This Sears PurchaseProtect plan is a legal contract(referred to hereinafter as “Agreement” or “Plan”) between you the customer andthe Obligor. Throughout this Agreement the terms “Obligor”, “we,” “us,” and“our” refer to Sears Protection Company or Sears Protection Company (Florida),L.L.C. The terms “you” and “your” refer to the purchaser of this Plan.Obligations under this Agreement are backed by the full faith and credit of theObligor. ALSO SEE SPECIAL STATE EXCLUSIONS BELOW.

1.  COVEREDPRODUCT. Thecoverage provided by this Agreement applies only to the productfor which youspecifically purchased this Plan to cover (each referred to hereinafter as a“Covered Product”) as shown on your Sears sales receipt. The sales receipt isincorporated herein by reference.

2.  ELIGIBILITYFOR COVERAGE. ThisPlan must be purchased at the same time as the purchase of the merchandise tobe covered.

3.  TERM. The term of thisAgreement (“Term”) is three (3) years for Sears&rquo; Craftsman and Kenmoreproducts and two (2) years for all other products. In accordance withSears&rquo; Return Policy shown on your receipt, the Term for homeelectronics products begins on the 31st day after the date the original productwas purchased, and the Term for all other products begins on either the 61st or91stday (depending on the product type) after the date the original product waspurchased. This Plan will be fulfilled and the Term shall expire when a productreimbursement or product exchange is made after the beginning of the Term. ThisAgreement is not renewable.

4.  FULFILLMENTINSTRUCTIONS. Youmust keep your sales receipt. It will be a required reference for storereturn(s), registration of your Plan, and making a claim. Coverage under thisPlan does not begin until after the applicable deadline passes for returningyour product to your local Sears store under Sears&rquo; Return Policy (seeyour sales receipt for explanation of Sears Return Policy). If your productfails prior to the commencement of coverage under this Plan, please return theproduct to your local Sears store for return or exchange in accordance withSears&rquo; Return Policy. If your Covered Product fails after the Term ofthis PurchaseProtect plan begins (see Section 3 above), then call customerservice at 1-800-573-1088 or go online at www.searspurchaseprotect.com to initiate aclaim. There is no deductible for this Plan.

If product failure occurs

then product is

Customer should:

within 30 days of original purchase for home electronics

Not yet covered under this Plan.

return the product to local Sears store

within 60days of original purchase for; Lawn & Garden, Patio & Outdoor Living Items, Fitness, Outdoor & Sporting Goods, Water Treatment, Plumbing & Heating, Floor Care Items & Vacuums, Sewing Machines, Tools, Toys & Games, and Holiday & Seasonal Items

Not yet covered under this Plan.

return the product to local Sears store

within 90 days of original purchase for; Beauty, Health & Personal Care, Luggage & Housewares, Small Kitchen Appliances (Except Floor Care) Air Mattresses & Air Beds

Not yet covered under this plan

Return the product to local Sears store

more than 30 days after original purchase for home electronics and during the Term of this Plan

a Covered Product under this Plan.

call 1-800-573-1088 or go online to www.searspurchaseprotect.comto submit a claim under this Plan

more than 60 days after original purchase for; Lawn & Garden, Patio & Outdoor Living Items, Fitness, Outdoor & Sporting Goods, Water Treatment, Plumbing & Heating, Floor Care Items & Vacuums, Sewing Machines, Tools, Toys & Games, and Holiday & Seasonal Items

a Covered Product under this Plan.

call 1-800-573-1088 or go online to www.searspurchaseprotect.comto submit a claim under this Plan

more than 90 days of original purchase for; Beauty, Health & Personal Care, Luggage & Housewares, Small Kitchen Appliances (Except Floor Care) Air Mattresses & Air Beds

a Covered Product under this Plan.

call 1-800-573-1088 or go online to www.searspurchaseprotect.comto submit a claim under this Plan

5.  PLEASENOTE: Do not go to your Sears store to make a claim under your SearsPurchaseProtect plan. All PurchaseProtect claims should be made either by phoneor online. YOUR LOCAL SEARS STORE CANNOT ACCEPT OR PROCESS CLAIMS MADE UNDERYOUR PURCHASEPROTECT PLAN.

6.  COVERAGE. Subject to the termsand conditions of this Agreement, if during the Term of this Agreement (as thatterm is defined above) the Covered Product fails to operate properly due todefects in materials, workmanship, or normal wear and tear (including amalfunction resulting from a power surge if the power surge was not caused bylightning, fire, flooding or other act of nature), then at our sole discretionwe will either: (a) provide you a product reimbursement in the form of a Searsgift card in an amount equal to your original purchase price of the CoveredProduct (plus allocated sales tax allowance if applicable) for replacement ofthe product; or (b) provide you with a new or refurbished comparable productreplacement based solely on the current value of the Covered Product asdetermined by us (from a Sears or Sears-affiliated store). As a pre-conditionto your receiving the Sears gift card or comparable product replacementdescribed in the preceding sentence, we may require you to ship to us theCovered Product or a related Covered Product component at our expense using theshipping labels that we will provide to you and complete the shippingrequirements as instructed by us.

TECHNOLOGICAL ADVANCES ANDREPLACEMENT PRODUCT AVAILABILITY MAY RESULT IN A REPLACEMENT PRODUCT WITH ALOWER SELLING PRICE THAN THE ORIGINAL PRODUCT. IN ALL CASES, PRODUCTCOMPARABILITY FOR A REPLACMENT PRODUCT WILL BE DETERMINED BY US AT OUR SOLEDISCRETION. Youhave no obligation to perform preventive maintenance on the Covered Product.

THERE ARE CERTAINLIMITATIONS TO COVERAGE UNDER THIS AGREEMENT WHICH ARE SET FORTH IN SECTION 6BELOW AND IN CERTAIN SPECIAL STATE PROVISIONS WHICH ARE ALSO SET FORTH BELOWBEGINNING IN SECTION 10.

7.  LIMITATIONSOF COVERAGE. THISAGREEMENT DOES NOT COVER:

a.  Anyproduct operated outside of the United States, Puerto Rico, or Guam;

b.  Anyproduct used for any business or commercial purposes (A product is "usedfor business or commercial purposes" if it is used for any purpose otherthan single family household purposes);

c.Damageor other product failure due to causes beyond our control including, but notlimited to, repairs necessitated because of operator or owner negligence (suchas the failure to maintain the product according to the owner&rquo;s manualinstructions); improper installation, CRT-based or Plasma television burn-in,accidental damage, abuse, misuse, vandalism, theft, rust, corrosion, animal orinsect infestation, damage caused by lightning and acts of nature;

d.  Damageresulting from any alteration of the Covered Product or repairs made during theTerm which were not authorized by us, or are made by parties not specificallyauthorized by us;

e.  Non-functionalparts or defects, such as cosmetic defects, trim parts, etc.;

f.Preventivemaintenance;

g.  Expendableitems including, but not limited to, batteries (except for rechargeable), bulbs(except TV bulbs and lamps), blades, wheels, belts, tires, filters, food andbags; and

h.  Replacementor servicing of product due to any type of manufacturer&rquo;s recall.

8.  TRANSFERABILITY. This Agreement istransferable to any subsequent owner of the Covered Product subject to theterms and conditions of this Agreement.

9.  CANCELLATIONAND REFUNDS. Youmay cancel this Agreement at any time for any reason by bringing this Agreementtogether with your sales receipt to any Sears retail store in the UnitedStates. We may cancel this Agreement if you fail to pay, make a materialmisrepresentation, or substantially breach your duties under this Agreement. Wemay also cancel this Agreement if the Covered Product does not have a legiblemodel or serial number or is in a disassembled state. If this Agreement iscancelled within the Sears Store Return policy or prior to the expiration ofthe full manufacturer&rquo;s warranty for the Covered Product, excludingwarranties covering component parts of the Covered Product, we will refund thetotal price you paid for this Agreement. If this Agreement is cancelledthereafter during the Term of coverage, we will refund the Total Price allocableto the remainder of the term prorated on a monthly basis for the CoveredProduct that is specifically the subject of such cancellation. If there is morethan one product being covered under the terms and conditions of this Agreementand only one of the products is being cancelled from this Agreement, the TotalPrice shall mean the price paid for this Agreement that is allocated to suchproduct being cancelled. The Agreement shall remain in effect for any otherCovered Product(s) not the subject of such cancellation. Any refund will bemade in the same form as the original payment of this Agreement. UNDER NOCIRCUMSTANCES WHATSOEVER SHALL THE MONETARY RECOVERY EXCEED THE VALUE OF THETOTAL PRICE YOU PAID FOR THIS AGREEMENT.

10.  LIMITATIONOF LIABILITY. WEAND OUR AGENTS, CONTRACTORS OR LICENSEES ARE NOT LIABLE FOR ANY INCIDENTAL ORCONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE, LOSTTIME, LOSS OF USE OF COVERED PRODUCTOR ANY OTHER DAMAGES RESULTING FROM THEBREAKDOWN OR FAILURE OF COVERED PRODUCT, DELAYS IN SERVICING OR THE INABILITYTO SERVICE ANY COVERED PRODUCT EXCEPT AS MAY OTHERWISE BE REQUIRED BY LAW.UNDER NO CIRCUMSTANCES WHATSOEVER SHALL OUR OBLIGATIONS TO YOU UNDER THISAGREEMENT FOR MONETARY RECOVERY EXCEED THE VALUE OF THE TOTAL PRICE YOU PAIDFOR THIS AGREEMENT.

11.  CALIFORNIA,NEW MEXICO, WASHINGTON, WYOMING AND NEW YORK CUSTOMERS. A 10% penalty permonth shall be added to any refund that we fail to make within thirty (30) daysof your cancellation of this Agreement and request for a refund.

12.  UTAHCUSTOMERS. Coverageunder this Agreement is not guaranteed by the Property and Casualty GuarantyAssociation. In the event of cancellation of this Agreement by Obligor inaccordance with the "Cancellation and Refunds" provisions above, Utahresidents will receive thirty (30) day prior written notice of cancellation.There is no deductible applied for the performance of this Agreement.

13.  KENTUCKYAND VIRGINIA CUSTOMERS. If we fail to pay any valid claim within sixty (60)days of proof of loss, you may make a claim directly against Safeco InsuranceCompany of America, Safeco Plaza, Seattle, WA 98185.

14.  INDIANAAND WEST VIRGINIA CUSTOMERS. This Agreement is not an insurance policy and isnot regulated by the Departments of Insurance for the states of Indiana andWest Virginia.

15.  IOWACUSTOMERS. Obligoris subject to regulation by the insurance division of the Iowa Department ofCommerce. Complaints that are not settled by us may be sent to the insurancedivision.

16.  TEXASCUSTOMERS. Anyquestions concerning the regulation of us under this Agreement or anyunresolved complaints may be directed to the Texas Department of Licensing andRegulation P.O. Box 12157 Austin, Texas 78711 or (512) 463-6599.

17.  SOUTHCAROLINA CUSTOMERS. Anyquestions concerning the regulation of us under this Agreement or anyunresolved complaints (within sixty (60) days of proof of loss) may be directedto the South Carolina Department of Insurance  P.O. Box 100105 Columbia, South Carolina29202-3105 or (800)758-3467. A 10% penalty per month shall be added to anyrefund that we fail to make within forty-five (45) days after the return of theAgreement to the provider.

18.  NORTHCAROLINA CUSTOMERS. Uponcancellation a reasonable administrative fee not to exceed 10% of the pro ratarefund may be charged. Obligor must notify the consumer before the purchase ofthis Agreement that its purchase is not necessary in order to purchase orobtain financing of the covered product.

19.  ALABAMACUSTOMERS. A10% penalty per month shall be added to any refund that we fail to make withinforty-five (45) days of your cancellation of this Agreement and request for arefund. This Agreement will not charge a deductible for services rendered.

20.  GEORGIACUSTOMERS. Notwithstanding the CANCELLATION AND REFUND section, we will only cancel thisAgreement for fraud, material misrepresentation or nonpayment of amounts dueunder this Agreement. We will mail to you a written notice at least ten (10)days prior to the date of cancellation for nonpayment, or at least thirty (30)days prior to the date of cancellation for fraud or material misrepresentation.Obligor will not provide services under this Agreement if poor accessibility orunsafe working conditions exist, but these conditions are not grounds forcancellation. Nothing contained in any provision elsewhere in this Agreementshall affect your right to make a claim directly against Safeco InsuranceCompany of America if we fail to pay any valid claim within sixty (60) days.The claim should be sent to Safeco Insurance Company of America, Safeco Plaza,Seattle, WA 98185 or (847) 490-2320.

21.  MINNESOTACUSTOMERS. Inthe event of cancellation of this Agreement by us in accordance with the“Cancellation and Refunds” provision above, Minnesota residents will receivefive (5) days prior written notice of cancellation if for reason of nonpayment,material misrepresentation or substantial breach of duties, or at least fifteen(15) days for all other reasons. A 10% penalty per month shall be added to anyrefund that we fail to make within forty-five (45) days of your cancellation ofthis Agreement and request for a refund.

22.  NEWHAMPSHIRE CUSTOMERS. Inthe event that you do not receive satisfaction under this Agreement, you maycontact the New Hampshire Insurance Department, 21 South Fruit Street, Suite14, Concord, NH 03301; telephone 1-800-852-3416; e-mail consumerinquiries@ins.nh.gov.

23.  ARKANSASCUSTOMERS. Inthe event of cancellation of this Agreement by us in accordance with the“Cancellation and Refunds” provision above, Arkansas residents will receivefifteen (15) days prior written notice of cancellation for reasons other thanfor nonpayment, material misrepresentation or substantial breach of duties. A10% penalty per month shall be added to any refund that we fail to make withinforty-five (45) days of your cancellation of this Agreement and request for arefund.