by certified or registered mail,  return
receipt requested,  addressed to the respective parties at the address set forth
above.

12.10  GENDER  REFERENCES.  References  in this  Agreement  to any gender  shall
include the masculine, feminine and neuter genders.

CONSTRUCTION.  In all  instances  when  appearing in this  Agreement,  the terms
"including," "include" and "includes" shall be deemed to be followed by "without
limitation."

                            (Remainder of Page Blank)

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, the parties have duly executed this Agreement as of
the date first above written.

                                    "COMPANY"

                                      NuWay Medical, Inc.

                                               /s/
                                      By:______________________

                                      Dennis Calvert
                                      Board Member- Compensation Committee

                                     "EXECUTIVE"

                                              /s/
                                     --------------------------
                                     Joseph Provenzano

                                      -11-

<PAGE><PAGE>

Exhibit 10.5

                             JOINT VENTURE AGREEMENT

                                     BETWEEN

                               NUWAY MEDICAL, INC.

                                       AND

                                 KENYON RASHEED,
                                DOING BUSINESS AS
                             RASHEED AND ASSOCIATES,

                         WITH REGARD TO THE FORMATION OF

                       NUWAY SPORTS MEDICINE VENTURES LLC,
                     A CALIFORNIA LIMITED LIABILITY COMPANY

                                DECEMBER 1, 2002

<PAGE>
<TABLE>
<CAPTION>

                                       iii

                       NUWAY SPORTS MEDICINE VENTURES LLC

                                TABLE OF CONTENTS

                                                                                                               PAGE
<S>     <C>                                                                                                    <C>

ARTICLE I FORMATION OF LIMITED LIABILITY COMPANY..................................................................2
         1.1      Formation and Effective Date of Agreement.......................................................2
         1.2      Name and Principal Place of Business............................................................2
         1.3      Agent for Service of Process....................................................................2
         1.4      Agreement.......................................................................................2
         1.5      Business........................................................................................2
         1.6      Definitions.....................................................................................2
         1.7      Term............................................................................................3

ARTICLE II MEMBERSHIP.............................................................................................3
         2.1      Members.........................................................................................3
         2.2      Representations and Warranties..................................................................3
         2.3      Additional Members..............................................................................4
         2.4      Resignation or Withdrawal of a Member...........................................................4

ARTICLE III CONTRIBUTIONS TO CAPITAL; ISSUANCE OF SHARES..........................................................4
         3.1      LLC Shares......................................................................................4
         3.2      Contributions...................................................................................4
         3.3      Issuance of Shares; Percentage Ownership of Members.............................................4
         3.4      Record of Capital Account.......................................................................5

ARTICLE IV RESPONSIBILITIES OF THE JOINT VENTURERS................................................................5
         4.1      Responsibilities of NuWay.......................................................................5
         4.2      Responsibilities of KA NuWay....................................................................5
         4.3      Joint Responsibilities..........................................................................5

ARTICLE V MANAGEMENT..............................................................................................5
         5.1      Management by Managers..........................................................................5
         5.2      Authority of Managers...........................................................................5
         5.3      Approval Generally Required.....................................................................6
         5.4      Unanimous Approval Required.....................................................................6
         5.5      Meetings........................................................................................7
         5.6      Action without Meeting..........................................................................7
         5.7      Tax Matters Partner.............................................................................7
         5.8      Telephonic Participation........................................................................7
         5.9      Compensation of Managers........................................................................7

ARTICLE VI OFFICERS...............................................................................................7
         6.1      Officers........................................................................................7
         6.2      Election of Officers............................................................................7
         6.3      Compensation of Officers........................................................................7
         6.4      Duties of President.............................................................................8
         6.5      Duties of Chief Financial Officer...............................................................8
         6.6      Duties of Secretary.............................................................................8

                                      i
<PAGE>

ARTICLE VII action by Members.....................................................................................8
         7.1      Meetings of Members.............................................................................8
         7.2      Calling Meetings................................................................................8
         7.3      Quorum..........................................................................................9
         7.4      Voting Rights...................................................................................9
         7.5      Action without Meeting..........................................................................9
         7.6      Telephonic Participation........................................................................9

ARTICLE VIII NOTICES..............................................................................................9
         8.1      Notices.........................................................................................9
         8.2      Waiver of Notice...............................................................................10

ARTICLE IX ACCOUNTING AND RECORDS................................................................................10
         9.1      Financial and Tax Reporting....................................................................10
         9.2      Books and Records..............................................................................10
         9.3      Tax Returns....................................................................................10

ARTICLE X ALLOCATIONS............................................................................................10
         10.1     Allocation of Net Income or Net Loss...........................................................10
         10.2     Time of Allocations............................................................................11
         10.3     Special Tax Provisions.........................................................................11

ARTICLE XI DISTRIBUTIONS.........................................................................................12
         11.1     Distribution Shares............................................................................12
         11.2     Tax Distributions..............................................................................12
         11.3     Quarterly Profit Distributions.................................................................12
         11.4     Distributions in Kind..........................................................................12
         11.5     Restriction on Distributions and Withdrawals...................................................12

ARTICLE XII TRANSFER OF MEMBERSHIP...............................................................................13
         12.1     Right of First Refusal.........................................................................13
         12.2     Transfer.......................................................................................13
         12.3     Transfer Void..................................................................................14
         12.4     Admission of Transferee........................................................................14

ARTICLE XIII TERMINATION.........................................................................................14
         13.1     Termination....................................................................................14
         13.2     Effect of Bankruptcy, Death, etc...............................................................14
         13.3     Winding Up and Certificate of Cancellation.....................................................14
         13.4     Distribution of Property.......................................................................14

ARTICLE XIV DEFINITIONS..........................................................................................15
         14.1     Definitions....................................................................................15

                                       ii
<PAGE>

ARTICLE XV MISCELLANEOUS.........................................................................................16
         15.1     Amendment......................................................................................16
         15.2     Power of Attorney..............................................................................16
         15.3     Legends........................................................................................17
         15.4     Withholding Taxes..............................................................................17
         15.5     Further Assurances.............................................................................17
         15.6     Binding Effect.................................................................................17
         15.7     Governing Law..................................................................................17
         15.8     Choice of Forum................................................................................17
         15.9     Attorneys' Fees................................................................................17
         15.10    Notices........................................................................................18
         15.11    Severability...................................................................................18
         15.12    Counterparts...................................................................................18
         15.13    Entire Agreement...............................................................................18
         15.14    No Third Party Beneficiary.....................................................................19
         15.15    Preparation of Agreement.......................................................................19
         15.16    Acknowledgement of Risk........................................................................19
         15.17    Public Disclosure of Information...............................................................19

EXHIBIT A         ARTICLES OF ORGANIZATION

EXHIBIT B         CONSULTING AGREEMENT

EXHIBIT C         BUSINESS PLAN

</TABLE>

                                      iii
<PAGE>

                       NuWay sports medicine ventures llc

                             JOINT VENTURE AGREEMENT

                  THIS JOINT VENTURE  AGREEMENT is made as of the date mentioned
above, by and between,  Kenyon Rasheed, doing business as Rasheed and Associates
("KA"), and NUWAY MEDICAL, INC., ("Nuway") a Delaware corporation, as members of
NuWay Sports Medicine Ventures LLC, a California  limited liability company (the
"JV" or the "LLC").

                                    RECITALS

                  A........KA   has  been  a  development   stage  business  for
approximately  eighteen  months and has developed key contacts,  a business plan
attached hereto and  incorporated  by reference,  key vendor  relationships  and
numerous  prospective  customers who have  expressed a willingness to enter into
contractual arrangements with the newly formed Joint Venture.

                  B........Nuway is a healthcare company in the medical products
and  devices  business,  the main  focus is  bringing  real world  solutions  to
healthcare providers. The company prides itself on its technological innovations
and applications.  The company also acquires  healthcare  services  companies to
take advantage of economies of scale and vertical market opportunities.  It is a
public company traded under the symbol: NMED.

                  C.  .....KA  in its  search to  pursue  its  business  plan is
bringing  Nuway into the  project  by  agreeing  to enter  into a joint  venture
agreement  with Nuway.  The intent of the parties is to work  together to profit
from the newly formed Joint Venture.

                  D........As  a part of this new joint  venture  between KA and
Nuway,  Nuway is  agreeing  to  guaranty  for KA, the  payment of cash or freely
traded  shares of stock in Nuway  pursuant  to a  Consulting  Agreement,  by and
between Nuway and KA, which is attached hereto and incorporated by reference and
in exchange for each parties  ongoing  contribution  to the success of the joint
venture as described herein.

                  E........In  furtherance  of these  objectives,  KA and  Nuway
agrees  to form a  California  limited  liability  company  named  Nuway  Sports
Medicine  Ventures,  hereinafter  referred to as the  ("JV"),  which among other
products  will  include a system  referred to as NuWay  Medicals  Player  Record
Library System, which the JV will trademark as appropriate, and each party shall
contribute  it's  intellectual  property  and any and all  related  assets to in
exchange for it's ownership of the newly formed JV, which shall be allocated 49%
to KA and  51% to  Nuway.  This  Joint  Venture  Agreement  shall  serve  as the
Operating Agreement required by California Corporation's code section 17050(a).

<PAGE>

                  NOW  THEREFORE,   in  addition  to  the   representations  and
agreements  contained above, for good and valuable  consideration do the parties
hereto agree as follows:

                                   ARTICLE I

                     FORMATION OF LIMITED LIABILITY COMPANY

1.1 FORMATION AND EFFECTIVE  DATE OF AGREEMENT.  The Members have formed the LLC
pursuant  to the  Beverly-Killea  Limited  Liability  Company Act (the "ACT") on
December  1,  2002  by  causing  Articles  of  Organization  conforming  to  the
requirements of the Act attached hereto as EXHIBIT A to be filed with the office
of the Secretary of State of the State of California.

1.2 NAME AND PRINCIPAL PLACE OF BUSINESS. Unless and until amended in accordance
with  this  Agreement  and the Act,  the name of the LLC will be  "NuWay  sports
medicine ventures llc." The principal place of business of the LLC in California
shall initially be 23461 South Pointe Drive, Suite 200, Laguna Hills,  92653, or
in such  other  place or places as the  Managers  from time to time  unanimously
determine.

1.3 AGENT FOR SERVICE OF PROCESS. Until such time as the Managers have appointed
a different person to act in the State of California as the agent of the LLC for
service  of  process,  the LLC's  agent for  service  of process in the State of
California shall be as set forth in the Articles of Organization.

1.4 AGREEMENT. For and in consideration of the mutual covenants herein contained
and for other good and valuable  consideration,  the receipt and  sufficiency of
which is hereby acknowledged,  the Members executing this Agreement hereby agree
to the terms and  conditions of this  Agreement,  as it may from time to time be
amended.  It is the express  intention of the parties hereto that this Agreement
shall be the sole  statement of agreement  among them with respect to this joint
venture,  and,  except to the extent a  provision  of this  Agreement  expressly
incorporates  federal  income tax rules by  reference to sections of the Code or
Treasury  Regulations or is expressly  prohibited or ineffective  under the Act,
the Agreement  shall govern even when  inconsistent  with or different  from the
provisions of the Act or any other law or rule.  It is the express  intention of
the parties hereto that this Agreement  fulfill the  requirement of corporations
code  section  17050(a).  To  the  extent  any  provision  of the  Agreement  is
prohibited  or  ineffective  under the Act, the  Agreement  shall be  considered
amended to the smallest degree possible in order to make the agreement effective
under the Act. In the event the Act is  subsequently  amended or  interpreted in
such a way to make  valid  any  provision  of the  Agreement  that was  formerly
invalid,  such provision shall be considered to be a part of this Agreement from
and after the date of such interpretation or amendment.

1.5 BUSINESS.  The purpose of the LLC is to engage in any lawful act or activity
for which an LLC may be organized under the Act, provided that the LLC shall not
engage in the practice of any  profession  requiring a license under the laws of
the State of California without first obtaining such license.  The joint venture
contemplated  by  the  parties  for  the  formation  of  the  LLC  involves  the
development,  production, marketing and distribution of a medical device produce
to be used by  professional  and  amateur  sports  organizations,  as more fully
described in the business plan attached as Exhibit "C".

1.6  DEFINITIONS.  Terms not otherwise  defined in this Agreement shall have the
meanings set forth in Article XIV.

                                     2
<PAGE>

1.7 TERM.  The term of the LLC shall  begin upon the filing of the  Articles  of
Organization  and shall continue until November 30, 2102 unless its existence is
sooner terminated pursuant to Articles XII or XIII of this Agreement.

                                   ARTICLE II

                                   MEMBERSHIP

2.1  MEMBERS.  The Members of the LLC are NuWay and KA, each of whom is admitted
to the LLC as a Member as of the date this Agreement becomes effective.

2.2 REPRESENTATIONS  AND WARRANTIES.  Each Member hereby represents and warrants
to the LLC and each other Member as follows:

(a) AUTHORIZATION.  If the Member is an organization, that it is duly organized,
validly  existing,  and  in  good  standing  under  the  law  of  its  state  of
organization  and that it has full power and authority to execute and enter into
this  Agreement  and to perform its  obligations  hereunder and that all actions
necessary for the due authorization, execution, delivery and performance by that
Member of this Agreement have been duly taken.

(b) COMPLIANCE WITH OTHER INSTRUMENTS.  The Member's  authorization,  execution,
delivery,  and  performance  of this  Agreement do not  conflict  with any other
agreement or arrangement to which such Member is a party or by which it or he is
bound.

(c) PURCHASE  ENTIRELY FOR OWN ACCOUNT.  The Member is acquiring his interest in
the LLC for the Member's own account for investment purposes only and not with a
view  to or for  the  resale,  distribution,  subdivision  or  fractionalization
thereof  and  has  no  contract,   understanding,   undertaking,   agreement  or
arrangement  of any kind  with any  Person  to sell,  transfer  or pledge to any
Person his  interest or any part  thereof nor does such Member have any plans to
enter into any such agreement.

(d) INVESTMENT EXPERIENCE.  By reason of their business or financial experience,
the Members have the capacity to protect their own interests in connection  with
the  transactions  contemplated  hereunder,  are  able to bear  the  risks of an
investment  in the LLC, and at the present time could afford a complete  loss of
such investment.

(e) DISCLOSURE OF INFORMATION. The Member is aware of the LLC's business affairs
and financial condition and has acquired sufficient information about the LLC to
reach an informed and knowledgeable decision to acquire an interest in the LLC.

(f) FEDERAL AND STATE  SECURITIES  LAWS.  Assuming  federal and state securities
laws apply to the interests  described herein, the Member  acknowledges that the
interests have not been registered under the Securities Act of 1933 or any state
securities  laws,  inasmuch  as they are being  acquired  in a  transaction  not
involving  a public  offering,  and,  under  such  laws,  may not be  resold  or
transferred by the Member without  appropriate  registration or the availability
of  an  exemption  from  such  requirements.  In  this  connection,  the  Member
represents  that it is familiar  with SEC Rule 144, as presently in effect,  and
understands the resale limitations  imposed thereby and by the Securities Act of
1933.

                                       3
<PAGE>

2.3 ADDITIONAL  MEMBERS.  Additional Persons may be issued Shares of the LLC and
admitted  to the LLC as  Members  at  whatever  times  and upon  such  terms and
conditions  as  the  Managers  may  unanimously  determine.   The  admission  of
additional  Members  shall be effected by  amendment  of this  Agreement  by the
unanimous consent of all Members.

2.4  RESIGNATION  OR  WITHDRAWAL  OF A MEMBER.  Subject  to the  provisions  for
transfer  contained  in Article XI, no Member  shall have the right to resign or
withdraw  from  membership  in the LLC or withdraw  his interest in the capital,
except as may be approved unanimously by the Members.

                                  ARTICLE III

                  CONTRIBUTIONS TO CAPITAL; ISSUANCE OF SHARES

3.1 LLC SHARES.  Ownership of the LLC shall be divided into and  represented  by
shares of the LLC (the  "Shares").  The total  number of Shares which the LLC is
authorized to issue is one thousand (1,000).  Additional Shares may from time to
time be authorized, and the Shares may from time to time be divided into classes
and series,  as  unanimously  agreed upon by the  Members  and as  evidenced  by
amendment of this Agreement.

3.2  CONTRIBUTIONS.  Contemporaneously  with or forthwith after the execution of
this Agreement, each Member shall contribute assets to the capital of the LLC as
set  forth  below.   No  Member  shall  be  required  to  make  any   additional
contributions  to the capital of the LLC,  except as may be  unanimously  agreed
upon by the Members.

                  (a)......NuWay  shall  contribute  its  resources  and project
management abilities, and its access to capital to fund the growth of the JV;

(b) KA shall contribute business and strategic plans, and marketing,  sales, and
customer  services to the LLC, as more  particularly  described  in a consulting
agreement substantially in the form attached hereto as EXHIBIT B, to be executed
by and between NuWay and KA;

3.3 ISSUANCE OF SHARES;  PERCENTAGE  OWNERSHIP  OF MEMBERS.  In exchange for the
initial  contributions to capital by the Members  pursuant to this Section,  the
LLC shall issue the following shares:

(a) NuWay shall be issued 510 Shares (making its percentage ownership of the LLC
51%),

(b) KA shall be issued 490 Shares  (making his  percentage  ownership of the LLC
49%),

                  Certificates shall not be issued for the Shares, unless deemed
necessary and appropriate by the Managers or Members.  Unless  certificates  are
issued,  ownership of the Shares shall be evidenced by the  allocation of Shares
to each Member in this Agreement.

                                      -4-
<PAGE>

3.4 RECORD OF CAPITAL  ACCOUNT.  The Managers shall keep a record which shall be
maintained  with the books and records of the LLC of the  Capital  Contributions
and Capital Account of each Member, and, if certificates for Shares are issued a
ledger of Share issuances and transfers.

                                   ARTICLE IV

                     RESPONSIBILITIES OF THE JOINT VENTURERS

4.1 RESPONSIBILITIES OF NUWAY. In addition to its contribution as stated herein,
Nuway shall be responsible for the project  management  duties relating to newly
acquired  customers,  vendor selection  support and management and all financial
and corporate  management duties of the JV, including those described on Exhibit
"C".

4.2  RESPONSIBILITIES  OF KA NUWAY.  In addition to its  contribution  as stated
herein,  KA shall be responsible for all marketing,  sales, and customer service
functions of the JV, as more fully described in Exhibit "B", attached hereto and
incorporated by reference.

4.3  JOINT   RESPONSIBILITIES.   In  addition  to  the  other   obligations  and
responsibilities outlined herein, NuWay and KA shall develop quarterly operating
budgets and shall be obligated to remain within those operating budgets.  To the
extent  either party  exceeds the amount  allocated to said party in the jointly
developed  budgets,  and in  the  absence  of any  other  agreement,  the  party
exceeding  the  amount  allocated  to it in the  budget  shall be  obligated  to
contribute  cash to  cover  the  overage  incurred  by the JV,  which  shall  be
allocated to capital  contribution,  and shall not be repayable by the JV to the
party making the contribution.

                                   ARTICLE V

                                   MANAGEMENT

5.1 MANAGEMENT BY MANAGERS.  The LLC shall be managed and controlled by Managers
(the "BOARD OF MANAGERS")  who need not be Members of the LLC. Four Managers are
authorized by this Agreement,  two of whom may be appointed by NuWay, in NuWay's
sole and  absolute  discretion,  and two of whom may be appointed by KA, in KA's
sole and absolute discretion.  Two individuals are hereby appointed to the Board
of  Managers  at this  time:  Dennis  Calvert,  appointed  by NuWay,  and Kenyon
Rasheed, appointed by KA.

                  The persons  serving as Managers may be removed or replaced at
any time,  and the  number  of  Managers  authorized  may be  amended,  with the
unanimous approval of the Members. Each time a Manager withdraws,  is removed or
otherwise ceases to be a Manager, or there is a vacancy on the Board of Managers
for any other reason,  the remaining Managers shall promptly notify the Members,
who shall  elect a new  Manager  to fill such  vacancy.  If the  Members  cannot
unanimously  agree on a  Manager  to fill a  vacancy,  the spot on the  Board of
Managers  shall remain vacant until the Members can  unanimously  agree on a new
Manager.

5.2 AUTHORITY OF MANAGERS. The business of the LLC shall be managed by and under
the direction of the Board of Managers,  who may exercise all such powers of the
LLC and do all such  lawful  acts and  things  as are not by  statute  or by the
Articles  of  Organization  or by this  Agreement  directed  or  required  to be
exercised or done by the Members.  It is intended  that the powers and authority
of the Board of  Managers  shall be  substantially  the same as the  powers  and
authority of directors  of a  corporation  formed under the laws of the State of
California.

                                      -5-
<PAGE>

5.3 APPROVAL  GENERALLY  REQUIRED.  Unless the Act or this Agreement  requires a
greater  number,  all actions of the  Managers  shall  require the approval of a
majority of the Board of Managers.

5.4  UNANIMOUS  APPROVAL  REQUIRED.  In  addition  to other  provisions  of this
Agreement  that  require the  unanimous  vote of all  Managers to take action on
behalf of the LLC,  the  following  actions  cannot be taken by the  Managers on
behalf of the LLC without the unanimous consent of all Managers:

(a) Any amendments to this Agreement or the Articles of Organization of the LLC.

(b) (i) a liquidation,  dissolution or other reorganization of the LLC, (ii) the
acquisition of the LLC by another  entity by means of any  transaction or series
of related  transactions  (including,  without  limitation,  any reorganization,
merger or consolidation),  or (iii) the sale of ten percent (10%) or more of the
assets of the LLC in a single transaction or series of related transactions (all
such transactions described in these clauses (ii) and (iii), a "COMPANY SALE").

(c) The  acquisition by the LLC of another entity by means of any transaction or
series   of   related   transactions   (including,   without   limitation,   any
reorganization,  merger or consolidation),  or the purchase of assets of another
entity in a transaction  or series of  transactions  whose value is greater than
ten  percent  (10%) of the value of the assets of the LLC  measured  immediately
prior to any such asset  purchase (all  transactions  in this  paragraph  (c), a
"COMPANY ACQUISITION").

(d) The issuance of any debt or equity  securities of the LLC, the incurrence of
any  debt by the  LLC,  or the  making  or  repayment  by the LLC of any  loans,
advances or guarantees.

(e) The  establishment  of the LLC's annual  operating  budgets and any material
changes to those budgets.

(f) The  payment of any  salaries,  fees,  bonuses,  benefits  or other forms of
remuneration  to directors,  officers,  employees or  consultants  to the LLC in
excess of amounts  specifically set forth in employment  agreements  approved by
the unanimous  vote of the Managers or in the operating  budget  approved by the
unanimous vote of the Managers.

(g) The  authorization or payment of any dividends or other LLC distributions or
the cancellation, redemption or repurchase of any Shares of the LLC.

(h) Any  material  change in the business of the LLC, in the name of the LLC, or
the engagement in any business activity other than the LLC's current business.

                                      -6-
<PAGE>

(i) The creation of any  subsidiary of the LLC, or, after  creating a subsidiary
with the unanimous approval of the Managers,  the taking of any of the foregoing
actions in this Section 4.4 with respect to such subsidiary.

5.5  MEETINGS.  The  Managers  of the LLC may hold  meetings,  both  regular and
special,  either within or outside the State of California.  The meetings may be
held at such  time  and  place  as  shall  be  specified  in a  notice  given as
hereinafter  provided  at least two (2) days in advance of such  meeting,  or as
shall be specified in a written  waiver signed by all of the  Managers.  Regular
meetings of the  Managers  may be held  without  notice at such time and at such
place as shall from time to time be determined by the Managers.

5.6 ACTION WITHOUT MEETING.  Any action required or permitted to be taken by the
Managers  may be taken  without a meeting,  if all Managers  consent  thereto in
writing, and the writing or writings are filed with the books and records of the
LLC.

5.7 TAX MATTERS PARTNER.  The Members hereby authorize the Managers to designate
from time to time one of the Managers to act as the tax matters partner pursuant
to Code Section 6231(a)(7).

5.8  TELEPHONIC  PARTICIPATION.  Any Manager  shall have the right to attend any
properly called and convened meeting by means of telephonic communications which
permit each person attending the meeting, in person or by telephone, to hear and
speak to each other person so present.

5.9  COMPENSATION  OF MANAGERS.  Unless  otherwise  unanimously  approved by the
Members,  the Managers shall not be entitled to any compensation for services or
activities  undertaken  in their  capacity  as a  Manager  of the LLC,  but each
non-employee Manager shall be entitled to be reimbursed in full for any costs or
expenses reasonably incurred in performing the functions of a Manager hereunder.

                                   ARTICLE VI

                                    OFFICERS

6.1  OFFICERS.  The  officers  of the LLC  shall  include a  President,  a Chief
Financial  Officer and a Secretary to be appointed by the unanimous  vote of the
Managers.  The Managers acting by unanimous vote of the may create other offices
and elect  persons to hold such  other  offices  as they deem  appropriate.  Any
number of offices  may be held by the same  person.  The duties of any  officers
other than the President shall be established from time to time by the acting by
unanimous  vote of the  Managers  or by the  President  acting  under  authority
granted by the Managers acting by unanimous vote.

6.2  ELECTION OF  OFFICERS.  Each  officer  shall hold office for such terms and
shall  exercise such powers and perform such duties as shall be determined  from
time to time by the Managers.

6.3 COMPENSATION OF OFFICERS.  Subject to any applicable  employment  agreement,
the salaries of all officers and agents of the LLC shall be reasonably  fixed by
the unanimous  vote of the Managers or by the President  acting under  authority
granted by the Managers voting unanimously.

                                      -7-
<PAGE>

6.4 DUTIES OF PRESIDENT.  The President shall be the chief executive  officer of
the LLC and, unless the Managers  acting by unanimous vote determine  otherwise,
shall  preside at all meetings of the Members.  He shall have general and active
management of the day-to-day  business and affairs of the LLC, which may include
serving as a member of the  management  of any  subsidiary of the LLC, and shall
see that all orders and resolutions of the Managers are carried into effect.

6.5 DUTIES OF CHIEF FINANCIAL OFFICER.  The Chief Financial Officer shall be the
chief accounting officer of the LLC and shall be responsible for maintaining all
financial records of the LLC, and for preparing financial  statements of the LLC
(with the  assistance  of outside  independent  auditors,  as  prescribed by the
Managers).

6.6 DUTIES OF SECRETARY.  The Secretary shall attend all meetings of the Members
and record all the  proceedings  of the  meetings of the Members in a book to be
kept for that  purpose.  He shall  give,  or cause to be  given,  notice  of all
meetings of the Members and special  meetings of the Members,  and shall perform
such other duties as may be prescribed by the Managers acting by unanimous vote.

ARTICLE VII

                                action by Members

7.1 MEETINGS OF MEMBERS. All meetings of the Members shall be held at such place
as may be fixed  from time to time by the  Managers  and stated in the notice of
the  meeting.  Meetings  of Members for any purpose may be held at such time and
place as shall be stated  in the  notice of the  meeting  or in a duly  executed
waiver of notice  thereof.  The Members are not required to meet  annually or at
any other  regular  interval,  but only when  necessary to approve  matters that
require  Member  approval  hereunder  or when a meeting is  otherwise  called as
provided herein.

7.2      CALLING MEETINGS.

(a) Meetings of the Members,  for any purpose or purposes,  may be called by the
Managers  and shall be called by the  President at the request in writing of any
Manager, or at the request in writing of any Member, provided that such Managers
or Members  shall have  stated with  specificity  the purpose or purposes of the
proposed special meeting.

(b) Written notice of a meeting stating the place,  date and hour of the meeting
and the purpose or purposes for which the meeting is called,  shall be given not
less than ten (10) nor more than sixty (60) days before the date of the meeting,
to each Member entitled to vote at such meeting.

(c)  Business  transacted  at any  meeting  of  Members  shall be limited to the
purposes stated in the notice.

                                      -8-
<PAGE>

7.3      QUORUM.

(a) No less than a  majority  of the  holders  of all of the  Shares  issued and
outstanding  and entitled to vote thereat,  present in person or  represented by
proxy, shall constitute a quorum at a meeting of the Members for the transaction
of business,  except as otherwise provided by statute.  If such quorum shall not
be present or represented at any meeting of the Members, the Members entitled to
vote  thereat,  present in person or  represented  by proxy,  shall  adjourn the
meeting until a quorum shall be present or  represented.  If the  adjournment is
for more than thirty (30) days or if after the  adjournment a new record date is
fixed for the  adjourned  meeting,  a notice of the  adjourned  meeting shall be
given to each Member entitled to vote at the meeting.

(b) When a quorum is present at any meeting, only the vote of the holders of all
of the Shares  present in person or by proxy shall decide any  question  brought
before such meeting.

7.4      VOTING RIGHTS.
         -------------

(a) Each Member shall be entitled to one (1) vote in person or by proxy for each
Share at every  meeting of the  Members.  No proxy  shall be voted after six (6)
months from its date unless the proxy  expressly  provides for a longer  period.
Notwithstanding  the above,  neither the assigning  Member nor the Transferee of
Shares  which  have been  assigned  shall have any right to a vote or votes with
respect to any assigned  Shares. A Member who has assigned some, but not all, of
his Shares of the LLC shall be treated as a Member and entitled to a vote on all
matters to the extent of his retained Shares of the LLC.

(b) In addition to the voting rights of the Members hereunder and under the Act,
Members holding all of the outstanding  Shares shall be required to approve at a
meeting or pursuant to Section 7.5 hereof (i) any  amendment to this  Agreement,
or (ii) any Company Sale or Company Acquisition.

7.5 ACTION WITHOUT MEETING.  Any action permitted or required to be taken at any
meeting  of Members of the LLC may be taken  without a  meeting,  without  prior
notice and without a vote, if a consent in writing,  setting forth the action so
taken,  shall be signed by Members holding all of the outstanding  Shares of the
LLC.

7.6  TELEPHONIC  PARTICIPATION.  Any  Member  shall have the right to attend any
properly called and convened meeting by means of telephonic communications which
permit each person attending the meeting, in person or by telephone, to hear and
speak to each other person so present.

                                  ARTICLE VIII

                                     NOTICES

8.1  NOTICES.  Whenever  under  the  provisions  of the  Act,  the  Articles  of
Organization or this Agreement, notice is required to be given to any Member, it
shall not be construed to mean personal notice,  but such notice may be given in
writing,  by mail,  addressed to such Member at his or its address as it appears
on the records of the LLC with postage thereon prepaid, and such notice shall be

                                      -9-
<PAGE>

deemed to be given two (2) days after the same shall be  deposited in the United
States mail.  Notice to Members may also be given by telegram or facsimile.  The
address of the Members on the  records of the LLC shall be as set forth  beneath
the signature of the Members on the signature page hereof,  until changed by any
Member on the records of the LLC by proper notice.

8.2 WAIVER OF NOTICE.  Whenever  any notice is  required  to be given  under the
provisions of the Act, the Articles of Organization or this Agreement,  a waiver
thereof in writing,  signed by the person or persons  entitled  to said  notice,
whether  before or after the time  stated  therein,  shall be deemed  equivalent
thereto.

                                   ARTICLE IX

                             ACCOUNTING AND RECORDS

9.1 FINANCIAL AND TAX REPORTING.  The LLC shall prepare its financial statements
in accordance with generally accepted accounting principles as from time to time
in effect  and shall  prepare  its  income tax  information  returns  using such
methods of accounting and tax year as the Managers deem necessary or appropriate
under  the Code and  Treasury  Regulations.  At the end of each  fiscal  quarter
(March 31, June 30,  September 30 and December 31), the Managers  shall cause to
be  prepared a detailed  accounting  of the  income and  expenses  of the LLC in
accordance  with  general  accepted  accounting  principles,  with  the year end
accounting  being  prepared  by  independent  auditors  selected by the Board of
Managers.

9.2 BOOKS AND RECORDS.  Proper and complete  books of account and records of the
business of the LLC  (including  those books and records  identified  in Section
17058 of the Act) shall be kept under the  supervision  of the  Managers  at the
LLC's principal office and at such other place as designated by the Managers.

9.3 TAX RETURNS. The Managers shall timely file a Federal income tax information
return and transmit to each Member a schedule showing such Member's distributive
Share of the LLC's income,  deductions  and credits,  and all other  information
necessary for such Members timely to file their Federal income tax returns.  The
Managers similarly shall file, and provide information to the Members regarding,
all appropriate state and local income tax returns.

ARTICLE X

                                   ALLOCATIONS

10.1     ALLOCATION OF NET INCOME OR NET LOSS.

(a)  Nonrecourse  Deductions  and all  Minimum  Gain shall be  allocated  to the
Members in proportion to their ownership of Shares.

(b) After giving  effect to the  allocations  set forth in paragraph (a) hereof,
Net Income or Net Loss, or items of income,  gain, loss or deduction included in
the determination of Net Income or Net Loss, for each Accounting  Period,  shall
be allocated to the Members as follows:

                                      -10-
<PAGE>

(i) Net  Income or, to the extent  necessary,  items of income or gain,  for the
Accounting  Period  shall be  allocated  to  Members  in an amount  equal to the
excess,  if any, of (a) the sum of such Member's  Capital Account as of the last
day of the  Accounting  Period  plus any  distributions  made by the LLC to such
Member during the Accounting  Period,  over (b) the sum of such Member's Capital
Account  as  of  the  beginning  of  the  Accounting  Period  plus  any  Capital
Contributions made during the Accounting Period; and

(ii) Net Loss, or to the extent  necessary  items of loss or deduction,  for the
Accounting  Period  shall be  allocated  to  Members  in an amount  equal to the
excess,  if  any,  of (a) the sum of such  Member's  Capital  Account  as of the
beginning of the Accounting  Period plus any Capital  Contributions  made during
the Accounting  Period,  over (b) the sum of such Member's Capital Account as of
the last day of the Accounting Period plus any distributions  made by the LLC to
such Member during the Accounting Period.

(c) The income, gain, loss or deduction allocated to a Member shall include each
item which is included in the determination of Net Income or Net Loss under this
Agreement,  and in the event that it is necessary  to allocate  items of income,
gain,  loss or deduction to any Member under this Section 10.1, the  allocations
shall  be made in such a  fashion  as to  cause  the  Members  to have  the same
percentage  allocation  of all  items  of  income  or  gain,  or of all  loss or
deduction.

10.2  TIME  OF  ALLOCATIONS.  The Net  Income  or Net  Loss of the LLC for  each
Accounting Period shall be allocated to the Members at the end of the Accounting
Period in accordance with the provisions of Section 9.1 above.

10.3     SPECIAL TAX PROVISIONS.

(a) PARTNERSHIP TAX TREATMENT.  The Members expect and intend that the LLC shall
be treated as a partnership  for all federal income tax purposes and each Member
and the  Managers  agree that they (i) will  elect to be taxed as a  partnership
under applicable Treasury Regulations;  and (ii) will not on any federal, state,
local or other tax return  take a  position,  and shall not  otherwise  assert a
position, inconsistent with such expectation and intent.

(b) TAX ALLOCATIONS.  Except as otherwise provided in this Article VII, items of
income,  gain,  loss or deduction  recognized  for income tax purposes  shall be
allocated  in the same manner that the  corresponding  items  entering  into the
calculation of Net Income and Net Loss are allocated pursuant to this Agreement.

(c) SECTION 704(C)  ADJUSTMENTS.  In accordance with Code Section 704(c) and the
Treasury Regulations thereunder,  items of income, gain, loss and deduction with
respect to an asset, if any, contributed to the capital of the LLC shall, solely
for tax purposes,  be allocated between the Members so as to take account of any
variation  between the  adjusted  basis of such  property to the LLC for federal
income tax purposes and its value upon contribution to the LLC.

                                      -11-
<PAGE>

(d) SECTION 754 ELECTION.  A Section 754 election may be made for the LLC at the
sole  discretion of the Managers.  In the event of an adjustment to the adjusted
tax basis of any LLC asset  under Code  Section  734(b) or Code  Section  743(b)
pursuant to a Section 754  election by the LLC,  subsequent  allocations  of tax
items shall reflect such  adjustment  consistent  with the Treasury  Regulations
promulgated under Sections 704, 734 and 743 of the Code.

(e)  ALLOCATIONS  UPON  TRANSFERS OF LLC  INTERESTS.  If,  during an  Accounting
Period, a Member (the "TRANSFERRING MEMBER") transfers Shares to another person,
items of Net Income and Net Loss,  together with  corresponding  tax items, that
otherwise  would have been allocated to the  Transferring  Member with regard to
such Accounting  Period shall be allocated  between the Transferring  Member and
the  substitute  Member in accordance  with their  respective  Shares during the
Accounting  Period  using any method  permitted  by Section  706 of the Code and
selected by the Managers.

                                   ARTICLE XI

                                  DISTRIBUTIONS

11.1  DISTRIBUTION  SHARES.  1. All distributions by the LLC to Members shall be
made  to the  Members  in  proportion  to  their  ownership  of  Shares  and the
respective rights of any classes and series of Shares that may from time to time
be created as permitted in this Agreement.

11.2 TAX  DISTRIBUTIONS.  In  order  to  permit  Members  to pay  taxes on their
allocable share of the taxable income of the LLC, the Managers shall,  except as
prohibited by Section 10.5, cause the LLC to distribute,  as soon as practicable
after the end of each year,  an amount  equal to the excess,  if any, of (a) the
product of (i) the  taxable  income of the LLC for the  just-ended  Fiscal  Year
multiplied by (ii) 45%, over (b) any Section 10.3  distributions made during the
just-ended Fiscal Year. The percentage referred to in clause (a)(ii) above shall
be increased (or  decreased)  from time to time by the increase (or decrease) in
the maximum rate of tax imposed on individual taxpayers under the Code.

11.3 QUARTERLY PROFIT  DISTRIBUTIONS.  On the last business day of each quarter,
the LLC shall  distribute to the Members fifty percent (50%) of all cash on hand
in excess of the LLC's anticipated expenses for the following quarter,  based on
the operating  budgets  agreed upon by the unanimous  agreement of the Managers.
Notwithstanding the foregoing  distribution  requirements,  at any time upon the
unanimous  agreement  of the  Managers,  the  Managers  may  elect  not to  make
distributions  required by this  Section 10.3 in order to  accumulate  funds for
working capital purposes or otherwise.

11.4  DISTRIBUTIONS  IN KIND.  All  distributions  shall be made in cash or cash
equivalents  unless  the  Managers  voting  unanimously  shall  have  approved a
distribution of assets in kind.

11.5     RESTRICTION ON DISTRIBUTIONS AND WITHDRAWALS.

(a)  RECOUPING  INVESTMENTS.  All  investments  by either  KA or Nuway,  whether
directly  into the JV or on  behalf of the JV,  from the date of this  agreement
forward shall be recouped by the  investing  party prior to any  calculation  of
profit,  which shall include direct costs incurred by Nuway and Nuway's  payment
of  consulting  fees to KA  pursuant  to the  Consulting  Agreement  attached as
Exhibit "B".

                                      -12-
<PAGE>

(b)  REPAYMENT  OF COSTS.  The JV shall repay to its  members  any direct  costs
incurred by said party prior to making  profit  distributions,  or as  otherwise
agreed to by the parties.

(c) NO  DISTRIBUTIONS  ABOVE FAIR VALUE. The LLC shall not make any distribution
to the Members unless  immediately after giving effect to the distribution,  all
liabilities  of the LLC,  other than  liabilities to Members on account of their
interest in the LLC and liabilities as to which recourse of creditors is limited
to  specified  property  of the LLC,  do not  exceed  the fair  value of the LLC
assets,  provided  that the fair  value of any  property  that is  subject  to a
liability as to which  recourse of creditors is so limited  shall be included in
the LLC assets  only to the extent that the fair value of the  property  exceeds
such liability.

(d) LIABILITY FOR IMPROPER  DISTRIBUTIONS.  NO MEMBER SHALL BE LIABLE TO THE LLC
FOR THE AMOUNT OF A  DISTRIBUTION  RECEIVED  PROVIDED  THAT,  AT THE TIME OF THE
DISTRIBUTION, SUCH MEMBER DID NOT KNOW THAT THE DISTRIBUTION WAS IN VIOLATION OF
SECTION 10.5(A).  A MEMBER WHICH RECEIVES A DISTRIBUTION IN VIOLATION OF SECTION
10.5(A),  AND WHICH KNEW AT THE TIME OF THE  DISTRIBUTION  THAT THE DISTRIBUTION
VIOLATED  SUCH  CONDITION,  SHALL BE  LIABLE  TO THE LLC FOR THE  AMOUNT  OF THE
DISTRIBUTION.

                                  ARTICLE XII

                             TRANSFER OF MEMBERSHIP

12.1 RIGHT OF FIRST REFUSAL. Each member desiring to sell its interest in the JV
shall be obligated to give the other members a unilateral right of first refusal
to acquire the selling member's  interest in the JV. If the selling member is an
original  member of the JV, then the other original  member shall have the right
of first  refusal.  If the  selling  member is a member  other than an  original
member of the LLC, then each member has the right of first  refusal,  subject to
the terms herein.  The non-selling  members have 90 days from receipt of written
notice by the selling  member in which to  consummate  the sale, or the right to
purchase said member's  interest  shall be forfeited,  leaving the selling party
free to sell it's  ownership  interest to a third party at market price.  In the
event of a tender of an offer to buy, by one party to the other,  the  receiving
party shall be entitled to match the offer tendered and acquire the interests of
the other,  so long as it is  consummated  within 60 days of notice of intent to
buy.

12.2  TRANSFER.  Subject to the  provisions of the Right of First  Refusal,  any
Member may sell, encumber, mortgage, assign or otherwise transfer any portion of
his Shares only if (i) the  non-transferring  Member(s) in their sole discretion
unanimously  agree to the  transfer,  (ii) the  Transferee  shall have agreed in
writing to assume all of the  obligations  of the  assignor  with respect to the
Shares assigned  (including the obligations  imposed hereunder as a condition to
any  transfer),  and (iii) the  non-transferring  Members  shall have  concluded
(which conclusion may be based upon an opinion of counsel  satisfactory to them)
that such  assignment or disposition  would not (A) result in a violation of the
Securities  Act of 1933 as  amended,  or any  other  applicable  statute  of any
jurisdiction; (B) result in a termination of the LLC for Federal or state income
tax  purposes or result in the LLC being taxed as a  corporation  for Federal or
state  income tax  purposes;  or (C) result in a violation  of any law,  rule or
regulation by the  transferring  Member,  the  Transferee,  the LLC or the other
Members.

                                      -13-
<PAGE>

12.3  TRANSFER  VOID.  Any  purported  transfer,  sale,  encumbrance,  mortgage,
assignment,  or disposition of Shares in  contravention of this Article XI shall
be void and of no effect to, on or against the LLC, any Member,  any creditor of
the LLC or any claimant against the LLC.

12.4  ADMISSION  OF  TRANSFEREE.  Each  Person  to whom  any  Shares  have  been
transferred  in accordance  with the terms of this  Agreement or by operation of
law shall  immediately  be admitted as a Member of the LLC with  respect to such
Shares.  The transferee  Member shall have all the rights and powers and will be
subject to all the  restrictions  and  liabilities of the Member who transferred
the Shares.  The  admission of a transferee  Member shall not release any Member
who  previously  assigned  the Shares  from  liability  to the LLC that may have
existed prior to such substitution.

                                  ARTICLE XIII

                                   TERMINATION

13.1  TERMINATION.  The LLC shall be dissolved,  its assets  disposed of and its
affairs wound up upon the first to occur of the following:

(a) the expiration of its stated term;

(b) the unanimous vote of the Members;

(c) the consummation of a Buyout pursuant to Article XIII;

(d) the entry of a decree of judicial dissolution under the Act.

13.2  EFFECT OF  BANKRUPTCY,  DEATH,  ETC.  The death,  bankruptcy,  retirement,
resignation,   expulsion  or  dissolution  of  a  Member  shall  not  cause  the
dissolution of the LLC provided that immediately  following any such event there
are at least two  Members,  or, if there are not two  Members  at such  time,  a
second Member is admitted within ninety (90) days of such event.

13.3 WINDING UP AND CERTIFICATE OF CANCELLATION. The winding up of the LLC shall
be completed when all debts,  liabilities  and  obligations of the LLC have been
paid and discharged or reasonably adequate provision therefor has been made, and
all of the remaining property and assets of the LLC have been distributed to the
Members.  Upon the  completion  of  winding  up of the  LLC,  a  Certificate  of
Cancellation shall be filed with the California Secretary of State.

13.4  DISTRIBUTION OF PROPERTY.  Upon dissolution and winding up of the LLC, the
affairs of the LLC shall be wound up and the LLC liquidated by the Members.  The
assets of the LLC shall be applied to repay creditors of the LLC in the order of
priority  provided by law. Except as provided in Section 13.6(b),  the remaining
balance of assets of the LLC after  satisfaction of the obligations to creditors
shall be distributed to the Members in proportion to the relative  percentage of
Shares owned by each at the time of the distribution.

                                      -14-
<PAGE>

                                  ARTICLE XIV

                                   DEFINITIONS

14.1     DEFINITIONS. The following terms shall have the meanings set forth
for purposes of this Agreement:

(a) "ACCOUNTING  PERIOD" shall mean for each Fiscal Year the period beginning on
the 1st of January and ending on the 31st of December;  provided  however,  that
the first  Accounting  Period shall commence on the date of formation of the LLC
and shall end on December 31, 2002; and provided, further, that a new Accounting
Period  shall  commence on any date on which a new Member is admitted to the LLC
or a Member ceases to be a Member for any reason.

(b)  "AGREEMENT"  shall mean this Joint  Venture  Agreement as the same shall be
amended from time to time.

(c) "CAPITAL  ACCOUNT"  means with respect to each Member the amount,  as of the
date on which the  determination  is made,  which would be  distributed  to such
Member under this Agreement,  if on such date, all property of the LLC were sold
for an amount equal to its book value and the LLC immediately liquidated.

(d)  "CAPITAL  CONTRIBUTION"  of a Member  shall  mean that  amount  of  capital
actually contributed by the Member to the LLC pursuant to Article III or Section
2.4 hereof.

(e) "CODE" shall mean the Internal Revenue Code of 1986, as amended.

(f) "EBITDA" means earnings before income tax, depreciation and amortization, as
calculated in accordance with generally accepted accounting principles.

(g) "FISCAL  YEAR"  shall mean the period from  January 1 to December 31 of each
year, or as otherwise required by law.

(h) "MANAGERS" shall mean the natural persons  responsible for management of the
LLC.

(i)  "MEMBERS"  shall  mean  all  Members,   including  substitute  Members  and
new-original-issuance Members.

(j)  "MINIMUM  GAIN" has the  meaning set forth in  Sections  1.704-2(b)(2)  and
1.704-2(d) of the Treasury Regulations.

(k) "NET  INCOME OR NET LOSS"  shall mean for any  Accounting  Period the amount
computed  as of the last day  thereof of the net income or loss  computed  under
generally accepted accounting principles.

                                      -15-
<PAGE>

(l) "NONRECOURSE  DEDUCTIONS" has the meaning set forth in Section 1.704-2(b)(1)
of the Treasury Regulations.

(m) "OFFICERS" shall mean those natural persons,  appointed from time to time by
the Managers, who have the same rights, powers, privileges, duties, obligations,
liabilities,  restrictions and immunities,  as near as may be, as the respective
officers of the Deemed Corporation.

(n)  "PERSON"  shall  mean a natural  person,  partnership  (whether  general or
limited and whether  domestic or foreign),  limited  liability  company,  trust,
estate, association,  corporation, custodian, nominee or any other individual or
entity in its own or representative capacity.

(o) "TRANSFEREE"  means any person to whom Shares are transferred or assigned in
compliance with ARTICLE XII.

(p) "TREASURY REGULATIONS" means regulations issued pursuant to the Code.

                                   ARTICLE XV

                                  MISCELLANEOUS

15.1 AMENDMENT.  (a) The Managers shall have the duty and authority to amend the
Articles of  Organization  or this  Agreement as and to the extent  necessary to
reflect any and all changes or corrections  necessary or appropriate as a result
of any  action  taken  by the  Members  in  accordance  with  the  terms of this
Agreement.

15.2 POWER OF  ATTORNEY.  By signing  this  Agreement,  each Member  irrevocably
designates  and appoints the  Managers,  or any of them,  as his true and lawful
attorney,  in his name,  place and stead, to make,  execute,  sign and file such
instruments,  documents or certificates  which may from time to time be required
by the laws of the United States of America and the State of California  and any
political  subdivision  thereof or any other state or political  subdivision  in
which the LLC shall do  business to carry out the  purposes  of this  Agreement,
except where such action requires the express approval of the Members hereunder.
Such attorney is not hereby  granted any authority on behalf of the  undersigned
Members  to  amend  this  Agreement  except  that as  attorney  for  each of the
undersigned Members,  the Managers,  or any of them, shall have the authority to
amend this Agreement and the LLC's Articles of Organization to the extent as may
be required to give effect to the  transactions  below  following  any necessary
approvals or consents of the Members or Managers, as the case may be:

(a) Extensions of the term of the LLC;

(b) Admissions of additional Members;

(c) Transfer of a Member's Shares;

(d) Withdrawals or distributions; and

(e) Contributions of additional capital.

                                      -16-
<PAGE>

                  The  Managers  shall  provide  to the  Members  copies  of all
documents  executed pursuant to the power of attorney  contained in this Section
15.2.

15.3 LEGENDS.  If any certificates are issued  evidencing a Member's interest in
the LLC, each certificate shall bear a legend to the effect that the Shares have
not been  registered  under the  Securities  Act of 1933,  as  amended,  and are
subject  to the  restrictions  on  transferability  and sale  set  forth in this
Agreement and under the Act.

15.4  WITHHOLDING  TAXES. In the event that the LLC is obligated to withhold and
pay any taxes with respect to any Member, any tax required to be withheld may be
withheld  from any  distribution  otherwise  payable to such Member,  or in lieu
thereof upon  remittance to the appropriate tax authority may be charged to that
Member's  Capital  Account as if the amount of such tax had been  distributed to
such Member.

15.5 FURTHER  ASSURANCES.  The parties  agree to execute and deliver any further
instruments or documents and perform any additional acts which are or may become
necessary to effectuate and carry on the LLC created by this Agreement.

15.6  BINDING  EFFECT.  Subject to the  restrictions  on  transfer  set forth in
ARTICLE XII, this Agreement  shall be binding on and inure to the benefit of the
Members  and  their  respective  transferees,   successors,  assigns  and  legal
representatives.

15.7 GOVERNING LAW. This Agreement  shall be governed by and construed under the
laws of the State of  California  as  applied  to  agreements  among  California
residents entered into and to be performed entirely within California.

15.8  CHOICE  OF  FORUM.  The  parties  agree  that any  dispute  regarding  the
interpretation or validity of, or otherwise arising out of this Agreement, shall
be subject to the exclusive  jurisdiction of the California  State Courts in and
for Orange  County,  California  or, in the event of federal  jurisdiction,  the
United States District Court for the Southern District of California  sitting in
Orange  County,  California,  and each  party  hereby  agrees  to  submit to the
personal and exclusive jurisdiction and venue of such courts and not to seek the
transfer of any case or proceeding out of such courts.

15.9 ATTORNEYS' FEES. If a party to this Agreement shall bring any action, suit,
counterclaim, appeal, arbitration, or mediation for any relief against any other
party or parties,  declaratory  or otherwise,  to enforce the terms hereof or to
declare  rights  hereunder  (collectively,  an  "ACTION"),  the losing  party or
parties  shall  pay to the  prevailing  party or  parties a  reasonable  sum for
attorneys'  fees and costs  incurred in  bringing  and  prosecuting  such Action
and/or  enforcing  any  judgment,  order,  ruling,  or  award  (collectively,  a
"DECISION") granted therein, all of which shall be deemed to have accrued on the
commencement  of such  Action and shall be paid  whether  or not such  Action is
prosecuted  to a Decision.  Any Decision  entered in such Action shall contain a
specific  provision  providing  for the  recovery of  attorneys'  fees and costs
incurred in enforcing such Decision.  The court or arbitrator may fix the amount
of reasonable  attorneys' fees and costs on the request of either party. For the
purposes of this paragraph,  attorneys' fees shall include,  without limitation,
fees incurred in the following: (1) postjudgment motions and collection actions;

                                      -17-
<PAGE>

(2) contempt  proceedings;  (3)  garnishment,  levy,  and debtor and third party
examinations;  (4) discovery; and (5) bankruptcy litigation.  "PREVAILING PARTY"
within the meaning of this paragraph includes,  without limitation,  a party who
agrees to dismiss an Action on the other party's  payment of the sums  allegedly
due  or  performance  of  the  covenants  allegedly  breached,  or  who  obtains
substantially the relief sought by it.

15.10 NOTICES.  All notices,  requests,  demands, and other communications under
this  Agreement  shall be in writing and shall be deemed to have been duly given
(i) on the date of service if served  personally  on the party to whom notice is
to be  given,  (ii) on the  second  day  after  date of  service  if by  private
airborne/overnight  delivery  service or (iii) on the fifth day after mailing if
mailed  to the  party  to whom  notice  is to be  given,  by first  class  mail,
registered or certified, postage prepaid, and properly addressed as follows:

To Nuway                       Nuway Medical, Inc.
                               23461 South Pointe Suite 200
                               Laguna Hills, CA. 92653
                               Phone:  (949) 454-9011
                               Fax: (949) 454-9066
                               www.nuwaymedical.com
                               Email:  Nuwaymedical@aol.com

To KA                          Attention:
                               Kenyon Rasheed, doing business as
                               Rasheed & Associates
                               Address: _______________________
                               ------------------------------

                               (949) 388-9480 off
                               (949) 633-7595 cell
                               www.rasheedassociates.com

         A  party  may  change  his/her  or its  address  for  purposes  of this
paragraph  by  giving  written  notice of the new  address  to each of the other
parties in the manner set forth above.

15.11  SEVERABILITY.  All provisions  contained  herein are severable and in the
event that any of them shall be held to be to any  extent  invalid or  otherwise
unenforceable  by any court of competent  jurisdiction,  such provision shall be
construed as if it were  written so as to  effectuate  to the greatest  possible
extent the parties'  expressed  intent;  and in every case the remainder of this
Agreement shall not be affected  thereby and shall remain valid and enforceable,
as if such affected provision were not contained herein.

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

15.13 ENTIRE  AGREEMENT.  This Agreement  constitutes the entire agreement among
the parties with respect to the subject matter hereof and completely  supersedes
all  prior  or   contemporaneous   agreements,   understandings,   arrangements,
commitments,  negotiations  and  discussions  of the  parties,  whether  oral or
written  (all of which shall have no  substantive  significance  or  evidentiary

                                      -18-
<PAGE>

effect). Each party acknowledges, represents and warrants that he has not relied
on any representation, agreement, understanding, arrangement or commitment which
has not been  expressly set forth in this  Agreement.  Each party  acknowledges,
represents and warrants that this Agreement is fully  integrated and not in need
of parol evidence in order to reflect the intentions of the parties. The parties
specifically  intend  that the literal  words of this  Agreement  shall,  alone,
conclusively determine all questions concerning the parties' intent.

15.14 NO THIRD PARTY BENEFICIARY.  Nothing in this Agreement,  whether expressed
or implied,  is intended to create any third party  beneficiary  obligations and
the parties hereto specifically  declare that no person or entity, other than as
set forth in this  Agreement,  shall have any rights  hereunder  or any right of
enforcement hereunder.

15.15 PREPARATION OF AGREEMENT. It is acknowledged by each party that such party
either had  separate and  independent  advice of counsel or the  opportunity  to
avail itself or himself of same. In light of these facts it is acknowledged that
no party shall be construed to be solely  responsible  for the drafting  hereof,
and  therefore  any  ambiguity  shall not be construed  against any party as the
alleged draftsman of this Agreement.

15.16  ACKNOWLEDGEMENT  OF RISK. The parties understand that when agreements are
secured with customers,  as  contemplated in the business plan attached  hereto,
the time,  personnel  limitations  and  relative  sophistication  and  practical
limitations  of  technology  may come to bear on the time and cost of execution,
which  could lead to failure of the JV.  Nuway has agreed to enter into the role
as Project Manager,  which shall necessitate the use of outside  consultants and
experts by the JV to properly execute for newly acquired customers of the JV. KA
has  represented  it has the  relationships,  key  contacts and ability to close
prospective  contracts,  and both parties acknowledge the  interrelationships of
operations to sales which  requires that both parties  perform  competently  and
communicate  continually.  In the  event  KA is  unable  to close  contracts  in
accordance  with the minimum  performance as contemplated  herein,  the JV could
fail.

(a)  Limited  Expertise.  Nuway has shown  general  competency  in the  business
matters and overview of the applicable  technology  associated with the Venture,
but has made no  representation as to it's status as any sort of expert or final
source of technical  expertise,  but rather is being added to the JV in exchange
for it's  commitment  to  perform  as a project  manager  to assist in  finding,
securing, and buying the technology,  software,  services, hardware and the like
to execute newly acquired contracts on behalf of the JV. KA has shown an overall
grasp of the business  opportunity and the selling  process  associated with the
closing of customer  accounts  and expects to meet the  minimum  performance  as
contemplated herein.

15.17 PUBLIC  DISCLOSURE OF  INFORMATION.  NuWay shall have the sole  authority,
without  limitation,  to draft and  disseminate  any public  announcements  with
regards to the JV.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -19-
<PAGE>

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Joint Venture Agreement as of the day and year first above written.

NUWAY MEDICAL, INC., a Delaware corporation

By:       /S/
    --------------------------
         DENNIS CALVERT, President
Address: 23461 South Pointe Drive
            Suite 200
            Laguna Hills, CA  92653
Facsimile:  (949) 454-9066

Kenyon Rasheed, doing business as
Rasheed & Associates
By:           /S/
    --------------------------
         KENYON RASHEED
Address:

Facsimile:

                                      -20-
<PAGE>

                                    EXHIBIT A

                            ARTICLES OF ORGANIZATION

                                   (attached)

                                       1
<PAGE>

                                    EXHIBIT B

                            FORM CONSULTING AGREEMENT

                                   (attached)

                                       2

<PAGE>

                                    EXHIBIT C

                                  BUSINESS PLAN

                                   (attached)

                                       3

<PAGE>

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