NORDSTROM INC
EXHIBIT 10.38
<DOCUMENT>
<TYPE>EX-10.38
<SEQUENCE>8
<FILENAME>v39073exv10w38.htm
<DESCRIPTION>EXHIBIT 10.38
<TEXT>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.38
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NON-QUALIFIED STOCK OPTION AGREEMENT<BR>
(Price Vested Stock Option 1999)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A NON-QUALIFIED STOCK OPTION for the number of shares of Common Stock
(hereinafter the &#147;Option&#148;) as noted on your Notice of Grant of Stock Options (the &#147;Notice&#148;),
of Nordstrom, Inc., a Washington Corporation (the &#147;Company&#148;), is hereby granted on the date
set forth on your Notice to you (the &#147;Optionee&#148;) at the price determined as provided in, and
in all respects subject to, the terms, definitions and provisions of the 1997 Nordstrom
Stock Option Plan adopted by the Company, which is incorporated by reference herein and
subject to the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Option Price</U>. The option price, being one hundred percent (100%) of the fair
market value, as determined by the Committee, of the Common Stock on the date of grant of
this Option, as noted on your Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;<U>Vesting and Exercise of Option</U>. This Option shall vest and become
exercisable in accordance with the provisions of the Plan as follows:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Normal Vesting</U>. This Option shall vest and become
exercisable eight (8)&nbsp;years from the date of grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Accelerated Vesting</U>. During the period ending
five (5)&nbsp;years from the date of grant, this Option shall vest at the
Applicable Percentage, as set forth below, when the average closing price
of the Company&#146;s Common Stock, as reported in the Wall Street Journal,
over a 20 consecutive market day period exceeds the corresponding Stock
Price, as set forth below.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Applicable</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Stock</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Price</B></TD>
</TR>

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<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">20%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$55</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">35%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$67</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">45%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$80</TD>
</TR>
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</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Method of Exercise</U>. This Option shall be exercisable by a written notice
which shall:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) state the election to exercise the Option, the number of shares, the
total option price, name, address and social security number of the Optionee;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) be signed by the person entitled to exercise the Option; and<BR>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be in writing and delivered to the Retirement Administration Office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of the purchase price of any shares with respect to which an Option is
being exercised shall be by check, or may be by means of the surrender of shares of
Common Stock previously held by Optionee, having a fair market value at least equal
to the exercise price. The certificate or certificates or shares of Common Stock as to
which the Option shall be exercised shall be registered in the name of the person or
persons exercising the Option unless another person is specified. Options hereunder
may not at any time be exercised for a fractional number of shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise of this Option shall be in no event restricted by the fact that at
the time of exercise some portion of a previously granted incentive stock option
remains outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Restrictions on Exercise</U>. This Option may not be exercised if the
issuance of the shares
upon such exercise would constitute a violation of any applicable federal or state
securities or other law or valid regulation. As a condition to the exercise of this Option
the Company may require the person exercising the Option to make any representation and
warranty to the Company as the Company&#146;s counsel believes may be required by any applicable
law or regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">March 1999 &#150; Price Vested Option</div>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Separation of Employment</U>. Except as set forth below, this Option vests and may
only be exercised while the Optionee is an employee of the Company. If an Optionee&#146;s
employment ends, this Option shall continue to vest pursuant to the accelerated vesting
schedule set forth in subparagraph 2(b) above and the Optionee or his or her legal
representative shall have the right to exercise the Option after such separation as
follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Optionee dies, the persons to whom the Optionee&#146;s rights have passed by will or
the laws of descent and distribution may exercise such rights. Any such Option shall continue to
vest pursuant to the accelerated vesting schedule set forth in subparagraph 2(b) above and may be
exercised during the period ending four (4)&nbsp;years after the Optionee&#146;s death, but in no event
later than ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Optionee&#146;s employment ends due to his or her embezzlement or theft of Company
funds, defraudation of the Company, violation of Company rules, regulations or policies, or any
intentional act which harms the Company, such Option, to the extent not exercised as of the date
of separation, shall be terminated as of that date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the Optionee&#146;s employment ends due to his or her disability, as defined in Section
22(e)(3) of the Internal Revenue Code, this Option shall continue to vest pursuant to the
accelerated vesting schedule set forth in subparagraph 2(b) above and may be exercised during the
period ending four (4)&nbsp;years after separation, but in no event later than ten (10)&nbsp;years after
grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If the Optionee&#146;s employment ends due to his or her retirement upon attaining age 50 with
10&nbsp;years of service to the Company or age 60, this Option shall continue to vest pursuant to the
accelerated vesting schedule set forth in subparagraph 2(b) above and may be exercised during the
period ending four (4)&nbsp;years after retirement, but in no event later than ten (10)&nbsp;years after
grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Optionee&#146;s employment ends for any reason other than those set forth in
subparagraphs (a), (b), (c)&nbsp;and (d)&nbsp;above, the Optionee may exercise his or her Option, to the
extent exercisable as of the date of his or her separation, within one hundred (100)&nbsp;days after
separation, but in no event later than ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything above to the contrary, if during the term of this Option, Optionee
directly or indirectly, either as an employee, employer, consultant, agent, principal, partner,
shareholder, corporate officers, director or in any other capacity, engages or assists any third
party in engaging in any business competitive with the Company; divulges any confidential or
proprietary information of the Company to a third party who is not authorized by the Company to
receive the confidential or proprietary information; or uses any confidential or proprietary
information of the Company, then the post-separation vesting and exercise rights set forth above
shall immediately cease and all outstanding vested and unvested portions of this Option shall be
automatically forfeited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Normal vesting set forth in subparagraph 2(a) above shall occur only while the Optionee is an
employee of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;<U>Term of Option</U>. This Option may not be exercised more than ten (10)&nbsp;years from
the date of original grant of this option, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Adjustments Upon Changes in Capitalization</U>. As provided in the Plan, the
number and kind of shares of Company stock subject to this Option shall be appropriately
adjusted along with a corresponding adjustment in the Option price to reflect any stock
dividend, stock split, split-up or any combination or exchange of shares, however
accomplished.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;<U>Additional Option</U>. The Committee may or may not grant you additional stock
option in the future. Nothing in this grant of option or any future grant should be construed
as suggesting that additional option grants to you will be
forthcoming.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">March 1999 &#150; Price Vested Option</div>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NON-QUALIFIED STOCK OPTION AGREEMENT<BR>
(Time Vested Stock Option)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A NON-QUALIFIED STOCK OPTION for the number of shares of Common Stock (hereinafter the
&#147;Option&#148;) as noted on your Notice of Grant of Stock Options (the &#147;Notice&#148;), of Nordstrom, Inc., a
Washington Corporation (the &#147;Company&#148;), is hereby granted on the date set forth on your Notice to
you (the &#147;Optionee&#148;) at the price determined as provided in, and in all respects subject to, the
terms, definitions and provisions of the 1997 Nordstrom Stock Option Plan adopted by the Company,
which is incorporated by reference herein and subject to the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Option Price</U>. The option price, being one hundred percent (100%) of the fair
market value, as determined by the Committee, of the Common Stock on the date of grant of
this Option, as noted on your Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <U>Vesting and Exercise of Option</U>. This Option shall vest and be exercisable in
accordance with the provisions of the Plan as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Vesting</U>. This Option shall vest at the applicable percentage
during the corresponding year, as set forth below
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percent</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">

<TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Years</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Vested</B></TD>
</TR>

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<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">During year 1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">During year 2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">25</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">During year 3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">50</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">During year 4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">75</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">After year 4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
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</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Method of Exercise</U>. This Option shall be exercisable by a written
notice which shall:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) state the election to exercise the Option, the number of shares, the
total option price, name, address and social security number of the
Optionee;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) be signed by the person entitled to exercise the Option; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be in writing and delivered to the Retirement Administration Office.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of the purchase price of any shares with respect to which an Option is being
exercised shall be by check, or may be by means of the surrender of shares of Common Stock
previously held by Optionee, having a fair market value at least equal to the exercise
price. The certificate or certificates or shares of Common Stock as to which the Option
shall be exercised shall be registered in the name of the person or persons exercising the
Option unless another person is specified. Options hereunder may not at any time be
exercised for a fractional number of shares.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The exercise of this Option shall be in no event restricted by the fact that at the
time of exercise some portion of a previously granted incentive stock option remains
outstanding.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Restrictions on Exercise</U>. This Option may not be exercised if the
issuance of the shares upon such exercise would constitute a violation of any
applicable federal or state securities or other law or valid
regulation. As a
condition to the exercise of this Option the Company may require the person
exercising the Option to make any representation and warranty to the Company as the
Company&#146;s counsel believes may be required by any applicable law or regulation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">March 1999 &#150; Time Vested Option</div>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;<U>Termination of Employment</U>. Except as set forth below, this Option vests and
may only be exercised while the Optionee is an employee of the Company. If an Optionee&#146;s
employment is terminated, this Option shall continue to vest pursuant to the schedule set
forth in subparagraph 2(a) above and the Optionee or his or her legal representative shall
have the right to exercise the Option after such termination as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If the Optionee dies, the persons to whom the Optionee&#146;s rights have passed by will or
the laws of descent and distribution may exercise such rights. Any such Option shall continue to
vest and may be exercised during the period ending four (4)&nbsp;years after the Optionee&#146;s death, but
in no event later than ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Optionee&#146;s employment is terminated due to his or her embezzlement or theft of
Company funds, defraudation of the Company, violation of Company rules, regulations or policies, or
any intentional act which harms the Company, such Option, to the extent not exercised as of the
date of termination, shall be terminated as of that date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If the Optionee&#146;s employment is terminated due to his or her disability, as defined in
Section&nbsp;22(e)(3) of the Internal Revenue Code, this Option shall continue to vest and may be
exercised during the period ending four (4)&nbsp;years after termination, but in no event later than
ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If the Optionee&#146;s employment is terminated due to his or her retirement upon attaining
age 50 with 10&nbsp;years of service to the Company or age 60, this Option shall continue to vest and
may be exercised during the period ending four (4)&nbsp;years after termination, but in no event later
than ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;If the Optionee&#146;s employment is terminated for any reason other than those set forth in
subparagraphs (a), (b), (c)&nbsp;and (d)&nbsp;above, the Optionee may exercise his or her Option, to the
extent exercisable as of the date of his or her termination, within one hundred (100)&nbsp;days after
termination, but in no event later than ten (10)&nbsp;years after grant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything above to the contrary, if during the term of this Option, Optionee
directly or indirectly, either as an employee, employer, consultant, agent, principal, partner,
shareholder, corporate officers, director or in any other capacity, engages or assists any third
party in engaging in any business competitive with the Company; divulges any confidential or
proprietary information of the Company to a third party who is not authorized by the Company to
receive the confidential or proprietary information; or uses any confidential or proprietary
information of the Company, then the post-termination vesting and exercise rights set forth above
shall immediately cease and all outstanding vested and unvested portions of this Option shall be
automatically forfeited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
<U>Term of Option</U>. This Option may not be exercised more than ten (10)&nbsp;years from
the date of original grant of this option, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;<U>Adjustments Upon Changes in Capitalization</U>. As provided in the Plan, the number
and kind of shares of Company stock subject to this Option shall be appropriately adjusted
along with a corresponding adjustment in the Option price to reflect any stock dividend,
stock split, split-up or any combination or exchange of shares, however accomplished.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <U>Additional Option</U>. The Committee may or may not grant you additional stock
option in the future. Nothing in this grant of option or any future grant should be
construed as suggesting that additional option grants to you will be forthcoming.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">March 1999 &#150; Time Vested Option</div>
<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Nordstrom<BR>
Notice of Grant of Stock Options</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Employee Number:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Stock Options</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On
2/25/99, you were granted an option to buy shares of Nordstrom, Inc. Stock at $39.5625 per share
under the 1997 Stock Option Plan as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Time Vested Shares:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You were granted shares that vest on a four year 25% vesting schedule as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Vest Percent</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top"><DIV style="margin-left:15px; text-indent:-15px">2/25/00
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2/25/01
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">2/25/02
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">2/25/03
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Price Vested Shares:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">You were
granted shares that will vest on 2/25/07, unless vesting is accelerated. If the average
closing price of Nordstrom stock exceeds a specific price, as set forth below, for at least 20
consecutive market days before 2/25/04, vesting will be accelerated as follows:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Stock Price</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Vest Percent</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">$55
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">20%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">$67
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">35%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">$80
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">45%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Stock Units</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><B>Performance Stock Units:</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On 2/25/99, you were granted Nordstrom stock units that will vest on 2/25/02, based on the schedule
listed below. Vesting is based on the company&#146;s performance relative to the Large Retailer
Comparator Group as noted in the 1999 Long Term Incentive Stock Program, dated March&nbsp;1999.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reward Schedule:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Percentile</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Vest Percent</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&#060;=50
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&#062; 50
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">75%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&#062; 65
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">85%</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&#062; 75
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&#062; 85
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">125%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any shares that remain unvested at 2/25/02 will be forfeited. Any vested units may be paid in the
following ways: as cash, in the form of a Nordstrom Stock Certificate, or the stock units can be
deferred into your Executive Deferred Compensation Plan account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By your signature and the Company&#146;s signature below, you and the Company agree that these options
and stock units are granted under and governed by the terms and conditions of the Company&#146;s 1997
Stock Option Plan and Non-Qualified Stock Option Agreement. To the extent any term of this Notice is
inconsistent with the Plan or the Agreement, the Plan and the Agreement will control.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Nordstrom, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Employee Signature
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Nordstrom<BR>
Notice of Grant of Stock Options<BR>
and Option Agreement</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="left" valign="top"><B>&#060;NAME&#062;</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><B>Employee Number: &#060;#&#062;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center"><DIV style="font-size: 3pt; margin-top: 1pt; width: 100%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Stock Options</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On
8/12/99, you were granted an option to buy &#060;Number of Shares&#062; shares of Nordstrom, Inc.
Stock at $29.8125 per share under the 1997 Non-Qualified Stock Option Plan as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Time Vested Shares:</B><BR>
You were granted &#060;number of shares&#062; shares that vest on a four year 25% vesting schedule as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Date</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Vest Percent</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/12/00
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/12/01
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/12/02
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">8/12/03
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">25%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Price Vested Shares:</B><BR>
You were granted &#060;number of shares&#062;&nbsp;shares that will vest on 2/25/07, unless vesting in
accelerated. If the average closing price of Nordstrom stock exceeds a specific price, as set forth
below, for at least 20 consecutive market days before 2/25/04, vesting will be accelerated as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Stock Price</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Vest Percent</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$55
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">20%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$67
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">35%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$80
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">40%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Stock Units</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Performance Stock Units:</B><BR>
On 8/12/99, you were granted &#060;number of units&#062; Nordstrom stock units that will vest on
1/31/02, based on the schedule listed below. Vesting is based on the company&#146;s performance relative
to the Large Retail Comparator Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Reward Schedule:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Percentile</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B><U>Vest Percent</U></B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#060;= 50
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">0%
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#062; 50
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">75%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#062; 65
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">85%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#062; 75
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">100%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&#062; 85
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">125%</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any shares that remain unvested at 1/31/02 will be forfeited. Any vested units may be paid in the
following ways: as cash, in the form of a Nordstrom Stock Certificate, or the stock units can be
deferred into your Executive Deferred Compensation Plan account.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; font-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">By your signature and the Company&#146;s signature below, you and the Company agree that these options
and stock units are granted under and governed by the terms and conditions of the Company&#146;s 1997
Non-Qualified Stock Option and the Option Agreement.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="line-height: 18pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Nordstrom, Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="line-height: 24pt"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Employee Signature
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Date
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
