Document:

EXHIBIT
      10.1

    CONVERTIBLE
      NOTE

    

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

     

    
      	
              Amount:
                $XX,XXX.XX

            	
              Irvine,
                California

            
	 	
              Date:
                _____________, 2006

            

    

     

    FOR
      VALUE
      RECEIVED, NUWAY
      MEDICAL, INC.,
      a
      corporation organized under the laws of the state of Delaware (“Issuer”),
      promises to pay to the order of _______________________(hereafter, together
      with
      any subsequent holder hereof, called “Holder”),
      at
      its office, at “Holder’s Address” (as that term is defined below), or at such
      other place as Holder may direct, the “Amount” noted above (the “Loan Amount”),
      payable on September 13, 2008, or at an earlier date as provided herein (the
      “Maturity
      Date”).
      This
      convertible note is duly authorized issue of the Issuer, issued on the “Date”
noted (the “Issuance
      Date”),
      and
      designated as its Convertible Note due September 13, 2008 (the “Note”).

    

    The
      Issuer agrees to pay interest on the unpaid principal amount of the Loan Amount
      from time to time outstanding hereunder at the following rates per year,
      compounded annually: (i) before maturity of the Loan Amount, whether by
      acceleration or otherwise, at the rate per annum equal to ten percent (10%);
      (ii) after the maturity of the Loan Amount, whether by acceleration or
      otherwise, until paid, at a rate per annum equal to fifteen percent
      (15%).

     

    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 Issuer
      as set forth below.

    

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

    

      The
      Note
      is subject to the following additional provisions:

    

    
      	 	
              1.

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

            

      
        
          
          

        

        
          -1-

          
            

          

        

        
          
          

        

      

    

     

    
      	 	
              2.

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

            

    

     

    
      	 	
              3.

            	
              Subject
                to the “Conversion Contingencies” set forth in paragraph 5 below, the
                Holder may, at its option, at any time convert the principal amount
                of
                this Note or any portion thereof, and any accrued and unpaid interest
                thereon, into such number of shares of fully paid and non-assessable
                Common Stock of the Issuer (“Conversion
                Shares”)
                as is obtained by dividing the Loan Amount by $0.0275 (“Conversion
                Price”).
                The right to convert the Note may be exercised by the Issuer by
                telecopying, mailing (via first class mail, postage prepaid) or personally
                delivering an executed and completed notice of conversion (the
                “Notice
                of Voluntary Conversion”)
                to the Issuer. The business day (a “Business
                Day”)
                on which a Notice of Voluntary Conversion is delivered in accordance
                with
                the provisions hereof shall be deemed the “Voluntary
                Conversion Date”.
                The Issuer will transmit the certificates representing Conversion
                Shares
                issuable upon such conversion of the Note (together with the certificates
                representing the Note not so converted) to the Holder via express
                courier,
                by electronic transfer (if applicable) or otherwise, within ten Business
                Days after the later to occur of (i) the Voluntary Conversion Date
                or (ii)
                the Business Day on which the Issuer has received from the Holder
                the
                original Note being so converted. Notwithstanding the preceding sentence,
                the conversion of this Note may require that the Issuer amend its
                charter
                to increase the number of shares of its Common Stock authorized and
                therefore the conversion may not take place prior to the Issuer’s
                completion of that process. Any delay due to such circumstance shall
                not
                be an event of default under this Note.

            

    

     

    
      	
            	4.	
              Subject
                to the “Conversion Contingencies” set forth in paragraph 5 below, the
                Issuer may, at its option, (i) on or after September 13, 2007, if
                the
                Company has received one or more written firm commitments, or has
                closed
                on one or more transactions, or a combination of the foregoing, of
                at
                least $3 million gross proceeds of equity or debt; or (ii) on the
                Maturity
                Date, require the
                Holder to convert the Note or any portion thereof, and any accrued
                and
                unpaid interest thereon, into such number of Conversion Shares as
                is
                obtained by dividing the Loan Amount by the Conversion Price. The
                obligation of the Holder to convert the Note may be exercised by
                the
                Company by telecopying, mailing (via first class mail, postage prepaid)
                or
                personally delivering an executed and completed notice of conversion
                (the
                “Notice
                of Mandatory Conversion”)
                to the Holder’s Address maintained in the Note Register. The Holder
                covenants and agrees to acknowledge a Notice of Mandatory Conversion
                in
                writing by completing, dating and signing such Notice of Mandatory
                Conversion and returning it to the Company by telecopier, first class
                mail
                (postage prepaid) or personal delivery (the “Holder Acknowledgment Date”).
                The business day on which a Notice of Mandatory Conversion is delivered
                in
                accordance with the provisions hereof shall be deemed the “Mandatory
                Conversion Date”.
                The Issuer will transmit the certificates representing Conversion
                Shares
                issuable upon such conversion of the Note (together with the certificates
                representing any portion of the Note not so converted) to the Holder
                via
                express courier, by electronic transfer (if applicable) or otherwise
                within ten Business Days after the later to occur of (i) the Holder
                Acknowledgment Date or (ii) the date that the Issuer has received
                from the
                Holder the original Note being so converted. Notwithstanding the
                preceding
                sentence, the conversion of this Note may require that the Issuer
                amend
                its charter to increase the number of shares of Common
                Stock

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    authorized
      and therefore the conversion may not take place prior to the Issuer’s completion
      of that process. Any delay due to such circumstance shall not be an event of
      default under this Note. 

     

    
      	
            	5.	
              Conversion
                Contingencies:
                Notwithstanding anything else herein to the contrary, the Holder
                shall not
                have the right, and the Company shall not have the obligation, to
                convert
                all or any portion of this Note, unless and until each of the following
                events has first occurred: (i) the Company’s stockholders have approved an
                increase in the number of shares of Common Stock authorized by the
                Company’s Certificate of Incorporation in an amount not less than the
                amount required to permit all Notes issued in this series to be converted
                into shares of the Company’s Common Stock as provided herein, at a validly
                held meeting of stockholders at which a quorum is present and acting
                throughout; and (ii) the Company has filed with the Secretary of
                State of
                State of Delaware a Certificate of Amendment to the Company’s Certificate
                of Incorporation to amend its Certificate of Incorporation to increase
                the
                number of shares of Common Stock authorized by the Company’s Certificate
                of Incorporation.

            

    

     

    
      	
            	6.	
              The
                principal amount of this Note, and any accrued interest thereon,
                shall be
                reduced as per that principal amount indicated on the Notice of Voluntary
                Conversion or Notice of Mandatory Conversion, as the case may be,
                upon the
                proper receipt by the Holder of such Conversion Shares due upon such
                Notice of Voluntary Conversion or Notice of Mandatory
                Conversion.

            

    

     

    
      	
            	7.	
              If
                after the termination date of the offering pursuant to which the
                Note was
                offered and sold and on or before the first to occur of (i) a Voluntary
                Conversion, (ii) a Mandatory Conversion or (iii) the Maturity Date,
                the
                Company shall sell any (x) shares of its common stock at a price
                per share
                less than $0.0275 per share or (y) other security convertible into,
                or
                exercisable or exchangeable for any shares of its common stock at
                an
                exercise or conversion price less than $0.0275 (in either case subject
                to
                adjustment for any stock split, reverse stock split, stock dividend
                or
                other reclassification or recapitalization) (a “Dilution Event”), then the
                initial Conversion Price of the Notes shall automatically be reduced
                to
                such lower price (“Anti-Dilution Protection”). Notwithstanding the
                previous sentence, the granting of stock options by the Company pursuant
                to any employee benefit plan presently in existence or which may
                exist in
                the future shall not, under any circumstances, be a Dilution Event
                resulting in Anti-Dilution Protection.

            

    

     

    

    
      	
            	8.	
              The
                number of Conversion Shares shall be adjusted as follows. If the
                Issuer
                shall at any time subdivide its outstanding shares of Common Stock
                into a
                greater number of shares of Common Stock, the number of Conversion
                Shares
                in effect immediately prior to such subdivision shall be proportionately
                increased, and conversely, in case the outstanding shares of Common
                Stock
                shall be combined into a smaller number of shares of Common Stock,
                the
                Conversion Price in effect immediately prior to such combination
                shall be
                proportionately reduced.

            

    

     

    
      	
            	9.	
              No
                provision of this Note shall alter or impair the obligation of the
                Issuer,
                which is absolute and unconditional, upon an Event of Default (as
                defined
                below), to pay the principal of, and interest on this Note at the
                place,
                time, and rate, and in the coin or currency herein prescribed.
                

            

    

     

    
      	
            	10.	
              Events
                Of Default. Each of the following occurrences is hereby defined as
                an
                “Event of Default”:

            

    

     

    
      	 	
              a.

            	
              Nonpayment.
                The Issuer shall fail to make any payment of principal, interest,
                or other
                amounts payable hereunder when and as due;
                or

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    
      	
            	b.	
              Dissolutions,
                etc.
                The Issuer or any subsidiary shall fail to comply with any provision
                concerning its existence or any prohibition against dissolution,
                liquidation, merger, consolidation or sale of assets;
                or

            

    

     

    
      	
            	c.	
              Noncompliance
                with this Agreement.
                The Issuer shall fail to comply in any material respect with any
                provision
                hereof, which failure does not otherwise constitute an Event of Default,
                and such failure shall continue for ten (10) days after the occurrence
                of
                such failure; or

            

    

     

    
      	
            	d.	
              Bankruptcy.
                Any bankruptcy, insolvency, reorganization, arrangement, readjustment,
                liquidation, dissolution, or similar proceeding, domestic or foreign,
                is
                instituted by or against the Issuer or any of its subsidiaries, or
                the
                Issuer or any of its subsidiaries shall take any step toward, or
                to
                authorize, such a proceeding; or

            

    

     

    
      	
            	e.	
              Insolvency.
                The Issuer shall make a general assignment for the benefit of its
                creditors, shall enter into any composition or similar agreement,
                or shall
                suspend the transaction of all or a substantial portion of its usual
                business.

            

    

     

    
      	
            	11.	
              If
                one or more “Events of Default” shall occur, then, or at any time
                thereafter, and in each and every such case, unless such Event of
                Default
                shall have been waived in writing by the Holder (which waiver shall
                not be
                deemed to be a waiver of any subsequent default) or cured as provided
                herein, at the option of the Holder, and in the Holder's sole discretion,
                the Holder may elect to consider this Note (and all interest through
                such
                date) immediately due and payable. In order to so elect, the Holder
                must
                deliver written notice of the election and the amount due to the
                Issuer
                via certified mail, return receipt requested, at the Issuer’s address as
                set forth herein (or any other address provided to the Holder), and
                thereafter the Issuer shall have ten business days upon receipt to
                cure
                the Event of Default, pay the Note, or convert the amount due on
                the Note
                pursuant to the conversion formula set forth above. It is agreed
                that in
                the event of such action, such Holder shall be entitled to receive
                all
                reasonable fees, costs and expenses incurred, including without limitation
                such reasonable fees and expenses of attorneys. The parties acknowledge
                that a change in control of the Issuer shall not be deemed to be
                an Event
                of Default as set forth herein.

            

    

     

    
      	
            	12.	
              In
                case any provision of this Note is held by a court of competent
                jurisdiction to be excessive in scope or otherwise invalid or
                unenforceable, such provision shall be adjusted rather than voided,
                if
                possible, so that it is enforceable to the maximum extent possible,
                and
                the validity and enforceability of the remaining provisions of this
                Note
                will not in any way be affected or impaired
                thereby.

            

    

     

     

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            	13.	
              This
                Note does not entitle the Holder hereof to any voting rights or other
                rights as a stockholder of the Issuer prior to the conversion into
                Common
                Stock thereof, except as provided by applicable law. If, however,
                at the
                time of the surrender of this Note and conversion the Holder hereof
                shall
                be entitled to convert this Note, the Conversion Shares so issued
                shall be
                and be deemed to be issued to such holder as the record owner of
                such
                shares as of the close of business on the Conversion
                Date.

            

    

     

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

    

    NUWAY
      MEDICAL, INC.

     

    By___________________________

    Name:
      Dennis Calvert, President

     

    ACCEPTED:

     

    Signature:
      _______________________

     

    Print
      Name: ______________________

     

    Holder’s
      Address: _________________

     

    ________________________________

     

    ________________________________

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF VOLUNTARY CONVERSION

    

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

    

    

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

    

    

    Date
      of
      Voluntary Conversion: _______________

    Signature:
      _____________________________

     

    Print
      Name: ____________________________

     

    Holder’s
      Address: _______________________

     

    ______________________________________

     

    ______________________________________

     

     

    ACCEPTED:

     

    NUWAY
      MEDICAL, INC.

     

    BY
      (Signature): __________________________

     

    Print
      Name: _____________________________

     

    Title:
      __________________________________

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF MANDATORY CONVERSION

    

    (To
      be
      Executed by the Company in order to required the Holder to convert the
      Note)

    

    

    The
      undersigned hereby notifies you of its irrevocably election to require you
      to
      convert $___________ of the principal amount of the above Note, and $__________
      of accrued and unpaid interest, into ___________ Shares of Common Stock of
      NuWay
      Medical, Inc. according to the conditions hereof, as of the date written
      below.

    

    

    Date
      of
      Mandatory Conversion: _______________

    NUWAY
      MEDICAL, INC.

     

    BY
      (Signature) ______________________

     

    Print
      Name: ________________________

     

    Title:
      _____________________________

     

    ACCEPTED
      AND AGREED BY HOLDER:

     

    Signature:
      _________________________

     

    Print
      Name: ________________________

     

    Holder’s
      Address: ___________________

     

    __________________________________

     

    __________________________________

    
      
        
        

      

      -2-Unassociated Document

    EXHIBIT
      10.1

    

    AMENDMENT
      TO PURCHASE AND SALE AGREEMENT

    BETWEEN
      WYOMING MINERAL EXPLORATION, LLC AND

    RANCHER
      ENERGY CORP. DATED AUGUST 10, 2006

    

    WHEREAS,
      Wyoming
      Mineral Exploration, LLC ("WME")
      and
      Rancher Energy Corp. ("Rancher
      Energy")
      entered into a Purchase and Sale Agreement dated August 10, 2006 ("PSA");
      and

    

    WHEREAS,
      the
      parties desire to amend the PSA as provided herein;

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual benefits derived from this Amendment, WME and
      Rancher Energy agree as follows:

    

    1. Rancher
      Energy will pay WME an extension fee in an amount equal to 1% of the Purchase
      Price ($250,000.00) within 3 business days from the date of execution of this
      Amendment by Rancher Energy. The fee shall be wired to WME's account listed
      in
      Section 2.02 of the PSA. The fee shall be considered fully earned upon execution
      of this Amendment by Rancher Energy and WME, and the fee will not be credited
      against the Purchase Price at Closing.

     

    2. Section
      10.01 of the PSA is hereby modified to change the date of Closing from "on
      November 30, 2006" to "on or before January 4, 2007."

    

    3. The
      Deposit ($2,500,000.00), which was previously delivered to WME pursuant to
      Section 2.02 of the PSA, shall be released to WME upon execution of this
      Amendment by Rancher Energy. The Deposit shall be considered fully earned and
      nonrefundable, although such amount will continue to be credited against the
      Purchase Price at Closing.

    

    4. (a) Rancher
      Energy acknowledges the time period for which it may submit title defect notices
      pursuant to Section 3.04 of the PSA has expired, and, in any event, Rancher
      Energy waives its right to submit any additional title defects notices other
      than the title defect notices timely submitted to WME. 

    

    (b) WME
      agrees to cooperate with Rancher Energy and use good faith efforts to obtain,
      execute, and record such additional instruments as may be necessary or desirable
      to resolve certain alleged title defects, including: (i) the execution by WME,
      Robert Anderson, Merschat Minerals, LLC, Blue Hill, LLC, KGN Mineral Trust,
      and
      CPK Energy, LLC and the recording of corrective assignments to correct possible
      ambiguities in assignments of overriding royalty interests into those entities;
      (ii) the execution and recording by GWJ Exploration, LLC of documents sufficient
      to confirm that GWJ Exploration, LLC owns no overriding royalty interest in
      the
      leases described in the PSA; and (iii) to correct those deeds and/or leases
      covering lands described in the PSA as "Mountain Home," between Seller and
      KGN
      Mineral Trust or between KGN Mineral Trust and Parkerton Ranch, Inc. that
      contain an incorrect legal description for lands in Section 19,
      T33N/R76W.

     

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    (c) At
      no
      cost to WME, WME agrees to cooperate with Rancher Energy and use good faith
      efforts as may be necessary or desirable to address certain other issues,
      including: (i) to contact the Bureau of Land Management and investigate the
      possibility of obtaining a new federal oil and gas lease covering the 6.43
      acre
      railroad right-of-way which is not currently covered by WYW-85311; and (ii)
      to
      contact the trustees of the J.G. Dyer and June M. Dyer Trust dated April 3,
      1989
      and use its best efforts to obtain a lease or purchase of the trust's interests
      in the leases described in the PSA. 

    

    (d) Except
      as
      provided in this paragraph 4, Rancher Energy agrees that the Title Defect
      Notices previously submitted to WME by Rancher Energy have been resolved or,
      to
      the extent not resolved, Rancher Energy hereby agrees to waive such title
      defects. Nothing herein is intended to modify, delete, or alter Section 12.03
      of
      the PSA.

    

    5. Rancher
      Energy and WME both waive any right to a purchase price adjustment pursuant
      to
      Sections 3.05(d) and 3.08 of the PSA.

    

    6. Rancher
      Energy waives the conditions set forth in Sections 8.01 and 8.02 of the
      PSA.

    

    7. Section
      11.01(f) of the PSA is deleted in its entirety.

    

    8. The
      parties agree that the Effective Time defined in Section 2.04 of the PSA shall
      be as of 7:00 a.m. local time, on January 1, 2007.

    

    9. All
      other
      terms, covenants and conditions of the PSA shall remain unaffected and in full
      force.

    

    10. This
      Amendment may be executed in counterparts according to Section 17.14 of the
      PSA.

    

    DATED
      this 29th day of November, 2006.

    

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    

     

    
      	WYOMING
              MINERAL EXPLORATION, LLC	 	
              RANCHER
                ENERGY CORP.

            
	 	 	 	 	 
	 	 	 	 	 
	
              By:

            	
              /s/
                Walter R. Merchat

            	 	
              By:

            	
              /s/
                John Works

            
	
              Title:

            	
              Member

            	 	
              Title:

            	
              President
                & CEO

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