Document:

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                                                                   Exhibit 10.43

                           NORDSTROM, INC. LEADERSHIP
                                 SEPARATION PLAN
                       (Restated Effective March 1, 2005)

            I. INTRODUCTION.

            A. Background. The Separation Program for Key Management Employees
(the "Plan") was originally adopted by Nordstrom, Inc. (the "Company"),
effective October 28, 1997. This amendment, restatement, and renaming of the
Plan is effective as of March 1, 2005 (the "Effective Date") and renames the
Plan, the Nordstrom Leadership Separation Plan. The purpose of the Plan is to
provide a group of key leadership employees of the Company or its subsidiaries
and affiliates ("Affiliates") with an appropriate level of severance benefits in
the event he/she separates from service under the circumstances described
herein.

            The Plan does not apply to any employment terminations other than
those expressly described below and is not intended to set any precedent for
future severance policies or practices of the Company.

            The Plan is intended to constitute an unfunded severance pay plan
for a select group of management employees for purposes of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA").

            B. Plan Governance.

            1. Plan Sponsor and Administrator. The Company is the "Plan Sponsor"
and the "Plan Administrator" of the Plan. The Company's senior officer with
responsibility for Human Resources and the Company's Compensation and Leadership
Benefits Department have been selected to assist the Company in its day-to-day
responsibilities with respect to the Plan. The Company is the named fiduciary
charged with responsibility for administering the Plan; the Administrative
Committee is the named fiduciary that has the authority to act with respect to
any appeal from a denial of benefits. The Administrative Committee, with the
advice of the Company, will make such rules and computations and will take such
other actions to administer the Plan as the Committee deems appropriate. The
address of the Administrative Committee is: Nordstrom, Inc., C/O Leadership
Benefits, PO Box 12338, Seattle, Washington 98111-3338.

            a. Company's Discretion. As Plan Administrator, the Company has the
      sole and exclusive discretion, authority and responsibility to construe
      and interpret the terms and provisions of the Plan, to remedy and resolve
      ambiguities, to grant and/or deny any and all claims for benefits, and to
      determine all issues relating to eligibility for benefits. All actions
      taken by the Company as Plan Administrator, or its delegate, will be
      conclusive and binding on all persons having any interest under the Plan,
      subject only to the provisions of Article IX. All findings, decisions and
      determinations of any kind made by the Plan Administrator or its delegate
      shall not be disturbed unless the Plan Administrator has acted in an
      arbitrary and capricious manner.

            b. Delegation of Authority. The Company may delegate all or part of
      its responsibilities, authority and discretion under the Plan to other
      persons. The duties of the Company under the Plan will be carried out in
      its name by its officers, directors and employees. Any such delegation
      shall carry with it the full discretion and authority vested in the
      Company under paragraph I.B.1., above. As of the effective date of the
      Restated Plan, the Company has delegated the day-to-day administration of
      the Plan to its Compensation and Leadership Benefits Department under the
      direction of the Company's senior officer with responsibility for Human
      Resources and the responsibility for adjudicating the appeal of a denied
      claim under the Plan's claims procedures to its Administrative Committee.

                                     Page 1
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            2. Administrative Committee. The Plan Administrator may appoint an
"Administrative Committee," consisting of one or more individuals who may (but
need not) be employees of the Company. The Administrative Committee will be the
named fiduciary that has the authority to act with respect to any appeal from a
denial of benefits. The Administrative Committee appointed by the Plan
Administrator shall be empowered with the same level of authority and discretion
as that set forth in Section I.B. As of the Effective Date, the Administrative
Committee for purposes of Eligible Key Leadership Employees who are Section 16
insiders shall be the Compensation Committee of the Board of Directors of the
Company. The Administrative Committee for purposes of Eligible Key Leadership
Employees who are not Section 16 insiders shall be the Company's senior officer
with responsibility for Human Resources and the Divisional Vice President for
Compensation and Leadership Benefits.

            II. ELIGIBLE EMPLOYEES.

            A. Eligibility Criteria. Each active employee of the Company or an
Affiliate who, on or after the Effective Date, meets all of the following
conditions will be considered an Eligible Leadership Employee, entitled to
participate in and receive benefits under the Plan upon satisfying the
participation requirements of Article III of this Plan (as specified below):

            1. The employee is a Designated Leadership Employee;

            2. The employee is not employed under a written contract of definite
      term; and

            3. The employee is not eligible to receive benefits under any other
      severance program or arrangement established or provided by the Company or
      Affiliate.

            B. Designated Leadership Employee. For purposes of this Plan, a
"Designated Leadership Employee" is any officer or employee of the Company or an
Affiliate designated as a Key, Core, Business or Company leadership level
employee, by the Company's senior officer with responsibility for Human
Resources. In addition, a "Designated Leadership Employee" includes any employee
of the Company or an Affiliate who is designated as a "Designated Leadership
Employee" of the Company by either (a) a corporate Officer, or (b) the senior
Human Resources executive with responsibility for the employee's group, with
either (a) or (b) acting jointly in such designation with the Company's senior
officer with responsibility for Human Resources.

            C. Ineligible Employee Groups. Employees who are not Designated
Leadership Employees are not eligible to participate in the Plan and shall not
be deemed an Eligible Leadership Employee.

            D. Company Determination of Eligibility. The determination of those
employees who are eligible to participate in the Plan will be made by the
Company in its sole and exclusive discretion, and, for purposes of determining
eligibility, the Company need not treat similarly situated employees in the same
manner.

            E. Affiliates of the Company. For purposes of this Plan, an
Affiliate of the Company means any other U.S. entity owned or controlled by the
Company, unless such Affiliate is designated by the Company as not eligible to
participate in the Plan.

            F. Employees of Divested Groups Excluded. Any employee of a divested
business group (including a business unit, store, facility, department or
division) who is offered employment by that group in the same or an equivalent
position, regardless of whether such offer is part of the agreement between the
Company, the group, and the purchaser of that business, or successor entity, as
applicable, shall not be deemed an Eligible Leadership Employee hereunder and
shall not be eligible to participate in this Plan.

                                     Page 2
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            III. PARTICIPATION/ELIGIBILITY FOR BENEFITS.

            A. Participation. An Eligible Leadership Employee who commences
participation in the Plan is called a "Participant" of the Plan. Participation
in the Plan will commence upon the Eligible Leadership Employee's (1)
Involuntary Termination by the Company, and (2) election to participate in the
Plan and execution of a release of claims ("Election and Release"), both as
described below. A Participant's participation will terminate on the date the
Participant receives payment of all of the Participant's Cash Severance Benefits
under the Plan or, if earlier, on the date the employee's eligibility expires.

            1. Involuntary Termination. An Eligible Leadership Employee's
      termination of employment will be considered an Involuntary Termination by
      the Company, for purposes of this Plan, where the employee is terminated
      by the Company without cause. "Cause" shall be defined either as a willful
      failure of the Eligible Leadership Employee to perform his/her duties at a
      level reasonably expected by the Company or as any form of willful
      misconduct which shall include but not be limited to acts of dishonesty,
      gross insubordination, gross negligence, discrimination or harassment, or
      any knowing and willful violation of law or of the Company's policies or
      performance standards. The Company shall have the discretion to interpret
      whether a termination was for "cause."

            2. Election and Release. Once an Involuntary Termination described
      in paragraph III.A.1. occurs, in order to receive benefits provided under
      the Plan, an Eligible Leadership Employee must first execute an Election
      and Release provided by the Company and described in this paragraph
      III.A.2., without any alteration, addition or deletion, and then return it
      to the Company at the location and by the deadline specified by the
      Company.

                  a. Form of Release. The form and content of the Election and
            Release will be determined by the Company. Such Release shall be
            effective according to its terms but may be modified by the Company
            prior to its execution by the Eligible Leadership Employee as it
            deems necessary.

                  b. Timing of Release. The Eligible Leadership Employee may, as
            determined by the Company as appropriate, have a period of time to
            review and sign the Release and return it to the Company. For any
            period required by law after the Eligible Leadership Employee signs
            the Release, the Eligible Leadership Employee may revoke the
            Release, and it shall not be effective or enforceable until the
            revocation period expires. The filing of a claim under the Plan's
            claim procedure (Article IX), shall toll any time requirement for
            signing and returning the Release until the claims procedure has
            been exhausted. If the Eligible Leadership Employee fails to sign
            and return to the Company the Release within the time and in the
            manner described herein, he or she will no longer be eligible for
            this Plan, unless and until the Company thereafter designates the
            Employee as eligible under Article II of this Plan.

            B. Loss of Eligibility. An Eligible Leadership Employee (or
Participant of the Plan, as the case may be) will become ineligible for and lose
any rights he or she may have to benefits under the Plan, and his or her
participation in the Plan will cease if, before the scheduled date of the
Participant's employment termination, any of the following occurs:

            1. He or she voluntarily resigns his or her employment with the
      Company.

            2. The Eligible Leadership Employee (or Participant) fails to abide
      by such terms and conditions as the Company has established as a condition
      for participation in, or payment of benefits from, the Plan, provided such
      terms and conditions have been set forth in any eligibility notice
      provided.

                                     Page 3
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            3. The Eligible Leadership Employee remains an employee, but is no
      longer a Designated Leadership Employee (as defined above) or no longer
      qualifies as a member of a select group of management employees of the
      Company or its Affiliates within the meaning of Sections 201(2), 301(a)(3)
      and 401(a)(4) of ERISA.

            4. The Eligible Leadership Employee either dies or becomes disabled
      prior to becoming a Participant.

            IV. PLAN BENEFITS.

      This Article IV sets forth the benefits provided by the Plan as summarized
in the attached Schedule of Benefits, as from time to time is or may be
established and amended by the Company and incorporated herein by this reference
(the "Benefits Schedule"). The benefits provided under the Plan include the
following: (a) a Cash Severance Benefit, (b) Medical/Dental Premium Assistance
Benefits, (c) Outplacement Benefits, and (d) a Relocation Benefit, each as
described below. In addition, the Company may provide additional severance
benefits to a Participant under this Plan, based on the particular circumstances
surrounding that Participant's termination.

            A. Cash Severance Benefits.

            1. Severance Benefit Amount. A Participant will receive the Cash
      Severance Benefit specified in the Benefits Schedule, based on his or her
      Years of Service, Annual Salary, and designated Leadership level.

            2. Cash Payments. A Participant's Cash Severance Benefits under the
      Plan will be calculated as a lump-sum payment.

            3. "Annual Salary" Defined. A Participant's "Annual Salary" under
      paragraph IV.A.1., shall be such Participant's monthly base salary paid in
      cash (at the rate in effect at the time of termination) multiplied by
      twelve (12). "Annual Salary" shall exclude bonuses, commissions, and other
      supplemental pay or allowances provided by the Company to the Participant
      (such as options, performance share units, restricted stock, and other
      forms of equity-based compensation, but shall be calculated prior to
      withholdings for the Participant's own contributions for participation in
      any of the Company's benefits or plans, such as retirement, stock
      purchase, welfare, or deferred compensation plans).

            4. "Years of Service" Defined. A Participant's "Years of Service"
      under paragraph IV.A.1, shall be measured in whole years and based on
      uninterrupted periods of service from such Participant's most recent date
      of hire.

            5. Withholding. The Company will withhold appropriate federal, state
      and local income and employment taxes from any payments made under the
      Plan.

                  6. SERP Offset. A Participant's Cash Severance Benefit under
      this Plan shall be reduced, dollar for dollar, by the SERP Offset Amounts
      (if any) calculated for such Participant as provided in this Section.

                  a. Calculation of Monthly SERP Offset Benefit. A Participant's
      monthly benefit under the Nordstrom Supplemental Executive Retirement Plan
      ("SERP") shall be calculated and determined under the SERP, in accordance
      with the rules and procedures established thereunder. For purposes of this
      Plan, the Participant's SERP benefit used for the offset under this
      Section, shall be the Participant's gross monthly SERP benefit, calculated
      prior to any reduction under the SERP for Company contributions to its
      401(k) Plan & Profit Sharing and Executive Deferred Compensation Plan, or
      other post employment retirement plans as the case shall be.

                                     Page 4
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                  b. SERP Offset Amount. The monthly SERP offset benefit
      determined under Paragraph 6(a) shall be multiplied by the total number of
      months covered by the Severance Period (as defined in F., below), to
      provide a total SERP Offset Amount.

                  c. Application of Offset. To the extent a Participant is
      entitled to the payment of a Cash Severance Benefit under this Plan, a
      Participant's Cash Severance Benefit payable under this Plan shall be the
      benefit determined in accordance with the provisions of Sections IV.A.1
      through 4 of this Plan, reduced dollar for dollar by the SERP Offset
      Amount determined in this Section IV.A.6.

            B. Medical/Dental Premium Assistance Benefit.

            1. Benefits Continued through Termination. For Company-sponsored
      employee welfare benefit plans in which the Participant is a participant
      on the date his or her employment terminates (i.e., group medical, dental,
      disability, AD&D and life), the Company will take appropriate steps to
      provide for a Participant's continued participation in a plan to which the
      Participant is required to contribute as provided under those Plans'
      rules, unless the Participant does not make the required contribution to
      that plan.

            2. Health Benefits After Termination. Upon termination, the
      Participant shall have such rights to continue coverage under any
      Company-sponsored health care plans (i.e., medical and dental) as are
      provided by Section 4980B(f) of the Internal Revenue Code of 1986, as
      amended, and Section 602 of ERISA ("COBRA").

            3. Payment for Coverage. For any Company-sponsored employee health
      care plans in which the Participant elects COBRA (other than the
      Leadership Health Reimbursement Program), the Company will take
      appropriate steps to continue the Participant's participation in each of
      those plans, by paying the Company's active plan contribution amount for
      the Participant's (and his or her dependents') coverage through the end of
      the period specified in the Benefits Schedule. During this period, the
      Participant will be required to pay for any such Participant's COBRA
      continuation coverage elected by the Participant at the same level and on
      the same basis as the Participant's contribution to group health plan
      coverage for active employees. Thereafter, the Participant shall be
      responsible for the entirety of any COBRA premium obligations required to
      continue group health plan coverage under the terms of those plans.

            4. Period of Continuation Coverage. The entirety of the group health
      benefits provided under paragraphs 2 and 3, above, after the date that the
      Participant (and his or her qualifying dependents) would otherwise have
      lost coverage, will be counted against the maximum period of coverage
      provided under COBRA.

            5. Alternatives to COBRA Continuation Payments. In lieu of Company
      assisted COBRA Continuation Payments as described in sections B.2, B.3 and
      B.4, the Participant may elect to participate in the Company's Retiree
      Medical Plan (to the extent he or she is eligible). If the Participant is
      not eligible for coverage under the Company's Retiree Medical Plan, the
      Company, in its discretion, may elect to pay to the Participant the cash
      equivalent of the Company's cost for such benefits (excluding any cost
      relating to Participant's continued participation in the Leadership Health
      Reimbursement Program) for the period of coverage described in B.3;
      provided however, that to the extent the Company makes such an election,
      the Participant shall be required to pay the entire COBRA Premium for any
      period of coverage elected.

                                     Page 5
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            C. Outplacement Services.

            The Participant will be offered outplacement services. Such services
will be provided at a specified level and for a specified length of time, as
provided in the Benefits Schedule. The outplacement services offered under this
Plan will be provided by a provider chosen by the Company, and the Company will
directly pay all such expenses. Participants may elect not to accept the
outplacement services; however, he or she will not be entitled to receive any
monetary encashment in its stead. The Participant may access outplacement
services prior to his or her termination date, however should the Participant
elect not to participate in the Plan, the cost for Outplacement services will be
borne by the Participant. The Participant must initiate Outplacement Services
within ninety (90) days following the date of termination in order to be
eligible.

            D. Relocation Benefits.

            If the Participant (1) was provided relocation benefits in
connection with their employment with the Company, and (2) decides (as a result
of their termination from the Company) to relocate their principal residence to
a location that is more than fifty (50) miles from their residence at the time
of their separation with the Company, the Company will directly pay all or a
portion of the actual cost of moving of the Participant's (and the Participant's
household) personal property (in accordance with the rules and procedures
established in the Company's general Leadership relocation policy) to the extent
that (i) the termination of employment occurs less than twelve (12) months after
the Participant commences work in the position for which he or she has relocated
to his or her current location, (ii) such earlier relocation was in connection
with the Participant's employment with the Company, (iii) the relocation benefit
amount does not to exceed the price of moving such property during the original
relocation, and (iv) such Participant's relocation expenses are incurred within
twelve (12) months following commencement of participation in this Plan. Should
the Participant not relocate within one year following termination of
employment, he or she will not be entitled to any relocation benefit, and he or
she will not be entitled to receive any monetary encashment in its stead.

            E. Additional Benefits.

            The Company may, in its sole and exclusive discretion, provide the
Participant with additional severance benefits, in cash or in kind, to assist
the Participant in the transition from active employee status.

            F. Subsequent Reemployment.

            1. Reemployment During Severance Period. If an employee satisfies
      all of the conditions for eligibility and participation set forth in
      Sections II and III, except that he or she accepts an offer of employment
      with the Company prior to the end of the period for which he or she has
      received or will receive Cash Severance Benefits under the Plan (the
      "Severance Period"), then the employee will be considered a Participant
      under the Plan only to the extent of the employee's period of actual
      separation from service with the Company.

                  a. Repayment of Duplicative Benefits. A reemployed Participant
            will be required to repay the prorated portion of any Cash Severance
            Benefits received for the duration of their Severance Period during
            which they are actively at work for the Company. To eliminate the
            possibility of duplicative payments, an employee's agreement to
            repay such amounts (if any) may be obtained, with the employee's
            total repayment to be concluded prior to reemployment, or within a
            reasonable time after his or her reemployment as approved by
            Nordstrom Leadership Benefits department.

            2. Reemployment After Severance Period. Participants who are
      subsequently reemployed by the Company after the Severance Period (defined
      in paragraph F.1) will not be required to repay any Cash Severance
      Benefits.

                                     Page 6
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            3. New Hire Date. In the event of the Participant's reemployment
      with the Company, such reemployed Participant's service date will be
      restored to the service date in effect at the time of severance only to
      the extent required by any of the Company's employee benefit plans, but
      not for purposes of this Plan.

            V. PAYMENTS TO AND FROM THE PLAN.

            The benefits under the Plan will be paid from the general assets of
the Company, and all employees eligible for benefits under the Plan will be no
more than unsecured general creditors of the Company. Nothing contained in the
Plan will be deemed to create a trust of any kind for the benefit of the
employees, or create any fiduciary relationship between the Company and the
employees with respect to any assets of the Company. The Company is under no
obligation to fund the benefits provided herein prior to payment, although it
may do so if it chooses. Any assets which the Company chooses to use for advance
funding will nevertheless constitute assets of the Company and will not cause
this to be a funded plan within the meaning of any section of ERISA.

            VI. AMENDMENT AND TERMINATION.

            The Company reserves the right to amend or terminate the Plan at any
time; provided, however, that no such amendment or termination will affect the
right to any unpaid benefit of any Eligible Leadership Employee who became
entitled to such benefits prior to such amendment or termination.

            VII. NON-ALIENATION OF BENEFITS.

            Except to the extent specifically provided by the Company, no
benefit under the Plan will be subject to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, garnishment, levy, execution or
charge, and any attempt to do so will be void.

            VIII. LEGAL CONSTRUCTION.

            This Plan will be construed in accordance with ERISA and, to the
extent not preempted by ERISA, with the laws of the State of Washington. In the
event that any provision of this Plan shall be finally deemed to be
unenforceable, such provision shall be deemed to be severable from this Plan,
but every other provision of this Plan shall remain in full force and effect.

            IX. CLAIMS, INQUIRIES AND APPEALS.

            A. Benefit Claims and Inquiries.

            All benefit claims, and all inquiries concerning the Plan or present
or future rights to benefits under the Plan, must be submitted to the Plan
Administrator in writing and addressed as follows: "Nordstrom, Inc., Plan
Administrator Under the Leadership Separation Plan, C/O Leadership Benefits,
P.O. Box 12338, Seattle Washington 98111-3338." A benefit claim or inquiry must
be signed by the employee.

                                     Page 7
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            B. Denial of Claims.

            In the event that any benefit claim is denied in whole or in part,
the Plan Administrator will notify the claimant in writing of such denial and of
the right to review thereof. Such written notice will set forth, in a manner
calculated to be understood by the claimant, specific reasons for such denial,
specific references to the Plan provision on which such denial is based, a
description of any information or material necessary to perfect the claim, an
explanation of why such material is necessary and an explanation of the Plan's
review procedure. Such written notice will be given to the claimant within
ninety (90) days after the Plan Administrator receives the claim, unless special
circumstances require an extension of time of up to ninety (90) days for
processing, written notice of the extension will be furnished to the applicant
prior to the termination of the initial 90-day period. This notice of extension
will indicate the special circumstances requiring the extension of time and the
date by which the Plan Administrator expects to render its decision on the
claim. If written notice of denial of the claim for benefits is not furnished
within the time specified in this Section IX.B., the application will be deemed
denied, and the claimant will be permitted to appeal such denial in accordance
with the Review Procedure set forth below.

            C. Appeal: Requests for a Review.

            Any person whose claim for benefits is denied (or is deemed denied)
in whole or in part, or such person's duly authorized representative, may appeal
from such denial by submitting a request for a review of the claim to the
Administrative Committee within sixty (60) days after receiving written notice
of such denial from the Plan Administrator (or, in the case of a deemed denial,
within sixty (60) days after the application is deemed denied). The Plan
Administrator will give the claimant or such representative an opportunity to
review pertinent documents that are not privileged in preparing a request for a
review. A request for review must be in writing and must be addressed as
follows: "Plan Administrator Under the Separation Program for Leadership
Employees, Nordstrom Leadership Benefits, P.O. Box 12338, Seattle, Washington
98111-3338." A request for review must set forth all of the grounds on which it
is based, all facts in support of the request and any other matters that the
claimant deems pertinent. The Administrative Committee may require the applicant
to submit such additional facts, documents or other material as it may deem
necessary or appropriate in making its review.

            D. Decision on Review.

            The Administrative Committee will act on each request for review
within sixty (60) days after receipt thereof unless special circumstances
require an extension of time, up to an additional sixty (60) days, for
processing the request. If such an extension for review is required, written
notice of the extension will be furnished to the claimant within the initial
60-day period. The Administrative Committee will give prompt, written notice of
its decision to the claimant and to the Plan Administrator. In the event that
the Administrative Committee confirms the denial of the benefits in whole or in
part, such notice will set forth, in a manner calculated to be understood by the
claimant, the specific references to the Plan provisions on which the decision
is based. If written notice of the Administrative Committee's decision is not
given within the time prescribed in this Section, the application will be deemed
denied on review.

            E. Rules and Procedures.

            The Company as Plan Administrator, and the Administrative Committee,
as applicable, may establish such rules and procedures, consistent with the Plan
and with ERISA, as it may deem necessary or appropriate in carrying out its
responsibilities under this Article IX. The Administrative Committee may require
a claimant who wishes to submit additional information in connection with an
appeal from the denial (or deemed denial) of benefits to do so at the his or her
own expense.

                                     Page 8
<PAGE>

            F. Exhaustion of Remedies.

            No legal action for benefits under the Plan shall be brought unless
and until the claimant (1) has submitted a written benefit claim in accordance
with Section IX.A. above, (2) has been notified by the Plan Administrator that
the application is denied, (3) has filed a written request for a review of the
benefit claim in accordance with Section IX.C. above and (4) has been notified
in writing that the Administrative Committee has affirmed the denial of
benefits; provided that legal action may be brought after the Plan Administrator
or the Administrative Committee has failed to take any action on the claim
within the time prescribed by Section IX.B. or Section IX.D. above.

            X. OTHER PLAN INFORMATION.

            A. Plan Identification Numbers.

            The Employer Identification Number ("EIN") assigned to the Plan
Sponsor (Nordstrom, Inc.) by the Internal Revenue Service is 91-0515058. The
Plan Number ("PN") assigned to the Plan by the Plan Sponsor pursuant to
instructions of the Internal Revenue Service is 521.

            B. Ending Date for Plan's Fiscal Year.

            The date of the end of the year for the purposes of maintaining the
Plan's fiscal records is the calendar year.

            C. Agent for the Service of Legal Process.

            The agent for the service of legal process with respect to the Plan
is the Executive Vice President for Human Resources and Diversity Affairs, C/O
Leadership Benefits, Nordstrom, Inc., PO Box 12338, Seattle Washington
98111-3338. The service of legal process may also be made on the Plan by serving
the Plan Administrator.

            XI. EMPLOYMENT STATUS.

            This Plan in no way alters the relationship between Designated or
Eligible Leadership Employees and Company as one of at-will employment.

            XII. EXECUTION.

            To record the adoption of the Plan as set forth herein, effective as
of March 18, 2005, the Company has caused its authorized representative to
execute the same this 18 day of March, 2005.

                    NORDSTROM, INC.
                    By: /s/ Delena M. Sunday
                       ---------------------------------------------------------
                    Its: Executive Vice President, Human Resources and Diversity
                    Affairs

                    Witness:

                    By: /s/ Leslie R. Thornton
                       ---------------------------------------------------------
                    Its: Divisional Vice President, Compensation and Leadership
                    Benefits

                                     Page 9
<PAGE>

                      NORDSTROM LEADERSHIP SEPARATION PLAN
                              SCHEDULE OF BENEFITS
                               AS OF MARCH 1, 2005

<TABLE>
<CAPTION>
               YEARS OF
 LEADERSHIP    SERVICE      CASH SEVERANCE                          PERIOD OF MEDICAL/DENTAL   OUTPLACEMENT
   LEVEL       CRITERIA          PAY          MAXIMUM AND MINIMUMS     PREMIUM ASSISTANCE        SERVICES
 ----------    --------     --------------    --------------------  ------------------------   ------------
<S>           <C>         <C>                 <C>                   <C>                       <C>
BUSINESS AND     None      1 month per year    Maximum: 24 months
  COMPANY                     of service       Minimum: 6 months            12 months         Up to 6 months

              20 or more                                                    12 months

                              Two weeks
                          salary per year of                                                  Up to 6 months
                               service

               12 - 19

                                               Maximum: 52 weeks
KEY AND CORE                                   Minimum: 12 weeks            6 months

                6 - 11

                          One and one-half
                          weeks salary per
                           yearof service                                                     Up to 3 months

                0 - 5                                                       3 months
</TABLE>

* COBRA-related benefit provided only if the Participant is not eligible for the
Nordstrom Retiree Health Plan or if Participant elects not to participate in
that Plan.

                                    Page 10EXHIBIT 10.1

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED  EMPLOYMENT  AGREEMENT (this  "AGREEMENT") is made and
entered into by and between INTERLAND,  INC., a Minnesota corporation having its
principal  executive  offices  located at the business  address of 303 Peachtree
Center Avenue, Suite 500, Atlanta,  Georgia 30303 (the "COMPANY"),  and Allen L.
Shulman, an individual residing in Georgia ("EXECUTIVE").

WHEREAS,  Company  desires to employ  Executive as  President,  Chief  Operating
Officer and  Corporate  Secretary  as of April 5, 2005,  and whereas the parties
wish to establish  certain terms and  conditions of such  employment by entering
into this Agreement; and

WHEREAS,  Executive  desires  such  employment  with  Company  on the  terms and
conditions set forth in this Agreement; and

WHEREAS,  this AGREEMENT amends,  restates and replaces that certain  Employment
Agreement between Executive and Interland,  Inc., a Minnesota  corporation dated
on or  about  October  18,  2001  (as  amended  from  time  to  time,  the  "Old
Agreement"),  provided, however, that the Confidentiality,  Invention Assignment
and  Non-Competition  Agreement  signed by Executive on or about October 4, 2001
remains in full force and effect and is incorporated herein by this reference as
if fully stated herein;

NOW THEREFORE,  in  consideration  of the premises and the mutual  covenants and
agreements contained herein, the parties hereby agree as follows:

1.  Employment;  Regular  Compensation.  Company  agrees to employ  Executive as
President and Chief Operating Officer,  and Executive agrees to serve Company in
such capacity on the terms and conditions set forth in this  Agreement.  Company
shall pay Executive a base salary in such amount as the Board of Directors  (the
"Board") may determine (as determined from time to time, the "BASE SALARY"). The
Base Salary is expressed as an annual amount solely for reference purposes,  and
shall be payable to Executive on a bi-weekly  basis.  As of April 4, 2005,  such
amount is $305,000 per annum. In its sole discretion, but subject to Section 6.3
hereof, the Company may change Executive's compensation.

2. Effective Date; Indefinite Term.

     2.1 This Agreement  shall be deemed in full force and effect as of the date
     it is  executed  by the  parties  below,  along with the  execution  of any
     exhibits hereto;

     2.2 This Agreement has an indefinite  term, and  Executive's  employment by
     Company  hereunder  may be  terminated at will by either party at any time,
     with or without  Cause (as  defined in Section  6.1,  below) or any reason,
     voluntary  or  involuntary,  and  with or  without  prior  notice.  Certain
     provisions of this Agreement,  however,  as more fully set forth in Section
     5,  below,  provide  for the  payment of  benefits  to  Executive  upon the
     specified  circumstances  of  termination of  Executive's  employment  with

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     Company,  and certain  other  provisions,  as more fully set forth below in
     Section  11,  below,  may  continue  in  effect  beyond  the  date  of such
     termination.  Executive  expressly  acknowledges and agrees that employment
     with Company is on an "at will"  basis,  and that this  Agreement  does not
     provide a guarantee  of  continued  employment,  notwithstanding  any other
     provision in this Agreement.

3. Duties.  Executive shall report to Joel Kocher,  Chairman and Chief Executive
Officer,  or such other individual as may be designated from time to time by the
Chairman or the Board . Executive  shall  faithfully and diligently  perform all
such acts and duties, and furnish such services, as are assigned to Executive by
the Chairman,  the Board , or such other  individual as may be designated by the
Chairman or the BOARD.

4. Efforts;  Conflicts of Interest.  During  Executive's  employment by Company,
Executive  shall  devote his full  business  time and efforts to Company and its
business  during  normal  business  hours,  and shall  safeguard and promote its
lawful interests. During Executive's employment by Company, Executive shall not,
either  directly or indirectly,  engage in or enter into any business or perform
any  services for any other  person,  firm,  association,  or  corporation  that
conflicts  with  Executive's  efforts  to  Company  or with  Company's  business
interests, except for: (a) serving on the board of directors of any other entity
that is not in competition  with Company (subject to Company's  approval,  which
shall not be  unreasonably  withheld or  delayed);  (b)  activities  approved in
writing in advance by the  Chairman or the Board,  which  approval  shall not be
unreasonably withheld or delayed; or (c) passive investments in entities that do
not involve  Executive  providing  any advice or services to the  businesses  in
which  the  investments  are  made,  or which  do not  violate  Company  policy,
including  without  limitation  any policy  relating to conflicts of interest or
business ethics.

5. Benefits Upon Termination of Employment.

     5.1  By  Company  for  Cause  or  by  Executive  Without  Good  Reason.  If
     Executive's  employment  is terminated by Company for Cause or by Executive
     Without  Good Reason (as defined in Section  6.5,  below),  then  Company's
     obligation to pay  compensation  and benefits  under this  Agreement  shall
     immediately terminate, except that: (a) Company shall pay to Executive and,
     if applicable, Executive's heirs, any earned but unpaid Base Salary through
     such  termination  date; and (b) Company shall permit  Executive to receive
     continuation  of the  benefits as set forth in Section 5.5,  below,  to the
     extent  applicable.  Under  such  circumstances,  no  further  payments  or
     benefits  (except  as  otherwise  required  by law)  shall be  provided  to
     Executive.  The terms  "Cause" and  "Without  Good  Reason"  shall have the
     meaning set forth in Section 6, below.

     5.2 By  Company  for  Nonperformance  Due  to  Disability.  If  Executive's
     employment is terminated by Company for  Nonperformance  Due to Disability,
     then  Company's  obligation  to pay  compensation  and benefits  under this
     Agreement shall immediately  terminate,  except that: (a) Company shall pay
     to Executive and, if applicable,  Executive's  heirs, any earned but unpaid
     Base Salary  through  such  termination  date;  (b) Company  shall  provide
     Executive with such other  payments and benefits as may be permitted  under
     the  Company's  short-  or  long-term   disability  plans,  to  the  extent
     applicable,  and  subject  to the  terms  and  conditions  of  such  plans,
     including without limitation any eligibility requirements;  and (c) Company

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     shall permit Executive to receive continuation of the benefits as set forth
     in Section 5.5, below, to the extent applicable.  The term  "Nonperformance
     Due to Disability" shall have the meaning set forth in Section 6, below.

     5.3 By Company  Other Than for Cause or by Executive  for Good  Reason.  If
     Executive's  employment is terminated by Company other than for Cause or by
     Executive  for Good  Reason  (as  defined  in  Section  6.3,  below),  then
     Company's  obligation to pay compensation and benefits under this Agreement
     shall  immediately  terminate,  except  that:  (a)  Company  shall  pay  to
     Executive and, if applicable, Executive's heirs, any earned but unpaid Base
     Salary  through such  termination  date; (b) Company shall pay to Executive
     any  earned but  unpaid  incentive  compensation  or  bonuses  through  the
     termination  date,  subject  to the  terms of the  applicable  bonus  plan,
     including   without   limitation  any   eligibility   requirements  or  any
     limitations on such payment under  applicable law; (c) Company shall permit
     Executive to receive  continuation  of the benefits as set forth in Section
     5.5,  below,  to the  extent  applicable;  and  (d)  Company  shall  pay to
     Executive,  as  severance  benefits,  an amount  equal to 12 months of Base
     Salary (the "Severance Benefits").  The Severance Benefits shall be paid in
     a lump sum, as soon as practicable following such termination date, subject
     to the  following  conditions:  (x)  Executive  shall  execute  a  written,
     complete  waiver  and  release  of  all  claims  relating  to  Company,  or
     Executive's  employment by Company or any termination  thereof,  within any
     applicable  consideration  or  execution  periods  and  in a form  that  is
     acceptable  to Company;  and (y) subject to  confirmation  by Company  that
     Executive  does not later  revoke such waiver and release of claims  within
     any revocation period required by applicable law.

     5.4 Death of  Executive.  In the event of  Executive's  death,  Executive's
     employment  and  all  other  obligations   hereunder  shall   automatically
     terminate and the Company's  obligation  to pay  compensation  and benefits
     under this Agreement shall immediately terminate, except that Company shall
     pay to Executive's  estate:  (a) Executive's Base Salary through the end of
     the calendar  month in which  Executive's  death  occurs;  (b)  Executive's
     earned but unpaid  incentive  compensation  or bonuses  through the date of
     Executive's  death,  subject to the terms and  conditions of the applicable
     Bonus Plan,  including without  limitation any eligibility  requirements or
     any limitations on such payment under applicable law; and (c) Company shall
     permit  Executive's  heirs to receive  continuation  of the benefits as set
     forth in Section 5.5,  below,  to the extent  applicable and allowed by law
     and subject to the terms of such plans.

     5.5 Benefits  Continuation.  Upon  termination of  Executive's  employment,
     Company  shall permit  Executive  and, if  applicable,  Executive's  family
     members,  to continue to participate in Company's  employee benefits plans,
     to the extent  required  or allowed by law and subject to the terms of such
     plans and applicable law.

6. Definitions.

     6.1 "CAUSE" shall mean termination of Executive's employment by Company for
     one or more  of the  following  reasons:  (a)  Executive  has  breached  or
     threatens to breach a fiduciary  duty owed to Company;  (b)  Executive  has

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     engaged or  threatens to engage in  dishonesty,  fraud,  gross  negligence,
     willful  malfeasance  or other acts of  misconduct  in the  performance  of
     Executive's duties or during the course of Executive's employment; (c) upon
     the willful and  continued  failure by Executive  substantially  to perform
     Executive's duties with the Company (other than by reason of Nonperformance
     Due to Disability as defined below);  (d) Executive has willfully  violated
     or threatens to violate  Company  policies,  or has  willfully  violated or
     threatens  to violate  any law,  rule or  regulation  (other  than  traffic
     violations or similar offenses) which result in material injury to Company;
     or (e) Executive has violated or threatens to violate the terms of Sections
     4, 7, or 8 of this Agreement or the material  terms of the  Confidentiality
     and  Non-Competition  Agreement,  or any  other  material  breach  of  this
     Agreement.

     6.2  "DISABILITY"  shall  have the  meaning  ascribed  to such  term or its
     variations,  such as "Disabled," in Company's long-term disability plan, or
     in the absence of such plan, a meaning  consistent  with the  definition of
     permanent  and total  disability  under  Section  22(e)(3) of the  Internal
     Revenue Code of 1986, as amended.

     6.3 "GOOD REASON"  shall mean that one or more of the following  events has
     occurred and, after giving Company  written notice of the occurrence and of
     Executive's  intention to resign from employment and Company not curing the
     event within 30 days of receipt of such written  notice:  (a) a substantial
     adverse  change  in  Executive's   duties  or   responsibilities,   without
     Executive's  consent (a change to any title  other than to Chief  Financial
     Officer shall be deemed a "substantial adverse change");  (b) any reduction
     in Executive's  Base Salary (at the annualized rate then in effect) without
     Executive's  consent prior to April 4, 2006; (c) any reduction  after April
     4, 2006 in Executive's  Base Salary (at the annualized rate then in effect)
     without Executive's consent in excess of 15% cumulatively; (d) a relocation
     of Executive's  principal place of employment by more than a 50 mile radius
     surrounding Atlanta,  Georgia,  without Executive's consent.  Additionally,
     "GOOD  REASON"  shall also mean the  resignation  by  Executive at any time
     during  the  thirty-day  period  following  that  date  which  is 270  days
     following the election of a new Chief Executive Officer of the Company.

     6.4  "NONPERFORMANCE  DUE TO  DISABILITY"  shall mean  that,  if because of
     Disability,  Executive  is unable to perform  the  essential  functions  of
     Executive's job, with or without reasonable accommodation,  for a period of
     30 consecutive days in any calendar year.

     6.5  "WITHOUT  GOOD  REASON"  shall  mean  termination  or  resignation  of
     Executive's employment by Executive other than for Good Reason.

7.  Non-Disparagement.  Executive shall not at anytime make false, misleading or
disparaging   statements  about  the  Company,   its  parent,   subsidiaries  or
affiliates,  including any of their products, services,  management,  directors,
officers, employees, and customers.

8. Confidential Information and Covenants Not to Compete. The parties agree that
Executive's  services to Company are of a unique value and that confidential and

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proprietary information about Company has been or will be obtained by, disclosed
or otherwise made  available to Executive as a result of Executive's  employment
with Company.  Accordingly, as a condition to Executive's employment,  Executive
and  Company  haveentered  into a  Confidentiality,  Invention  Assignment,  and
Non-Competition Agreement. .

9. Dispute resolution  process.  All disputes between Executive and Company that
otherwise could be resolved in court shall be resolved  instead by the following
alternative dispute resolution process (the "PROCESS").

     9.1  Disputes  Covered.  This  Process  applies  to  all  disputes  between
     Executive  and Company,  including  those arising out of or related to this
     Agreement or

     Executive's employment by Company. Disputes subject to this Process include
     but are not limited to pay disputes,  contract  disputes,  legal  disputes,
     wrongful  termination  disputes,  and  discrimination,  harassment or civil
     rights disputes.  This Process applies to disputes  Executive may have with
     Company  and also  applies  to  disputes  Executive  may  have  with any of
     Company's employees or agents so long as the person with whom Executive has
     the  dispute is also bound by or  consents to this  Process.  This  Process
     applies  regardless  of when the  dispute  arises and will remain in effect
     after Executive's employment with Company ends, regardless of the reason it
     ends. This Process does not apply, however, to any workers' compensation or
     unemployment  compensation  claims,  to the  extent  applicable  under  the
     circumstances.

     9.2  Negotiation  and Mediation.  Executive and Company agree to attempt to
     resolve all disputes first by direct  negotiations.  If direct negotiations
     are not successful,  the parties shall then use mediation. They shall first
     attempt to agree upon a mediator.  If unable to agree upon a mediator,  the
     parties shall request and conduct mediation under the American  Arbitration
     Association's  National  Rules for the  Resolution of Employment  Disputes.
     Unless  otherwise  agreed by the parties,  any mediation  sessions shall be
     held in Atlanta,  Georgia.  Temporary or interim  injunctive  relief may be
     sought without mediating first. Any failure to mediate shall not affect the
     validity of an arbitration award or the obligation to arbitrate.

     9.3  Arbitration.  If the dispute is not resolved  through  negotiation and
     mediation,  the  parties  shall  request,  and  either  party  may  demand,
     arbitration  pursuant to the American  Arbitration  Association's  National
     Rules for the Resolution of Employment Disputes. Unless otherwise agreed by
     the parties, any arbitration hearing shall be held in Atlanta, Georgia. The
     decision of the arbitrator shall be final and binding on the parties and on
     all persons and entities claiming through the parties.  Submission of their
     dispute to  arbitration  shall be the  exclusive  means for  resolving  the
     dispute,  to the  exclusion  of any trial by a court or jury.  All disputes
     that are not resolved by agreement  (in  mediation or  otherwise)  shall be
     determined by binding arbitration.

     9.4  Injunctive  Relief.  Either  party may  request a court to issue  such
     temporary or interim relief  (including  temporary  restraining  orders and
     preliminary  injunctions)  as may be  appropriate,  either  before or after

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     mediation or  arbitration  is commenced.  The  temporary or interim  relief
     shall remain in effect pending the outcome of mediation or arbitration.  No
     such  request  shall be a waiver  of the  right to submit  any  dispute  to
     mediation or arbitration.

     9.5  Employment  Status.  This  Process  does not  affect the status of the
     employment  relationship  between  the  parties,  which as stated  above in
     Section 2.2 shall be "at will;" nor does this Process  guarantee  continued
     employment by the Company, require discharge only for cause, or require any
     particular corrective action or discharge procedures.

10.  Notification.  Executive  hereby  authorizes  the  Company,  or  any of its
employees or designated representatives or counsel, to notify Executive's actual
or future employers or any governmental agency of any terms of this Agreement or
the   Confidentiality    and    Non-Competition    Agreement   and   Executive's
responsibilities or obligations hereunder.

11. Severability;  Survival of Provisions.  If any part of this Agreement or any
part of the Confidentiality  and Non-Competition  Agreement is held by any legal
authority  to be  unenforceable  or is  severed  by  any  legal  authority,  the
remainder of such  agreement  shall be enforced to the maximum extent allowed by
applicable law.  Certain  provisions of this Agreement,  including  confidential
information and covenants not to compete (Section 8), dispute resolution process
(Section 9),  notification  (Sections 10 and 21), and governing law (Section 18)
of  this  Agreement,  and  all of the  provisions  of  the  Confidentiality  and
Non-Competition  Agreement,  shall survive  after any such legal  determination,
after  Executive's  employment by Company ends regardless of the reason it ends,
and  shall be  enforceable  regardless  of any such  determination  or any claim
Executive may have against Company.

12. Relief for Breach.  Because any breach or threatened  breach by Executive of
Sections  4,  7,  and  8  of  this  Agreement  or  of  the  Confidentiality  and
Non-Competition  Agreement  would result in continuing  material and irreparable
harm to Company,  and because it would be difficult or  impossible  to establish
the full monetary value of such damage,  Company shall be entitled to injunctive
relief  in the  event of any such  breach or  threatened  breach  by  Executive.
Injunctive  relief is in  addition  to any  other  available  remedy,  including
termination of this Agreement and damages. In the event of any threatened breach
of this Agreement by Executive,  Company may suspend any payment of Base Salary,
incentives,  bonuses, Severance Benefits and other compensation due to Executive
under this  Agreement  and,  if  Executive  has  breached  this  Agreement,  any
remaining  amounts to be paid under this  Agreement  shall be forfeited.  In the
event of any  breach or  threatened  breach by either  party  which  results  in
court-ordered  relief,  the breaching  party shall  reimburse the  non-breaching
party for its reasonable  attorneys' fees and other expenses  incurred to obtain
such relief.

13. Waiver.  No waiver of any provision of this Agreement  shall be valid unless
in  writing,  signed  by the  party  against  whom the  waiver  is  sought to be
enforced.  The waiver of any breach of this  Agreement or failure to enforce any
provision of this Agreement shall not waive any later breach.

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14.  Binding  Effect.  This  Agreement  is binding  upon the  parties  and their
personal representatives, heirs, successors and permitted assigns.

15. Counterparts.  This Agreement may be executed in any number of counterparts,
each of which  shall be an  original  and all of which,  taken  together,  shall
constitute a single agreement.

16. Complete  Agreement.  This Agreement,  together with the Confidentiality and
Non-Competition  Agreement, is the final and complete expression of the parties'
agreement  relating to Executive's  employment by the Company.  Without limiting
the  foregoing,  this Agreement  replaces and  supersedes  any prior  employment
agreements  between  Executive  and  Company,   or  its  parent,   subsidiaries,
predecessors or affiliates, and each party to this Agreement hereby releases and
holds  harmless the other party from any  obligations  or liability with respect
thereto.  The parties acknowledge and agree that they are not entering into this
Agreement in reliance on anything not set out in this Agreement.  This Agreement
shall control over any inconsistent  policies or procedures of Company affecting
Executive's  employment,  whether in effect now or adopted later,  but Company's
policies and procedures  that are  consistent  with this  Agreement,  whether in
effect now or adopted later, shall apply to Executive's  employment according to
the terms thereof.

17.  Payroll  Withholding.  All  payments of Base Salary,  incentives,  bonuses,
Severance Benefits and other compensation  payable to Executive pursuant to this
Agreement or otherwise shall be subject to the customary  withholding for income
taxes as determined  appropriate  by the Company,  and shall be subject to other
withholdings or deductions as required with respect to such compensation paid by
a corporation to any employee.

18.  Governing  Law.  This  Agreement  shall be  governed  by and  construed  in
accordance  with the laws of the State of Georgia,  without giving effect to the
provisions thereof relating to choice of laws. Each party hereby irrevocably (a)
consents  to the  jurisdiction  and venue for any  legal  action  with the state
courts in Fulton County,  Georgia and federal courts in the Northern District of
Georgia, Atlanta Division, unless injunctive relief is sought by Company and, in
Company's  judgment,  that relief might not be effective unless obtained in some
other venue;  and (b) waives any  jurisdictional  defenses  (including  personal
jurisdiction  and venue) to any such action.  These  provisions  do not give any
party a right to proceed in court in violation of the Dispute Resolution Process
under Section 9, above.

19.  Successors  And  Assigns.  All  rights  and  duties of  Company  under this
Agreement  shall be  binding  on and  inure to the  benefit  of its  successors,
assigns or any  company  which  purchases  or  otherwise  acquires  it or all or
substantially  all of its operating  assets by any method.  This Agreement shall
not be assignable by Executive  other than the right to receive  benefits  being
passed by will or by the laws of descent and distribution.

20.  Amendment.  This  Agreement  contains  the entire  agreement of the parties
relating to the subject matter and may not be amended except by an instrument in
writing  signed by both parties;  it shall not be amended orally or by course of
dealing.

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21. Notices.  All notices required or permitted under this Agreement shall be in
writing and may be personally  served or mailed by registered or certified  U.S.
mail, postage prepaid and addressed as follows:

If to Company:  Interland,  Inc. 303 Peachtree  Center Avenue Suite 500 Atlanta,
Georgia 30303

If to Executive:  Allen Shulman 303 Peachtree Center Avenue,  Suite 500 Atlanta,
Georgia 30303 (or the  Executive's  last-known  home address as reflected in the
Company's payroll records).

Any of the  above  addresses  may be  changed  at any  time by  notice  given as
provided  above;  provided,  however,  that any such notice of change of address
shall be effective  only upon  receipt.  All notices,  requests or  instructions
given in accordance  herewith shall be deemed  received on the date of delivery,
if hand delivered or telecopied,  and 3 business days after the date of mailing,
if mailed by registered or certified mail, return receipt requested.

EXECUTIVE                                   INTERLAND, INC.

/s/ Allen L. Shulman                        /s/ Jonathan B. Wilson
--------------------------------            ------------------------------------
Signature                                   Signature

4/8/05                                      April 8, 2005
--------------------------------            ------------------------------------
Date                                        Date

                                            Jonathan B. Wilson
Allen L. Shulman                            Vice President & General Counsel
--------------------------------            ------------------------------------
Printed Name                                Printed Name

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