Document:

Exhibit
        10.2

      

      EXHIBIT
        A

      

      THIRD
        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

                Third
                  Amendment and Restatement Effective: May 1, 2006

              	 

      

       

      Maturity
        Date: May 1, 2007

      

      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”),
        and
        the Second Amended and Restated Convertible Term Note which was previously
        executed and delivered by Borrower to Lender with an effective date of July
        29,
        2005 (the “Second
        Amended Note”).
        It is
        the intent of the parties hereto that this Note 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 the Second 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.

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      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.

      

      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 July 29, 2005, and Amendment No. 3 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. 

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      (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 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 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. 

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

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

      

      NUWAY
        MEDICAL, INC.

      

      

      By:         
        /s/
        Dennis Calvert_____  

      Dennis
        Calvert, President

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      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)

      

      

      

      
        
           

        

        
          11Exhibit
      10.1

     

    UNIVERSAL
      CAPITAL MANAGEMENT, INC

    2601
      Annand Drive

    Suite
      16

    Wilmington,
      Delaware 19808

     

    October
      13, 2006

     

    
      	
              Mr.
                Scott Oglum, President

              Theater
                Xtreme Entertainment Group, Inc.

              250
                Corporate Boulevard, Suites E & F

              Newark,
                DE 19702

            

    

     

    Dear
      Scott:

     

    This
      letter will serve to confirm our recent conversation. We agreed that if Theater
      Xtreme Entertainment Group, Inc. (“Theater Xtreme”) does not succeed, on or
      before October 31, 2006, in selling at least Two Hundred Fifty Thousand Dollars
      ($250,000) of debentures maturing on a date at least thirteen (13) months after
      date of issue, bearing interest at no more than Ten Percent (10%) per annum
      payable quarter annually, and accompanied by common stock warrants to purchase
      at least Two Hundred Thousand (200,000) shares of common stock of Theater Xtreme
      at an exercise price of not less than One Dollar ($1.00) per share, then
      Universal Capital Management, Inc. (“Universal”) shall and hereby agrees to
      invest Two Hundred Fifty Thousand Dollars ($250,000) in such debentures and
      warrants on the terms set forth above. 

     

    If
      Theater Xtreme desires that Universal honor its obligations under this letter,
      Theater Xtreme shall provide written notice to Universal not later than November
      1, 2006, and closing for the purchase shall take place not later than November
      30, 2006. If Theater Xtreme fails to give such notice on or before November
      1,
      2006, this letter shall expire and thereafter be of no further force or
      effect.

     

    
      	 	 	Sincerely,
	 
 	 
 	 
 
	 	  	/s/
              Joseph T. Drennan
	 	
              

            
	 	Joseph
              T. Drennan

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