Document:

Loan
      Agreement

     

    ANZ
      Nominees Limited as
      custodian for the

    Professional
      Pension PST - Super

     

    AMI
      Australia Holdings Pty Limited

     

    
      
        

      

     

    

     

    

     

    

     

    
      
        
          
            	
                    Doyle
                      Corporate Pty Limited

                    Solicitors

                    Level
                      1

                    204-218
                      Botany Road

                    ALEXANDRIA
                      NSW 2015

                    Tel:
                      (02) 9640 5185

                    Fax:
                      (02) 9640 5186

                    Email:
                      richard.doyle@aminet.com.au

                  

        

         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    Contents 

    
      

    

    

      
        	
                Clause

              	 	 
	
                Number

              	
                Heading

              	
                Page

              
	 	 	 
	
                1

              	
                Loan
                  and Ranking

              	
                1

              
	
                2

              	
                Drawdown
                  and Conditions Precedent

              	
                1

              
	
                3

              	
                Interest

              	
                1

              
	
                4

              	
                Repayment
                  and prepayment

              	
                2

              
	
                5

              	
                Representations
                  and warranties

              	
                2

              
	
                6

              	
                Undertakings
                  by the Borrower

              	
                3

              
	
                7

              	
                Default

              	
                3

              
	
                8

              	
                Expenses,
                  costs and Taxes

              	
                4

              
	
                9

              	
                Interest
                  on overdue amounts

              	
                6

              
	
                10

              	
                Assignment
                  and amendment

              	
                6

              
	
                11

              	
                Set-Off

              	
                6

              
	
                12

              	
                No
                  Waiver

              	
                7

              
	
                13

              	
                Governing
                  Law and jurisdiction

              	
                7

              
	
                14

              	
                Notices

              	
                7

              
	
                15

              	
                Acceptance

              	
                7

              
	 	
                Schedule
                  to Loan Agreement

              	
                8

              
	 	
                Part
                  1 - Transaction Documents

              	
                8

              
	 	
                Part
                  2 - Addresses for Notices

              	
                8

              

      

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    
      	
              Date

            	
               2006

            
	 	 
	
              Parties

            	
              ANZ
                Nominees Limited as custodian for the Professional Pension PST -
                Super
                (ABN
                96 005 357 568) of 530 Collins Street, Melbourne VIC 3001 (Lender)

            
	 	 
	 	
              AMI
                Australia Holdings Pty Limited (ACN
                095 238 645) of Level 1, 204-218 Botany Road, Alexandria NSW 2015
                (Borrower)

            
	 	 

    

    

    

    Operative
      provisions

     

     

      
        

      

    

    
      	
              1

            	
              Loan
                and Ranking

            

    

     

    
      	
              1.1

            	
              The
                Lender has agreed to make available to the Borrower a loan in the
                principal amount of AUD1.2 million (Loan)
                as part of the consideration to acquire Worldwide PE Patent Holdco
                Pty
                Limited on the terms set out below.

            

    

     

    
      	
              1.2

            	
              The
                parties agree that the Loan will rank equally with the loan advanced
                by
                ANZ Nominees Limited as custodian for the Professional Pension PST
                -
                Pension on the date of this Deed.

            

    

     

    
      

    

    
      	
              2

            	
              Drawdown
                and Conditions Precedent

            

    

     

    
      	
              2.1

            	
              The
                Lender will advance the Loan to the Borrower on the date of this
                Deed
                provided that the Lender has received the following documents in
                form and
                substance satisfactory to it:

            

    

     

    
      	 	
              (a)

            	
              this
                Deed and all other transaction documents (Transaction
                Documents)
                (if any) listed in Part 1 of the Schedule duly executed by the Borrower;
                and

            

    

     

    
      	 	
              (b)

            	
              any
                other documents and information which the Lender has requested from
                the
                Borrower.

            

    

     

     

    
      
        

      

      
      

      	
              3

            	
              Interest

            

    

     

    
      	
              3.1

            	
              The
                Borrower must pay interest on the outstanding balance of the Loan
                for the
                period from and including the date of this Deed to but excluding
                the third
                anniversary of the date of this Deed (Repayment
                Date)
                at an annual interest rate equal to 450 basis points above the RBA
                cash
                rate (Base
                Rate).
                Interest will be payable monthly in
                arrears.

            

    

     

    
      	
              3.2

            	
              Interest
                will accrue from day to day, be calculated on the basis of the actual
                number of days elapsed and a 365 day year (including the first day
                of the
                period during which it accrues but excluding the last) and be paid
                in
                arrears on each Interest Payment
                Date.

            

    

     

    
      	
              3.3

            	
              Interest
                payments by the Borrower must be made in AUD dollars in same day
                funds on
                the first day of each month to the Lender's account or, if that date
                is
                not a day on which the Lender is open for business in Sydney, on
                the next
                day the Lender is open for business in Sydney and on the Final Repayment
                Date (each an
                Interest Payment Date).

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              3.4

            	
              The
                certificate of the Lender as to the amount and rate of interest payable
                under this Deed will be conclusive and binding on the
                Borrower.

            

    

     

     

    
      
        

      

      
      

      	
              4

            	
              Repayment
                and prepayment

            

    

     

    
      	
              4.1

            	
              The
                Borrower must repay the Loan in full by the Repayment Date. The Borrower
                may prepay the Loan in whole or in part, together with interest accrued
                on
                the amount to be prepaid to the date of prepayment on any Interest
                Payment
                Date after giving the Lender 10 days' notice of the date of that
                prepayment.

            

    

     

     

    
      
        

      

      
      

      	
              5

            	
              Representations
                and warranties

            

    

     

    
      	
              5.1

            	
              The
                Borrower represents and warrants to the Lender
                that:

            

    

     

    
      	 	
              (a)

            	
              it
                is duly incorporated under the laws of NSW and it has taken all necessary
                corporate action to authorise its entry into and the performance
                of its
                obligations under this Deed;

            

    

     

    
      	 	
              (b)

            	
              this
                Deed constitutes the Borrower's valid and legally binding obligations,
                enforceable in accordance with its
                terms;

            

    

     

    
      	 	
              (c)

            	
              it
                has obtained all authorisations and consents as are required in connection
                with the execution and performance of this Deed and such authorisations
                and consents are in full force and
                effect;

            

    

     

    
      	 	
              (d)

            	
              all
                financial and other information supplied to the Lender (including
                the
                draft audited accounts dated 30 June 2006 and the unaudited management
                accounts dated 31 July 2006 relating to the Borrower show a true
                and fair
                view of its financial standing as at the dates and in respect of
                the
                periods to which they relate) by or on behalf of the Borrower in
                connection with the Loan was when given, and remains, complete and
                accurate in all material respects;

            

    

     

    
      	 	
              (e)

            	
              the
                Borrower holds all of the issued shares in PE Patent Holdco Pty Limited,
                Advanced Medical Institute Pty Limited, Women’s Health Foundation Pty
                Limited, Advanced Medical Institute (NZ) Limited and Intelligent
                Medical
                Technologies Pty Limited, 50% of the shares in Whygo Video Conferencing
                Pty Limited (which holds all of the issued shares in Whygo Limited)
                and
                will hold 100% of the issued shares in Worldwide PE Patent Holdco
                Pty
                Limited on the date of this Deed (collectively the Group
                Companies),
                and there are no options or convertible notes issued by any of the
                Group
                Companies and no Group Company has entered into any agreement to
                issue any
                shares, options or convertible notes to any party;
                

            

    

     

    
      	 	
              (f)

            	
              on
                satisfaction of the conditions precedent, the Loan will be secured
                by a
                first ranking fixed and floating charge over the Borrower with the
                exception that the Borrower will not be required to discharge the
                2 fixed
                charges which it has granted to Westpac over certain fitout or the
                charges
                relating to the loan referred to in clause 1.2;
                and

            

    

     

    
      	 	
              (g)

            	
              it
                will not repay any monies owned by it to Advanced Medical Institute,
                Inc
                prior to repayment of the loan without the Lender’s prior written consent.
                This clause will not prohibit the Borrower from issuing shares to
                Advanced
                Medical Institute, Inc to reduce the outstanding loan
                balance.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
        

      

    

    
      	
              6

            	
              Undertakings
                by the Borrower

            

    

     

    
      	
              6.1

            	
              Unless
                the Lender otherwise consents in writing, during the term of this
                Deed the
                Borrower must:

            

    

     

    
      	 	
              (a)

            	
              not
                make any material changes to its business or dispose of any of its
                core
                assets or undertakings;

            

    

     

    
      	 	
              (b)

            	
              not
                dispose of its Australian premature ejaculation or impotence business
                or
                its interest in PE Patent Holdco Pty Limited, Worldwide PE Patent
                Holdco
                Pty Limited or Intelligent Medical Technologies Pty Limited and not
                permit
                those entities to dispose of their
                assets;

            

    

     

    
      	 	
              (c)

            	
              manage
                and conduct its business in the ordinary course of business and
                with all due care and in accordance with normal and prudent practice
                (having regard to the nature of the business and past practice and
                so as
                to comply with all applicable
                laws);

            

    

     

    
      	 	
              (d)

            	
              not
                make any changes to the board or managing director of the
                Borrower;

            

    

     

    
      	 	
              (e)

            	
              use
                its best endeavours to maintain the profitability and value of the
                business;

            

    

     

    
      	 	
              (f)

            	
              repair
                and maintain each of its assets;

            

    

     

    
      	 	
              (g)

            	
              not
                permit any Group Company to issue, agree to issue or grant any option
                to
                issue any equity or any security convertible into any such
                securities;

            

    

     

    
      	 	
              (h)

            	
              not
                subscribe or agree to subscribe for any equity interest in any
                party;

            

    

     

    
      	 	
              (i)

            	
              not
                guarantee the obligations of or provide financial support to any
                party;

            

    

     

    
      	 	
              (j)

            	
              not
                repay any loan in priority to payment of the Loan;
                

            

    

     

    
      	 	
              (k)

            	
              not
                enter into any joint venture agreement or other arrangement which
                gives
                any party an interest in the profits of its business;
                or

            

    

     

    
      	 	
              (l)

            	
              not
                grant any encumbrance to any party.

            

    

     

     

    
      
        

      

      
      

      	
              7

            	
              Default

            

    

     

    
      	
              7.1

            	
              On
                the occurrence of any of the events set out at (a) to (l) below,
                the
                Lender may serve a notice on the Borrower and the amount of the Loan
                which
                is outstanding and all interest accrued on the Loan and unpaid will
                become
                immediately due and payable:

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower fails to pay when due any amount payable under this Loan
                Agreement or fails to duly perform or comply with any of its obligations
                under any Transaction Document;

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower has misrepresented any material fact relating to its financial
                condition to the Lender; 

            

    

     

    
      	 	
              (c)

            	
              a
                default occurs under the provisions of any other agreement or instrument
                evidencing or securing indebtedness exceeding $250,000 (including
                any
                guarantee, charge or similar obligation and whether granted to the
                Lender
                or otherwise) of the Borrower or any liability of the Borrower becomes
                or
                may be declared due prior to its stated
                maturity;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (d)

            	
              any
                event occurs which, in the reasonable opinion of the Lender, may
                materially and adversely affect the business, assets or financial
                condition of the Borrower;

            

    

     

    
      	 	
              (e)

            	
              an
                application is made to a court for an order that the Borrower or
                any Group
                Company be wound up or that a provisional liquidator be appointed
                (unless
                the application is withdrawn, struck out or dismissed within 28 days
                of it
                being made);

            

    

     

    
      	 	
              (f)

            	
              a
                liquidator is appointed to the Borrower or any Group
                Company;

            

    

     

    
      	 	
              (g)

            	
              a
                resolution is passed or a decision taken to appoint an administrator
                to
                the Borrower or any Group Company or there is a controller (as defined
                under the Corporations
                Act 2001 (Cth)
                (Act)
                of any of its assets;

            

    

     

    
      	 	
              (h)

            	
              except
                to reconstruct or amalgamate while solvent on terms approved by the
                Lender, the Borrower or any Group Company enters into, or resolves
                to
                enter into, an arrangement or composition with, or assignment for
                the
                benefit of, all or any of its creditors, or it, or anyone on its
                behalf,
                proposes a reorganisation, moratorium, deed of company arrangement
                or
                other administration involving any of them or the winding up or
                dissolution of the Borrower or any Group
                Company;

            

    

     

    
      	 	
              (i)

            	
              the
                Borrower or any Group Company is, states that it is, or is presumed
                under
                any applicable law to be,
                insolvent;

            

    

     

    
      	 	
              (j)

            	
              the
                Borrower or any Group Company becomes an insolvent under administration
                as
                defined in Part 5 of the Act or action is taken which could result
                in that
                event;

            

    

     

    
      	 	
              (k)

            	
              as
                a result of the operation of section 459F(1) of the Act, the Borrower
                or
                any Group Company is taken to have failed to comply with a statutory
                demand;

            

    

     

    
      	 	
              (l)

            	
              anything
                having a substantially similar effect to any of the events specified
                above
                happens to the Borrower or any Group Company under the law of any
                jurisdiction;

            

    

     

    
      	 	
              (m)

            	
              any
                of the representations and warranties set out in this Deed is materially
                inaccurate;

            

    

     

    
      	 	
              (n)

            	
              the
                Borrower breaches any covenant set out in clauses 6.1 (a), (b), (d),
                (g),
                (h), (i), (j), (k) or (l); or

            

    

     

    
      	 	
              (o)

            	
              the
                Borrower does not rectify any breach of any other clause of this
                Deed
                within 28 days after receipt of a notice from the Lender specifying
                the
                breach.

            

    

     

     

    
      
        

      

      
      

      	
              8

            	
              Expenses,
                costs and Taxes

            

    

     

    Expenses

     

    
      	
              8.1

            	
              Whether
                or not the Loan is made, the Borrower must pay to or reimburse the
                Lender
                on demand for: 

            

    

     

    
      	 	
              (a)

            	
              all
                costs, expenses and Taxes incurred or payable by the Lender 
                for:

            

    

     

    (i) the
      negotiation, preparation, execution, completion, stamping and registration
      of
      the Transaction Documents;

     

    (ii) the
      arrangement of the Loan;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (iii) any
      attendance, inspection, calculation, approval, consent, waiver, variation,
      release or discharge made or given by the Lender under a Transaction
      Document;

     

    (iv) any
      amendment of any Transaction Document; and

     

    (v) any
      enquiry by any Government Agency concerning the Borrower, any Security Provider
      or any Group Company or any transaction contemplated by or funded under a
      Transaction Document; and

     

    
      	 	
              (b)

            	
              all
                costs, expenses and Taxes incurred or payable by the Lender for any
                contemplated or actual enforcement of a Transaction Document, or
                the
                preservation of its rights, powers and remedies under a Transaction
                Document.

            

    

     

    
      	
              8.2

            	
              The
                costs, expenses and Taxes of the Lender to be paid or reimbursed
                by the
                Borrower under clause 8.3 include:

            

    

     

    
      	 	
              (a)

            	
              costs
                of time spent by any personnel of the Lender, at the daily or hourly
                rate
                reasonably determined by the Lender, costs and expenses of any person
                engaged by the Lender, and all administration costs, internal and
                external
                legal fees and disbursements (together with Taxes on those costs,
                expenses, fees and disbursements) on a full indemnity basis;
                and

            

    

     

    
      	 	
              (b)

            	
              any
                costs, expenses and Taxes incurred in retaining an independent consultant
                or other person to evaluate any matter of
                concern.

            

    

     

    Costs

     

    
      	
              8.3

            	
              The
                Borrower must bear the cost of doing or refraining from doing any
                act,
                matter or thing which it is required to do or refrain from doing
                under or
                in connection with a Transaction
                Document.

            

    

     

    Taxes

     

    
      	
              8.4

            	
              The
                Borrower must pay all Tax in relation to the execution, delivery,
                registration, performance, release, discharge, variation, enforcement
                or
                attempted enforcement of or otherwise in respect of the Transaction
                Documents.

            

    

     

    Goods
      and Services Tax

     

    
      	
              8.5

            	
              The
                Borrower must pay to the Lender on demand any GST which is payable
                as a
                consequence of any supply made or deemed to be made or other matter
                or
                thing done under or in connection with this Deed by the Lender, together
                with any fine, penalty or interest payable because of a default of
                the
                Borrower. The amount paid by the Borrower to the Lender on account
                of GST
                must be sufficient to ensure that the economic benefit to the Lender
                of
                this Deed remains the same whether GST applies or
                not.

            

    

     

    
      	
              8.6

            	
              The
                Lender will give the Borrower a tax invoice complying with any legislation
                under which GST is imposed.

            

    

     

    
      	
              8.7

            	
              The
                Borrower must pay any amount it is required to pay under clause 8.5
                in
                full and without deduction, notwithstanding any entitlement that
                it may
                have to a credit or offset.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    
      
        

      

      
      

      	
              9

            	
              Interest
                on overdue amounts

            

    

     

    Default
      interest

     

    
      	
              9.1

            	
              The
                Borrower must pay interest to the Lender on demand on any amount
                due and
                payable by the Borrower under a Transaction Document but unpaid (including
                interest payable under this
                clause).

            

    

     

    
      	
              9.2

            	
              Interest
                under clause 9.1:

            

    

     

    
      	 	
              (a)

            	
              accrues
                on each unpaid amount from and including the due date for payment
                to the
                date of actual payment at the rate determined by the Lender to be
                the sum
                of:

            

    

     

    (i) 3%
      per
      annum; and

     

    (ii) the
      Base
      Rate; 

     

    
      	 	
              (b)

            	
              accrues
                from day to day; 

            

    

     

    
      	 	
              (c)

            	
              is
                calculated on the basis of the actual number of days elapsed (including
                the first day but excluding the last) and a 365 day year;
                and

            

    

     

    
      	 	
              (d)

            	
              may
                be compounded by the Lender at intervals selected by the Lender or,
                if no
                selection is made, at 1 month
                intervals.

            

    

     

    Additional
      interest

     

    
      	
              9.3

            	
              If
                a liability under a Transaction Document becomes merged in a judgment,
                the
                Borrower must, as an independent obligation, pay interest on the
                amount of
                that liability to the Lender. Interest on the amount of that liability
                will accrue from the date the amount becomes due until the date the
                amount
                is paid, both before and after judgment, at the rate which is the
                higher
                of:

            

    

     

    
      	 	
              (a)

            	
              the
                rate payable under the judgment;
                and

            

    

     

    
      	 	
              (b)

            	
              the
                rate referred to in clause 9.2.

            

    

     

    
      
        

      

    

    
      	
              10

            	
              Assignment
                and amendment

            

    

     

    
      	
              10.1

            	
              No
                party may
                assign any of its rights in relation to this Deed without the other
                party’s prior written consent. This Deed may only be amended by written
                instrument signed by the Lender and the
                Borrower.

            

    

     

     

    
      
        

      

      
      

      	
              11

            	
              Set-Off

            

    

     

    
      	
              11.1

            	
              The
                Lender may at any time and without notice to the Borrower apply amounts
                standing to the credit of any account of the Borrower with the Lender
                or
                its affiliates to reduce the Borrower's obligations under this Deed,
                even
                if the Lender has not demanded payment or the obligations are contingent
                or unmatured.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

     

    
      
        

      

      
      

      	
              12

            	
              No
                Waiver

            

    

     

    
      	
              12.1

            	
              No
                failure or delay by the Lender in exercising any right, power or
                remedy
                under this Deed shall operate as a waiver of that right, power or
                remedy.
                Rights, powers and remedies available under this Deed are cumulative
                and
                do not exclude those provided by
                law.

            

    

     

    
      
        

      

    

    
      	
              13

            	
              Governing
                Law and jurisdiction

            

    

     

    
      	
              13.1

            	
              This
                Deed is governed by the laws of New South Wales and the Borrower
                irrevocably submits to the non-exclusive jurisdiction of the courts
                of New
                South Wales.

            

    

     

     

    
      
        

      

      
      

      	
              14

            	
              Notices

            

    

     

    
      	
              14.1

            	
              Notices
                given under this Deed will be given to the relevant party by delivery,
                pre-paid post or facsimile at the party's address set out above or
                facsimile number for notices set out in Part 2 of the Schedule.
                

            

    

     

     

    
      
        

      

    

    
      	
              15

            	
              Acceptance

            

    

     

    
      	
              15.1

            	
              The
                Borrower evidences its acceptance of the terms of this Loan Deed
                by
                execution.

            

    

     

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Schedule
      to Loan Agreement

     

    Part
      1 - Transaction Documents

    
      
        

      

      
      

    

    

     

    
      	
              1.

            	
              Certified
                true copies of the Borrower's:

            

    

     

    
      	 	
              (a)

            	
              certificate
                of incorporation;

            

    

     

    
      	 	
              (b)

            	
              memorandum
                and articles of association;

            

    

     

    
      	 	
              (c)

            	
              resolutions
                of its board of directors authorising the Borrower to enter into
                and
                perform its obligations under the Loan Agreement and authorising
                a person
                or persons to execute and deliver the Loan Agreement on behalf of
                the
                Borrower and give any required notices under
                it.

            

    

     

    
      	
              2.

            	
              The
                Loan Agreement to which this is
                annexed.

            

    

     

    
      	
              3.

            	
              Fixed
                and Floating Charge over the
                Borrower.

            

    

     

    

     

    

     

    Part
      2 - Addresses for Notices

    
      
        

      

      
      

    

    To
      the
      Borrower:

     

    
      	
              Address:

            	
              Level
                1, 204-218 Botany Road, Alexandria NSW 2015

            
	
              Attention:

            	
              Jack
                Vaisman/Richard Doyle 

            
	
              Facsimile
                no:

            	
              (02)
                9640 5186

            

    

    

     

    To
      the
      Lender:

     

    
      	
              Address:

            	
              530
                Collins Street, Melbourne VIC 3001

            
	
              Attention:

            	
              David
                McWilliams

            
	
              Facsimile
                no:

            	
              (03)
                9273 2667

            

    

    

     

    With
      a
      copy to:

     

    
      	
              Address:

            	
              Level
                41, 2 Park Street, Sydney NSW 2000

            
	
              Attention:

            	
              Richard
                Telfer

            
	
              Facsimile
                no:

            	
              (02)
                8267 8691

            

    

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Execution

     

    

     

    Executed
      as
      a
      deed.

     

    

     

    
      	
              Signed
                sealed and delivered

            	 	 
	
              by
                AMI
                Australia Holdings Pty Limited

            	 	 
	
              In
                accordance with section 127 of the Corporations Act

            	 	 
	 	 	 
	 	 	 
	 	 	/s/
	 	 	
              Signature
                of sole director

            
	 	 	 
	 	 	 
	 	 	 
	 	 	
              Name
                of sole director (please print) 

            

    

    

     

    
      	
              Signed
                sealed and delivered

            	 	 
	
              by
                ANZ
                Nominees Limited

            	 	 
	
              In
                accordance with section 127 of the Corporations Act

            	 	 
	 	 	 
	 	 	 
	/s/	 	/s/
	
              Signature
                of director/secretary

            	 	
              Signature
                of director

            
	 	 	 
	 	 	 
	 	 	 
	
              Name
                of director/secretary (please print)

            	 	
              Name
                of director (please print)Loan
      Agreement

     

    ANZ
      Nominees Limited as
      custodian for the 

    Professional
      Pension PST - Pension

    AMI
      Australia Holdings Pty Limited

     

    
      
        

      

     

    

     

    

     

    

     

    
      
        
          
            	
                    Doyle
                      Corporate Pty Limited

                    Solicitors

                    Level
                      1

                    204-218
                      Botany Road

                    ALEXANDRIA
                      NSW 2015

                    Tel:
                      (02) 9640 5185

                    Fax:
                      (02) 9640 5186

                    Email:
                      richard.doyle@aminet.com.au

                  

          

           

        

         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    Contents

    
      
        

      

    

    

    

      
        	
                Clause

              	 	 
	
                Number

              	
                Heading

              	
                Page

              
	 	 	 
	
                1

              	
                Loan
                  and Ranking

              	
                1

              
	
                2

              	
                Drawdown
                  and Conditions Precedent

              	
                1

              
	
                3

              	
                Interest

              	
                1

              
	
                4

              	
                Repayment
                  and prepayment

              	
                2

              
	
                5

              	
                Representations
                  and warranties

              	
                2

              
	
                6

              	
                Undertakings
                  by the Borrower

              	
                3

              
	
                7

              	
                Default

              	
                3

              
	
                8

              	
                Expenses,
                  costs and Taxes

              	
                4

              
	
                9

              	
                Interest
                  on overdue amounts

              	
                6

              
	
                10

              	
                Assignment
                  and amendment

              	
                6

              
	
                11

              	
                Set-Off

              	
                6

              
	
                12

              	
                No
                  Waiver

              	
                7

              
	
                13

              	
                Governing
                  Law and jurisdiction

              	
                7

              
	
                14

              	
                Notices

              	
                7

              
	
                15

              	
                Acceptance

              	
                7

              
	 	
                Schedule
                  to Loan Agreement

              	
                8

              
	 	
                Part
                  1 - Transaction Documents

              	
                8

              
	 	
                Part
                  2 - Addresses for Notices

              	
                8

              

      

    

    

    
      
         

      

      
         

        
          

        

      

      
         

        
          

           

        

      

    

    
      	
              Date

            	
               2006

            
	 	 
	
              Parties

            	
              ANZ
                Nominees Limited as custodian for the Professional Pension PST -
                Pension
                (ABN
                96 005 357 568) of 530 Collins Street, Melbourne VIC 3001 (Lender)

            
	 	 
	 	
              AMI
                Australia Holdings Pty Limited (ACN
                095 238 645) of Level 1, 204-218 Botany Road, Alexandria NSW 2015
                (Borrower)

            
	 	 

    

    

    

    Operative
      provisions

     

     

      
        

      

    

    
      	
              1

            	
              Loan
                and Ranking

            

    

     

    
      	
              1.1

            	
              The
                Lender has agreed to make available to the Borrower a loan in the
                principal amount of AUD1.8 million (Loan)
                as part of the consideration to acquire Worldwide PE Patent Holdco
                Pty
                Limited on the terms set out below.

            

    

     

    
      	
              1.2

            	
              The
                parties agree that the Loan will rank equally with the loan advanced
                by
                ANZ Nominees Limited as custodian for the Professional Pension PST
                - Super
                on the date of this Deed.

            

    

     

    
      
        

      

    

    
      	
              2

            	
              Drawdown
                and Conditions Precedent

            

    

     

    
      	
              2.1

            	
              The
                Lender will advance the Loan to the Borrower on the date of this
                Deed
                provided that the Lender has received the following documents in
                form and
                substance satisfactory to it:

            

    

     

    
      	 	
              (a)

            	
              this
                Deed and all other transaction documents (Transaction
                Documents)
                (if any) listed in Part 1 of the Schedule duly executed by the Borrower;
                and

            

    

     

    
      	 	
              (b)

            	
              any
                other documents and information which the Lender has requested from
                the
                Borrower.

            

    

     

    
      
        

      

    

    
      	
              3

            	
              Interest

            

    

     

    
      	
              3.1

            	
              The
                Borrower must pay interest on the outstanding balance of the Loan
                for the
                period from and including the date of this Deed to but excluding
                the third
                anniversary of the date of this Deed (Repayment
                Date)
                at an annual interest rate equal to 450 basis points above the RBA
                cash
                rate (Base
                Rate).
                Interest will be payable monthly in
                arrears.

            

    

     

    
      	
              3.2

            	
              Interest
                will accrue from day to day, be calculated on the basis of the actual
                number of days elapsed and a 365 day year (including the first day
                of the
                period during which it accrues but excluding the last) and be paid
                in
                arrears on each Interest Payment
                Date.

            

    

     

    
      	
              3.3

            	
              Interest
                payments by the Borrower must be made in AUD dollars in same day
                funds on
                the first day of each month to the Lender's account or, if that date
                is
                not a day on which the Lender is open for business in Sydney, on
                the next
                day the Lender is open for business in Sydney and on the Final Repayment
                Date (each an
                Interest Payment Date).

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              3.4

            	
              The
                certificate of the Lender as to the amount and rate of interest payable
                under this Deed will be conclusive and binding on the
                Borrower.

            

    

     

    
      
        

      

    

    
      	
              4

            	
              Repayment
                and prepayment

            

    

     

    
      	
              4.1

            	
              The
                Borrower must repay the Loan in full by the Repayment Date. The Borrower
                may prepay the Loan in whole or in part, together with interest accrued
                on
                the amount to be prepaid to the date of prepayment on any Interest
                Payment
                Date after giving the Lender 10 days' notice of the date of that
                prepayment.

            

    

     

    
      
        

      

    

    
      	
              5

            	
              Representations
                and warranties

            

    

     

    
      	
              5.1

            	
              The
                Borrower represents and warrants to the Lender
                that:

            

    

     

    
      	 	
              (a)

            	
              it
                is duly incorporated under the laws of NSW and it has taken all necessary
                corporate action to authorise its entry into and the performance
                of its
                obligations under this Deed;

            

    

     

    
      	 	
              (b)

            	
              this
                Deed constitutes the Borrower's valid and legally binding obligations,
                enforceable in accordance with its
                terms;

            

    

     

    
      	 	
              (c)

            	
              it
                has obtained all authorisations and consents as are required in connection
                with the execution and performance of this Deed and such authorisations
                and consents are in full force and
                effect;

            

    

     

    
      	 	
              (d)

            	
              all
                financial and other information supplied to the Lender (including
                the
                draft audited accounts dated 30 June 2006 and the unaudited management
                accounts dated 31 July 2006 relating to the Borrower show a true
                and fair
                view of its financial standing as at the dates and in respect of
                the
                periods to which they relate) by or on behalf of the Borrower in
                connection with the Loan was when given, and remains, complete and
                accurate in all material respects;

            

    

     

    
      	 	
              (e)

            	
              the
                Borrower holds all of the issued shares in PE Patent Holdco Pty Limited,
                Advanced Medical Institute Pty Limited, Women’s Health Foundation Pty
                Limited, Advanced Medical Institute (NZ) Limited and Intelligent
                Medical
                Technologies Pty Limited, 50% of the shares in Whygo Video Conferencing
                Pty Limited (which holds all of the issued shares in Whygo Limited)
                and
                will hold 100% of the issued shares in Worldwide PE Patent Holdco
                Pty
                Limited on the date of this Deed (collectively the Group
                Companies),
                and there are no options or convertible notes issued by any of the
                Group
                Companies and no Group Company has entered into any agreement to
                issue any
                shares, options or convertible notes to any party;
                

            

    

     

    
      	 	
              (f)

            	
              on
                satisfaction of the conditions precedent, the Loan will be secured
                by a
                first ranking fixed and floating charge over the Borrower with the
                exception that the Borrower will not be required to discharge the
                2 fixed
                charges which it has granted to Westpac over certain fitout or the
                charges
                relating to the loan referred to in clause 1.2;
                and

            

    

     

    
      	 	
              (g)

            	
              it
                will not repay any monies owned by it to Advanced Medical Institute,
                Inc
                prior to repayment of the loan without the Lender’s prior written consent.
                This clause will not prohibit the Borrower from issuing shares to
                Advanced
                Medical Institute, Inc to reduce the outstanding loan
                balance.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
        

      

    

    
      	
              6

            	
              Undertakings
                by the Borrower

            

    

     

    
      	
              6.1

            	
              Unless
                the Lender otherwise consents in writing, during the term of this
                Deed the
                Borrower must:

            

    

     

    
      	 	
              (a)

            	
              not
                make any material changes to its business or dispose of any of its
                core
                assets or undertakings;

            

    

     

    
      	 	
              (b)

            	
              not
                dispose of its Australian premature ejaculation or impotence business
                or
                its interest in PE Patent Holdco Pty Limited, Worldwide PE Patent
                Holdco
                Pty Limited or Intelligent Medical Technologies Pty Limited and not
                permit
                those entities to dispose of their
                assets;

            

    

     

    
      	 	
              (c)

            	
              manage
                and conduct its business in the ordinary course of business and
                with all due care and in accordance with normal and prudent practice
                (having regard to the nature of the business and past practice and
                so as
                to comply with all applicable
                laws);

            

    

     

    
      	 	
              (d)

            	
              not
                make any changes to the board or managing director of the
                Borrower;

            

    

     

    
      	 	
              (e)

            	
              use
                its best endeavours to maintain the profitability and value of the
                business;

            

    

     

    
      	 	
              (f)

            	
              repair
                and maintain each of its assets;

            

    

     

    
      	 	
              (g)

            	
              not
                permit any Group Company to issue, agree to issue or grant any option
                to
                issue any equity or any security convertible into any such
                securities;

            

    

     

    
      	 	
              (h)

            	
              not
                subscribe or agree to subscribe for any equity interest in any
                party;

            

    

     

    
      	 	
              (i)

            	
              not
                guarantee the obligations of or provide financial support to any
                party;

            

    

     

    
      	 	
              (j)

            	
              not
                repay any loan in priority to payment of the Loan;
                

            

    

     

    
      	 	
              (k)

            	
              not
                enter into any joint venture agreement or other arrangement which
                gives
                any party an interest in the profits of its business;
                or

            

    

     

    
      	 	
              (l)

            	
              not
                grant any encumbrance to any party.

            

    

     

    
      
        

      

    

    
      	
              7

            	
              Default

            

    

     

    
      	
              7.1

            	
              On
                the occurrence of any of the events set out at (a) to (l) below,
                the
                Lender may serve a notice on the Borrower and the amount of the Loan
                which
                is outstanding and all interest accrued on the Loan and unpaid will
                become
                immediately due and payable:

            

    

     

    
      	 	
              (a)

            	
              the
                Borrower fails to pay when due any amount payable under this Loan
                Agreement or fails to duly perform or comply with any of its obligations
                under any Transaction Document;

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower has misrepresented any material fact relating to its financial
                condition to the Lender; 

            

    

     

    
      	 	
              (c)

            	
              a
                default occurs under the provisions of any other agreement or instrument
                evidencing or securing indebtedness exceeding $250,000 (including
                any
                guarantee, charge or similar obligation and whether granted to the
                Lender
                or otherwise) of the Borrower or any liability of the Borrower becomes
                or
                may be declared due prior to its stated
                maturity;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	 	
              (d)

            	
              any
                event occurs which, in the reasonable opinion of the Lender, may
                materially and adversely affect the business, assets or financial
                condition of the Borrower;

            

    

     

    
      	 	
              (e)

            	
              an
                application is made to a court for an order that the Borrower or
                any Group
                Company be wound up or that a provisional liquidator be appointed
                (unless
                the application is withdrawn, struck out or dismissed within 28 days
                of it
                being made);

            

    

     

    
      	 	
              (f)

            	
              a
                liquidator is appointed to the Borrower or any Group
                Company;

            

    

     

    
      	 	
              (g)

            	
              a
                resolution is passed or a decision taken to appoint an administrator
                to
                the Borrower or any Group Company or there is a controller (as defined
                under the Corporations
                Act 2001 (Cth)
                (Act)
                of any of its assets;

            

    

     

    
      	 	
              (h)

            	
              except
                to reconstruct or amalgamate while solvent on terms approved by the
                Lender, the Borrower or any Group Company enters into, or resolves
                to
                enter into, an arrangement or composition with, or assignment for
                the
                benefit of, all or any of its creditors, or it, or anyone on its
                behalf,
                proposes a reorganisation, moratorium, deed of company arrangement
                or
                other administration involving any of them or the winding up or
                dissolution of the Borrower or any Group
                Company;

            

    

     

    
      	 	
              (i)

            	
              the
                Borrower or any Group Company is, states that it is, or is presumed
                under
                any applicable law to be,
                insolvent;

            

    

     

    
      	 	
              (j)

            	
              the
                Borrower or any Group Company becomes an insolvent under administration
                as
                defined in Part 5 of the Act or action is taken which could result
                in that
                event;

            

    

     

    
      	 	
              (k)

            	
              as
                a result of the operation of section 459F(1) of the Act, the Borrower
                or
                any Group Company is taken to have failed to comply with a statutory
                demand;

            

    

     

    
      	 	
              (l)

            	
              anything
                having a substantially similar effect to any of the events specified
                above
                happens to the Borrower or any Group Company under the law of any
                jurisdiction;

            

    

     

    
      	 	
              (m)

            	
              any
                of the representations and warranties set out in this Deed is materially
                inaccurate;

            

    

     

    
      	 	
              (n)

            	
              the
                Borrower breaches any covenant set out in clauses 6.1 (a), (b), (d),
                (g),
                (h), (i), (j), (k) or (l); or

            

    

     

    
      	 	
              (o)

            	
              the
                Borrower does not rectify any breach of any other clause of this
                Deed
                within 28 days after receipt of a notice from the Lender specifying
                the
                breach.

            

    

     

    
      
        

      

    

    
      	
              8

            	
              Expenses,
                costs and Taxes

            

    

     

    Expenses

     

    
      	
              8.1

            	
              Whether
                or not the Loan is made, the Borrower must pay to or reimburse the
                Lender
                on demand for: 

            

    

     

    
      	 	
              (a)

            	
              all
                costs, expenses and Taxes incurred or payable by the Lender 
                for:

            

    

     

    (i) the
      negotiation, preparation, execution, completion, stamping and registration
      of
      the Transaction Documents;

     

    (ii) the
      arrangement of the Loan;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    (iii) any
      attendance, inspection, calculation, approval, consent, waiver, variation,
      release or discharge made or given by the Lender under a Transaction
      Document;

     

    (iv) any
      amendment of any Transaction Document; and

     

    (v) any
      enquiry by any Government Agency concerning the Borrower, any Security Provider
      or any Group Company or any transaction contemplated by or funded under a
      Transaction Document; and

     

    
      	 	
              (b)

            	
              all
                costs, expenses and Taxes incurred or payable by the Lender for any
                contemplated or actual enforcement of a Transaction Document, or
                the
                preservation of its rights, powers and remedies under a Transaction
                Document.

            

    

     

    
      	
              8.2

            	
              The
                costs, expenses and Taxes of the Lender to be paid or reimbursed
                by the
                Borrower under clause 8.3 include:

            

    

     

    
      	 	
              (a)

            	
              costs
                of time spent by any personnel of the Lender, at the daily or hourly
                rate
                reasonably determined by the Lender, costs and expenses of any person
                engaged by the Lender, and all administration costs, internal and
                external
                legal fees and disbursements (together with Taxes on those costs,
                expenses, fees and disbursements) on a full indemnity basis;
                and

            

    

     

    
      	 	
              (b)

            	
              any
                costs, expenses and Taxes incurred in retaining an independent consultant
                or other person to evaluate any matter of
                concern.

            

    

     

    Costs

     

    
      	
              8.3

            	
              The
                Borrower must bear the cost of doing or refraining from doing any
                act,
                matter or thing which it is required to do or refrain from doing
                under or
                in connection with a Transaction
                Document.

            

    

     

    Taxes

     

    
      	
              8.4

            	
              The
                Borrower must pay all Tax in relation to the execution, delivery,
                registration, performance, release, discharge, variation, enforcement
                or
                attempted enforcement of or otherwise in respect of the Transaction
                Documents.

            

    

     

    Goods
      and Services Tax

     

    
      	
              8.5

            	
              The
                Borrower must pay to the Lender on demand any GST which is payable
                as a
                consequence of any supply made or deemed to be made or other matter
                or
                thing done under or in connection with this Deed by the Lender, together
                with any fine, penalty or interest payable because of a default of
                the
                Borrower. The amount paid by the Borrower to the Lender on account
                of GST
                must be sufficient to ensure that the economic benefit to the Lender
                of
                this Deed remains the same whether GST applies or
                not.

            

    

     

    
      	
              8.6

            	
              The
                Lender will give the Borrower a tax invoice complying with any legislation
                under which GST is imposed.

            

    

     

    
      	
              8.7

            	
              The
                Borrower must pay any amount it is required to pay under clause 8.5
                in
                full and without deduction, notwithstanding any entitlement that
                it may
                have to a credit or offset.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
        

      

    

    
      	
              9

            	
              Interest
                on overdue amounts

            

    

     

    Default
      interest

     

    
      	
              9.1

            	
              The
                Borrower must pay interest to the Lender on demand on any amount
                due and
                payable by the Borrower under a Transaction Document but unpaid (including
                interest payable under this
                clause).

            

    

     

    
      	
              9.2

            	
              Interest
                under clause 9.1:

            

    

     

    
      	 	
              (a)

            	
              accrues
                on each unpaid amount from and including the due date for payment
                to the
                date of actual payment at the rate determined by the Lender to be
                the sum
                of:

            

    

     

    (i) 3%
      per
      annum; and

     

    (ii) the
      Base
      Rate; 

     

    
      	 	
              (b)

            	
              accrues
                from day to day; 

            

    

     

    
      	 	
              (c)

            	
              is
                calculated on the basis of the actual number of days elapsed (including
                the first day but excluding the last) and a 365 day year;
                and

            

    

     

    
      	 	
              (d)

            	
              may
                be compounded by the Lender at intervals selected by the Lender or,
                if no
                selection is made, at 1 month
                intervals.

            

    

     

    Additional
      interest

     

    
      	
              9.3

            	
              If
                a liability under a Transaction Document becomes merged in a judgment,
                the
                Borrower must, as an independent obligation, pay interest on the
                amount of
                that liability to the Lender. Interest on the amount of that liability
                will accrue from the date the amount becomes due until the date the
                amount
                is paid, both before and after judgment, at the rate which is the
                higher
                of:

            

    

     

    
      	 	
              (a)

            	
              the
                rate payable under the judgment;
                and

            

    

     

    
      	 	
              (b)

            	
              the
                rate referred to in clause 9.2.

            

    

     

    
      
        

      

    

    
      	
              10

            	
              Assignment
                and amendment

            

    

     

    
      	
              10.1

            	
              No
                party may
                assign any of its rights in relation to this Deed without the other
                party’s prior written consent. This Deed may only be amended by written
                instrument signed by the Lender and the
                Borrower.

            

    

     

    
      
        

      

    

    
      	
              11

            	
              Set-Off

            

    

     

    
      	
              11.1

            	
              The
                Lender may at any time and without notice to the Borrower apply amounts
                standing to the credit of any account of the Borrower with the Lender
                or
                its affiliates to reduce the Borrower's obligations under this Deed,
                even
                if the Lender has not demanded payment or the obligations are contingent
                or unmatured.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      

    

    
      	
              12

            	
              No
                Waiver

            

    

     

    
      	
              12.1

            	
              No
                failure or delay by the Lender in exercising any right, power or
                remedy
                under this Deed shall operate as a waiver of that right, power or
                remedy.
                Rights, powers and remedies available under this Deed are cumulative
                and
                do not exclude those provided by
                law.

            

    

     

    
      
        

      

    

    
      	
              13

            	
              Governing
                Law and jurisdiction

            

    

     

    
      	
              13.1

            	
              This
                Deed is governed by the laws of New South Wales and the Borrower
                irrevocably submits to the non-exclusive jurisdiction of the courts
                of New
                South Wales.

            

    

     

    
      
        

      

    

    
      	
              14

            	
              Notices

            

    

     

    
      	
              14.1

            	
              Notices
                given under this Deed will be given to the relevant party by delivery,
                pre-paid post or facsimile at the party's address set out above or
                facsimile number for notices set out in Part 2 of the Schedule.
                

            

    

     

    
      
        

      

    

    
      	
              15

            	
              Acceptance

            

    

     

    
      	
              15.1

            	
              The
                Borrower evidences its acceptance of the terms of this Loan Deed
                by
                execution.

            

    

     

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Schedule
      to Loan Agreement

     

    Part
      1 - Transaction Documents

    
      
        

      

    

    

     

    
      	
              1.

            	
              Certified
                true copies of the Borrower's:

            

    

     

    
      	 	
              (a)

            	
              certificate
                of incorporation;

            

    

     

    
      	 	
              (b)

            	
              memorandum
                and articles of association;

            

    

     

    
      	 	
              (c)

            	
              resolutions
                of its board of directors authorising the Borrower to enter into
                and
                perform its obligations under the Loan Agreement and authorising
                a person
                or persons to execute and deliver the Loan Agreement on behalf of
                the
                Borrower and give any required notices under
                it.

            

    

     

    
      	
              2.

            	
              The
                Loan Agreement to which this is
                annexed.

            

    

     

    
      	
              3.

            	
              Fixed
                and Floating Charge over the
                Borrower.

            

    

     

    

     

    

     

    Part
      2 - Addresses for Notices

    
      
        

      

    

    To
      the
      Borrower:

     

    
      	
              Address:

            	
              Level
                1, 204-218 Botany Road, Alexandria NSW 2015

            
	
              Attention:

            	
              Jack
                Vaisman/Richard Doyle 

            
	
              Facsimile
                no:

            	
              (02)
                9640 5186

            

    

    

     

    To
      the
      Lender:

     

    
      	
              Address:

            	
              530
                Collins Street, Melbourne VIC 3001

            
	
              Attention:

            	
              David
                McWilliams

            
	
              Facsimile
                no:

            	
              (03)
                9273 2667

            

    

    

     

    With
      a
      copy to:

     

    
      	
              Address:

            	
              Level
                41, 2 Park Street, Sydney NSW 2000

            
	
              Attention:

            	
              Richard
                Telfer

            
	
              Facsimile
                no:

            	
              (02)
                8267 8691

            

    

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Execution

     

     

    Executed
      as
      a
      deed

     

     

    
      	
              Signed
                sealed and delivered

            	 	 
	
              by
                AMI
                Australia Holdings Pty Limited

            	 	 
	
              In
                accordance with section 127 of the Corporations Act

            	 	 
	 	 	 
	 	 	 
	 	 	/s/
	 	 	
              Signature
                of sole director

            
	 	 	 
	 	 	 
	 	 	
            
	 	 	
              Name
                of sole director (please print) 

            

    

    

     

    
      	
              Signed
                sealed and delivered

            	 	 
	
              by
                ANZ
                Nominees Limited

            	 	 
	
              In
                accordance with section 127 of the Corporations Act

            	 	 
	 	 	 
	 	 	 
	/s/	 	
            
	
              Signature
                of director/secretary

            	 	
              Signature
                of director

            
	 	 	 
	 	 	 
	 	 	/s/
	
              Name
                of director/secretary (please print)

            	 	
              Name
                of director (please print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]