Nordstrom Direct Procedures Manual ACCESSORIESJEWELRYGIFTS

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					Nordstrom Direct Procedures Manual
ACCESSORIES/JEWELRY/GIFTS                                              Table of Contents

SECTION 1 – INTRODUCTION
     Introduction
     Contacts
     Working With Nordstrom Direct

SECTION 2 – LEGAL DOCUMENTS
     Nordstrom Partnership Agreement
     Nordstrom Direct Purchase Order Terms and Conditions

SECTION 3 – FABRIC TESTING
     Fabric Testing
     Fabric Test Report and ID Requirement
     ITS Intertek Testing Services
     MTL Merchandise Testing Labs
     In House Test Request Form
     Minimum Performance Requirements


SECTION 4 – SAMPLING AND DEVELOPMENT
     Samples
     Sample Hangtag
     Photo Samples

SECTION 5 – QUALITY STANDARDS AND CONTROLS
     Inspection Process
     Vendor Claims
     Classification of Defective Merchandise

SECTION 6 – PACKAGING & LABELING REQUIREMENTS
     Polybags for Merchandise
     Barcode Stickers
     Unique Packaging
     Labeling Requirements
     Dept/Item/Style# Label
     Packaging Guidelines
            Jewelry Accessories
            Fine Jewelry Packaging Guidelines
            Wallets/Handbags/Totes/Backpacks
            Watches
            Sunglasses




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Nordstrom Direct Procedures Manual
ACCESSORIES/JEWELRY/GIFTS                                     Table of Contents (cont.)


SECTION 6 – PACKAGING & LABELING REQUIREMENTS (cont.)
           Gloves/Hats/Belts
           Pareos/Scarves/Wraps/Ponchos
           Hosiery/Socks/Slipper Socks
           Mens Ties
           Small Gifts
           Large Gifts
           Packaging Approval Process

SECTION 7 – PACKING & SHIPPING
     Shipping Cartons
     Packing Slips
     Packing, Sealing and Marking Cartons
     Shipping
     ASN – Advance Shipment Notification
     Routing
     Bills of Lading
     Purchase Order Verification
     Appendix A: Specifics on Shipping
     Appendix B: Glossary of Shipping

SECTION 8 – FINANCIAL
     Purchase Orders
     Invoices and Billing Information
     Non-compliance Offset Fees
     Example of Vendor Letter
     Example of Vendor History Reporting




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SECTION 1                                                                   INTRODUCTION

Introduction
Contacts
Working With Nordstrom Direct




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                                         Introduction to Our Procedures Manual

Nordstrom Inc. remains committed to the founding principles of providing customers with the best quality,
value, selection and service. The Nordstrom Direct Procedures Manual integrates all aspects required to
successfully meet customer needs and efficiently move products through the supply chain. To highlight
some of the essential elements required to achieve this goal, our manual details sampling requirements,
quality standards and controls, labeling, legal requirements, packing and shipping.

You, as our business partner, play an integral role in working with us to fulfill our mission. This manual
provides the foundation for us to build a successful partnership and to provide superior quality
merchandise to a rapidly growing segment of catalog and Internet consumers.




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                                                                                  Contacts

Vendor Compliance                                     Nordstrom Direct Traffic Dept.
Phone (206) 303-6118                                  Phone (319) 846-4000
Fax (206) 303-6129                                    Fax (319) 846-4208
1700 7th Ave                                          7700 18th Street SW
Suite 300                                             Cedar Rapids, IA 52404
Seattle, WA 98101


Nordstrom Direct Accounts Payable                     Technical Design
Phone 1-206-303-6110                                  Phone (206) 303-6000
E-mail DirectAP@nordstrom.com                         Fax (206) 303-6962
1700 7th Ave                                          1700 7th Ave
Suite 300                                             Suite 300
Seattle, WA 98101                                     Seattle, WA 98101


Nordstrom Inc. Accounts Payable
Phone 1-877-444-1313
E-mail Apresearch@nordstrom.com
P.O. Box 870
Seattle, WA 98111-0870




    E-mail addresses for all Nordstrom Direct employees follow the format of:
                       firstname.lastname@nordstrom.com




                                                  Working with Nordstrom Direct


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The compliance topics listed below summarize main requirements involved in doing business with
Nordstrom Direct.

    •   This document is only a summary and does not replace the Nordstrom Direct Procedures Manual.

Main Requirements
Internet Item Selection: All items chosen for any catalog titles are also offered for sale on the Internet
website: www.nordstrom.com .

Exclusive Catalog Styles: Styles selected for any catalog titles must not be sold to any other catalog.

Cooperative Advertising: All vendors doing business with Nordstrom Direct must contribute 3% of the
total cost of all purchases to advertising. This contribution ensures the quality of the presentation of all
merchandise, which is advertised nationwide. Advertising includes the vendor’s name listed in catalog or
Internet copy.

Customer Returns Due to Manufacturing Defects: All merchandise returned by customers with
manufacturing defects will be claimed back to the vendor. Defective merchandise will be returned to the
vendor when received back from the customer, even if it is after the “selling season.” This agreement is
intended to simplify the claims filing and resolution process and, most importantly, assists in resolving
claims in a fair way. Vendors are required to sign a Defective Claims Agreement upon doing business with
Nordstrom Direct.

Freight: All deliveries must be made by surface, through our approved carriers unless otherwise specified
by the buyer. Carrier listings may be found in the NORDSTOM.com Procedures Manual or located
on the Nordstrom website www.nordstromsupplier.com under: Compliance Manual/Routing
Guide/States. Shipment terms will be FOB, full paid freight, to the Nordstrom Direct Fulfillment Center
#808 in Cedar Rapids, Iowa.

Merchandise Back-Ups: Vendors must hold unconfirmed back-up orders equal to the initial buy
quantities. Approximately two to three weeks after a book drops, Inventory Managers will contact vendors
with the backup quantities needed. 100% back up is required four to six weeks from the time the backup
order is confirmed. Successful items may require quantities in addition to the original back-up order.

On-Time Delivery: Our commitment to customer service is dependent on the immediate availability of
merchandise when the customer calls. The increased shipping and handling costs, high return rates on
back-ordered items and general loss of credibility imply on-time delivery of all purchase orders is the
highest priority.

Sampling
Nordstrom Direct requires multiple samples of each item being featured in the catalog or on the Internet
site. All samples are considered a cost of doing business and are sent to Nordstrom Direct at the vendor’s
expense. The vendor is responsible for normal product development costs, which include:

    •   Samples for buyer’s meeting, fit samples or review samples, size run samples and photo samples.
    •   Base fabric testing and/or garment testing




                                          Working with Nordstrom Direct (cont.)

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Sampling continued
    •   Lab dips
    •   Fabric swatching
    •   Packaging and labeling
    •   Associated shipping costs

Vendors are required to provide product information and size specifications for all garments using the
Nordstrom Direct forms.

Quality
Nordstrom Direct is committed to offering the customer exceptional service, selection, quality and value.
Suppliers are ultimately responsible for product quality. Only first quality goods that meet Nordstrom
Direct performance specifications will be accepted. To ensure first quality merchandise is shipped to the
customer all styles are subject to an audit at the fulfillment center. Product is audited for the following:

    •   Packaging and labeling
    •   Fabric / Materials
    •   Measurements
    •   Sewing / Construction
    •   Dirt / Oil
    •   Color

If audit fails, Nordstrom Direct reserves the right to 100% inspect entire shipment at vendor’s expense. It
is in the vendor’s best interest to perform their own inspections, as our fulfillment center inspection is
costly. Current rates are $60.00 per man hour.

Vendor Compliance
Dept # / Item # / Style # Labeling: All accessories, jewelry or gift items must include a sticker, hangtag or
stamp directly on or attached to the item with the following information; Nordstrom Direct department #,
Nordstrom Direct item # and vendor style #. Please refer to the Packaging and Labeling section of this
manual for details on specific items being shipped. In addition to dept#/item#/style # labeling, all federally
mandated care, content or country origin information should be present.
Special Packaging: Most accessories, jewelry or gifts require additional packaging, including
presentation gift boxes and/or special shipping cartons. For additional details please review the Packing
and Shipping section of this manual.

Barcode Stickers: All merchandise must be shipped with an Avery Dennison barcode sticker placed on
the outer packaging of the item. Barcode stickers are ordered by the Nordstrom Direct buyer, but invoiced
to the vendor. Invoice terms are Net 30 days.

Advance Shipment Notification Forms (I.E. ASN): All vendors shipping merchandise to the Cedar
Rapids Fulfillment Center must fax an “ASN” within 24 hours of each shipment leaving the vendor’s
warehouse. A copy of the ASN is included in the Packing and Shipping Section of this manual.

All shipments received that do not conform to our compliance program are subject to offset fees. Refer to
our financial section of this manual for details.




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SECTION 2                                                     LEGAL DOCUMENTS

Nordstrom Partnership Agreement
Nordstrom Direct Purchase Order Terms and Conditions




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                 The Nordstrom Partnership                               Guidelines
At Nordstrom, we recognize that our success is based on the quality of our relationships with
customers, employees, manufacturers, agents, vendors and communities. To maintain the high
caliber of these relationships and to achieve our goal of always providing the best value product
in the most equitable manner, we have established standards for our business Partners. In
communicating these guidelines, we hope to identify potential Partners who share our
commitment to quality products, quality business principles and quality community relationships.

We will only engage business Partners who demonstrate a commitment to contribute to the
improvement of working conditions and strive to meet our requirements stated in the Nordstrom
Partnership Guidelines.

Legal Requirements
Nordstrom expects all of its business Partners (“Partners” as used in these Partnership Guidelines shall
include all agents, vendors, manufacturers, factories, suppliers, and subcontractors) to comply with the
applicable laws and regulations of the United States and those of the respective country of manufacture
or exportation. All products must be accurately labeled and clearly Identified as to their country of origin.
The language to be used for purposes of notice and interpreting the meaning of these guidelines shall be
English.

Forced Labor
Nordstrom will not conduct business with any Partner that uses involuntary labor of any kind; including
prison labor, indentured labor, or forced labor. Employees shall not be required to lodge “deposits” or
identity papers upon commencing employment with the company.

Child Labor
Partners will not employ anyone under the age of 15 and/or younger than the age for completing
compulsory education, or under minimum ages established by applicable law in the country of
manufacturer, if higher than the age of 15. Furthermore, Partners of any kind, will not expose anyone
under the age of 18 to situations in or outside the workplace that are hazardous, unsafe, or unhealthy and
will provide adequate protection from exposure to hazardous conditions or materials.

Harassment and Abuse
Nordstrom expects our Partners to treat every employee with respect and dignity. No employee will be
subject to any physical, sexual, psychological or verbal harassment or abuse. Partners will not use
monetary fines as a disciplinary practice. Furthermore, workers must be free to voice their concerns to
Nordstrom or Nordstrom appointed staff without fear of retaliation by factory management.

Wages and Benefits
Partners shall set wages, overtime pay and legally mandated benefits and allowances in compliance with
all applicable laws. Workers shall be paid at least the minimum legal wage or wage that meets local
industry standards, whichever is greater.


Nondiscrimination
Nordstrom firmly believes people are entitled to equal opportunity in employment. Although the company
recognizes cultural differences exist, Nordstrom will not pursue business relationships with Partners who
discriminate in employment, including hiring, salary, benefits, advancement, discipline, termination or
retirement on the basis of gender, race, religion, age, disability, sexual orientation, nationality, marital or
maternity status, work or personal affiliations, political opinion or social or ethnic origin.



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                   The Nordstrom Partnership                                Guidelines

Health and Safety
Nordstrom seeks Partners who provide written standards for safe and healthy work environments for their
workers, including adequate facilities and protections from exposure to hazardous conditions or materials.
These provisions must include safe and healthy conditions for dormitories and residential facilities, and
they must comply with local health and safety laws and standards.

Hours of Work/Overtime
While permitting flexibility in scheduling, we will identify local legal limits on work hours and seek Partners
who do not exceed them except for appropriately compensated overtime. While we favor Partners who
utilize less than 60 hours a week, we will not use Partners, who, on a regular basis, require in excess of
48 hours per week and 12 hours of overtime per week, or as permitted by applicable law, whichever is
lower.

Employees should be allowed one day off in seven.

Environment
Partners must demonstrate a regard for the environment, as well as the compliance with applicable
environmental laws. Further, Nordstrom actively seeks Partners who demonstrate a commitment to
progressive environmental practices and to preserving the earth’s resources.

U.S. Customs
Partners will comply with applicable U.S. Customs importing laws and, in particular, will establish and
maintain programs and documentation to support country of origin production verification, to avoid illegal
transshipping.

Documentation and Inspection
Nordstrom intends to monitor compliance with our Partnership Guidelines and to undertake on-site
inspections of Partners’ facilities. Partners will maintain on file all documentation necessary to
demonstrate compliance and will authorize Nordstrom and its designated agents (including third parties)
to engage in announced and unannounced monitoring activities to ensure compliance, including
confidential employee interview. Nordstrom will review and may terminate its relationships with any
Partner found to be in violation of the Partnership Guidelines.

Freedom of Association
Partners will respect workers rights to freedom of association and collective bargaining.

Subcontracting and Changes in Manufacturers, Factories or Suppliers
Partners will not utilize subcontractors for the production of Nordstrom products or components without
written approval and authorization from Nordstrom, and only after the subcontractor has agreed to comply
with the Partnership Guidelines. Partners will not change manufacturers, factories, subcontractors or
suppliers for the production of Nordstrom products without written approval and authorization from
Nordstrom and only after the new factory, subcontractor, or supplier has agreed in writing to comply with
the Partnership Guidelines.

Change of Control
Partners shall promptly notify Nordstrom in writing if the ownership of the Partner changes. The new
owners of Partner shall promptly agree to comply with the Partnership Guidelines.




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                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

The following terms and conditions are a part of each purchase order submitted by Nordstrom
Direct, Inc. (“Nordstrom Direct” or “Purchaser”), formerly known as Nordstrom.com, and are
binding upon Seller.

ACCEPTANCE BY SELLER IS LIMITED TO THE TERMS OF THE PURCHASE ORDER
AND THESE TERMS AND CONDITIONS. PURCHASER OBJECTS TO ANY DIFFERENT
OR ADDITIONAL TERMS IN SELLER’S ACCEPTANCE OR ANY OTHER DOCUMENT
OR FORM TRANSMITTED ON BEHALF OF SELLER, UNLESS PURCHASER’S
WRITTEN CONSENT IS FIRST OBTAINED. Purchaser’s objection to different or additional
terms shall not be waived by acceptance of any merchandise or by payment of any invoice.

1. Acceptance of a Nordstrom Direct purchase order, or performance of work in connection
therewith, or shipment of merchandise to Nordstrom Direct or any customer of Nordstrom
Direct, constitutes Seller’s agreement to all of the following: (i) the terms and conditions set
forth herein and in the Nordstrom Direct Procedures Manual, located on Purchaser’s website at
www.nordstromsupplier.com; (ii) the terms and conditions set forth in the Routing Guide,
located on Purchaser’s website at www.nordstromsupplier.com; (iii) for international
shipments for which Nordstrom, Inc. is the importer of record, including shipments through the
Nordstrom Product Group (“NPG”) division of Nordstrom, Inc., the terms and conditions set
forth in the NPG Supplier Procedures Manual and the Nordstrom International Packing and
Shipping Guide; and (iv) for purchase orders providing for shipment of merchandise directly to
Purchaser’s customers, the terms and conditions set forth in the Vendor Operations Specification
for the Nordstrom Direct Drop Ship Program (“Drop Ship Program”). For information
concerning the Drop Ship Program contact Nordstrom Direct Vendor Compliance at (206) 303-
6118. The provisions of these terms and conditions, the Nordstrom Direct Procedures Manual,
the Routing Guide, the Nordstrom International Packing and Shipping Guide, the NPG Supplier
Procedures Manual and the Drop Ship Program, may be modified by Purchaser at any time.
Such modifications will be posted on the Purchaser’s website or otherwise provided to Seller,
and shall be binding upon the parties from the date of such posting or provision to Seller.

2. Purchaser may utilize purchase orders in writing, by facsimile or by electronic transmission,
including the electronic data interchange system (“EDI”) in accordance with published industry
guidelines and the requirements of the Nordstrom Direct Procedures Manual. Verbal orders will
not be valid unless confirmed with a written or electronic purchase order. Purchaser will not
assume liability for any merchandise shipped to it or upon which work is commenced by Seller
prior to receipt by Seller of a duly authorized purchase order, except to the extent of any
authorized Production Commitment issued by Purchaser to Seller. Each party shall be
responsible for its own costs related to EDI systems and transmissions and shall maintain
security procedures sufficient to ensure that EDI transactions are authorized and protected
against improper access.
081800.0021/929913.5




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                        TERMS AND CONDITIONS OF PURCHASE ORDER

3. In the event Seller is unable to deliver any part or all of the merchandise called for by any
purchase order, Seller agrees to notify the Purchaser immediately. Such notice will not limit the
remedies available to Purchaser or the liability of Seller for nonperformance.

4. Purchaser or Purchaser’s agent may refuse delivery or return the merchandise F.O.B.
Purchaser’s dock for:

  a.     Shipments (i) made before the earliest ship date or “Not Before Date,” or after the cancel
         date or “Not After Date,” specified in the purchase order, or (ii) shipped prior to or after
         the “Delivery Date” specified in the purchase order, in either case without the prior
         approval of Purchaser, time being of the essence of each purchase order.
  b.     Shipments of less than or in excess of quantities ordered.
  c.     Merchandise which is not according to sample or which are not specified in the purchase
         order.
  d.     Merchandise which is not as represented or as warranted.
  e.     Shipments which are not in compliance with the applicable provisions of the Nordstrom
         Direct Procedures Manual, the Nordstrom International Packing and Shipping Guide, the
         Routing Guide, the NPG Supplier Procedures Manual and the Drop Ship Program,
         including without limitation all quality standards, transportation terms and conditions,
         packing instructions and invoicing instructions.
  f.     Merchandise which for any reason, except payment of applicable duties and tariffs, will
         not be cleared for entry by U.S. Customs.
  g.     Merchandise which is recalled for any reason.

5. All merchandise furnished under any purchase order shall be subject to inspection and testing
by representatives of Purchaser, its customers or agents, and may be rejected and returned to
Seller at Seller’s cost when found to be defective, or otherwise subject to return as set forth
above, at any time prior to resale, or at any time after resale if Purchaser’s customer is allowed a
refund or credit. If a shipment, or any portion of a shipment, is determined by sampling
procedures to include merchandise that is defective or otherwise subject to return as set forth
above, the entire shipment or portion may be rejected and returned to Seller at Seller’s cost. At
the option of Purchaser in its sole discretion, any returned merchandise or shipment shall be
subject to refund, repair or replacement by Seller, at Seller’s cost. Payments for merchandise
prior to inspection shall not constitute acceptance and Purchaser reserves the right to hold for
Seller or return to Seller, at Seller’s expense, any rejected merchandise.

6. Seller warrants that the merchandise shipped under any purchase order is fit and safe for the
use for which it was manufactured, that to the extent applicable the merchandise is capable of
accurately processing date and time data, and that said merchandise or the resale thereof by
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                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

Purchaser does not and will not violate any laws, regulations, orders or ordinances of the country
of origin or of the United States or any state or any agency or political subdivision thereof.

7. Seller warrants that it does not and will not in violation of applicable law, custom or practice
(a) discriminate in hiring on the basis of race, color, national origin, gender, religion or sexual
orientation, or (b) utilize child labor, prison labor or indentured or forced labor in the operation
of its business.

8. Seller warrants that the merchandise shipped under any purchase order, including packaging
and labeling: (a) was produced in strict compliance with all applicable laws, regulations, orders
and ordinances of the country of origin and of the United States and any state, or any agency or
political subdivision thereof, including without limitation any applicable environmental or
hazardous substance laws and regulations; (b) was produced in strict compliance with all
applicable requirements of the Federal Fair Labor Standards Act, as amended, and with all
applicable regulations and orders of the United States Department of Labor; (c) was produced in
strict compliance with all applicable requirements of the National Labor Relations Act and other
federal, state and local wage and hour and wage payment laws, and with all applicable
regulations and orders issued under any of the foregoing; (d) does not and will not infringe any
patent, trademark, trade name, copyright, trade secret or other similar right, or utilize any
manufacturing or administrative process that would infringe any such right; (e) is accurately
labeled and clearly identifies the country of origin; and (f) is labeled in accordance with and
complies in all respects with any and all applicable federal, state and local laws, regulations,
orders and ordinances, including without limitation any applicable rules of the Federal Trade
Commission, the Consumer Products Safety Commission and the Department of Health,
Education and Welfare, including care labeling requirements, and the requirements of each of the
following Acts to which it may be subject: The Federal Food, Drug and Cosmetic Act, the Wool
Products Labeling Act of 1939, the Fair Packaging and Labeling Act, the Fur Products Labeling
Act, the Textile Fiber Products Identification Act, the Federal Hazardous Substances Act and the
Flammable Fabrics Act.

9. Seller agrees to defend (with counsel acceptable to Purchaser), indemnify and save harmless
the Purchaser from any and all claims, suits, liabilities, damages, losses or expenses, including
attorneys’ fees, asserted against or incurred by Purchaser by reason of, or arising out of or
occurring in connection with (a) any breach or alleged breach of any of these terms and
conditions, the provisions of any purchase order, or the applicable provisions of the Nordstrom
Direct Procedures Manual, the Routing Guide, the Nordstrom International Packing and
Shipping Guide, the NPG Supplier Procedures Manual or the Drop Ship Program, or any
representations or warranties of Seller made herein or in any purchase order or otherwise, (b) any
act or omission of Seller, or the servants, agents or subcontractors of Seller, in the furnishing of
goods or in the performance of work under any purchase order, or (c) the possession or use of
Seller’s merchandise by customers of Purchaser or others. All indemnification obligations of
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                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

Seller hereunder shall survive termination or cancellation of any purchase order. Seller agrees
that Purchaser may maintain records of Seller’s compliance with the representations and
warranties of Seller made in any purchase order or otherwise and that Purchaser may at any time,
upon notice to Seller, undertake inspection of Seller’s facilities in order to determine such
compliance. Seller agrees to maintain insurance in full force and effect to fulfill Seller’s
indemnification obligations hereunder, and will furnish Purchaser with certificates of insurance
evidencing coverage for Commercial General Liability Insurance including Contractual and
Products Liability, on an occurrence basis, with at least $2,000,000 combined single limit per
occurrence, and in the aggregate, and including Vendor’s Endorsement naming Purchaser as an
additional insured. By requiring insurance herein, Purchaser does not represent that coverage
and limits will be adequate to protect Seller, and such coverage and limits shall not be deemed as
a limitation on Seller’s liability hereunder.

10. Seller represents and warrants that the prices and terms specified in any purchase order are
no less favorable to the purchaser than any prices or terms upon which Seller sells or offers to
sell to others goods substantially of the same kind as ordered by Purchaser. If at any time prior
to resale of the merchandise by Purchaser (other than to an affiliate), goods substantially of the
same kind as ordered by Purchaser are sold or offered for sale by Seller at lower prices or on
terms more favorable to a third party than those stated in the purchase order, the prices and terms
in the purchase order shall be automatically revised to equal the lowest prices and most favorable
terms at which Seller shall have sold or shall have offered such goods and payment shall be
made accordingly, or at the option of Purchaser, the merchandise may be returned to Seller, at
Seller’s cost, for a full refund of the purchase price. In the event Purchaser shall become entitled
to such lower prices Seller shall notify Purchaser of such lower prices, and if Purchaser shall
have made payment at any price in excess thereof, Seller shall promptly refund the difference in
price to the Purchaser. Seller agrees to meet any lower price offered by any competitor of Seller
for goods substantially of the same kind as ordered by Purchaser or accept cancellation of the
purchase order by Purchaser. Unless otherwise provided in the purchase order, prices for
domestic shipments include all charges for packaging, boxing, crating and freight, F. O. B.
destination, and prices for international shipments include all charges for packaging, boxing,
crating and inland freight, F. O. B. port of export.

11. Purchaser reserves the right to cancel all or any part of any purchase order which has not
actually been shipped by Seller in the event Purchaser’s business is interrupted because of
strikes, labor disturbances, lockout, riot, fire, act of God, or the public enemy, or any other cause,
whether like or unlike the foregoing, if beyond the reasonable efforts of the Purchaser to control.
Seller's timely performance under any purchase order shall not be excused or deemed to have
been made impracticable by reason of any delay or failure to perform by Seller or any agent,
subcontractor or supplier of Seller, caused by or related to any computer system incompatibility
or inability to accurately process date and time data.
081800.0021/929913.5




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                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

12. A waiver of or failure to perform any one or more of the conditions of any purchase order
shall not constitute a waiver of or an excuse for nonperformance as to any other part of these
terms and conditions or any purchase order.

13. All dating except “end of month” begins at the date on which the merchandise is received.
“End of month” terming for shipments received after the 25th of the month will be considered
next month’s business. Discount terms begin with the receipt of invoice or goods, whichever is
later.

14. In addition to any other remedies available to Purchaser, failure to comply with these terms
and conditions, the provisions of any purchase order, or the applicable provisions of the
Nordstrom Direct Procedures Manual, the Routing Guide, the Nordstrom International Packing
and Shipping Guide, the NPG Supplier Procedures Manual or the Drop Ship Program, will result
in offset charges and handling fees being charged to Seller. In any dispute under any purchase
order or these terms and conditions, whether or not litigation is commenced, the prevailing party
shall be entitled to its costs and expenses incurred, including reasonable attorneys’ fees. The
rights and remedies herein expressly provided shall be in addition to any other rights and
remedies given by law, including without limitation the right to recover all incidental and
consequential damages. All warranties, representations and guaranties made by Seller herein are
in addition to any and all express or implied warranties provided by law and shall survive
termination or cancellation of any purchase order.

15. All merchandise for which Nordstrom Direct is the Purchaser may be resold to Nordstrom,
Inc. or its affiliates. Seller acknowledges and agrees that all covenants, representations and
warranties of Seller hereunder, and all express and implied warranties with respect to such
merchandise, are also for the benefit of and extend to any affiliates of Purchaser or Nordstrom,
Inc. Seller agrees that Nordstrom, Inc., or any of its affiliates, shall be entitled to exercise any
rights of the Purchaser and to make any claims and return any merchandise directly to Seller
pursuant to the terms of any purchase order.

16. In the event of any proceeding, voluntary or involuntary, in bankruptcy or insolvency by or
against the Seller, including any proceeding under the United States bankruptcy laws, or any
bankruptcy, insolvency or receivership laws of any state or any foreign country, or any political
subdivision thereof or in the event of the appointment with or without Seller’s consent of a
receiver or an assignee for the benefit of creditors, Purchaser may, at its option, cancel any
purchase order as to any undelivered portion of the merchandise.

17. Seller agrees that it will not use any trademark, service mark or trade name owned or
controlled by or licensed to Purchaser or any of its affiliates, or used by Purchaser or its affiliates
in connection with any products, lines, departments or other goods or services of Purchaser or its
081800.0021/929913.5



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                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

affiliates, including but not limited to “Nordstrom,” “Nordstrom Rack,” “Nordstrom.com,”
Nordstrom Direct,” “Façonnable” and “Last Chance,” except in connection with merchandise
shipped to Purchaser in accordance with a valid purchase order. Seller agrees that all trademarks
and trade names of Purchaser belong to or are licensed to Purchaser and Seller will make no
claim of right to use or of ownership nor will Seller attempt to register any such trademark or
trade name. Seller agrees that merchandise rejected or returned for any reason pursuant to the
terms of any purchase order, whether or not such rejection is disputed by Seller, including but
not limited to merchandise rejected or returned due to shipment after the delivery date or cancel
date specified in the purchase order, will not be resold or otherwise distributed by Seller unless
all labels, tags, logos, monograms and other items or characteristics identifying Nordstrom,
Nordstrom Rack, Nordstrom.com, Nordstrom Direct, Façonnable, Last Chance, or any other
trademark, service mark or trade name owned or controlled by or licensed to Purchaser or its
affiliates, or used by Purchaser or its affiliates in connection with any products, lines,
departments or other goods or services of Purchaser or its affiliates, have first been removed.

18. Seller agrees that all merchandise shipped under any purchase order may be advertised and
sold by Purchaser (or any of Purchaser’s affiliates) at any retail facilities of Purchaser (or any of
Purchaser’s affiliates), or by means of catalogs, the Internet, or any other electronic or other
medium.

19. Each purchase order and the rights and obligations of the parties hereunder shall be
determined in accordance with the laws of the State of Washington and shall not be subject to or
governed by the U.N. Convention on Contracts for the International Sale of Goods. If litigation
arises under any purchase order or these terms and conditions, or as a consequence of any
transaction contemplated or resulting from this or either party’s performance or breach thereof,
jurisdiction and venue of such litigation shall be in the Superior Court for the State of
Washington for King County, or the United States District Court for the Western District of
Washington in Seattle, at the option of Purchaser, and Seller hereby consents to such jurisdiction
and venue. Any award or judgment of any of said courts may be entered and enforced in any
other domestic or foreign court of competent jurisdiction, and shall be awarded full faith and
credit.

20. No claim, action or demand arising out of the transactions under any purchase order may be
brought by Seller more than one year after the cause of action has accrued.

21. Seller hereby assigns to Purchaser all assignable warranty rights with respect to the
merchandise in each purchase order, including without limitation all rights of Seller under
warranties of any manufacturer of any of the merchandise or any part or component thereof.


081800.0021/929913.5



                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                   8
                                                 2/1/2005
                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

22. Each purchase order is enforceable by Purchaser directly against Seller, regardless of
whether the purchase order was submitted directly to Seller by Purchaser or was submitted to
Seller by another party on behalf of Purchaser. No such other party shall have any authority to
act for Purchaser, bind Purchaser to any agreements or modifications or otherwise act as agent
for Purchaser. Seller shall not assign or transfer any purchase order, or any interest therein,
without the prior written consent of Purchaser, and any attempted assignment made without such
consent shall be null and void.

Invoicing Instructions
All invoices must comply with the requirements of the applicable provisions of the Nordstrom
Direct Procedures Manual, the NPG Supplier Procedures Manual and the Drop Ship Program.
No payment will be made by Purchaser to Seller until Seller has completed and returned all
vendor setup forms required by Purchaser.

Transportation Terms and Conditions

A. Shipping mode specified in any purchase order must be adhered to exactly unless permission
to deviate is given by Purchaser’s Buyer, the Nordstrom Traffic Manager, or NPG Logistics, or if
there is a written agreement or exception signed by Purchaser on file.

B. Notwithstanding any agreement to pay freight or other transportation charges, delivery will
not be deemed complete and all risk of loss shall remain with Seller until the merchandise has
been actually received and accepted by Purchaser or Purchaser’s designated agent or customer.

C. All C.O.D. shipments will be refused.

D. For all domestic shipments:
 (i) Authorized carrier selection should be made from the Routing Guide. Any questions should
 be directed to the Regional Traffic Department.
 (ii) Orders shipped F.O.B. city of purchase or any specific city and/or state will be delivered
 free of charge to Purchaser’s consolidator and will be considered F.O.B. consolidator. Advance
 charges to the consolidation point will be at Seller’s expense. Orders shipped F.O.B. factory,
 or EX factory, will not be free of charge to Purchaser’s consolidator and freight charges will be
 the responsibility of the Purchaser from the shipper’s door. Orders shipped F.O.B. Purchaser’s
 distribution center will be delivered free of charge to Purchaser’s receiving facility and total
 freight charges will be at the Seller’s expense.
 (iii) In addition to any other remedies available to Purchaser, any deviation from the terms of
 the purchase order, the Routing Guide, or the Nordstrom Direct Procedures Manual, will result
 in Seller being charged offset charges for freight expenses, handling fees, storage fees and
081800.0021/929913.5




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts            9
                                                 2/1/2005
                                   NORDSTROM DIRECT
                        TERMS AND CONDITIONS OF PURCHASE ORDER

  other expenses incurred by Purchaser or Purchaser’s refusal agent, and may result in the sale of
  any rejected and unclaimed merchandise to a salvage agent for recoupment of expenses.
 (iv) Merchandise must be packed, shipped and described on bills of lading in accordance with
 applicable freight tariffs, and shipment must be without declared value EXCEPT when
 shipping U.S. Mail or Purchaser’s authorized small package carrier where the shipper declares
 value and also prepays for the carrier insurance coverage fees. Any deviations will result in
 offset charges and handling fees being charged to Seller.
 (v) Prepaid shipments: All shipments to Purchaser via air and surface carrier must be sent
 “Collect,” or “Consignee Billing,” except U.S. Mail shipments. Purchaser will not reimburse
 Seller for “prepaid” shipments.
  (vi) Shipping surface: Merchandise not authorized for air shipment must follow Purchaser’s
  shipping instructions for surface shipment. Seller is responsible for marking “surface” on the
  top of general bill of lading. An air bill which is used for surface shipment must have the
  special services requested box marked.

E. For all international shipments:
 (i) Authorized freight forwarder selection should be made from the NPG Supplier Procedures
 Manual. For all international shipping related questions, contact NPG Logistics. To receive a
 copy of the NPG Supplier Procedures Manual or the Nordstrom International Packing and
 Shipping Guide, contact NPG Quality Assurance.
 (ii) In addition to any other remedies available to Purchaser, any deviation from the terms of
 the purchase order, the Nordstrom Direct Procedures Manual, the Nordstrom International
 Packing and Shipping Guide or the NPG Supplier Procedures Manual, will result in Seller
 being charged offset charges for freight expenses, handling fees, storage fees and other
 expenses incurred by Purchaser. If a purchase order provides for shipment via ocean and Seller
 ships the merchandise via air in order to meet the delivery date, Seller shall reduce Purchaser’s
 first cost of the merchandise prior to shipment by an amount at least equal to the difference in
 the cost of shipment via air over the cost of shipment via ocean.
 (iii) The harmonized system (“HS”) number provided by Purchaser in any purchase order is
 advisory and is subject to change in accordance with the final determination by U.S. Customs
 at time of importation/liquidation of the style. Refer to the NPG Supplier Procedures Manual
 for additional information on the HS pre-classification program.
081800.0021/929913.5


Revised November ___, 2004




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts           10
                                                 2/1/2005
SECTION 3                                                  FABRIC TESTING
Fabric Testing
Fabric Test Report and ID Requirement
ITS Intertek Testing Services
MTL Merchandise Testing Labs
In House Test Request Form
Minimum Performance Requirements




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                                                                             Fabric Testing
Minimum Performance Requirements for Base Fabrications
In order to ensure that products will perform to customer expectations, we have developed the
following process:

Development Fabric, Component and Trim Testing – All base fabrics, components and trims
must meet our minimum performance standards. Vendors should not show buyers samples
without verifying satisfactory test results. A passing test report from the mill, a certified laboratory
or an independent lab must be provided upon adoption of the style.

IT IS THE RESPONSIBILITY OF THE VENDOR TO: Supply the test report to the buyer upon
adoption of the style. Please identify the style on the report with your submittal

If you cannot produce a satisfactory test report from the fabric mill or from an AATCC/ASTM
certified lab, you may submit 2 yards of fabric plus one yard for each additional colorway for
testing to one of the independent labs with whom Nordstrom Direct has a testing package:
     ITS - Intertek Testing Services
     70 Diamond Road
     Springfield, NJ 07081

    Contact: Levine Noss (levine.noss@intertek.com)
    TEL: (973) 924-2568
    FAX: (973) 379-5193

    MTL - Merchandise Testing Labs
    244 Liberty St
    Brockton, MA 02301

    Contact: Missy Strong (melissa.strong@usbureauvertas.com)
    TEL: (508) 897-2666
    FAX: (508) 580-2669

Nordstrom Product Group Quality Assurance Lab – We have limited testing capabilities
through NPG QA; but if prior approval is given, we will conduct testing in these facilities for small
programs or special styling. Please note the fee for NPG QA testing is $275.

IT IS THE RESPONSIBILITY OF THE VENDOR TO: Pay lab testing fees directly to the lab that
is providing the testing service. Please see fee schedule that follows this section.

Fabric Identification and Reference Standard – A fabric swatch, color standards and detailed
fabric specification must be submitted to the Product & Fit Specialist with a copy of the test report.

Production Fabric, Component and Trim Testing – Vendors are responsible to ensure that all
colors of production fabrics, components and trims meet or exceed our minimum performance
standards prior to cutting production. A copy of the test report must be submitted along with the
reference standard.

IT IS THE RESPONSIBILITY OF THE VENDOR TO: Supply the fabric ID form and swatches of
each colorway, trim and component to the Product & Fit Specialist.




                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                          1
                                             2/1/2005
                                                             Fabric Testing (cont.)
Fabric/Product Testing - Vendors must test all products in garment form to ensure compatibility
of components and verification of care instructions. Nordstrom Direct will randomly test products
to ensure performance.


Independent Laboratory Package Rates and Requirements
 Independent labs (ITS and MTL) require 2 yards of fabric OR a complete garment and one yard
of fabric. Additional colorways require only one yard of fabric. The Test Request Form must be
completed and submitted with each fabric for testing.

Rates are as follows:

Test Base Fabric, Knit down or Garment including:                          $120
       Fabric Weight
       Fabric Thread Count
       Yarn Size
       Flammability (16 CFR 1610)
       Dimensional Stability
       Colorfastness to Laundering or Dry Cleaning
       Colorfastness to Light
       Colorfastness to Crocking
       Colorfastness to Pool/Sea Water (swimwear)
       Appearance after Laundering

Additional Colorways are only tested for:                                     $65
       Dimensional Stability
       Colorfastness to Washing or Dry Cleaning
       Colorfastness to Light
       Colorfastness to Crocking

Leather Testing:                                                            $100
       Colorfastness to Light
       Colorfastness to Crocking
       Spewing
       Leather Hardware Compatibility

Socks and Hosiery Testing:                                                  $150
       Dimensional Stability
       Colorfastness to Washing or Dry Cleaning
       Colorfastness to Crocking
       Abrasion
       Appearance after Laundering




                 Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                  2
                                           2/1/2005
                                              Fabric Test Report and ID Requirement
                      Required Testing
                      Fabrics must meet all of the Minimum Performance Standards but testing will only be
                      required on the most critical areas affecting performance. Following are the required tests
                      for each product type:




                                                  Children’s     General      Leather &    Socks &
Fabric Qualities                                  Sleepwear      Apparel      Suede        Hosiery    Scarves   Swimwear
Fabric Weight                                          X             X                                              X
Fabric Thread Count                                    X            X
Yarn Size                                              X            X



Flammability
Flammability (16 CFR 1610)                                           X                                   X          X
Flammability (16 CFR 1614/1615)                        X

Dimensional Stability
Shrinkage/Spirality                                    X             X                            X                 X


Colorfastness
Colorfastness to Laundering or Dry Cleaning            X             X                            X                 X
Colorfastness to Light                                 X             X            X                                 X
Colorfastness to Crocking (dry/wet)                    X             X            X               X                 X
Color fastness to Pool/Seawater (swimwear)                                                                          X

Appearance
Appearance after Laundering or Dry Cleaning            X             X                            X                 X


Leather Tests
Spewing                                                                           X
Leather Hardware Compatibility                                                    X


Abrasion
Abrasion (Socks)                                                                                  X




                                 Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                 3
                                                           2/1/2005
                                      ITS - INTERTEK TESTING SERVICES
                                                        Nordstrom Direct
                                                 Fabric Test Request Form
 USA               TEL: 1-973-346-5500     FAX: 1-973-379-5232           HONG KONG        TEL: 852-2173-8888     FAX: 852-2785-7998
 CHINA (GUANGZHOU) TEL: 86-20-8396-6868    FAX: 86-20-8222-7490/8135     CHINA (SHANGHAI) TEL: 86-21-6485-0139 FAX: 86-21-6485-0592
 CHINA (TIANJIN)   TEL: 86-22-8371-2202    FAX: 86-22-8371-2205           INDIA (MUMBAI) TEL: 91-22-5597-6900 FAX: 91-22-5595-2630/37
 INDIA (NEW DELHI) TEL: 91-11-2631-9028    FAX: 91-11-2631-9512           INDIA (TIRUPUR) TEL: 91-421-223-2803/-6FAX: 91-421-223-2800
 INDONESIA         TEL: 62-21-391-8342     FAX: 62-21-391-8345           KOREA (FITI)     TEL: 82-2-3299-8021 FAX: 82-2-962-0679
 MAURITIUS         TEL: 230-698-0343       FAX: 230-697-5402             MEXICO           TEL: 52-55-5063-7190 FAX: 52-55-5211-5030
 PHILIPPINES       TEL: 63-2-819-5841/8    FAX: 63-2-817-2994             PORTUGAL        TEL: 351-22-999-8080 FAX: 351-22-999-8081
 S. AFRICA         TEL: 27-21-415-7000     FAX: 27-21-418-5127           SINGAPORE        TEL: 65-6388-8666      FAX: 65-6382-6268
 TAIWAN            TEL: 886-2-2597-9955    FAX: 886-2-2595-8645          THAILAND         TEL: 66-2-939-6554/0661 FAX: 66-2-939-0668
 TURKEY            TEL: 90-212-471-0065    FAX: 90-212-471-1172           UNITED KINGDOM TEL: 44-116-263-0330 FAX: 44-116-263-0311/2
 BANGLADESH        TEL: 88-02-8156226-28   FAX: 88-02-8156579-80         ITALY            TEL: 39-055-790873     FAX: 39-055-791198
BUYER INFO
Date Submitted:                                                        P.O. #:
Item #:                                                                Department #:
Buyer:                                                                 Season:
Manufacturer/Vendor:                                                   Rep / Agent:
Submitter and Address

SAMPLE:            Knit        Woven Coordinate                  Woven Top/Bottom                 Sweater           Other
Style Number:                                         Country of Origin:
Sample Description:                                                                    Size:
End Use (Pant, Jacket, Lining etc.):
Fabric Type (Knit, Woven, Jersey, Twill etc.):
Construction (20/1’s; 152 x 64 etc.):                                 Fabric Weight:
Colors/Prints:
Print/Dye Type:      Pigment         Sulfur    Indigo    Reactive     Other___________________
Finish: Enzyme Wash          Silicone Wash       Water repellent     Wrinkle Resistant
   Napped/Brushed/Sanded/Sueded            Compacted/Sanforized    Other__________________
Labeled Fiber Content:
Care Label:
TEST REQUIRED                        NPS#___________________
    Complete Nordstrom Direct Package
    Fabric Weight
    Flammability
    Colorfastness to Laundering
    Colorfastness to Light
    Colorfastness to Crocking
    Appearance After Laundering
    Verify Care Instructions
    Re-Test_________________________ Previous Report #______________________________
Additional Information:_______________________________________________________________
_________________________________________________________________________________
BILLING INFORMATION
Bill to Company:                                                       Contact Person:
Address:                                                               Phone:
                                                                       Fax:
                                                                       E-mail:
                                                                       LAB USE ONLY
CLIENT REFERENCE NO.:                                                  AWB NO.                         LAB NO.
TESTING APPROVED BY:                                                   RTN DATE                        DATE IN
                                                                       BOX NO.                         DATE DUE
AUTHORIZED
SIGNATURE WITH CHOP:                                                    FORM NO._____________________
                                                                                                                                        4
                                 Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                           2/1/2005
                                   MTL - MERCHANDISE TESTING LABS
                                                   Nordstrom Direct
                                             Fabric Test Request Form
   USA TEL: 508-580-8353 FAX : 508-580-2669                    HONG KONG TEL: 852-2-494-1222 FAX: 852-2-480-6666
   TAIWAN TEL: 886-2-893-6903 FAX: 886-2-895-9209              SINGAPORE TEL: 65-286-8366 FAX: 65-283-8966
   PHILIPPINES TEL: 632-824-2825 FAX: 632-824-1430             CHINA TEL: 86-216-489-0245 FAX: 86-216-489-0042
   SRI LANKA TEL: 94-173-9846 FAX: 94-173-9548                 INDONESIA TEL: 6221-563-8320 FAX: 6221-563-8322
   JAPAN TEL: 81-3-3241-7319 FAX: 81-3-3245-0773               ENGLAND TEL: 44-133-238-2122 FAX: 44-133-236-3700
   ITALY (ICQ) TEL: 39-31-768-403 FAX: 39-31-756-106           KOREA (KOTITI) TEL: 822-567-7591 FAX: 822-557-3739
   INDIA TEL: 91-11-915-44661 FAX: 91-11-915-44670             MEXICO TEL: 52-2266-0560-2 FAX: 52-2266-0563
   BUYER INFO
Date Submitted:                                             P.O. #:
Item #:                                                     Department #:
Buyer:                                                      Season:
Manufacturer/Vendor:                                        Rep / Agent:
Submitter and Address

SAMPLE:           Knit       Woven Coordinate            Woven Top/Bottom              Sweater         Other
Style Number:                                            Country of Origin:
Sample Description:                                                                               Size:
End Use (Pant, Jacket, Lining etc.):
Fabric Type (Knit, Woven, Jersey, Twill etc.):
Construction (20/1’s; 152 x 64 etc.):                                         Fabric Weight:
Colors/Prints:
Print/Dye Type:      Pigment         Sulfur    Indigo    Reactive            Other___________________
Finish: Enzyme Wash          Silicone Wash       Water repellent            Wrinkle Resistant
   Napped/Brushed/Sanded/Sueded            Compacted/Sanforized            Other__________________
Labeled Fiber Content:
Care Label:
TEST REQUIRED                        NPS#___________________
    Complete Nordstrom Direct Package
    Fabric Weight
    Flammability
    Colorfastness to Laundering
    Colorfastness to Light
    Colorfastness to Crocking
    Appearance After Laundering
    Verify Care Instructions
    Re-Test_________________________ Previous Report #______________________________
Additional Information:_______________________________________________________________
_________________________________________________________________________________
BILLING INFORMATION
Bill to Company:                                            Contact Person:
Address:                                                    Phone:
                                                            Fax:
                                                            E-mail:
                                                            LAB USE ONLY
CLIENT REFERENCE NO.:                                       AWB NO.                        LAB NO.
TESTING APPROVED BY:                                        RTN DATE                       DATE IN
                                                            BOX NO.                        DATE DUE
AUTHORIZED
SIGNATURE WITH CHOP:                                          FORM NO._____________________
                                                                                                                    5
                                Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                          2/1/2005
                               NORDSTROM DIRECT
                       IN HOUSE TEST REQUEST FORM • TEST NO. DSD________
Date In:                    Date Due:                      Time:
Date Out:                                                  QA Engineer:
PRODUCTION INFORMATION
Nordstrom Direct Contact:                                  P.O. No.:                    Dept. No.
Phone No.:                                                 Ship Date:
Catalog Name:                                              Catalog In-Home Date:
Manufacturer/Vendor:
SAMPLE SUBMITTED:                  Knit          Woven        Sweater         Other
Style Number:                                            Country of Origin:
Sample Description:
Fabric Type (Jersey, Twill, etc.):
End Use (Shirt, Pants, etc.):
Construction (20/1’s; 152 x 64 etc.):                                   Fabric Weight:
Colors/Prints:                                           Actual Production Color: Yes No
Print/Dye Type: Pigment        Sulfur   Indigo    Reactive    Other:
Finish:
Enzyme Wash       Silicone Wash                    Napped/Brushed/Sanded/Sueded
Water Repellent Wrinkle Resistant                  Compacted/Sanforized Other:
Labeled Fiber Content:
CARE INSTRUCTIONS: Number of Cycles

TEST REQUIRED: NPS No.:
Fabric Testing Package                                     Garment Testing Package
Fabric Weight                                             Dimensional Stability
Thread Count (Warp x Fill)                                Colorfastness to Laundering or Dry Cleaning
Yarn Count (Size & Ply)                                   Colorfastness to Crocking (wet & Dry)
Construction (Type of Weave/Knit)
Dimensional Stability
Colorfastness to Laundering or Dry Cleaning
Colorfastness to Crocking (wet & Dry)
Verify Care Instructions
Additional Colors                                           Re-Test -Previous Report No.:
Dimensional Stability                                       Other (specify Test):
Colorfastness to Laundering or Dry Cleaning
Colorfastness to Crocking (Wet & Dry)

 Additional Information:




                                                                                                        6
                             Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                       2/1/2005
                                  Minimum Performance Requirements

The following performance specifications are available please contact your Product and Fit
Specialist for the complete standard.


    NPS-26          Hats                   Leather, Suede, Straw and all other fibers
    NPS-27          Handbags               Leather, Suede, Metal and all other fibers
    NPS-28          Scarves                All Fibers, Knit and Woven
    NPS-29          Gloves                 Leather, Suede and all other fibers
    NPS-30          Belts                  Leather, Suede, Metal and all other fibers
    NPS - 31        Accessories            Plush Toys
                                                       SAMPLING AND PRODUCT
SECTION 4                                                      DEVELOPMENT

Samples
Sample Hangtag
Photo Samples




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                                                                                                  Samples
Required Samples
The vendor is required to provide the samples listed below:
• Meeting samples
• Photo samples

Note: Samples are not interchangeable. Each type of sample serves a specific purpose and is used by
various departments. Please work directly with your Merchandise Buyer to coordinate dates and
timelines for the various samples.

Required Sample Accompaniments
In addition to the above samples, the vendor also needs to supply the following (see specific sections in
this manual for more information on the following):
• Nordstrom Direct Sample Hangtags (for Meeting Sample, Photo or Packaging Approval samples)
• Completed Set-up Prep Form (for all new styles and for existing styles where changes have
     occurred (i.e. country of origin or fabric content). Administrative support staff will e-mail or fax you a
     copy of this form.
• Base Fabric test report with first sample

All samples must be clearly marked what sample is to be used for.

Cost of Sampling
All samples are considered a cost of doing business and will be furnished and sent to Nordstrom Direct at
the vendor’s expense.

Sending of Meeting Samples
Merchandise buyers will request samples from you via a sample request form. At the time of request, the
buyer will specify style, color, size and due dates for your planning purposes.

Please keep the following points in mind when sending meeting samples to our office:
        • All samples must be tagged with the vendor’s name, address, phone number, style number
           and cost.
        • All samples must be accompanied by a completed buyer’s sample request form.
        • Nordstrom Direct should not be invoiced for any samples that are selected for catalog or
           Internet sales.
        • Samples not selected will be returned to the vendor at the vendor’s expense. Note: Vendor
           samples not accompanied with the required shipper number will not be returned.
        • Send meeting samples to: (Name of Buyer)
                                         Nordstrom Direct
                                         1700 7th Ave, Suite 300
                                         Seattle, WA 98101
        • Mark shipping box with “URGENT MEETING SAMPLE”
        • Shipping box can differ from the required box sizes for bulk shipments.

Important Note: Any fabric, fabric finish, color, findings, style details or construction that are different
from your planned production must be noted on sample hangtag.




                     Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                         1
                                                   2/1/2005
                                                                                Sample Hangtag
Tagging of Samples
To help expedite the approval process, it is critical that all Photo samples, Fit Samples and Meeting
Samples be tagged with the Nordstrom Direct Hangtag as shown below. Please copy this blank tag onto
hard card stock paper and attach to the samples listed above. A sheet of four tags can be found on
the next page for ease and efficiency in recreating this tag. The top portion of the tag must be
clearly and completely filled out by the vendor and the purpose of the sample (i.e. photo) must be
checked off so that the sample arrives in the appropriate department.


Reminder
Any part of the sample that is not representative of bulk production must be noted on the upper portion of
the comment section.



                                       Nordstrom Direct


                   Vendor should complete all information in this section
                   Date                Photo      Packaging      Other,
                  Appro.     Meeting   Smpls   Approval Sample   Pls Specify
                   Box        Smpl      (2)


                  Vendor Name:

                  Vendor Style #:
                  Description:
                  Size:                           Size Range:
                  Buyer:
                  Comments:

                                 For Nordstrom Direct Use Only
                  Item#:                          Book/Season:
                  Macs Color Name:
                  Retail:
                  Dept./Class:

                  Catalog:
                  Vendor Number:
                  Date Received:
                  Comments:




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                                                   2/1/2005
                     Nordstrom Direct                                                        Nordstrom Direct


 Vendor should complete all information in this section                  Vendor should complete all information in this section
 Date                Photo   Packaging       Other,                   Date                   Photo    Packaging      Other,
Appro.     Meeting   Smpls    Approval       Please Specify          Appro.       Meeting    Smpls     Approval      Please Specify
 Box        Smpl      (2)     Sample                                  Box          Smpl       (2)      Sample


Vendor Name:                                                         Vendor Name:

Vendor Style #:                                                      Vendor Style #:
Description:                                                         Description:
Size:                        Size Range:                             Size:                            Size Range:
Buyer:                                                               Buyer:
Comments:                                                            Comments:

               For Nordstrom Direct Use Only                                          For Nordstrom Direct Use Only
Item#:                        Book/Season:                           Item#:                           Book/Season:
Macs Color Name:                                                     Macs Color Name:
Retail:                                                              Retail:
Dept./Class:                                                         Dept./Class:

Catalog:                                                             Catalog:
Vendor Number:                                                       Vendor Number:
Date Received:                                                       Date Received:
Comments:                                                            Comments:

                     Nordstrom Direct                                                        Nordstrom Direct


 Vendor should complete all information in this section                  Vendor should complete all information in this section
 Date                Photo   Packaging       Other,                       Date                Photo    Packaging      Other,
Appro.     Meeting   Smpls    Approval       Please Specify              Appro.    Meeting    Smpls     Approval      Please Specify
 Box        Smpl      (2)     Sample                                      Box       Smpl       (2)      Sample


Vendor Name:                                                         Vendor Name:
Vendor Style #:                                                      Vendor Style #:
Description:                                                         Description:
Size:                        Size Range:                             Size:                            Size Range:
Buyer:                                                               Buyer:
Comments:                                                            Comments:

               For Nordstrom Direct Use Only                                           For Nordstrom Direct Use Only
Item#:                        Book/Season:                           Item#:                            Book/Season:
Macs Color Name:                                                     Macs Color Name:
Retail:                                                              Retail:
Dept./Class:                                                         Dept./Class:
Catalog:                                                             Catalog:
Vendor Number:                                                       Vendor Number:
Date Received:                                                       Date Received:
Comments:                                                            Comments:



                             Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                                 3
                                                              2/1/2005
                                                                                     Photo Samples
Photo Sample Requirements

     Photo Samples must be made production quality

Please keep the following points in mind when sending photo samples to our office:
• The merchandise buyer will advise sample sizes, length adjustments needed and photo sample due
    dates.
• All photo samples must be tagged with a completed Nordstrom Direct Hangtag (an example of the
    hangtag can be found in this section of the manual.
• Photo samples are sent at the vendor’s expense. Nordstrom Direct should not be invoiced for
    samples.
• Send photo samples to:         (Name of Buyer)
                                 Nordstrom Direct
                                 1700 7th Ave., Suite 300
                                 Seattle, WA 98101
• Mark shipping box with “URGENT PHOTO SAMPLE”
• Shipping box can differ from the required box sizes for bulk shipments.
• Photo samples must be an exact representation of the bulk production to be received in our
    fulfillment center. Photo samples must be made of correct fabric, trim and color that match what will
    be used for bulk production.
• All photo samples must be accompanied by a completed Merchandise Set-up Prep Form (provided
    by administrative support staff).

Critical Point Regarding Color
If you know the color of the photo sample is incorrect attach a minimum 10” x 10” swatch to both photo
samples showing how you will ship bulk production. The color deviation must also be noted on the
hangtag. These swatches will allow us to color correct our photos to better represent bulk production.




                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                   4
                                                 2/1/2005
                                                               QUALITY STANDARDS
SECTION 5                                                      AND CONTROLS
Inspection Process
Vendor Claims
Classification of Defective Merchandise




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                                                                           Inspection Process


Vendor Administrated Quality Procedures
Vendors are responsible for shipping first quality merchandise. We suggest using an integrated total
quality program that includes:
    • Incoming materials inspection and testing
    • Statistical in-process auditing
    • Final 100% inspection
    • Final statistical auditing of each production lot after packaging
For the final audit, we suggest you use the Single Sample Plan Level II (normal), Acceptable Quality Level
4.0

                  Single Sample Plan
                        Level II
                        Normal
                         4.0 QL
                        Lot Size        Quantity to     Accept              Reject
                                         Inspect
                        2 to 8              2              0                  1
                       9 to 15              3              0                  1
                       16 to 25             5              0                  1
                       26 to 50             8              0                  1
                       51 to 90             13             1                  2
                      91 to 150             20             2                  3
                      151 to 280            32             3                  4
                      281 to 500            50             5                  6
                     501 to 1200            80             7                  8
                     1201 to 3200          125            10                 11
                    3201 to 10,000         200            14                 15
                   10,001 to 35,000        315            21                 22
                                        ANSI/ASQCZ1.4 - 1993

        For multiple piece sets, you can use a 2.5 AQL on each separate piece within the set.
                  Single Sample Plan
                        Level II
                        Normal
                        2.5AQL
                        Lot Size        Quantity to     Accept              Reject
                                         Inspect
                        2 to 8              2              0                  1
                       9 to 15              3              0                  1
                       16 to 25             5              0                  1
                       26 to 50             8              0                  1
                       51 to 90             13             1                  2
                      91 to 150             20             1                  2
                      151 to 280            32             2                  3
                      281 to 500            50             3                  4
                     501 to 1200            80             5                  6
                     1201 to 3200          125             7                  8
                    3201 to 10,000         200            10                 12
                   10,001 to 35,000        315            14                 15
                                        ANSI/ASQCZ1.4 - 1993




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                                              2/1/2005
                                                            Inspection Process (cont.)

Measurement of the product must be a part of the inspection and auditing process as well as
packaging, labeling and accuracy of carton marking and shipping compliance.

We encourage you to visit our fulfillment center to meet our quality inspection department and other
areas of operation. Please notify us before you visit.


Checking Product and Factories in the Field
Nordstrom approved quality control personnel may visit our vendor’s factories and warehouses to perform
either in-line or finished product audits prior to Nordstrom Direct granting shipping approval. Note: not all
POs will be inspected in the field. Vendors will be selected for product or factory audits based
both on random selection and past performance. In the event that one of your styles is planned for
this type of inspection, you will be notified by our Product & Fit Specialist to arrange for a visitation prior to
shipping goods to the fulfillment center. If your product fails the audit, the Product & Fit Specialist will work
with you to correct the problem. In the case of a failure, Nordstrom will train you on how to implement the
100% inspection.

Vendors will need to be prepared to supply information on the following:
• Quantities and types of product being made
• Health and safety conditions
• Employment practices and working conditions
• Number and types of equipment, capacity and output
• General business information
• Quality Assurance Procedure

The Fulfillment Center Audit and Inspection Process
The final step in our quality assurance program is a final audit in the Nordstrom Direct fulfillment center.
The purpose is to provide an additional opportunity to ensure that the product you have made for us meets
our quality expectations and for us to monitor your performance.

We audit incoming products using a modified Single Sample Plan Level II (Normal), AQL 4.0

                       Modified S4
                        Normal
                         4.0 QL
                        Lot Size       Quantity to        Accept           Reject
                                         Inspect
                        1 to 12        Entire Lot          Direct       100% Inspect
                        13 to 90            13               1                2
                       91 to 150            13               1                2
                       151 to 280           13               1                2
                       281 to 500           13               1                2
                      501 to 1200           20               2                3
                      1201 to 3200          32               3                4
                     3201 to 10,000         32               3                4
                    10,001 to 35,000        50               5                6
                            ANSI/ASQCZ1.4 - 1993 Modified by Nordstrom Direct

Merchandise is inspected for defects and measured to ensure sizing accuracy. Items could fail inspection
for:



                    Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts                     2
                                                2/1/2005
                                                                 Inspection Process (cont.)


P/L – Packaging and labeling errors
M – Measurement out of tolerance
C – Color unacceptable to standard or variations in shade
F/M – Unacceptable defects in fabric or materials
D/O – Dirt and/or Oil present
S – Sewing/construction defects

Any defect which affects the appearance, durability or performance of the product will be rejected – see a
full classification of defects in the back of this section.

If the number of defects is equal to or less than the accept level, the lot passes and goes to stock. If the
number of defects is equal to or greater than the reject level, the lot is rejected. If the lot is rejected, we
have the following options for dealing with the problem:

     •   100% inspect the entire shipment charging you back $60.00 per man-hour.
     •   Return the entire shipment to you, at your expense, for inspection.

Before we do a thorough 100% inspection we will look at an additional 25% of the shipment or 100 pieces
whichever is less and accept the entire shipment if there is less than 4% defective. This allows us to save
time and money on inspecting shipments that might be acceptable but failed the initial audit due to the
small sample size.

An audit summary will be sent to you at each stage of inspection and we will communicate to you regularly
your Quality Pass Rate. Quality Pass Rate is the percent of audits you have had pass our warehouse
audit.



Bin Checks and Testing
There are many times when shipments pass their initial audit and defective merchandise still ends up in
our customers’ hands. When our customers alert us to a problem, we quickly perform a “Bin Check” to
verify product remaining in stock is of acceptable quality. If more defects are found, we will notify the
vendor and pull the stock for a 100% inspection (see procedures and costs listed above).

In addition to obvious defects, the customer may also alert us to a performance problem (i.e. pilling or
colorfastness). When this occurs, we will send your product through fabric or wear testing to verify
performance. If the product does not meet our expectations (as listed in the Performance Specifications in
this manual), we will contact you to discuss resolution and acquire a return authorization number. In the
event of a testing failure, the vendor will be billed all related fees which may include but are not limited to
the following; testing, customer notification and recall of merchandise.

Vendors can avoid returns by making sure they have an ample quality assurance program in place in
their facilities to prevent defective merchandise from leaving their facility and arriving at ours.




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                                                2/1/2005
                                                                                    Vendor Claims
Quality Inspection on Incoming Product
Incoming merchandise that fails an audit or 100% inspection will be returned to the vendor at the vendor’s
expense. The vendor claim will include transportation charges, administrative fees, and insurance when
applicable and merchandise cost. We want you to quickly see the defective units so you can correct any
problems for future production.

•   Vendors will be contacted for an RA# (return authorization). Vendors have ten business days from
    request to provide the RA#; after ten business days, defective items will be deducted from payment to
    the vendor in the form of a claim. Defective items will then be returned to the vendor at the vendors
    expense with all cartons marked NORDSTROM DIRECT QA DEFECTIVE. Refusal of this shipment
    will result in the disposal of these goods by Nordstrom Direct. The monetary claim will remain valid.

•   It is the vendor’s responsibility to provide Nordstrom Direct with accurate information regarding the
    return of defective items. If the information is inaccurate, or is not given, Nordstrom Direct may
    dispose of defective items and the dollar amount claimed will remain valid.

•   Vendors who have issued an invalid RA# causing defective goods to be returned will be charged back
    a flat fee of $150 in addition to all associated shipping costs. Nordstrom Direct may dispose of claimed
    items, and the dollar amount claimed will remain valid.

Customer Returns Due to Manufacturing Defects
All other miscellaneous defective claims (i.e. customer return with manufacturing defect) will be resolved
through the Defective Claims Agreement signed by the vendor and the buyer

Every vendor is required to have a signed agreement on file with Nordstrom Direct. Purchase
Orders will not be confirmed until document is on file with Nordstrom Direct Vendor Compliance.

•   All merchandise with manufacturing defects returned by the customer will be claimed back to the
    vendor according to the Defective Claims Agreement. Defective items will be returned to the vendor
    when they are received from the customer, even if it is after the “selling season” and up to one year of
    the purchase order receipt date.

•   All vendors are required to sign the Defective Claims Agreement and fax a copy to the Vendor
    Compliance department at (206) 303-6129.

•   Vendors who request to be contacted monthly for Return Authorization have ten business days from
    request to provide the RA#; after ten business days, defective items will be deducted from payment to
    the vendor in the form of a claim. Defective items will then be returned to the vendor at the vendors
    expense with all cartons marked NORDSTROM DIRECT DEFECTIVE. Refusal of this shipment will
    result in the disposal of these goods by Nordstrom Direct. The monetary claim will remain valid.

•   Note vendors who refuse delivery of requested defective goods will be subject to a $150 charge back in
    addition to all associated shipping costs. Nordstrom Direct may dispose of items, the dollar amount claimed
    will remain valid.

•   It is the vendor’s responsibility to notify Nordstrom Direct of any address changes. Please contact the
    Nordstrom Direct Vendor Compliance area at (206) 303-6118 with any updates or questions regarding
    claims.




                   Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts                 4
                                              2/1/2005
                                        Classification of Defective Merchandise
When defective product is found in our fulfillment center inspection, we will classify by defect type. The
following is a list of what we consider to be defects and will fail on inbound shipment. This is not intended
to be a complete list but rather an indication of the most common defects.

P/L – PACKAGING/LABELING
Labels
    •    Labels must be legible for the life of the product
    •    Labeling other than as specified or required by the Federal Trade Commission or Customs
    •    Excessive staining or distressing of label


Polybags/Boxes/Tape/Folding/Hangers/SKU Stickers
    •    Missing or illegible suffocation warning on bags
    •    Bags/Boxes torn or not taped/sealed closed
    •    Not folded or hung as specified
    •    Not packaged as specified

Shipping Cartons
    •    Incorrect shipping cartons, carton construction or carton closure
    •    Improperly marked cartons
    •    Improperly packed carton which damages the product or packaging
    •    Excessive damage to cartons
    •    Cartons not securely sealed
    •    Packing list not included with shipment
    •    Contaminants inside the cartons

F – FABRIC/MATERIAL
    •    Conspicuous tension lines
    •    Conspicuous needle lines or finishing creases
    •    Hole, runner or drop stitches
    •    Conspicuous slubs and knots
    •    Skewed, bowed or biased fabric
    •    Dye spots, streaks or smears
    •    Conspicuous pilling
    •    Not cut on grain
    •    Nap not as specified
    •    Snags, pulls in fabric
    •    Mismatched plaid or stripe
    •    Fabric or material repair
    •    Any defect not listed that affects the appearance or durability of the product


M – MEASUREMENTS
    •    Exceeding sewing tolerance




                    Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts                 5
                                               2/1/2005
                          Classification of Defective Merchandise (cont.)

S – SEWING/ASSEMBLY, including components
Stitching/Seams
   •   Inadequate stitches per inch
   •   Needle cut, nick, needle pull or visible abrasion caused by needles
   •   Raw edge
   •   Needle holes
   •   Seams puckered, twisted, roped or pleated
   •   Seams distorted by stretching
   •   Improper or conspicuous seam repair
   •   Improper tension resulting in loose seams or popping stitches when stretched
   •   Ends of stitching, when not caught in other seams, not secured
   •   Foreign objects embedded in seams
   •   Broken stitch in seam or decorative stitching
   •   Any dropped stitch in a non-locking seam
   •   Two or more consecutive skipped stitches on a seaming or joining lock stitch
   •   Uneven stitch lines
   •   Mismatched seams
   •   Roped seams
   •   Excessive untrimmed threads
   •   Buttonhole incorrect size for button
   •   Insufficient back-tack or bar-tack
   •   Foreign matter or excessive reveling caught between plies and visible on face
   •   Any part of garment or fabric caught in an unrelated operation or stitching
   •   More than two splices on one binding operation
   •   Irregular stitch gauge
   •   Improper vertical and horizontal strip and plaid match

Trim Attachment
Fasteners/Buttons/Snaps/Zippers/Buckles
   •   Missing, broken, defective, misplaced or insecurely sewn
   •   Components not securely affixed or improperly stitched down
   •   Corroded or oxidized components
   •   Button incorrect size for button hole
   •   Broken, bent, cracked, improperly clinched or failing to affect a secure closer or to open freely
   •   Missing zipper pull
   •   Missing top or bottom zipper stop
   •   Zipper does not operate smoothly through range of length
   •   Missing components

Components
   •   Defective components
   •   Defects of assembly

Pressing
   •   Burns, scorching shine marks




                  Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts                  6
                                             2/1/2005
                        Classification of Defective Merchandise (cont.)

D/O – DIRT/OIL
  •   Any conspicuous spot or stain regardless of size or location
  •   Surface contamination
  •   Offensive odor
  •   Spewing

C- COLOR
  •   Any deviation from color, stripe pattern, stripe sequence, or color combination as approved
  •   Color which is off-standard or outside accepted shade band
  •   Shading between parts of a garment or within a garment
  •   Wrong shade of thread affecting appearance




                 Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts               7
                                            2/1/2005
SECTION 6           PACKAGING & LABELING REQUIREMENTS

Polybags for Merchandise
Barcode Stickers
Unique Packaging
Labeling Requirements
Dept/Item/Style # Label
Packaging Guidelines
       Jewelry/Accessories
       Fine Jewelry Packaging Guidelines
       Wallets/Handbags/Totes/Backpacks
       Watches
       Sunglasses
       Gloves/Hats/Belts
       Pareos/Scarves/Wraps/Ponchos
       Hosiery/Socks/Slipper Socks
       Mens Ties
       Small Gifts
       Large Gifts
Packaging Approval Process




                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts   0
                                             2/1/2005
                                                              Polybags for Merchandise

Polybag Composition
Polybags for folded merchandise must be made of clear polyethylene (poly) and be a minimum of
.00125 inches (.03125 mm or 1 ¼ mil) thick.

The maximum polybag size allowable measures 14” x 20”. Any merchandise packaged
exceeding the maximum size will fail the quality audit, with the exception being non-co-
mingled items (large gifts).

Suppliers
Polybags are available through the supplier(s) listed below.

                                        POLYBAG SUPPLIERS
Name & Address                                                                Contact
            New Day Packaging                                       Phone: (888) 539-1115
              91 Taft Avenue                                    Order by Fax: (516) 539-1119
           Hempstead, NY 11550                                Email: newdaypackaging@aol.com

                 Veri-Pack                                         Phone: (800) 388-4344
             9 Crystal Pond Rd.                                 Order by Fax: (800) 328-5146
          Southborough, MA 01772                                Order online: www.veripack.com
   NO FOLDED BAGS: HANGING BAGS                                         Bruce Steifman
                 ONLY                                                     Cheryl Bree
          Poly-Pak Industries                                        Phone: (631) 293-6565
          125 Spagnoli Road                                             (800) 969-1993
          Melville, NY 11747                                          Fax: (631) 454-6366
          www.poly-pak.com


Polybags must be sealed securely to keep the merchandise in the polybag at all times. Use one of
the following sealing methods:

 1. Heat Sealing: Heat sealing is the recommended method of sealing.
 2. Taping: Fold open end of polybag over and seal with one piece of 2” wide tape. Tape along
    the entire length of the open end.
 3. Self-Sealing Bags: The use of self sealing bags is acceptable;

 Barcode Sticker Placement
 Nordstrom Direct barcode stickers must be applied to the upper right hand corner of each polybag
 as illustrated on the above diagram. For more information, see the Barcode Sticker information in
 this section of the manual.
                                                                         Barcode Sticker
                                                                           Placement




                       Half-moon or
                       Butterfly-Vent
                       Holes

                        Sealing option #2

                         Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts          1
                                                   2/1/2005
                         3/4” wide clear tape
                                                                                 Barcode Stickers
ALL GOODS SHIPPING TO NORDSTROM DIRECT MUST HAVE A BARCODE STICKER
ATTACHED TO THE OUTSIDE OF EACH ITEMS POLYBAG (see example of sticker below).

All barcode-stickers are printed and shipped by Avery-Dennison a third-party ticketing agency.
Avery-Dennison is a worldwide manufacturer of self-adhesive base materials, office products, labels,
tags, retail systems and specialty chemicals. If you are shipping your merchandise from overseas
and need your stickers expedited, please call Nordstrom Direct vendor compliance (206) 303-6118.

Barcode Sticker Example




Sticker Distribution
Barcode stickers will be mailed to the vendor representative, unless otherwise notified, directly from
the Avery-Dennison Greensboro ticket center. Contact vendor compliance with your mailing
address and any contact name corrections.

Sticker Receipt
Polybag stickers will be received by the vendor within the following time frame:
       • First time orders - within three weeks after the purchase order confirmation.
       • For backup orders and re-orders - within two weeks of confirmation.

Placement
The stickers must be applied to the upper right-hand corner of the polybag in which the item is
bagged.

Invoicing and Payment Method
The cost of barcode stickers, including freight, will be billed directly to the vendor from Avery
Dennison. The third-party ticketing service sends an invoice separately from the tickets. Payment
terms are net 30 days. Vendors who do not pay within 30 days of receipt of an Avery
Dennison invoice are considered past due. Past due vendors will be placed on hold – no
stickers will be shipped by Avery Dennison until payment is made.

Sticker Attachment Procedures - Polybag
        1. You will receive polybag stickers with a header ticket indicating the purchase order
           number for which you are receiving barcode stickers.
        2. Compare the number of stickers you receive for each style, color and size against the
           number of items ordered. If the number of stickers does not match, please contact
           vendor compliance at (206) 303-6118.
        3. Apply a sticker to the upper right-hand corner of each polybag, making sure that the
           style, color and size on the barcode sticker corresponds to the style, color and size of
           the item.
        4. Continue labeling until all of the labels are gone. If overages are included in the

                         Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts           2
                                                   2/1/2005
        order, please clearly indicate in each carton which items do not include barcode
        stickers.
                                                              Barcode Stickers (cont.)

Sticker Attachment Procedures – Shipping Carton ***new requirement***
     1. Size and color appropriate sticker must be placed on the outside-perforated end of
        each shipping carton. Sticker should be representative of what the carton contains.
        Mixed SKU cartons should have all sizes and colors represented by a\their respective
        barcode sticker(s)


Avery-Dennison Contact



           Name& Address                                                     Contact
     Avery Dennison/Soabar Products                                    Felicia Venable
            2305 Soabar Drive                                    Telephone: (336) 271-3872
         Greensboro, NC 27406                                        Fax: (336) 691-1823
                                                             Felicia.Venable@AveryDennison.Com
     Avery Dennison/Soabar Products                                      Phyllis Choy
         No. 7 Chun Ying Street                                 Telephone: (852) 2372-3763
     Tseung Kwan O Industrial Estate                                Fax: (852) 2597-4565
       New Territories, Hong Kong                            Phyllis.Choy@averydennison.com




                     Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts              3
                                               2/1/2005
                                                                                       Unique Packaging
If your item is shipped in unique, or signature packaging, this packaging must be approved. Send
samples of packaging to the Nordstrom Direct Vendor Compliance at 1700 7th Ave., Suite 300, Seattle
WA 98101. Specific items may require a 10% overage of packaging sent direct to our Cedar Rapids
Fulfillment Center. Please contact Vendor Compliance at (206) 303-6118 to review packaging and
determine if overages will be required.

Examples of unique packaging
•   Signature or unusual tie boxes
•   Signature of unusual packaging
•   Carrying case/bag
•   Gift with purchase
•   Presentation packaging




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                       5
                                                                                            Labeling

All merchandise sold to Nordstrom Direct must be properly labeled accordance with all U.S. laws and
regulations. Merchandise not properly labeled will fail the quality audit resulting in offset fees.

Main Logo Labels
•   Vendor’s own main logo labels: Vendor’s labels must be sewn-in, readable and permanent.

Care and Content Labels
Nordstrom requires that all labeling meet current U.S. Federal Trade Commission (F.T.C.) requirements
and be in compliance with all U.S. Customs Service regulations. It is the responsibility of the vendor to
understand and apply all labeling rules and requirements. For more information, contact the F.T.C.:

        U.S. Federal Trade Commission
        http://www.ftc.gov/os/statutes/textilejump.htm
        phone: (202) 326-3553
        fax:   (202) 326-3197

It is imperative that any product made by foreign or domestic manufacturers be correctly labeled with
regard to the below points. In addition, the care labels must be permanently attached and legible
throughout the life of the item.

    •   Country of Origin
    •   Fiber Content
    •   Registration Number (RN#)
    •   Complete and Accurate Care Instructions (if required by the F.T.C.)



Care/Cleaning
Special Instructions - If items being sold to Nordstrom Direct require special care or cleaning, please
help us inform our customer by including instructions with the item. This can be done in the form of a
card, tag, or sticky label. Please contact the Vendor Compliance department with any questions (206)
303-6118.

For your convenience please utilize the links below to access various jewelry information websites for care
and cleaning information.

Jewelry Information Center
http://www.jewelryinfo.org/basics/basics_birth_dec.html
American Gem Trading Association
http://www.agta.org/

Gemological Institute of America
http://www.gia.edu/



                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                   2/1/2005                                     6
                                                                          Dept./Item/Style # Label
 ALL products sold to Nordstrom Direct must have the following information attached to the item. This
enables the product to move efficiently through our system (please refer to your purchase order for this
information):

        •   Department Number (Nordstrom Direct department number)
        •   Item Number (Nordstrom Direct item number)
        •   Style Number (Vendor style number)

This information may be attached in one of the following ways:
(If your item is not listed below, please contact Vendor compliance at (206) 303-6118 with any questions).

Jewelry/Accessories/Belts/Handbags/Totes/Backpacks
   Hangtag attached directly to the item
   Sticker attached to the back of the jewelry/accessory card

Scarves/Gloves/Wraps/Kerchiefs/Pillows/Blankets/Throws/Rugs
   Label sewn into item
   Hangtag attached directly to the item

Hosiery/Socks/SlipperSocks
• Sticker on vendor packaging of item

Mens ties
   Label sewn into item
   Loop tag
   Sticker on tie box

Sunglasses/Watches
   Hangtag attached directly to the item
   Sticker attached to the bottom of watch or sunglass case

Small/Large Gift Items
  Hangtag attached directly to the item
  Sticker attached to the bottom of item

Multi-Piece Gift Items
   Sticker may be attached to the bottom of the outermost box containing all pieces (each piece need not
   be individually labeled with dept/style/item#).




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                   2/1/2005                                     7
                                                                             Packaging Guidelines
The following guidelines will provide you with a clear picture as to how we need your merchandise to be
packaged for shipment to our Cedar Rapids Fulfillment Center. Merchandise shipped to our Cedar
Rapids Fulfillment Center must be packaged according to these guidelines. Any variance will cause
delays, and ultimately, chargebacks may be applied as a result of non-compliance.

If you have any questions regarding these guidelines, call the vendor compliance coordinator at (206) 303-
6118




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                    8
                                                                              Packaging Guidelines
                                                                                   JEWELRY/ACCESSORIES

Jewelry cards
All jewelry and accessories must be placed on the appropriate jewelry card. The use of jewelry cards help
standardize presentation, create a nice look for our customers, as well as reduce damage during
shipment.

The following items must be placed on a jewelry card:
   Earrings
   Necklaces (with the exception of bulky necklaces which will not tangle)
   Hair Accessories (with the exception of headbands)
   Rings
   Broaches/Pins
   Tie Clips
   Cuff Links


Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, or the jewelry card, not
the polybag.

Pricing
Pricing of any kind should not be listed on the item or packaging. Pricing of any kind may cause a quality
audit failure.

Presentation Jewelry Boxes
After placing jewelry and accessories on the appropriate jewelry card, each item must then be placed in a
vendor generic jewelry box with a ½” cotton liner. Box size must be no smaller than 3 ½” x 3 ½” x 1” (standard
jewelry gift box size). For questions regarding acceptable boxes please contact Nordstrom Direct vendor
compliance at (206) 303-6118.

Source for Jewelry Boxes
Presentation jewelry boxes can be ordered through All Size Box & Packaging by calling 1-800-535-7294,
ask for Tammy. These boxes can also be found at most packaging specialty stores.

Gift Tins
If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble
material, the tin must then be polybagged or shrink-wrapped (see below).

Polybags/Shrink-wrap
Once the jewelry or accessory item has been placed in a presentation jewelry box, each box must then
be placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create
a professional looking presentation, and seal securely by heatsealing or using two pieces of clear ¾ “
tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap
must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                   2/1/2005                                       9
                                                                             Packaging Guidelines
                                                                      JEWELRY/ACCESSORIES (Cont.)

Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
perforation. Please refer to the shipping carton section of this manual for sources.

Unique Packaging
If your item is shipped in unique, or signature packaging, this packaging must approved prior to bulk
shipment. Send samples of packaging to the vendor compliance area at 1700 7th Ave., Suite 300,
Seattle WA 98101. Specific items may require a 10% overage of packaging sent direct to our Cedar
Rapids Fulfillment Center.

Examples of Unique Packaging
   Decorative tins
   Signature watch boxes/cases
   Signature eyeglass/sunglass cases
   Special protective packaging
   Warranties
   Signature Jewelry cards

Overages of these items may be included with your shipment. Clearly separate packaging overages from
the rest of your purchase order. Indicate on the outside of the shipping carton containing the packaging
overages “PACKAGING OVERAGES.”




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                 2/1/2005                                   10
                                                                              Packaging Guidelines
                                                                                                FINE JEWELRY



Fine Jewelry Packaging Guidelines
All fine jewelry must be pre-packaged in a Nordstrom label jewelry box as designated by this guideline.
The use of this packaging will insure standardized presentation of fine jewelry purchases to our
customers. These guidelines are intended for use as an addendum to the Nordstrom Direct Procedures
Manual. For specific details pertaining to Quality Standards, Packaging, Shipping, and Invoicing, please
refer to the Nordstrom Direct Procedures Manual.


How to Order

1. Determine the jewelry type ordered on the chart below. Find the corresponding box type and box item
    number.

                                                                                    Box Item
                 Jewelry Type                           Box Description                #     Cost / Dz
* All stud earrings
* Drop earrings less than 1 1/4" in length         Stud Earring                         01220   $26.01
* All other earrings
* Chains and necklaces less than $200 cost         Medium Pouch -and-                   01252   $10.12
* All anklets                                      Packer for Medium Pouch              01254   $10.37
* Chains $200 cost and over
* All necklaces
* All bracelets $200 cost and over                 Deep Brooch                          01225   $60.75
* All pendants less than $500 cost                 Pendant                              01223   $35.40
* All pendants $500 cost and over
* Pearl strands $500 cost and over                 Small Necklace                       01230   $73.10
                                                   Large Pouch - and-                   01255   $14.52
* Pearl strands less than $500 cost                Packer for Large Pouch               01257   $10.44
* All rings                                        Single Ring                          01228   $28.32
* All toe rings                                    Small Pouch -and-                    01250    $7.34
* All body jewelry                                 Packer for Small Pouch               01251    $7.08

2. Complete the Nordstrom Direct Jewelry Item Requisition Form located in this packet. Fax or email the
   form to The Merrill Corporation. Your order will be shipped via ground service. Vendors are
   responsible for the cost of the jewelry boxes plus freight. Billing for the box order will be in the
   form of a claim to be keyed by Nordstrom Direct. A claim summary will be sent detailing your box
   purchases. You will not receive an invoice from The Merrill Corporation.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                           11
                Nordstrom Direct Jewelry Item Requisition Form

Ship to:                                                      Order Date: ___________
                                                              Ship via: Ground Service
                                                              Release #_____________
___________________________
Phone #: ___________________
Requested by: ______________
GL Acct #: 500.5210.74421.35112

Item #       Item Description                                   Extended Quantity
                                                                (ex. – to order 1 dz, enter 12 below)
01220        Stud Earring (12/box)
01228        Single Ring (12/box)
01225        Deep Brooch (12/box)
01223        Pendant (12/box)
01230        Small Necklace (12/box)
01250        Small Pouch (12/box)
01251        Packer for Small Pouch (12/box)
01252        Medium Pouch (12/box)
01254        Packer for Medium Pouch (12/box)
01255        Large Pouch (12/box)
01257        Packer for Large Pouch (12/box)

Comments:
_____________________________________________________________________
_____________________________________________________________________
__________________________________________________________________
By completing this form, you acknowledge the supplies ordered from Merrill Corporation will be used to
package Nordstrom products.

Please e-mail this requisition to nordstromorders@merrillcorp.com or fax to (360) 794-3100.




                                     Merrill Corporation
                                     nd
                         14640 172 Drive SE, Monroe WA 98272-1082
                            fax: (360) 794-3100 sales (800)735-7135




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                 2/1/2005                                           12
                                                              Packaging Guidelines (cont.)
                                                                                       FINE JEWELRY
Packaging

All fine jewelry items must be packaged in the following method.

    1. Fine Jewelry Box: each item should be placed in the designated box type.

    2. Polybagging: each box must be placed in a size-appropriate polybag. Seal the polybag by either
       heat-sealing or tape. Use of a self-sealing bag is acceptable.

    3. Barcode Sticker: the Avery Dennison barcode sticker must be placed on the upper right-hand
       corner of the polybag

    4. ASN: the Advance Shipment Notification form must be faxed or emailed to our Fulfillment Center
       24 hours prior to each shipment leaving the vendor’s warehouse. A copy of the ASN form is
       located in this packet.


Shipping
Fine Jewelry must be shipped to the Cedar Rapids Fulfillment Center #808 using one of the following
methods.
    US Mail (ground) - Registered Mail, signature required, Attn. Front Desk
    US Mail (air) - Express, signature required, Attn. Front Desk
    Indicate PO # (purchase order) on the outside of the shipping carton.
    Ship declaring FULL VALUE

Address shipment as follows: Cedar Rapids Fulfillment Center #808
                                        7700 18th Street SW
                                      Cedar Rapids, IA 52404
                                              Attn: Front Desk


Unique Packaging
If your item is shipped in unique, or signature packaging, this packaging must be approved prior to bulk
shipment. Send samples of packaging to the Vendor Compliance department at 1700 7th Avenue,
Suite 300, Seattle, WA 98101.



For questions, please Vendor Compliance at (206) 303-6118




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                 2/1/2005                                     13
                                                                              Packaging Guidelines
                                                      WALLETS/HANDBAGS/TOTES/BACKPACKS


Dept#/Item#/Style# Labeling
Each item must have sticker, tag, or hangtag attached indicating the Nordstrom Direct Department #, Item
#, and vendor style #. This information must be attached to the item itself, not the polybag.

Pricing
No pricing of any kind should be listed on the item or packaging


 •   Silica Packets: Silica packets (non-poisonous Decekin) must be included with item.
 •   Ornamentation: All metal ornamentation (zipper pulls, drawstring ends etc.) must be wrapped in
     tissue paper.

Magnetic Closures
     All US patent information must be present on any magnetic closures/fasteners.

Polybag
Each item must be placed in an individual polybag. The polybag should be sized to fit the item. The open
end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of ¾”
clear tape. No part of the handbag/tote or backpack should be outside of the polybag. The bag must
be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for additional information see
section on polybags).

Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
All small handbags must be shipped using the narrow size shipping carton (23” x 10” x 17”). All large
bags, totes and backpacks must be shipped in the wide size shipping carton (23” x 15” x 17”). Please
see the shipping section for more details.

Wallets: The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h)
with an end perforation. Please refer to the shipping carton section of this manual for sources.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                  14
                                                                              Packaging Guidelines
                                                                                              WATCHES

Watch Boxes
Watches must be packaged in individual watch cases/boxes (watches should have watch stoppers in
place). If using a soft watch case, the soft case must then be placed in a size appropriate presentation
jewelry box with a ½” cotton liner.

Gift Tins
If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble
material. The bubble material may replace the use of an outer polybag. The barcode sticker can then be
placed on the outside of the bubble material

Watch Pins Pulled
Watches must not be running when shipped to the Cedar Rapids Fulfillment Center. Watch stoppers must
be in place, and/or watch pins must be pulled, with the exception being digital watches.

Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, or the bottom of the
watch box, not the polybag.

Pricing
No pricing of any kind should be listed on the item or packaging

Polybags/Shrink-wrap
Once the watch has been placed in a watch box or presentation jewelry box, each box must then be
placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create a
professional looking presentation, and seal securely by heatsealing, or by using two pieces of ¾” clear
tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap
must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick.

Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
perforation. Please refer to the shipping carton section of this manual for sources.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                     15
                                                                              Packaging Guidelines
                                                                                          SUNGLASSES

Cases
Sunglasses must be packed and shipped in sunglass cases. If using a soft sunglass case, the case must
be placed in a vendor generic presentation box.

Gift Tins
If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble
material.

Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, or the bottom of the
watch box, not the polybag.

Pricing
No pricing of any kind should be listed on the item or packaging

Polybags/Shrink-wrap
Once the sunglasses have been placed in a hard sunglass case, or softcase and presentation jewelry box,
each case/box must then be placed in a size appropriate polybag. Fold the open end of the bag over the
end of the box to create a professional looking presentation, and seal securely by heatsealing or using two
pieces of ¾” clear tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags,
or shrink-wrap must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick.

Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
perforation. Please refer to the shipping carton section of this manual for sources.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                      16
                                                                               Packaging Guidelines
                                                                                         GLOVES/HATS/BELTS


Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, not the polybag.

Pricing
No pricing of any kind should be listed on the item or packaging

Belts
Belts should be coiled with the right side of the belt facing out. Do not ship belts flat and do not include
plastic hangtags on belts.

    •   Metal or Chain belts which are prone to damage or tangling need to be packaged in individual
        presentation boxes or in bubblebags.


Polybags for Gloves/Hats/Belts
Each item must be placed in an individual polybag. The polybag should be sized to fit the item. The open
end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of ¾”
clear tape. The bag must be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for
additional information see section on polybags). Polybag must have a vent hole for use with fabric items.
    • If necessary to keep the shape hats may be stuffed with tissue paper or other appropriate
         dunnage material.

.
Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
perforation. Please refer to the shipping carton section of this manual for sources.




                        Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                   2/1/2005                                       17
                                                                              Packaging Guidelines
                                                              PAREOS/SCARVES/WRAPS/PONCHOS

Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, not the polybag.

Finished Dimensions after Folding
Approximate folded dimension should be 10” x 12” or 10” x 14”
Exceptions to this rule can be allowed for bulky wraps or ponchos, which may be folded to 10” x 19”

Polybag Size
    •   Use polybag size of either 11” x 14” or 11” x 16” (for exceptions use polybag size of 11” x 20”)
    •   Do not allow more than 1” of space between edge of garment and polybag.

Shipping Carton
These items must be shipped in the narrow or short narrow carton.

Notes to Remember
•   Do not use pins or clips
•   Tissue or lightweight stiffener may be used if necessary

Folding Instructions
1. Fold in half.
2. Fold in half again.
3. Fold until approximate dimension listed above is reached.
4. Place item into the correct polybag size and seal polybag with clear tape or heat seal. If heat sealing
method is used all polybags must have three half-moon or butterfly vent holes ¼” diameter evenly spaced.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                     18
                                                                              Packaging Guidelines
                                                                    HOSIERY/SOCKS/SLIPPER SOCKS



Dept#/Item#/Style# Labeling
Each pair or unit must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct
Department #, Item #, and vendor style #. This information must be attached to the item itself, not the
polybag.

Multi-packs
Each pair or unit should be packaged individually unless purchase order indicates merchandise is sold in
multiples.

Pricing
No pricing of any kind should be listed on the item or packaging.

Polybags
Each pair or unit must be placed in an individual polybag. The polybag should be sized to fit the item. The
open end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of
¾” clear tape. The bag must be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for
additional information see section on polybags).


Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.


Shipping Carton
The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
perforation. Please refer to the shipping carton section of this manual for sources.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                     19
                                                                                     Packaging Guidelines
                                                                                                  MENS TIES
Notes to Remember
      •    Ties must be placed in a presentation box.
      •    Ties not in a presentation box will need to be reprocessed at our Cedar Rapids facility. The vendor
           will be responsible for associated costs and related chargebacks.
      •    Each tie box must be shrink-wrapped or polybagged with a Nordstrom Direct barcode sticker placed
           on the outside of wrap or bag.

Shipping Carton
      This item must be shipped in either the narrow (23” x 10” x 17”) or short narrow (23” x 10” x 6”) size
      shipping carton.
Folding Instructions
      Option #1
      1.   Fold tie in ½, tail should be tucked behind label
      2.   Fold again in 1/3
      3.   Place tie into a (appx.) 6” x 8” x 1 ¼” presentation box, tissue paper optional
      4.   Shrink-wrap or polybag and seal.
      5.   Apply Nordstrom Direct barcode sticker to the outside of wrap or bag.

      Option #2
      1. Roll tie from narrow end to wide end
      2. Place tie into a 3” - 4” square cubed box 3” – 4” deep, tissue paper optional
      3. Follow steps 4 & 5 above

      Shipping Carton
      The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end
      perforation. Please refer to the shipping carton section of this manual for sources.




                                                                                     Packaging Guidelines
                              Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                         2/1/2005                                   20
                                                                                           SMALL GIFTS

All smaller items (except soft items such as a pillow or stuffed animals, or unbreakable items such as a
book) need to be placed in a vendor generic presentation “gift” box. This box may be a standard white
accessory box with a layer of cotton and a lid, a lip-locked chipboard or corrugated box in either white or
Kraft. No staples of any kind should be used in the packaging process.

Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department
#, Item #, and vendor style #. This information must be attached to the item itself, not the polybag.

Pricing
No pricing of any kind should not be listed on the item or packaging

Cosmetics
Tamper resistant seals must be included on all cosmetic merchandise. In addition, all cosmetic items must
be completely sealed closed. Shrink-wrap or heatsealing is the preferred method. A layer of bubble wrap
in addition to size appropriate polybag (see below) must protect liquid items.

Polybags/Shrink-wrap
Once the small gift item has been placed in presentation gift box, each box must then be placed in a size
appropriate polybag. Fold the open end of the bag over the end of the box to create a professional looking
presentation, and seal securely by heatsealing or using two pieces of ¾” clear tape. The use of shrink-
wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap must be made of clear
polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick.

Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the
upper right hand corner of each item. Please see section on barcode stickers for more detailed
information.

Shipping Carton
All small gift items must be shipped using in the narrow size shipping carton (23” x 10” x 17”). Please see
the shipping section for more details.




                                                                              Packaging Guidelines
                                                                                           LARGE GIFTS

                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                      21
Larger gift items (minimum dimensions of 10” L x 10” W x 6” D) must be packed ready to ship to a
customer. The item should be placed in a box of sturdy corrugated construction with a minimum
bursting strength of 200 lbs. The box should be as close to square or rectangle as possible. The box
should fit the item.
    The box must be new (no used/reused)
    All empty space around the item should be filled with dunnage, bubble wrap, Kraft paper, textured
    Kraft paper, foam wrap, or expanding foam may be used. No printed newspaper of any kind should
    b used.
    No staples of any kind may be used in the packaging process. Boxes should be sealed with packing
    tape.
    If the item is fragile, the box should be marked with a “Fragile” sticker on two sides.

Dept#/Item#/Style# Labeling
Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct
Department #, Item #, and vendor style #. This information must be attached to the item itself.

Pricing
No pricing of any kind should not be listed on the item or packaging

Carton Markings
Each individual carton must have the following markings:
   PO # (purchase order number)
   Carton X of Y
   Avery Dennison Barcode Sticker




                     Carton x of y

                 Barcode
                 Sticker


                 Nordstrom Direct PO
                 #




Barcode Sticker
The Avery Dennison barcode sticker must be applied to the outside of the shipping carton in the upper
right hand corner of each item (see diagram for placement). Please see section on barcode stickers for
more detailed information.

Shipping
Shipment of large gift items to our Cedar Rapids Fulfillment center may be palletized. Shrink-wrap all
individual cartons together, taking care not to crush the carton. Be sure to place cartons with carton
marking facing towards the outside. Please refer the Shipping section of this manual for complete
shipping information.


                                                               Packaging Approval Process
                                                                                        SMALL / LARGE GIFTS

                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                        22
A sample for packaging approval of small and large gift items may be requested. The merchandise buyer
will notify you if your item must be submitted for packaging approval. This packaging approval is crucial to
ensure the packaging of your item is sufficient to protect the integrity and presentation of the item during
the fulfillment process.

    Sample item must be packaged as you would for bulk shipment
    Sample item must be shipped freight pre-paid.
    All samples are considered the cost of doing business and will be furnished and sent to Nordstrom
    Direct at the vendor’s expense.

         Send sample to:
                                               Nordstrom Direct
                                                 1700 7th Ave
                                                   Suite 300
                                               Seattle, WA 98101
                                        Attn: Vendor Compliance Dept.



Approval
Vendor Compliance will contact you with approval, and/or any feedback related to the sample item
packaging. For questions please call (206) 303-6118.




                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts
                                                  2/1/2005                                      23
SECTION 7                                           PACKING AND SHIPPING

Shipping Cartons
Packing Slips
Packing, Sealing and Marking Cartons
Shipping
ASN - Advance Shipment Notification
Routing
Bills of Lading
Purchase Order Verification
Appendix A: Specifics on Shipping
Appendix B: Glossary of Shipping




               Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts   0
                                         2/1/2005
                                                                                       Shipping Cartons
 Composition
 All cartons shipped to Nordstrom Direct must be new and made of corrugated cardboard.
 Strength
 Cartons must have a minimum bursting strength of 200lbs/in sq.
 Size
 Shipping cartons must have the following exact measurements in addition to the end perforation (see
 exceptions on next page):

      SUMMARY OF SHIPPING CARTON SPECIFICATIONS

     Standard Carton Sizes              Maximum Carton Weight                  Perforation
       23” x 10” x 6”
  58.42 cm x 25.40 cm x 15cm                 40 lbs.                          Verticals: 6 ½”
         Short Narrow                        18 kgs.                           Horizontal 7”

        23” x 10” x 17”
 58.42cm x 25.40cm x 43.18cm                 40 lbs.                          Verticals: 12”
             Narrow                          18 kgs.                          Horizontal: 4”

         23” x 15” x 17”
  58.42cm x 38.10cm x 43.18cm                40 lbs.                           Verticals: 9”
               Wide                          18 kgs.                          Horizontal: 9”


1. 23” x 10” x 6” (Short Narrow) - This carton should be used for jewelry, accessories, wallets,
   watches sunglasses, gloves, scarves, hats, belts and small cosmetic items.
2. 23” x 10" x 17" (Narrow) - This carton should be used for small handbags or gift items.
3. 23" x 15" x 17" (Wide) - This carton should be used for bulky items such as pillows, stuffed animals,
   totes or backpacks.

♦ Please ship in compliant carton size that best fit your item and the size of your
  purchase order.
♦ Do not mix Narrow and Wide cartons within the same PO.
♦ Do not switch between Narrow and Wide cartons on subsequent shipments of
  the same item.

 Wide vs. Narrow
 The majority of accessory items should be shipped in the Short Narrow (23” x 10” x 6”) shipping carton.
 If unsure about which size cartons to use, please contact Nordstrom Direct Vendor Compliance at (206)
 303-6118.




                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                       1
                                                2/1/2005
                                                                   Shipping Cartons (cont.)

Perforation
All cartons must be perforated to facilitate the creation of an opening. The perforation should be
located on one end of the carton and have the approximate measurements listed on previous
page.

Consistency from One Delivery to the Next
After an item has shipped to our Cedar Rapids Fulfillment Center, all subsequent P.O.’s for that item must be
shipped in the identical Width of shipping carton so that they can be stored in the same location in the
warehouse.


Shipping Carton Suppliers:
Carton Suppliers                       Company                                Contact Name/Number
                                       Name/Address
Nationwide                             New Day Packaging                      Phone: (888) 539-1115
**Stocks all three carton sizes +      91 Taft Avenue                         Order by Fax: (516) 539-1119
polybags                               Hempstead, NY 11550                    Contact: Brian Goldstein
                                                                                    Or Lisa Alexander
                                                                              Email:
                                                                              newdaypackaging@aol.com
East Coast                             Dawn Industries                        Phone: 1-888-DAWN-USA
  New York area                        450 Seventh Ave                                1-888-329-6872
                                       New York, NY 10123                     Phone (212) 432-0035
                                                                              Fax: (212) 563-0489
**Stocks all three carton sizes
                                                                              Fax: (212) 596-0167
                                                                              Contact: Jonathan Greenberg
                                                                                       Marla Perrino
West Coast                             California Supply                      Phone: (310) 532-2500
                                       491 E. Compton Blvd.                   Fax: (310) 327-1849
                                       Gardena, CA 90248                      Violet Parrish x134
                                                                              Mark Weinstein x132
**Stocks all three carton sizes                                               Phone: (800) 562-2625
                                       California Supply
                                                                              Fax: (510) 429-0426
                                       30049 Ahern Street
                                                                              Phil Footlik x 121
                                       Union City, CA 94587
                                                                              Bob Johnson x 131
Mid-West                               Ability Enterprise                     Phone: (312) 337-8433
                                       1440 N. Kingsbury #120                 Fax: (312) 337-8677
                                       Chicago, IL 60622
Canada                                 Paramount Paper Products               Phone: (514) 331-0083
                                       1300 Boul Jules Poitras                Fax: (514) 331-3274
                                       St. Laurent, Quebec H4N1X7             E-mail:
                                                                              info@paramountpaper.com
                                                                              Contact: Mr. John Bilikas
Hong Kong                              Ching Wah Industrial Co.               Phone: 242-36537
                                       Unit 13,5F Block A                     Phone: 242-36551
                                       Wah Tat Industrial Centre              Fax: 242-36555

                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                           2
                                              2/1/2005
                            8-10 Wah Sing Street                   Contact: T.C. Cheung
                            Kwai Chung, Kowloon , HK
China                       No.2 Printing/Packing Factory          Phone/Fax: 86-21-246012
                            Zhujiawan, Changshu City, China        Contact: Mr. Zhu Bin Rong
Spain                       Cartopesa                              Phone: 96-663-0592
                                                                   Fax: 96-663-2646
Brazil                      Ind. Cartel S.A.                       Phone: 011-555-1597-1311
                            Rodovia RA 130                         Fax: 011-555-1597-1523
                            KM 40, SEM NBR
                            Legeado, Rs Brazil
Brazil                      Box Print Fabric                       Phone: 011-555-1597-1311
                            Embalagens E Ondulado S.A.             Fax: 011-555-1597-1523
                            Avenida Dos Municipios 5238
                            Campo Bom 93-700-000 RA
                            Brazil




                                                                             Packing Slips
         Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                        3
                                   2/1/2005
Include one packing slip per purchase order.

Attachments
•   Carton Freight: Place a packing slip in a removable pouch attached to the purchase order’s lead
    carton. Place a second copy inside the same carton.
•   GOH: Attach a single copy of the packing slip to the purchase order's lead garment.

Content
Packing slips must include the following information:
• Shipper’s name, address and phone number
• Destination address:
              Cedar Rapids Fulfillment Center #808
              7700 18th Street SW
              Cedar Rapids, IA 52404
              Phone: (319) 846-4000
              Fax: (319) 846-4208
• Nordstrom Direct purchase order number (two alpha characters, six numeric characters)
• Description of goods
• Total number of cartons
• Carton Dimensions
• N.com item number (minimum of four numeric characters)
• N.com color code(s) (three alpha character code)
• N.com size(s)
• Totals by carton
• Totals by SKU (style, color and size)




                                                               Packing, Sealing & Marking

Packing
•   Packing: Pack each purchase order separately.
                  Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                      4
                                            2/1/2005
•   Mixing: Do not mix merchandise for more than one purchase order in the same carton.
•   One SKU per carton: Pack one style, color and size (SKU) per carton. If quantities do not allow for a
    full carton of a single SKU leave the rest of the carton with empty space.
•   You are allowed one mixed carton per color (Use tissue or cardboard to separate each SKU). Label
    the mixed carton with the color, size and amount. Also clearly label the carton "MIXED".

Maximum Carton Weight
Cartons shipped to the Cedar Rapids Fulfillment Center must not exceed 40 lbs. (18 kgs.) in gross
weight.

Sealing Cartons
The top and bottom of every carton must be sealed with 2” or 3" patterned tape. The tape must not interfere
with any carton markings. Do not use staples, bands, straps, cellophane, plain clear or plain brown tape.
Acceptable tapes are listed below:
    • Patterned polypropylene tape. The tape pattern can be anything that will help identify when a carton
        seal has been broken.
    • Patterned, water-activated paper tape with fiber reinforcement. The pattern can be anything that
        will help identify when a carton seal has been broken.
Marking
One end and one side of each carton must be marked as indicated below. Carton markings must be large
enough to be easily read. See illustration below.
   Mark one side of each carton with the following information:
   • Shipper's name & address
   • Destination address:
       Cedar Rapids Fulfillment Center
       D.C. #808 7700 18th Street S.W.
       Cedar Rapids, IA 52404
   • Nordstrom Direct purchase order number (two alpha characters, six numeric characters)
   • Carton number (in format x of y where y equals the total number of cartons)
   • N.com item number (minimum of four numeric characters)
   • N.com color code(s) (three alpha characters)
   • N.com size(s)
   • "MIXED" (if carton contains mixed SKU's)
   • Total pieces



                                                                                            17 inches
                                                   Carton # x of y
                                 Shipper Name & Address
                                 Fulfillment Center Address
                                 Nordstrom Direct PO #
                                 Nordstrom Direct Item #
                                 Nordstrom Direct Color Code
                                 Sizes
                                 Total pieces
                                                                                    10 inches
                                                   23 inches
                                                   Packing, Sealing & Marking (cont.)
    ***New Requirement***
    Size and color appropriate Avery Dennison barcode sticker must be placed on the outside-perforated
    end of each shipping carton. Sticker should be representative of what the carton contains. Mixed SKU

                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                             5
                                             2/1/2005
    cartons should have all sizes and colors represented by their respective barcode sticker(s).

    Mark the perforated end of each carton with the following information:
       • Place a Barcode sticker corresponding to the items packed inside the carton on the lower left
           hand corner (see drawing A)
       • Quantity
       • PO #




                                                 Barcode                                      A.
                                                 Total # Pcs.
                                                 PO #

                                         Do not write on perforation



     If Barcode Sticker quantities do not allow for use as carton markings, please list the
    following information on the perforated end of each carton:
    • N.com item number
    • N.com color code(s)
    • N.com size(s)
    • Quantity
    •    Purchase order (PO) number




                                        Nordstrom item #
                                        Nordstrom color code
                                        Nordstrom size(s)                                          B.
                                        Total pieces
                                        P.O. #

                                        Do not write on perforation


                                                                                               Shipping

Shipping Window
All shipments must be made within the early ship and past cancel dates listed on the catalog purchase
                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                        6
                                             2/1/2005
order. Purchase orders shipped outside of this window may be refused and returned at the shipper's
expense and liability. Early purchase orders that are accepted will be subject to strict handling and storage
fees. Late purchase orders that are accepted will be subject to cancellation and/or penalties. See the
Financial section in this manual for more information.

Purchase Order Verification
All purchase orders shipped to the Cedar Rapids Fulfillment Center must be verified prior to shipment.
Invalid purchase orders will be refused and returned to the shipper at the shipper's expense. The shipper
will also incur any applicable storage fees and a $25 handling fee. See the “Purchase Order Verification”
section in this manual for more information.

Advance Shipment Notification Forms
All vendors shipping merchandise to Nordstrom Direct must fax an “Advance Shipment Notification
(A.S.N.)” to our Fulfillment Center within 24 hours of shipment leaving the vendor’s warehouse. (A
copy of the A.S.N. is located in this section of the manual.)
    ♦ This is NOT an electronic transmission (EDI).

Consolidation
All purchase orders shipped to the Cedar Rapids Fulfillment Center #808 on the same day should be on
one bill of lading.

Carrier Selection
All shipments to the Cedar Rapids Fulfillment Center must be made through our approved carriers. Select
the appropriate carrier (listed in the “Routing” section in this manual) based on the buyer's requested
shipment method (surface or air), your shipping location, and the weight of your shipment.

Scheduling a Pickup
Contact the designated Nordstrom Direct carrier at least 24 hours in advance to schedule a pickup. Provide
the carrier with the total weight and pieces in your shipment. If our designated carrier does not provide
service to your shipping location, call the Fulfillment Center Traffic department at (319) 846-4000.
• Important Note: Do Not Pre-pay Freight. Freight cost is collected from the vendor in the form of a
    freight chargeback.

Bills of Lading
Create a bill of lading. See the “Bills of Lading” for more information.

Billing
Bill your shipment COLLECT. Nordstrom Direct will not reimburse vendors for prepaid shipments.
     • Do not prepay shipment. Nordstrom Direct will collect the freight cost from the vendor in the form of
         a freight chargeback.

Declaration of Value
DO NOT declare value on Surface or Air shipments



                                                                                     Shipping (cont.)

Freight


                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                              7
                                              2/1/2005
All deliveries must be made by surface, unless otherwise specified by the buyer, through our approved
carriers (see “Routing” section in this manual). Shipment terms will be FOB, full-paid freight, to the Cedar
Rapids Fulfillment Center in Cedar Rapids, Iowa.

On-Time Delivery
Our commitment to customer service is dependent upon the immediate availability of merchandise when
the customer calls. The increased shipping and handling costs, very high return rates on back-ordered
items and general loss of credibility imply that on-time delivery of all purchase orders is of the highest
priority.
          Penalties and Cancellation Policy: Merchandise that is not completely available on the agreed
          upon date will jeopardize future business opportunities and are subject to cancellation or specified
          invoice penalties. If the vendor is unable to fulfill contractual obligations, Nordstrom Direct requires
          notification as soon as the vendor is aware of any potential problems, or at least two weeks before
          the cancel date.

Substitutions / Overages
•   Do not ship more units than the quantity listed on the purchase order. Any amount over the P.O.
    quantity must be approved by the buyer prior to shipping.
•   Do not send substitutions of any kind. Substitute styles will be returned at the vendor’s expense in
    addition to handling fees.

Assistance with Purchase Orders
For inquiries regarding a purchase order, contact the buyer listed on your purchase order. All buyers can be
contacted through the Nordstrom Direct receptionist at (206) 303-6000.




                                                                                       Shipping (Cont.)
                                                          FINE JEWELRY AND OTHER EXCEPTIONS

Fine Jewelry
                     Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                                  8
                                               2/1/2005
Fine Jewelry must be shipped to the Cedar Rapids Fulfillment Center #808 using one of the following
methods.
    US Mail (ground) - Registered Mail, signature required, Attn: Front Desk
    US Mail (air) - Express, signature required, Attn: Front Desk

    Indicate PO # (purchase order) on the outside of the shipping carton.
    Ship declaring FULL VALUE

Address shipment as follows: Cedar Rapids Fulfillment Center #808
                                         7700 18th Street SW
                                        Cedar Rapids, IA 52404
                                           Attn: Front Desk

For additional details on packaging Fine Jewelry, please see Fine Jewelry section in this manual.

Hazardous Materials
Only ship articles which are authorized for Air Shipments as identified in the current International Air
Transport Association, Dangerous Goods Regulations. Copies of the regulations are available (800) 716-
6326. Questions about the regulations can be directed to IATA Customer Service (514) 844-3611. Only ship
by air those shipments which have been requested on the purchase orders to be shipped “air”. Articles not
authorized for air shipment must follow our shipping instructions for “surface or ground”. If your “air” purchase
order does not qualify for air shipment, please contact the Cedar Rapids Traffic Office (319) 846-4205/4206.
    The shipper is responsible for identifying, marking, labeling, and documenting each such shipment.
    The shipper must also comply with any additional FAA or other official requirements in effect at the time
    of shipping.
    Common types of hazardous materials are nail polish, perfume, and aerosol hair products.

Cosmetics
October 15 to April 15 ship Protective Service. Please write, “protect from freezing” on BOL. Air shipments
must comply with all IATA hazardous materials and FAA or other official regulations.

Edible Items
    If perishable (i.e. chocolate, candies) must label as “perishable” food item on Bill of Lading.
    If shipping perishables with a cold pack containing dry ice via air carrier, the shipper must declare the
    proper UN information, on dry ice, on label outside carton.
                Contact the Cedar Rapids Traffic Dept. (319) 846-4000 for routing instructions




                                               Advance Shipment Notification (ASN)

Advance Shipment Notification Forms
All vendors shipping merchandise to Nordstrom Direct must fax an Advance Shipment Notification
                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                              9
                                              2/1/2005
(A.S.N.) to our Fulfillment Center within 24 hours of each shipment leaving the vendor’s warehouse. (A
copy of the A.S.N. is located in this section of the manual.)

This is not an electronic or EDI ASN. Nordstrom Direct does not currently require or accept electronic
transmissions of ASN’s. Please FAX ASN document included in this section of the manual.

If you would like the option of using an e-mail version of this form, e-mail your request to
808ASN@nordstrom.com




                       ADVANCE SHIPMENT NOTIFICATION
SHEET___ OF ___                         NORDSTROM DIRECT                                 DATE: _______
                                           7700 18TH ST SW
                                      CEDAR RAPIDS, IA 52404
                                 (319) 846-4202 FAX: (319) 846-4208
                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                       10
                                              2/1/2005
                                E-mail      808ASN@Nordstrom.com

SHIPPER/VENDOR INFORMATION:

Nordstrom Vendor #____________________________

Company Name           ____________________________

Contact               ____________________________ Requested Ship Date _______________

Address             ____________________________ Telephone No.                       ________________

City, State, Zip    ____________________________            Fax No.                  ________________

SHIPMENT INFORMATION:

Total Cartons Being Shipped _________                     Shipping AIR or GROUND ____________

Total Carton Weight           _________                   Shipping Via (Carrier)       ______________
Nordstrom Use Only:
        Shipment Number          _____________________ Scheduled By ________________

        Appointment Number       _____________________ Date               ________________

        Appointment Date/Time _____________________

Purchase      Mixed SKU       Carton #      Nordstrom      Nordstrom          Size      Units
Order No.         (*)          (1 of 2)     Direct Item    Direct Color                 Shipped
(#)                                              #            Code




              Totals
                       ADVANCE SHIPMENT NOTIFICATION
SHEET___ OF ___                        NORDSTROM DIRECT                              DATE: _______
                                          7700 18TH ST SW
                                     CEDAR RAPIDS, IA 52404
                                (319) 846-4202 FAX: (319) 846-4208
                                 E-mail 808ASN@Nordstrom.com
                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                       11
                                             2/1/2005
Purchase      Mixed SKU        Carton #      Nordstrom      Nordstrom          Size     Units
Order No.         (*)           (1 of 2)     Direct Item    Direct Color                Shipped
(#)                                               #            Code




              Totals


                                                                                                  Routing
SHIPMENT DESTINATION
Store #808 - Nordstrom Direct Cedar Rapids Fulfillment Center

PICK-UP
Vendors are required to call the consolidator 24 hours prior to shipment for pick-up.

                    Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                     12
                                              2/1/2005
LARGE SHIPMENTS
For surface shipments over 10,000 lbs. Or over 1,200 cubic feet, and air shipments over 1,000 lbs., call the
Nordstrom Direct Fulfillment Center #808 Shipping and Routing Desk at (319) 846-4000.

CARRIER SELECTION
For most accurate carrier selection please reference the Nordstrom Routing Guide on the Nordstrom
Supplier website www.nordstromsupplier.com.

For additional routing questions contact the Nordstrom Direct Traffic Department at (319) 846-4000.




                   Shipping to DC 808 ~ Nordstrom Direct
General Rules
            •   Suppliers must call Carrier 24 hours prior to shipment for pickup and PO verification.
                Same-day pickup requests will not be accepted.
            •   Combine the weight of all cartons shipping on the same day.
            •   See the ‘Routing Guide Carriers’ pages for all carriers listed on this page and for further
                shipping instructions.
            •   For shipment weights greater than shown, or with any questions contact the DC Traffic Office
                to which you are sending merchandise.
            •   All shipments must be sent collect or when shipped via Airborne Express sent "Bill Receiver".
            •   Routing is subject to change, please check guide prior to each shipment.
                Address:
                                                7700 18th St. S.W.
                                             Cedar Rapids, IA 52404
                                Phone (319) 846-4000 ~ Fax (319) 846-4208



For carrier selection please reference the Nordstrom Routing Guide on the Nordstrom Supplier
website:

                        www.nordstromsupplier.com

                                                                                       Bills of Lading

UPS, Burlington Air Express or Emery Worldwide Express Shipments
1. Complete one airbill for all merchandise being shipped on the same day.
2. Unless otherwise specified, ship merchandise to:

                           Cedar Rapids Fulfillment Center #808
                           7700 18th Street S.W.
                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                              13
                                             2/1/2005
                              Cedar Rapids, IA 52404
                              Phone number: (319) 846-4000

3. List all Nordstrom Direct purchase orders and their respective department numbers in the airbill
   reference field Reference the purchase order and department numbers in the following format: PO# /
   Dept. # (i.e. DS490822/124, DS123456/45).
4. Select the appropriate collect billing method. See TABLE 10 on page 28 for each carrier's specific
   method type.
5. Select the service type indicated on the carrier selection table in the routing section of this
    manual for your designated carrier.

For Nordstrom Direct Consolidator Shipments (CTE, Colonial, Norcon or Gilbert)
If the routing instructions on page 26 instruct you to ship via CTE, Colonial, Norcon or Gilbert East, you
must do the following when creating a Nordstrom Direct master bill of lading:

 1. Fill out one master bill of lading per day and mark it COLLECT.
2. Number the bill of lading pages in the format x of y where y equals the total number of pages.
3. List the following:
♦       Shipper’s name and address:
♦       Final destination address:          Cedar Rapids Fulfillment Center #808
                                            7700 18th Street S.W.
                                            Cedar Rapids, IA 52404
♦       Total shipment weight
♦       Total shipment cubic measure
♦       Total cartons or, for GOH, pieces shipped
♦       Description of all articles shipped. The description must conform to classifications and
        tariffs in effect on the date of shipment.
4. Include the following information for each purchase order being shipped:
♦       Nordstrom Direct purchase order number(s)
♦       Department number
♦       Number of cartons or, for GOH shipment, number of garments
♦       Weight

    AIRBILL                                                   CARRIER
 INFORMATION                  Burlington Air            Emery Worldwide                 Airborne Express
    Field for PO #’s        Special Instructions/      Customer’s Reference                Internal Billing
                                Additional                  Number (s)                  Reference Information
                               Information
 Billing Method                   Collect                 Bill to Consignee               Bill To Consignee
Account Number                     None                          None                            None
     Service                   Second Day                    Second Day                      Second Day
                                                                   Purchase Order Verification
To avoid refusals and penalties, verify all purchase orders prior to shipping. Only valid purchase
orders will be accepted. Purchase order verification can be done in one of the following manners:

•     Carrier Verification: See below for a directory of participating carriers. Provide your designated
      carrier (see Shipping, Carrier Selection on page 36) with your Nordstrom Direct purchase order
      number(s), your name and your fax number.

                       Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                           14
                                                 2/1/2005
•   Fulfillment Center Verification: Nordstrom Direct Traffic Department (319) 846- 4000


                   CARRIER DIRECTORY FOR P.O. VERIFICATION
          Carrier                Fax Number                 Phone #
  Burlington Air Express        (973) 954-2010           (973) 954-2000
           CTE                  (323) 357-1724           (800) 540-0244
    Colonial Trucking           (508) 588-7356          (800) 362-4464
 Emery Worldwide Express        (913) 469-8715          (800) 447-0441
        Gilbert East          (908) 862-8796/98         (908) 474-0024
          Norcon                (513) 942-2798          (513) 942-5768
           DHL                        N/A               (877) 244-6261




Appendix A: Specifics on Shipping
1) Deviations from these instructions and routing without approval of the buyer and/or the Nordstrom
   Direct Traffic Department can result in a $25.00 handling charge which will be deducted from your
   invoice.
2) Residential shippers should call the D.C. #808 Traffic Department for routing assistance at (319) 846-
   4000
3) DECLARATION OF VALUE: DO NOT DECLARE VALUE ON SURFACE OR AIR SHIPMENTS
4) SHIPMENTS FORWARDED TO AN INCORRECT RECEIVING DESTINATION ADDRESS may be
                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                           15
                                             2/1/2005
      refused or rerouted via air to the correct destination. The seller will be responsible for freight charges
      and handling charges to correct destination.
5)    USE OF AUTHORIZED CARRIERS: The vendor agrees to pay all transportation charges if shipment
      is made via carrier or mode not authorized by Nordstrom Direct, regardless of whether Nordstrom
      Direct may incur lower or higher transportation costs. Failure to comply with Nordstrom Direct routing
      instructions (located in the shipping section of this manual) places full liability for loss of damage on
      the vendor.
6)    COLLECT/PREPAID SHIPMENTS: All shipments to Nordstrom Direct must be billed collect with one
      exception. Prepaid shipments can be made only when the vendor is paying ALL the transportation
      and liability costs.
7)    COD: Cash on Delivery shipments will be REFUSED.
8)    SAMPLES: (I.e., NOT FOR RESALE) ship freight prepaid, write, “SAMPLES” on outside of carton.
      Please refer to Sampling and Requirements section of this manual.
9)    If a CARRIER NAME APPEARS ON THE PURCHASE ORDER which differs from the authorized
      carrier stated in the Nordstrom Direct Procedures Manual, contact Cedar Rapids Fulfillment Center
      #808 Traffic Department at (319) 846-4000
10)   REFUSALS
      a) All verified purchase order numbers must be written on each B.O.L. (Bill of Lading). Invalid
           purchase orders and B.O.L without purchase order numbers will be refused at origin or
           destination. Such shipments may be returned at the SELLER’S EXPENSE and will be charged a
           penalty of $25.00 handling charge plus inbound freight charges. If accepted at destination a
           chargeback may be assessed.
      b) Purchase orders shipped before “EARLIEST SHIP DATE” or after the “CANCEL DATE” may be
           refused at origin or destination. ANY CHARGES INCURRED, (including redelivery and storage
           charges) DUE TO REFUSED MERCHANDISE WILL BE THE SELLERS LIABILITY. If accepted
           a chargeback may be issued for full freight, handling charge and/or late fees.
      c) Refused goods will be held on hand at a consolidator facility. The B.O.L shipper will be notified by
           a legal notice. If freight is undeliverable consolidator will exercise its lien to sell the goods after
           30 days if disposition and carriers accumulated freight accessorial and storage charges are not
           prepaid to consolidator. Shipper is subject to consolidator rates
      d) Seller bears full liability for loss or damage on refusals resulting from invalid purchase orders or
           improper shipping or packaging.
11)   VENDOR CLAIM RETURNS: Past cancel, ship too soon, over shipments, unauthorized substitutions
      or defective goods shipments will be returned at the SELLER’S EXPENSE and the seller will be
      charged a handling charge ($25.00) plus inbound freight charges. RETURN AUTHORIZATION
      stickers will not be used on these shipments. Seller bears full liability for loss or damage.
12)   SURFACE SHIPMENTS OF 7,000 LBS or 1,200 cubic feet or any air shipments over 50 lbs contact
      the Cedar Rapids Traffic Department (319) 846-4000 for authorization.




Appendix B: Glossary of Shipping Terms
1) Purchase Order (PO/P.O.): Legal binding contract between the buyer and vendor
2) F.O.B. Point: Freight On Board/Free On Board. A term of sale that defines who is to incur
     transportation charges for the shipment, who is to control the movement of the shipment, or where
     the title to the goods passes to the buyer; originally meant "free on board" ship.
FOB Factory: Title of goods passes to the buyer at the factory. Supplier pays zero (0) freight unless a
freight allowance is applicable.
FOB Consolidator: Title of goods passes to the buyer at the consolidation point. Supplier pays all freight
                      Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                                 16
                                                2/1/2005
costs to the point of consolidation, plus any additional freight costs, which are dependent on what is agreed
in the freight allowance field on the PO.
FOB Store: Title of goods passes to the buyer at the Nordstrom DC or Store. Supplier is liable for the
shipment until it reaches Nordstrom.
NOTE: FOB Store does NOT mean ship direct to store. See the Purchase Order field titled “FOB Point”.
3) Freight Allowance: Amount of freight vendor pays from the F.O.B. point; see chart below for
     definitions of freight allowances

                           “O” (zero)                   Vendor pays 0 (zero) freight from the
                                                        F.O.B. point.
                           “Full” or “Paid”             Vendor pays full freight from point of origin.
                           “1/2” or “Half”              Vendor pays ½ freight from F.O.B. point.
                           “Diff”                       Vendor pays the difference between
                                                        Nordstrom contracted surface and air rates
                                                        from F.O.B. point marked on air shipments
                                                        only.
                           “1/2 Diff”                   Vendor pays ½ the difference between
                                                        Nordstrom Contracted surface and air rates
                                                        from the F.O.B. point marked on air
                                                        shipments only.

4) Shipping Window: Early Ship and Cancel Date of Purchase Order (PO).
        On collect shipments to the distribution center, merchandise must be shipped on or between the
        early ship and cancel date from the factory.
        On Prepaid and house carrier shipments to the consolidator, merchandise must reach the
        consolidator on or between the early ship and cancel date.
5) Mode: Method of transportation. Determined by buyer and indicated on P.O. as surface or air.
6) Weight Break: Weight at which carrier determination is made.
7) Consolidator: Assembles interliner shipments, organizes merchandise by D.C. and P.O., manifests
    shipments by D.C. and transmits to each D.C. to pre-alert them of the merchandise and delivery date.
    Releases freight by assembly to the Distribution Center.
8) D.C.: Distribution Center. Nordstrom Direct distribution center #808 (also referred to as Fulfillment
    Center#808 and/or Store #808 processes all merchandise for Nordstrom Direct. All Nordstrom Direct
    orders must be shipped to the Cedar Rapids Fulfillment Center # 808 at 7700 18th Street SW, Cedar
    Rapids, IA 52404.
9) Volume Shipment: Surface shipments over 7,000 lbs. or 1,200 cubic feet or air shipments over
    1,000 lbs. To make a volume shipment call the traffic department at D.C. #808 at (319) 846-4000.
    Be prepared to provide all P.O. #’s, pieces, weight and cubic measure of the shipment.
10) Cubic Feet: Length X Width X Height of cartons.
11) B.O.L.: Bill of Lading is a contract of carriage document, it serves three purposes; a) to set terms ad
    conditions of the contract. B) to serve as a receipt for the goods transported. C) to serve as
    documentary evidence of the party entitled to deliver.




                   Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts                               17
                                             2/1/2005
SECTION 8                                                                        FINANCIAL

Invoices and Billing Information
Non-compliance offset fees
Example of Vendor Letter
Example of Vendor History Reporting




                Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts           0
                                          2/1/2005
                                                                                       Invoices
Important Note: As of January 2001, all vendors will be required to submit invoices
electronically. For EDI mapping please refer to the Technology Requirements section of the
Nordstrom Inc. Supplier Compliance manual. This manual can be accessed through the
worldwide web at www.nordstromsupplier.com. For additional information please contact the
supplier compliance hotline at 1-877-444-1313.

Invoicing Instructions: Enrollment and testing are required prior to sending an invoice (810)
transmission. Suppliers can do EDI in-house or utilize a 3rd party service bureau. Please contact
our EDI Invoicing Hotline at 1-206-805-5354 for enrollment information and testing procedures.
Suppliers should allow 1-2 months for testing.

Non-compliance: A charge, per invoice is assessed for each paper invoice sent to Accounts
Payable. Enrollment and testing are required prior to sending an invoice (810) transmission.

Required Information: The following information is required on Merchandise Invoices:
    • Purchase Order (PO) Number
    • Vendor Number
    • Invoice Date
    • Unique Invoice Number
    • Department Number
    • Packing Slip Number
    • Payment Terms
    • Ship Date
    • Store Number and Distribution Center Number
    • Style Numbers and the Number of Units per style
    • Unit Cost and Total Cost per style
    • Total Units Shipped (per invoice, excluding ‘back ordered’ or ‘no charge’ items)
    • Total Cost (separate out any special charges. Freight must be billed separately to the
        Distribution Center)

Note: Invoices missing any of the required fields will be rejected

Create one invoice for each purchase order.

Invoice and Claim Inquiries: To better serve your account we request all invoice and claim
inquiries to be sent in writing to:

                 Nordstrom Direct Accounts Payable
                 1700 7th Avenue, Suite 300
                 Seattle, WA 98101
                 Or e-mail: DirectAP@nordstrom.com

Freight Invoices: Any freight charges must be invoiced on a separate document. The freight
invoice must be delivered with the merchandise to the Cedar Rapids Fulfillment Center. DO
NOT include freight charges on a merchandise invoice. If freight is included, the cost of freight
plus a $25.00 charge will be assessed.

Contact: For questions regarding invoice preparation, contact Nordstrom Supplier
Compliance at 1-877-444-1313 or access the Nordstrom Supplier Compliance Manual at
www.nordstromsupplier.com.

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                                                     Non-Compliance Offset Fees
Penalties and Cancellations

On-Time Delivery
Our commitment to customer service is dependent on the immediate availability of merchandise
when the customer orders. The increased shipping and handling costs, high return rates on
back-ordered items and general loss of credibility imply on-time delivery of all purchase orders is
the highest priority.

Due to the time-sensitive nature of Catalog and Internet business, it is imperative for
merchandise to arrive in our facility by the cancel date listed on your purchase order.
Merchandise that is not completely available on the agreed upon date will be subject to
cancellation or the following invoice penalties. These penalties are clearly stated on each
purchase order listed just below the cancel date. Please be aware that an extension does not
necessarily relieve the vendor of late fee penalties.

                                     Days Late
                            2-7     Business days            3%
                           8-14     Business days            5%
                          15-21     Business days           10%
                          22-30     Business days           20%


Chargback or Offset Fees:
 All non-compliance offset fees are based on a rate of $60.00 per labor hour. A detailed report
called a Vendor History Report will be mailed to the correspondence address on file for your
company. Offset fees are categorized into the following headings and subheadings:

Quality
Audit summaries detailing quality failures will be e-mailed by Nordstrom Direct Product and Fit
Specialists to key staff within your organization. Please work directly with the Product and Fit
Specialist to resolve any quality issues.

The following failure codes are used to indicate the reason(s) a 100% inspection fee have been
applied against a particular purchase order or shipment. These same failure codes may apply in
the event a bin check is necessary (see Quality Standards section of this manual for details).
Fees in addition to the $60.00 per hour labor fee may apply if additional re-work is necessary.

 100% Inspection
   • Color Faults
   • Dirt/Oil Faults
   • Fabric/Material Faults
   • Labeling Faults
   • Measurement Faults
   • Sewing/Assembly Faults

Inbound
The following failure codes are used to indicate the reason a $60.00 per labor hour fee has been
applied against a particular purchase order or shipment. Inbound failure codes are specifically
related to packing and shipping requirements (see Packing and Shipping section of this manual
for details). Offset fees will be charged for the labor hours it takes to correct the shipment in
order to process your order through the Cedar Rapids Fulfillment Center.

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                                                    Non-Compliance Offset Fees
Inbound (cont.)
Documentation
    • Missing or incomplete packing slip
    • Fax or e-mail ASN form
Packing
    • Cartons over maximum weight limit
    • Mixed SKU’s in cartons
    • Mixed PO’s in cartons
Packaging/Labeling
    • Polybag error
          Too thin
          Not sealed
          Exceeds maximum size
    • Missing or incorrect barcode sticker
    • Incorrectly shipped hanging
    • Incorrectly shipped flat
    • Incorrect hanger
    • Pricing/Price tags

Shipping Cartons
    • Non-compliant carton (dimensions, perforations, stability etc.)
    • Incorrect carton width (wide vs. narrow)
    • Missing or incomplete carton markings


Miscellaneous Offset Fees
The following offset fees may be issued for violations in the following areas. Please refer to
specific sections of the Procedures Manual to ensure you are in complete compliance with all
requirements.

Routing
   • Shipping with non-approved carrier - $25.00 plus full freight
   • Wrong destination - $25.00 plus full freight
   • Miscellaneous - $25.00 plus full freight

Order Fulfillment
   • Customer backorders due to vendor negligence - $10 -$25 per unit or # of backorders
   • Customer cancellations due to vendor negligence - $10 -$25 per unit or # of backorders
   • Customer correspondence due to vendor negligence – cost of letter, postage and labor

Merchandise Returns
   • Refusal of overages - $25.00 + freight +$60.00 per hour labor
   • Refusal of substitutions - $25.00 + freight +$60.00 per hour labor
   • Defective claims returned - $150 plus claim to remain valid, goods may be destroyed




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                                                                                     Reporting

Audit Summary
Details related to a quality or inbound related failure resulting in offset fees will be e-mailed to
key staff members within your organization. We ask you to provide us with e-mail addresses for
key sales people, production staff as well as shipping or operations manager(s). For additions,
changes or updates please contact the vendor compliance area at (206) 303-6118.




Vendor History Report
Once a month, vendors will be mailed a copy of their Non-Compliance Vendor History Report.
This gives a breakdown of offset fees issued by purchase order. The report is your
documentation that a chargeback has taken place. Please contact the vendor compliance area
at (206) 303-6118 with any questions regarding this report.

See next page for example of Vendor History reporting.




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                                              2/1/2005
                                Nordstrom Direct



Fred Flintstone
Accounts Receivable
Flintstones, Inc.
123 Limestone Avenue
Bedrock, CA 99999


Dear Fred:


Enclosed is current documentation of non-compliance chargebacks for November 2002.
These charges were incurred as a result of shipping, packing, labeling, or quality errors.

The media date listed in the far right column of the enclosed sheet will correspond with
the media date on your check. Please refer to the Nordstrom Direct Procedures
Manual for a complete listing of violations and their corresponding chargebacks.

Please share the information on these documents with your Operations, Production, and
Shipping Departments. We would like to see all vendors be 100% compliant with the
Nordstrom Direct shipping/packaging guidelines.

Feel free to contact me to discuss any questions or concerns you may have regarding this
information.


Sincerely,

Vendor Compliance Coordinator
Nordstrom Direct
Phone: (206) 303-6118
Fax:   (206) 303-6129




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                                                  Vendor History Report




Dept. Vendor                                  Shipment Perf.                                          Item       Media
#     #      Vendor Name     PO #             #        Code             Non-Compliant Description     #    $$$   Date
             FLINTSTONES     00000061630                                NON-COMPLIANT
356   12345 INC.             3                000048272 407             LABELS(DEPT/STY/ITEM)         23982 $0.00 1102dsd
             FLINTSTONES     00000061630                                                                          1102dsd
356   12345 INC.             3                000048272 601             ASN NOT RECEIVED              23982 $0.00
             FLINTSTONES     00000061630                                                                          1102dsd
356   12345 INC.             3                000048272 602             SHIPPING CARTONS              23982 $0.00
             FLINTSTONES     00000061630                                                                    $22.2 1102dsd
356   12345 INC.             3                000048272 603             IMPROPER CTN DIMENSIONS       23982     5
             FLINTSTONES     00000061630                                                                          1102dsd
356   12345 INC.             3                000048272 610             PACKAGING/LABELING            23982 $0.00
             FLINTSTONES     00000061630                                                                    $42.0 1102dsd
356   12345 INC.             3                000048272 617             MISSING BARCODE STICKERS      23982     0
                                                                                                            $64.2
            FLINTSTONES INC. total                                                                              5




                                     Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts

                                                               2/1/2005

				
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