PRIVATE & CONFIDENTIAL


                           DATED : SEPTEMBER 29, 2005
                              TELECONNECT INC.          (1)

                                       AND

                             MR. KLAAS LAMEIJER         (2)

                                       AND

                               MR. LEO GEERIS           (3)



                                 LOAN AGREEMENT

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THIS AGREEMENT is dated September 29, 2005 and is made BETWEEN:

(1)    Teleconnect Inc., incorporated under the laws of Florida, United States
       of America, having its registered office at 1200 South Pine Island Road,
       Plantation, Florida 33324 (hereinafter "TELECONNECT" or "THE COMPANY")
       and represented in this act by Gustavo Gomez, President of the Company
       and with contact address: Parque Tecnologico de Andalucia (PTA), Edif.
       Estepona. Malaga Business Park 2, C/ Severo Ochoa, n(0) 16-20, 1(a),
       Campanillas, Malaga, 28590, Spain;

(2)    Mr. Klaas Lameijer a Spanish resident of Dutch Nationality residing at
       Calle 1 N(0) 42, Cascada de Camojan, 29600 Marbella, Malaga, and with
       passport number M22152161 and NIE X3463434 (hereinafter "LAMEIJER").

(3)    Mr Leonardus R.M. Geeris of age, married, of Dutch nationality with
       passport number N70986464 and domiciled at Zandpad 29, 3601 NA Maarsen
       The Netherlands, (HEREINAFTER "GEERIS")

(4)    The persons/entities in points (1), (2), and (3) above will be jointly
       referred to as the "PARTIES"

WHEREAS

(A)    TELECONNECT is negotiating with an investor party a capital injection
       into the Company.

(B)    TELECONNECT owes LAMEIJER (euro)130,000 of interest from a previous
       bridge loan (dated December 2002) which has been repaid, as well as an
       additional (euro) 55,000 (including interest) from a partially repaid
       bridge loan from Royal Living dated February 20, 2004.

(C)    In order to facilitate the entry of the funds from the new investor, the
       PARTIES have reached an agreement to delay the repayment of the
       (euro)185,000 mentioned in point (B) above until the end of December 31,
       2005.

NOW IT IS HEREBY AGREED as follows:

1      CONDITIONS OF DELAY OF PAYMENT

       On the date hereof, the parties will enter into a three-month Loan
       Agreement based upon which TELECONNECT will return to LAMEIJER the
       amounts due as of October 1, 2005 plus 9% annual interest on this amount
       for three months TO THE END OF DECEMBER 2005. As of October 1, 2005,
       LAMEIJER is due the (euro)130.000 described in point "B" above as well as
       the (euro)55,000 from the Royal Living Bridge Loan. In addition, a 9%
       annual interest will be added to these amounts to compensate the delay
       from October 1, 2005 to December 31, 2005. This additional interest
       amount of (euro)5.000 is added to the existing total debt of
       (euro)185,000 so that the total repayment is at the end of December 2005
       is (euro)190,000.

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2      GUARANTEE

       Should for any reason TELECONNECT not be able to repay LAMEIJER the
       (euro)190.000 by the date specified, GEERIS guarantees that he will pay
       the corresponding amounts to LAMEIJER before the end of the following
       week; that is by January 7th, 2006.

3      ADDITIONAL INCENTIVE

       As an additional incentive for facilitating the delay in the repayment of
       the amounts due, TELECONNECT will grant LAMEIJER a payment of
       (euro)50,000 once the Company has been sold to a third party or at the
       latest by January 2008. This additional incentive is also guaranteed by
       Mr. Geeris, as in point "2" should the Company not be able to respect
       this payment.

4      CONFIDENTIALITY

       Each of the Parties or any of its directors or officers shall not divulge
       or communicate to any person or persons, except to those of the officials
       of TELECONNECT whose province it is to know the same, any secret or
       confidential information which it may receive or obtain in relation to
       the affairs of TELECONNECT and shall not use for its own purposes nor for
       any purposes other than those of TELECONNECT any information or knowledge
       of a confidential nature which it may from time to time acquire in
       relation to the COMPANY.

5      TERMINATION

       This Agreement shall be subject to termination by either party by summary
       notice in writing if the other party shall have committed any serious
       breach or continued (after warning) any material breach of its
       obligations hereunder.

       Termination of this Agreement shall be without prejudice to any rights
       which have accrued at the time of termination (all of which shall remain
       in full force and effect).

6      NOTICES

       Any notice required to be given hereunder shall be deemed duly served if
       sent by registered or recorded delivery post to the registered office of
       TELECONNECT in Spain; Parque Tecnologico de Andalucia (PTA), Edif.
       Estepona. Malaga Business Park 2, C/ Severo Ochoa, n(0) 16-20, 1(a),
       Campanillas, Malaga, 28590, Spain or to the addresses of the affected
       parties listed on the first page of this agreement. Any such notice shall
       be deemed to be served at the time when the same is left at the address
       of the party to be served and if served by post on the day (not being a
       Sunday or public holiday) next following the day of posting.

7      CHOICE OF LAW, SUBMISSION TO JURISDICTION

       This Agreement shall be governed by and interpreted in accordance with
       the laws of Spain except for the guaranteed offered by Mr. Geeris in
       points 2 and 3 which is governed by Dutch Laws.


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IN WITNESS whereof this Agreement has been executed today, September 29th, 2005

SIGNED by GUSTAVO GOMEZ   (for and on behalf of TELECONNECT INC)


.................................................)

SIGNED by Mr KLAAS LAMEIJER


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SIGNED by LEO GEERIS


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