Document:

The Valley National Bancorp 1999 Long-Term Stock Incentive Plan

 Exhibit 10.D 
 VALLEY NATIONAL BANCORP 
 1999 LONG-TERM STOCK INCENTIVE PLAN 
 (Adopted by Directors January 19, 1999) 
 Adopted by Shareholders April 7, 1999) 
 (As Amended by Directors April 6, 2000) 
 (As Amended by Directors May 1, 2001) 
 (As
Clarified by Directors through June 19, 2001) 
 (As Amended by Directors August 20, 2002) 
 (As Amended by Directors April 9, 2003) 
 (As Amended by Directors March 16, 2004) 
 (As Amended by Directors December 14, 2004) 
 (As Amended by Directors July 20, 2005) 
 (As Amended by Directors December 31, 2005) 
 (As Amended by Directors February 14, 2006) 
 (As Approved by Shareholders April 5, 2006) 
 (As Amended by Directors November 13, 2006) 
 (As Amended by Directors April 11, 2007) 
 (As Amended by Directors November 14, 2007) 
 1.
Purpose. The purpose of the Plan is to provide additional incentive to those officers and key employees of the Company and its Subsidiaries whose substantial contributions are essential to the continued growth and success of the
Company’s business in order to strengthen their commitment to the Company and its Subsidiaries, to motivate such officers and employees to faithfully and diligently perform their assigned responsibilities and to attract and retain competent and
dedicated individuals whose efforts will result in the long-term growth and profitability of the Company. To accomplish such purposes, the Plan provides that the Company may grant Incentive Stock Options, Nonqualified Stock Options, Restricted Stock
Awards and Stock Appreciation Rights. 
 2. Definitions. For purposes of this Plan: 
 (a) “Agreement” means the written agreement between the Company and an Optionee or Grantee evidencing the grant of an Option or Award and
setting forth the terms and conditions thereof. 
 (b) “Award” means a grant of Restricted Stock or Stock Appreciation Rights, or
either or both of them. 
 (c) “Bank” means Valley National Bank, a Subsidiary. 
 (d) “Board” means the Board of Directors of the Company. 

 (e) “Cause” means the willful failure by an Optionee or Grantee to perform his duties with the
Company or with any Subsidiary or the willful engaging in conduct which is injurious to the Company or any Subsidiary, monetarily or otherwise. 
 (f) “Change in Capitalization” means any increase, reduction, change or exchange of Shares for a different number or kind of shares or other securities of the Company by reason of a reclassification, recapitalization, merger,
consolidation, reorganization, issuance of warrants or rights, stock dividend, stock split or reverse stock split, combination or exchange of shares, repurchase of shares, change in corporate structure or otherwise. 
 (g) “Change in Control” means any of the following events: (i) when the Company or a Subsidiary acquires actual knowledge that any person
(as such term is used in Sections 13(d) and 14(d)(2) of the Exchange Act), other than an affiliate of the Company or a Subsidiary or an employee benefit plan established or maintained by the Company, a Subsidiary or any of their respective
affiliates, is or becomes the beneficial owner (as defined in Rule 13d-3 of the Exchange Act) directly or indirectly, of securities of the Company representing more than twenty-five percent (25%) of the combined voting power of the
Company’s then outstanding securities (a “Control Person”), (ii) upon the first purchase of the Company’s common stock pursuant to a tender or exchange offer (other than a tender or exchange offer made by the Company, a
Subsidiary or an employee benefit plan established or maintained by the Company, a Subsidiary or any of their respective affiliates), (iii) the consummation of (A) a transaction, other than a Non-Control Transaction, pursuant to which the
Company is merged with or into, or is consolidated with, or becomes the subsidiary of another corporation, (B) a sale or disposition of all or substantially all of the Company’s assets or (C) a plan of liquidation or dissolution of
the Company, (iv) if during any period of two (2) consecutive years, individuals (the “Continuing Directors”) who at the beginning of such period constitute the Board cease for any reason to constitute at least 60% thereof or,
following a Non-Control Transaction, 60% of the board of directors of the Surviving Corporation; provided that any individual whose election or nomination for election as a member of the Board (or, following a Non-Control Transaction, the
board of directors of the Surviving Corporation) was approved by a vote of at least two-thirds of the Continuing Directors then in office shall be considered a Continuing Director, or (v) upon a sale of (A) common stock of the Bank if
after such sale any person (as such term is used in Section 13(d) and 14(d)(2) of the Exchange Act) other than the Company, an employee benefit plan established or maintained by the Company or a Subsidiary, or an affiliate of the Company or a
Subsidiary, owns a majority of the Bank’s common stock or (B) all or substantially all of the Bank’s assets (other than in the ordinary course of business). No person shall be considered a Control Person for purposes of clause
(i) above if (A) such person is or becomes the beneficial owner, directly or indirectly, of more than ten percent (10%) but less than twenty-five percent (25%) of the combined voting power of the Company’s then outstanding
securities if the acquisition of all voting securities in excess of ten percent (10%) was approved in advance by a majority of the Continuing Directors then in office or (B) such person acquires in excess of ten percent (10%) of the
combined voting power of the Company’s then outstanding voting securities in violation of law and by order of a court of competent jurisdiction, settlement or otherwise, disposes or is required to dispose of all securities acquired in violation
of law. For purposes of this paragraph: (I) the Company will be deemed to have become a subsidiary of another corporation if any other corporation (which term shall include, in addition to a corporation, a limited liability company, 

 
partnership, trust, or other organization) owns, directly or indirectly, 50 percent or more of the total combined outstanding voting power of all classes of
stock of the Company or any successor to the Company; (II) “Non-Control Transaction” means a transaction in which the Company is merged with or into, or is consolidated with, or becomes the subsidiary of another corporation pursuant to a
definitive agreement providing that at least 60% of the directors of the Surviving Corporation immediately after the transaction are persons who were directors of the Company on the day before the first public announcement relating to the
transaction; (III) the “Surviving Corporation” in a transaction in which the Company becomes the subsidiary of another corporation is the ultimate parent entity of the Company or the Company’s successor; and (IV) the “Surviving
Corporation” in any other transaction pursuant to which the Company is merged with or into another corporation is the surviving or resulting corporation in the merger or consolidation. 
 (h) “Code” means the Internal Revenue Code of 1986, as amended. 
 (i) “Committee” means a committee consisting solely of two (2) or more directors who are Non-Employee Directors (as defined in Rule 16b-3 of the Exchange Act as it may be amended from time to time) of
the Company and outside directors as defined pursuant to Section 162(m) of the Code (as it may be amended from time to time) appointed by the Board to administer the Plan and to perform the functions set forth herein. Directors appointed by the
Board to the Committee shall have the authority to act notwithstanding the failure to be so qualified. 
 (j) “Company” means Valley
National Bancorp, a New Jersey corporation. 
 (k) This Subsection (k) intentionally left blank. 
 (l) “Eligible Employee” means any officer or other key employee of the Company or a Subsidiary designated by the Committee as eligible to
receive Options or Awards subject to the conditions set forth herein. 
 (m) “Escrow Agent” means the escrow agent under the Escrow
Agreement, designated by the Committee. 
 (n) “Escrow Agreement” means an agreement between the Company, the Escrow Agent and a
Grantee, in the form specified by the Committee, under which shares of Restricted Stock awarded pursuant hereto shall be held by the Escrow Agent until either (a) the restrictions relating to such shares expire and the shares are delivered to
the Grantee or (b) the Company reacquires the shares pursuant hereto and the shares are delivered to the Company. 
 (o) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
 (p) “Fair Market Value” means the fair market value of the
Shares as determined by the Committee in its sole discretion; provided, however, that (A) if the Shares are admitted to quotation on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) or other
comparable quotation system and have been designated as a National Market System (“NMS”) security, Fair Market Value on any date shall be the last sale price reported for the Shares on such system on such date or on the last day preceding
such date on 

 
which a sale was reported, (B) if the Shares are admitted to quotation on NASDAQ and have not been designated a NMS security, Fair Market Value on any
date shall be the average of the highest bid and lowest asked prices of the Shares on such system on such date, or (C) if the Shares are admitted to trading on a national securities exchange, Fair Market Value on any date shall be the last sale
price reported for the Shares on such exchange on such date or on the last date preceding such date on which a sale was reported. 
 (q)
“Grantee” means a person to whom an Award has been granted under the Plan. 
 (r) “Incentive Stock Option” means an Option
within the meaning of Section 422 of the Code. 
 (s) “Nonqualified Stock Option” means an Option which is not an Incentive
Stock Option. 
 (t) “Option” means an Incentive Stock Option, a Nonqualified Stock Option, or either or both of them. 

(u) “Optionee” means a person to whom an Option has been granted under the Plan. 
 (v) “Parent” means any corporation in an unbroken chain of corporations ending with the Company, if each of the corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of all classes of stock of one of the other corporations in such chain. 
 (w) “Plan” means the Valley National Bancorp 1999 Long-Term Stock Incentive Plan as set forth in this instrument and as it may be amended from time to time. 
 (x) “Restricted Stock” means Shares issued or transferred to an Eligible Employee which are subject to restrictions as provided in
Section 8 hereof. 
 (aa) “Retirement” means the retirement from active employment with the Company of an employee or officer
but only if such person meets all of the requirements contained in clause (i) or contained in clause (ii) below: 
 (i) he has a
minimum combined total of years of service and age equal to eighty (80); he is age sixty-two (62) or older; and he provides six (6) months’ prior written notice to the Company of the retirement; or 
 (ii) he has a minimum of five (5) years of service; he is age sixty-five (65) or older and he provides six (6) months’ prior written
notice to the Company of the retirement. 
 “Years of Service” shall be defined the same way as it is under the Company’s pension plan,
provided that for this purpose years of service will mean only employment by the Company, and will not include employment by any company or entity acquired by the Company for the period prior to its acquisition by the Company. An employee or officer
who retires but fails to meet such requirements shall not be deemed to be within the definition of “Retirement” for any purpose under this Plan or any Award or Option granted thereunder; provided, however, after a Change in Control
transaction, no prior notice of a Retirement shall be required for purposes of 

 
this Plan only and any Optionee (as defined in the Plan) who meets all of the other conditions contained in clause (i) or in clause (ii), but is
terminated without Cause, shall be deemed to meet all the conditions for Retirement for purposes of the Plan only and shall be deemed to have terminated employment due to Retirement for purposes of this Plan only. 
 (ab) “Shares” means the common stock, no par value, of the Company (including any new, additional or different stock or securities resulting
from a Change in Capitalization). 
 (ac) “Stock Appreciation Right” means a right to receive all or some portion of the increase in
the value of shares of Common Stock as provided in Section 7 hereof. 
 (ad) “Subsidiary” means any corporation in an unbroken
chain of corporations, beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 (ae) “Successor Corporation” means a corporation, or a parent or subsidiary thereof, which issues or
assumes a stock option in a transaction to which Section 425(a) of the Code applies. 
 (af) “Ten-Percent Shareholder” means an
eligible Employee, who, at the time an Incentive Stock Option is to be granted to him, owns (within the meaning of Section 422(b)(6) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, a Parent or a Subsidiary within the meaning of Section 422(b)(6) of the Code. 
  

	3.	Administration. 

 (a) The Plan shall be administered
by the Committee which shall hold meetings at such times as may be necessary for the proper administration of the Plan. The Committee shall keep minutes of its meetings. A majority of the Committee shall constitute a quorum and a majority of a
quorum may authorize any action. Each member of the Committee shall be a Non-Employee Director (as defined in Rule 16b-3 of the Exchange Act as it may be amended from time to time) and an outside director as defined pursuant to Section 162(m)
of the Code as it may be amended from time to time. No failure to be so qualified shall invalidate any Option or Award or any action or inaction under the Plan. No member of the Committee shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan, the Options or the Awards, and all members of the Committee shall be fully indemnified by the Company with respect to any such action, determination or interpretation. 
 Subject to the express terms and conditions set forth herein, the Committee shall have the power from time to time: 
 (1) to determine those Eligible Employees to whom Options shall be granted under the Plan and the number of Incentive Stock Options and/or Nonqualified
Options to be granted to each eligible Employee and to prescribe the terms and conditions (which need not be identical) of each Option, including the purchase price per share of each Option; 

 (2) to select those Eligible Employees to whom Awards shall be granted under the Plan and to determine
the number of shares of Restricted Stock and/or Stock Appreciation Rights to be granted pursuant to each Award, the terms and conditions of each Award, including the restrictions or performance criteria relating to such shares or rights, the
purchase price per share, if any, of Restricted Stock and whether Stock Appreciation Rights will be granted alone or in conjunction with an Option; 
 (3) to construe and interpret the Plan and the Options and Awards granted thereunder and to establish, amend and revoke rules and regulations for the administration of the Plan, including, but not limited to, correcting any defect or
supplying any omission, or reconciling any inconsistency in the Plan or in any Agreement, in the manner and to the extent it shall deem necessary or advisable to make the Plan fully effective, and all decisions and determinations by the Committee in
the exercise of this power shall be final and binding upon the Company or a Subsidiary, the Optionees and the Grantees, as the case may be; 
 (4) to determine the duration and purposes for leaves of absence which may be granted to an Optionee or Grantee without constituting a termination of employment or service for purposes of the Plan; and 
 (5) generally, to exercise such powers and to perform such acts as are deemed necessary or advisable to promote the best interests of the Company with
respect to the Plan. 
 4. Stock Subject to Plan. 
 (a) The maximum number of Shares that may be issued or transferred pursuant to all Options and Awards under this Plan is 6,601,550 of which not more than 660,155 Shares may be issued or transferred pursuant to Options and/or Awards to any
one Eligible Employee. Subject to the foregoing aggregate limitations, the maximum number of Shares (i) that may be issued or transferred pursuant to Options or Awards for Incentive Stock Options, Non-Qualified Stock Options and Stock
Appreciation Rights shall be 5,016,639 and (ii) that may be issued or transferred pursuant to Awards of Restricted Stock shall be 1,584,911. In each case, upon a Change in Capitalization after the adoption of this Plan by the Board on
January 19, 1999, the Shares shall be adjusted to the number and kind of Shares of stock or other securities existing after such Change in Capitalization. 
 The number of Shares set forth herein includes Shares awarded pursuant to all Options and Awards issued or transferred under this Plan prior to the date of the amendment to this section and the number of Shares takes
into account all Changes in Capitalization prior to January 18, 1999. 
 (b) Whenever any outstanding Option or portion thereof expires,
is cancelled or is otherwise terminated (other than by exercise of the Option or any related Stock Appreciation Right), the shares of Common Stock allocable to the unexercised portion of such Option may again be the subject of Options and Awards
hereunder. 

 (c) Whenever any Shares subject to an Award or Option are resold to the Company, or are forfeited for any
reason pursuant to the terms of the Plan, such Shares may again be the subject of Options and Awards hereunder. 
 5. Eligibility. Subject to the
provisions of the Plan, the Committee shall have full and final authority to select those Eligible Employees who will receive Options and/or Awards but no person shall receive any Options or Awards unless he is an employee of the Company or a
Subsidiary at the time the Option or Award is granted. 
 6. Stock Options. The Committee may grant Options in accordance with the Plan, the terms and
conditions of which shall be set forth in an Agreement. Each Option and Option Agreement shall be subject to the following conditions: 
 (a)
Purchase Price. The purchase price or the manner in which the purchase price is to be determined for Shares under each Option shall be set forth in the Agreement, provided that the purchase price per Share under each Incentive Stock Option
shall not be less than 100% of the Fair Market Value of a Share at the time the Option is granted (110% in the case of an Incentive Stock Option granted to a Ten-Percent Shareholder) and under each Nonqualified Stock Option shall not be less than
100% of the Fair Market Value of a Share at the time the Option is granted. 
 (b) Duration. Options granted hereunder shall be for
such term as the Committee shall determine, provided that (i) no Incentive Stock Option shall be exercisable after the expiration of ten (10) years from the date it is granted (five (5) years in the case of an Incentive Stock Option
granted to a Ten-Percent Shareholder) and (ii) no Nonqualified Stock Option shall be exercisable after the expiration of ten (10) years and one (1) day from the date it is granted. The Committee may, subsequent to the granting of any
Option, extend the term thereof but in no event shall the term as so extended exceed the maximum term provided for in the preceding sentence. 
 (c) Non-Transferability. No Option granted hereunder shall be transferable by the Optionee to whom granted otherwise than by will or the laws of descent and distribution, and an Option may be exercised during the lifetime of such
Optionee only by the Optionee or his guardian or legal representative. The terms of such Option shall be binding upon the beneficiaries, executors, administrators, heirs and successors of the Optionee. 
 (d) Stock Options; Vesting. Subject to Section 6(h) hereof, each Option shall be exercisable in such installments (which need not be equal)
and at such times as may be designated by the Committee and set forth in the Option Agreement. Unless otherwise provided in the Agreement, to the extent not exercised, installments shall accumulate and be exercisable, in whole or in part, at any
time after becoming exercisable, but not later than the date the Option expires. Upon the death or Retirement of an Optionee, all Options shall become immediately exercisable. Notwithstanding the foregoing, with respect only to Options granted
between November 13, 2006 and September 20, 2007, upon the Retirement of an Optionee who is an officer at the Senior Vice President level or above, only those Options that were scheduled to vest (i) during the calendar year in which
the Retirement occurs, and (ii) in the calendar year following the calendar year in which the Retirement occurs, will become fully vested and immediately exercisable. With respect to Options granted after 

 
September 20, 2007, upon the Retirement of an Optionee, all Options shall become immediately exercisable. Notwithstanding the foregoing, the Committee
may accelerate the exercisability of any Option or portion thereof at any time. 
 (e) Method of Exercise. The exercise of an Option
shall be made only by a written notice delivered in person or by mail to the Secretary of the Company at the Company’s principal executive office, specifying the number of Shares to be purchased and accompanied by payment therefor and otherwise
in accordance with the Agreement pursuant to which the Option was granted. The purchase price for any shares purchased pursuant to the exercise of an Option shall be paid in full upon such exercise in cash, by check, or, at the discretion of the
Committee and upon such terms and conditions as the Committee shall approve, by transferring Shares to the Company. Any Shares transferred to the Company as payment of the purchase price under an Option shall be valued at their Fair Market Value on
the day preceding the date of exercise of such Option. If requested by the Committee, the Optionee shall deliver the Agreement evidencing the Option and the Agreement evidencing any related Stock Appreciation Right to the Secretary of the Company
who shall endorse thereon a notation of such exercise and return such Agreement to the Optionee. Not less than 100 Shares may be purchased at any time upon the exercise of an Option unless the number of Shares so purchased constitutes the total
number of Shares then purchasable under the Option. 
 (f) Rights of Optionees. No Optionee shall be deemed for any purpose to be the
owner of any Shares subject to any Option unless and until (i) the Option shall have been exercised pursuant to the terms thereof, (ii) the Company shall have issued and delivered the Shares to the Optionee, and (iii) the
Optionee’s name shall have been entered as a shareholder of record on the books of the Company. Thereupon, the Optionee shall have full voting, dividend and other ownership rights with respect to such Shares. 
 (g) Termination of Employment. In the event that an Optionee ceases to be employed by the Company or any Subsidiary, any outstanding Options held
by such Optionee shall, unless the Option Agreement evidencing such Option provides otherwise, terminate as follows: 
 (1) If the
Optionee’s termination of employment is due to his death the Option shall be exercisable for a period of one (1) year following such termination of employment, and shall thereafter terminate; provided, however, that the Company
shall have given written notice to the Optionee’s designated beneficiary for the Plan as permitted under Section 17(c) or, if there is no designated beneficiary for the Plan, then to the Optionee’s designated beneficiaries under the
Company’s group term life insurance plan, within the six (6) months following the Optionee’s termination of employment; 
 (2)
If the Optionee’s termination of employment is by the Company or a Subsidiary for Cause or is by the Optionee (other than due to the Optionee’s Retirement), the Option shall terminate on the date of the Optionee’s termination of
employment; 
 (3) If the termination of employment is due to the Optionee’s Retirement, the Option shall be exercisable for the
remaining term of the Option and thereafter shall be unaffected by the death of the Optionee. (An Optionee who exercises his or her Options more than 90 days after the termination of employment due to Retirement shall acknowledge that the Options so
exercised will not be Incentive Stock Options.); and 

 (4) If the Optionee’s termination of employment is for any other reason (including an
Optionee’s ceasing to be employed by a Subsidiary as a result of the sale of such Subsidiary or an interest in such Subsidiary), the Option (to the extent exercisable at the time of the Optionee’s termination of employment) shall be
exercisable for a period of ninety (90) days following such termination of employment, and shall thereafter terminate. 
 Notwithstanding
the foregoing, the Committee may provide, either at the time an Option is granted or thereafter, that the Option may be exercised after the periods provided for in this Section 6(g), but in no event beyond the term of the Option to the extent
that the exercise period is extended by the Committee after the Option is granted, such extension may only be made in accordance with Section 409A of the Code. 
 (h) Effect of Change in Control. In the event of a Change in Control, all Options outstanding on the date of such Change in Control shall become immediately and fully exercisable. 
 (i) Substitution and Modification. Subject to the terms of the Plan, the Committee may modify outstanding Options or accept the surrender of
outstanding Options (to the extent not exercised) and grant new Options in substitution for them. Notwithstanding the foregoing, no modification of an Option shall alter or impair any rights or obligations under the Option without the
Optionee’s consent, except as provided for in this Plan or the Agreement. 
 7. Stock Appreciation Rights. The Committee may, in its discretion,
either alone or in connection with the grant of an Option, grant Stock Appreciation Rights in accordance with the Plan, the terms and conditions of which shall be set forth in an Agreement. If granted in connection with an Option, a Stock
Appreciation Right shall cover the same shares covered by the Option (or such lesser number of shares as the Committee may determine) and shall, except as provided in this Section 7, be subject to the same terms and conditions as the related
Option. 
 (a) Time of Grant. A Stock Appreciation Right may be granted: 
 (i) at any time if unrelated to an Option; or 
 (ii) if related to an Option, either at the time of grant, or at any time thereafter during the term of the Option. 
 (b) Stock
Appreciation Rights Related to an Option. 
 (1) Payment. A Stock Appreciation Right granted in connection with an Option shall
entitle the holder thereof, upon exercise of the Stock Appreciation Right or any portion thereof, to receive payment of an amount computed pursuant to Section 7(b)(iii). 
 (2) Exercise. Subject to Section 7(f), a Stock Appreciation Right granted in connection with an Option shall be exercisable at such time or
times and only to the extent that the related Option is exercisable, and will not be transferable except to the extent the related 

 
Option may be transferable. A Stock Appreciation Right granted in connection with an Incentive Stock Option shall be exercisable only if the Fair Market
Value of a Share on the date of exercise exceeds the purchase price specified in the related Incentive Stock Option. 
 (3) Amount
Payable. Except as otherwise provided in Section 7(g), upon the exercise of Stock Appreciation Right related to an Option, the Grantee shall be entitled to receive an amount determined by multiplying (A) the excess of the Fair Market
Value of a Share on the date of exercise of such Stock Appreciation Right over the per Share purchase price under the related Option, by (B) the number of Shares as to which such Stock Appreciation Right is being exercised. Notwithstanding the
foregoing, the Committee may limit in any manner the amount payable with respect to any Stock Appreciation Right by including such a limit in the Agreement evidencing the Stock Appreciation Right at the time it is granted. 
 (4) Treatment of Related Options and Stock Appreciation Rights Upon Exercise. Except as provided in Section 7(b)(v), (A) upon the exercise of a
Stock Appreciation Right granted in connection with an Option, the Option shall be cancelled to the extent of the number of Shares as to which the Stock Appreciation Right is exercised and (B) upon the exercise of an Option granted in
connection with a Stock Appreciation Right, the Stock Appreciation Right shall be cancelled to the extent of the number of Shares as to which the Option is exercised. 
 (5) Simultaneous Exercise of Stock Appreciation Right and Option. The Committee may provide, either at the time a Stock Appreciation Right is granted in connection with a Nonqualified Stock Option or thereafter
during the term of the Stock Appreciation Right, that, subject to Section 7(f), upon exercise of such Option, the Stock Appreciation Right shall automatically be deemed to be exercised to the extent of the number of Shares as to which the
Option is exercised. In such event, the Grantee shall be entitled to receive the amount described in Section 7(b)(iii) or 7(g) hereof, as the case may be (or some percentage of such amount if so provided in the Agreement evidencing the Stock
Appreciation Right), in addition to the Shares acquired pursuant to the exercise of the Option. If a Stock Appreciation Right Agreement contains an automatic exercise provision described in this Section 7(b)(v) and the Option or any portion
thereof to which it relates is exercised within six (6) months from the date the Stock Appreciation Right is granted, such automatic exercise provision shall not be effective with respect to that exercise of the Option. The inclusion in an
Agreement evidencing a Stock Appreciation Right of a provision described in this Section 7(b)(v) may be in addition to and not in lieu of the right to exercise the Stock Appreciation Right as otherwise provided herein and in the Agreement.

 (c) Stock Appreciation Rights Unrelated to an Option. The Committee may grant to Eligible Employees Stock Appreciation Rights
unrelated to Options. Stock Appreciation Rights unrelated to Options shall contain such terms and conditions as to exercisability, vesting and duration as the Committee shall determine, but in no event shall they have a term of greater than ten
(10) years. Upon the death or Retirement of a Grantee, all Stock Appreciation Rights shall become immediately exercisable. Upon the death of a Grantee, the Stock Appreciation Rights held by that Grantee shall be exercisable for a period of one
(1) year 

 
following such termination of employment, and shall thereafter terminate. Upon the Retirement of a Grantee, the Stock Appreciation Rights held by that
Grantee shall be exercisable for a period of ninety (90) days following such termination of employment, and shall thereafter terminate. Except as otherwise provided in Section 7(g), the amount payable upon exercise of such Stock
Appreciation Rights shall be determined in accordance with Section 7(b)(iii), except that “Fair Market Value of a Share on the date of the grant of the Stock Appreciation Right” shall be substituted for “purchase price under the
related Option.” 
 (d) Method of Exercise. Stock Appreciation Rights shall be exercised by a Grantee only by a written notice
delivered in person or by mail to the Secretary of the Company at the Company’s principal executive office, specifying the number of Shares with respect to which the Stock Appreciation Right is being exercised. If requested by the Committee,
the Grantee shall deliver the Agreement evidencing the Stock Appreciation Right being exercised and the Agreement evidencing any related Option to the Secretary of the Company who shall endorse thereon a notation of such exercise and return such
Agreements to the Grantee. 
 (e) Form of Payment. Payment of the amount determined under Sections 7(b)(iii) or 7(c), may be made
solely in whole shares of Common Stock in a number determined at their Fair Market Value on the date of exercise of the Stock Appreciation Right or, alternatively, at the sole discretion of the Committee, solely in cash, or in a combination of cash
and Shares as the Committee deems advisable. In the event that a Stock Appreciation Right is exercised within the sixty-day period following a Change in Control, any amount payable shall be solely in cash. If the Committee decides to make full
payment in Shares, and the amount payable results in a fractional Share, payment for the fractional Share will be made in cash. Notwithstanding the foregoing, no payment in the form of cash may be made upon the exercise of a Stock Appreciation Right
pursuant to Section 7(b)(iii) or 7(c) to an officer of the Company or a Subsidiary who is subject to Section 16(b) of the Exchange Act, unless the exercise of such Stock Appreciation Right is made during the period beginning on the third
business day and ending on the twelfth business day following the date of release for publication of the Company’s quarterly or annual statements of earnings. 
 (f) Restrictions. No Stock Appreciation Right may be exercised before the date six (6) months after the date it is granted, except in the event that the death of the Grantee occurs before the expiration of
the six-month period. 
 (g) Effect of Change in Control. In the event of a Change in Control, subject to Section 7(f), all Stock
Appreciation Rights shall become immediately and fully exercisable. 
 8. Restricted Stock. The Committee may grant Awards of Restricted Stock which
shall be evidenced by an Agreement between the Company and the Grantee. Each Agreement shall contain such restrictions, terms and conditions as the Committee may require and (without limiting the generality of the foregoing) such Agreements may
require that an appropriate legend be placed on Share certificates. Awards of Restricted Stock shall be subject to the following terms and provisions: 

 (a) Rights of Grantee. 
 (1) Shares of Restricted Stock granted pursuant to an Award hereunder shall be issued in the name of the Grantee as soon as reasonably practicable after
the Award is granted and the purchase price, if any, is paid by the Grantee, provided that the Grantee has executed an Agreement evidencing the Award, an Escrow Agreement, appropriate blank stock powers and any other documents which the Committee,
in its absolute discretion, may require as a condition to the issuance of such Shares. If a Grantee shall fail to execute the Agreement evidencing a Restricted Stock Award, an Escrow Agreement or appropriate blank stock powers or shall fail to pay
the purchase price, if any, for the Restricted Stock, the Award shall be null and void. Shares issued in connection with a Restricted Stock Award, together with the stock powers, shall be deposited with the Escrow Agent. Except as restricted by the
terms of the Agreement, upon the delivery of the Shares to the Escrow Agent, the Grantee shall have all of the rights of a shareholder with respect to such Shares, including the right to vote the shares and to receive, subject to Section 8(d),
all dividends or other distributions paid or made with respect to the Shares. 
 (2) If a Grantee receives rights or warrants with respect to
any Shares which were awarded to him as Restricted Stock, such rights or warrants or any Shares or other securities he acquires by the exercise of such rights or warrants may be held, exercised, sold or otherwise disposed of by the Grantee free and
clear of the restrictions and obligations provided by this Plan. 
 (b) Non-Transferability. Until any restrictions upon the Shares of
Restricted Stock awarded to a Grantee shall have lapsed in the manner set forth in Section 8(c), such Shares shall not be sold, transferred or otherwise disposed of and shall not be pledged or otherwise hypothecated, nor shall they be delivered
to the Grantee. Upon the termination of employment of the Grantee, all of such Shares with respect to which restrictions have not lapsed shall be resold by the Grantee to the Company at the same price paid by the Grantee for such Shares or shall be
forfeited and automatically transferred to and reacquired by the Company at no cost to the Company if no purchase price had been paid for such Shares. The Committee may also impose such other restrictions and conditions on the Shares as it deems
appropriate. 
 (c) Lapse of Restrictions. 
 (1) Restrictions upon Shares of Restricted Stock awarded hereunder shall lapse at such time or times and on such terms, conditions and satisfaction of performance criteria as the Committee may determine; provided,
however, that the restrictions upon such Shares shall lapse only if the Grantee on the date of such lapse is then and has continuously been an employee of the Company or a Subsidiary from the date the Award was granted, or unless the Committee
sets a later date for the lapse of such restrictions. 
 (2) In the event of a Change in Control, all restrictions upon any Shares of
Restricted Stock shall lapse immediately and all such Shares shall become fully vested in the Grantee thereof. 

 (3) In the event of termination of employment as a result of death or Retirement of a Grantee, all
restrictions upon Shares of Restricted Stock awarded to such Grantee shall thereupon immediately lapse. Notwithstanding the foregoing, with respect only to Shares of Restricted Stock granted between November 13, 2006 and September 20,
2007, upon the termination of employment as a result of Retirement for an officer at the Senior Vice President level or above, only those restrictions upon such Shares of Restricted Stock that were scheduled to vest (i) during the calendar year
in which the Retirement occurs, and (ii) in the calendar year following the calendar year in which the Retirement occurs, shall thereupon immediately lapse. With respect to Shares of Restricted Stock granted after September 20, 2007, upon
the termination of employment as a result of Retirement for an officer at the Senior Vice President level or above, all restrictions upon Shares of Restricted Stock awarded to such Grantee shall thereupon immediately lapse. The Committee may also
decide at any time in its absolute discretion and on such terms and conditions as it deems appropriate, to remove or modify the restrictions upon Shares of Restricted Stock awarded hereunder, unless the Committee sets a later date for the lapse of
such restrictions. 
 (d) Treatment of Dividends. At the time of an Award of Shares of Restricted Stock, the Committee may, in its
discretion, determine that the payment to the Grantee of dividends, or a specified portion thereof, declared or paid on Shares of Restricted Stock by the Company shall be deferred until the earlier to occur of (i) the lapsing of the
restrictions imposed upon such Shares, in which case such dividends shall be paid over to the Grantee, or (ii) the forfeiture of such Shares under Section 8(b) hereof, in which case such dividends shall be forfeited to the Company, and
such dividends shall be held by the Company for the account of the Grantee until such time. In the event of such deferral, interest shall be credited on the amount of such dividends held by the Company for the account of the Grantee from time to
time at such rate per annum as the Committee, in its discretion, may determine. Payment of deferred dividends, together with interest accrued thereon as aforesaid, shall be made upon the earlier to occur of the events specified in (i) and
(ii) of the immediately preceding sentence, in the manner specified therein. 
 (e) Delivery of Shares. When the restrictions
imposed hereunder and in the Plan expire or have been cancelled with respect to one or more shares of Restricted Stock, the Company shall notify the Grantee and the Escrow Agent of same. The Escrow Agent shall then return the certificate covering
the Shares of Restricted Stock to the Company and upon receipt of such certificate the Company shall deliver to the Grantee (or such Grantee’s legal representative, beneficiary or heir) a certificate for a number of shares of Common Stock,
without any legend or restrictions (except those required by any federal or state securities laws), equivalent to the number of Shares of Restricted Stock for which restrictions have been cancelled or have expired. A new certificate covering Shares
of Restricted Stock previously awarded to the Grantee which remain restricted shall be issued to the Grantee and held by the Escrow Agent and the Agreement, as it relates to such shares, shall remain in effect. 
 9. Loans. 
 (a) The Company shall not make or arrange
any personal loans to a Grantee or Optionee who is an executive officer of the Company in connection with the purchase of Shares pursuant to 

 
an Award or in connection with the exercise of an Option. Such prohibition shall not prevent the Company or a Subsidiary from making or arranging such loans
to an Optionee or Grantee who is not an executive officer of the Company (if approved by the Committee) , in connection with the purchase of Shares pursuant to an Award or in connection with the exercise of an Option, subject to the following terms
and conditions and such other terms and conditions, including the rate of interest, if any, as the Committee shall impose from time to time, not inconsistent with the Plan. 
 (b) No loan made in connection with the purchase of Shares pursuant to an Award or in connection with the exercise of an Option under the Plan shall
exceed the sum of (i) the aggregate purchase price payable pursuant to the Option or Award with respect to which the loan is made, plus (ii) the amount of the reasonably estimated income taxes payable by the Optionee or Grantee with
respect to the Option or Award. In no event may any such loan exceed the Fair Market Value, at the date of exercise, of any such Shares. 
 (c) No loan in connection with the purchase of Shares pursuant to an Award or in connection with the exercise of an Option made under the Plan shall have an initial term exceeding ten (10) years; provided, that loans under the Plan
shall be renewable at the discretion of the Committee; and provided, further, that the indebtedness under each loan shall become due and payable, as the case may be, on a date no later than (i) one (1) year after termination of the
Optionee’s or Grantee’s employment due to death or retirement, or (ii) the date of termination of the Optionee’s or Grantee’s employment for any reason other than death or retirement. 
 (d) Loans in connection with the purchase of Shares pursuant to an Award or in connection with the exercise of an Option under the Plan may be satisfied
by an Optionee or Grantee, as determined by the Committee, in cash or, with the consent of the Committee, in whole or in part by the transfer to the Company of Shares whose Fair Market Value on the date of such payment is equal to the cash amount
for which such Shares are transferred. 
 (e) A loan in connection with the purchase of Shares pursuant to an Award or in connection with the
exercise of an Option under the Plan shall be secured by a pledge of Shares with a Fair Market Value of not less than the principal amount of the loan. After partial repayment of a loan, pledged shares that are no longer required as security may be
released to the Optionee or Grantee. 
 (f) Every loan in connection with the purchase of Shares pursuant to an Award or in connection with
the exercise of an Option under the Plan shall meet all applicable laws, regulations and rules of the Federal Reserve Board and any other governmental agency having jurisdiction. 
 10. Adjustment Upon Changes in Capitalization. 
 (a) In the event of a Change in Capitalization, the
Committee shall conclusively determine the appropriate adjustments, if any, to the maximum number and class of shares of stock with respect to which Options or Awards may be granted under the Plan, the number and class of shares as to which Options
or Awards have been granted under the Plan, and the purchase price therefor, if applicable. 

 (b) Any such adjustment in the Shares or other securities subject to outstanding Incentive Stock Options
(including any adjustments in the purchase price) shall be made in such manner as not to constitute a modification as defined by Section 425(h)(3) of the Code and only to the extent otherwise permitted by Sections 422 and 425 of the Code.

 (c) If, by reason of a Change in Capitalization, a Grantee of an Award shall be entitled to new, additional or different shares of stock or
securities (other than rights or warrants to purchase securities), such new additional or different shares shall thereupon be subject to all of the conditions, restrictions and performance criteria which were applicable to the Shares or units
pursuant to the Award prior to such Change in Capitalization. 
 11. Effect of Certain Transactions. In the event of (i) the liquidation or
dissolution of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) the sale or disposition of all or substantially all of the Company’s assets, provision shall be made in
connection with such transaction for the assumption of the Plan and the Options or Awards theretofore granted under the Plan, or the substitution for such Options or Awards of new options or awards of the Successor Corporation, with appropriate
adjustment as to the number and kind of shares and the purchase price for shares thereunder. 
 12. Release of Financial Information. A copy of the
Company’s annual report to shareholders shall be delivered to each Optionee and Grantee at the time such report is distributed to the Company’s shareholders. Upon request the Company shall furnish to each Optionee and Grantee a copy of its
most recent annual report and each quarterly report and current report filed under the Exchange Act, since the end of the Company’s prior fiscal year. 
 13. Termination and Amendment of the Plan. The Plan shall terminate on the day preceding the tenth anniversary of its effective date and no Option or Award may be granted thereafter. The Board may sooner terminate or amend the Plan
at any time, and from time to time; provided, however, that, except as provided in Sections 10 and 11 hereof, no amendment shall be effective unless approved by the shareholders of the Company in accordance with applicable law and regulations
at an annual or special meeting held within twelve months before or after the date of adoption of such amendment, where such amendment will: 
 (a) increase the number of Shares as to which Options or Awards may be granted under the Plan; or 
 (b) change the class of persons
eligible to participate in the Plan. 
 Except as provided in Sections 10 and 11 hereof, rights and obligations under any Option or Award granted before any
amendment of the Plan shall not be altered or impaired by such amendment, except with the consent of the Optionee or Grantee, as the case may be. 
 14.
Non-Exclusivity of the Plan. The adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangement or as creating any limitations on the power of the Board to adopt
such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either applicable generally or only in specific cases. 

 15. Limitation of Liability. As illustrative of the limitations of liability of the Company, but not intended to
be exhaustive thereof, nothing in the Plan shall be construed to: 
 (a) give any person any right to be granted an Option or Award other than
at the sole discretion of the Committee; 
 (b) give any person any rights whatsoever with respect to Shares except as specifically provided
in the Plan; 
 (c) limit in any way the right of the Company to terminate the employment of any person at any time; or 
 (d) be evidence of any agreement or understanding, expressed or implied, that the Company will employ any person in any particular position at any
particular rate of compensation or for any particular period of time. 
 16. Regulations and Other Approvals; Governing Law. 
 (a) This Plan and the rights of all persons claiming hereunder shall be construed and determined in accordance with the laws of the State of New Jersey
without giving effect to the choice of law principles thereof, except to the extent that such law is preempted by federal law. 
 (b) The
obligation of the Company to sell or deliver Shares with respect to Options and Awards granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the
obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 
 (c) The Plan is
intended to comply with Rule 16b-3 promulgated under the Exchange Act and Section 162(m) of the Code (each as amended from time to time) and the Committee shall interpret and administer the provisions of the Plan or any Agreement in a manner
consistent therewith to the extent necessary. Any provisions inconsistent with such Rule or Section shall be inoperative but shall not affect the validity of the Plan or any grants thereunder. 
 (d) Except as otherwise provided in Section 13, the Board may make such changes as may be necessary or appropriate to comply with the rules and
regulations of any government authority or to obtain for Eligible Employees granted Incentive Stock Options the tax benefits under the applicable provisions of the Code and regulations promulgated thereunder. 
 (e) Each Option and Award is subject to the requirement that, if at any time the Committee determines, in its absolute discretion, that the listing,
registration or qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or 

 
desirable as a condition of, or in connection with, the grant of an Option or the issuance of Shares, no Options shall be granted or payment made or Shares
issued, in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions unacceptable to the Committee. 
 (f) In the event that the disposition of Shares acquired pursuant to the Plan is not covered by a then current registration statement under the Securities
Act of 1933, as amended, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required by the Securities Act of 1933, as amended, or regulations thereunder, and the Committee may require
any individual receiving Shares pursuant to the Plan, as a condition precedent to receipt of such Shares (including upon exercise of an Option), to represent to the Company in writing that the Shares acquired by such individual are acquired for
investment only and not with a view to distribution. 
 17. Miscellaneous. 
 (a) Multiple Agreements. The terms of each Option or Award may differ from other Options or Awards granted under the Plan at the same time, or at
some other time. The Committee may also grant more than one Option or Award to a given Eligible Employee during the term of the Plan, either in addition to, or in substitution for, one or more Options or Awards previously granted to that Eligible
Employee. The grant of multiple Options and/or Awards may be evidenced by a single Agreement or multiple Agreements, as determined by the Committee. 
 (b) Withholding of Taxes. The Company shall have the right to deduct from any distribution of cash to any Optionee or Grantee an amount equal to the federal, state and local income taxes and other amounts required by law to be
withheld with respect to any Option or Award. Notwithstanding anything to the contrary contained herein, if an Optionee or Grantee is entitled to receive Shares upon exercise of an Option or pursuant to an Award, the Company shall have the right to
require such Optionee or Grantee, prior to the delivery of such Shares, to pay to the Company the amount of any federal, state or local income taxes and other amounts which the Company is required by law to withhold. The Agreement evidencing any
Incentive Stock Options granted under this Plan shall provide that if the Optionee makes a disposition, within the meaning of Section 425(c) of the Code and regulations promulgated thereunder, of any Share or Shares issued to him or her
pursuant to his or her exercise of the Incentive Stock Option within the two-year period commencing on the day after the date of grant of such Option or within the one-year period commencing on the day after the date of transfer of the Share or
Shares to the Optionee pursuant to the exercise of such Option, he or she shall, within ten (10) days of such disposition, notify the Company thereof and immediately deliver to the Company any amount of federal income tax withholding required
by law. 
 (c) Designation of Beneficiary. Each Optionee and Grantee may, with the consent of the Committee, designate a person or
persons to receive in the event of his/her death, any Option or Award or any amount payable pursuant thereto, to which he/she would then be entitled. Such designation will be made upon forms supplied by and delivered to the Company and may be
revoked in writing. If an Optionee fails effectively to designate a beneficiary, then the beneficiary or beneficiaries named by the Optionee under the Company’s group term life insurance plan will be deemed to be the beneficiary. 

 18. Effective Date. The effective date of the Plan shall be the date of its adoption by the Board, subject only to
the approval by the affirmative vote of a majority of the votes cast at a meeting of shareholders at which a quorum is present to be held within twelve (12) months of such adoption. No Options or Awards shall vest hereunder unless such
Shareholder approval is obtained.Purchase Agreement with Donald G. Fisher and Doris F. Fisher

 Exhibit 10.1 
 STOCK PURCHASE AGREEMENT 
 STOCK PURCHASE AGREEMENT dated as of February 27, 2008 among The
Gap, Inc., a Delaware corporation (the “Company”), Donald G. Fisher and Doris F. Fisher (together, “Fisher” and, together with any revocable family trust through which Fisher beneficially owns common stock of
the Company, “Seller”). 
 W I T N E S S E T H: 
 WHEREAS, the Company is authorized to purchase from time to time its Shares (as defined below) pursuant to a share repurchase program authorized by the
Board of Directors of the Company on February 14, 2008; and 
 WHEREAS, the Stock Purchase Agreement, dated August 22, 2007,
between the Company and Seller was terminated upon completion of the Company’s prior share repurchase program; 
 WHEREAS, Fisher is the
direct beneficial owner of 51,848,960 Shares of the Company (as defined below), representing approximately 7.07% of the outstanding Shares of the Company as of the date hereof; and 
 WHEREAS in consideration of the above recitals and of the mutual agreements and covenants contained in this Agreement, the Company and the Sellers
intending to be bound legally, each agree as follows: 
 ARTICLE 1 
 Definitions 
 Section 1.1. Definitions. (a) The following terms, as used
herein, have the following meanings: 
 “AFR” means, for any Business Day, the monthly short-term applicable federal rate,
based on a monthly compounding period, published by the Internal Revenue Service for the Applicable Month in which such Business Day occurs. 
 “AFR Carry Amount” means, for any period, an amount determined at the end of each period that is the sum of all Daily AFR Carry Amounts for such period. 
 “Average Price” means, for any Applicable Month, the weighted average price, rounded to four decimal points, at which the Company
purchased Shares during the Applicable Month pursuant to the Program in open market purchases, calculated as (a) the total purchase price paid by the Company (excluding commissions) for Shares purchased pursuant to the Program in open market
purchases during such Applicable Month divided by (b) the total number of Shares purchased by the Company pursuant to the Program in open market purchases during such Applicable Month; provided that if the Agreement has been terminated in
accordance with Section 7.1, the Average Price for any Closing thereafter shall be calculated only through the day immediately prior to the termination date of the Agreement. For the avoidance of doubt, Shares acquired in “open market
purchases” shall not include the Acquired Shares. 

 “Business Day” means (a) for purposes of determining the date of a Closing or
Closing Notice, a day on which banks are not required or authorized by law to close in New York City and (b) for all other purposes under this Agreement, a day on which the New York Stock Exchange is open for trading. 
 “Daily AFR Carry Amount” means, for each day, an amount determined at the end of each period equal to the product of (a) the
cumulative month-to-date Implied Daily Settlement Proceeds and (b) AFR divided by 360; provided that if such day is not a Business Day, the Daily AFR Carry Amount for such day shall be equal to the product of (a) the cumulative
month-to-date Implied Daily Settlement Proceeds through the most recent Business Day of such Applicable Month and (b) AFR in effect as of the most recent Business Day divided by 360; and provided, further, that for any day after the last
Business Day of such Applicable Month and prior to the date of Closing with respect to such Applicable Month, the Daily AFR Carry Amount for such day shall be equal to the product of (a) the cumulative month-to-date Implied Daily Settlement
Proceeds as of the most recent Business Day and (b) AFR in effect as of the last Business Day of the Applicable Month divided by 360. 
 “Daily Average Price” means, for any day, the weighted average price at which the Company purchased Shares during the applicable day pursuant to the Program in open market purchases, calculated as (a) the total
purchase price paid by the Company (excluding commissions) for Shares purchased pursuant to the Program in open market purchases during such day divided by (b) the total number of Shares purchased by the Company pursuant to the Program in open
market purchases during such day. 
 “Dividend Adjusted Average Price” means, on any day of an Applicable Month on
which all of the following conditions are met: (a) the day is after the public announcement of the dividend, (b) the day precedes an Ex-Dividend Date that occurs during such Applicable Month, and (c) the record date for the
shareholders of record entitled to receive such dividend will occur on or before the Closing for such Applicable Month, then Dividend Adjusted Average Price of the Acquired Shares for such day shall be calculated as (i) the Daily Average Price
for such day minus (ii) the amount of the dividend per Share which has been declared in respect of the Acquired Shares. 
 “Ex-Dividend Date” means the date that is two trading days prior to the record date which has been established in connection with the declaration of a dividend in respect of the Acquired Shares or such other date as may be
established with respect to the Shares as an “ex-dividend” date by the New York Stock Exchange. 
 “Implied Daily Acquired
Shares” means, for each Business Day of an Applicable Month, the number of Acquired Shares which were attributable to such day’s trading as determined by reference to the number of Shares purchased by the Company pursuant to the
Program (other than Acquired Shares) on such Business Day as a percent of the Company’s total purchases pursuant to the Program (other than Acquired Shares) during each Applicable Month determined after the close of trading on the last Business
Day of each Applicable Month and prior to the delivery of the Closing Notice relating to the Closing for each Applicable Month. Implied Daily Acquired Shares may result in fractional shares. 
  

 2 

 “Implied Daily Settlement Proceeds” means, for each Business Day of an Applicable Month,
the product of (a) the number of Implied Daily Acquired Shares which were deemed to have been acquired on the day that was three trading days prior to such Business Day and (b) the Daily Average Price or Dividend Adjusted Average Price, if
applicable, for such prior day. 
 “Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge,
security interest or other encumbrance of any kind in respect of such property or asset. 
 “Person” means an individual,
corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Program” means the share repurchase program approved on February 14, 2008 authorizing the Company to purchase from time to time
Shares up to a maximum aggregate amount (including existing authority) of $1 billion. 
 “Seller Ownership
Percentage” means 7.07%, which represents a percentage equal to (a) the number of Shares directly owned by such Seller as of February 2, 2008, divided by (b) 733,464,398 shares, which represent the Company’s total
outstanding basic Shares as of February 2, 2008, multiplied by 100. 
 “Shares” means the common stock of the
Company. 
 (b) For purposes of the definitions of “Average Price,” “Daily Average Price” and “Implied Daily
Acquired Shares”, Shares purchased by the Company pursuant to the Program shall be deemed to have been purchased on the trade date with respect to such Shares and not the day on which such trade settles. 
 (c) Each of the following terms is defined in the Section set forth opposite such term: 
  

			
	 Term
	  	Section
	 Acquired Shares
	  	2.1
	 Applicable Month
	  	2.1
	 Closing
	  	2.3
	 Closing Notice
	  	2.3
	 Governmental Authority
	  	3.2
	 Purchase Price
	  	2.2

  

 3 

 ARTICLE 2 
 Purchase and Sale 
 Section 2.1. Purchase and Sale. Upon the terms and subject to the conditions of
this Agreement, Fisher agrees to sell, transfer, assign and deliver to the Company, and the Company agrees to purchase from Seller, with respect to each calendar month in which the Company purchases Shares pursuant to the Program (the
“Applicable Month”), a number of Shares at each Closing calculated in accordance with Annex A hereto (the Shares acquired from Seller, the “Acquired Shares”). In the event that the Agreement is terminated pursuant
to Section 7.1, the day immediately prior to the termination date will be deemed to be the last day of the Applicable Month. 
 Section
2.2. Purchase Price. The aggregate purchase price for the Acquired Shares at each Closing (the “Purchase Price”) shall be equal to the product of (i) the aggregate number of Acquired Shares to be purchased at such
Closing multiplied by (ii) the Average Price for the Applicable Month. An interest factor shall be paid along with the Purchase Price for the Acquired Shares equal to the AFR Carry Amount. The Purchase Price shall also include an
adjustment to the Average Price of the Acquired Shares, if necessary, to take into account the effect of any dividends or similar distributions relating to the Acquired Shares to be settled for the Applicable Month in the same manner and under the
same conditions as provided for in the definition of “Dividend Adjusted Average Price”. The Purchase Price and the AFR Carry Amount shall be paid as provided in Section 2.3. 
 Section 2.3. Closing. Within five Business Days after the end of each Applicable Month, the Company shall deliver to Fisher a notice (each, a
“Closing Notice”) setting forth (i) the date of Closing, (ii) the number of Acquired Shares to be purchased by the Company from Seller pursuant to Section 2.1, (iii) the Purchase Price and the AFR Carry Amount
and (iv) the details of the calculation of the Purchase Price and the AFR Carry Amount, sufficient to allow Fisher to reproduce the calculation of the Purchase Price and the AFR Carry Amount. Subject to the satisfaction or waiver by Fisher and
the Company of the conditions set forth in Article 6, each closing of the purchase and sale of the Acquired Shares hereunder shall take place on the date set forth in the Closing Notice, which in any event shall be no later than the tenth
Business Day after the end of each month (each, a “Closing”) at the offices of the Company located at Two Folsom Street, San Francisco, California 94105, at 9:00 A.M., San Francisco time, or as soon as possible thereafter.

 At each Closing: 
 (a) The Company shall deliver to Seller the Purchase Price by wire transfer of same day or other immediately available funds in accordance with the payment instructions provided to the Company from time to time by Fisher; and 
 (b) Fisher shall deliver to the Company certificates for the Acquired Shares duly endorsed or accompanied by stock powers duly endorsed in
blank, with any required transfer stamps affixed thereto; provided, if the Acquired Shares are not held by Seller in certificated form, Fisher shall arrange to the Company’s satisfaction to transfer such shares in electronic form to a
brokerage account designated in writing by the Company in the Closing Notice. 
  

 4 

 ARTICLE 3 
 Representations and Warranties of Sellers 
 Fisher represents and warrants to the Company with respect to
any Seller, as of the date hereof and as of the date of each Closing that: 
 Section 3.1. Due Authorization. The execution and
delivery by Fisher, and the performance by each Seller, of this Agreement and the consummation of the transactions contemplated hereby are within the powers, corporate or otherwise, of each Seller and have been duly authorized by all necessary
action on the part of each Seller. This Agreement constitutes a valid and binding agreement of Fisher enforceable against Fisher in accordance with its terms. 
 Section 3.2. Governmental Authorization. The execution and delivery by Fisher, and the performance by each Seller, of this Agreement and the consummation of the transactions contemplated hereby require no prior
action by or in respect of, or prior filing with, any governmental organization, whether state or federal (“Governmental Authority”). 
 Section 3.3. Noncontravention. The execution and delivery by Fisher, and the performance by each Seller, of this Agreement and the consummation of the transactions contemplated hereby do not and will not
(i) violate the organization documents of each Seller, if applicable, (ii) assuming compliance with the matters referred to in Section 3.2, violate any applicable law, rule, regulation, judgment, injunction, order or decree
(iii) require any consent or other action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of any Seller under any provision of any agreement or
other instrument binding upon any Seller, except with respect to (ii) and (iii), where such violation, consent, action, default or right of termination, cancellation or acceleration would not adversely affect the ability of any Seller to
perform its obligations under this Agreement or to consummate the transactions contemplated hereby. 
 Section 3.4. Ownership of
Shares. As of the time of each Closing hereunder, Seller will be the beneficial owner of the Acquired Shares to be sold at such Closing, and will transfer and deliver to the Company at each Closing valid title to the Acquired Shares to be sold
at such Closing free and clear of any Lien and any other limitation or restriction (including any restriction on the right to sell or otherwise dispose of the Acquired Shares). 
 ARTICLE 4 
 Representations and Warranties of the Company 
 The Company represents and warrants to Fisher as of the date hereof and as of the date of each Closing that: 
 Section 4.1. Corporate Existence and Power. The Company (i) is a corporation duly incorporated, validly existing and in good standing under
the laws of Delaware and (ii) has all corporate powers and all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted, except with respect to (ii), where the failure to
have such corporate powers, governmental licenses, authorizations, permits, consents or approvals would not adversely affect the ability of the Company to perform its obligations under this Agreement or to consummate the transactions contemplated
hereby. 
  

 5 

 Section 4.2. Corporate Authorization. The execution, delivery and performance by the Company of
this Agreement and the consummation of the transactions contemplated hereby are within the corporate powers of the Company and have been duly authorized by all necessary corporate action on the part of the Company. This Agreement constitutes a valid
and binding agreement of the Company enforceable against the Company in accordance with its terms. This Agreement has been approved by a committee of the Board of Directors of the Company consisting solely of two or more non-employee directors.

 Section 4.3. Governmental Authorization. The execution, delivery and performance by the Company of this Agreement and the
consummation of the transactions contemplated hereby require no prior action by or in respect of, or prior filing with, any Governmental Authority. 
 Section 4.4. Noncontravention. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) violate the certificate of
incorporation or bylaws of the Company, (ii) assuming compliance with the matters referred to in Section 4.3, violate any applicable law, rule, regulation, judgment, injunction, order or decree, (iii) require any consent or other
action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Company under any provision of any agreement or other instrument binding upon the
Company, except with respect to (ii) and (iii), where such violation, consent, action, default or right of termination, cancellation or acceleration would not adversely affect the ability of the Company to perform its obligations under this
Agreement or to consummate the transactions contemplated hereby. 
 ARTICLE 5 
 Covenants of the Company and Fisher 
 The Company and Fisher agree that: 
 Section 5.1. Reasonable Commercial Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, the Company and Fisher will
use their reasonable commercial efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable laws and regulations to consummate the transactions contemplated by this Agreement.

  

 6 

 ARTICLE 6 
 Conditions To Closing 
 Section 6.1. Conditions to Obligations of the Company and Fisher. The
obligations of the Company and Fisher to consummate each Closing is subject to the satisfaction of the following conditions: 
 (a) No provision of any applicable law or regulation and no judgment, injunction, order or decree shall prohibit the consummation of any Closing; and 
 (b) All actions by or in respect of or filings with any governmental body, agency, official or authority required to permit the
consummation of each Closing shall have been taken, made or obtained. 
 Section 6.2. Conditions to Obligations of the Company. The
obligation of the Company to consummate each Closing is subject to the satisfaction (or waiver by the Company) of the following conditions: 
 (a) Fisher shall have performed in all material respects all of his respective obligations hereunder required to be performed by him on or prior to such Closing; and 
 (b) The representations and warranties of Fisher hereunder contained in this Agreement shall be true in all material respects at and as of
such Closing as if made at and as of such date. 
 Section 6.3. Conditions to Obligation of Fisher. The obligation of Fisher to
consummate each Closing is subject to the satisfaction (or waiver by Fisher) of the following conditions: 
 (a) The Company
shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to such Closing; and 
 (b) The representations and warranties of the Company contained in this Agreement shall be true in all material respects at and as of such Closing as if made at and as of such date. 
 ARTICLE 7 
 Termination 
 Section 7.1. Termination. This Agreement shall terminate: 
 (a) pursuant to the joint written agreement of the Company and Fisher; or 
 (b) 15 Business Days after notice by Fisher, on the one hand, or the Company, on the other hand; or 
  

 7 

 (c) pursuant to written notice by the Company, if a breach of or failure to perform any
representation, warranty, covenant or agreement on the part of Fisher set forth in this Agreement shall have occurred that would cause any of the conditions set forth in Sections 6.2(a) and 6.2(b) not to be satisfied, and any such condition is
incapable of being satisfied by the next Closing; or 
 (d) pursuant to written notice by Fisher, if a breach of or failure to
perform any representation, warranty, covenant or agreement on the part of the Company set forth in this Agreement shall have occurred that would cause any of the conditions set forth in Sections 6.3(a) and 6.3(b) not to be satisfied, and any
such condition is incapable of being satisfied by the next Closing; or 
 (e) pursuant to written notice by either Fisher or
the Company if there shall be any law or regulation that makes consummation of the transactions contemplated hereby illegal or otherwise prohibited or if consummation of the transactions contemplated hereby would violate any nonappealable final
order, decree or judgment of any court or governmental body having competent jurisdiction; or 
 (f) at the termination or
completion of the Program; 
 provided that with respect to (a) and (b) above, such termination shall not affect the settlement of Acquired
Shares in respect of any purchases pursuant to the Program which have occurred or are deemed to have occurred prior to the effective date of the termination of this Agreement. 
 The party desiring to terminate this Agreement pursuant to clauses (b), (c), (d) or (e) above shall give written notice of such termination to
the other party. 
 ARTICLE 8 
 Miscellaneous 
 Section 8.1. Survival. The covenants, agreements, representations and warranties of the parties hereto
contained in this Agreement or in any certificate or other writing delivered pursuant hereto shall not survive the termination of this Agreement other than with respect to a Closing for Acquired Shares which follows a termination of the Agreement
pursuant to Sections 7.1(a) or (b); provided that the covenants, agreements, representations and warranties contained in Articles 3, 4 and 8 shall survive indefinitely; provided, further, that nothing shall relieve any party for
liability at any time with respect to any breach occurring prior to the termination of this Agreement. 
  

 8 

 Section 8.2. Notices. All notices, requests and other communications to any party hereunder shall
be in writing (including facsimile transmission) and shall be given, 
 if to the Company, to: 
 The Gap, Inc. 
 Two Folsom Street

 San Francisco, CA 94105 
 Fax:
(415) 427-6982 Attn: General Counsel 
 with a copy to: 
 Fax: (415) 427-4015 
 Attn: Treasury Department 
 if to Fisher, to: 
 One Maritime Plaza

 Suite 1400 
 San Francisco, CA
94111 
 Fax: (415) 288-0549 
 Attn: Donald G. Fisher and Doris F. Fisher 
 All such notices, requests and other communications shall be deemed received on the
date of receipt by the recipient thereof if received prior to 5:00 P.M. in the place of receipt (as evidenced by confirmation of facsimile or other appropriate transmission receipt) and such day is a business day in San Francisco, California.
Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding business day in San Francisco, California. 
 Section 8.3. Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by both parties
to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective. The failure or delay by any party in exercising any right, power or privilege hereunder shall not operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law. 
 Section 8.4. Expenses. All costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such cost or expense. 
 Section 8.5. Successors and Assigns. The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that no party may assign or delegate any of its rights or obligations under this Agreement without
the consent of each other party hereto. 
 Section 8.6. Governing Law. This Agreement shall be governed by and construed in accordance
with the law of the State of California (without regard to principles of conflicts of laws). 
  

 9 

 Section 8.7. Jurisdiction. The parties hereto agree that any suit, action or proceeding seeking to
enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in a state or federal court located in San Francisco, California, so long as one of such
courts shall have subject matter jurisdiction over such suit, action or proceeding, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action
or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 8.2 shall be deemed effective service of process on such party. 
 Section 8.8. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 8.9. Counterparts; Third Party
Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when
each party hereto shall have received a counterpart hereof signed by the other party hereto. No provision of this Agreement is intended to confer upon any Person other than the Company or Seller any rights or remedies hereunder. 
 Section 8.10. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this
Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement. 
 Section 8.11. Captions. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof. 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

					
	THE GAP, INC.
		
	By:	 	/s/ Sabrina Simmons
		 	Name:	 	Sabrina Simmons
		 	Title:	 	Executive Vice President and
Chief Financial Officer

  

					
	DONALD G. FISHER
(on behalf of himself and on behalf of Sellers)
		
	By:	 	/s/ Donald G. Fisher
		 	Name:	 	Donald G. Fisher

  

					
	DORIS F. FISHER
(on behalf of herself and on behalf of Sellers)
		
	By:	 	/s/ Doris F. Fisher
		 	Name:	 	Doris F. Fisher

 SIGNATURE PAGE TO STOCK
PURCHASE AGREEMENT 

 ANNEX A 
 ACQUIRED SHARES CALCULATION 
 The number of Acquired Shares to be purchased from Seller at each
Closing shall be equal to: 
 (a) the quotient of (1) the Seller Ownership Percentage divided by (2) [1 minus the Seller
Ownership Percentage] 
 multiplied by 
 (b) the number of Shares purchased by the Company pursuant to the Program (open market purchases and otherwise) with respect to the Applicable Month (excluding any Acquired Shares) measured from the first Business Day
of the Applicable Month through and including the last Business Day of the Applicable Month; 
 provided that such number of Acquired
Shares for the Applicable Month shall be rounded to the nearest whole Acquired Share. 
 For purposes of the Acquired Shares calculation,
Shares purchased in the open market by the Company pursuant to the Program shall be deemed to have been purchased on the trade date with respect to such Shares and not the day on which such trade settles. Shares purchased after the end of the
Applicable Month that relate to the Applicable Month shall be deemed to have been purchased during the Applicable Month. 
  

 A-1

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