Document:

Exhibit 10.2
                                    EXHIBIT A

                           SECOND AMENDED AND RESTATED
                              CONVERTIBLE TERM NOTE

$ 420,000                                                      Chicago, Illinois
                                              Originally Executed: June 10, 2003
                                  Amended and Restated Effective: March 30, 2004
                       Second Amendment and Restatement Effective: July 29, 2005
                                                      Maturity Date: May 1, 2006

      FOR VALUE RECEIVED, NUWAY MEDICAL, INC., a corporation organized under the
laws of the state of Delaware ("Borrower"), promises to pay to the order of
AUGUSTINE II, LLC, a limited liability company formed under the laws of the
State of Delaware (hereafter, together with any subsequent holder hereof, called
"Lender"), at its office 141 West Jackson Blvd., Suite 2182, Chicago, Illinois
60604, or at such other place as Lender may direct, the principal sum of FOUR
HUNDRED TWENTY THOUSAND UNITED STATES DOLLARS ($420,000) (the "Loan"), payable
in full at the Maturity Date indicated above or at an earlier date as provided
in Section 3.2 of the Term Loan Agreement (as defined hereinafter). This Note is
convertible at the Lender's option as provided below.

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

      This Note evidences borrowings under and has been issued by the Borrower
in accordance with the terms of the Term Loan Agreement. This Note amends and
restates in its entirety the Amended and Restated Term Note which was previously
executed and delivered by Borrower to Lender on March 30, 2004 (the "First
Amended Note"). It is the intent of the parties hereto that the First Amended
Note, as restated hereby, shall re-evidence the Term Loan under the Loan
Agreement and is in no way intended to constitute repayment or a novation of any
of the indebtedness which is evidenced by the Loan Agreement or the First
Amended Note or any of the other Loan Documents executed in connection
therewith. The Lender and any holder hereof is entitled to the benefits of the
Loan Agreement and the other Loan Documents, and may enforce the agreements of
the Borrower contained therein, and any holder hereof may exercise the
respective remedies provided for thereby or otherwise available in respect
thereof, all in accordance with the respective terms thereof. All capitalized
terms used in this Note and not otherwise defined herein shall have the same
meanings herein as in the Loan Agreement.

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

<PAGE>

      This Note evidences indebtedness incurred under a Term Loan Agreement
dated as June 10, 2003, as amended by Amendment No. 1 to Term Loan Agreement
dated as of March 30, 2004 and Amendment No. 2 dated as of the date hereof
executed by and between Borrower and Lender (and, if amended, restated or
replaced, all amendments, restatements and replacements thereto or therefor, if
any) (the "Term Loan Agreement"), to which Term Loan Agreement reference is
hereby made for a statement of its terms and provisions, including without
limitation those under which this Note may be paid prior to its due date or have
its due date accelerated.

      This Note and any document or instrument executed in connection herewith
shall be governed by and construed in accordance with the internal law of the
State of Illinois, and shall be deemed to have been executed in the State of
Illinois. Unless the context requires otherwise, wherever used herein the
singular shall include the plural and vice versa. This Term Note shall bind
Borrower successors and assigns, and shall inure to the benefit of Lender, its
successors and assigns, except that Borrower may not transfer or assign any of
its rights or interest hereunder without the prior written consent of Lender.
Borrower agrees to pay upon demand all expenses (including without limitation
reasonable attorneys' fees, legal costs and expenses, and time charges of
attorneys who may be employees of Lender, in each case whether in or out of
court, in original or appellate proceedings or in bankruptcy) incurred or paid
by Lender or any holder hereof in connection with the enforcement or
preservation of its rights hereunder or under any document or instrument
executed in connection herewith. Borrower expressly and irrevocably waives
presentment, protest, demand and notice of any kind in connection herewith.

Conversion

      (a) Lender may, at any time while the Note is outstanding prior to or on
the Term Loan Maturity Date and thereafter during the continuance of any Event
of Default, convert (a "Conversion Event") some or all of the outstanding
principal and, if Lender so elects, some or all accrued and unpaid interest
hereunder into Common Stock of the Borrower, par value $0.00067 (the "Common
Stock").

      (b) To effect a Conversion Event Lender shall execute and deliver to the
Company a Conversion Notice (attached hereto as Exhibit 1), and, in the event
that the entire amount outstanding under this Note is converted, Lender shall
also surrender this Note to the Company for cancellation.

      (c) The number of shares to be received by Lender upon any Conversion
Event shall be equal to the (i) the total sum of indebtedness specified in the
Conversion Notice as being subject to conversion, divided by (ii) the product of
0.85 and the average of the last five closing bids for the Company's Common
Stock received prior to the date of the Conversion Notice.

      (d) All principal and accrued and unpaid interest that is not converted at
the time of a Conversion Event, shall be paid in cash by the Company on the Term
Loan Maturity Date. Interest hereunder shall cease to accrue with respect to

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<PAGE>

that portion of principal then being converted to equity in connection with a
Conversion Event upon the Company's receipt of a Conversion Notice.

      (e) No fractional shares of Common Stock will be issued on conversion of
this Note. If any conversion of this Note results in an obligation to issue a
fraction of a share of Common Stock, the Company will pay the value of that
fractional share in cash.

      (f) All shares of Common Stock issued upon the conversion of this Note
shall be duly authorized, validly issued, non-assessable and free and clear of
all claims, liens or encumbrances. If the shares of Common Stock are
certificated, certificates representing the shares of Common Stock issued upon
conversion hereof shall be delivered to Lender. The Company shall deliver such
certificates or make appropriate notations to show Lender as the record and
beneficial owner of the Conversion Shares within two (2) Trading Days of
receiving a Conversion Notice from Lender, with "Trading Days" defined for
purposes of this Note as a day on which the Common Stock is traded.

      (g) This Note does not by itself entitle Lender to any voting rights or
other rights as a equity holder. In the absence of conversion of this Note, no
provisions of this Note, and no enumeration herein of the rights or privileges
of Lender shall cause Lender to be an equity holder or for any purpose by virtue
hereof.

      (h) Notwithstanding anything to the contrary herein, Lender may not use
its ability to convert this Note if such conversion would result in the total
number of shares of Common Stock deemed beneficially owned by Lender (together
with all shares of Common Stock deemed beneficially owned by any of Lender's
affiliates that would be aggregated for purposes of determining a group under
Section 13(d) of the Exchange Act) exceeding, when issued, 4.9% of the total
issued and outstanding shares of the Company's Common Stock (the "Restricted
Ownership Percentage"); provided, however, that (i) Lender shall have the right
at any time and from time to time to increase or decrease its Restricted
Ownership Percentage and otherwise waive in whole or in part the restrictions of
this subparagraph (h) immediately upon written notice to the Company, and (ii)
Lender can make subsequent adjustments pursuant to the preceding clause (i) any
number of times; and provided further that nothing in the foregoing shall
prevent the partial conversion of this Note for such number of shares of Common
Stock as do not exceed the Restricted Ownership Percentage.

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

                                   NUWAY MEDICAL, INC.

                                   By: /s/ Dennis Calvert
                                       ------------------

                                   Title: Dennis Calvert, President

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<PAGE>

                                    EXHIBIT 1
                              NOTICE OF CONVERSION

         (To be executed by holder upon conversion of the Note)

TO:     NUWAY MEDICAL, INC.

            The undersigned, holder of that certain Amended and Restated
Convertible Term Note in the original Principal Amount of $420,000, originally
dated as of June 10, 2003 and amended and restated as of August 31, 2004 (the
"Note"), issued by Nuway Medical, Inc. (the "Company"), hereby exercises
his/her/its right to convert unpaid principal amount of the Note, equal to
$_______________, and accrued but unpaid interest of the Note, equal to
$_____________, into shares of Common Stock of the Company pursuant to the terms
of the Note.

          Please issue the shares of Common Stock as follows:

--------------------------------------------------------------------------------
                        Print or Type Name of Stockholder

--------------------------------------------------------------------------------
              Social Security or Other Identifying Number

--------------------------------------------------------------------------------
                                 Street Address

--------------------------------------------------------------------------------
City                                State                         Zip Code

and  deliver  it to the above  address,  unless a  different  address is
indicated below.

Dated:
      -----------                         ------------------------------------
                                                    Signature

                                          (Signature must conform in all
                                          respects to name of holder as
                                          specified on the face of the Note)

                                       4AMENDMENT NO. 2
                                       TO
                               TERM LOAN AGREEMENT

      This AMENDMENT NO. 2 TO TERM LOAN AGREEMENT (this "Amendment") is dated to
be effective as of July 29, 2005, and is entered into between NUWAY MEDICAL,
INC., a corporation organized under the laws of the state of Delaware (the
"Borrower"), and AUGUSTINE II, LLC, a limited liability company formed under the
laws of the State of Delaware (the "Lender").
                                   BACKGROUND:

      Borrower and Lender are parties to that certain Term Loan Agreement dated
as of June 10, 2003, as amended by that certain Amendment No. 1 to Term Loan
Agreement dated effective March 30, 2004 (the Term Loan Agreement, as so
amended, the "Agreement"). Pursuant to the Agreement, Borrower and Lender have
also entered into that certain Pledge Agreement dated as of June 10, 2003 (the
"Pledge Agreement"), and Borrower previously has delivered to Lender an Amended
and Restated Convertible Term Note (the "Existing Note") and Amended and
Restated Warrant to Purchase Common Stock No. AG-1 (the "Existing Warrant"),
each dated as of March 30, 2004 (the Pledge Agreement, Existing Note and
Existing Warrant, together with the Agreement, the "Loan Documents"). Borrower
has requested that Lender extend the maturity date of the term loan evidenced by
the Loan Documents, and in consideration of Lender's willingness to do so has
agreed to issue an additional Warrant.

      Capitalized terms used herein shall have the meanings ascribed to such
terms in the Agreement.

      NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged:

      1. Extension of Maturity Date. The Term Loan Maturity Date is hereby
extended to May 1, 2006, and the last sentence of Section 1.2 of the Agreement
is amended accordingly.

      2. Amended Note. The Existing Note shall be replaced by the Second Amended
and Restated Term Note in the form attached hereto as Exhibit A (the "Second
Amended Note"), and upon delivery of the executed Amended Note to Lender, Lender
shall deliver the Existing Note to Borrower. Thereafter, all references in the
Agreement to "Term Note" shall be deemed to be references to the Amended Note.

      3. Additional Warrant. The Borrower shall issue to the Lender an
additional warrant number AG-II that allows the Lender to purchase up to
8,000,000 shares of the Borrower's common stock for $0.005 per share. (the
"Second Warrant") The value of this warrant is $40,000. Thereafter, all
references in the Agreement to "Warrant" shall be deemed to be references
collectively to the Existing Warrant, and the Second Warrant.

<PAGE>

      3. Representations, Warranties and Covenants.

            The representations of Borrower in the Agreement and the other Loan
Documents, as amended hereby, are true and correct as of the date hereof as
though each of said representations and warranties was made on the date hereof
except for those representations and warranties which are made as of a specified
date in the applicable Loan Document.

      4. Amendment Supplementary. This Amendment, the Second Amended Note and
the Second Warrant are supplementary to the Loan Documents. All of the
provisions of the Loan Documents, including without limitation the right to
declare principal and accrued interest due for any cause specified in the Loan
Documents, shall remain in full force and effect except as expressly modified.
The Agreement and the other Loan Documents and all rights and powers created
thereby and thereunder or under such other documents are in all respects
ratified and confirmed. From and after the date hereof, the Agreement and the
other Loan Documents shall be deemed to be amended and modified as herein
provided, but, except as so amended and modified, the Agreement and the other
Loan Documents shall continue in full force and effect and the Agreement, the
other Loan Documents, this Amendment, the Second Amended Note and the Second
Warrant shall be read, taken and construed as one and the same instrument. On
and after the date hereof, any references in the Loan Documents to the Agreement
shall mean the Agreement as amended hereby, any references to the Note shall
mean the Second Amended Note and any references to the Warrant shall mean the
Existing Warrant and the Second Warrant.

      6. Waiver of Claims. Borrower hereby acknowledges, agrees and affirms that
it possesses no claims, defenses, offsets, recoupment or counterclaims of any
kind or nature against or with respect to the enforcement of the Agreement, or
any other Loan Document or any amendments thereto (collectively, the "Claims"),
nor does Borrower now have knowledge of any facts that would or might give rise
to any Claims. If facts exist as of the date of this Amendment which would or
could give rise to any Claim against or with respect to the enforcement of the
Agreement, or any other Loan Document, as amended by the amendments and/or
restatements thereto, Borrower hereby unconditionally, irrevocably and
unequivocally waives and fully releases any and all such Claims as if such
Claims were the subject of a lawsuit, adjudicated to final judgment from which
no appeal could be taken and therein dismissed with prejudice. In furtherance of
the intention of the parties, Borrower hereby expressly waives any and all
rights conferred upon it by the provisions of any applicable law which would
provide that "A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the
release which, if known by him, must have materially affected his settlement
with the debtor." Borrower hereby understands and acknowledges the significance
and consequences of the foregoing release and waiver.

      7. Representation by Counsel. Borrower hereby represents that it has been
represented by competent counsel of its choice in the negotiation and execution
of this Amendment; that it has read and fully understands the terms hereof, that

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<PAGE>

Borrower and its counsel have been afforded an opportunity to review, negotiate
and modify the terms of this Amendment, and that it intends to be bound hereby.

      8. Counterparts. This Amendment may be executed in one or more
counterparts, which counterparts, when taken together and collated shall
constitute one agreement.

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

                                          NUWAY MEDICAL, INC.

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

                                          AUGUSTINE II, LLC

                                          By:   AUGUSTINE CAPITAL MANAGEMENT,
                                                L.L.C., its manager

                                          By:
                                               ------------------------------
                                                Thomas F. Duszynski
                                                Member and Authorized Officer

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