Document:

<PAGE>

Exhibit 10.25

                                 THE GAP, INC.
                EXECUTIVE LONG-TERM CASH AWARD PERFORMANCE PLAN

            (January 26, 1999 Restatement, as amended March 28, 2000)
1.   Purpose of the Plan
     -------------------

     The purpose of the Executive Long-Term Cash Award Performance Plan is to
provide financial incentives for certain of the Company's officers to meet and
exceed the Company's multi-year financial goals. The Plan is intended to qualify
as "performance-based compensation" under Code Section 162(m).

2.   Definitions
     -----------

     2.1 "Affiliated Company" means any company controlling, controlled by or
under common control with the Company.

     2.2 "Award" means a cash award pursuant to the provisions of the Plan.

     2.3 "Capital Control" means adherence to the capital budget approved by the
Company's Board of Directors as part of the annual budgeting process. Such
budget shall be inclusive of the costs of new, enlarged, and relocated stores,
remodels, lease rights, divisional capital, and other associated costs.

     2.4 "Code" means the Internal Revenue Code of 1986, as amended. Reference
to a specific section of the Code shall include such section, any valid
regulation promulgated thereunder, and any comparable provision of any further
legislation or regulation amending, supplementing or superseding such section or
regulation.

     2.5 "Committee" means the Compensation and Stock Option Committee of the
Company's Board of Directors, or any other Committee appointed by the Board
pursuant to Section 3 of the Plan.

     2.6 "Company" means The Gap, Inc., a Delaware corporation.

     2.7 "Comparable Store Sales" means the Company's or a division's same store
net sales growth for the Fiscal Year in excess of the prior year.

     2.8 "Determination Date" means as to a Performance Cycle, the latest date
possible that will not jeopardize the Plan's qualification as "performance-based
compensation" under Code section 162(m).

     2.9 "Earnings" means either (a) operating income of the Company or one of
its divisions for a given Performance Cycle less certain allocated expenses
(e.g., headquarters, distribution centers, etc.), or (b) income before interest
and taxes of the Company or one of its divisions; determined in accordance with
Generally Accepted Accounting Principles, provided that prior to the
Determination Date the Committee shall determine (1) whether Earnings will be
measured under clause (a) or (b), and (2) whether
<PAGE>

any significant adjustments should be made to the calculation (e.g., exclusions
for non-recurring items or unusual costs, etc.).

     2.10 "Economic Value Added" means the Company's or a division's Net
Operating Profit After Tax (NOPAT) for a specific performance period less
charges for use of capital assets (Capital Charges). NOPAT for a division
includes not only the division-specific revenues and directly controllable
expenses, but also may include shared costs for applicable Information
Technology, Distribution, and other Headquarters-related expenses, as determined
by the Committee (prior to the Determination Date). Prior to applying taxes,
operating profits are adjusted for interest expense on the present value of
operating leases. Capital Charges means the Company's or a Division's Average
Capital Balances multiplied by the Weighted Average Cost of Capital. Divisional
Average Capital Balances is defined as an average of both directly controllable
assets (Inventory, Property Plant and Equipment, Net Lease Rights, and the
present value of operating leases), but also can include shared assets for
applicable Information Technology, Distribution, other Headquarters-related
capital balances, and a working capital allocation, as determined by the
Committee (prior to the Determination Date). Total Company Average Capital
Balances includes all assets except cash in excess of that attributable to day-
to-day operations, and tax-related net assets, plus the present value of
operating leases less all non-interest bearing liabilities.

     2.11 "Fiscal Year" means the 1999 fiscal year of the Company and each
succeeding fiscal year of the Company.

     2.12 "Officer" means an officer (whether or not a member of the Company's
Board of Directors) employed by the Company or any Affiliated Company.

     2.13 "Participant" means as to any Performance Cycle, an Officer who has
been selected by the Committee for participation in the Plan for such
Performance Cycle.

     2.14 "Performance Cycle" means any fiscal period of not less than two
consecutive Fiscal Years nor more than five consecutive Fiscal Years, as
determined by the Committee in its sole discretion.

     2.15 "Performance Goals" means the goal(s) (or combined goals(s))
determined by the Committee (in its sole discretion) to be applicable to a
Participant for a Performance Cycle. As determined by the Committee, the
Performance Goals applicable to each Participant shall provide for a targeted
level or levels of achievement using one or more of the following measures: (a)
Capital Control, (b) Comparable Store Sales; (c) Earnings; (d) Economic Value
Added, (d) Return on Equity; (e) Return on Invested Capital; (f) Return on Net
Assets; (g) Sales Volume; (h) Spread, and (i) Total Sales. As determined in the
discretion of the Committee, the Performance Goals for any Performance Cycle
may: (a) differ among Participants, (b) relate to performance on a Company-wide
or divisional basis, and/or (c) provide for a comparison of actual performance
by the Company or a division to actual performance by a group of competitors
determined in the discretion of the Committee. For each Performance Cycle, the
Performance Goals applicable to each Participant shall be set forth in writing
on or prior to the Determination Date.
<PAGE>

     2.16 "Plan" means the Executive Long-Term Cash Award Performance Plan, as
set forth in this document and as hereafter amended from time to time.

     2.17 "Return on Equity" means the Company's or a division's Earnings for
the Performance Cycle, expressed as a percentage of the Company's or a
division's average shareholders' equity over the Performance Cycle.

     2.18 "Return on Invested Capital" (or "ROIC") means the Company's or a
division's Net Operating Profit After Tax (NOPAT) divided by their respective
Average Capital Balances over the same period of time. For a division, NOPAT
includes not only the division-specific revenues and directly controllable
expenses, but also may include shared costs for applicable Information
Technology, Distribution, and other Headquarters-related expenses. Prior to
applying taxes, operating profits are adjusted for interest expense on the
present value of operating leases. Divisional Average Capital Balances is
defined as an average of both directly controlled assets (Inventory, Property
Plant and Equipment, Net Lease Rights and the present value of operating leases)
as well as any applicable shared assets for related Information Technology,
Distribution, other Headquarters-related capital balances, and a working capital
allocation. For the Company, NOPAT means after tax earnings, adjusted for
interest on the present value of operating leases but excluding interest expense
or income on debt and cash. Total Company Average Capital Balances includes all
assets except cash in excess of that attributable to day-to-day operations, and
tax-related net assets, plus the present value of operating leases less non-
interest bearing liabilities.

     2.19 "Return on Net Assets" means the Company's or division's Earnings for
the Performance Cycle, expressed as a percentage of the Company's or a
division's average assets for Performance Cycle.

     2.20 "Sales Volume" means the total sales volume per store of the Company
or one of its divisions for the Performance Cycle.

     2.21 "Spread" means the difference between the Company's or a division's
ROIC for a Performance Cycle and the Weighted Average Cost of Capital. In
practice, it can be used as an alternative method of calculating Economic Value
Added, by simply multiplying the calculated spread by the Average Capital
figures.

     2.22 "Termination of Employment" means the time when the employee-employer
relationship between the Participant and the Company and its Affiliated
Companies is terminated for any reason, including, but not limited to, a
termination by resignation, discharge, death, permanent disability, retirement,
or the disaffiliation of an Affiliated Company, but excluding any such
termination where there is a simultaneous reemployment by either the Company or
one of its Affiliated Companies.

     2.23 "Total Sales" means the Company's or a division's net sales for the
Performance Cycle.

     2.24 "Weighted Average Cost of Capital" (or "WACC") means the weighted
average of the Company's cost of debt and cost of capital. The weighting is
determined by comparing the balance of the Company's debt (acquired debt plus
capitalized leases)
<PAGE>

to the balance of the Company's equity based upon market value (rather than book
value).

3.   Administration of the Plan
     --------------------------

     3.1 The Plan shall be administered by the Committee, which shall consist of
no fewer than two members of the Company's Board of Directors, who shall be
appointed and serve at the pleasure of the Company's Board of Directors. No
member of the Company's Board of Directors who is not an "outside director"
under Code section 162(m) shall serve on the Committee.

     3.2 Subject to the provisions of the Plan, the Committee shall have
exclusive authority to select the Participants, and to determine the target
Award levels, the times when Awards will be granted, and the Performance Goals
which must be achieved prior to payment of any Awards. For each Performance
Cycle, all actions by the Committee shall be taken by the Determination Date.

     3.3 The Committee shall have all discretion and authority necessary or
appropriate to administer the Plan, including, but not limited to, the power to
interpret the Plan, to prescribe, amend and rescind rules and regulations
relating to it, and to make all other determinations necessary or advisable in
the administration of the Plan, and all such determinations shall be final and
binding upon all persons having and interest in the Plan.

     3.4 A majority of the Committee shall constitute a quorum, and the acts of
a majority of the members present at a meeting at which the quorum is present or
any action taken without a meeting by a writing executed by a majority of the
Committee shall constitute the act of the Committee.

     3.5 All expenses and liabilities incurred by the Committee in the
administration of the Plan shall be borne by the Company. The Committee may
employ attorneys, consultants, accountants, or other persons. The Committee, the
Company and its officers and directors shall be entitled to rely upon the
advice, opinion, or valuations of any such persons. No member of the Committee
shall be personally liable for any action, determination, or interpretation
taken or made with respect to the Plan, unless such action, determination, or
interpretation constitutes criminal misconduct, willful negligence or
demonstrates bad faith and all members of the Committee shall be fully protected
by the Company in respect to any such action, determination or interpretation.

4.   Eligibility and Participation
     -----------------------------

     The Plan is designed for Officers whose responsibilities significantly
influence Company results. Participants shall be selected by the Committee prior
to or on the Determination Date. Participation in the Plan is on a Performance
Cycle basis and in the sole discretion of the Committee. Thus, an Officer who is
selected for participation in a given Performance Cycle is in no way guaranteed
to be selected for participation in any subsequent Performance Cycle or
Performance Cycles.
<PAGE>

5.   Determination of Awards
     -----------------------

     5.1 Prior to or on the Determination Date, the Committee, in its sole
discretion shall assign each Participant a target Award expressed as a
percentage of the Participant's average annual base salary during the
Performance Cycle.

     5.2 On or prior to the Determination Date, the Committee, in its sole
discretion, shall establish a formula for purposes of determining the actual
Award (if any) payable to each Participant. Each formula shall: (a) be in
writing; (b) be based on a comparison of actual performance to the Performance
Goals; (c) provide for the payment of a Participant's target Award if the
Performance Goals for the Performance Cycle are achieved; and (d) provide for an
                                                          ---
actual Award greater than or less than the Participant's target Award, depending
upon the extent to which actual performance exceeds or falls below the
Performance Goals.

     5.3 After the end of the each Performance Cycle, the Committee shall
certify in writing the extent to which the Performance Goals applicable to each
Participant for the Performance Cycle were achieved or exceeded. The actual
Award for each Participant shall be determined by applying the formula
established pursuant to Section 5.2 of the Plan to the level of actual
performance that has been certified by the Committee. However, each
Participant's actual Award (if any) shall be subject to the maximum provided in
Section 6.

     5.4 No Awards shall be paid to a Participant for a Performance Cycle unless
the minimum actual performance for the Performance Cycle specified by the
Committee pursuant to Section 5.2 of the Plan is achieved.

     5.5 The Committee, in its sole discretion, may eliminate any Participant's
Award, or reduce it below that which otherwise would be payable in accordance
with the Plan.

6.   Maximum Award Payable
     ---------------------

     For any Performance Cycle, the maximum Award payable to any Participant
under the Plan shall be $8,000,000.

7.   Payment of Award
     ----------------

     7.1 Except as provided in Section 7.2 of the Plan or as otherwise
determined by the Committee, payment of Awards (if any) for a Performance Cycle
will be made in cash or its equivalent on or about the first April 1 following
the end of the Performance Cycle. If the Committee (in its discretion) so
determines, payment of all or part of an Award to one or more Participants may
be deferred for a period not to exceed five years after the date when payment
otherwise would have been made. Any such deferral shall be subject to such rules
and procedures as the Committee (in its discretion) shall determine. For example
(but not by way of limitation), the Committee may determine that a deferred
Award shall be forfeited unless the Participant remains an Officer through the
scheduled payment date.
<PAGE>

     7.2 Unless otherwise specifically determined by the Committee, a
Participant actually will be entitled to payment of an Award only if the
Participant is an Officer on the date of payment (and except to the limited
extent provided in the following sentence). If, after the completion of a
Performance Cycle, a Participant incurs a Termination of Employment due to death
or permanent disability, the Participant still shall be entitled to the payment
of any Award for such Performance Cycle otherwise payable to the Participant. In
the event an Award is payable to a Participant subsequent to the Participant's
death, such payment shall be made to the Participant's estate.

     7.3 The Company shall withhold all applicable income and other taxes from
any Award payment to any Participant, including any federal, FICA, state and
local taxes.

     7.4 Each Award shall be payable solely from the general assets of the
Company. Each Participant's right to payment of an Award (if any) shall be
solely as an unsecured general creditor of the Company.

8.   Employment Rights
     -----------------

     Nothing in the Plan shall confer upon any Participant the right to continue
in the employ of the Company or its Affiliated Companies or shall interfere with
or restrict in any way the rights of the Participant's employer to discharge or
change the terms of employment of any Participant at any time for any reason
whatsoever, with or without cause.

9.   Effect on Other Plans
     ---------------------

     The adoption of the Plan shall not affect any other equity or other
compensation or incentive plan in effect for the Company or any Affiliated
Company, and the Plan shall not preclude the Company's Board of Directors from
establishing any other forms of incentive compensation for Officers.

10.  Amendment or Termination of the Plan
     ------------------------------------

     The Board, in its sole discretion, may alter, amend, or terminate the Plan
or any part thereof at any time and for any reason; provided, however, that to
the extent required to ensure the Plan's qualification under Code section 162(m)
as "performance-based compensation", any such amendment shall be subject to
stockholder approval.

11.  Effective Date
     --------------

     The Plan originally was effective as of January 23, 1996. This amended and
restated Plan is effective as of January 26, 1999, subject to the approval of
the Plan by a majority of the shares of the common stock of the Company that are
present in person or by proxy and entitled to vote at the 1999 Annual Meeting of
Stockholders.<PAGE>

                                                                January 14, 1999

Fullcomm, Inc.
Brendan G. Elliot
President
11 Chambers Street
Princeton, NJ 08542

Re:     Memorandum of Understanding: Placement Agent and Financial
        Advisory Engagement
--------------------------------------------------------------------------------

Board of Directors

Gentlemen:

We are pleased to submit the following proposal whereby R.K. Grace & Company
agrees to act as placement agent and financial advisor ("Agent/Advisor") to
Fullcomm, Inc. ("Fullcomm" or the "Company"), for purposes of this Agreement,
Fullcomm shall be deemed to include all affiliates of the Company. As
Agent/Advisor, R.K. Grace & Company will provide strategic and financial
advisory services including arranging debt and/or equity capital for the
Company. The services described herein shall be collectively referred to as the
"Engagement".

1.      Fullcommm Objectives

It is our understanding that Fullcomm's objectives with respect to its future
strategic development include the following:

(i)     to have Agent/Advisor review the final offering memorandum.

(ii)    to offer and sell up to USD $3 million or such other amount as agreed
        upon, in a private placement (the "financing") of common stock of the
        Company, $.01 par value (the "securities"). Such private placement shall
        be pursuant to an exemption from registration under all applicable
        federal and state securities laws and regulations, including, but not
        limited to, Rule 506 promulgated under Regulation D of the Securities
        Act of 1933, and such private placement shall only be made to accredited
        investors defined under Rule 501(a) thereunder.

(iii)   to file a registration statement within the next eighteen months to do
        an initial public offering of securities.

(iv)    to establish relationships with investors to purchase the Securities,
        and/or a strategic partner whose investment goals, objectives, operating
        philosophy, strategic direction or business are consistent with those of
        Fullcomm.
<PAGE>

2. General Services to be provided by the Agent/Advisor

        The Agent/Advisor shall provide various financial advisory and
        investment banking services, as reasonably requested by Fullcomm
        including:

(i)     anticipate future funding requirements;

(ii)    advising Fullcomm of the reasonableness of its business, operating
        forecasts and projections to be used to solicit prospective Investors;

(iii)   helping Fullcomm develop and evaluate financial and strategic
        alternatives with respect to the Financing and subsequent
        capitalization;

(iv)    assisting Fullcomm as needed to negotiate various contracts, financial
        transactions, and other agreements in connection with strategic
        alliances and acquisitions;

(v)     providing such other financial advisory services as reasonably requested
        by Fullcomm from time to time in connection with its investment banking
        needs including corporate finance services and merger and acquisition
        advice.

3. Compensation with respect to the Financing:

(i)     A cash fee equal to ten percent (10%) of the Gross Proceeds of money
        raised, this fee refers to the overall fee payable to an underwriting
        group which will include the lead underwriter together with any members
        of the selling group.

(ii)    A number of common stock purchase warrants (the "Placement Agents
        Warrants") equal to 10% of the shares sold in the Financing. The
        warrants shall be exercisable for a period of seven years from the
        initial closing date of the Financing. The exercise price of the
        Placement Agent Warrants shall be 110% of the offering price of the
        common stock. In the event that other than common stock is sold, the
        Company and the Placement Agent will mutually agree on an exercise price
        prior to the offering of such securities.

(iii)   The Agent/Advisor shall be entitled to certain piggyback and demand
        registration rights with respect to such common shares underlying the
        Placement Agent Warrants. Such piggyback registration rights shall be as
        follows: (a) from the date hereof until one year from the date of the
        last closing of the Financing; such demand registration rights shall be
        as follows: (b) from one year from the date of the last closing of the
        Financing until two years from the date of the last closing of the
        Financing.

(iv)    A 2% non-accountable expense allowance payable in cash, based on the
        Gross Proceeds of money raised in the Financing.

(v)     Fullcomm will be responsible for the cost of printing expenses for the
        Financing memorandum, travel and related expenses. All such non-
        incidental expenses will be pre-approved by Fullcomm.

4. Merger & Acquisition Services:

<PAGE>

R.K. Grace & Company will advise Fullcomm with respect to the merger and/or
acquisitions of other companies and/or the potential merger or acquisition
of Fullcomm (including the possible merger of Fullcomm and Contessa Corp.),
R.K. Grace & Company will receive a fee based on the aggregate purchase price or
value of the entity being acquired or merged with as follows: 5% of the first
ten million, 4% of the second ten million, 3% thereafter of the aggregate
purchase price for the company being acquired/merged. Such fee will be payable
(in cash or stock at the discretion of the Agent/Advisor) upon completion of the
merger or acquisition completed during the term of this agreement.

5.   Board Seat

R.K. Grace & Company will have the right to designate one person to sit on the
parent company's (Contessa Corp.) Board of Directors for a period of two years
from the closing of the private placement. The Board will be no more than five
members, including R.K. Grace & Company's designee.

6.   Information

Fullcomm will furnish the Agent/Advisor with such information ("Information") as
such Agent/Advisor believes appropriate to the Engagement during the period of
this Engagement, including any extended period. Fullcomm recognizes and confirms
that the Agent/Advisor:

(i)     will use and rely primarily on the Information and on publicly available
        information in performing the services contemplated by the Engagement
        without having independently verified same;

(ii)    does not assume responsibility for the accuracy or completeness of the
        Information and such other information;

(iii)   will not make an appraisal of any assets of the Company.

To the best of Fullcomm's knowledge, the information to be furnished by Fullcomm
will be true and correct in all material respects and will contain all material
facts necessary to make the statements contained therein not misleading.
Fullcomm will promptly notify each Agent of its knowledge of any material
inaccuracy, change in facts, or misstatement in or material omission from, any
Information theretofore delivered to each such agent.

7.   Confidentiality

        The Agent/Advisor agrees to keep confidential, and not to disclose to
any third parties without discussion with Fullcomm, the Information. With
respect to confidentiality, the Information shall be understood not to include:

(i)     publicly available information;

(ii)    information received from third parties who are not officers, employees
        or agents of the Company;

(iii)   information required to be disclosed by applicable law, regulation,
        certified public accountant or court proceeding.

8.   Authority, Modification, Governing Law
<PAGE>

        Fullcomm represents and warrants to the Agent/Advisor that it is
authorized to enter into this Engagement and to consummate the Financing. This
Engagement and the Agent/Advisor Indemnification Agreement and any other letter
attached hereto and made a part hereof, contain the entire agreement between the
parties hereto and may only be modified in writing by the parties hereto. This
agreement shall be interpreted and governed by the laws of the State of Florida.

9.      Escrow

        The Agent/Advisor  and the Company hereto agree that any proceeds
raised in the Financing shall be held in escrow by a mutually agreed upon FDIC
insured Bank, in a non-interest bearing escrow account pending each closing of
the Financing. In the event such Financing is not consummated then such proceeds
held in Escrow will be returned to such investors. Such proceeds held in Escrow
will require written instructions from both the Agent/Advisor and the Company
prior to disbursement.

10.     Term

        This Agreement will be in effect for a one year period from the date of
signing.

11.     Indemnification

        Fullcomm and Agent/Advisor will indemnify each other as follows:

(i)     The Company agrees to indemnify and defend the Agent/Advisor and each
person, if any, who controls the placement agent within the meaning of Section
15 of the Securities Act free and harmless from and against any and all loses,
claims, damages, liabilities and expenses, joint or several (including
reasonable legal or other expenses) incurred by Agent/Advisor and controlling
person in connection with defending any claims or liabilities, whether or not
resulting in any liability to the Agent/Advisor or to any controlling person
which the Agent/Advisor and controlling person mat incur under the Securities
Act or at common law or otherwise, but only to the extent that the losses,
claims, damages, liabilities and expenses shall arise out of or be based upon
any untrue statement, omission of material fact or alleged untrue statement of a
material fact contained in any of the offering documents.

(ii)    The Agent/Advisor agrees to indemnify and defend Fullcomm from and
against any and all loses, claims, damages, liabilities and expenses in
defending any claims or liabilities, but only to the extent that the losses,
claims, damages, liabilities and expenses shall arise out of or be based upon
any untrue statement or other acts of negligence in any documents placed in
writing with respect to the offering by the Agent/Advisor.

(iii)   The indemnity provisions contained in this section 10 shall survive the
any offering and shall inure to the benefit of the successors of any person who
controls the Agent/Advisor within the meaning of Section 15 of the Securities
Act, and shall be valid irrespective of any investigation made for on behalf of
the Agent/Advisor.

12.     Assignment

        The Company and the Representative agree in principle to the contents
hereof and plan to proceed on the terms set forth herein and in good faith to
finalize the offering. The agreement shall be binding upon and inure to the
benefit of the parties hereto and may not assigned by any party hereto.
<PAGE>

        Should the Representative fail to raise any funds within ninety days
from the signing of this Agreement, the Company will have the option to pursue
any other venues for raising capital.

        We look forward to working with you on the Engagement. If the above
agrees with your general understanding and intentions, please sign the enclosed
copy of this agreement.

                                Sincerely,

                                R.K. Grace & Company

                                By    :  /s/ John D. Kaweske
                                        --------------------

                                Name  : John D. Kaweske
                                Title : Chief Executive Officer

Accepted and agreed to
as of the date first Above written

Fullcomm, Inc.

By    : /s/ Brendan G. Elliott
        ---------------------
Name  : Brendan G. Elliott
Title : President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]