Document:

exv10w36

 

Exhibit 10.36

Fifth Amendment to Merchant Agreement & Operating Procedures

     This Fifth Amendment to Merchant Agreement & Operating Procedures, dated as of November 1,
2005 (“Amendment”), between Nordstrom, Inc (“Nordstrom” or “Merchant”), and Nordstrom fsb
(“Bank”), amends and supplements that certain Merchant Agreements Operating Procedures, dated as
of August 30, 1991, as amended by a First Amendment, dated March 1, 2000, a Second Amendment,
dated March 2, 2000, a Third Amendment dated October 1, 2001 and a Fourth Amendment dated
November 1, 2002 (collectively, the “Agreement”) between Nordstrom fsb (successor in interest to
Nordstrom National Credit Bank) and Nordstrom. Capitalized terms used but not defined herein shall
have the meanings ascribed to such terms in the Agreement.

     The Bank and Nordstrom wish to amend the Agreement to reflect certain pricing changes, as set
forth in this Amendment.

     Therefore, in consideration of the parties’ performance hereunder, the mutual covenants and
conditions set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereby amend and supplement the Agreement
as follows:

	 	1.	 	Section 17 of the Agreement is hereby amended by adding the following
subsection (d) after the sentence “Receivables shall be transferred daily”:

(d) In addition to all other amounts payable hereunder, Nordstrom shall pay Bank a fee
of one dollar ($1.00) per month for every active Nordstrom private label credit card
(also referred to hereunder as a “Bank Credit Card”) account, which account was opened
by Bank on or after October 20, 2005 for a cardholder whose FICO score was under 600 at
the time such account was opened.

     2. Except as specifically amended hereby, the terms and conditions of the Agreement are
unchanged and in full force and effect.

     IN WITNESS WHEREOF the parties have executed this Amendment effective as of the date first
written above.

	 	 	 	 	 	 	 	 	 	 	 
	Nordstrom fsb, a federal savings bank	 	 	 	Nordstrom Inc., a Washington corporation	 	  
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Eva Chadwick
	 	 	 	By:
	 	/s/ Kevin Knight	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Eva Chadwick
	 	 	 	Name:
	 	Kevin Knight	 	 
	Title:

	 	President
	 	 	 	Title:
	 	Executive Vice Presidentexv10w37

 

Exhibit 10.37

Sixth Amendment to Merchant Agreement & Operating Procedures

          This Sixth Amendment to Merchant Agreements Operating Procedures, dated as of May 1, 2007
(“Amendment”), between Nordstrom, Inc (“Nordstrom” or “Merchant”), and Nordstrom fsb (“Bank”),
amends and supplements that certain Merchant Agreements Operating Procedures, dated as of
August 30, 1991, as amended by a First Amendment, dated March 1, 2000, a Second Amendment, dated
March 2, 2000, a Third Amendment dated October 1, 2001, a Fourth Amendment dated as of November 1,
2002 and a Fifth Amendment dated as of November 1, 2005 (collectively, the “Agreement”) between
Nordstrom fsb (as successor in interest to Nordstrom National Credit Bank) and Nordstrom.
Capitalized terms used herein but not defined herein shall have the meanings ascribed to such
terms in the Agreement.

          The Bank and Nordstrom wish to amend the Agreement to correctly reflect updated pricing, as
set forth in this Amendment.

          Therefore, in consideration of the mutual covenants and conditions contained
herein, the parties hereby amend and supplement the Agreement as follows:

          1. Effective May 1, 2007, Section 17 of the Agreement is hereby amended by
deleting the existing provision in its entirety and replacing it with the following
provision:

     17 Fees.

(a) Merchant and the Bank agree that Merchant’s payment to the Bank of its fees, expressed as a
percentage of the total of each Bank Credit Card Transaction, for services rendered to Merchant
under this Agreement will also be sufficient to compensate the Bank for services rendered to
Merchant pursuant to the terms hereof. Merchant will pay fees to Bank hereunder (the “Merchant
Fees”) to compensate Bank for services provided as issuer, acquirer and service provider with
respect to the Bank Credit Cards and Bank Credit Card Transactions Beginning May 1, 2007, the
total Merchant Fees payable by Merchant hereunder shall be 2.0% of the net face amount of sales
slips (less any credit slips) credited to the Bank by Merchant in connection with Bank Credit
Card Transactions.

(b) Receivables shall be transferred daily, and the Bank will charge Merchant the
applicable percentage on all sales slips purchased on a daily basis.

(c) In addition to all other amounts payable hereunder, Nordstrom shall pay Bank a
fee of one dollar ($1.00) per month for every active Nordstrom private label credit
card (also referred to hereunder as a “Bank Credit Card”) account, which account was
opened by Bank on or after October 20, 2005 for a cardholder whose FICO score was
under 600 at the time such account was opened.

          2. Except as specifically amended hereby, the terms and conditions of the Agreement
are unchanged and in full force and effect.

          IN WITNESS WHEREOF the parties have executed this Amendment effective as of the date first written
above

	 	 	 	 	 	 	 	 	 	 	 
	Nordstrom fsb, a federal savings bank	 	 	 	Nordstrom Inc., a Washington corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Marc Anacker
	 	 	 	By:
	 	/s/ Kevin Knight	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:

	 	SVP Finance
	 	 	 	Title:
	 	 Executive VPexv10w38

 

Exhibit 10.38

NON-QUALIFIED STOCK OPTION AGREEMENT

(Price Vested Stock Option 1999)

     A NON-QUALIFIED STOCK OPTION for the number of shares of Common Stock
(hereinafter the “Option”) as noted on your Notice of Grant of Stock Options (the “Notice”),
of Nordstrom, Inc., a Washington Corporation (the “Company”), is hereby granted on the date
set forth on your Notice to you (the “Optionee”) at the price determined as provided in, and
in all respects subject to, the terms, definitions and provisions of the 1997 Nordstrom
Stock Option Plan adopted by the Company, which is incorporated by reference herein and
subject to the following:

     1. Option Price. The option price, being one hundred percent (100%) of the fair
market value, as determined by the Committee, of the Common Stock on the date of grant of
this Option, as noted on your Notice.

     2. Vesting and Exercise of Option. This Option shall vest and become
exercisable in accordance with the provisions of the Plan as follows:

	 	(a)	 	Normal Vesting. This Option shall vest and become
exercisable eight (8) years from the date of grant.
	 
	 	(b)	 	Accelerated Vesting. During the period ending
five (5) years from the date of grant, this Option shall vest at the
Applicable Percentage, as set forth below, when the average closing price
of the Company’s Common Stock, as reported in the Wall Street Journal,
over a 20 consecutive market day period exceeds the corresponding Stock
Price, as set forth below.

	 	 	 
	Applicable	 	Stock
	Percentage	 	Price
	20%
	 	$55
	35%
	 	$67
	45%
	 	$80

	 	(c)	 	Method of Exercise. This Option shall be exercisable by a written notice
which shall:

          (i) state the election to exercise the Option, the number of shares, the
total option price, name, address and social security number of the Optionee;

          (ii) be signed by the person entitled to exercise the Option; and

          (iii) be in writing and delivered to the Retirement Administration Office.

     Payment of the purchase price of any shares with respect to which an Option is
being exercised shall be by check, or may be by means of the surrender of shares of
Common Stock previously held by Optionee, having a fair market value at least equal
to the exercise price. The certificate or certificates or shares of Common Stock as to
which the Option shall be exercised shall be registered in the name of the person or
persons exercising the Option unless another person is specified. Options hereunder
may not at any time be exercised for a fractional number of shares.

     The exercise of this Option shall be in no event restricted by the fact that at
the time of exercise some portion of a previously granted incentive stock option
remains outstanding.

          (d) Restrictions on Exercise. This Option may not be exercised if the
issuance of the shares
upon such exercise would constitute a violation of any applicable federal or state
securities or other law or valid regulation. As a condition to the exercise of this Option
the Company may require the person exercising the Option to make any representation and
warranty to the Company as the Company’s counsel believes may be required by any applicable
law or regulation.

March 1999 – Price Vested Option

 

 

     3. Separation of Employment. Except as set forth below, this Option vests and may
only be exercised while the Optionee is an employee of the Company. If an Optionee’s
employment ends, this Option shall continue to vest pursuant to the accelerated vesting
schedule set forth in subparagraph 2(b) above and the Optionee or his or her legal
representative shall have the right to exercise the Option after such separation as
follows:

          (a) If the Optionee dies, the persons to whom the Optionee’s rights have passed by will or
the laws of descent and distribution may exercise such rights. Any such Option shall continue to
vest pursuant to the accelerated vesting schedule set forth in subparagraph 2(b) above and may be
exercised during the period ending four (4) years after the Optionee’s death, but in no event
later than ten (10) years after grant.

          (b) If the Optionee’s employment ends due to his or her embezzlement or theft of Company
funds, defraudation of the Company, violation of Company rules, regulations or policies, or any
intentional act which harms the Company, such Option, to the extent not exercised as of the date
of separation, shall be terminated as of that date.

          (c) If the Optionee’s employment ends due to his or her disability, as defined in Section
22(e)(3) of the Internal Revenue Code, this Option shall continue to vest pursuant to the
accelerated vesting schedule set forth in subparagraph 2(b) above and may be exercised during the
period ending four (4) years after separation, but in no event later than ten (10) years after
grant.

          (d) If the Optionee’s employment ends due to his or her retirement upon attaining age 50 with
10 years of service to the Company or age 60, this Option shall continue to vest pursuant to the
accelerated vesting schedule set forth in subparagraph 2(b) above and may be exercised during the
period ending four (4) years after retirement, but in no event later than ten (10) years after
grant.

          (e) If the Optionee’s employment ends for any reason other than those set forth in
subparagraphs (a), (b), (c) and (d) above, the Optionee may exercise his or her Option, to the
extent exercisable as of the date of his or her separation, within one hundred (100) days after
separation, but in no event later than ten (10) years after grant.

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

     Normal vesting set forth in subparagraph 2(a) above shall occur only while the Optionee is an
employee of the Company.

     4. Term of Option. This Option may not be exercised more than ten (10) years from
the date of original grant of this option, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.

     5. Adjustments Upon Changes in Capitalization. As provided in the Plan, the
number and kind of shares of Company stock subject to this Option shall be appropriately
adjusted along with a corresponding adjustment in the Option price to reflect any stock
dividend, stock split, split-up or any combination or exchange of shares, however
accomplished.

     6. Additional Option. The Committee may or may not grant you additional stock
option in the future. Nothing in this grant of option or any future grant should be construed
as suggesting that additional option grants to you will be
forthcoming.

March 1999 – Price Vested Option

2

 

NON-QUALIFIED STOCK OPTION AGREEMENT

(Time Vested Stock Option)

     A NON-QUALIFIED STOCK OPTION for the number of shares of Common Stock (hereinafter the
“Option”) as noted on your Notice of Grant of Stock Options (the “Notice”), of Nordstrom, Inc., a
Washington Corporation (the “Company”), is hereby granted on the date set forth on your Notice to
you (the “Optionee”) at the price determined as provided in, and in all respects subject to, the
terms, definitions and provisions of the 1997 Nordstrom Stock Option Plan adopted by the Company,
which is incorporated by reference herein and subject to the following:

     1. Option Price. The option price, being one hundred percent (100%) of the fair
market value, as determined by the Committee, of the Common Stock on the date of grant of
this Option, as noted on your Notice.

     2. Vesting and Exercise of Option. This Option shall vest and be exercisable in
accordance with the provisions of the Plan as follows:

          (a) Vesting. This Option shall vest at the applicable percentage
during the corresponding year, as set forth below

	 	 	 	 	 
	 	 	Percent
	                       Years	 	Vested
	During year 1
	 	 	0	%
	During year 2
	 	 	25	%
	During year 3
	 	 	50	%
	During year 4
	 	 	75	%
	After year 4
	 	 	100	%

          (b) Method of Exercise. This Option shall be exercisable by a written
notice which shall:

          (i) state the election to exercise the Option, the number of shares, the
total option price, name, address and social security number of the
Optionee;

          (ii) be signed by the person entitled to exercise the Option; and

          (iii) be in writing and delivered to the Retirement Administration Office.

     Payment of the purchase price of any shares with respect to which an Option is being
exercised shall be by check, or may be by means of the surrender of shares of Common Stock
previously held by Optionee, having a fair market value at least equal to the exercise
price. The certificate or certificates or shares of Common Stock as to which the Option
shall be exercised shall be registered in the name of the person or persons exercising the
Option unless another person is specified. Options hereunder may not at any time be
exercised for a fractional number of shares.

     The exercise of this Option shall be in no event restricted by the fact that at the
time of exercise some portion of a previously granted incentive stock option remains
outstanding.

          (c) Restrictions on Exercise. This Option may not be exercised if the
issuance of the shares upon such exercise would constitute a violation of any
applicable federal or state securities or other law or valid
regulation. As a
condition to the exercise of this Option the Company may require the person
exercising the Option to make any representation and warranty to the Company as the
Company’s counsel believes may be required by any applicable law or regulation.

March 1999 – Time Vested Option

 

 

     3. Termination of Employment. Except as set forth below, this Option vests and
may only be exercised while the Optionee is an employee of the Company. If an Optionee’s
employment is terminated, this Option shall continue to vest pursuant to the schedule set
forth in subparagraph 2(a) above and the Optionee or his or her legal representative shall
have the right to exercise the Option after such termination as follows:

          (a) If the Optionee dies, the persons to whom the Optionee’s rights have passed by will or
the laws of descent and distribution may exercise such rights. Any such Option shall continue to
vest and may be exercised during the period ending four (4) years after the Optionee’s death, but
in no event later than ten (10) years after grant.

          (b) If the Optionee’s employment is terminated due to his or her embezzlement or theft of
Company funds, defraudation of the Company, violation of Company rules, regulations or policies, or
any intentional act which harms the Company, such Option, to the extent not exercised as of the
date of termination, shall be terminated as of that date.

          (c) If the Optionee’s employment is terminated due to his or her disability, as defined in
Section 22(e)(3) of the Internal Revenue Code, this Option shall continue to vest and may be
exercised during the period ending four (4) years after termination, but in no event later than
ten (10) years after grant.

          (d) If the Optionee’s employment is terminated due to his or her retirement upon attaining
age 50 with 10 years of service to the Company or age 60, this Option shall continue to vest and
may be exercised during the period ending four (4) years after termination, but in no event later
than ten (10) years after grant.

          (e) If the Optionee’s employment is terminated for any reason other than those set forth in
subparagraphs (a), (b), (c) and (d) above, the Optionee may exercise his or her Option, to the
extent exercisable as of the date of his or her termination, within one hundred (100) days after
termination, but in no event later than ten (10) years after grant.

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

     4.
Term of Option. This Option may not be exercised more than ten (10) years from
the date of original grant of this option, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.

     5. Adjustments Upon Changes in Capitalization. As provided in the Plan, the number
and kind of shares of Company stock subject to this Option shall be appropriately adjusted
along with a corresponding adjustment in the Option price to reflect any stock dividend,
stock split, split-up or any combination or exchange of shares, however accomplished.

     6. Additional Option. The Committee may or may not grant you additional stock
option in the future. Nothing in this grant of option or any future grant should be
construed as suggesting that additional option grants to you will be forthcoming.

March 1999 – Time Vested Option

2

 

Nordstrom

Notice of Grant of Stock Options

Employee Number:

Stock Options

On
2/25/99, you were granted an option to buy shares of Nordstrom, Inc. Stock at $39.5625 per share
under the 1997 Stock Option Plan as follows:

Time Vested Shares:

You were granted shares that vest on a four year 25% vesting schedule as follows:

	 	 	 
	Date	 	Vest Percent
	2/25/00

	 	25%
	2/25/01
	 	25%
	2/25/02
	 	25%
	2/25/03
	 	25%

Price Vested Shares:

You were
granted shares that will vest on 2/25/07, unless vesting is accelerated. If the average
closing price of Nordstrom stock exceeds a specific price, as set forth below, for at least 20
consecutive market days before 2/25/04, vesting will be accelerated as follows:

	 	 	 
	Stock Price	 	Vest Percent
	$55
	 	20%
	$67
	 	35%
	$80
	 	45%

Stock Units

Performance Stock Units:

On 2/25/99, you were granted Nordstrom stock units that will vest on 2/25/02, based on the schedule
listed below. Vesting is based on the company’s performance relative to the Large Retailer
Comparator Group as noted in the 1999 Long Term Incentive Stock Program, dated March 1999.

Reward Schedule:

	 	 	 
	Percentile	 	Vest Percent
	<=50
	 	0%
	> 50
	 	75%
	> 65
	 	85%
	> 75
	 	100%
	> 85
	 	125%

Any shares that remain unvested at 2/25/02 will be forfeited. Any vested units may be paid in the
following ways: as cash, in the form of a Nordstrom Stock Certificate, or the stock units can be
deferred into your Executive Deferred Compensation Plan account.

By your signature and the Company’s signature below, you and the Company agree that these options
and stock units are granted under and governed by the terms and conditions of the Company’s 1997
Stock Option Plan and Non-Qualified Stock Option Agreement. To the extent any term of this Notice is
inconsistent with the Plan or the Agreement, the Plan and the Agreement will control.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Nordstrom, Inc.

	 	 
	 	 

Date
	 	 
	 
	 	 	 	 	 	 
	 

Employee Signature

	 	 
	 	 

Date
	 	 

 

 

Nordstrom

Notice of Grant of Stock Options

and Option Agreement

			
	 	 	 
	<NAME>
	 	Employee Number: <#>                    

 

Stock Options

On
8/12/99, you were granted an option to buy <Number of Shares> shares of Nordstrom, Inc.
Stock at $29.8125 per share under the 1997 Non-Qualified Stock Option Plan as follows:

Time Vested Shares:

You were granted <number of shares> shares that vest on a four year 25% vesting schedule as
follows:

	 	 	 	 	 	 	 
	 	 	Date	 	Vest Percent	 	 
	 
	 	8/12/00
	 	25%
	 	 
	 
	 	8/12/01
	 	25%	 	 
	 
	 	8/12/02
	 	25%	 	 
	 
	 	8/12/03
	 	25%	 	 

Price Vested Shares:

You were granted <number of shares> shares that will vest on 2/25/07, unless vesting in
accelerated. If the average closing price of Nordstrom stock exceeds a specific price, as set forth
below, for at least 20 consecutive market days before 2/25/04, vesting will be accelerated as
follows:

	 	 	 	 	 	 	 
	 	 	Stock Price	 	Vest Percent	 	 
	 
	 	$55
	 	20%
	 	 
	 
	 	$67
	 	35%	 	 
	 
	 	$80
	 	40%	 	 

 

Stock Units

Performance Stock Units:

On 8/12/99, you were granted <number of units> Nordstrom stock units that will vest on
1/31/02, based on the schedule listed below. Vesting is based on the company’s performance relative
to the Large Retail Comparator Group.

Reward Schedule:

	 	 	 	 	 	 	 
	 	 	Percentile	 	Vest Percent	 	 
	 
	 	<= 50
	 	0%
	 	 
	 
	 	> 50
	 	75%	 	 
	 
	 	> 65
	 	85%	 	 
	 
	 	> 75
	 	100%	 	 
	 
	 	> 85
	 	125%	 	 

Any shares that remain unvested at 1/31/02 will be forfeited. Any vested units may be paid in the
following ways: as cash, in the form of a Nordstrom Stock Certificate, or the stock units can be
deferred into your Executive Deferred Compensation Plan account.

 

By your signature and the Company’s signature below, you and the Company agree that these options
and stock units are granted under and governed by the terms and conditions of the Company’s 1997
Non-Qualified Stock Option and the Option Agreement.

	 	 	 	 	 
	 
	 	 	 	 
	 

Nordstrom, Inc.

	 	 

Date
	 	 
	 
	 	 	 	 
	 

Employee Signature

	 	 

Date

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