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July 11, 2006

Erox Electronics, Inc
[住所]

Attn: Robert Erox, President

Dear Mr. Erox

Re: Credit Terms

Business reasons requir Eibun USA Corporation, a California corporation (“Eibun”), to periodically review dealer accounts and, if necessary, modify the terms and conditions upon which Eibun agrees to sell products to dealers. Over the years, Eibun has its relationship with Erox Electronics, Inc (“Erox”) and looks forward to a mutually beneficial relationship with Erox in the future.

As you know, Erox is a non-exclusive distributor of Eibun products, the relationship is terminable at will by Eibun, which may accept or reject any purchase orders submitted by Erox in its sole discretion. In the past, Eibun has permitted Erox to purchase products on credit, within limits set by Eibun through exercise of its discretion. In addition to other invoice terms and conditions, an important term of those credit sales requires payment to be received by Eibun within 30 days; timely payment is a material inducement for Eibun to extend credit. Recently Erox has repeatedly submitted late payments.

As a result of Erox’s late payment history, Eibun must consider reducing the amount of credit extended to Erox as well as alternative payment methods. In the event Erox fails to make timely payment of any outstanding or future invoices, Eibun intends to restrict or suspend credit sales. In that case, Eibun may require shipments to be C.O.D., or if necessary that all purchase orders be prepaid in full by wire transfer, with confirmation received prior to shipment. Of course, all terms and conditions remain subject to change at Eibun’s discretion and Erox should not reply on anything herein as establishing a right to purchase products from Erox in the future.

I hope that you receive this letter in the spirit of cooperation with which it is intended, and Eibun looks forward to a sound business relationship going forward.

Sincerely,

Ryuzaburo Eibun
President