>Membership Terms and Conditions for ShopYourWaySM Program

Effective Date July 15, 2014


These Membership Terms and Conditions (“Membership Terms”) apply to all members of the Shop Your Way Program (previously called the Shop Your Way Rewards Program, hereafter the “Program”) offered by Sears Holdings Management Corporation (together with its affiliated companies, “Company”). Upon your completion of the enrollment process you: (i) become a Shop Your Way Member (“you” or “Member”), (ii) are issued a Member Number ( “Member Number”), and (iii) agree that you have read and accepted these Membership Terms. These Membership Terms are subject to periodic changes that Company may make in its sole discretion. Unless otherwise specified herein, all changes to these Membership Terms and the Participation Requirements apply to all Members, including Members enrolled before the date the changes take effect. By using ShopYourway.com (the “ Site”), participating in the Program or accepting any Program benefits or offers, you agree to these Membership Terms, which may be updated from time to time and are available for review at www.shopyourway.com/terms and will supersede all previous versions of these Membership Terms.

PLEASE READ THESE MEMBERSHIP TERMS CAREFULLY. THESE MEMBERSHIP TERMS INCLUDE AN ARBITRATION CLAUSE AND A WAIVER OF YOUR RIGHT TO PARTICIPATE IN A CLASS ACTION OR REPRESENTATIVE LAWSUIT.

YOU AGREE AS FOLLOWS:

1. Other Policies and Procedures. These Membership Terms are subject to the Shop Your Way Privacy Policy foundhere, and the California Privacy Policy found here (the “Privacy Policies”). Members may use the Site in connection with their membership and subject to the Terms of Use of the Site which are found here (the “Terms of Use”).

2. Program-Eligible Purchases. "Program-Eligible Purchases" means Qualifying Purchases and Qualifying Prescriptions.

"Qualifying Purchases" means qualifying purchases of products and services: (i) at participating Company Stores, (ii) from participating food concessions at Company Stores, (iii) from participating Company-branded catalogs, (iv) at participating Company licensed businesses (products and services selected by these businesses from time to time), (v) from participating Company-branded and Company-sponsored websites, (vi) from participating third-parties (including their websites) that are designated by Company including but not limited to networks, aggregators, sponsors, and consumer credit-card issuers, (”Shop Your Way Merchants”)

“Qualifying Prescriptions " means prescriptions filled at Kmart Pharmacies; provided that, the following are excluded from the definition of Qualifying Prescriptions: (A) Prescriptions paid for in whole or in part by state or federal healthcare programs; (B) prescriptions filled by Kmart Pharmacies located in AL, AR, NJ, MA, NY.; (C) prescriptions for controlled substances filled by Kmart Pharmacies located in LA and (d) prescriptions as part of an incentivized transfer program in MA, MA, NJ, OR, NY, or PR.

"Company Stores" means the following stores located in the United States: Sears; Sears Grand; Sears Essentials; Sears Hometown Stores; Sears Home Appliance Showrooms; Sears Hardware; Sears Outlet; Sears Auto Centers; Sears Home Services; Kmart; and mygofer. Lands’ End Inlet stores and the stand-alone Lands’ End Lombard, IL and Lands’ End Madison, WI are not participating Company Stores. All references to the United States herein include the District of Columbia and Puerto Rico.

3. Excluded Purchases and Layaway. The following are excluded from Qualifying Purchases (collectively " Non-Qualifying Purchases"): (i) sales and use taxes; (ii) service fees; (iii) donations to charitable organizations; (iv) commercial account purchases, including, without limitation, any purchase made with a corporate credit card, unless specifically approved by Company; (v) purchases of lottery tickets, licenses, tobacco, alcohol unless otherwise allowed by law, firearms, gift cards, postage, gasoline, and Western Union services; (vi) bill payments; (vii) credit card payments; (viii) any redemption of Points for some part or all of the purchase price; (ix) purchases of products and services via ServiceLive.com, including any fees paid to ServiceLive.com; (x) layaway payments; (xi) shipping and delivery charges; (xii) purchases from third-party vendors (other than participating Shop Your Way Merchants) on Company-branded and Company-sponsored websites if to complete a purchase the customer is redirected to the vendor’s designated website (other than a Company-branded or Company-sponsored website); (xiii) Sears and Kmart sales or auctions on eBay or any other websites; (xiv) the portion of any purchase price which is eliminated due to a coupon or other discount, (xv) purchases, transactions, and other items excluded by the terms and conditions established by Shop Your Way Merchants; (xvi) purchases outside the United States and (xvii) other items determined by Company from time to time in its sole discretion. Layaway items purchased after you become a Member will become Qualifying Purchases when you make your final layaway payment.

4. Earning Points. When you present your Member Number at the point of sale in accordance with these Membership Terms you earn base points on your Program-Eligible Purchase amount ("Base Points") at the rate or rates established by Company. Members earn Base Points at the rate of one Base Point for every $0.10 of Qualifying Purchase amount. If your Qualifying Purchase amount is not a multiple of $0.10, you earn one additional Base Point if your Qualifying Purchase amount ends in $0.05 or more. For example, a Qualifying Purchase amount of $10.75 will earn 108 Base Points, while a Qualifying Purchase amount of $10.74 will earn 107 Base Points. You earn 500 Base Points for each Qualifying Prescription filled regardless of the dollar amount of the Qualifying Prescription. Members may also earn additional Base Points on non-purchase activities pursuant to the terms and conditions governing those activities (which terms and conditions are incorporated into, and become a part of, these Membership Terms). Company reserves the right in its sole discretion to modify at any time the amounts and rates at which Base Points are earned for Program-Eligible Purchases.


Members may earn additional points, in addition to Base Points, on specified Qualifying Purchases pursuant to the terms and conditions of promotional offers (which terms and conditions are incorporated into, and become a part of, these Membership Terms ("Additional Points"). Additional Points include bonus points that are earned by Bonus Members on specified Qualifying Purchases pursuant to the terms and conditions of promotional offers (which terms and conditions are incorporated into, and become a part of, these Membership Terms (“Bonus Points”). Company reserves the right in its sole discretion to determine the terms and conditions of any Additional Point offer and to modify or terminate any Additional Point offer for any reason.

"Bonus Members" are Members who maintain a valid email address in their Program profile and who are opted-in to receiving promotional emails from the Program. Members who opt-out of receiving promotional emails from the Program ("Base Members") do not receive Bonus Points. Base Points and Additional Points are together referred to in these Membership Terms as "Points."

If an Additional Point offer gives Members the opportunity to earn, in Points, a specified multiple or percentage of a Qualifying Purchase or dollar value (for example, "2x Points," "2% of value in Points," or "$2 back in Points") (a "Multiplier Offer") the specified multiple, percentage, or dollar amount of Additional Points earned will include the Base Points earned on the purchase. For example, a Bonus Member will earn 1,000 Base Points on a $100 Qualifying Purchase. If a "2x" Multiplier Offer is applicable to the Qualifying Purchase, the total Points the Bonus Member will earn on the Qualifying Purchase will be 2,000.

If Company permits a Member to combine two or more Multiplier Offers on a Qualifying Purchase, the total number of Points the Member will earn on the Qualifying Purchase will be equal to the sum of (i) the total Base Points earned for the Qualifying Purchase (the "Total Base Points") and (ii) the Additional Points for each Multiplier Offer based on the specified multiple, percentage, or dollar amount for the Multiplier Offer less that portion of the Total Base Points that is attributable to the Multiplier Offer. For example, if a total Qualifying Purchase is $290 ($40 for shoes and $250 for tools) and if Company permits a Bonus Member to combine two Multiplier Offers (one that is 2% in Points for shoes and the other that is 10x in Points for tools) the total Points that the Bonus Member will earn on the Qualifying Purchase will be 25,800 calculated as follows: 2,900 Total Base Points (400 for shoes and 2,500 for tools) + 400 Bonus Points for shoes (800-400) + 22,500 Bonus Points for tools (25,000-2,500) = 25,800 total Points earned. Company reserves the right to adopt, modify and cease using one or more conventions, for its own convenience, for the calculation, award, redemption, crediting back and other means of adjusting Points and that such conventions may not result in 100% accuracy and that they may have disparate impact on Members depending on their behavior (e.g., rounding of Points, allocation of Points in multiple item transactions).

POINTS ARE NOT EARNED ON PROGRAM-ELIGIBLE PURCHASES MADE PRIOR TO YOUR ENROLLMENT DATE OR PRIOR TO THE START DATE OF ANY ADDITIONAL POINT OFFER OR PROMOTION. Points may be issued instantly in your Points account; however, it may take approximately 30 days or more from the date of the Qualifying Purchases to issue such points, except that Points for Qualifying Prescriptions may be issued on a quarterly basis and Points for Qualifying Purchases from Shop Your Way Merchants may take approximately 90 days or more from the date of the Qualifying Purchases to be issued. You may review your Point balance in your Points account on the Site (or such other site as designated by Company from time to time). You do not acquire property rights in any Points in, or earned but not yet issued into, your Points account.

You may also earn Base Points and Additional Points on purchases from, or using services provided by, eligible third parties (including, without limitation, Shop Your Way Merchants) pursuant to the terms and conditions governing those purchases as adopted, or approved, by Company from time to time (which terms and conditions are incorporated into, and become a part of, these Membership Terms). In addition, Shop Your Way Merchants may have separate rules that govern when Points will be issued by Company based upon purchases made at such Shop Your Way Merchants. Company from time to time may establish multiple rates for earning Base Points and Additional Points that differentiate among Members on the basis of, or that depend on, reflect, or are affected by, Member achievement of specified levels of Program-Eligible Purchases such as VIP and/or other criteria. Member achievement levels are subject to expire, and may change or be revoked at any time at the sole discretion of Company. Company from time to time may sell or otherwise transfer Points for cash or other consideration to Members, and Shop Your Way Merchants.

5. Point Redemption and Expiration; Special Promotions. Members may redeem Points on all Program-Eligible Purchases except for purchases from Sears Home Services, purchases of Prescriptions, and purchases from Shop Your Way Merchants and other parties designated by Company from time to time. You may redeem your Points at the rate or rates determined by Company (the "Redemption Value"), which rate or rates are incorporated into, and become a part of, these Membership Terms. You may redeem your Points only to pay all or a part of the purchase price for Program-Eligible Purchases. POINTS HAVE NO CASH VALUE AND MAY NOT BE REDEEMED FOR CASH, CREDIT, OR OTHER VALUE. NO CREDIT, CASH, OR OTHER VALUE WILL BE GIVEN FOR UNUSED POINTS. Company may establish multiple Redemption Values that differentiate among Members on the basis of, or that depend on, reflect, or are affected by, Member achievement of specified levels of Program-Eligible Purchases and/or similar criteria.

Further, Company may also award Point(s) to Members, or to any subset of Members from time to time. Company may attach additional or different term to any Points awarded by Company, including, without limitation, establishing different (including shorter) expiration dates for any Points provided by Company. Company may limit the availability of any Program promotion, in whole or in part, to any Member(s) at any time. EXCEPT FOR POINTS ISSUED WITH A SHORTER EXPIRATION PERIOD, POINTS EXPIRE AT THE END OF THE CALENDAR QUARTER THAT INCLUDES THE 12 MONTH ANNIVERSARY OF THE DATE THOSE POINTS WERE EARNED. Calendar-quarter end dates are March 31, June 30, September 30, and December 31. For example, 12-month Points earned on November 1, 2011 will expire on December 31, 2012. POINTS ISSUED WITH A SHORTER EXPIRATION PERIOD WILL EXPIRE AT THE TIME PERIOD SPECIFIED IN THE OFFER ON WHICH THEY WERE EARNED. ALL POINTS EXPIRE WITHOUT CREDIT, PAYMENT, OR OTHER VALUE TO YOU.

Company makes no representations that all Members will be treated equally in the Program and Member, as a condition of his/her participation in the Program, waives any claims she/he may make regarding un-equal treatment by Company of Members, for any reason not prohibited by law.

6. Membership Number Linking: Company may link (or may offer you the opportunity to link), your Member Number to other identifiers (e.g., a Sears or other credit card number, your Craftsman Club membership number, each an "Identifier"). Member understands and acknowledges that certain Identifiers may have multiple users (e.g., a credit card) and that an Identifier may only be linked to one Program Member Number at a time. All Points earned when that Identifier is present will be posted to the membership account linked to that Identifier (and all purchases made when that Identifier is present will be visible under the Account History section of the Site). If another member registers an Identifier that you registered (for example, a co-signor on your Sears card), the last person to register that Identifier will receive all Points earned when that Identifier is present in a transaction (and that member will be able to see all purchases made with that identifier under their Account History section of the SYW Site). You will not be notified if this happens. You should speak with all co-signors and others that share an Identifier with you as to when and how you approve of their use of any such Identifier in connection with the Program.

7. Returns: Any Points you earn on a Program-Eligible Purchase are deducted from your Points account if you return the merchandise, or cancel the service, comprising that Program Eligible Purchase, even if: (i) you have redeemed those Points prior to the return or cancellation, (ii) some or all of the Points deducted from your account are not related to the Program Eligible Purchase for which such return or cancellation is made, and (iii) the deduction from your Points account results in a negative Points balance. In the event that the number of Points that could be deducted from your Points account as a result of a return or cancellation exceeds your current Points account balance, Company reserves the right to determine the Redemption Value of the Points shortfall and reduce the amount of your refund or credit for such return or cancellation by such Redemption Value. For example, this would apply if you purchased an item for $100 and earned 5,000 Points, you redeemed those 5,000 Points on another purchase and then returned the $100 item you originally purchased. If you still have more than 5,000 Points in your account, the Company will deduct 5,000 Points from your account when you return the $100 item. But if you only have 2,500 Points in your account, the Company will deduct 2,500 Points from your account and may either (a) deduct the other 2,500 Points from your account to create a negative account balance of -2,500 Points or (b) convert the Points shortfall (2,500 Points) to its Redemption Value (assume it is $2.50) and deduct that amount from your refund, so the amount of your refund upon return is $97.50 instead of $100.

8. Negative Points Balance. If you have a negative Points balance, you will still earn Points on Program-Eligible Purchases, which will be applied to your Points account until a positive Points balance is restored and thereafter. If your Points balance is negative, you will not be able to redeem Points until the positive Points balance is restored. If you return a Program-Eligible Purchase while your Points balance is negative, Company reserves the right to deduct an amount equal to the Redemption Value of that negative Points balance from the purchase price to be paid to you with respect to that return. For example, if your Points balance is negative 1,000 Points and you return a $10.00 Program-Eligible Purchase, then you will receive $9.00 in cash or store credit, and 1,000 Points (a Redemption Value of $1.00) will be applied to your Points account.

9. Participation: There is no Program membership fee. The Participation Requirements for each Member are that such Member: (i) is 13 years of age or older (ii) has provided to Company (as part of their Program profile) such Member’s correct: (a) first name, (b) last name, and (c) if required to be provided at time of enrollment, zip code, and (iii) has provided a valid unique email address that such Member has the right to use. Zip code may not be required to be provided when enrolling on the Site. Company may request proof of identification and age to verify (A) your eligibility for Program membership, (B) membership participation, and (C) your compliance with these Membership Terms. By joining the Program, you agree to receive promotional emails from the Program. You may opt-out from these promotional emails at any time, but by doing so, you will cease being a Bonus Member as described above in Section 4. If you are between the ages of 13 and 18, you further agree that you a parent or legal guardian has read these Membership Terms and you have obtained their permission to be a Member of the Program.


If as a result in a change by Company in the Participation Requirements a Member no longer meets the requirements for participation, then, from the date of such change, such Member will no longer be entitled to earn Points or receive other Member benefits (and all purchases from the date of such change by such Member will be Non-Qualifying Purchases), unless and until such Member meets the revised Participation Requirements. Members who have not provided the information required in Section 9(ii) and Section 9 (iii) above (but who were valid Members prior to imposition of such requirements), will be entitled to continue as full Members of the Program (with the same rights and responsibilities as other Members); provided that, Company reserves the right to remove this exception at any time.

If you provide Company with your mobile telephone number for promotional purposes you agree that Company may send to your mobile telephone number SMS (text) regarding offers. Approximately 8 messages a month. Message and data rates may apply. Consent is not a condition of any purchase. For help, text "HELP" to any text message you receive or contact 1-800-991-8708 for customer support. To quit, text "STOP" to any text message you receive. If you reply "STOP" Company may send you an additional message confirming your "STOP" request. Text messages may not be available on all mobile carriers. Click here for Privacy Policy. If you sign-up for additional mobile programs in connection with the Program, you may receive additional messages in connection with such program.

10. Loss of Membership Number, Restrictions, and Taxes: You are entitled to only one Member Number and one Points account. Company will issue you a new Member Number and transfer your Point balance, even if negative, to your new Member Number but only if you surrender your old Member Number. If you have more than one account we may, in our discretion, combine your accounts into one Points account. We also reserve the right to close accounts at any time in our discretion. You will immediately notify Company in the event of a lost or stolen Member Number. Company is not responsible for (i) lost or stolen Member Numbers or (ii) any misuse resulting from lost or stolen Member Numbers. Your Member Number and, if you have a Membership card your Membership card, remain the property of Company and must be surrendered upon request. Except as expressly permitted by Company in its discretion, Member Numbers and Points are not transferable and may not be sold, resold, exchanged, or bartered. Points you earn or are awarded may be subject to taxation, for which you are solely responsible.

11. Fraud and Errors. Company may adjust your Points account status or Points balance, at any time and without notice, due to any (A) computer error, (B) technical issues experienced by Company, (C) machine malfunction, (D) employee, customer, or other error, (E) fraud or other misuse of Points or the Program or (F) other reason which Company deems appropriate. All transactions involving Points are subject to review and verification by Company. All Points are for one-time use, and all transactions involving Points are final unless otherwise determined by Company. Any violation of these Membership Terms may result in the confiscation or cancellation of your Points and the suspension or termination of your Membership.


12. Shop Your Way MAX: As a Member, Company may from time to time offer you a complimentary trial membership in the Shop Your Way Max shipping program (the "MAX Program"). Use of the MAX Program constitutes Member’s acceptance of the additional Membership Terms set forth in this Section 12.

(a) Program Benefits. Membership benefits are: free two day shipping on MAX Eligible Purchases at sears.com and kmart.com or through shopyourway.com, with $0.99 per item for Expedited shipping, and $3.99 per item for Premium shipping on MAX Eligible Purchases (discount on Expedited and Premium shipping is only available on Sears and Kmart products). Your membership in the MAX Program will terminate after the complimentary trial period ends, after which you may enroll in the annual program at the advertised price. The annual MAX Program will be available on websites designated by Company from time to time (e.g., Sears.com shopyourway.com, and Kmart.com, each a "Max Site") for users that have a customer profile, are a Member of the Shop Your Way Program, and whose customer profile includes their Member Number. The annual program is not available for purchases from other websites (unless otherwise designated in writing by Company), for corporate accounts or for customers who purchase products for business or institutional use or for customers who are resellers (customer who purchase and resell the items purchased to a third party).

(b) Eligible Purchases. The MAX Program is limited to qualifying small parcel items that can be shipped via USPS, UPS or FedEx, are sold by Sears, Kmart, and select Marketplace products, as indicated by the MAX logo on the MAX Sites, and that are shipped to continental United States addresses, excluding Alaska, Hawaii, P.O. boxes, APO/FPO and U.S. territories, and possessions ("MAX Eligible Purchases"). At Company’s sole discretion, Company may: (i) make additional products MAX Eligible Purchases, and (ii) exclude products from being MAX Eligible Purchases including, but not limited to, oversize or heavy items, items regulated as hazardous materials, alcohol, appliances, fitness equipment, and other items with special shipping characteristics or under a minimum dollar threshold. Products sold on non-Max Sites (e.g., on third-party web sites) are NOT considered MAX Eligible Purchases for purposes of the Program.

(c) Conditions. Member must have a valid, active account on the MAX Site(s) that the MAX Program is offered on and you are ordering from. Except as expressly permitted in Company’s sole discretion, you may not transfer or assign your membership or any benefits under the MAX Program. Some special product, order, handling fees and/or taxes may still apply to MAX Eligible Purchases. If only some of the items in your order are MAX Eligible Purchases, you will pay applicable shipping charges for the items that are not MAX Eligible Purchases. Changing or combining orders, or changing your shipping address, method of shipping, or other preferences might affect whether or not the merchandise is a MAX Eligible Purchase under the MAX Program.

Please note:

· Premium and expedited shipping are options we use to determine your estimated delivery date (these options do not reflect product availability or our estimated shipping date);

· At our sole discretion, we may ship the products by ground or air (these options do not correspond to any carrier-branded shipping services);

· Our carriers usually do not pick-up or deliver packages on weekends or holidays;

· We do not guarantee delivery of products within the estimated transit time or by the estimated delivery date.


(d) Termination and Membership Cancellation. Company may terminate your MAX Program membership in its sole discretion. Member may cancel MAX Program membership at any time by signing into the “ My Profile” section of the Site and visiting the SHOP YOUR WAY MAX section or, calling the Sears Customer Care Center at (1-800-349-4358) or the Kmart Customer Care Center at (1-866-562-7848) to cancel by phone. Canceling your MAX Program membership does not cancel your membership in the Program. If you cancel your membership in the Program or the Company terminates the Program or your participation in the Program, the Company reserves the right to terminate your participation in the MAX Program.

13. Membership Terms: The Program is void where prohibited by law. All references by the Company on the Site, or otherwise, to the Shop Your Way program shall be deemed references to the Program. Use of the Site, without enrolling in the Program, does not make you a Member and does not entitle you to the benefits of membership in the Program. If any provision of these Membership Terms is found to be unlawful, void or for any reason unenforceable, that provision will be deemed severable from these Membership Terms and will not affect the validity and enforceability of any remaining provision. Participation in the Program is subject to these Membership Terms and all other terms and conditions, rules, policies, and procedures that Company may establish or change at any time and from time to time without notice.

Company may change the Program and these Membership Terms at any time and without notice, including but not limited to (i) changing the Program’s earning rates, (ii) changing the Program’s structure, (iii) removing or changing Points, including the rate at which Points are earned, (iv) changing the Redemption Value of Points, (v) raising or lowering Point levels, (vi) revising the procedures and rules for earning or redeeming Points, (vii) changing when Points expire, (viii) associating, combining, integrating, linking, or merging the Program with other programs, (ix) associating, combining, integrating, linking, or merging other programs with the Program, and (x) changing the list of participating: (I) Company Stores, (II) food concessions at Company Stores, (III) Company-branded catalogs, (IV) Company licensed businesses, (V) Company-branded and Company-sponsored websites, and (VI) Shop Your Way Merchants. Company may make these changes even if these changes affect your ability to use Points already accumulated. You are responsible for remaining knowledgeable about these Membership Terms. Your continued participation in the Program constitutes your acceptance of any changes to these Membership Terms.

If to access your Points account you use a user ID and password, you are fully responsible for maintaining their confidentiality. You are fully responsible for all activities that occur with respect to your user ID and password whether or not you authorize the activities. You must immediately notify Company of any unauthorized use of your user ID or password of which you become aware. You acquire no property rights in your password, Member Number, or Points account. You may not give access to your Points account to any third-party on-line service, including but not limited to any points management service, points tracking service, points aggregation service, or other service.

The interpretation and application of these Membership Terms is at the sole discretion and determination of Company, which in each case is final and conclusive. Company assumes no responsibility for errors caused by equipment or system malfunctions, acts of God or other items outside of Company’s control, or incorrect Member information and Member understands and acknowledges that certain limited time offers may not be available due to the foregoing interruptions ("Interruptions") and therefore Member may not have an opportunity to take advantage of such offers. Company reserves the right, in its sole discretion, to either extend a limited time offer (or not) or offer an alternative offer (or not) in the event of an Interruption and Member waives any claim Member may have due to his/her inability to accept an offer or redeem her/his Points due to such Interruption. If you wish to discontinue your participation in the Program you may cancel at any time by contacting: Shop Your Way Customer Relations at P.O. Box 365, Dodgeville, WI 53533 or by calling 800.991.8708 during business hours.

Important Notice Concerning Credit Card / Financing Offers: THE INFORMATION YOU HAVE GIVEN COMPANY FOR THE PROGRAM MAY BE USED TO MAKE PREAPPROVED CREDIT OFFERS TO YOU.

The laws of the State of Illinois apply to the Program and these Membership Terms without regard to any conflict of law rules that may require the application of the laws of another jurisdiction. Our failure to insist upon or enforce your strict compliance with these Membership Terms will not constitute a waiver of any of our rights.

13. Confidential Arbitration: You agree that by entering into these Membership Terms, you and Company are each waiving the right to trial by jury and the ability to participate in a class action. ANY AND ALL DISPUTES COMPANY OR YOU HAS RELATING IN ANY WAY TO THE PROGRAM OR YOUR RELATIONSHIP WITH THE COMPANY (INCLUDING WITHOUT LIMITATION WITH RESPECT TO POINTS, PROGRAM DATA, YOUR TRANSACTIONS WITH THE COMPANY, COMPANY’S ADVERTISEMENTS AND DISCLOSURES, EMAIL AND MOBILE SMS (TEXT) MESSAGES COMPANY SENDS TO YOU, OR THE USE OR DISCLOSURE OF ANY INFORMATION ABOUT YOU), THESE MEMBERSHIP TERMS, PRIVACY POLCIES, TERMS OF USE, THE SITE OR YOUR STATUS AS A MEMBER (COLLECTIVELY, “PROGRAM CLAIMS”) WILL BE SUBMITTED TO CONFIDENTIAL ARBITRATION IN THE FEDERAL JUDICIAL DISTRICT IN WHICH YOU RESIDE, EXCEPT TO THE EXTENT THAT YOU HAVE, IN ANY WAY, VIOLATED OR THREATENED TO VIOLATE ANY COMPANY INTELLECTUAL PROPERTY RIGHT. PROGRAM CLAIMS INCLUDE CLAIMS BASED ON CONTRACT, TORT (INCLUDING INTENTIONAL TORT), FRAUD, AGENCY, YOUR OR THE COMPANY’S NEGLIGENCE, STATUTORY OR REGULATORY PROVISIONS, OR ANY OTHER SOURCE OF LAW.

A Member who intends to seek arbitration must first send to the Company, by certified mail, a written Notice of Dispute ("Notice"). The Notice to Company must be mailed to 3333 Beverly Road, Hoffman Estates, IL, Attn: SVP Shop Your Way and copied to Sears Holdings Corporation, 3333 Beverly Road, Hoffman Estates, IL 60179, Attn: General Counsel. The Notice shall describe the nature and basis of the claim or disputes and the specific relief sought. If you and we cannot reach an agreement to resolve the claim within thirty (30) days after the Notice is received, you or we may commence arbitration.

All arbitrations required by these Membership Terms will be conducted under the Commercial Arbitration rules of the American Arbitration Association. The arbitrator’s award is binding and may be entered in any court of competent jurisdiction. To the fullest extent permitted by applicable law, no arbitration brought under, or with respect to, Program Claims is to be joined to an arbitration involving any other party subject to these Membership Terms whether through class arbitration proceedings or otherwise. Unless Company and Member agree otherwise, the arbitrator may not consolidate more than one person’s claims, and may not otherwise preside over any form of a representative, private attorney general or class proceeding.

For arbitration claims you assert against Company in accordance with this section (but not for any arbitration claim against you) Company will pay all of your administrative, hearing, and arbitrator’s fees and costs for the arbitration (but not the fees, expenses, and costs of your lawyers, experts, or witnesses) in excess of any filing fee you would have been required to pay to file the claim as a lawsuit in a state or federal court (whichever is greater) in the judicial district in which you reside. Unless unlawful, Company will pay its, and you will pay your, lawyers’, experts’, and witness fees, expenses, and costs with respect to all claims. The arbitrator may award money or equitable relief in favor of only the individual party seeking relief and only to the extent necessary to provide relief warranted by that party’s individual claim. Similarly, an arbitration award and any judgment confirming it apply only to that specific case; it cannot be used in any other case except to enforce the award itself. To reduce the time and expense of the arbitration, the arbitrator will not provide a statement of reasons for his or her award unless requested to do so by all parties.

TO THE EXTENT PERMITTED BY LAW, YOU WILL NOT AGREE TO ACT AS A REPRESENTATIVE OR A PRIVATE ATTORNEY GENERAL, OR IN ANY OTHER REPRESENTATIVE CAPACITY, OR PARTICIPATE AS A MEMBER OF A CLASS OF CLAIMANTS IN ANY LAWSUIT AGAINST COMPANY IN ANY COURT, OR IN ARBITRATION, WITH RESPECT TO ANY PROGRAM CLAIMS. THIS SECTION 13 (CONFIDENTIAL ARBITRATION) WILL SURVIVE THE TERMINATION OF THE RELATIONSHIP BETWEEN YOU AND COMPANY.

Company or you may seek injunctive relief only in any state or federal court in Chicago, Illinois, USA, and Company and you consent to the exclusive jurisdiction and venue in the state and federal courts in Chicago, Illinois, USA for injunctive relief purposes. The arbitrator shall have no authority to issue injunctive relief.

NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THESE MEMBERSHIP TERMS, UNDER NO CIRCUMSTANCES IS COMPANY LIABLE FOR ANY INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL DAMAGES. YOUR MAXIMUM RECOVERY UNDER ANY THEORY OF LIABILITY SHALL NOT EXCEED THE AMOUNT OF POINTS AWARDED TO YOU BY COMPANY DURING THE FIRST SIX (6) MONTHS PRECEDING THAT ACT OR OMSSION WHICH GAVE RISE TO YOUR PROGRAM CLAIM(S).

Visit the www.shopyourway.com/terms for the most current Membership Terms and Conditions.

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