EX-10.1



 





Exhibit 10.1



THE GOLDMAN SACHS AMENDED AND RESTATED

STOCK INCENTIVE PLAN

[20__] YEAR-END OPTION AWARD




This Award Agreement sets forth the terms and conditions of the [20   ] year-end award (this
“Award”) of Nonqualified Stock Options (“[20   ] Year-End Options”) granted to you under The Goldman
Sachs Amended and Restated Stock Incentive Plan (the “Plan”).



1. The Plan. This Award is made pursuant to the Plan, the terms of which are
incorporated in this Award Agreement. Capitalized terms used in this Award Agreement that
are not defined in this Award Agreement have the meanings as used or defined in the Plan.
References in this Award Agreement to any specific Plan provision shall not be construed as
limiting the applicability of any other Plan provision.



2. Award. The Award Statement delivered to you sets forth (i) the Date of Grant of
the [20   ] Year-End Options, (ii) the number of [20   ] Year-End Options and (iii) the Exercise
Price of each [20   ] Year-End Option. Until shares of Common Stock (“Shares”) are delivered to you
pursuant to Paragraph 7 after you exercise your [20   ] Year-End Options, you have no rights as a
shareholder of GS Inc. This Award is conditioned on your executing the related signature card
and returning it to the address designated and/or by the method specified by the date specified,
and is subject to all terms, conditions and provisions of the Plan and this Award Agreement,
including, without limitation, the arbitration and choice of forum provisions set forth in
Paragraph 13. By executing the related signature card (which, among other things, opens
the custody account referred to in paragraph 7 if you have not done so
already), you will have confirmed your acceptance of all of the terms and conditions of this Award
Agreement.



3. Expiration Date. The Expiration Date for your [20   ] Year-End Options is [•] (in
New York). Notwithstanding anything to the contrary in this Award Agreement, but subject to
earlier termination as provided in this Award Agreement or otherwise in accordance with the Plan,
on the Expiration Date all of your then Outstanding [20   ] Year-End Options shall terminate.



4. Vesting.



(a) In General. Except as provided below in Paragraphs 4(b), 4(c), 4(d), 5(a), 5(b),
10(g), and 11, on each Vesting Date you shall become Vested in the number or percentage of your
[20   ] Year-End Options specified next to such Vesting Date on the Award Statement (which may be
rounded to avoid fractional Shares). While continued active Employment is not required in order
for your Outstanding Vested [20   ] Year-End Options to become exercisable, all other terms
and conditions of this Award Agreement shall continue to apply to such Vested [20   ] Year-End
Options, and failure to meet such terms and conditions may result in the termination of this Award
(as a result of which no Shares subject to any such Vested [20   ] Year-End Options would be
delivered).



(b) Death. Notwithstanding any other provision of this Award Agreement, if you die
prior to an applicable Vesting Date, as soon as practicable after the date of death and after such
documentation as may be requested by the Committee is provided to the Committee, any such
[20   ]Year-End Options that were Outstanding but that had not yet become Vested immediately prior
to your death shall become Vested, but all other conditions of this Award Agreement thereafter
shall apply to the representative of your estate.



(c) Extended Absence, Retirement and Downsizing.



(i) Notwithstanding any other provision of this Award Agreement, but subject to Paragraph
5(c), in the event of the termination of your Employment (determined as described in Section 1.2.19
of the Plan) by reason of Extended Absence or Retirement, the condition set forth in Paragraph 5(a)
shall be waived with respect to any [20   ] Year-End Options that were Outstanding but that had not
yet become Vested immediately prior to such termination of Employment (as a result of which such
[20   ] Year-End Options shall become Vested), but all other conditions of this Award Agreement
shall continue to apply.



 









 








(ii) Notwithstanding any other provision of this Award Agreement and subject to your executing
such general waiver and release of claims and an agreement to pay any associated tax liability,
both as may be prescribed by the Firm or its designee, if your Employment is terminated without
Cause solely by reason of a “downsizing,” the condition set forth in Paragraph 5(a) shall be waived
with respect to your [20   ] Year-End Options that were Outstanding but that had not yet become
Vested immediately prior to such termination of Employment (as a result of which such [20   ]
Year-End Options shall become Vested), but all other conditions of this Award Agreement shall
continue to apply. Whether or not your Employment is terminated solely by reason of a “downsizing”
shall be determined by the Firm in its sole discretion. No termination of Employment initiated by
you, including any termination claimed to be a “constructive termination” or the like or a
termination for good reason, will be solely by reason of a “downsizing.”



(d) Change in Control. Notwithstanding any other provision of this Award Agreement,
if there is a Change in Control and your Employment terminates as described in Paragraph 6(d), the
condition set forth in Paragraph 5(a) shall be waived with respect to any [20   ] Year-End Options
that were Outstanding but that had not yet become Vested immediately prior to such termination of
Employment (as a result of which such [20   ] Year-End Options shall become Vested), but all other
terms and conditions of this Award Agreement shall continue to apply.



5. Termination of [20   ] Year-End Options Upon Certain Events.



(a) Unless the Committee determines otherwise, and except as provided in Paragraphs 4(b),
4(c), 4(d) and 10(g), if your Employment terminates for any reason or you otherwise are no
longer actively employed with the Firm, your rights in respect of your [20   ] Year-End Options
that were Outstanding but had not yet become Vested immediately prior to your termination of
Employment immediately shall terminate.



(b) Unless the Committee determines otherwise, your rights in respect of all of your
Outstanding [20   ] Year-End Options (whether or not Vested) shall immediately terminate, such
[20   ] Year-End Options shall cease to be Outstanding, and no Shares shall be delivered in respect
thereof, if at any time prior to the date you exercise such [20   ] Year-End Options:



(i) you attempt to have any dispute under the Plan or this Award Agreement resolved in any
manner that is not provided for by Paragraph 13 or Section 3.17 of the Plan;



(ii) any event that constitutes Cause has occurred;



(iii) you in any manner, directly or indirectly, (A) Solicit any Client to transact business
with a Competitive Enterprise or to reduce or refrain from doing any business with the Firm, (B)
interfere with or damage (or attempt to interfere with or damage) any relationship between the Firm
and any such Client, (C) Solicit any person who is an employee of the Firm to resign from the Firm
or to apply for or accept employment with any Competitive Enterprise or (D) on behalf of yourself
or any person or Competitive Enterprise hire, or participate in the hiring, of
any Selected Firm Personnel or identify, or participate in the identification of, Selected
Firm Personnel for potential hiring whether as an employee or consultant or otherwise;



(iv) you fail to certify to GS Inc., in accordance with procedures established by the
Committee, that you have complied, or the Committee determines that you in fact have failed to
comply, with all the terms and



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conditions of the Plan and this Award Agreement. By exercising any
[20   ] Year-End Option under this Award Agreement, or by accepting the delivery of Shares under
this Award Agreement, you shall be deemed to have represented and certified at such time that you
have complied with all of the terms and conditions of the Plan and this Award Agreement;



(v) the Committee determines that you failed to meet, in any respect, any obligation you may
have under any agreement between you and the Firm, or any agreement entered into in connection with
your Employment with the Firm, including, without limitation, any offer letter, employment
agreement or any shareholders’ agreement to which other similarly situated employees of the Firm
are a party; or



(vi) as a result of any action brought by you, it is determined that any of the terms or
conditions for exercise of your [20   ] Year-End Options or delivery of Shares in respect thereto
are invalid.



For purposes of the foregoing, the term “Selected Firm Personnel” means: (i) any Firm employee or
consultant (A) with whom you personally worked while employed by the Firm, or (B) who at any time
during the year immediately preceding your termination of Employment with the Firm, worked in the
same division in which you worked; and (ii) any Managing Director of the Firm.



(c) Without limiting the application of Paragraph 5(b), your Outstanding [20   ]
Year-End Options that become Vested in accordance with Paragraph 4(c)(i) immediately shall
terminate, and such Outstanding [20   ] Year-End Options shall cease to be Outstanding if, prior to the
original Vesting Date with respect to such [20   ] Year-End Options, you (i) form, or acquire a 5%
or greater equity ownership, voting or profit participation interest in, any Competitive
Enterprise, or (ii) associate in any capacity (including, but not limited to, association as an
officer, employee, partner, director, consultant, agent or advisor) with any Competitive
Enterprise. Notwithstanding the foregoing, unless otherwise determined by the Committee in its
discretion, this Paragraph 5(c) will not apply if your termination of Employment by reason of
Extended Absence or Retirement is characterized by the Firm as “involuntary” or by “mutual
agreement” other than for Cause and if you execute such a general waiver and release of claims and
an agreement to pay any associated tax liability, both as may be prescribed by the Firm or its
designee. No termination of Employment initiated by you, including any termination claimed to be a
“constructive termination” or the like or a termination for good reason, will constitute an
“involuntary” termination of Employment or a termination of Employment by “mutual agreement.”



6. Exercisability of Vested [20   ] Year-End Options.



(a) In General. Only [20   ] Year-End Options that are Outstanding and Vested can be
exercised. Outstanding Vested [20   ] Year-End Options must be exercised subject to Paragraph 6(e)
and in accordance with procedures established by the Committee from time to time but, subject to
Paragraphs 6(d) and 10(g), not earlier than the Initial Exercise Date. The Initial Exercise Date
for your [20   ] Year-End Options shall be a date specified by the Committee that is not more than
thirty (30) Business Days after the date listed on the Award Statement as the Initial Exercise
Date if that date is during a Window
Period or, if the date listed on the Award Statement is not during a Window Period, on a date
specified by the Committee that is not more than 30 Business Days after the first Trading Day of
the first Window Period that begins thereafter. For this purpose, a “Trading Day” is a day on
which Shares trade regular way on the New York Stock Exchange. The Committee may from time to time
prescribe periods during which the Vested [20   ] Year-End Options shall not be exercisable. In
addition, the exercise procedures established by the Committee may require you
to take specific steps in order to exercise your [20   ] Year-End Options within a minimum time
prior to the effective date of exercise.



(b) Death. Notwithstanding any other provision of this Award Agreement, if you die
and, at the time of your death, you have any Outstanding [20   ] Year-End Options, the Transfer
Restrictions described in Paragraph 6(e) with respect to any [20   ] Year-End Options and any Shares
delivered in respect thereto shall be removed, and such Outstanding [20   ] Year-End Options (i)
shall be exercisable by the representative of your estate in accordance with Paragraph 6(a)
beginning on the later of (x) the Initial Exercise Date and (y) a date that is as soon as
practicable after the date of death and after such documentation as may be requested by the
Committee is provided to the Committee and (ii) unless earlier terminated in accordance with the
terms of this Award Agreement, shall remain exercisable until the Expiration Date.





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(c) Other Terminations of Employment. Subject to Paragraphs 5(b) and 5(c), upon the
termination of your Employment for any reason (other than death or Cause), but subject to Paragraph
10(g), your then Outstanding Vested [20   ] Year-End Options shall be exercisable in accordance with
Paragraph 6(a) beginning on the Initial Exercise Date and, unless earlier terminated in accordance
with the terms of this Award Agreement, shall remain exercisable until the Expiration Date.



(d) Change in Control. Notwithstanding anything to the contrary in this Award
Agreement, if a Change in Control shall occur, and within 18 months thereafter the Firm terminates
your Employment without Cause or you terminate your Employment for Good Reason, as provided in
Paragraph 4(d), all of your [20   ] Year-End Options that were Outstanding but that had not yet
become Vested immediately prior to your termination of Employment, shall become Vested, and all of
your Outstanding Vested [20   ] Year-End Options shall become exercisable and, unless earlier
terminated in accordance with the terms of this Award Agreement, shall remain exercisable until the
Expiration Date and the Transfer Restrictions described in Paragraph 6(e) with respect to any
[20   ] Year-End Options and any Shares delivered in respect thereto shall be removed.



(e) Transfer Restrictions. Subject to Paragraphs 6(b), 6(d) and 10(g),
notwithstanding any other provision of this Award Agreement, (i) (A) no sale, exchange, transfer,
assignment, pledge, hypothecation, fractionalization, hedge or other disposition of (including
through the use of any cash-settled instrument) any Shares acquired in connection with the exercise
of your [20   ] Year-End Options, whether voluntarily or involuntarily by you; and (B) no exercise
of any [20   ] Year-End Options involving the sale of Shares acquired in respect of such exercise
(the restrictions in clauses (i)(A) and (i)(B) of this Paragraph 6(e) being referred to
collectively as the “Transfer Restrictions”) may be effected before the first anniversary of the
Initial Exercise Date (the “Transferability Date”), and any purported sale, exchange, transfer,
assignment, pledge, hypothecation, fractionalization, hedge, other disposition or exercise in
violation of the Transfer Restrictions shall be void; and (ii) if and to the extent Shares subject
to your [20   ] Year-End Options are certificated, the certificates representing such Shares, shall
bear a legend specifying that such Shares are subject to the restrictions described in this
Paragraph 6(e) and GS Inc. shall advise its transfer agent to place a stop order against the
transfer of such Shares in violation of such Transfer Restrictions. Any Shares acquired in
connection with any exercise of your [20   ] Year-End Options prior to the Transferability Date
shall be held in a custody or other account designated by the Firm. Within 30 Business Days after
the Transferability Date (or any other date for which removal of the Transfer Restrictions is
called for), GS Inc. shall take, or shall cause to be taken, such steps as may be necessary to
remove the Transfer Restrictions.



[(f) Escrow. Pending receipt of any consents deemed necessary or appropriate by the
Firm, Shares acquired in connection with the exercise of of your [20   ] Year-End Options initially
may be delivered into an escrow account meeting such terms and conditions as may be determined by
the Firm. Any such escrow arrangement shall, unless otherwise determined by the Firm, provide that
(i) the escrow agent shall have the exclusive authority to vote such Shares while held in escrow
and (ii) dividends paid on Shares held in escrow may be accumulated and shall be paid as determined
by GS Inc. in its discretion. By accepting your [20   ] Year-End Option Award, you have
agreed to execute such documents and take such steps as may be deemed necessary or appropriate
by the Firm to establish and maintain any such escrow account.]



7. Delivery. Subject to Section 6(e), unless otherwise determined by the Committee,
or as otherwise provided in this Award Agreement, including, without limitation, Paragraphs 10 and
11, after receipt of payment of the Exercise Price in respect of a [20   ] Year-End Option, a Share
shall be delivered by book-entry credit to the Custody Account maintained by you, and until the
Transferability Date, shall be subject to the Transfer Restrictions. Notwithstanding the
foregoing, if you are or become considered by GS Inc. to be one of its “covered employees” within
the meaning of Section 162(m) of the Code, then you shall be subject to the provisions of Section
3.21.1 of the Plan, as a result of which delivery of your Shares may be delayed. In accordance
with Section 1.3.2(h) of the Plan, in the discretion of the Committee, in lieu of all or any
portion of the Shares otherwise deliverable upon the exercise of all or any portion of your [20   ]
Year-End Options, the Firm may deliver cash, other securities, other Awards or other property, and
all references in this Award Agreement to deliveries of Shares shall include such deliveries of
cash, other securities, other Awards or other property.



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8. Repayment. The provisions of Section 2.3.5 of the Plan (which requires Award
recipients to repay to the Firm amounts delivered to them if the Committee determines that all
terms and conditions of this Award Agreement in respect of such exercise were not satisfied) shall
apply to this Award.



9. Non-transferability. Except as may otherwise be provided by the Committee, the
limitations on transferability set forth in Section 3.5 of the Plan shall apply to this Award. Any
purported transfer or assignment in violation of the provisions of this Paragraph 9 or Section 3.5
of the Plan shall be void.



10.  Certain Additional Terms, Conditions and Agreements.



(a) The delivery of Shares upon exercise of your [20   ] Year-End Options is conditioned on
your satisfaction of any applicable withholding taxes in accordance with Section 3.2 of the Plan.



(b) If you are or become a Managing Director, your rights in respect of your [20   ] Year-End
Options are conditioned on your becoming a party to any shareholders’ agreement to which other
similarly situated employees of the Firm are a party.



(c) Your rights in respect of your [20   ] Year-End Options are conditioned on the receipt to
the full satisfaction of the Committee of any required consents (as described in Section 3.3 of the
Plan) that the Committee may determine to be necessary or advisable.



(d) You understand and agree, in accordance with Section 3.3 of the Plan, by accepting this
Award, you have expressly consented to all of the items listed in Section 3.3.3(d) of the Plan,
which are incorporated herein by reference.



(e) You understand and agree, in accordance with Section 3.22 of the Plan, by accepting this
Award you have agreed to be subject to the Firm’s policies in effect from time to time concerning
trading in Shares, hedging or pledging Shares and equity-based compensation or other awards
(including, without limitation, the Firm’s “Policies With Respect to Transactions Involving GS
Shares, Equity Awards and GS Options by Persons Affiliated with GS Inc.”), and confidential or
proprietary information, and to effect sales of Shares delivered to you in respect of your [20   ]
Year-End Options in accordance with such rules and procedures as may be adopted from time to time
with respect to sales of such Shares (which may include, without limitation, restrictions relating
to the timing of sale requests, the manner in which sales are executed, pricing method,
consolidation or aggregation of orders and volume limits determined by the Firm). In addition, you
understand and agree that you shall be responsible for all brokerage costs and other fees or
expenses associated with your Award, including without limitation, such brokerage costs or
other fees or expenses in connection with the exercise of your [20   ] Year-End Options or the
sale of Shares delivered to you hereunder.



(f) Without limiting the application of Paragraph 6(e), GS Inc. may affix to Certificates
representing Shares issued pursuant to this Award Agreement upon exercise of your [20   ] Year-End
Options any legend that the Committee determines to be necessary or advisable (including to reflect
any restrictions to which you may be subject under a separate agreement with GS Inc.). GS Inc. may
advise the transfer agent to place a stop order against any legended Shares.



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(g) Without limiting the application of Paragraph 5(b), if:




(i) your Employment with the Firm terminates solely because you resigned to accept
employment at a governmental agency, self-regulatory organization, or other employer and as
a result of such new employment the Firm determines that your continued holding of your
[20   ] Year-End Options would violate standards of ethical conduct applicable to you
(“Conflicted Employment”); or




(ii) following your termination of Employment other than described in Paragraph
10(g)(i), you notify the Firm that you have accepted or intend to accept Conflicted
Employment at a time when you continue to hold Outstanding [20   ] Year-End Options that are
Vested;



then, in the case of Paragraph 10(g)(i) above, the condition set forth in Paragraph 5(a) shall be
waived with respect to any [20   ] Year-End Options you then hold that had not yet become Vested
(as a result of which such [20   ] Year-End Options shall become Vested) and, in the cases of
Paragraph 10(g)(i) and 10(g)(ii) above, (a) such Outstanding Vested [20   ] Year-End Options shall
be cancelled and as soon as practicable after the Committee has received satisfactory
documentation relating to your Conflicted Employment (the “Release Date”) you shall receive a
payment equal to the excess (if any) of (x) the Fair Market Value of a Share on the Business Day
immediately prior to the Release Date multiplied by the number of your [20   ] Year-End Options
that were Outstanding and Vested immediately prior to such cancellation over (y) the Exercise
Price multiplied by the number of such Outstanding Vested [20   ] Year-End Options; or (b) both the
Initial Exercise Date and Transferability Date shall become the Release Date. Notwithstanding
anything else herein, any such actions described in this Paragraph 10(g) shall be permitted only
at such time and if and to the extent as would not result in the imposition of any additional tax
under Section 409A of the Code.



11. Right of Offset. The obligation to deliver Shares under this Award Agreement upon
exercise of your [20   ] Year-End Options is subject to Section 3.4 of the Plan, which provides for
the Firm’s right to offset against such obligation any outstanding amounts you owe to the Firm and
any amounts the Committee deems appropriate pursuant to any tax equalization policy or agreement.



12. Amendment. The Committee reserves the right at any time to amend the terms and
conditions set forth in this Award Agreement, and the Board may amend the Plan in any respect;
provided that, notwithstanding the foregoing and Sections 1.3.2(f), 1.3.2(g) and 3.1 of the Plan,
no such amendment shall materially adversely affect your rights and obligations under this Award
Agreement without your consent; and provided further that the Committee expressly reserves its
rights to amend the Award Agreement and the Plan as described in Sections 1.3.2(h)(1), (2) and (4)
of the Plan. Any amendment of this Award Agreement shall be in writing signed by an authorized
member of the Committee or a person or persons designated by the Committee.



13. Arbitration; Choice of Forum. BY ACCEPTING THIS AWARD, YOU UNDERSTAND AND AGREE
THAT THE ARBITRATION AND CHOICE OF FORUM PROVISIONS SET FORTH IN SECTION 3.17 OF THE PLAN, WHICH
ARE EXPRESSLY INCORPORATED HEREIN BY
REFERENCE AND WHICH, AMONG OTHER THINGS, PROVIDE THAT ANY DISPUTE, CONTROVERSY OR CLAIM
BETWEEN THE FIRM AND YOU ARISING OUT OF OR RELATING TO OR CONCERNING THE PLAN OR THIS AWARD
AGREEMENT SHALL BE FINALLY SETTLED BY ARBITRATION IN NEW YORK CITY, PURSUANT TO THE TERMS MORE
FULLY SET FORTH IN SECTION 3.17 OF THE PLAN, SHALL APPLY.



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14. Governing Law. THIS AWARD SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.



15. Headings. The headings in this Award Agreement are for the purpose of convenience
only and are not intended to define or limit the construction of the provisions hereof.



IN WITNESS WHEREOF, GS Inc. has caused this Award Agreement to be duly executed and delivered
as of the Date of Grant.



	 	 	 	 	 
	 	 	THE GOLDMAN SACHS GROUP, INC.
	 
	 	 	 	 
	 

	 	 
	 	By:
	 

	 	 	 	Name: [Name]
	 

	 	 	 	Title: [Title]







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