DISTRIBUTION AGREEMENT	9 Months Ended
Apr. 30, 2012
Notes to Financial Statements
Note 3. DISTRIBUTION AGREEMENT	On March 21, 2011, the Company entered into a distribution agreement with NSJ. Co., Ltd., a Japanese supplier who is a related party. The agreement gives the company the right to distribute NSJ. Co., Ltd.’s product throughout the world excluding Japan. The Company issued 24,755,000 shares of common stock valued at $0 as consideration for these distribution rights. The distribution agreement is for 10 years. After 10 years the Company may renew the distribution rights on a yearly basis. The agreement sets forth that the Company, as a representative of NSJ. Co., Ltd. will be responsible for advertising, customer relations, and product support. On January 1, 2012, the Company amended its distribution agreement to clarify certain aspects of the agreements. The distribution agreement, as amended, provides that the prices to be paid by for products purchased pursuant to the distribution agreement shall be no more than 30% in excess of the actual cost of the supplier in making the products. The Supplier has further agreed that it will not require us to purchase a quantity of products in excess of that which we can reasonably afford or reasonably expect to sell in within two to three months of our purchase of the products. The Supplier has no right to put products to the Company outside of the purchase order process contemplated in the distribution agreement. Further, there is no minimum purchase requirement in order for the Company to maintain all its rights under this distribution agreement. All purchase orders from the Company are subject to acceptance in writing by the Company; provided, however, that the Company may not refuse to accept any purchase order if the Company indicates it has a certainty or reasonable expectation of selling the products ordered within six months of the date of the purchase order.

DISTRIBUTION AGREEMENT

9 Months Ended

Apr. 30, 2012

On March 21, 2011, the Company entered into a distribution agreement with NSJ. Co., Ltd., a Japanese supplier who is a related party. The agreement gives the company the right to distribute NSJ. Co., Ltd.’s product throughout the world excluding Japan. The Company issued 24,755,000 shares of common stock valued at $0 as consideration for these distribution rights. The distribution agreement is for 10 years. After 10 years the Company may renew the distribution rights on a yearly basis. The agreement sets forth that the Company, as a representative of NSJ. Co., Ltd. will be responsible for advertising, customer relations, and product support.

On January 1, 2012, the Company amended its distribution agreement to clarify certain aspects of the agreements. The distribution agreement, as amended, provides that the prices to be paid by for products purchased pursuant to the distribution agreement shall be no more than 30% in excess of the actual cost of the supplier in making the products. The Supplier has further agreed that it will not require us to purchase a quantity of products in excess of that which we can reasonably afford or reasonably expect to sell in within two to three months of our purchase of the products. The Supplier has no right to put products to the Company outside of the purchase order process contemplated in the distribution agreement. Further, there is no minimum purchase requirement in order for the Company to maintain all its rights under this distribution agreement. All purchase orders from the Company are subject to acceptance in writing by the Company; provided, however, that the Company may not refuse to accept any purchase order if the Company indicates it has a certainty or reasonable expectation of selling the products ordered within six months of the date of the purchase order.

NSJ-US. Co., Ltd. 10-Q