THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Nordstrom, Inc. (JWN)

4/13/2006 Proxy Information

The following section describes, for the fiscal year ended January 28, 2006: (i) transactions in which the Company or any of its subsidiaries was a party, in which the amount involved exceeded $60,000 and in which a director, a director nominee, an executive officer or a security holder known to own more than five percent of the Company’s Common Stock had, or will have, a direct or indirect material interest, or (ii) certain business relationships that existed between the Company and directors or director nominees, or between the Company and entities affiliated with such directors or director nominees.

During the fiscal year ended January 28, 2006, the Company and JBW Aircraft Leasing Company, Inc. (“JBW”), of which John N. Nordstrom, retiring Director, Bruce A. Nordstrom, retiring Chairman, and D. Wayne Gittinger, retired Director, are the sole shareholders, leased their respective aircraft to each other. JBW leased its Challenger 601 aircraft to the Company under a Dry Lease at a rate of $2,700 per hour. The Company used JBW’s aircraft a total of 354 hours and paid JBW $941,490 pursuant to that lease. The Company leased its two aircrafts to JBW under Dry Leases at a rate of $2,700 per hour for the Company’s Challenger 601 and $2,700 per hour for the Company’s Challenger 300. JBW paid the Company $193,590 for 71.7 hours use during that period. The Dry Lease rates were based on a survey of available lease/charter rates from third parties. The Company believes these arrangements were favorable to the Company, inasmuch as its use of JBW’s aircraft involved no capital investment by the Company.

JBW and its owners paid the Company $209,660 for maintenance services, pilot services, management fees and hangar rent during the fiscal year ended January 28, 2006. These payments exceeded the cost to the Company of providing those services and were based on a survey of similar services and rates available from independent third parties. These rates were increased in January 2006 based upon an updated survey of rates for maintenance services, pilot services, management fees and hangar rent available from independent third parties. In the Company’s opinion, the charges were fair and beneficial to the Company in that the Company was able to employ an additional full-time mechanic and the Company had access to an additional aircraft for business use, when needed.

During the fiscal year ended January 28, 2006, JBW began negotiations for the purchase a new Challenger 604 aircraft from Bombardier Inc. The Company had been considering a replacement of one of its own aircraft that is approximately 18 years old, and it took advantage of JBW’s purchase to evaluate whether the Company could benefit by purchasing its aircraft from Bombardier at the same time as JBW. In January 2006 the Company and JBW each entered into agreements to purchase a Challenger 604 aircraft from Bombardier Inc. Although they were separate transactions, Bombardier gave the Company and JBW discounts and credits that would normally be afforded to a buyer of multiple aircrafts. Those included identical discounts on the aircraft as well as credits for future purchases of aircraft parts and services. The Company believes that this benefited the Company by providing it with discounts and benefits that would not have otherwise been available to the Company.

During the fiscal year ended January 28, 2006, JW Limited, of which John N. Nordstrom is the sole shareholder, paid the Company $48,511 for maintenance services, management fees and hangar rent. These payments equaled or exceeded the actual cost to the Company of providing those services. These rates were subsequently increased in January 2006 to reflect current survey information gathered by the Company about cost and rates for these services from independent third parties.

Tonja M. Kuntz, the wife of Llynn (Len) Kuntz, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $401,958.

Steven M. Mackie, the son of David L. Mackie, a Vice President and the Corporate Secretary of the Company, was employed by the Company as an assistant shoe buyer during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $60,303.

Sharolyn D. Mays, the sister-in-law of Laurie M. Black, an Executive Vice President of the Company, was employed by the Company as an assistant women’s specialized buyer during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $79,644.

James (Jamie) F. Nordstrom, Jr., the nephew of John N. Nordstrom, a retiring Director, was employed by the Company as an Executive Vice President and President Nordstrom Direct during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $475,827.

Lisa S. O’Neal, the wife of James R. O’Neal, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $240,741.

Tanya L. Toschi, the sister of Linda Finn, an Executive Vice President of the Company, was employed by the Company as a marketing manager during the fiscal year ended January 28, 2006 at a base salary and cash bonus totaling $74,649.

The Company furnishes secretarial services and office space to a former Director and Co-Chairman of the Board.

Blake W. Nordstrom is the brother of Erik B. and Peter E. Nordstrom and second cousin of James F. Nordstrom, Jr., all Executive Vice Presidents of the Company; son of Bruce A. Nordstrom, a Director and Officer of the Company; and first cousin once removed of John N. Nordstrom, a Director of the Company.

4/18/2005 Proxy Information

During the fiscal year ended January 29, 2005, the Company and JBW Aircraft Leasing Company, Inc. (“JBW”), of which John N. Nordstrom, Director, Bruce A. Nordstrom, Chairman, and D. Wayne Gittinger, retiring Director, are the sole shareholders, operated under a Dry Lease, pursuant to which JBW leased its aircraft to the Company at a lease rate of $2,700 per hour. The Company used JBW’s aircraft a total of 245 hours and paid JBW $661,316 pursuant to that lease. The Company also operated under Dry Leases with JBW on the Company’s aircraft ($2,700 per hour for the Company’s Challenger and $1,400 per hour for the Company’s Lear), under which JBW paid the Company during this period the sum of $133,900 for 59 hours use. The Company sold the Lear on May 13, 2004, at which time the Company terminated the Dry Lease with JBW for that aircraft. The rate of these payments was based on a survey of available lease/charter rates from third parties. The Company believes these arrangements were favorable to the Company, inasmuch as its use of JBW’s aircraft involved no capital investment by the Company.

JBW paid the Company $164,999 for maintenance services, pilot services, management fees and hangar rent. These payments exceeded the cost to the Company of providing those services and were based on a survey of similar services and rates available from independent third parties. In the Company’s opinion, the charges were fair and beneficial to the Company in that the Company was able to employ an additional full-time mechanic and the Company had access to an additional aircraft for business use, when needed.

During the fiscal year ended January 29, 2005, JW Limited, of which John N. Nordstrom and D. Wayne Gittinger were the sole shareholders until June 15, 2004 when Mr. Gittinger sold his interest in JW Limited to John N. Nordstrom, paid the Company $29,135 for maintenance services, management fees and hangar rent. In addition, John N. Nordstrom paid the Company $12,959 for maintenance services, management fees and hangar rent for his personal aircraft. These payments equaled or exceeded the cost to the Company of providing those services and the rates therefor were based upon a survey of the cost and rates for services from independent third parties.

Marisa A. Arbanas, the stepdaughter of Jammie Baugh, an Executive Vice President of the Company, was employed as a product merchandiser in the Company’s product development group during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $100,048.

Tonja M. Kuntz, the wife of Llynn (Len) Kuntz, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $328,137.

Steven M. Mackie, the son of David L. Mackie, a Vice President and the Corporate Secretary of the Company, was employed by the Company as an assistant shoe buyer during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $60,606.

Sharolyn D. Mays, the sister-in-law of Laurie M. Black, an Executive Vice President of the Company, was employed by the Company as a women’s specialized buyer during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $114,432.

James F. Nordstrom, Jr., the nephew of John N. Nordstrom, a Director, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $279,583.

Lisa S. O’Neal, the wife of James R. O’Neal, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $311,371.

Tanya L. Toschi, the sister of Linda Finn, an Executive Vice President of the Company, was employed by the Company as a media planning manager during the fiscal year ended January 29, 2005 at a base salary and cash bonus totaling $102,933.

The Company furnishes secretarial services and office space to a former director and Co-Chairman of the Board.

4/15/2004 Proxy Information

Bruce A. Nordstrom is a brother-in-law of D. Wayne Gittinger and a cousin of John N. Nordstrom. Bruce A. Nordstrom's sons are Blake W. Nordstrom, the President of the Company, and Erik B. Nordstrom and Peter E. Nordstrom, each of whom is an Executive Vice President of the Company.

D. Wayne Gittinger is a shareholder in a corporation that is a partner in the law firm of Lane Powell Spears Lubersky LLP, which rendered legal services to the Company during the fiscal year ended January 31, 2004.

During the fiscal year ended January 31, 2004, JW Limited, of which John N. Nordstrom, Director, and D. Wayne Gittinger, Director, are the sole shareholders, paid the Company $33,380 for maintenance services, management fees and hangar rent. In addition, John N. Nordstrom paid the Company $19,097 for maintenance services, management fees and hangar rent for his personal aircraft. These payments equaled or exceeded the cost to the Company of providing those services and the rates therefor were based upon a survey of the cost and rates for services from independent third parties.

For the period February 1, 2003 through August 31, 2003, the Company and JBW Aircraft Leasing Company, Inc. (“JBW”), of which John N. Nordstrom, Director, Bruce A. Nordstrom, Chairman, and D. Wayne Gittinger, Director, are the sole shareholders, operated under Interchange Agreements pursuant to which the Company made aircraft available for occasional use by JBW in exchange for the Company’s use of JBW’s airplane. During that time period, the Company’s use of JBW’s aircraft was substantial and JBW’s use of the Company’s aircraft was minimal to the end that the Interchange Agreements were terminated effective September 1, 2003, and the Company paid JBW a net amount of $162,787 representing the excess use of JBW’s aircraft by the Company for that time period. The rate of payment for the excess use ($2,700 per hour) was based on an evaluation of the alternatives available to the Company for chartering this type of aircraft from third-party charter services. These payments were fair and reasonable and as favorable to the Company as those which could have been obtained from such third-party services. Following termination of the Interchange Agreements and for the period September 1, 2003 through the fiscal year ending January 31, 2004, JBW and the Company entered into a Dry Lease pursuant to which JBW leased its aircraft to the Company at a lease rate of $2,700 per hour. Pursuant thereto, the Company used JBW’s aircraft a total of 116 hours and in consideration thereof, paid JBW $318,132 pursuant to that lease. The Company also entered into Dry Leases with JBW on the Company’s aircraft ($2,700 per hour for the Company’s Challenger and $1,400 per hour for the Company’s Lear), pursuant to which JBW paid the Company during said period the sum of $18,200 for 13 hours use. The rate of these payments was based on a survey of available lease/ charter rates from third parties. The Company believes these arrangements were favorable to the Company, inasmuch as its use of JBW’s aircraft involved no capital investment by the Company.

For the fiscal year ended January 31, 2004, JBW paid the Company $193,923 for maintenance services, pilot services, management fees and hangar rent. These payments exceeded the cost to the Company of providing those services and were based on a survey of similar services and rates therefor available from independent third parties. In the Company’s opinion, the charges were fair and beneficial to the Company in that the Company was able to employ an additional full-time mechanic and the Company had access to an additional aircraft for business use, when needed.

Marisa A. Arbanas, the stepdaughter of Jammie Baugh, an Executive Vice President of the Company, was employed in the Company’s product development group during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $84,598.

Sharolyn D. Mays, the sister-in-law of Laurie M. Black, an Executive Vice President of the Company, was employed by the Company as a women’s specialized buyer during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $102,902.

Tanya L. Toschi, the sister of Linda Finn, an Executive Vice President of the Company, was employed by the Company as a media planning manager during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $98,153.

Tonja M. Kuntz, the wife of Llynn (Len) Kuntz, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $357,052.

James F. Nordstrom, Jr., the nephew of John N. Nordstrom, a Director, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $204,353.

Lisa S. O’Neal, the wife of James R. O’Neal, an Executive Vice President of the Company, was employed by the Company as a corporate merchandise manager during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $250,342.

John W. Stinson, the brother of Joel T. Stinson, an Executive Vice President of the Company who retired in March 2003, was employed by the Company in the facilities group during the fiscal year ended January 31, 2004 at a base salary and cash bonus totaling $168,949.

4/17/2003 Proxy Information

D. Wayne Gittinger is a shareholder in a corporation that is a partner in the law firm of Lane Powell Spears Lubersky LLP, which rendered legal services to the Company during the fiscal year ended January 31, 2003.

Bruce A. Nordstrom is a brother-in-law of D. Wayne Gittinger and a cousin of John N. Nordstrom. Mr. Bruce A. Nordstrom’s sons are Blake W. Nordstrom, the President of the Company, and Erik B. Nordstrom and Peter E. Nordstrom, each of whom is an Executive Vice President of the Company.

During the fiscal year ended January 31, 2003 the Company and JBW Aircraft Leasing Company, Inc. (“JBW”), of which John N. Nordstrom, Director, Bruce A. Nordstrom, Chairman, and D. Wayne Gittinger, Director, are the sole shareholders, operated under Interchange Agreements pursuant to which the Company made aircraft available for occasional use by JBW in exchange for the Company’s use of JBW’s airplane. During the fiscal year ended January 31, 2003 the Company made payments to JBW for use of its aircraft in the amount of $435,137. The rate of these payments was based on an evaluation of the alternatives available to the Company for chartering this type of aircraft from third-party charter services. These payments were fair and reasonable and as favorable to the Company as those which could have been obtained from such third party services. During the same period, JBW and its shareholders paid the Company $137,885 for maintenance services, pilot services and hangar rent. These payments equaled or exceeded the cost to the Company of providing those services and, in the Company’s opinion, were fair and reasonable. This arrangement also allowed the Company to employ an additional full-time mechanic and provided the Company with access to an additional aircraft for business use.

During the fiscal year ended January 31, 2003 JW Limited, of which John N. Nordstrom, Director, and D. Wayne Gittinger, Director, are the sole shareholders, paid the Company $21,863 for maintenance services and hangar rent. In addition, John N. Nordstrom paid the Company approximately $24,130 for maintenance services and hangar rent for his personal aircraft. These payments equaled or exceeded the cost to the Company of providing those services and, in the Company’s opinion, were fair and reasonable. On June 15, 1999, Geevy S.K. Thomas, an Executive Vice President of the Company, executed a promissory note in favor of the Company evidencing a loan in the original amount of $150,000 (with interest at the rate of 7.75%) to facilitate his relocation from California to Washington. The maximum amount of indebtedness during the fiscal year ended January 31, 2003 was $70,044. During the fiscal year ended January 31, 2003 the amounts owing under the note were discharged by the Company.

On June 15, 1999, Llynn (Len) A. Kuntz, an Executive Vice President of the Company, executed a promissory note in favor of the Company evidencing a loan in the original amount of $150,000 (with interest at the rate of 7.75%) to facilitate his relocation from Virginia to Washington. The maximum amount of indebtedness during the fiscal year ended January 31, 2003 was $70,044. During the fiscal year ended January 31, 2003 the amounts owing under the note were discharged by the Company.

The Company employed the wife of Mr. Kuntz during the fiscal year ended January 31, 2003 at a total salary and bonus of $243,034.

The Company employed the stepdaughter of Jammie Baugh, an Executive Vice President of the Company, during the fiscal year ended January 31, 2003 at a total salary and bonus of $79,080.

The Company employed the sister-in-law of Laurie M. Black, an Executive Vice President of the Company, during the fiscal year ended January 31, 2003 at a total salary and bonus of $91,118.

The Company employed the daughter-in-law of David L. Mackie, Vice President and Corporate Secretary, during the fiscal year ended January 31, 2003 at a total salary and bonus of $77,464.

Bruce A. Nordstrom’s son and Blake W. Nordstrom and Peter E. Nordstrom’s brother, Erik B. Nordstrom, an Executive Vice President of the Company, was employed by the Company during the fiscal year ended January 31, 2003 at a total salary and bonus of $609,016.

The Company employed the nephew of John N. Nordstrom, a Director, during the fiscal year ended January 31, 2003 at a total salary and bonus of $146,300.

The Company employed the wife of James R. O’Neal, an Executive Vice President of the Company, during the fiscal year ended January 31, 2003 at a total salary and bonus of $171,875.

The Company employed the brother of Joel T. Stinson, an Executive Vice President of the Company, during the fiscal year ended January 31, 2003 at a total salary and bonus of $152,717.