Document:

Exhibit

Exhibit 10.2
EXPLANATORY NOTE
ON MAY 22, 2018, SYNCHRONY BANK (F/K/A GE CAPITAL RETAIL BANK) AND SYNCHRONY FINANCIAL (“SYNCHRONY ENTITIES”) ENTERED INTO THE SIXTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC. (THE “COMPANY”), GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., GAP (APPAREL), LLC, GAP (ITM) INC., AND THE SYNCHRONY ENTITIES, WHICH IS ATTACHED HERETO. THE SYNCHRONY ENTITIES ALSO ENTERED INTO THREE OTHER AGREEMENTS WITH CERTAIN OF THE COMPANY’S WHOLLY-OWNED SUBSIDIARIES ON THE SAME DAY:
		
	1.
	THE SIXTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., OLD NAVY, LLC, GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., OLD NAVY (APPAREL), LLC, AND OLD NAVY (ITM) INC. AND THE SYNCHRONY ENTITIES (THE “OLD NAVY CONTRACT”);

		
	2.
	THE SIXTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., BANANA REPUBLIC, LLC, GAP (PUERTO RICO), INC., GPS CONSUMER DIRECT, INC., BANANA REPUBLIC (APPAREL), LLC, BANANA REPUBLIC (ITM) INC., AND THE SYNCHRONY ENTITIES (THE “BANANA REPUBLIC CONTRACT”); AND

		
	3.
	THE FOURTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND AMONG THE GAP, INC., ATHLETA INC., ATHLETA LLC, ATHLETA (ITM) INC. AND GPS CONSUMER DIRECT, INC. AND THE SYNCHRONY ENTITIES (THE “ATHLETA CONTRACT”).

IN ACCORDANCE WITH INSTRUCTION 2 TO ITEM 601 OF REGULATION S-K, ONLY THE SIXTH AMENDMENT TO THE AMENDED AND RESTATED CONSUMER CREDIT CARD PROGRAM AGREEMENT BY AND BETWEEN THE COMPANY AND THE SYNCHRONY ENTITIES IS BEING FILED. THE ONLY MATERIAL DIFFERENCE BETWEEN THE ATTACHED AGREEMENT, THE OLD NAVY CONTRACT, THE BANANA REPUBLIC CONTRACT AND THE ATHLETA CONTRACT IS THE PARTIES THERETO.

SIXTH AMENDMENT TO
AMENDED AND RESTATED CONSUMER CREDIT CARD
PROGRAM AGREEMENT

This Sixth Amendment to the Amended and Restated Consumer Credit Card Program Agreement, dated as of May 22, 2018 (the “Amendment”) amends that certain Amended and Restated Consumer Credit Card Program Agreement dated as of February 28, 2014 (as amended, modified and supplemented from time to time, the “Agreement”) by and among Synchrony Bank, a federal savings bank (“Bank”), Synchrony Financial, a Delaware corporation (“Bank Parent”), The Gap, Inc., a Delaware corporation (“The Gap, Inc.”), Gap (Puerto Rico), Inc., a Puerto Rico corporation, GPS Consumer Direct, Inc., a California corporation, Gap (Apparel), LLC, a California limited liability company, and Gap (ITM) Inc., a California corporation (jointly and severally, the “Retailers”).  Capitalized terms used herein and not otherwise defined have the meaning given in the Agreement.
WHEREAS, Bank and Retailers are parties to the Agreement, pursuant to which Bank provides consumer credit to qualified customers of Retailers for the purchase of goods and services from Retailers through the use of a private label credit card and from Retailers and other retailers through the use of a co-branded bankcard;
WHEREAS, the parties hereto desire to amend the Agreement as set forth herein;
NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions hereinafter set forth, the parties hereby agree as follows:
		
	I.
	AMENDMENT TO THE AGREEMENT

		
	1.1
	Amendment to Section 2.05(b).  Section 2.05(b) is deleted in its entirety and replaced with the following:

“(b)    [***].  Specific marketing promotions and the related expenses within such categories will be mutually-agreed upon by Bank and Retailers and, with such mutual consent of the parties, the Marketing Fund may be used for [***].  Bank and Retailers shall not unreasonably withhold consent for marketing promotion proposals made under this Section; provided, that Retailers acknowledge and agree that they may not request

		
	***
	Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment under Rule 24b-2 promulgated under the Securities Exchange Act of 1934.

reimbursement from the Marketing Fund for [***]. In addition, the parties shall allocate a mutually-agreed amount from the Marketing Fund for use in testing marketing initiatives. If the amount of Retailers’ invoices for mutually-agreed marketing promotions exceeds the amount of available funds in the Marketing Fund, Bank will provide partial reimbursement of such invoices up to the amount of available funds in the Marketing Fund. [***].  Solely in the instance of an Event of Default, as of the Termination Notice Date the determination as to whether (and on what) to spend [***].”
		
	1.2
	Amendment to Section 4.05(a). Section 4.05(a) is deleted in its entirety and replaced with the following:

“(a)    Except as otherwise agreed upon by the general managers of the Program (agreement by email sufficing), Bank will provide all customer service from servicing sites in the United States (including Puerto Rico), Canada, Mexico, India and Philippines; provided that, until Retailers shall otherwise agree in writing, no more than [***] of customer service shall be provided from outside the United States (including Puerto Rico), Canada and Mexico; and provided, further, that customer service volume shall be provided from Canada, Mexico and Puerto Rico only as required to provide customer service in French or Spanish, respectively, or as required in accordance with Bank’s disaster recovery and call volume overflow practices.  Notwithstanding the above, Bank shall be able to provide customer service from outside the United States (including Puerto Rico), Canada and Mexico in excess of [***] in limited and extraneous circumstances to respond to unusual call volume without being in breach of this Section 4.05.  At such time, Bank will notify Retailers of such unusual call volume and its response.  The parties will consider a reallocation of customer servicing among different sites if there is any adverse impact on customer satisfaction with the customer service provided from any site.”
  
II.    GENERAL
2.1    Authority for Amendment.  The execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Retailers and Bank and upon execution by all parties, will constitute a legal, binding obligation thereof.
2.2    Effect of Amendment.  Except as specifically amended hereby, the Agreement, and all terms contained therein, remains in full force and effect.  The Agreement, as amended by this Amendment, constitutes the entire understanding of the parties with respect to the subject matter hereof.

		
	***
	Confidential portions of this document have been redacted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment under Rule 24b-2 promulgated under the Securities Exchange Act of 1934.

2

		
	2.3
	Binding Effect; Severability.  Each reference herein to a party hereto will be deemed to include its successors and assigns, all of whom will be bound by this Amendment and in whose favor the provisions of this Amendment will inure.  In case any one or more of the provisions contained in this Amendment will be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein will not in any way be affected or impaired thereby.

2.4    Further Assurances.  The parties hereto agree to execute such other documents and instruments and to do such other and further things as may be necessary or desirable for the execution and implementation of this Amendment and the consummation of the transactions contemplated hereby and thereby.
2.5    Governing Law.  This Amendment will be governed by and construed in accordance with the laws of the State of Utah.
2.6    Counterparts.  This Amendment may be executed in counterparts, each of which will constitute an original, but all of which, when taken together, will constitute but one agreement.
[The remainder of page intentionally left blank]

3

IN WITNESS WHEREOF, Bank, Bank Parent and Retailers have caused this Amendment to be executed by their respective officers thereunto duly authorized as the date first above written.

	
		
	BANK:
SYNCHRONY BANK

By:    /s/ Thomas Quindlen
Name:   Thomas Quindlen
Title:    EVP Retail Card

	RETAILERS:
THE GAP, INC. 

By:     /s/ Abinta Malik
Name:    Abinta Malik 
Title:      EVP, Gap Inc.

	 
	GAP (PUERTO RICO), INC.

By:      /s/ Abinta Malik
Name:   Abinta Malik 
Title:     EVP, Gap Inc.

	BANK PARENT:

SYNCHRONY FINANCIAL

By:     /s/ Thomas Quindlen
Name:    Thomas Quindlen
Title:     EVP & CEO Retail Card
	GPS CONSUMER DIRECT, INC.

By:    /s/ Abinta Malik
Name:   Abinta Malik 
Title:     EVP, Gap Inc.

GAP (APPAREL), LLC

By:    /s/ Abinta Malik
Name:   Abinta Malik 
Title:     EVP, Gap Inc.  

	 
	GAP (ITM) INC.

By:    /s/ Abinta Malik
Name:    Abinta Malik
Title:      EVP, Gap Inc.Exhibit

    

Exhibit 10.3
            

[Gap Inc. letterhead] 

June 11, 2018
 
Neil Fiske

Dear Neil:

It is our pleasure to offer you a position at Gap Inc. We’re a company driven by passion, innovation and a focus on quality—the same characteristics we look for in our employees. You reflect these values and we feel confident you will find rewarding opportunities with us.

This letter sets forth our offer to you to join Gap Inc. (the “Company” or “Gap Inc.”) as President and Chief Executive Officer, Gap.  In this position, you will report to Art Peck, President and Chief Executive Officer, Gap Inc.  

Salary. Your annual salary will be $950,000, payable every two weeks. 

Initial Bonus. You will receive a bonus of $400,000 within the first thirty days of your employment. This will be processed as supplemental income and is subject to supplemental taxes. In the event you voluntarily terminate your employment or your employment is terminated For Cause (as defined below), you will be required to repay within ninety (90) days of your last day of employment 100% of this bonus if the termination occurs before your first employment anniversary, and 50% of this bonus if termination occurs between your first and second employment anniversary.  

Annual Bonus. Under the current program, you will be eligible for an annual bonus based on Gap Inc. and/or Division financial objectives (weighted at 50%) and transformation goals (weighted at 50%).  Your annual target bonus will be 125% of your base salary.  Depending on results, your actual bonus, if any, may be higher or lower and can reach a maximum of 250%.  Bonus payments will be prorated based on active time in position, divisional or country assignment and changes in base salary or incentive target that may occur during the fiscal year. Bonuses for fiscal year 2018 are scheduled for payment in March 2019 and you must be employed by Gap Inc. on the payment date.  Gap Inc. has the right to modify the program at any time. Management discretion can be used to modify the final award amount. Bonus payments are subject to supplemental income tax withholding.

Bonus Guarantee. For fiscal year 2018 only, your annual bonus, payable in March 2019, is guaranteed to be at least the target amount, provided you are employed by Gap Inc. on the payment date. The bonus will be prorated based on the number of days of active time in position during the fiscal year. 
  
Long-Term Incentive Awards. Your offer includes long-term incentive award(s), which give you the opportunity to share in Gap Inc.’s success over time. 

Stock Options. The Compensation and Management Development Committee of the Board of Directors (“the Committee”) has approved a grant of stock options to you to purchase 250,000 shares of Gap Inc. common stock on your first day of employment (the “date of grant”), subject to the provisions of Gap Inc.’s stock plan. The option price shall be determined by the fair market value of the stock on the date of grant. These options will become vested and exercisable as shown in the schedule below, provided you are employed by Gap Inc. on the vesting date.  These options must be exercised within ten years from the date of grant or within three months of your employment termination, whichever is earlier, or you will lose your right to do so.

Option to purchase 62,500 shares vesting one year from date of grant.
Option to purchase 62,500 shares vesting two years from date of grant.
Option to purchase 62,500 shares vesting three years from date of grant.

Neil Fiske
June 11, 2018
Page 2

Option to purchase 62,500 shares vesting four years from date of grant.
        
Stock Awards. The Committee has approved a grant of stock awards to you covering 130,000 shares of Gap Inc. stock effective on the date of grant, subject to the provisions of Gap Inc.’s stock plan. Awards are in the form of units that are paid in Gap Inc. stock upon vesting.  The award will become vested as shown in the schedule below, provided you are employed by Gap Inc. on the vesting date.  Awards are subject to income tax withholding upon vesting.

Stock Award of 32,500 shares vesting one year from date of grant.
Stock Award of 32,500 shares vesting two years from date of grant.
Stock Award of 32,500 shares vesting three years from date of grant.
Stock Award of 32,500 shares vesting four years from date of grant.

Long-Term Growth Program. Based on your position, you will be eligible to participate in the Long-Term Growth Program that rewards achievement of Gap Inc. and/or Division financial objectives over a three year period.  Your target opportunity to earn performance shares will be 275% of your base salary.  Depending on results, your actual performance shares, if any, may be higher or lower and can reach a maximum of 300% of target shares.  Awards are made in the form of performance shares that are paid in Gap Inc. stock upon vesting.

For the current fiscal 2018-2020 performance cycle, the Committee has approved a grant of performance shares covering a prorated target amount of 60,793 shares of Gap Inc. common stock effective on the date of grant.  The number of earned performance shares, if any, will be determined no later than March 2021.  Payout is subject to certification by the Committee and the provisions of Gap Inc.’s stock plan. Earned shares will vest 50% on the date the Committee certifies attainment and 50% one year from the certification date provided you are employed by Gap Inc. on the vesting dates.  Gap Inc. has the right to modify the program at any time. Committee discretion can be used to modify the final share amount.  Shares are subject to income tax withholding upon vesting.  

You may be eligible for future Long-Term Incentive Awards as a participant in the annual compensation review process.

Financial Counseling Program. To help you achieve your financial goals, we currently offer a financial counseling program through The Ayco Company, L.P., a Goldman Sachs Company. Ayco’s financial counselors have comprehensive information regarding Gap Inc.’s benefit and compensation plan design.  You become eligible to participate in the Ayco financial counseling program immediately. A financial counselor from Ayco will contact you shortly after your employment begins to provide further details of this benefit, including tax implications.

Benefits. Gap Inc. offers a competitive benefits package that includes medical, dental, vision, life and disability insurance.  Gap Inc. also offers an Employee Stock Purchase Plan, a 401(k) plan with a generous dollar for dollar company match up to four percent of your pay (limited as provided in the plan), and employee discounts toward merchandise you purchase in our stores as gifts, or for yourself and your eligible dependents. You will be eligible for paid time off on an "as needed” basis for vacation, illness or personal business, subject to business needs; there is no accrual for paid time off.  In addition, there are seven company-paid holidays.  Gap Inc. reserves the right to change its benefit programs at any time. 

Relocation. Gap Inc. will provide you with relocation benefits in accordance with the Gap Inc. North America Relocation Vice-President and Above Homeowner’s Policy (“Policy”). We will also provide a Summary of Relocation Benefits (“Summary”), which is an overview of key aspects of the Policy, including exceptions. In the event of any conflict between the Summary and the Policy, other than the exceptions noted in the Summary, the Policy shall prevail. As part of the provision of this relocation package, it is expected that you will remain employed with the Company for a period of at least 24 months from the initiation date of your relocation. To acknowledge your understanding and acceptance, you will need to sign and return a 

Neil Fiske
June 11, 2018
Page 3

Payback Agreement. Please note that the relocation process cannot be started until a signed copy of the Payback Agreement has been received.

A Relocation Counselor from Gap Inc.’s Global Relocation Services Provider will contact you shortly after your relocation is initiated.  In the meantime, should you have any questions with regard to your relocation or require further information, please contact David Abrams, Sr. Manager, Global Mobility at 415-427-6397.

Indemnification.  As an officer, Gap Inc. provides you certain indemnification and insurance as more fully described in Article V. of the Gap Inc. By-laws.

Termination/Severance.  In the event that your employment is involuntarily terminated by the Company for reasons other than (i) For Cause (as defined below) or (ii) for the avoidance of doubt, death or disability, prior to July 1, 2020, the Company will provide you the following after your "separation from service" within the meaning of Internal Revenue Code (“IRC”) Section 409A ("Separation from Service”), provided you sign a general release of claims in the form requested by the Company and it becomes effective within 45 calendar days after such Separation from Service (such 45th day, the “Release Deadline”):  

(1) Your then current salary, at regular pay cycle intervals, for eighteen months commencing in the first regular pay cycle following the Release Deadline (the “severance period”).  Payments will cease if you accept other employment or professional relationship with a competitor of the Company (defined as another company primarily engaged in the apparel design or apparel retail business or any retailer with apparel sales in excess of $500 million annually), or if you breach your remaining obligations to the Company (e.g., your duty to protect confidential information, agreement not to solicit Company employees).  Except for any compensation received from external board memberships in place at the time of your Separation from Service, payments will be reduced by any compensation you receive (as received) during the severance period from other employment or professional relationship with a non-competitor. Each payment will be treated as a separate payment for purposes of IRC Section 409A, to the maximum extent possible.

(2) Through the end of the period in which you are receiving payments under paragraph (1) above or shorter period you are covered by COBRA, if you properly elect and maintain COBRA coverage, payment of a portion of your COBRA premium in a method as determined by the Company. This payment may be taxable income to you and subject to tax withholding.  Notwithstanding the foregoing, the Company’s payment of the monthly COBRA premium shall cease immediately if the Company determines in its discretion that paying such monthly COBRA premium would result in the Company being in violation of, or incurring any fine, penalty, or excise tax under, applicable law (including, without limitation, any penalty imposed for violation of the nondiscrimination requirements under the Patient Protection and Affordable Care Act or guidance issued thereunder, or any similar law or regulation).

(3) Through the end of the period in which you are receiving payments under paragraph (1) above, reimbursement for your costs to maintain the same or comparable financial counseling program the Company provides to senior executives in effect at the time of your Separation from Service.  The amount of expenses eligible for reimbursement during a calendar year shall not affect the expenses eligible for reimbursement in any other calendar year.  Reimbursement shall be made on or before the last day of the calendar year following the calendar year in which the reimbursement is incurred but not later than the end of the second calendar year following the calendar year of your Separation from Service.

(4) Prorated Annual Bonus for the fiscal year in which the termination occurs, on the condition that you have worked at least 3 months of the fiscal year in which you are terminated, based on actual financial results and 100% standard for any non-financial component (other than those intended to comply with IRC Section 162(m)).  Such bonus will be paid in March of the year following termination at the time Annual Bonuses for the year of termination are paid, but in no event later than the 15th day of the third month following the later of the end of the Company’s taxable year or the end of the calendar year in which such termination occurs.  In the event termination occurs after the end of a fiscal year but before the date of bonus payments, 

Neil Fiske
June 11, 2018
Page 4

such bonus for the preceding fiscal year will be paid pursuant to the terms of this section and the terms of the bonus plan.

(5) Accelerated vesting (but not settlement) of restricted stock units (“RSUs”) and performance shares that remain subject only to time vesting conditions (excluding any performance shares that remain subject to performance-based vesting conditions) scheduled to vest prior to April 1 following the end of the fiscal year of termination.  Shares of the Company stock in settlement of any vested RSUs and/or performance shares under this section will be delivered on the applicable regularly scheduled vesting dates subject to the terms and conditions of the applicable award agreement including, without limitation, the IRC Section 409A six-month delay language thereunder to the extent necessary to avoid taxation under IRC Section 409A .

The payments in (1), (3), (4) and (5) above are, and the payment described in (2) above may be, taxable income to you and are subject to tax withholding.  If the aggregate amount that would be payable to you under paragraphs (1), (2), (3) and (4) above through the date which is six months after your Separation from Service (excluding amounts exempt from IRC Section 409A under the short-term deferral rule thereunder or Treas. Reg. Section 1.409A-1(b)(9)(v))  exceeds the limit under Treas. Reg. Section 1.409A-1(b)(9)(iii)(A) and you are a “specified employee” under Treas. Reg. Section 1.409A-1(i) on the date of your Separation from Service, then the excess will be paid to you no earlier than the date which is six months after the date of such separation (or such earlier time permitted under IRC Section 409A(a)(2)(B)(i)). This delay will only be imposed to the extent required to avoid the tax for which you would otherwise be liable under IRC Section 409A(a)(1)(B).  Any delayed payment instead will be made on the first business day following the expiration of the six-month period, as applicable (or such earlier time permitted under IRC Section 409A(a)(2)(B)(i)). Payments that are not delayed will be paid in accordance with their terms determined without regard to such delay.  

The term “For Cause” shall mean a good faith determination by the Company that your employment be terminated for any of the following reasons:  (1) indictment, conviction or admission of any crimes involving theft, fraud or moral turpitude; (2) engaging in gross neglect of duties, including willfully failing or refusing to implement or follow direction of the Company; or (3) breaching Gap Inc.’s policies and procedures, including but not limited to the Code of Business Conduct; where applicable, the Company shall provide reasonable notice of any breach and opportunity to remediate.

At any time, if you voluntarily resign your employment from Gap Inc. or your employment is terminated For Cause, you will receive no compensation, payment or benefits after your last day of employment.  If your employment terminates for any reason, you will not be entitled to any payments, benefits or compensation other than as provided in this letter.

After June 30, 2020, you will be eligible for severance, if any, as approved by the Committee under the same terms as similarly situated executive officers.  

Recoupment Policy. As an executive officer, the Company’s recoupment policy will apply to you. Under the current policy, subject to the discretion and approval of the Board, Gap Inc. will, to the extent permitted by governing law, in all appropriate cases as determined by the Board, require reimbursement and/or cancellation of any bonus or other incentive compensation, including stock-based compensation, awarded to an executive officer or other member of the Gap Inc.’s executive leadership team where all of the following factors are present: (a) the award was predicated upon the achievement of certain financial results that were subsequently the subject of a restatement, (b) in the Board’s view, the executive engaged in fraud or intentional misconduct that was a substantial contributing cause to the need for the restatement, and (c) a lower award would have been made to the executive based upon the restated financial results.  In each such instance, Gap Inc. will seek to recover the individual executive’s entire annual bonus or award for the relevant period, plus a reasonable rate of interest.
    
Start Date.  Your first day with Gap Inc. will be determined.  On this day, you will to complete your necessary paperwork.  Please bring your completed New Hire Forms Booklet, identification and proof of 

Neil Fiske
June 11, 2018
Page 5

authorization to work in the U.S.  A complete list of appropriate documentation is enclosed in your New Employee Orientation materials. 

No Conflicts with this Offer/Representations. You represent and warrant that you do not have any agreements, obligations, relationships or commitments to any other person or entity that conflicts with accepting this offer or performing your obligations of this position.  You further represent that the credentials and information you provided to Gap Inc. (or its agents) related to your qualifications and ability to perform this position are true and correct.

Proprietary Information or Trade Secrets of Others. You agree that prior to your first day of employment with Gap Inc. you will return all property and confidential information, including trade secrets, belonging to all prior employers.  You further agree that you will not disclose to us, or use, or persuade any Gap Inc. employee to use, any proprietary information or trade secrets of another person or entity.

Abide by Gap Inc. Policies/Protection of Gap Inc. Information. You agree to abide by all Gap Inc. policies including, but not limited to, policies contained in the Code of Business Conduct.  As an executive officer, you are subject to Stock Ownership Requirements for Gap Inc. Executives which can be found on Gapinc.com.   You also acknowledge that during your employment with Gap Inc., you may acquire Gap Inc.’s “Confidential Information”, which is trade secret or other proprietary non-public information (in any form), such as unannounced product information or designs, business or strategic plans, financial information and organizational charts, and other materials. Confidential Information also includes, but is not limited to, sensitive, personal information and data about co-workers, customers, consultants or other individuals, including names, addresses, e-mail addresses, telephone numbers, government identification numbers (including social security numbers), employee ID numbers, customer file information, credit card and bank account information.  By signing below, you promise to responsibly use and protect Confidential Information from inappropriate access and disclosure.  Nothing in this letter, however, precludes you from communicating with, reporting to or participating in any investigation or proceeding conducted by any federal or state agency, or governmental body, sharing information you gained from sources other than in the course of your work or discussing your personal contact information or other information about wages, compensation or other employment terms.

Insider Trading Policies.  Based on the level of your position, you will be subject to Gap Inc.'s Securities Law Compliance Manual, which among other things places restrictions on your ability to buy and sell Gap Inc. stock and requires you to pre-clear trades. This position will subject you to the requirements of Section 16 of the United States Securities and Exchange Act of 1934, as amended.  You will receive additional information, including a copy of the Securities Law Compliance Manual, shortly after your first day of employment.  If you wish to obtain additional information, or have questions, you may contact Gap Inc. Global Equity Administration, at global_equity_administration@gap.com.
 
Non-Compete and Non-Solicitation.  You recognize that Gap Inc. is engaged in an extremely competitive business throughout the United States and internationally, and that as President and CEO, Gap, you possess unique skills that provide a particular competitive value to Gap Inc. and will also be given access to Gap Inc.’s Confidential Information as described above.  For that reason, you agree that, during your employment and for a period of one year after the termination of your employment for any reason, you will not, directly or indirectly whether as an owner, operator, employee, consultant, advisor or agent:    

		
	(1)
	Become employed by, work for, perform services for, acquire an interest in (other than acquiring, solely as an investment, publicly traded shares of capital stock of any corporation), or participate, provide, supervise or manage activities for a Competitor in a capacity similar in function or purpose to that in which you were employed by Gap Inc. or in any other capacity in which you could use Gap’s Confidential Information to benefit the Competitor or hurt Gap Inc.’s business. For purposes of this paragraph and except as noted below, “Competitor” is defined as any business, person or entity primarily engaged in the apparel design or apparel retail business or any retailer with apparel sales in excess of $500 million annually, including without 

Neil Fiske
June 11, 2018
Page 6

limitation Polo Ralph Lauren, Aeropostale, Abercrombie & Fitch, Charlotte Russe, J. Crew, Fast Retailing, H&M, Kohl’s, Macy’s, Children’s Place, Gymboree, Inditex Group, Express, Nautica, Tommy Hilfiger, American Eagle Outfitters, DKNY Jeans, Calvin Klein, Target, JC Penney, Nordstrom, Urban Outfitters, Ann Taylor, and L Brands.  The sole exception to this definition is in the event of an involuntary termination, in which case the above definition of Competitor shall not include any company that is primarily engaged in surf, skate, snowboarding, or BMX/motocross apparel and merchandise.  In the event that you are not otherwise offered severance pursuant to the Termination/Severance section above, the Company agrees to pay you your then current base salary for the period up to one year in which Gap Inc. intends to enforce the provisions of this subparagraph after the termination of your employment.

		
	(2)
	Directly or indirectly solicit, call upon, recruit, or attempt to solicit any of Gap Inc.’s employees or in any way encourage any Gap Inc. employee to leave their employment with Gap Inc.; or

		
	(3)
	Interfere or attempt to interfere with Gap Inc.’s relationship with any person or entity who was an employee, consultant, customer, or vendor of Gap Inc. or who otherwise has or had a business relationship with Gap at the time your employment terminates. 

You agree that the restrictions contained in this section are necessary to protect Gap Inc.’s legitimate business interests and are reasonably limited in time, geography and scope so that they do not impose a greater restriction upon you than is needed to achieve this purpose and to prevent a Competitor (as that term is defined above) from gaining an unfair advantage in the market place through the use of Gap Inc.’s Confidential Information.

Because of the valuable and unique nature of your position with Gap Inc. and the information to which you will be given access to in conjunction with your position, you understand that, if you violate this section, Gap Inc. will be irreparably harmed and that money damages will be inadequate to remedy any harm to Gap Inc. as a result of the violation.  Accordingly, you acknowledge that Gap Inc. shall have the right to obtain an injunction to enforce this section, in addition to any other rights or remedies it may be entitled to recover.  You also agree that Gap Inc.’s failure or delay in exercising its rights under this section shall not operate as a waiver thereof. 

In order to help avoid disputes and related litigation costs, during the restricted period, you agree to provide Gap Inc. with thirty (30) days advance written notice prior to accepting any position with a Competitor, and will engage in an interactive dialogue and exchange of information about the position you are considering.  You understand that, to the extent you violate this section, the one year restriction shall be extended by the length of time in which you were in violation of this section.

You understand that the restrictions in this section shall survive the termination of your employment, for any reason.

Employment Status. You understand that your employment is “at-will”. This means that you do not have a contract of employment for any particular duration or limiting the grounds for your termination in any way.  You are free to resign at any time.  Similarly, Gap Inc. is free to terminate your employment at any time for any reason.  The only way your at-will status can be changed is through a written agreement with Gap Inc., signed by an authorized officer of Gap Inc.  In the event that there is any dispute over the terms, enforcement or obligations in this letter, the prevailing party shall be entitled to recover from the other party reasonable attorney fees and costs incurred to enforce any agreements.

Please note that except for those agreements or plans referenced in this letter and attachments, this letter contains the entire understanding of the parties with respect to this offer of employment and supersedes any other agreements, representations or understandings (whether oral or written and whether express or implied) with respect to this offer.  We must receive your signed letter before or on your first day of employment. 

Neil Fiske
June 11, 2018
Page 7

Neil, it is our pleasure to extend this offer. We look forward to working with you.

Yours sincerely,

_/s/ Art Peck__________________________
Art Peck
President and Chief Executive Officer, Gap Inc.

Confirmed this ___11th__ day of ____June___, 2018

_/s/ Neil Fiske_________________________    
Neil Fiske

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