Document:

[LOGO SARATOGA INDUSTRIES                                     TEL : 518-245-4400
      SARATOGA ELECRO-FINISHING]                              FAX : 518-245-4425
                                                                www.espey.com
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Espey Mfg. & Electronics Corp.
233 Ballston Avenue, Saratoga Springs, NY 12866 USA

                                  AMENDMENT TO
         SECOND AMENDED AND RESTATED HOWARD PINSLEY AGREEMENT (Revised)

      AMENDMENT dated as of November 23, 2009, by and between Espey Mfg. &
Electronics Corp., a New York corporation and Howard Pinsley, to that certain
Agreement dated as of February 20, 2009.

      The parties hereby agree to amend and restate paragraph 4 of the Agreement
so that it provides, in full, as follows:

            4. TERM. This Agreement shall continue in effect until February 26,
               ----
      2010 at which time this Agreement shall terminate (the "Term"). If during
      the Term, the Employee resigns or is terminated as Chief Executive Officer
      of the Company, then the provisions of this Agreement shall continue in
      effect during the 36 month period following such resignation or
      termination and as provided in Section 5 below.

      IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment
as of the day and year first above written.

                                             ESPEY MFG. & ELECTRONICS CORP.

                                             By: /s/ Dave O'Neil
                                                 --------------------------
                                                 Name:  David O'Neil
                                                 Title:  Treasurer

                                             /s/Howard Pinsley
                                             ------------------------------
                                             Howard Pinsley

                                       3exv10w1

Exhibit 10.1

A NONQUALIFIED STOCK OPTION GRANT (hereinafter the “Option”) for the number of shares of Nordstrom
Common Stock (“Common Stock”), as noted in the 2010 Notice of Grant of Stock Options (the
“Notice”), of Nordstrom, Inc., a Washington Corporation (the “Company”), is hereby granted to the
Recipient (“Optionee”) on the date set forth in the Notice, subject to the terms and conditions of
this Agreement. The Option is also subject to the terms, definitions and provisions of the
Nordstrom, Inc. 2004 Equity Incentive Plan (the “Plan”) adopted by the Board of Directors of the
Company (the “Board”) and approved by the Company’s shareholders, which is incorporated in this
Agreement. To the extent inconsistent with this Agreement, the terms of the Plan shall govern.
Terms not defined herein shall have the meanings as set forth in the Plan. The Compensation
Committee of the Board (the “Compensation Committee”) has the discretionary authority to construe
and interpret the Plan and this Agreement. All decisions of the Compensation Committee upon any
question arising under the Plan or under this Agreement shall be final and binding on all parties.
The Option is subject to the following terms and conditions:

	1.	 	OPTION PRICE
	 
	 	 	The option price is one hundred percent (100%) of the fair market value of Common Stock as
determined by the closing price of Common Stock on the New York Stock Exchange on the date of
grant. For this purpose, the date of grant is indicated in the Notice and reflects either the
date the Compensation Committee approves the grant, or if this date falls within a closed trading
period, the first trading day thereafter that falls within an open trading window.

	2.	 	VESTING AND EXERCISING OF OPTION
	 
	 	 	Except as set forth in Section 5, the Option shall vest and be exercisable pursuant to the terms
of the vesting schedule set forth in the Notice.

	 	(a)	 	Method of Exercise. The Option shall be exercisable (only to the extent vested) by a
written notice in a form prescribed by the Company that shall:

	 	(i)	 	state the election to exercise the Option, the number of shares, the total option
price, and the name and address of the Optionee;
	 
	 	(ii)	 	be signed by the person entitled to exercise the Option; and
	 
	 	(iii)	 	be in writing and delivered to Nordstrom Leadership Benefits (either directly or
through a broker).

The Company has made arrangements with a broker for Option management and exercises.

	 	(b)	 	Payment upon Exercise. Payment of the option price for any shares with respect to which
an Option is being exercised shall be by:

	 	(i)	 	check or bank wire transfer,
	 
	 	(ii)	 	the surrender of shares of Common Stock previously held for at least six months by
the Optionee, or where not acquired by the Optionee by exercising the Option, having a
fair market value at least equal to the option price, or
	 
	 	(iii)	 	giving an irrevocable direction for a broker approved by the Company to sell all
or part of the Option shares and to deliver to the Company from the sale proceeds in an
amount sufficient to pay the option price and any amount required to be withheld to meet
the Company’s minimum statutory withholding requirements, including the employee’s share
of payroll taxes. (The balance of the sale proceeds, if any, will be delivered to
the Optionee.)

The certificate(s) or shares of Common Stock as to which the Option shall be exercised shall
be registered in the name of the person(s) exercising the Option unless another person is
specified. An Option hereunder may not at any time be exercised for a fractional number of
shares.

	 	(c)	 	Restrictions on Exercise. The 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, or the Company’s Insider Trading
Policy. As a
condition to the exercise of the Option, the Company may require the person exercising the
Option to make any representation and warranty to the Company as the Company’s counsel
advises and as may be required by the Company or by any applicable law or regulation.

	3.	 	ACCEPTANCE OF OPTION
	 
	 	 	Although the Company may or may not require the Optionee’s signature upon accepting the grant,
the Optionee remains subject to the terms and conditions of this Agreement.

	4.	 	NONTRANSFERABILITY OF OPTION
	 
	 	 	The Option may not be sold, pledged, assigned or transferred in any manner except in the event of
the Optionee’s death. In the event of the Optionee’s death, the Options may be transferred to
the person indicated on a valid Nordstrom Beneficiary Designation form, or if no Beneficiary
Designation form is on file with the Company, then to the person to whom the Optionee’s rights
have passed by will or the laws of descent and distribution. Except as set forth in Section 5
below, the Option may be exercised during the lifetime of the Optionee only by the Optionee or by
the guardian or legal representative of the Optionee. The terms of the Option shall be binding
upon the executors, administrators, heirs and successors of the Optionee.

	5.	 	SEPARATION OF EMPLOYMENT
	 
	 	 	Except as set forth below, a vested Option may only be exercised while the Optionee is an
employee of the Company. If an Optionee’s employment is terminated, 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 while employed by the Company, the recipient named on the Optionee’s
Beneficiary Designation form may exercise such rights. If no Beneficiary Designation form is
on file with the Company, then the person to whom the Optionee’s rights have passed by will
or the laws of descent and distribution may exercise such rights. If the Option was granted
at least six months prior to the death of the Optionee while employed by the Company, it
shall immediately vest and may be exercised during the period ending four years after the
Optionee’s death. In no event may the Option be exercised more than 10 years from the date
of grant. If the Option was granted less than six months prior to death, such Option shall
be forfeited as of the date of death.
	 
	 	(b)	 	If the Optionee is separated due to his or her disability, as defined in Section 22(e)(3)
of the Internal Revenue Code of 1986, as amended (the “Code”), the Option, if granted at
least six months prior to such separation and the Optionee provides Nordstrom Leadership
Benefits with reasonable documentation of the Optionee’s disability, shall immediately vest
and may be exercised during the period ending four years after separation. In no event may
the Option be exercised more than 10 years from the date of grant. If the Option was granted
less than six months prior to separation due to the Optionee’s disability, such Option shall
be forfeited as of the date of separation.

1 | Nonqualified Stock Option Grant Agreement Time-Vested Option

 

 

	 	(c)	 	If the Optionee is separated due to retirement between the ages of 53 and 57 with 10
continuous years of service to the Company from the most recent hire date, or upon attaining
age 58, the Option, if granted at least six months prior to such retirement, shall continue
to vest and may be exercised during the period ending four years after separation. In no
event may the Option be exercised more than 10 years from the date of grant. If the Option
was granted less than six months prior to retirement, such Option shall be forfeited as of
the date of separation.
	 
	 	(d)	 	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 that harms the Company, such Option, to the extent not
exercised as of the date of termination, shall be forfeited as of that date.
	 
	 	(e)	 	If the Optionee is separated for any reason other than those set forth in subparagraphs
(a), (b), (c) and (d) above, the Optionee (or Optionee’s beneficiary) may exercise his or
her Option, to the extent vested as of the date of his or her separation, within 100 days
after separation. In no event may the Option be exercised more than 10 years from the date
of grant. Any unvested options will be forfeited as of the date of separation.

Notwithstanding anything above to the contrary, if at any time during the Optionee’s employment
with the Company, the Optionee directly or indirectly, either as an employee, employer,
consultant, agent, principal, partner, shareholder, corporate officer, 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
improperly uses any confidential or proprietary information of the Company, then the
post-separation vesting and exercise rights of the Option set forth above shall cease
immediately, and all outstanding vested and unvested portions of the Option shall be forfeited.

	6.	 	TERM OF OPTION
	 
	 	 	The Option may not be exercised more than 10 years from the date of grant of the Option, and the
vested portion of such Option may be exercised during such term only in accordance with the Plan
and the terms of the Option.
	 
	7.	 	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION
	 
	 	 	The number and kind of shares of Common Stock subject to the Option shall be appropriately
adjusted, pursuant to the Plan, along with a corresponding adjustment in the option price to
reflect any stock dividend, stock split, split-up, extraordinary dividend distribution, or any
combination or exchange of shares, however accomplished.
	 
	8.	 	ADDITIONAL OPTIONS
	 
	 	 	The Compensation Committee may or may not grant the Optionee additional Options in the future.
Nothing in this Option or any future grant should be construed as suggesting that additional
grants to the Optionee will be forthcoming.
	 
	9.	 	LEAVES OF ABSENCE
	 
	 	 	For purposes of the Option, the Optionee’s service does not terminate due to a military leave, a
medical leave or another bona fide leave of absence if the leave was approved by the Company in
writing and if continued crediting of service is required by the terms of the leave or by
applicable law. But, service terminates when the approved leave ends unless the Optionee
immediately returns to active work.
	 
	 	 	If the Optionee goes on a leave of absence approved by the Company, then the vesting schedule
specified in the Notice may be adjusted in accordance with the Company’s leave of absence policy
or the terms of the leave.
	 
	10.	 	TAX WITHHOLDING
	 
	 	 	In the event that the Company determines that it is required to withhold any tax as a result of
the exercise of the Option, the Optionee, as a condition to the exercise of their Option, shall
make arrangements satisfactory to the Company to enable it to satisfy all withholding
requirements.
	 
	11.	 	RIGHTS AS A SHAREHOLDER
	 
	 	 	Neither the Optionee nor the Optionee’s beneficiary or representative shall have any rights as a
shareholder with respect to any Common Stock subject to the Option, unless and until (i) the
Optionee or the Optionee’s beneficiary or representative becomes entitled to receive such Common
Stock by filing a notice of exercise and paying the option price pursuant to the Option, and (ii)
the Optionee or Optionee’s beneficiary or representative has satisfied any other requirement
imposed by applicable law or the Plan.
	 
	12.	 	NO RETENTION RIGHTS
	 
	 	 	Nothing in the Option or in the Plan shall give the Optionee the right to be retained by the
Company (or a subsidiary of the Company) as an employee or in any capacity. The Company and its
subsidiaries reserve the right to terminate the Optionee’s service at any time, with or without
cause.
	 
	13.	 	CLAWBACK POLICY
	 
	 	 	The Option, and for the avoidance of doubt, the proceeds (Common Stock or cash) received in
connection with the exercise of the Option or subsequent sale of such issued Common Stock, shall
be subject to the Clawback Policy adopted by the Company’s Board, which provides as follows:
	 
	 	 	To the extent permitted by law, if the Board, with the recommendation of the Compensation
Committee, determines that any bonus, equity award, equity equivalent award or other incentive
compensation has been awarded or received by a Section 16 executive officer of the Company, and
that:

	 	(a)	 	such compensation was based on the achievement of certain financial results that were
subsequently the subject of a material restatement of the Company’s financial statements
filed with the Securities and Exchange Commission,
	 
	 	(b)	 	the Section 16 executive officer engaged in grossly negligent or intentional misconduct
that caused or substantially caused the need for the material restatement, and
	 
	 	(c)	 	the amount or vesting of the bonus, equity award, equity equivalent or other incentive
compensation would have been less had the financial statements been correct,

then the Board shall recover from the Section 16 executive officer such compensation (in whole or
in part) as it deems appropriate under the circumstances.

In the event the Clawback Policy is deemed unenforceable with respect to the Option, or with
respect to the proceeds received in connection with the exercise of the Option or subsequent sale
of such issued Common Stock, then the Option grant subject to this Agreement shall be deemed
unenforceable due to lack of adequate consideration.

	14.	 	ENTIRE AGREEMENT
	 
	 	 	The Notice, this Agreement and the Plan constitute the entire contract between the parties hereto
with regard to the subject matter hereof. They supersede any other agreements, representations or
understandings (whether oral or written and whether express or implied) that relate to the
subject matter hereof.
	 
	 	 	This Agreement may not be modified or amended, except for a unilateral amendment by the Company
that does not materially adversely affect the rights of the Optionee under this Agreement. No
party to this

2 | Nonqualified Stock Option Grant Agreement Time-Vested Option

 

 

Agreement may unilaterally waive any provision hereof, except in writing. Any such modification,
amendment or waiver signed by, or binding upon, the Optionee, shall be valid and binding upon any
and all persons or entities who may, at any time, have or claim any rights under or pursuant to
this Agreement.

	15.	 	CHOICE OF LAW
	 
	 	 	This Agreement shall be governed by, and construed in accordance with, the laws of the State of
Washington, as such laws are applied to contracts entered into and performed in such State.
	 
	16.	 	SEVERABILITY
	 
	 	 	If any provision of this Agreement shall be invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not in any manner affect or render
invalid or unenforceable any other severable provision of this Agreement, and this Agreement
shall be carried out as if such invalid or unenforceable provision were not contained herein.
	 
	17.	 	CODE SECTION 409A
	 
	 	 	The Company reserves the right, to the extent the Company deems reasonable or necessary in its sole
discretion, to unilaterally amend or modify this Agreement as may be necessary to ensure that all
vesting or delivery of Common Stock provided under this Agreement is made in a manner that complies
with Section 409A of the Code, together with regulatory guidance issued thereunder.

3 | Nonqualified Stock Option Grant Agreement Time-Vested Option

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