<page> NORDSTROM, INC. 2004 EQUITY INCENTIVE PLAN NOTICE OF RESTRICTED STOCK AWARD You have been awarded restricted shares of Common Stock of Nordstrom, Inc. (the "Company") on the following terms: Name of Recipient: Paul F. Favaro Total Number of Shares Awarded: 5,000 Fair Market Value per Share: $48.88 Total Fair Market Value of Award: $244,400 Date of Award: February 1, 2005 Restriction: The shares will vest and become issuable in five equal annual installments commencing on the first anniversary of the date of award. By your signature and the signature of the Company's representative below, you and the Company agree that these shares are awarded under and governed by the terms and conditions of the 2004 Equity Incentive Plan (the "Plan") and the Restricted Stock Agreement, both of which are attached to and made a part of this document. RECIPIENT: NORDSTROM, INC. /s/ Paul F. Favaro By: /s/ David L. Mackie - ----------------------------------- ----------------------------------- Paul F. Favaro Vice President and Corporate Secretary <page> NORDSTROM, INC. 2004 EQUITY INCENTIVE PLAN RESTRICTED STOCK AGREEMENT Payment for Shares No payment is required for the shares you receive. Restriction The shares will vest and become issuable in five equal annual installments commencing on the first anniversary of the date of award. Taxation You are responsible for the payment of all federal, state and other applicable taxes upon the annual vesting and issuance of shares, pursuant to Article 14 of the 2004 Equity Incentive Plan. Applicable Law This Agreement will be interpreted and enforced under the laws of the State of Washington (without regard to their choice-of-law provisions). The Plan and The text of the 2004 Equity Incentive Plan is Other Agreements incorporated in this Agreement by reference. This Agreement, the attached Notice and the Plan constitute the entire understanding between you and the Company regarding this award. Any prior agreements, commitments or negotiations concerning this award are superseded. This Agreement may be amended only by another written agreement, signed by both parties BY SIGNING THE ATTACHED NOTICE, YOU AGREE TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.