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Contents Introduction...1 Supplier Requirements...1 Label Specifications...2 Standard Layout Specifications...3 UCC/EAN 128 Barcode Specifications...4 Electronic Data Interchange and the MH10...5 Barcodes Used on the...6 SSCC-18 Format...7 Variant MH10 Label Layout...8 Variant MH10 Label Layout for Short Height Cartons...8 Barcode and Label Software Solutions...9 Appendix A - Industry Documents and Agencies...10 Appendix B - Calculating the Mod 10 Check Digit...11

2003 Sears Canada Inc. All rights reserved Created/Revised May, 2003 Introduction - UCC/EAN-128 Barcodes and MH10 Labels Sears Canada requires suppliers to apply an MH10 shipping label on each shipping carton or hanging set for Catalogue (SMART), Retail Replenishment (RIM) and Retail Fashion Pick/Pack (SAMS FXD) merchandise. The requirement for Retail Fashion Bulk merchandise (SAMS FC) is one MH10 label per purchase order placed on the lead carton/hanging set. Sears relies on the serialized UCC/EAN-128 Shipping Container Code (SSCC-18) and other information on the MH10 labels for tracking and processing of merchandise throughout the distribution chain. Every label must adhere to standards outlined in this document for quality, appearance and scanability. In addition, the placement of the labels on cartons must be precise in order for merchandise to be processed quickly through automatic scanners. For further details regarding label placement requirements please see the Operational Requirements section of this guide for your particular ordering and distribution channel. Supplier Requirements A UPC/EAN Manufacturer Identification Number (MIN) is required in the SSCC-18 barcode. Suppliers can apply for a UPC MIN with the Electronic Commerce Council of Canada (ECCC). All suppliers are to obtain copies of the industry guideline documents regarding barcodes and labelling. Sears will indicate any necessary specifications beyond these standards. Suppliers must have a printer and label printing software set up according to the label specifications. Once the supplier s printer is set up and test labels are printed, suppliers are required to submit a minimum of three test labels for analysis. ScanRight is the third party service that Sears has partnered with for certification of labels Sears will not perform this certification. Suppliers are responsible for the cost of certification. Certification must be obtained before suppliers receive purchase orders. See the MH10 Label Certification document for details. Label Specifications Printing of the MH10 labels must adhere to the following standards in order to produce high quality labels: Label Stock 2003 Sears Canada Inc. All rights reserved 1 Created/Revised May, 2003

Dimensions: Sears Standard MH10 common extended label type is 4 x 6". Allowable Sears Variant label formats are shown on page 8 which are within MH10.8 standards. Substrate: Pressure sensitive labels, 20 lb. face stock, or sufficiently opaque to eliminate background show-through Adhesive: Adhesive sufficient for label to arrive intact and scannable Finish: Format: Image Colour Display White, matte surface, non-coated. Laminates and vinyls are not secure for conveyor or distance scanning. Varies by print method, e.g., thermal transfer vs. laser. Round corners help to prevent peel-off. Select toner or ribbons to obtain most durable barcode image. All requirements are for black imaging on white background. This applies to fixed imaging, barcode imaging and human readable data. Print Methods Allowable methods: Laser Thermal transfer Not allowed: Dot matrix Thermal direct Photocopy Hand-written labels French Translation for Sears MH10 Label Block Captions English French FROM DE TO A CARRIER TRANSPORTEUR MARK FOR MARQUE POUR SHIP TO EXPÉDIER À FOR UNIT POUR L UNITE SHIP CODE CODE D EXPÉDITION Suppliers are responsible for obtaining the correct French translation for applicable description information displayed in supplier data blocks, sub-blocks, captions and text. 2003 Sears Canada Inc. All rights reserved 2 Created/Revised May, 2003

Sears Standard Layout Specifications Label Size is 4"w X 6"h Font Specifications Block Captions Sans-serif font 8 pt / 8 LPB SUPPLIER NAME ADDRESS LINE 1 A SLH B Block Specifications ( W x H) Blocks A, C 2.2 " x 1.0 Text information: Sans-serif font Bold 11 pt / 6 LPB 23 Characters at standard widths C D Blocks B, D 1.8 " x 1.0 Store Number Graphics Sans-serif font Bold 36 pt / 1 LPB minimum height 0.5" Department / Promotion captions: Sans-serif font 18 pt / 5 LPB D = 2 Digit format P = MMDD format 91 F E G Block E 4.0 " x 1.0" AI 420 used for shipments within Canada AI 421 used for shipments from outside Canada Block F 2.2 " x 1.20" Block G 1.8 " x 1.20" H Block H 4.0 x 1.80" LPB - lines per block. Per ANSI MH10.8, approximate pt - points height measurements, approximate Font - standard sans serif font e.g. Universal, Arial For details on the barcodes used on the MH10, see page 6. UCC/EAN 128 Barcode Specifications 2003 Sears Canada Inc. All rights reserved 3 Created/Revised May, 2003

All barcodes on the MH10 label must follow Sears and industry standards and specifications for height, width, and other elements. Barcode print quality can only be verified using a measuring device called a verifier. It validates data characters, symbol characters, the barcode print quality and specification parameters. Information about these verification methods is available from ANSI, or the ECCC (Canada) and UCC (USA) as well as the verifier manufacturer or sales agent. Sears Barcode Specifications X Dimension (width of narrowest element) Barcode heights Human readable display ANSI Scan Reflectance Grade Print tolerances Quiet zones (white space) Minimum 0.02 For Sears variant label versions, X dimension for the AI 420/421 barcodes is 0.0148 AI 420, 421: 0.56 AI 91: 0.88 AI 00: 1.25 Bold, 14 point, sans-serif font - Universal, Arial, etc B/6/660; B/10/660 ANSI standard method uses ten scan paths for grading Maximum USS-128 element tolerance is 50% of the total allowable symbol tolerance 0.25" each zone Print Contrast Signal (PCS) Recommended Minimum: 85% Electronic Data Interchange (EDI) and the MH10 850 Purchase Order (PO) Ensuring accuracy of all MH10 labels is the responsibility of the supplier. Do not hard-code the variable information on the MH10 label; obtain the following information from the PO to encode the MH10 label. MH10 Element PO 850 EDI Segment Description Mark For N1*MA Ultimate receiving destination / store number. Sears transmits store number in format C001234 - only print the last 4 digits on the MH10, i.e. 1234. Ship To N1*ST Ship-to first point of receipt address P/: REF*PD Promotional code. Format MMDD D/: REF*DP Department. 2-digit numeric 2003 Sears Canada Inc. All rights reserved 4 Created/Revised May, 2003

856 Advanced Ship Notice (ASN) The supplier assigns a unique SSCC-18 number to each carton / hanging set, which cannot be repeated within one year, and encodes it on the MH10 in block H - see page 3. This number is transmitted in the supplier s ASN in the MAN segment, GM qualifier, to indicate the contents of that carton/hanging set. MH10 Element ASN 856 EDI Segment Description Ship Code SSCC-18 MAN*GM Unique carton/hanging set identification number. Barcodes Used on the MH10 The following UCC/EAN-128 barcodes are used in combination on the Sears MH10 label. A barcode contains both symbol information and Human Readable (HR) information. The symbol characters include Start character, FNC1 character, the MOD103 check character, and the Stop character. Typically, these are inserted automatically by the symbol generation software. The HR characters show the data elements of the barcode. The HR information shows the Application Identifier (AI) in parentheses followed by a space, then the other HR characters. The parentheses and spaces are not encoded in the barcode, they are only used to facilitate key entry. Examples AI 420 barcode Defines the destination postal code data for shipments within the same country. UCC-EAN-128 Barcode Encoded Information: Start/B FNC1 4 2 0 W 3 M 5 W 3 Mod103 Stop AI 421 barcode Defines the destination postal code data for shipments crossing a postal authority. It requires the International Standards Organization (ISO) 3166 numeric country code in the data string. The country code for Canada is 124. 2003 Sears Canada Inc. All rights reserved 5 Created/Revised May, 2003

(421) 124 M9W 3W5 Barcode Encoded Information: Start/C FNC1 4 2 1 1 2 4 CodeB M 9 W 3 W 5 Mod103 Stop AI 91 barcode Defines ultimate receiver destination information, for example the store number. Barcode Encoded Information: Start/C FNC1 9 1 1 0 2 4 Mod103 Stop Barcodes Used on the MH10 (Cont d) AI 00 barcode Also known as the SSCC-18. It is a unique number that identifies each carton/hanging set shipped to Sears. Note: The SSCC-18 must be unique and must not be repeated within one year. Mod10 Barcode Encoded Information: Start/C FNC1 0 0 0 0 0 5 2 1 7 7 5 1 3 8 9 5 7 1 7 2 Mod103 Stop SSCC-18 Number Format The format of the SSCC-18 number on the AI 00 barcode is as follows: (00) 0 0012345 555555555 8 2003 Sears Canada Inc. All rights reserved 6 Created/Revised May, 2003

Identifier Type MIN Serial Number Application Packaging Check Digit Application Identifier A prefix that defines the data type of the barcode number that follows. Packaging Type Shipping Container Type 0 = case, carton or hanging set. MIN Manufacturer Number. A unique number that identifies the manufacturer. See page 1. Shipping Container Serial Number For carton / hanging set identification. Not reusable for one year. Modulus 10 Check Digit Calculated from the other numbers in the code. See Appendix B. Sears Variant MH10 Label Layout For use only when supplier information is needed on label. Fonts as per the Standard MH10 layout. Label Size 4" X 6" (not shown to scale) Block Specifications (W x H) A B Block A & D 1.30" x 1.0" 23 Characters Block B & C 1.10" x 1.0" C RESERVED FOR SUPPLIER FREE FORM DATA 18 D E 2.70" x 1.0" Block E Block F 2.40 " x 1.20" Block G 1.60" x 1.20" F G 4.0" x 1.80" Block H H 2003 Sears Canada Inc. All rights reserved 7 Created/Revised May, 2003

Sears Variant MH10 Label Layout for Short Height Shipping Cartons For use only on shipping containers too short for the 4"x 6" label. Fonts as per the Standard MH10 layout. Label size 8 X 3 (not shown to scale) Block Specifications (W x H) A C F D Block A 1.40 " x 1.0" Block B & G 1.20 " x 1.0" E B H Block C 2.60 X 1.0 Block D 1.50 X 1.2 RESERVED FOR SUPPLIER FREE FORM DATA Barcode and Label Software Solutions G Block E 2.80 X 1.0 Block F 1.50 " x 1.2" Block H 3.0 " x 1.8" For suppliers who wish to purchase a drop-in solution for label printing software, the packages listed below contain a template for the Sears standard MH10 label. LabelView and Label Matrix manufactured by Teklynx International Canadian Office: 56 Leek Crescent Richmond Hill, Ontario Phone (414) 577-3900 Canada Fax (414) 577-3901 L4B 1H1 www.teklynx.com 2003 Sears Canada Inc. All rights reserved 8 Created/Revised May, 2003

Appendix A Industry Documents and Agencies American National Standard for Material Handling - Unit Loads and Transport Packages-Barcode Symbols ANSI MH10.8M (1993), ANSI Guideline For Barcode Print Quality X3.182 (1990) Contact: American National Standards Institute (ANSI) Electronic Commerce Council Of Canada (ECCC) 11 West 42nd St. (Formerly Product Code Council of Canada, PCCC) New York, New York 885 Don Mills Rd., Suite 301 USA 10036 North York, Ontario (212) 642-4900 www.ansi.org Canada M3C 1V9 (416) 510-8039 www.eccc.org "UCC/EAN-128 Application Identifier Standard" Application Standard For Shipping Container Codes (UCC, 1995) Contact: Electronic Commerce Council Of Canada (ECCC) Uniform Code Council (UCC) 885 Don Mills Rd., Suite 301 7887 Washington Village Dr., North York, Ontario Dayton, Ohio Canada M3C 1V9 USA 45459 1-800-567-7084 or (416) 510-8039 (937) 435-3870 www.eccc.org www.uc-council.org "USS-128 - Uniform Symbol Specification" Contact: Automatic Identification Manufacturers Inc. (AIM Inc.) 634 Alpha Drive Pittsburgh, Pennsylvania USA 15238 1-800-338-0206 or (412) 963-8588 www.aimusa.org 2003 Sears Canada Inc. All rights reserved 9 Created/Revised May, 2003

Appendix B Calculating the Modulus 10 (Mod10) Check Digit The Mod-10 check digit is the last number in the SSCC-128. Its value is calculated from the rest of the number. MOD-10 (00) 0 0012345 555555555 8 1 2 3 5 7 9 11 13 15 17 19 Check Digit Example To calculate the check digit, number each character position from left to right, starting with the first number as position 1. Step 1: Starting at position 1, add up all the values of the numbers in the odd numbered positions: 0+0+0+2+4+5+5+5+5+5 = 31 Step 2: Multiply the result of Step 1 by 3: Step 3: 31 x 3 = 93 Starting at position 2, add up the values of the numbers in the even numbered positions: 0+0+1+3+5+5+5+5+5 = 29 Step 4: Add up the results of Step 2 and Step 3: 93 + 29 = 122 Step 5: The check digit is the smallest number X which, when added to the value obtained in Step 4, provides a number that is a multiple of 10: 122 + X = 130 Therefore, X = 8 Mod10 Check digit = 8 2003 Sears Canada Inc. All rights reserved 10 Created/Revised May, 2003