This excerpt taken from the GPS DEF 14A filed Mar 28, 2006.
The following table provides information as of January 28, 2006 about our common stock (Shares), which may be issued upon the exercise of options, warrants and rights granted to employees, consultants or members of our Board of Directors under all of our existing equity compensation plans, including the 1996 Stock Option and Award Plan, the 2002 Stock Option Plan, the Employee Stock Purchase Plan, the Nonemployee Director Deferred Compensation Plan (terminated in September 2005) and the UK Employee Stock Purchase Plan.
Our 1996 Stock Option and Award Plan and our Employee Stock Purchase Plan were approved by our shareholders. The three plans described below were not required to be approved by our shareholders.
Our Board of Directors originally approved the 2002 Stock Option Plan (the 2002 Plan), formerly known as Stock Up On Success, The Gap, Inc.s Stock Option Bonus Program, effective as of January 1, 1999. The 2002 Plan was intended to increase incentives and to encourage Share ownership on the part of eligible non-officer regular employees of the Company and its affiliates by providing limited grants of nonqualified stock options to such employees. Subject to the terms of the 2002 Plan, the Compensation and Management Development Committee of the Board (the Committee) had the discretion to select the eligible non-officer employees who would be granted options, determine the number of Shares covered by the options, prescribe the terms and conditions of such options, and interpret the Plan and outstanding options. In addition, the Committee had the discretion to determine the per Share exercise price and term of an options, provided that the per Share exercise price could not be less than 25% of the fair market value (on the date of grant) of the Shares covered by the option and that the option could not expire later than ten years after the date of grant. The exercise price of an option could be paid in cash, or if permitted by the Secretary of the Company (or her designee) by a same-day sale using a Company approved broker. Options that have been granted under the 2002 Plan are nontransferable other than by will or by the applicable laws of descent and distribution. In January 2006, the Board of Directors approved the discontinuation of the 2002 Plan subject to the approval of the amended and restated 2006 Long-Term Incentive Plan by the shareholders at the 2006 Annual Meeting. Shares that remain available under the 2002 Plan will transfer to the 2006 Long-Term Incentive Plan. Any outstanding awards will remain subject to the terms and conditions under the 2002 Plan. A total of 78,500,000 Shares previously have been reserved for issuance under the 2002 Plan, of which 39,144,872 Shares remain available as of January 28, 2006 for future issuance.
The Board of Directors originally approved the Nonemployee Director Deferred Compensation Plan (the Director Plan) effective as of August 26, 1997; it was most recently amended and restated effective as of December 9, 2003. The Director Plan was intended to increase incentives and to encourage Share ownership on the part of non-employee directors, to provide them with the opportunity to defer compensation on a pre-tax basis, and to further the growth and profitability of the Company. In response to Section 409A of the Internal Revenue Code and proposed regulations issued thereunder, the Company suspended use of the Director Plan in January 2005 and then terminated it in September 2005.
The Board of Directors approved the UK Employee Stock Purchase Plan (the UK Plan) effective as of September 2000. The UK Plan is intended to enable eligible employees in the United Kingdom to acquire Shares, thereby giving them a continuing stake in the Company. Under the UK Plan, all eligible employees may purchase Shares at a price equal to the lower of the market value of a Share on the first or last day of each six-month purchase period. Market Value generally means the closing price of a Share on the New York Stock Exchange. We also provide each participant a match of one Share for every seven Shares
purchased under the UK Plan. Participants generally must hold any matching Shares received under the UK Plan for at least three years. Participants pay for their Share purchases under the UK Plan through payroll deductions of between £10 to £125 per month, not to exceed the lesser of £750 per six-month purchase period or 10% of their eligible salary per tax year (as defined in the UK Plan). A total of 1,000,000 Shares previously have been reserved for issuance under the UK Plan, of which 891,120 remain available as of January 28, 2006 for future issuance. (£ is the currency symbol for the United Kingdom pound)