1. Description of Service
TAU currently provides the following information and services ( the "Services" ) to its registered Customers:
- detailed data on and photos of Items ( damaged/used vehicles, boats, automobile-related parts and other items ( "Items" ) ) in its stock list which are for sale to customers;
- TAU internet auctions where certain Items are offered for sale;
- for each Item listed on the stock/auction list, an estimated shipping/delivery charge upon the Customer's request, based on the destination of the Customer's choosing;
- by providing a unique Customer ID and password, the provision of a personal page for Customers where they can review and change their personal information ( such as contact name, address, telephone number, etc. ) and display detailed data pertaining to any ordered Items, and the payment/shipping status pertaining thereto; and
- certain additional services ( such as shipping/delivery arrangements ) as described in some detail on the TAU Site.

TAU will use customer registration information only in connection with its provision of the Services, and always in accordance with the Personal Protection Act ( May 30 2003 article 57 of the law ) of Japan, as amended and currently in force from time to time, and any other applicable law or international treaties regarding personal information protection.

2. Customer Requirements

- Access to the TAU Site for the above services is permitted to registered Customers of TAU only in the event they (a) agree to this Agreement, (b) provide their required personal information specified on the applicable registration screen, and (c) obtain a unique TAU Customer ID. You, as an applying Customer, will select your own password in the registration process. Customers in Japan shall, if requested by TAU, submit an identification that contains registered used business membership records.
- The "Customer" or "Customers" as referred to in this Agreement and on the TAU Site mean individuals, corporations, or individuals representing corporations, who have agreed to use the Services for personal or commercial purposes on the terms of this Agreement.
- TAU reserves the right to terminate the accounts of Members without notice in the following circumstances:

• Where a Customer is in breach or violation of this Agreement.
• Where a Customer, whether an individual or corporation, is bankrupt or when the possibility of bankruptcy of the Customer reasonably exists, as perceived and determined by TAU, in its sole discretion.
• Where the registration information provided by a Customer is found to be untrue, inaccurate, or incomplete.
• Where it becomes evident that a Customer is related to any anti-social group such as a criminal organization.
• Where a Customer has defaulted in payment for any Items ordered/purchased via the TAU Site.
• Where TAU, in its sole discretion, determines that the Customer no longer qualifies for membership.

Disqualification from membership will not discharge the Member from fulfillment of accrued obligations, and the Customer is obliged to pay the outstanding balance immediately upon a payment demand made to the Customer by TAU.

3. Updating Customers' personal information
- You agree to: (a) provide accurate and current information in the registration form, and (b) to promptly update such registration data in the event of any changes to the data. You acknowledge and agree that TAU will not be responsible for any loss due to disrupted delivery of the Service ( such as delivery/shipping arrangements ) resulting from your failure to promptly update your Customer data.

4. Maintaining your Customer ID and password
- The Customer is responsible for maintaining the confidentiality of the Customer ID and password for the TAU Site.
- The Customer acknowledges that the Customer will be solely responsible for, and indemnify TAU from, any loss or damage to TAU or third parties arising from the Customer's failure to sufficiently maintain or if the Customer improperly uses the Customer ID and password. TAU will, further, not be liable in any way or to any extent for any loss or damage to the Customer arising from the foregoing.
- You agree to notify TAU if the Customer has proof of, or reasonable grounds to suspect, any unauthorized use of Customer information or other unauthorized or inappropriate access to, or use of, the TAU Site.

5. Execution of a Sales Contract
<Vehicles, automobile-related parts, daily necessities>
- By clicking on either of (a) the "Confirm" button on the Offer/Confirm Offer screen, or (b) the "Place a Bid" button on the auction screen pertaining to the desired Item, the Customer is considered and hereby agrees to have confirmed the Customer's intention to purchase the subject Item.
- A sales contract for an Item shall be complete when the Customer receives a "Sales Contract email" from TAU upon receipt of the Customer's offer, or upon the conclusion of an auction where the Customer end as the winning bidder in the auction.
In conjunction with the "Sales Contract email" referred to above, a description of the purchased Item will be added to the Customer's purchase history on file with TAU, and an invoice will be available for the Customer to print via your Customer page. TAU can also fax or mail invoices to its Japan customers upon request.
- Ownership of the Item is transferred from TAU to the Customer when TAU confirm the Customer's payment arrival to the bank account of TAU.
- The handover of the vehicle after the transfer of ownership shall be done at TAU storage yard. In the case of the Customer receive vehicle at TAU storage yard, it needs to fill in all the necessary items on "Confirmation form" and FAX it to TAU storage yard by previous day of picking up vehicle.
If the Customer requests delivery services, TAU may provide such delivery/shipping services for a fee.
- If the Customer requests delivery/shipping services from TAU, TAU will accept liability for damage to the Item only to the extent and as specified in "14. Claims" of the customer agreement.
- The prices of the vehicles indicated on the TAU stock list are reference prices. Members may offer higher prices than such reference prices. In the event that TAU receives two or more offers for a vehicle, TAU reserves the right to select the purchaser in its sole discretion.
- Sales agreements placed through means other than the above, including verbal agreements, facsimiles and email correspondence ( except for the above mentioned email notification ), regardless of your interpretation of such agreements, are not accepted as official sales agreements with TAU, and thus the Customer agrees to indemnify TAU from any damages arising from such proposed engagements.

<Boats>
- By clicking on the "Confirm" button on the Offer/Confirm Offer screen, the Customer is considered and hereby agrees to have confirmed the Customer's intention to purchase the subject Item.
- Customer receives a "Sales Contract email" from TAU upon receipt of the Customer's offer.
In conjunction with the "Sales Contract email" referred to above, a description of the purchased Item will be added to the Customer's purchase history on file with TAU, and an invoice will be available for the Customer to print via your Customer page. TAU can also fax or mail invoices to its Japan customers upon request.
- A sales contract for an Item shall be complete when TAU confirm the Customer's payment arrival to the bank account of TAU and TAU gives notice that TAU can sell the Item to the Customer. At the same time, ownership of the Item is transferred from TAU to the Customer.
- The handover of the Item after the transfer of ownership shall be done at the place where TAU and the Customer agreed. If the Customer requests delivery services, TAU may provide such delivery/shipping services for a fee.
- If the Customer requests delivery/shipping services from TAU, TAU will accept liability for damage to the Item only to the extent and as specified in "14. Claim" of the customer agreement.
- The prices of the Items indicated on the TAU stock list are reference prices. Members may offer higher prices than such reference prices. In the event that TAU receives two or more offers for an Item, TAU reserves the right to select the purchaser in its sole discretion.
- Sales agreements placed through means other than the above, including verbal agreements, facsimiles and email correspondence ( except for the above mentioned email notification ), regardless of your interpretation of such agreements, are not accepted as official sales agreements with TAU, and thus the Customer agrees to indemnify TAU from any damages arising from such proposed engagements.

6. Payment Method
- Customers agree to remit their full payment by wire transfer to the bank account specified in their invoice within forty eight (48) hours of completion of the applicable sales contract ( in case of purchasing boat, after invoice is issued ), ( in case of a bank holiday in the Customer's country of residence, such bank holiday (s) shall not be included in the 48 hours ) and to fax TAU a bank receipt of the remittance, for confirmation purposes ( credit card payments are accepted for purchases of automobile-related parts only ). Customers must ensure that they write on the fax their Customer ID and the stock number of the applicable Item (s) when faxing such confirmation.
- Payment should be effected in Japanese yen (JPY). In the event that bank of the Customer's country of residence dose not deal in Japanese yen, or where there exists a special reason ( such as much higher exchange fees in the case of Japanese yen ) TAU may accept payment in US dollars. TAU will charge the Customer using the "TAU rate" calculated by applying a rate JPY1.5 higher than the TTB rate announced by the Bank of Tokyo-Mitsubishi UFJ on the date of the Sales Contract.
- Delay of a Customer's payment without notice may lead to a cancellation of the sales contract ( and potentially a claim arising against the defaulting Customer ), in which case TAU will notify the Customer by email.

7. Cancellation Fee
- In the event a Customer cancels the Sales Contract with TAU Corporation due to the reasons caused by the Customer after the Sales Contract has been concluded, the Customer may be charged the following Cancellation fees.
Flat-rate of JPY100,000 shall be charged for vehicles and automobile-related parts of its purchase price JPY100,000 - JPY1,000,000.
10% of its purchase price shall be charged for vehicles and automobile-related parts of its purchase price more than JPY1,000,000.
100% of the purchase price shall be charged for vehicles and automobile-related parts of its purchase price less than JPY100,000.
Top limit of cancellation fee for boats is set equal to purchase price of the appropriate item.

8. Delivery and Shipping Services
- All prices on the TAU Site reflect the specific Item purchase prices only ( e.g. the vehicle price ). Delivery/shipping/storage charge/yard operation charge will be applied separately. The consumption tax will be also charged to the total price unless the shipping of the purchased item is not arranged by TAU. As a general rule, the delivery method will be determined at the time of purchase and the shipping charge will be due at the same time as payment is made for the Item itself. Delivery/Shipping charges on the TAU Site are for general guidance purposes only. The exact charges will be stated in the applicable Customer's invoice (s).
- A smooth delivery/shipping arrangement by TAU is available, upon request, following the confirmation of the Customer's payment for the Item (s) and delivery, etc. Once the delivery/shipping schedule is determined, TAU will insert the information into the Customer's Customers page and will notify the Customer by email.
- The delivery schedule is subject to change without notice due to the transporter's reason, as if unfolds we will try to inform you as soon as possible.
- In the event a Customer doesn't use the shipping/delivery arrangements by TAU, the Customer must pick up the Items from TAU yards immediately. TAU shall scrap the Items if they are not picked up within 6months after the sales contract was concluded, In such case, the Customer cannot insist on compensation.
- In case TAU keeps the Customer's Items at TAU storage yard by the Customer's reason, storage fee is free for 30 days ( 60 days in case of the Customer use container for shipping ) from the date of payment. After the free storage term period, if TAU continues to keep the Items for reasons attributable to the Customer, the Customer pays JPY10,000/Item every month ( not including consumption tax ). If the Customer does not pay the storage fee charged by TAU, the Customer's ownership of the Items will be held to be abandoned and TAU shall scrap the Items. In such case, the Customer cannot insist on compensation.
- TAU accepts liability for damage caused by TAU or its contracted vendors during delivery/storage only to the extent provided in our Claim Terms referred to above. TAU will not be responsible for any damages caused after the shipment of the applicable cargo from the Japanese port ( in case of handover in Japan, after taking out from TAU storage yard ); it is therefore highly recommended that Customers cover their purchases Items with appropriate insurance (s) from the time of purchase.
- Purchased vehicles shall in general be insured on F.P.A conditions prior to shipping. If the Customer requires greater warranty protection, TAU recommends coverage by additional insurance.
- In the case of automobile related parts, after the Items arrive to the shipping address, the Items may return to TAU by wrong information the Customer specified or long absence of receiver. In such case, the Customer bear cost for return and resend.

9. Documentation
- All documentation with respect to the purchased Item (s) ( e.g. the vehicle ) will be sent to the Customer following the delivery of the Item. If TAU make shipping arrangement at the Customer's request, all documents -- including the Bill of Lading -- will be sent by DHL courier or EMS ( or equivalent international courier service ) following the applicable cargo ship's departure. The Customer may receive the Item ( e.g. the vehicle ) by showing identification of the Customer and the Bill of Lading.
- In the case of the Customer lost original registration-related documents sent by TAU, TAU do not accept reissue the documents essentially. However, if the owner on record of the original documents is TAU, there is a possibility that TAU accepts reissue the documents. If TAU send the documents reissued by TAU, the Customer pays JPY20,000 ( not including consumption tax ).

10. Changing of the ownership and others
- Customer who receives the purchased vehicles in Japan must submit the certification showing 1. the change of ownership or 2. the Exportation of vehicle, or 3. Re-registration of the deregistered vehicle or 4. Dismantlement of the vehicle. However if TAU arranges the shipping of the vehicle, the procedures above are not needed.

11. Confidentiality
- In the event that the Customer receives any information regarding customer information and/or personal information of the former owner (s) in any documents pertaining to the subject vehicle, the Customer may use such information only to change ownership and shall not use or disclose this information to any other party. The Customer shall observe applicable personal information protection laws and relevant applicable laws, and maintain such information ( including corporative information ) in good faith.

12. Bidding Qualifications

- The following prerequisites must be satisfied before a Customer is entitled to place a bid on TAU's auction site:

• The Customer has purchased at least one vehicle from the stock list through the TAU Site, and the payment therefore has been satisfactorily confirmed by TAU. Or auction deposit (JPY100,000) has arrived in the bank account of TAU.
• The Customer has never canceled a sales contract with TAU by the Customer's reason after having a winning bid in a TAU auction in the past. ( the Customer may regain a bidding qualification by purchasing a vehicle from the stock list and confirmation of the corresponding payment by TAU after paying cancellation fee or auction deposit (JPY100,000) has arrived to the bank account of TAU again. )

- In the event that TAU, in its sole discretion, determines that a Customer should be disqualified from bidding on TAU's auction site, the subject Customer's bidding qualification will be terminated regardless of the Customer's fulfillment of the conditions set forth above.

13. Auction Method
- The prices on the TAU Site's auction list reflect the specific Item purchase prices only ( e.g. the vehicle price ). Additional charges will apply in the event a Customer requests the delivery/shipping arrangements of TAU. The Customer should select the desired destination and shipping method when placing a bid at the auction.
- At the start of an auction, detailed Item information is placed on the auction site, along with the current bid price and the time remaining. To review the latest status of an auction, the Customer should click on the "Refresh" button of the Internet browser to refresh the status.
- There are two methods of bidding at a TAU Site auction: "straight bidding" and "automatic bidding". Customers should read the "HOW TO BID" section of the TAU Site for more details in this respect.
- The Customer will receive the updated status of an auction, via an automated transmission system, to the Customer's registered email address when (a) the Customer places a bid; (b) another bidder makes a higher bid than the Customer's bid; or (c) when a bid is awarded a contract. The above information is also available on the "MY AUCTION" section of the Customer's page.
- Upon conclusion of an auction the winning bidder will receive a sales contract email. Within forty eight (48) hours of the completion of a sales contract, the Customer is required to remit payment by telegraphic transfer to the bank account specified on the Customer's invoice. Please note that a cancellation of the sales contract will not be permitted after winning at an auction.
- When the suggested contract price is reached during an auction, TAU, in its sole discretion, may prompt for an early termination of the auction, in which case the then current highest bidder will be the winner of the auction.
- In the event that an auction is terminated prior to the scheduled closing time due to unavoidable circumstances such as system failure, TAU uses its discretion to determine whether to award a contract to the highest bidder at that point or to restart the auction. TAU will not be liable for any loss or damage arising from such circumstances.

14. Claims

- Responsibility to avoid claims
When information on an Item ( e.g. a vehicle ) is posted on the TAU site, TAU shall attempt to provide the most accurate information possible, and shall base sales on the said information. In the event of a material error in the information, TAU shall bear liability to indemnify for damages to the extent required by the Agreement. When TAU contracts a delivery and shipment, TAU shall attempt to prevent damage to the vehicle caused by accident, etc. In the event that such damage is incurred, however, TAU shall indemnify with respect to the damage in accordance with this Agreement.

- Conditions for claims:
TAU will accept a claims form from Customers when all the following conditions are met:

1. The claim is made within fifteen (15) days ( or eight (8) days in the event of loss of accessories ) from the date of arrival at the designated place of delivery of the Item ( e.g. the vehicle ), or at the designated port. In the case of handover the Item ( e.g. the vehicle ) at TAU storage yard, the claim is made within fifteen (15) days ( or eight (8) days in the event of loss of accessories ) from the date of handover the Item. However, in the case, the claim is made within free storage term.
2. The price of the principal Item is not less than JPY100,000 ( in the case of damaged or used vehicles ), and not less than JPY500,000 in the case of boats.
3. With regard to the contents of the declared claim, the Customer shall be responsible to make clear the location where the loss in question has occurred, and prepare photographic or documentary evidence as specified below.
4. The Customer shall submit the vehicle description from the TAU site, or submit the contents and correspondence history ( e.g. emails, etc. ) received from a TAU sales representative prior to purchase.

- Disclaimer for claims:
TAU will not accept the claims from Customers in the following cases.

1. Claims for amount of loss estimated by TAU is less than JPY30,000
2. Claims for engine and transmission of the vehicle described as "Engine/Transmission pushed back"
3. Claims for engine and transmission of the vehicle described as "Drive shaft separated"
4. Claims for the misdescription part shown in photos clearly
5. Claims for vehicle checked and purchased by the Customer at TAU storage yard
6. Claims for change in state of water damaged vehicle
7. Claims for engine of overturned vehicle
8. Claims for trouble and indemnity between the Customer and the Customer's buyer
9. Claims for repair parts purchased by the Customer before making claims for vehicle and resale benefit estimated by the Customer
10. Claims for spare key missing not described in remarks column on vehicle details description
11. Claims for delivery/shipping delay by transportation/shipping company
12. Claims fail to fulfill above "Conditions for claims"
13. Claims for any damage under the circumstances written 'no indemnification' in the below "Standard of damages"
14. Claims for any damage arise from any cause beyond the reasonable control of TAU, including, but not limited to an act of God; storm, downpour, flood, earthquake, war or riot

- Steps to file a claim with TAU:
Customers shall file a claim only upon satisfying the above conditions and mismatched above disclaimer.

1. Upon discovery of the problem, the Customer shall immediately inform a TAU sales representative of the problem by e-mail.
2. Following its careful examination and inspection of the contents of the claim, TAU will contact the Customer and will correspond by the stated method below.

- Standard of damages
TAU complies with the "standard of damages" and correspond for Claims satisfied the above conditions for claims and mismatched above disclaimer for claims. In case the Claims are not satisfied the above conditions and mismatched above disclaimer, all compensation claims are dismissed.

<Damaged/Used vehicles and boats>

	Claim	Time Limit for Filing	Required Evidence	Applicable Circumstances	Compensation Limit
1	Loss of accessories on a vehicle	8 days (ref. section 1 of conditions for claims)	photographic evidence, statement from shipping company	where loss or theft occurs before shipment (Or before delivery from TAU storage yard in case of delivery and receipt in Japan)	amount equivalent to the loss
				where loss or theft occurs after shipment (Or after delivery from TAU storage yard in case of delivery and receipt in Japan)	no indemnification
2	Items (or its condition) are vastly different from the description on the TAU Site	15 days (ref. section 1 of conditions for claims)	photographic evidence, estimate of repairer	where an error in assessment or description is clearly determined	amount equivalent to the loss (Item price is set as maximum)
				when the terms or conditions may have changed after the shipment (Or after delivery from TAU storage yard in case of delivery and receipt in Japan)	no indemnification
3	The vehicle's engine or transmission is different from the description on the site	15 days (ref. section 1 of conditions for claims)	photographic evidence, estimate of repairer	where an error in assessment or description is clearly determined (applicable only to the merchandise less than 100,000km of use, less than ten (10) years from the manufacturing date)	amount equivalent to the loss (Item price is set as maximum)
				when the terms or conditions may have changed after the shipment (Or after delivery from TAU storage yard in case of delivery and receipt in Japan)	no indemnification
4	The vehicle's engine number is unknown	15 days (ref. section 1 of conditions for claims)	photographic evidence	when it is considered impossible to read the engine No. due to such reason as rust.	amount equivalent to the loss (vehicle price is set as maximum)
5	Difference in mileage of the vehicle	15 days (ref. section 1 of conditions for claims)	documented evidence	when an error in assessment or description is clearly determined	difference in value (vehicle　price is set as maximum)

*In the case of handover the Item at TAU storage yard, the claim is made within free storage term.

<Automobile-related parts>

	Claim	Time Limit for Filing	Required Evidence	Applicable Circumstances	Compensation Limit
1	Loss of Item	8 days (ref. section 1 of conditions for claims)	photographic evidence, statement from shipping company or photographic or copy of the invoice from courier (e.g. DHL, EMS)	where loss or theft occurs　before shipment (Or before delivery from TAU storage yard in case of delivery and receipt in Japan)	amount equivalent to the loss
				where loss or theft occurs after shipment (Or after delivery from TAU storage yard in case of delivery and receipt in Japan)	no indemnification
2	Breakage of Item	8 days (ref. section 1 of conditions for claims)	photographic evidence, statement from shipping company or photographic or copy of the invoice from courier (e.g. DHL, EMS)	where breakage occurs before shipment (Or before delivery from TAU storage yard in case of delivery and receipt in Japan)	amount equivalent to the breakage
				where breakage occurs after shipment (Or after delivery from TAU storage yard in case of delivery and receipt in Japan)	no indemnification
3	Mismatching of Item	15 days (ref. section 1 of conditions for claims)	photographic evidence	when cause is regarded as wrong order or offer by TAU	amount equivalent to the loss (Item price is set as maximum)
				when cause is remodeling or structure-changing of vehicle for purchased automobile-related parts	no indemnification

*In the case of handover the Item at TAU storage yard, the claim is made within free storage term.

- Method of indemnification payment
TAU shall indemnify the contents of the loss as agreed upon with the Customer by any of the following methods:

1. TAU shall keep the amount of indemnification as a receipt in advance of the Customer's next purchase.
2. TAU shall arrange and send parts to replace the lost or damaged parts.
3. TAU shall reimburse the bank account designated by the Customer.

- Force Majeure
TAU shall not be liable to Customer (s) for any damage if such damage arise from any cause beyond the reasonable control of TAU, including, but not limited to an act of God; storm, downpour, flood, earthquake, war or riot.

15. Customer Conduct
- Customers agree not to use any of the content provided through the TAU Site in a way that constitutes infringement of patents, utility model rights, copyrights, trademarks, design rights, rights of likeness, and privacy rights.
- In the event that a Customer violates the above provision, TAU may demand that the Customer make reparations and/or compensate TAU for the damages arising from such infringements - to the reasonable extent that would not offend public order and morals.

16. Disclaimer of Warranties
- The Customer agrees that TAU will be liable ( AND EXPRESSLY DOES NOT ACCEPT ANY OTHER LIABILITY ) only for damages resulting from the delayed provision of, modification, interruption, or termination of its service, or for any damages arising from any other matters relating to the use of its service and/or the TAU Site, unless otherwise brought about intentionally or due to the gross negligence of TAU, to the extent specified in the "Terms of Claim".

17. Choice of Law and Forum
- This Agreement shall be governed by the applicable laws of Japan. Both the Customer and TAU agree to submit to the exclusive jurisdiction of the Tokyo District Court in Japan with respect to any disputes arising out of this Agreement.