Document:

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                                                                   EXHIBIT 10.23

                               GUARANTY AGREEMENT

        THIS GUARANTY AGREEMENT dated as of February 29, 2000 (the "Guaranty")
is given by NORDSTROM, INC., a Washington corporation (the "Guarantor"), in
favor of BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the
"Administrative Agent") and the Lenders party to the Credit Agreement described
below.

                               W I T N E S S E T H

        WHEREAS, 1700 Seventh L.P., a Washington limited partnership (the
"Borrower"), the Lenders and the Administrative Agent have entered into that
certain Credit Agreement dated as of the date hereof (as amended, modified,
restated or supplemented from time to time, the "Credit Agreement"); and

        WHEREAS, this Guaranty is a condition precedent to the effectiveness of
the Credit Agreement and the obligations of the Lenders to make loans and
extensions of credit to the Borrower under the Credit Agreement.

        NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Guarantor hereby agrees as follows:

                                    SECTION 1
                                   DEFINITIONS

        1.1    CERTAIN DEFINITIONS.

        Unless otherwise defined herein, capitalized terms used herein
(including those in the preamble and recitals) shall have the meanings ascribed
to such terms in the Credit Agreement.

               "Affiliate" means, with respect to any Person, any other Person
        that, directly or indirectly through one or more intermediaries,
        controls, or is controlled by, or is under common control with, such
        first Person. The term "control" means the possession, directly or
        indirectly, of the power, whether or not exercised, to direct or cause
        the direction of the management or policies of a Person, whether through
        the ownership of Capital Stock by contract or otherwise, and the terms
        "controlled" and "common control" have correlative meanings. Unless
        otherwise indicated, "Affiliate" refers to an Affiliate of the
        Guarantor. Notwithstanding the foregoing, in no event shall any Lender
        or any Affiliate of a Lender be deemed to be an Affiliate of the
        Guarantor. For avoidance of doubt, the parties agree that the Borrower
        is not an Affiliate of the Guarantor.

               "Applicable Law" means all applicable provisions of all (i)
        constitutions, treaties, statutes, laws, rules, regulations and
        ordinances of any Governmental Authority, (ii)

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        Governmental Approvals and (iii) orders, decisions, judgments, awards
        and decrees of any Governmental Authority.

               "Capital Stock" means, with respect to any Person, all (i)
        shares, interests, participations or other equivalents (howsoever
        designated) of capital stock and other equity interests of such Person
        and (ii) rights (other than debt securities convertible into capital
        stock or other equity interests), warrants or options to acquire any
        such capital stock or other equity interests.

               "Capitalized Leases" means, as to any Person, all leases of such
        Person of real or personal property that are required to be capitalized
        on the balance sheet of such Persons. The amount of any Capitalized
        Lease shall be the capitalized amount thereof.

               "Change of Control" means any Person or two or more Persons
        acting in concert (other than the Controlling Stockholders) shall have
        acquired beneficial ownership (within the meaning of Rule 13d-3 of the
        Securities and Exchange Commission under the Securities Act of 1934),
        directly or indirectly, of Voting Stock of the Guarantor (or other
        Securities convertible into such Voting Stock) representing 40% or more
        of the combined voting power of all Voting Stock of the Guarantor.

               "Closing Date" means  the date hereof.

               "Contingent Obligation" means, as to any Person, any obligation,
        direct or indirect, contingent or otherwise, of such Person (i) with
        respect to any Debt or other obligation of another Person, including any
        direct or indirect guarantee of such Debt (other than any endorsement
        for collection in the ordinary course of business) or any other direct
        or indirect obligation, by agreement or otherwise, to purchase or
        repurchase any such Debt or obligation or any security therefor, or to
        provide funds for the payment or discharge of any such Debt or
        obligation (whether in the form of loans, advances, stock purchases,
        capital contributions or otherwise), (ii) to provide funds to maintain
        the financial condition of any other Person, or (iii) otherwise to
        assure or hold harmless the holders of Debt or other obligations of
        another Person against loss in respect thereof. The amount of any
        Contingent Obligation under clause (i) or (ii) shall be the greater of
        (a) the amount of the Debt or obligation guaranteed or otherwise
        supported thereby, or (b) the maximum amount guarantied or supported by
        the Contingent Obligation. The term "Contingent Obligation," as used
        with respect to the Guarantor, shall not include (i) the obligations of
        the Guarantor under any obligation which the Guarantor does or may have
        to sell to, repurchase from or indemnify the purchaser with respect to
        accounts discounted or sold by the Guarantor in the ordinary course of
        its business (but any such other obligation shall be excluded only to
        the extent that such other obligation is not for the benefit, directly
        or indirectly, of any Person that is not a wholly owned Subsidiary
        (direct or indirect) of the Guarantor) or (ii) any obligation which a
        Subsidiary does or may have to sell to, repurchase from or indemnify the
        purchaser with respect to accounts discounted or sold by the Subsidiary
        in the ordinary course of its business (but any such other obligation
        shall be excluded only to the extent that such obligation is not for the
        benefit,

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        directly or indirectly, of any Person that is not a wholly owned
        Subsidiary (direct or indirect) of the Guarantor); or (iii) supply,
        service or licensing agreements between or among Nordstrom.com, LLC, a
        Delaware limited liability company, and its successors on the one hand,
        and the Guarantor and its other Subsidiaries, on the other hand, so long
        as such agreements are fair and reasonable to the Guarantor and such
        other Subsidiaries under the circumstances.

               "Contractual Obligation" means, as applied to any Person, any
        provision of any security issued by that Person or any indenture,
        agreement or other instrument to which that Person is a party or by
        which it or any of the properties owned or leased by it is bound or
        otherwise subject.

               "Controlled Group" means all members of a controlled group of
        corporations and all trades or businesses (irrespective of whether
        incorporated) that, together with the Guarantor or any Subsidiary, are
        or were treated as a single employer under Section 414 of the Code.

               "Controlling Stockholders" means the individuals listed on
        Schedule 1 hereto and the spouse and lineal descendents of any such
        individual.

               "Debt" means, with respect to any Person, the aggregate amount
        of, without duplication: (i) all obligations for borrowed money; (ii)
        all obligations evidenced by bonds, debentures, notes or other similar
        instruments; (iii) all obligations to pay the deferred purchase price of
        property or services, except trade accounts payable not overdue arising
        in the ordinary course of business; (iv) all Capitalized Leases; (v) all
        obligations of others secured by a Lien on any asset owned by such
        Person or Persons whether or not such obligation or liability is
        assumed; (vi) all obligations of such Person or Persons, contingent or
        otherwise, in respect of any letters of credit or bankers' acceptances;
        and (vii) all Contingent Obligations.

               "Default" means any event, act or condition which with notice or
        lapse of time, or both, would constitute an Event of Default.

               "EBITDAR" means, for any period, net income (or net loss) plus,
        to the extent deducted in determining such net income (or net loss), the
        sum of (a) interest expense, (b) income tax expense, (c) depreciation
        expense, (d) amortization expense and (e) rent expense, in each case
        determined in accordance with GAAP for such period.

               "ERISA" means the Employee Retirement Income Security Act of
        1974, as amended from time to rime.

               "ERISA Event" means (i) (a) the occurrence of a reportable event,
        within the meaning of Section 4043 of ERISA with respect to any Plan
        unless the 30-day notice requirement with respect to such event has been
        waived by the PBGC (provided that a reportable event arising from the
        disqualification of a Plan or the distress termination of a

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        Plan under ERISA Section 4041(c) shall be deemed to be an ERISA Event
        without regard to the waiver of notice provided by the PBGC by
        regulation or otherwise), or (b) the requirements of subsection (1) of
        Section 4043(b) of ERISA (without regard to subsection (2) of such
        Section) are met with respect to a contributing sponsor, as defined in
        Section 4001(a)(13) of ERISA, of a Plan, and an event described in
        paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is
        reasonably expected to occur with respect to such Plan within the
        following 30 days; (ii) an application is filed with the Internal
        Revenue Service for a minimum funding waiver under Section 412 of the
        Internal Revenue Code with respect to a Plan; (iii) the provision by the
        administrator of any Plan of a notice of intent to terminate such Plan
        pursuant to Section 4041(a)(2) of ERISA (including any such notice with
        respect to a plan amendment referred to in Section 4041(e) of ERISA);
        (iv) the cessation of operations at a facility of the Guarantor or any
        member of the Controlled Group in the circumstances described in Section
        4062(e) of ERISA; (v) the withdrawal by the Guarantor or any member of
        the Controlled Group from a Multiple Employer Plan during a plan year
        for which it was a substantial employer, as defined in Section
        4001(a)(2) of ERISA; (vi) the conditions for the imposition of a lien
        under Section 302(f) of ERISA shall have been met with respect to any
        Plan; (vii) the adoption of an amendment to a Plan requiring the
        provision of security to such Plan pursuant to Section 307 of ERISA; or
        (viii) the institution by the PBGC of proceedings to terminate a Plan
        pursuant to Section 4042 of ERISA, or the occurrence of any event or
        condition described in Section 4042 of ERISA that constitutes grounds
        for the termination of, or the appointment of a trustee to administer, a
        Plan.

               "Existing Liens" means the Liens described on Schedule 5.1.1.

               "Fiscal Year" means the fiscal year of the Guarantor, which shall
        be the 12 month-period ending on January 31 in each year or such other
        period as the Guarantor may designate and the Agent may approve in
        writing. "Fiscal Quarter" or "fiscal quarter" means any quarter of a
        Fiscal Year.

               "GAAP" means generally accepted accounting principles in the
        United States applied on a consistent basis and subject to the terms of
        Section 1.3.

               "Governmental Approval" means an authorization, consent,
        approval, permit or license issued by, or a registration or filing with,
        any Governmental Authority.

               "Governmental Authority" means any Federal, state, local or
        foreign court or governmental agency, authority, instrumentality or
        regulatory body.

               "Guaranteed Obligations" means, without duplication, (i) all of
        the obligations of the Borrower to the Lenders, the Administrative Agent
        and the Project Administrative Agent, whenever arising, under the Credit
        Agreement, the Notes, the Environmental Indemnity Agreement, the
        Collateral Documents or any of the other Credit Documents (including,
        but not limited to, any interest accruing after the occurrence of a
        Bankruptcy Event with respect to any Credit Party, regardless of whether
        such interest is an allowed

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        claim under the Bankruptcy Code) and (ii) all liabilities and
        obligations, whenever arising, owing from the Borrower to any Lender, or
        any Affiliate of a Lender, arising under any Hedging Agreement.

               "Investment Agreement" means the Investment Agreement, dated as
        of October 8, 1994, between the Guarantor and Nordstrom Credit, as
        amended from time to time.

               "Lien" means any lien, mortgage, pledge, security interest,
        charge, or encumbrance of any kind (including any conditional sale or
        other title retention agreement or any lease in the nature thereof) and
        any agreement to give any lien, mortgage, pledge, security interest,
        charge, or other encumbrance of any kind.

               "Margin Regulations" means Regulations T, U and X of the Federal
        Reserve Board, as amended from time to time.

               "Margin Stock" means "margin stock" as defined in the Margin
        Regulations.

               "Material Adverse Effect" or "Material Adverse Change" means (i)
        a material adverse effect on or (ii) a material adverse change in, as
        the case may be, any one or more of the following: (A) the business,
        assets, results of operations or financial condition of the Guarantor
        and its Subsidiaries taken as a whole or (B) the ability of the
        Guarantor to perform its obligations under any Credit Document to which
        it is a party or (C) the actual material rights and remedies of any
        Lender under any Credit Document.

               "Multiemployer Plan" means a multiemployer plan, as defined in
        Section 4001(a)(3) of ERISA.

               "Nordstrom Credit" means Nordstrom Credit, Inc., a Colorado
        corporation, and any successor.

               "Nordstrom.com Loan Agreement" means that certain loan agreement
        to be entered into between the Guarantor and Nordstrom.com, LLC, as
        amended or modified from time to time.

               "Permitted Liens" means, with respect to any asset, the Liens (if
        any) permitted to exist on such asset under Section 5.1.

               "Person" means any individual, partnership, joint venture, firm,
        corporation, limited liability company, association, trust or other
        enterprise (whether or not incorporated) or any Governmental Authority.

               "Plan" means, at any time, any employee pension benefit plan that
        is covered by Title IV of ERISA or subject to the minimum funding
        standards under Section 412 of the Code and that is either (i)
        maintained by the Guarantor or any member of a Controlled Group for
        employees of the Guarantor or such Controlled Group or was formerly so

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        maintained and in respect of which the Guarantor or any member of the
        Controlled Group could have liability under Section 4069 of ERISA in the
        event such plan has been or were to be terminated or (ii) maintained for
        employees of the Guarantor or any member of the Controlled Group and at
        least one Person other than the Guarantor and the members of the
        Controlled Group or was formerly so maintained and in respect of which
        the Guarantor or any member of the Controlled Group could have liability
        under Section 4064 or 4069 of ERISA in the event such plan has been or
        were to be terminated.

               "Restricted Payment" means (i) any dividend or other
        distribution, direct or indirect, on account of any Capital Stock of the
        Guarantor or any Subsidiary, now or hereafter outstanding except (a) a
        dividend or other distribution payable solely in shares or equivalents
        of Capital Stock of the same class as the Capital Stock on account of
        which the dividend or distribution is being paid or made and (b) the
        issuance of equity interests upon the exercise of outstanding warrants,
        options or other rights, or (ii) any redemption, retirement, sinking
        fund or similar payment, purchase or other acquisition for value, direct
        or indirect, of any Capital Stock of the Guarantor or any Subsidiary,
        now or hereafter outstanding.

               "Subsidiary" means, with respect to any Person, any other Person
        of which more than 50% of the total voting power of the Capital Stock
        entitled to vote in the election of the board of directors (or other
        Persons performing similar functions) are at the time directly or
        indirectly owned by such first Person. Unless otherwise indicated,
        "Subsidiary" refers to a Subsidiary of the Guarantor.

               "Taxes" means any present or future income, stamp and other
        taxes, charges, fees, levies, duties, imposts, withholdings or other
        assessments, together with any interest and penalties, additions to tax
        and additional amounts imposed by any federal, state, local or foreign
        taxing authority upon any Person.

               "Voting Stock" means capital stock issued by a corporation, or
        equivalent interests in any other Person, the holders of which are
        ordinarily, in the absence of contingencies. entitled to vote for the
        election of directors (or persons performing similar functions) of such
        Person, even though the right to so vote has been suspended by the
        happening of such a contingency.

               "Wholly-Owned" means, with respect to any Subsidiary, that all
        the Capital Stock (except for directors' qualifying shares) of such
        Subsidiary are directly or indirectly owned by the Guarantor.

        1.2    COMPUTATION OF TIME PERIODS.

        For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding."

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        1.3    ACCOUNTING TERMS.

        Except as otherwise expressly provided herein, all accounting terms used
herein shall be interpreted, and all financial statements and certificates and
reports as to financial matters required to be delivered to the Administrative
Agent or the Lenders hereunder shall be prepared, in accordance with GAAP
applied on a consistent basis. All calculations made for the purposes of
determining compliance with this Guaranty shall (except for changes concurred in
by the relevant independent public accountants) be made by application of GAAP
applied on a basis consistent with the audited financial statements of the
Guarantor referred to in Section 3.1.

                                    SECTION 2
                                    GUARANTY

        2.1    THE GUARANTY.

        The Guarantor hereby guarantees to each Lender, each Affiliate of a
Lender that enters into a Hedging Agreement, and the Administrative Agent as
hereafter provided, as primary obligor and not as surety, the prompt payment of
the Guaranteed Obligations in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) strictly in accordance with the terms thereof. The Guarantor hereby
further agrees that if any of the Guaranteed Obligations are not paid in full
when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise), the Guarantor
will promptly pay the same, without any demand or notice whatsoever (except for
any such notice required by the Credit Agreement), and that in the case of any
extension of time of payment or renewal of any of the Guaranteed Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

        Notwithstanding any provision to the contrary contained herein or in any
other of the Credit Documents or Hedging Agreements, the obligations of the
Guarantor hereunder and the other Credit Documents shall be limited to an
aggregate amount equal to the largest amount that would not render such
obligations subject to avoidance under Section 548 of the Bankruptcy Code or any
comparable provisions of any applicable state law.

        2.2    OBLIGATIONS UNCONDITIONAL.

        The obligations of the Guarantor under Section 2.1 are absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Credit Documents or Hedging Agreements, or any
other agreement or instrument referred to therein, or any substitution,
compromise, release, impairment or exchange of any other guarantee of or
security for any of the Guaranteed Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section 2.2 that the

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obligations of the Guarantor hereunder shall be absolute and unconditional under
any and all circumstances. The Guarantor agrees that it shall have no right of
subrogation, indemnity, reimbursement or contribution against the Borrower or
any other guarantor for amounts paid under this Section 2 until such time as the
Lenders (and any Affiliates of Lenders entering into Hedging Agreements) have
been paid in full, all Commitments under the Credit Agreement have been
terminated and no Person or Governmental Authority shall have any right to
request any return or reimbursement of funds from the Lenders in connection with
monies received under the Credit Documents or Hedging Agreements. Without
limiting the generality of the foregoing, it is agreed that, to the fullest
extent permitted by law, the occurrence of any one or more of the following
shall not alter or impair the liability of the Guarantor hereunder which shall
remain absolute and unconditional as described above:

               (a) at any time or from time to time, without notice to the
        Guarantor, the time for any performance of or compliance with any of the
        Guaranteed Obligations shall be extended, or such performance or
        compliance shall be waived;

               (b) any of the acts mentioned in any of the provisions of any of
        the Credit Documents or Hedging Agreements or any other agreement or
        instrument referred to in the Credit Documents or Hedging Agreements
        shall be done or omitted;

               (c) (i) the maturity of any of the Guaranteed Obligations shall
        be accelerated, or (ii) any of the Guaranteed Obligations shall be
        modified, supplemented or amended in any respect with the consent of the
        Guarantor, or (iii) any right under any of the Credit Documents or
        Hedging Agreements or any other agreement or instrument referred to in
        the Credit Documents or Hedging Agreements shall be waived, or (iv) any
        other guarantee of any of the Guaranteed Obligations or any security
        therefor shall be released, impaired or exchanged in whole or in part or
        otherwise dealt with;

               (d) any Lien granted to, or in favor of, the Administrative Agent
        or any Lender or Lenders as security for any of the Guaranteed
        Obligations shall fail to attach or be perfected; or

               (e) any of the Guaranteed Obligations shall be determined to be
        void or voidable (including, without limitation, for the benefit of any
        creditor of the Guarantor) or shall be subordinated to the claims of any
        Person (including, without limitation, any creditor of the Guarantor).

With respect to its obligations hereunder, the Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest, notice of acceptance of this
Guaranty and of extensions of credit which may constitute Guaranteed
Obligations, notice of amendments, waivers or supplements to the Credit
Documents (except for any such notice required by the Credit Agreement) or
Hedging Agreements or the compromise, release or exchange of collateral or
security and all other notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed
against any Person under any of the Credit Documents or Hedging Agreements or
any other agreement or instrument referred to in the Credit

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Documents or against any other Person under any other guarantee of, or security
for, any of the Guaranteed Obligations.

        2.3    REINSTATEMENT.

        Neither the Guarantor's obligations hereunder nor any remedy for the
enforcement thereof shall be impaired, modified, changed or released in any
manner whatsoever by an impairment, modification, change, release or limitation
of the liability of the Borrower, by reason of the Borrower's bankruptcy or
insolvency or by reason of the invalidity or unenforceability of all or any
portion of the Guaranteed Obligations. The obligations of the Guarantor under
this Guaranty shall be automatically reinstated if and to the extent that for
any reason any payment by or on behalf of any Person in respect of the
Guaranteed Obligations is rescinded or must be otherwise restored by any holder
of any of the Guaranteed Obligations, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, and the Guarantor agrees that it will
indemnify the Administrative Agent and each Lender on demand for all reasonable
costs and expenses (including, without limitation, reasonable fees and expenses
of counsel) incurred by the Administrative Agent or such Lender in connection
with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy,
insolvency or similar law.

        2.4    CERTAIN ADDITIONAL WAIVERS.

        The Guarantor agrees that this Guaranty may be enforced by the
Administrative Agent and the Lenders without the necessity of resorting to or
exhausting any other security or collateral and without the necessity at any
time of having recourse to the Borrower under the Credit Agreement, any Hedging
Agreement or any collateral securing the Guaranteed Obligations or otherwise,
and the Guarantor agrees not to assert any right to require the Administrative
Agent and the Lenders to proceed against the Borrower or any other Person
(including any co-guarantor) or to require the Administrative Agent and the
Lenders to pursue any other remedy or enforce any other right. The Guarantor
further acknowledges and agrees that nothing contained in this Guaranty shall
prevent the Administrative Agent or the Lenders from suing the Borrower in
respect of its obligations under the Credit Agreement, any Hedging Agreement and
the other Credit Documents or foreclosing on any security interest or lien on
any collateral securing the Guaranteed Obligations or from exercising any other
rights available to the Administrative Agent and the Lenders under the Credit
Documents or Hedging Agreements if neither the Borrower nor the Guarantor timely
perform their obligations, and the exercise of any of such rights and completion
of any such foreclosure proceedings shall not constitute a discharge of any of
the Guarantor's obligations hereunder unless as a result thereof the Guaranteed
Obligations shall have been paid in full and all of the Commitments shall have
terminated or expired, it being the purpose and intent that the Guarantor's
obligations hereunder be absolute, irrevocable, independent and unconditional
under all circumstances.

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        2.5    REMEDIES.

        The Guarantor agrees that, to the fullest extent permitted by law, as
between the Guarantor, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Guaranteed Obligations may be declared to be
forthwith due and payable as provided in Section 8.2 of the Credit Agreement
(and shall be deemed to have become automatically due and payable in the
circumstances provided in said Section 8.2 of the Credit Agreement) for purposes
of Section 2.1 notwithstanding any stay, injunction or other prohibition
preventing such declaration (or preventing such Guaranteed Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or such Guaranteed Obligations being deemed to
have become automatically due and payable), such Guaranteed Obligations (whether
or not due and payable by any other Person) shall forthwith become due and
payable by the Guarantor for purposes of Section 2.1.

        2.6    FURTHER REPRESENTATIONS AND WARRANTIES.

        The Guarantor agrees that the Administrative Agent and the Lenders will
have no obligation to investigate the financial condition or affairs of the
Borrower for the benefit of the Guarantor nor to advise the Guarantor of any
fact respecting, or any change in, the financial condition or affairs of the
Borrower which might come to the knowledge of the Administrative Agent or any
Lender at any time, whether or not the Administrative Agent or any Lender knows
or believes or has reason to know or believe that any such fact or change is
unknown to the Guarantor or might (or does) materially increase the risk of the
Guarantor as Guarantor or might (or would) affect the willingness of the
Guarantor to continue as a guarantor with respect to the Guaranteed Obligations.

        2.7    ADDITIONAL LIABILITY OF GUARANTOR.

        If the Guarantor is or becomes liable for any indebtedness owing by the
Guarantor to the Administrative Agent or any Lender by endorsement or otherwise
other than under this Guaranty, such liability shall not be in any manner
impaired or reduced hereby but shall have all and the same force and effect it
would have had if this Guaranty had not existed and the Guarantor's liability
hereunder shall not be in any manner impaired or reduced thereby.

        2.8    GUARANTEE OF PAYMENT; CONTINUING GUARANTEE.

        The guaranty in this Section 2 is a guaranty of payment and not of
collection, is a continuing guaranty, and shall apply to all Guaranteed
Obligations whenever owing.

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                                    SECTION 3
                         REPRESENTATIONS AND WARRANTIES

        The Guarantor hereby represents and warrants to the Administrative Agent
and each Lender that:

        3.1    FINANCIAL INFORMATION.

               (a) The balance sheets of the Guarantor as of January 31, 1999
        and the statements of earnings, stockholder's equity and cash flow of
        the Guarantor for the Fiscal year then ended, certified by the
        Guarantor's independent certified public accountants, which are included
        in the Guarantor's Annual Report on Form 10-K for the Fiscal Year ended
        January 31, 1999, were prepared in accordance with GAAP consistently
        applied and fairly present the financial position of the Guarantor, as
        of the respective dates thereof and the results of operations and cash
        flow of the Guarantor for the periods then ended. The Guarantor on such
        dates had no Contingent Obligations, liabilities for taxes or long-term
        leases, forward or long-term commitments or unrealized losses from any
        unfavorable commitments that are not reflected in the foregoing
        statements or in the notes thereto and that, individually or in the
        aggregate, are material.

               (b) The unaudited balance sheet of the Guarantor as of October
        31, 1999 and the related statements of earnings, stockholder's equity
        and cash flow for the periods then ended, certified by the chief
        financial officer of the Guarantor, which are included in the Borrower's
        Quarterly Report on Form 10-Q for the Fiscal Quarter ended October 31,
        1999, were prepared in accordance with GAAP consistently applied (except
        to the extent noted therein) and fairly present the financial position
        of the Guarantor as of such date and the results of operations and cash
        flow for the periods covered thereby, subject to normal year-end audit
        adjustments. The Guarantor on such date had no Contingent Obligations,
        liabilities for taxes or long-term leases, forward or long-term
        commitments or unrealized losses from any unfavorable commitments that
        are not reflected in the foregoing statements or in the notes thereto
        and that, individually or in the aggregate, are material.

        3.2    NO MATERIAL CHANGE.

        Since January 31, 1997, there has been no Material Adverse Change.

        3.3    ORGANIZATION AND GOOD STANDING.

        Each of the Guarantor and, except as would not reasonably be expected to
have a Material Adverse Effect, its Subsidiaries (a) is duly organized, validly
existing and is in good standing under the laws of the jurisdiction of its
incorporation or organization and (b) has the corporate or other necessary power
and authority, and the legal right, to own and operate its property, to carry on
its business as heretofore conducted, to enter into this Guaranty and to carry
out the transactions contemplated thereby. Except as would not reasonably be
expected to have a Material Adverse Effect, each of the Guarantor and the
Subsidiaries possesses all Governmental Approvals, in full

                                       11
<PAGE>   12

force and effect, free from burdensome restrictions, that are necessary for the
ownership, maintenance and operation of its properties and conduct of its
business as now conducted, and is not in violation thereof. Each of the
Guarantor and the Subsidiaries is duly qualified and in good standing authorized
to do business in each state or other jurisdiction where the nature of its
business activities conducted or properties owned or leased requires it to be so
qualified and where any failure to be so qualified, individually or in the
aggregate, could have a Material Adverse Effect.

        3.4    POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS.

               3.4.1 Authorization, Binding Effect, Etc. The execution, delivery
        and performance by the Guarantor of this Guaranty has been duly
        authorized by all necessary corporate action on the part of the
        Guarantor; and this Guaranty has been duly executed and delivered by the
        Guarantor and is the legal, valid and binding obligation of the
        Guarantor, enforceable against it in accordance with its terms, except
        as enforcement may be limited by equitable principles and by bankruptcy,
        insolvency, reorganization, moratorium or similar laws relating to
        creditors' rights generally.

               3.4.2 No Conflict. The execution, delivery and performance by the
        Guarantor of this Guaranty, and the consummation of the transactions
        contemplated thereby, do not and will not (a) violate any provision of
        the charter or other organizational documents of the Guarantor, (b)
        except for consents that have been obtained and are in full force and
        effect, conflict with, result in a breach of, or constitute (or, with
        the giving of notice or lapse of time or both, would constitute) a
        default under, or require the approval or consent of any Person pursuant
        to any Contractual Obligation of the Guarantor, (c) violate any
        Applicable Law binding on the Guarantor, or (d) result in or require the
        creation or imposition of any Lien on any assets or properties of the
        Guarantor or any of its Subsidiaries.

               3.4.3 Governmental Approvals. No Governmental Approval is or will
        be required in connection with the execution, delivery and performance
        by the Guarantor of this Guaranty or the transactions contemplated
        thereby.

        3.5    LITIGATION.

        Except as disclosed on Schedule 3.5, there are no actions, suits or
proceedings pending or, to the best knowledge of the Guarantor, threatened
against or affecting the Guarantor, any Subsidiary or any of its properties
before any Governmental Authority (a) in which there is a reasonable possibility
of an adverse determination that could result in a material liability or have a
Material Adverse Effect or (b) that in any manner draws into question the
validity, legality or enforceability of any Credit Document or any transaction
contemplated thereby.

                                       12
<PAGE>   13

        3.6    TAXES.

        All United States Federal income tax returns and all other material tax
returns required to be filed by the Guarantor or any Subsidiary have been filed
and all Taxes due pursuant to such returns have been paid, except such Taxes, if
any, as are being contested in good faith and as to which adequate reserves have
been established in accordance with GAAP. To the best knowledge of the
Guarantor, there has not been asserted or proposed to be asserted any Tax
deficiency against the Guarantor or any Subsidiary that would be material to the
Guarantor and its Subsidiaries taken as a whole and that is not reserved against
on the financial books of the Guarantor.

        3.7    COMPLIANCE WITH LAW.

        Neither the Guarantor nor any Subsidiary is in violation of any
Applicable Law, or in default under its charter documents, bylaws or any of its
Contractual Obligations except for such violations or defaults as do not result
in a Material Adverse Effect.

        3.8    ERISA.

               (a) The Guarantor and all members of the Controlled Group have
        fulfilled their obligations under the minimum funding standards of ERISA
        with respect to each Plan to which they are party and have not incurred
        any liability to the PBGC in connection with any Plan established or
        maintained by the Guarantor or any member of the Controlled Group.

               (b) No ERISA Event has occurred and is continuing with respect to
        any Plan (whether or not terminated). Neither Guarantor nor any member
        of the Controlled Group is required to make or accrue a contribution or
        has within any of the preceding five plan years made or accrued an
        obligation to make contributions to any Multiemployer Plan. The fair
        market value of the assets of each Plan is at least equal to the present
        value of the "benefit liabilities" (within the meaning of Section
        4001(a)(16) of ERISA) under such Plan determined using the actuarial
        assumptions and method used by the actuary to such Plan in its valuation
        of such Plan.

        3.9    GOVERNMENTAL REGULATIONS, ETC.

        The Guarantor is neither an "investment company" registered or required
to be registered under the Investment Company Act of 1940, as amended, or a
company controlled by such a company, nor subject to any Federal or state,
statute or regulation limiting its ability to incur Debt for money borrowed
(other than the Margin Regulations).

        3.10   MARGIN RELATIONS.

        Neither the Guarantor nor any Subsidiary is engaged principally, or as
one of its important activities, in the business of extending credit for the
purposes of purchasing or carrying

                                       13
<PAGE>   14

Margin Stock. The value of all Margin Stock held by the Guarantor and the
Subsidiaries constitutes less than 25% of the value, as determined in accordance
with the Margin Regulations, of all assets of the Guarantor.

        3.11   SOLVENCY.

        The Guarantor is, after consummation of the transactions contemplated by
the Credit Agreement and this Guaranty, individually and together with its
Subsidiaries, Solvent.

        3.12   DISCLOSURE.

        All information in any document, certificate or written statement
furnished to the Lenders by or on behalf of the Guarantor with respect to the
business, assets, prospects, results of operation or financial condition of the
Guarantor or any Subsidiary for use in connection with the transactions
contemplated by this Agreement has been true and correct in all material
respects. There is no fact known to the Guarantor (other than matters of a
general economic nature) that has had or could reasonably be expected to have a
Material Adverse Effect and that has not been disclosed herein or in such other
documents, certificates or statements.

        3.13   YEAR 2000 COMPLIANCE.

        The Guarantor has (i) completed a review and assessment of all areas
within its and each of its Subsidiaries' business and operations that could be
adversely affected by the "Year 2000 Problem" (that is, the risk that computer
applications used by the Guarantor or any of its Subsidiaries may be unable to
recognize and perform properly date-sensitive functions involving certain dates
prior to and any date after December 31, 1999), (ii) developed a plan and
timeline for addressing the Year 2000 Problem on a timely basis, and (iii)
substantially completed implementation of that plan in accordance with the
timetable. The Year 2000 Problem has not resulted in, and the Guarantor
reasonably believes that the Year 2000 Problem will not result in, a Material
Adverse Effect.

                                    SECTION 4
                              AFFIRMATIVE COVENANTS

        The Guarantor hereby covenants and agrees that, so long as the Credit
Agreement is in effect or any amounts payable thereunder or under any other
Credit Document shall remain outstanding, and until all of the Commitments
thereunder shall have terminated:

        4.1    INFORMATION COVENANTS.

        The Guarantor will furnish to the Administrative Agent, for the benefit
of the Lenders:

               (a) Annual Financial Statements. As soon as available, and in any
        event within 120 days after the close of each Fiscal Year, the
        consolidated balance sheet of the

                                       14
<PAGE>   15

        Guarantor and its consolidated Subsidiaries as of the end of such year
        and the related statements of earnings, stockholder's equity and cash
        flow of the Guarantor for such Fiscal Year, setting forth in each case
        in comparative form the figures for the previous Fiscal Year, all in
        reasonable detail and, accompanied by an unqualified report thereon of
        Deloitte & Touche LLP or other independent certified public accountants
        of recognized national standing selected by the Guarantor and reasonably
        satisfactory to the Required Lenders, which report shall state that such
        financial statements fairly present the financial position of the
        Guarantor as of the date indicated and its results of operations and
        cash flows for the periods indicated in conformity with GAAP (except as
        otherwise stated therein) and that the examination by such accountants
        in connection with such financial statements has been made in accordance
        with generally accepted auditing standards;

               (b) Quarterly Financial Statements. As soon as available, and in
        any event within 60 days after the close of each Fiscal Quarter (other
        than the last Fiscal Quarter of any Fiscal Year, in which case 120 days
        after the end thereof) a consolidated balance sheet of the Guarantor and
        its consolidated Subsidiaries as of the end of such quarter and the
        related statements of earnings, stockholder's equity and cash flow for
        such quarter and the portion of the Fiscal Year ended at the end of such
        quarter, setting forth in each case in comparative form the figures for
        the corresponding periods of the prior Fiscal Year, all in reasonable
        detail and certified by the Guarantor's chief financial officer as
        fairly presenting the financial condition of the Guarantor as of the
        dates indicated and its results of operations and cash flows for the
        periods indicated, subject to normal year-end adjustments;

               (c) Officer's Certificate. At the time of delivery of the
        financial statements provided for in Section 4.1(a) and 4.1(b) above, a
        certificate of an chief financial officer or president of the Guarantor,
        (i) demonstrating compliance with the financial covenants contained in
        Section 4.10 by calculation thereof as of the end of each such fiscal
        period and (ii) stating that no Default or Event of Default exists, or
        if any Default or Event of Default does exist, specifying the nature and
        extent thereof and what action the Guarantor proposes to take with
        respect thereto.

               (d) Reports. Promptly upon their becoming available, copies of
        all material reports, notices and proxy statements sent or made
        available by the Guarantor to its security holders, and all material
        registration statements (other than the exhibits thereto) and annual,
        quarterly or monthly reports, if any, filed by the Guarantor with the
        United States Securities and Exchange Commission.

               (e) Notices. Within five Business Days after the Guarantor
        obtains knowledge thereof, the Guarantor will give written notice to the
        Administrative Agent of (i) the occurrence of an event or condition
        consisting of a Default or Event of Default, specifying the nature and
        existence thereof and what action the Guarantor proposes to take with
        respect thereto, (ii) the occurrence of any of the following with
        respect to the Guarantor or any of its Subsidiaries (A) the pendency or
        commencement of any litigation, arbitral or governmental proceeding
        against such Person which if adversely determined is likely to have a
        Material

                                       15
<PAGE>   16

        Adverse Effect, or (B) an ERISA Event, together with a statement setting
        forth the details thereof and the action that the Guarantor is taking or
        proposes to take with respect thereto, together with a copy of the
        notice, if any, of such event given or required to be given to the PBGC;
        within five days of the date the Guarantor or any member of the
        Controlled Group becomes obliged to make or accrue a contribution to a
        Multiemployer Plan, a statement of the Guarantor setting forth the
        details thereof and the action that the Guarantor is taking or proposes
        to take with respect thereto.

               (f) Other Information. With reasonable promptness upon any such
        request, such other information regarding the business, properties or
        financial condition of the Guarantor and its Subsidiaries as the
        Administrative Agent or any Lender (through the Administrative Agent)
        may reasonably request.

        4.2    PRESERVATION OF EXISTENCE AND FRANCHISES.

        The Guarantor will, and will (except as otherwise permitted under
Section 5.3) cause each of its Subsidiaries to, at all times preserve and keep
in full force and effect its corporate existence and all rights and franchises
material to the Guarantor and its Subsidiaries taken as a whole.

        4.3    BOOKS AND RECORDS.

        The Guarantor shall, and shall cause each Subsidiary to, maintain
adequate books, records and accounts as may be required or necessary to permit
the preparation of financial statements required to be delivered hereunder in
accordance with sound business practices and GAAP. The Guarantor shall, and
shall cause each Subsidiary to, permit such Persons as the Administrative Agent
may designate, at reasonable times during the Guarantor's regular office hours
as often as may reasonably be requested and under reasonable circumstances, to
(a) visit and inspect any of its properties, (b) inspect and copy its books and
records, and (c) discuss with its officers and its independent accountants, its
business, assets, liabilities, results of operation or financial condition.

        4.4    CONDUCT OF BUSINESS; COMPLIANCE WITH LAW.

        The Guarantor shall not change the general character of its business as
conducted at the Closing Date or engage, directly or through a Subsidiary, in
any type of business not reasonably related to its business as normally
conducted. The Guarantor shall maintain its right to carry on business in any
jurisdiction where it is doing business at such time and remain in and
continuously operate the same lines of business presently engaged in except for
periodic shutdown in the ordinary course of business and interruptions caused by
strike, labor dispute, catastrophe or any other events over which it has no
control. The Guarantor shall, and shall cause each of its Subsidiaries to,
conduct its business in compliance in all material respects with all Applicable
Law and all its Contractual Obligation except where failure to do so does not
result in a Material Adverse Effect.

                                       16
<PAGE>   17

        4.5    PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

        The Guarantor shall, and shall cause each Subsidiary to, pay and
discharge (a) all Taxes imposed upon it or any of its properties or in respect
of any of its franchises, business, income or property before any material
penalty shall be incurred with respect to such Taxes, and (b) all claims of any
kind (including claims for labor, material and supplies) that, if unpaid, might
by Applicable Law become a Lien upon any material portion of the property of the
Guarantor and its Subsidiaries; provided, however, that, unless and until
foreclosure, distraint, levy, sale or similar proceedings shall have commenced,
the Guarantor need not pay or discharge any such Tax or claim so long as the
validity or amount thereof is being contested in good faith and by appropriate
proceedings and so long as any reserves or other appropriate provisions as may
be required by GAAP shall have been made therefor.

        4.6    INSURANCE.

        The Guarantor shall, and shall cause each Subsidiary to, maintain with
financially sound and reputable insurance companies insurance (or adequate self
insurance) in at least such amounts, of such character and against at least such
risks as is usually maintained by companies of established repute engaged in the
same or a similar business in the same general area.

        4.7    MAINTENANCE OF PROPERTY.

        The Guarantor shall, and shall cause each Subsidiary to, maintain or
cause to be maintained in good repair, working order and condition (ordinary
wear and tear excepted), all properties and other assets useful or necessary to
its business, and from time to time the Guarantor shall make or cause to be made
all appropriate repairs, renewals and replacements thereto except, in each case,
to the extent the failure to do so could not reasonably be expected to have a
Material Adverse Effect. The Guarantor shall, and shall cause each of its
Subsidiaries to, use reasonable efforts to prevent offsets of and defenses to
its receivables and other rights to payment.

        4.8    FURTHER ASSURANCES.

        At any time and from time to time, upon the request of the
Administrative Agent, the Guarantor shall execute and deliver such further
documents and do such other acts and things as the Administrative Agent may
reasonably request in order to effect fully the purposes of this Guaranty and
any other agreement contemplated hereby and to provide for payment and
performance of the Guaranteed Obligations in accordance with the terms of the
Credit Documents.

        4.9    FUTURE INFORMATION.

        All data, certificates, reports, statements, documents and other
information the Guarantor shall furnish to the Lenders in connection with the
Credit Documents shall, at the time the information is furnished, not contain
any untrue statement of a material fact shall be complete

                                       17
<PAGE>   18

and correct in all material respects to the extent necessary to give the Lenders
sufficient and accurate knowledge of the subject matter thereof, and shall not
omit to state a material fact necessary in order to make the statements
contained therein not misleading in light of the circumstances under which such
information is furnished.

        4.10   FINANCIAL COVENANTS.

               (a) Consolidated Net Worth. The consolidated Net Worth of the
        Guarantor and its Subsidiaries shall, as of the last day of any Fiscal
        Quarter, be not less than $750,000,000.

               (b) Coverage Ratio. As of the last day of any period of four
        consecutive Fiscal Quarters, the Guarantor shall maintain the ratio of
        EBITDAR for such period to the sum of interest expense (including
        capitalized interest) and rent expense for such period greater than or
        equal to 2.0 to 1.0.

        4.11   YEAR 2000 COMPLIANCE.

        The Guarantor will promptly notify the Administrative Agent in the event
it discovers or determines that the Year 2000 Problem has resulted in, or is
reasonably expected to result in, a Material Adverse Effect.

                                    SECTION 5
                               NEGATIVE COVENANTS

        The Guarantor hereby covenants and agrees that, so long as the Credit
Agreement is in effect or any amounts payable thereunder or under any other
Credit Document shall remain outstanding, and until all of the Commitments
hereunder shall have terminated:

        5.1    LIENS.

        The Guarantor shall not, and shall not permit any Subsidiary to,
directly or indirectly, create, incur, assume or permit to exist any Lien on or
with respect to any asset of the Guarantor or any Subsidiary, whether now owned
or hereafter acquired, except:

            5.1.1. Liens securing the Obligations (as defined in the Nordstrom
Credit Agreement) and Existing Liens;

            5.1.2. (a) Liens for Taxes, assessments or charges of any
Governmental Authority for claims that are not material and are not yet due or
are being contested in good faith by appropriate proceedings and with respect to
which adequate reserves or other appropriate provisions are being maintained in
accordance with GAAP; (b) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, materialmen, bankers and other Liens imposed by law and
created in the ordinary course of business for amounts that are not material and
are not yet due or being contested in good faith by appropriate proceedings and
with respect to which

                                       18
<PAGE>   19

adequate reserves or other appropriate provisions are being maintained in
accordance with GAAP; (c) Liens incurred and deposits made in the ordinary
course of business in connection with workers' compensation, unemployment
insurance and other types of social security benefits or to secure the
performance (including by way of surety bonds or appeal bonds) of tenders, bids,
leases, contracts, statutory obligations or similar obligations or arising as a
result of progress payments under contracts, in each case in the ordinary course
of business and not relating to the repayment of Debt; (d) easements,
rights-of-way, covenants, consents, reservations, encroachments, variations and
other restrictions, charges or encumbrances (whether or not recorded) that do
not materially interfere with the ordinary conduct of the Guarantor's business;
(e) building restrictions, zoning laws and other statutes, laws, rules,
regulations, ordinances and restrictions; and (f) leases, subleases or easements
granted in the ordinary course of business to others not materially interfering
with the business of, and consistent with past practices of, the Guarantor;

            5.1.3. any attachment or judgment Lien, not otherwise constituting
an Event of Default, in existence less than 30 days after the entry thereof or
with respect to which (a) execution has been stayed, (b) payment is covered in
full by insurance, or (c) the Guarantor is in good faith prosecuting an appeal
or other appropriate proceedings for review and has set aside on its books such
reserves as may be required by GAAP with respect to such judgment or award;

            5.1.4. Liens securing Debt of the Guarantor or any Subsidiary,
including Capitalized Leases, used to finance the acquisition of fixed assets of
the Guarantor or such Subsidiary, the construction of additional buildings or
the expansion otherwise of their respective facilities, provided that such Debt
(a) does not exceed the cost to the Guarantor or such Subsidiary of the assets
acquired with the proceeds of such Debt, (b) in the case of new construction or
expansion of existing facilities, is either a construction or permanent loan
secured by the facilities constructed and the real property on which such
facilities are located, and (c) in the case of other asset financing, is
incurred within twelve months following the date of the acquisition, provided
that any such Lien does not encumber any property other than the assets acquired
with the proceeds of such Debt;

            5.1.5. Liens existing on assets of any Person at the time such
assets are acquired, provided such Lien does not encumber any assets other than
the assets subject to such Lien at the time such assets are acquired;

            5.1.6. Liens arising from the securitization of receivables, to the
extent the Debt arising from such securitization is permitted hereunder;

            5.1.7. any Lien constituting a renewal, extension or replacement of
any Existing Lien or any Lien permitted by Section 5.1.4 or 5.1.5., provided
such Lien is limited to all or a part of the property subject to the Lien
extended, renewed or replaced;

            5.1.8. Liens on any or all of the assets of Nordstrom.com, LLC
securing Debt owing by Nordstrom.com, LLC under the Nordstrom.com Loan
Agreement; and

                                       19
<PAGE>   20

            5.1.9. other Liens incidental to the conduct of the business or the
ownership of the assets of the Guarantor or any Subsidiary that (a) were not
incurred in connection with borrowed money, (b) do not in the aggregate
materially detract from the value of the assets subject thereto or materially
impair the use thereof in the operation of such business and (c) do not secure
obligations aggregating in excess of $10,000,000.

        5.2    RESTRICTED PAYMENTS.

        The Guarantor shall not, and shall not permit any Subsidiary to,
declare, pay or make, or agree to declare, pay or make, any Restricted Payment,
except (a) dividends, distributions or payments by any Subsidiary to the
Guarantor, or (b) if no Default or Event of Default then exists or would result
therefrom (assuming for this purpose that compliance with Section 4.10, is being
measured as of the end of the immediately preceding Fiscal Quarter giving pro
forma effect to the Restricted Payment).

        5.3    RESTRICTION ON FUNDAMENTAL CHANGES

        The Guarantor shall not, and shall not permit any Subsidiary to, enter
into any merger, consolidation, reorganization or recapitalization, liquidate,
wind up or dissolve or sell, lease, transfer or otherwise dispose of, in one
transaction or a series of transactions, all or substantially all of its or
their business or assets, whether now owned or hereafter acquired, provided that
as long as no Default or Event of Default shall exist after giving effect
thereto (a) any Solvent Subsidiary or other Solvent Person (other than the
Guarantor) may be merged or consolidated with or into the Guarantor (so long as
the Guarantor is the surviving entity) or any Subsidiary, (b) any Subsidiary may
be liquidated, wound up or dissolved, and (c) in addition to transactions
permitted under Section 5.4 (which permitted transactions shall not be
restricted by this Section 5.3), all or substantially all of any Subsidiary's
business or assets may be sold, leased, transferred or otherwise disposed of, in
one transaction or a series of transactions, to the Guarantor or another
Subsidiary.

        5.4    ASSET DISPOSITIONS

        The Guarantor shall not, and shall not (except as permitted by Section
5.3(c)) permit any Subsidiary to, sell, lease or otherwise dispose of during any
Fiscal Year property or other assets (other than sales of inventory in the
ordinary course of business) constituting, in the aggregate, 10% or more of the
Guarantor's and its Subsidiaries' assets, taken as a whole, in terms of book
value. Notwithstanding the foregoing limitation, the Guarantor and its
Subsidiaries shall be permitted to sell their receivables in a transaction to
securitize such receivables.

        5.5    TRANSACTIONS WITH AFFILIATES

The Guarantor shall not, and shall not permit any Subsidiary to, directly or
indirectly, enter into any transaction (including the purchase, sale, lease, or
exchange of any property or the

                                       20
<PAGE>   21

rendering of any service) with any Affiliate of the Guarantor, unless (a) such
transaction is not otherwise prohibited by this Guaranty, (b) such transaction
is in the ordinary course of business and (c) if such transaction is other than
with a Wholly-Owned Subsidiary, such transaction is on fair and reasonable terms
no less favorable to the Guarantor or its Subsidiary, as the case may be, than
those terms which might be obtained at the time in a comparable arm's length
transaction with a Person who is not an Affiliate or, if such transaction is not
one which by its nature could be obtained from such other Person, is on fair and
reasonable terms and was negotiated in good faith, provided that this Section
shall not restrict (i) dividends, distributions and other payments and transfers
on account of any shares of Capital Stock of the Guarantor or any Subsidiary
otherwise permissible hereunder, (ii) transactions pursuant to (x) the
Investment Agreement and (y) any agreement between the Guarantor and any
Affiliate of the Guarantor pursuant to which the Guarantor sells or discounts
accounts receivable in the ordinary course of its business (including agreements
under which the Guarantor has an obligation to repurchase from or indemnify the
purchaser with respect to accounts discounted or sold by the Guarantor) and
(iii) supply, service or licensing agreements between or among Nordstrom.com,
LLC, a Delaware limited liability company, and its successors on the one hand,
and the Guarantor and its other Subsidiaries, on the other hand, so long as such
agreements are fair and reasonable to the Guarantor and such other Subsidiaries
under the circumstances.

                                    SECTION 6
                                EVENTS OF DEFAULT

        6.1    EVENTS OF DEFAULT.

        An Event of Default shall exist upon the occurrence of any of the
following specified events (each an "Event of Default"):

               (a) Guaranty. The guaranty given by the Guarantor hereunder shall
        cease to be in full force and effect, or the Guarantor or any Person
        acting by or on behalf of the Guarantor shall deny or disaffirm the
        Guarantor's obligations under this Guaranty; or

               (b) Representations. Any representation, warranty or
        certification made or furnished by the Guarantor herein or in any of the
        other Credit Documents shall prove to have been false or incorrect in
        any material respect when made (or deemed made); or

               (c) Covenants. The Guarantor shall

                   (i) default in the due performance or observance of any term,
               covenant or agreement contained in Sections 4.1(e)(i) or 4.2
               (insofar as it requires the preservation of the corporate
               existence of the Guarantor) or 5.1 through 5.5, inclusive;

                   (ii) default in the due performance or observance by it of
               any term, covenant or agreement (other than those referred to in
               subsections (a), (b) or (c)(i) of

                                       21
<PAGE>   22

this           Section 6.1) contained in this Guaranty and such default shall
               continue unremedied for a period of at least 30 days after
               written notice thereof by the Administrative Agent to the
               Guarantor; or

               (d) Other Credit Documents. (i) The Guarantor shall default in
        the due performance or observance of any term, covenant or agreement in
        this Guaranty (subject to applicable grace or cure periods, if any), or
        (ii) any Credit Document shall fail to be in full force and effect or to
        give the Administrative Agent and/or the Lenders the Liens, rights,
        powers and privileges purported to be created thereby, or the Guarantor
        shall so state in writing; or

               (e) Bankruptcy, etc.

                   (i) There shall be commenced against the Guarantor or any of
               its Subsidiaries, an involuntary case seeking the liquidation or
               reorganization of the Guarantor or any of its Subsidiaries under
               Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code or
               any similar proceeding under any other Applicable Law or an
               involuntary case or proceeding seeking the appointment of a
               receiver, liquidator, sequestrator, custodian, trustee or other
               officer having similar powers of the Guarantor or any of its
               Subsidiaries or to take possession of all or a substantial
               portion of its property or to operate all or a substantial
               portion of its business, and any of the following events occur:
               (a) the Guarantor or any of its Subsidiaries consents to the
               institution of the involuntary case or proceeding; (b) the
               petition commencing the involuntary case or proceeding is not
               timely controverted; (c) the petition commencing the involuntary
               case or proceeding remains undismissed and unstayed for a period
               of 60 days; or (d) an order for relief shall have been issued or
               entered therein; or

                   (ii) The Guarantor or any of its Subsidiaries shall institute
               a voluntary case seeking liquidation or reorganization under
               Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code or
               any similar proceeding under any other Applicable Law, or shall
               consent thereto; or shall consent to the conversion of an
               involuntary case to a voluntary case; or shall file a petition,
               answer a complaint or otherwise institute any proceeding seeking,
               or shall consent to or acquiesce in the appointment of, a
               receiver, liquidator, sequestrator, custodian, trustee or other
               officer with similar powers of it or to take possession of all or
               a substantial portion of its property or to operate all or a
               substantial portion of its business; or shall make a general
               assignment for the benefit of creditors; or shall generally not
               pay its debts as they become due; or the Board of Directors of
               the Guarantor or any of its Subsidiaries (or any committee
               thereof) adopts any resolution or otherwise authorizes action to
               approve any of the foregoing; or

                                       22
<PAGE>   23

               (f) Defaults under Other Agreements.

                   (i) The occurrence of an "Event of Default" under the Credit
               Agreement;

                   (ii) (a) The Guarantor or any Subsidiary shall default in the
               payment (whether at stated maturity, upon acceleration, upon
               required prepayment or otherwise), beyond any period of grace
               provided therefor, of any principal of or interest on any other
               Debt with a principal amount (individually or in the aggregate)
               in excess of $10,000,000, or (b) any other breach or default (or
               other event or condition), beyond any period of grace provided
               therefor, shall occur under any agreement, indenture or
               instrument relating to any such other Debt with a principal
               amount (individually or in the aggregate) in excess of
               $10,000,000, if the effect of such breach or default (or such
               other event or condition) is to cause, or to permit the holder or
               holders of the other Debt (or a Person on behalf of such holder
               or holders) to cause (upon the giving of notice or otherwise),
               such other Debt to become or be declared due and payable, or
               required to be prepaid, redeemed, purchased or defeased (or an
               offer of prepayment, redemption, purchase or defeasance be made),
               prior to its stated maturity (other than by a scheduled mandatory
               prepayment); provided, however, that if any such breach or
               default described in this Section 6.1(f)(ii) is cured or waived
               prior to any action being taken pursuant to Section 6.2, the
               Event of Default under this Guaranty in respect of such breach or
               default shall be deemed cured to the extent of such cure or
               waiver; or

               (g) Judgments. The Guarantor or any Subsidiary shall suffer any
        money judgments, writs or warrants of attachment or similar processes
        that, individually or in the aggregate, involve an amount or value in
        excess of $10,000,000 and such judgments, writs, warrants or other
        orders shall continue unsatisfied and unstayed for a period of 60 days;
        or

               (h) ERISA. The Guarantor or any member of the Controlled Group
        shall fail to pay when due any material amount or amounts that it shall
        have become liable to pay to the PBGC or to a Plan under Title IV of
        ERISA; or a proceeding shall be instituted by a fiduciary of any such
        Plan or Plans against the Guarantor or any member of the Controlled
        Group to enforce Section 515 of ERISA; or any ERISA Event shall occur
        which could reasonably be expected to have a Material Adverse Effect; or
        the Guarantor or any member of the Controlled Group shall partially or
        completely withdraw from any Multiemployer Plan; or any Multiemployer
        Plan to which Guarantor or any member of its Controlled Group becomes
        obliged to make or accrue a contribution is placed in reorganization or
        terminates; or

               (i) Ownership. There shall occur a Change of Control.

                                       23
<PAGE>   24

        6.2    REMEDIES.

        Upon the occurrence of an Event of Default, and at any time thereafter
unless and until such Event of Default has been waived by the requisite Lenders
(pursuant to the voting requirements of Section 10.6 of the Credit Agreement) or
cured to the satisfaction of the requisite Lenders (pursuant to the voting
procedures in Section 10.6 of the Credit Agreement), the Administrative Agent
may, or shall, upon the request and direction of the Required Lenders, by
written notice to the Credit Parties, enforce any and all rights and interests
created and existing under the Credit Documents including, without limitation,
all rights and remedies existing under the Collateral Documents (including,
without limitation, this Guaranty), all rights and remedies against the
Guarantor and all rights of set-off.

                                    SECTION 7
                                  MISCELLANEOUS

        7.1    CUMULATIVE RIGHTS.

        All rights of the Administrative Agent and the Lenders hereunder or
otherwise arising under any documents executed in connection with or as security
for the Guaranteed Obligations are separate and cumulative and may be pursued
separately, successively or concurrently, or not pursued, without affecting or
limiting any other right of the Administrative Agent or any Lender and without
affecting or impairing the liability of the Guarantor.

        7.2    USURY.

        Notwithstanding any other provisions herein contained, no provision of
this Guaranty shall require or permit the collection from the Guarantor of
interest in excess of the maximum rate or amount that the Guarantor may be
required or permitted to pay pursuant to any applicable law. In the event any
such interest is collected, it shall be applied in reduction of the Guarantor's
obligations hereunder, and the remainder of such excess collected shall be
returned to the Guarantor once such obligations have been fully satisfied.

        7.3    EXPENSES; INDEMNIFICATION.

               (a) The Guarantor agrees that the Guaranteed Obligations include
        any obligation of the Borrower to pay all costs and expenses of the
        Administrative Agent in connection with the syndication, preparation,
        execution, delivery, administration, modification, and amendment of the
        Credit Agreement, the other Credit Documents (including, without
        limitation, this Guaranty), and the other documents to be delivered
        thereunder, including, without limitation, the reasonable fees and
        expenses of counsel for the Administrative Agent with respect hereto and
        thereto and with respect to advising the Administrative Agent as to its
        rights and responsibilities under the Credit Documents. The Guarantor
        further agrees that the Guaranteed Obligations include any obligation of
        the Borrower to pay all costs and expenses of the Administrative Agent
        and the Lenders,

                                       24
<PAGE>   25

        if any (including, without limitation, reasonable attorneys' fees and
        expenses), in connection with the enforcement (whether through
        negotiations, legal proceedings, or otherwise) of the Credit Documents
        (including, without limitation, this Guaranty) and the other documents
        to be delivered pursuant thereto. In the event the Administrative Agent
        and/or the Lenders seek enforcement of this Section 7.3(a) against the
        Guarantor, such costs and expenses shall be payable on demand.

               (b) The Guarantor agrees to indemnify, defend and hold harmless
        the Administrative Agent and each Lender and each of their Affiliates
        and the officers, directors, employees, agents, attorneys, affiliates,
        successors and assigns of the Administrative Agent, each Lender and
        their Affiliates (collectively, the "Indemnitees") from and against (i)
        any and all transfer taxes, documentary taxes, assessments or charges
        made by any Governmental Authority by reason of the execution and
        delivery of the Credit Documents or the making of the Loans (provided
        that any Lender claiming any additional amounts payable pursuant to this
        Section 7.3(b)(i) shall use reasonable efforts (consistent with its
        internal policy and legal and regulatory restrictions) to change the
        jurisdiction of its Applicable Lending Office if the making of such a
        change would avoid the need for, or reduce the amount of, any such
        additional amounts that may thereafter accrue and would not, in the
        reasonable judgment of such Lender, be otherwise disadvantageous to such
        Lender), and (ii) any and all liabilities, losses, damages, penalties,
        judgments, claims, costs and expenses of any kind or nature whatsoever
        (including reasonable attorneys' fees, including allocated costs of
        in-house counsel, and disbursements in connection with any actual or
        threatened investigative, administrative or judicial proceeding, whether
        or not such Indemnitee shall be designated a party thereto) that may be
        imposed on, incurred by or asserted against such Indemnitee, in any
        manner relating to or arising out of the Credit Documents, the Loans, or
        the use or intended use of the proceeds of the Loans (the "Indemnified
        Liabilities"); provided that no Indemnitee shall have the right to be
        indemnified or held harmless hereunder for its own gross negligence, or
        willful misconduct, as determined by a final judgment of a court of
        competent jurisdiction. The Guarantor agrees not to assert any claim
        against the Administrative Agent, any Lender, any of their Affiliates,
        or any of their respective directors, officers, employees, attorneys,
        agents, and advisers, on any theory of liability, for special, indirect,
        consequential, or punitive damages arising out of or otherwise relating
        to the Credit Documents (including, without limitation, this Guaranty),
        any of the transactions contemplated herein or the actual or proposed
        use of the proceeds of the Loans.

               (c) To the extent that the undertaking to indemnify and hold
        harmless set forth in this Section 7.3 may be unenforceable as violative
        of any applicable law or public policy, the Guarantor shall make the
        maximum contribution to the payment and satisfaction of each of the
        Indemnified Liabilities that is permissible under applicable law. All
        Indemnified Liabilities shall be payable on demand.

                                       25
<PAGE>   26

               (d) Without prejudice to the survival of any other agreement of
        the Guarantor hereunder, the agreements and obligations of the Guarantor
        contained in this Section 7.3 shall survive the repayment of the
        Guaranteed Obligations.

        7.4    RIGHT OF SET-OFF.

        After the occurrence of an Event of Default, any Lender may set-off any
matured obligation owed by the Guarantor under this Guaranty (to the extent
beneficially owned or held by such Lender) against any obligation (whether or
not matured) owed by such Lender to the Guarantor, regardless of the place of
payment.

        7.5    TERM OF GUARANTEE.

        This Guaranty shall continue in full force and effect until the
Guaranteed Obligations are fully and indefeasibly paid, performed and discharged
and all Commitments have expired or been terminated. This Guaranty covers the
Guaranteed Obligations whether presently outstanding or arising subsequent to
the date hereof including all amounts advanced by the Administrative Agent or
any Lender in stages or installments.

        7.6    THE ADMINISTRATIVE AGENT.

        In acting under or by virtue of this Guaranty, the Administrative Agent
shall be entitled to all the rights, authority, privileges and immunities
provided in the Credit Agreement, all of which provisions are incorporated by
reference herein with the same force and effect as if set forth herein.

        7.7    SUCCESSORS AND ASSIGNS.

        This Guaranty shall be binding on and enforceable against the Guarantor
and its successors and assigns; provided that, the Guarantor may not assign or
transfer any of its obligations hereunder without prior written consent of the
Lenders. This Guaranty is intended for and shall inure to the benefit of the
Administrative Agent and each Lender and each and every person who shall from
time to time be or become the owner or holder of any of the Guaranteed
Obligations, and each and every reference herein to "Administrative Agent" or
"Lender" shall include and refer to each and every successor or assignee of the
Administrative Agent or any Lender at any time holding or owning any part of or
interest in any part of the Guaranteed Obligations. This Guaranty shall be
transferable and negotiable with the same force and effect, and to the same
extent, that the Guaranteed Obligations are transferable and negotiable, it
being understood and stipulated that upon assignment or transfer by the
Administrative Agent or any Lender of any of the Guaranteed Obligations the
legal holder or owner of the Guaranteed Obligations (or a part thereof or
interest therein thus transferred or assigned by the Administrative Agent or any
Lender) shall (except as otherwise stipulated by the Administrative Agent or any
such Lender in its assignment) have and may exercise all of the rights granted
to the Administrative Agent or such Lender under this Guaranty to the extent of
that part of or interest in the Guaranteed Obligations thus assigned or
transferred to said person. The Guarantor

                                       26
<PAGE>   27

expressly waives notice of transfer or assignment by the Lenders of the
Guaranteed Obligations, or any part thereof, or of the rights of the
Administrative Agent or any Lender hereunder. Failure to give notice will not
affect the liabilities of the Guarantor hereunder.

        7.8    APPLICATION OF PAYMENTS.

        Each of the Administrative Agent and the Lenders may apply any payments
received by it from any source against that portion of the Guaranteed
Obligations (principal, interest, court costs, attorneys' fees or other) in such
priority and fashion as it may deem appropriate.

        7.9    MODIFICATIONS.

        Subject to the terms of the Credit Agreement, this Guaranty and the
provisions hereof may be changed, discharged or terminated only by an instrument
in writing signed by the Guarantor and the Administrative Agent.

        7.10   NOTICES.

        Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (i) when
delivered, (ii) when transmitted via telecopy (or other facsimile device) to the
number set out below, (iii) the day following the day on which the same has been
delivered prepaid to a reputable national overnight air courier service, or (iv)
the third Business Day following the day on which the same is sent by certified
or registered mail, postage prepaid, in each case to the respective parties at
the address set forth below or at such other address as such party may specify
by written notice to the other parties hereto:

        if to the Guarantor:

               Nordstrom, Inc.
               1617 6th Avenue
               Seattle, Washington 98101
               Attn:  Chief Financial Officer
               Telephone:  (206) 373-4090
               Telecopy:  (206) 373-4055

        if to the Administrative Agent:

               Bank of America, N.A.
               1850 Gateway Blvd., 5th Floor
               Mail Code CA4-706-05-09
               Concord, California  94520
               Attn:  Josephine T. Flores
               Telephone:  (925) 675-8374
               Telecopy:  (925) 969-2812

                                       27
<PAGE>   28

        with a copy to:

               Bank of America, N. A.
               555 California Street, 41st Floor
               Mail Code:  CA5-705-41-89
               San Francisco, California 94194
               Attn:  James Johnson
               Telephone:  (415) 622-6177
               Telecopy:  (415) 622-4585

        7.11   TAXES.

        All payments made by the Guarantor under this Guaranty and any other
Credit Documents shall be made free and clear of, and without deduction or
withholding for or on account of, any present or future income, stamp or other
taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now
or hereafter imposed, levied, collected, withheld or assessed by any court, or
governmental body, agency or other official, excluding taxes measured by or
imposed upon the overall net income of any Lender or its applicable lending
office, or any branch or affiliate thereof, and all franchise taxes, branch
taxes, taxes on doing business or taxes on the overall capital or net worth of
any Lender or its applicable lending office, or any branch or affiliate thereof,
in each case imposed in lieu of net income taxes, imposed: (i) by the
jurisdiction under the laws of which such Lender, applicable lending office,
branch or affiliate is organized or is located, or in which its principal
executive office is located, or any nation within which such jurisdiction is
located or any political subdivision thereof; or (ii) by reason of any
connection between the jurisdiction imposing such tax and such Lender,
applicable lending office, branch or affiliate other than a connection arising
solely from such Lender having executed, delivered or performed its obligations,
or received payment under or enforced, this Guaranty or any other Credit
Document. If any such non-excluded taxes, levies, imposts, duties, charges,
fees, deductions or withholdings ("Non-Excluded Taxes") are required to be
withheld from any amounts payable to the Administrative Agent or any Lender
under this Guaranty or under any other Credit Document, (A) the amounts so
payable to the Administrative Agent or such Lender shall be increased to the
extent necessary to yield to the Administrative Agent or such Lender (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Guaranty and any
other Credit Document, and (B) as promptly as possible thereafter the Guarantor
shall send to the Administrative Agent for its own account or for the account of
such Lender, as the case may be, a certified copy of an original official
receipt received by the Guarantor showing payment thereof. If the Guarantor
fails to pay any Non-Excluded Taxes when due to the appropriate taxing authority
or fails to remit to the Administrative Agent the required receipts or other
required documentary evidence, the Guarantor shall indemnify the Administrative
Agent and the Lenders for any incremental taxes, interest or penalties that may
become payable by the Administrative Agent or any Lender as a result of any such
failure. The agreements in this subsection shall survive the termination of this
Guaranty and the other Credit Documents. If the Guarantor is required to pay
additional amounts to or for the account of any Lender pursuant to this Section
7.11, such Lender has agreed in Section 3.11(f) of the Credit Agreement to use
reasonable efforts to change its

                                       28
<PAGE>   29

Applicable Lending Office so as to eliminate or reduce any such additional
payment which may thereafter accrue if such change, in the reasonable judgment
of such Lender, is not otherwise disadvantageous to such Lender.

        7.12   SEVERABILITY.

        If any provision of this Guaranty is determined to be illegal, invalid
or unenforceable, such provision shall be fully severable and the remaining
provisions shall remain in full force and effect and shall be construed without
giving effect to the illegal, invalid or unenforceable provisions.

        7.13   GOVERNING LAW.

        This Guaranty and the rights and obligations of the parties hereto shall
be construed in accordance with and governed by the laws of the State of
Washington.

        7.14   WAIVER OF JURY TRIAL.

        To the extent permitted by law, each of the Administrative Agent and the
Guarantor hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim arising out of or relating to this Guaranty or the
transactions contemplated hereby.

        7.15   CONSENT TO JURISDICTION.

        (a) Any legal action or proceeding with respect to this Guaranty may be
brought in the courts of the State of Washington in King County, or of the
United States for the Western District of Washington, and, by execution and
delivery of this Guaranty, the Guarantor hereby irrevocably accepts for itself
and in respect of its property, generally and unconditionally, the nonexclusive
jurisdiction of such courts. Nothing herein shall affect the right of the
Administrative Agent or any Lender to serve process in any manner permitted by
law or to commence legal proceedings or to otherwise proceed against the
Guarantor in any other jurisdiction.

        (b) The Guarantor hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Guaranty in the courts referred to in Section
7.15(a). Each of the parties hereto hereby further irrevocably waives and agrees
not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient forum.

        (c) Each party to this Guaranty irrevocably consents to service of
process in the manner provided for notices in Section 7.10. Nothing in this
Guaranty will affect the right of any party to this Guaranty to serve process in
any other manner permitted by law.

                                       29
<PAGE>   30

        7.16   HEADINGS.

        The headings in this instrument are for convenience of reference only
and shall not limit or otherwise affect the meaning of any provisions hereof.

        7.17   COUNTERPARTS.

        This Guaranty may be executed in any number of counterparts and by
different parties hereto on separate counterparts, each constituting an
original, but all together one and the same instrument.

        7.18   RIGHTS OF THE REQUIRED LENDERS.

        All rights of the Administrative Agent hereunder, if not exercised by
the Administrative Agent, may be exercised by the Required Lenders.

        7.19   ORAL AGREEMENTS NOT BINDING.

        ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON
LAW.

                                       30
<PAGE>   31

        IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly
executed and delivered as of the day and year first above written.

GUARANTOR:                          NORDSTROM, INC.,
                                    a Washington corporation

                                    By:
                                       -----------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title:
                                          --------------------------------------

ACCEPTED:

BANK OF AMERICA, N.A.,
as Administrative Agent, on behalf of the Lenders

By:
   --------------------------------------
Name:
     ------------------------------------
Title:
      -----------------------------------This  Lease  made the 20th day of July  1995,  between  RAYMOND  V.  ROMANO,  25
Carlough  Road,  Bohemia,  NY 11716  hereinafter  referred to as  LANDLORD,  and
THERMALTECH  INTERNATIONAL,  INC., 513 Dryden Street,  Westbury,  New York 11590
hereinafter jointly, severally and collectively referred to as TENANT.

     Witnesseth,  that the Landlord hereby leases to the Tenant, and the Tenant,
hereby hires and takes from the Landlord  approximately 2,000 square feet in the
building  known as 68 Lamar Street (Unit A) , West Babylon,  NY 11704 to be used
and  occupied  by the Tenant for  office,  warehouse  and light  industry.

and for no other  purpose,  for a term to commence on August 1, 1995, and to end
on July 31, 1998,  unless sooner  terminated  as  hereinafter  provided,  at the
ANNAUL RENT of

YEAR 1: $12,000.00 YEARLY......................................$1,000.00 MONTHLY
YEAR 2: $12,600.00 YEARLY......................................$1,050.00 MONTHLY
YEAR 3: $12,600.00 YEARLY .....................................$1,050.00 MONTHLY

all payable in equal monthly instalments in advance on the first day of each and
every calendar month during said term, except the first instalment,  which shall
be paid upon the execution hereof.

     THE TENANT JOINTLY AND SEVERALLY COVENANTS:

     FIRST.--That the Tenant will pay the rent as above provided.

REPAIRS

ORDINANCES AND VIOLATIONS

ENTRY

INDEMNIFY LANDLORD

     SECOND.-- That,  throughout said term the Tenant will take good care of the
demised premises, fixtures and appurtenances, and all alterations, additions and
improvements  to either;  make all  repairs in and about the same  necessary  to
preserve  them in good order and  condition,  which repairs shall be, in quality
and class, equal to the original work; promptly pay the expense of such repairs;
suffer no waste or injury;  give prompt  notice to the Landlord of any fire that
may occur;  execute  and comply with all laws,  rules,  orders,  ordinances  and
regulations  at any time issued or in force (except those  requiring  structural
alterations),  applicable to the demised premises or to the Tenant's  occupation
thereof,  of the  Federal,  State and Local  Governments,  and of each and every
department,  bureau  and  official  thereof,  and of the New York  Board of Fire
Underwriters;  permit at all times during usual business hours, the Landlord and
representatives of the Landlord to enter the demised premises for the purpose of
inspection,  and to exhibit  them for  purposes  of sale or  rental;  suffer the
Landlord to make repairs and  improvements to all parts of the building,  and to
comply with all orders and requirements of governmental  authority applicable to
said building or to any occupation  thereof;  suffer the Landlord to erect, use,
maintain,  repair and replace pipes and conduits in the demised  premises and to
the floors above find below;  forever  indemnify  and save harmless the Landlord
for  and  against  any and  all  liability,  penalties,  damages,  expenses  and
judgments  arising  from  injury  during  said term to person or property of any
nature,  occasioned wholly or in part by any act or acts,  omission or omissions
of the Tenant, or of the employees,  guests,  agents, assigns or undertenants of
the Tenant and also for any matter or thing growing out of the occupation of the
demised  premises  or of the  streets,  sidewalks  or vaults  adjacent  thereto;
permit, during the six months next prior to the expiration of the term the usual
notice "To Let" to be placed and to remain  unmolested  in a  conspicuous  place
upon the exterior of the demised  premises;  repair, at or before the end of the
of the term,  all injury done by the  installation  or removal of furniture  and
property; and at the end of the term, to quit and surrender the demised premises
with all alterations, additions and improvements in good order and condition.

MOVING INJURY SURRENDER

NEGATIVE COVENANTS

OBSTRUCTION SIGNS

AIR CONDITIONING

     THIRD. -- That the  Tenant  will not  disfigure  or deface  any part of the
building,  or suffer the same to be done,  except so far as may be  necessary to
affix such trade fixtures as are herein consented to by the Landlord; the Tenant
will not  obstruct,  or permit the  obstruction  of the  street or the  sidewalk
adjacent thereto;  will not do anything,  or suffer anything to be done upon the
demised  premises  which  will  increase  the  rate of fire  insurance  upon the
building or any of its contents, or be liable to cause structural injury to said
building;  will not permit the accumulation of waste or refuse matter,  and will
not,  without the written  consent of the Landlord  first obtained in each case,
either  sell,  assign,  mortgage or  transfer  this lease  underlet  the demised
premises or any part thereof, permit the same or any part thereof to be occupied
by  anybody  other  than  the  Tenant  and  the  Tenant's  employees;  make  any
alterations  in the  demised  premises,  use the  demised  premises  or any part
thereof for any purpose  other than the one first above  stipulated,  or for any
purpose deemed extra  hazardous on account of fire risk, nor in violation of any
law or ordinance. That the Tenant will not obstruct or permit the obstruction of
the light, halls,  stairway or entrances to the building,  and will not erect or
inscribe  any sign,  signals  or  advertisements  unless and until the style and
location  thereof have been approved by the  Landlord;  and if any be erected or
inscribed  without such  approval,  the  Landlord may remove the same.  No water
cooler, air conditioning unit or system or other apparatus shall be installed or
used without the prior written consent of Landlord.

     IT IS MUTUALLY COVENANTED AND AGREED, THAT

FIRE CLAUSE

FOURTH.--If  the demised  premises  shall be partially  damaged by fire or other
cause  without  the fault or neglect of Tenant,  Tenant's  servants,  employees,
agents,  visitors  or  licensees,  the  damages  shall be repaired by and at the
expense  of  Landlord  and the rent until  such  repairs  shall be made shall be
apportioned  according  to the part of the demised  premises  which is usable by
Tenant.  But if such  partial  damage is due to the fault or  neglect of Tenant,
Tenant's servants,  employees,  agents, visitors or licensees, without prejudice
to any other rights and remedies of Landlord and without prejudice to the rights
of subrogation of Landlord's insurer,  the damages shall be repaired by Landlord
but there shall be no  apportionment  or  abatement  of rent.  No penalty  shall
accrue for reasonable delay which may arise by reason of adjustment of insurance
on the part of Landlord  and/or Tenant,  and for reasonable  delay on account of
"labor troubles",  or any other cause beyond Landlord's  control. If the demised
premises are totally  damaged or are  rendered  wholly  untenantable  by fire or
other cause,  and if Landlord  shall decide not to restore or not to rebuild the
same,  or if the  building  shall be so damaged  that  Landlord  shall decide to
demolish it or to rebuild it, then or in any of such events Landlord may, within
ninety (90) days after such fire or other cause, give Tenant a notice in writing
of such  decision,  which notice shall be given as in  Paragraph  Twelve  hereof
provided,  and  thereupon  the term of this lease shall  expire by lapse of time
upon the third day after  such  notice is given,  and  Tenant  shall  vacate the
demised  premises and surrender the same to Landlord.  If Tenant shall not be in
default  under this lease  then,  upon the  termination  of this lease under the
conditions  provided  for  in  the  sentence  immediately  preceding,   Tenant's
liability  for rent shall cease as of the day  following  the  casualty.  Tenant
hereby  expressly  waives the provisions of Section 227 of the Real Property Law
and agrees  that the  foregoing  provisions  of this  Article  shall  govern and
control in lieu  thereof.  If the damage or  destruction  be due to the fault or
neglect of Tenant the debris shall be removed by, and at the expense of, Tenant.

EMINENT DOMAIN

     FIFTH.--If  the whole or any part of the premises  hereby  demised shall be
taken or condemned by any competent authority for any public use or purpose then
the term hereby granted shall cease from the time when possession of the part so
taken shall be required  for such public  purpose and without  apportionment  of
award,  the Tenant  hereby  assigning to the Landlord all right and claim to any
such award, the current rent, however, in such case to be apportioned.

LEASE NOT IN EFFECT

DEFAULTS

TEN DAY NOTICE

     SIXTH.--If,  before the commencement of the term, the Tenant be adjudicated
a bankrupt, or make a "general assignment," or take the benefit of any insolvent
act, or if a Receiver or Trustee be appointed for the Tenant's  property,  or if
this lease or the estate of the Tenant  hereunder be  transferred  or pass to or
devolve upon any other person or corporation,  or if the Tenant shall default in
the  performance of any agreement by the Tenant  contained in any other lease to
the  Tenant by the  Landlord  or by any  corporation  of which an officer of the
Landlord is a Director,  this lease shall thereby at the option of the Landlord,
be terminated  and in that case,  neither the Tenant nor anybody  claiming under
the Tenant shall be entitled to go into possession of the demised  premises.  If
after the  commencement  of the term, any of the events  mentioned above in this
subdivision  shall occur,  or if Tenant shall make default in fulfilling  any of
the covenants of this lease, other than the covenants for the payment of rent or
"additional  rent" or if the demised  premises  become  vacant or deserted,  the
Landlord may give to the Tenant ten days' notice of intention to end the term of
this lease,  and thereupon at the expiration of said ten days (if said condition
which was the basis of said notice shall  continue to exist) the term under this
lease shall expire as fully and  completely  as if that day were the date herein
definitely  fixed for the  expiration  of the term and the Tenant will then quit
and surrender the demised premises to the Landlord,  but the Tenant shall remain
liable as hereinafter provided.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]