Document:

EX-10.32

 

EXHIBIT 10.32

THE GOLDMAN SACHS GROUP, INC.

NON-QUALIFIED DEFERRED COMPENSATION PLAN

FOR 

U.S. PARTICIPATING MANAGING DIRECTORS

ARTICLE 1

INTRODUCTION

1.1 Purpose of Plan

The Goldman Sachs Group, Inc. Non-Qualified Deferred Compensation Plan for U.S. Participating
Managing Directors is intended to promote the interests of GS Inc. and its shareholders by
encouraging certain Eligible Employees to remain in the employ of the Firm by providing them with a
means by which they may request to defer receipt of a portion of their Eligible Compensation.

ARTICLE 2

DEFINITIONS

Wherever used herein, the following terms have the meanings set forth below, unless a different
meaning clearly is required by the context:

2.1 Account means, for each Participant, a notional account maintained on the books and records of
GS Inc. (by GS Inc. or such third party record keeper or record keepers as GS Inc. may from time to
time appoint) that is established for his or her benefit and as to which amounts are credited under
Section 5.1.

2.2 Administrative Committee means the person or persons designated by the Compensation Policy
Committee or the Board of Directors with the authority to perform day-to-day administrative
functions for the Plan. If no such person is so serving at any time, the Compensation Policy
Committee shall be the Administrative Committee.

2.3 Board of Directors means the Board of Directors of GS Inc.

2.4 Compensation Policy Committee means the GS Inc. Compensation Policy Committee, as it may be
constituted from time to time.

2.5 Code means the Internal Revenue Code of 1986. Reference to any section or subsection of the
Code includes reference to any comparable or succeeding provisions of any legislation that amends,
supplements or replaces such section or subsection.

 

 

2.6 Deferral means the portion of a Participant’s Eligible Compensation that is deferred in
accordance with Section 4.1 hereof.

2.7 Deferral Date means, with respect to each Plan Year, the earliest date GS Inc. determines that
Eligible Compensation subject to a Deferral Request would have been paid to the Eligible Employee
in the absence of the Plan, or such other date or dates as may be selected by the Administrative
Committee in its sole discretion prior to the date Deferral Requests are required to be returned to
the Administrative Committee for a Plan Year.

2.8 Deferral Request means any request by a Participant to make a Deferral hereunder by submitting
a Deferral Request Form in accordance with Section 4.1 hereof.

2.9 Deferral Request Form means the form (which may be in electronic form) specified by the
Administrative Committee from time to time pursuant to which an Eligible Employee can make a
Deferral Request.

2.10 Distribution Date means, with respect to each Deferral made by a Participant, the date on
which an amount shall become payable to a Participant in accordance with Article 7 hereof.

2.11 Effective Date means November 27, 2004, the date as of which the Plan first became effective.

2.12 Eligible Compensation means, for each Eligible Employee, with respect to each Plan Year the
amount the Firm determines in its sole discretion otherwise would have been payable to the Eligible
Employee as a gross end-of-year bonus (excluding any amounts payable to the Eligible Employee that
are directly attributable to the performance of services prior to the beginning of such Plan Year),
and before giving effect to any Deferral, but after giving effect to: (i) any “voluntary
contribution election” under The Goldman Sachs Employees’ Profit Sharing Retirement Income Plan (as
that term is defined therein) or to any similar compensation reduction election made in connection
with a plan subject to Section 401(k) of the Code; (ii) the cost of contribution by the Firm for
any public or private employee benefit plan; (iii) any contribution to the Money Purchase Plan;
(iv) any amount the Firm decides to contribute as part of compensation to the Goldman Sachs UK
Retirement Plan or GSI International Pension Plan or any other plan maintained outside the United
States primarily for non-U.S. citizens or residents that the Administrative Committee determines is
similar thereto; (v) the value of any award recommendation in respect of any plan or arrangement
the Firm determines is similar to The Goldman Sachs UK Conditional Share Reward Plan, including,
without limitation, any such plan or arrangement involving the establishment and funding of an
“employee benefit trust” in the United Kingdom; and (vi) any request to participate in the Firm’s
PMD Discount Stock Program on a pre-tax (but not after-tax) basis . Unless otherwise permitted by
the Administrative Committee no year-end award granted under The Goldman Sachs Amended and Restated
Stock Incentive Plan, as in effect from time to time, shall constitute Eligible Compensation.
Notwithstanding the

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foregoing, the Administrative Committee, in its discretion, with respect to any Eligible Employee
or Eligible Employees (on a uniform or non-uniform basis) shall have the authority to (a) designate
any jurisdiction or jurisdictions from which amounts earned by any Eligible Employee will be
excluded from Eligible Compensation and (b) include or exclude, as the case may be, any amounts
that otherwise would be excluded or included, as the case may be, in any Eligible Employee’s
Eligible Compensation.

2.13 Eligible Employee means, unless otherwise provided by the Administrative Committee, in a Plan
Year, an individual (i) who is a participant in The Goldman Sachs Partner Compensation Plan (“PCP”)
or The Goldman Sachs Restricted Partner Compensation Plan (“RPCP”), (ii) who earned Minimum
Eligible Compensation for either or both of the immediately preceding Plan Year or the second
preceding Plan Year, (iii) who is designated by the Administrative Committee as eligible to
participate in the Plan or is a member of a class of employees who is designated by the
Administrative Committee as eligible to participate in the Plan for the Plan Year and (iv) who is
not eligible to make a deferral under The Goldman Sachs Group, Inc. Non-Qualified Deferred
Compensation Plan for U.K. Participating Managing Directors. The Administrative Committee may, in
its sole discretion, add or exclude any individual or any member of a class of individuals from
being considered an Eligible Employee. An individual shall first be considered an Eligible
Employee on the date he or she first receives written notification from the Administrative
Committee that he or she is eligible to participate in the Plan. Unless otherwise provided by the
Administrative Committee (including, by reason of legal, tax or other regulatory restrictions or
impediments to the individual or to the Firm arising out of a country other than the United States
or United Kingdom) an individual that is an Eligible Employee for any Plan Year shall, for any
subsequent Plan Year in which he or she participates in the PCP or RPCP, be eligible to participate
in the Plan (or in The Goldman Sachs Group, Inc. Non-Qualified Deferred Compensation Plan for U.K.
Participating Managing Directors, if in such year he or she is no longer a resident for tax
purposes in the United States but is a U.K. Employee, as defined in The Goldman Sachs Group, Inc.
Non-Qualified Deferred Compensation Plans for U.K. Participating Managing Directors).

2.14 ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.
Reference to any section or subsection of ERISA includes reference to any comparable or succeeding
provisions of any legislation that amends, supplements or replaces such section or subsection.

2.15 Firm means GS Inc. and its subsidiaries and affiliates.

2.16 GS Inc. means The Goldman Sachs Group, Inc., and any successor thereto.

2.17 Investment Committee means a committee of two or more individuals selected by the
Administrative Committee, which shall have the authority to select the Notional Investments that
are made available from time to time under the Plan.

2.18 Maximum Aggregate Deferral Amount means, with respect to each Plan Year, $100 million or such
other amount as may be determined by GS Inc. from time to time,

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which shall be the maximum total of all Deferrals for all Participants permitted under the Plan for
such Plan Year. GS Inc. may, in its discretion, (i) aggregate the Plan with such other deferred
compensation plan or plans as it may determine for purposes of applying the Maximum Aggregate
Deferral Amount and (ii) allocate the Maximum Aggregate Deferral Amount among the Plan and any
deferred compensation plans that are so aggregated with the Plan in any manner deemed appropriate
by it.

2.19 Maximum Deferral Amount means, unless otherwise determined by GS Inc., with respect to each
Participant for each Plan Year, the lesser of: (i) 50% of the Participant’s Eligible Compensation
and (ii) $1 million.

2.20 Minimum Deferral Amount means, with respect to each Participant for each Plan Year, $100,000
or such other amount as may be determined by the Administrative Committee prior to the date
Deferral Request Forms are required to be returned to the Administrative Committee for a Plan Year,
which shall be the minimum amount that a Participant may request as a Deferral for a Plan Year.

2.21 Minimum Eligible Compensation means total compensation of at least $200,000 or such other
amount as may be determined by the Administrative Committee.

2.22 Money Purchase Plan means The Goldman Sachs Money Purchase Pension Plan, as amended from time
to time, or any successor thereto.

2.23 Notional Investment means a hypothetical investment made available under the Plan by the
Investment Committee from time to time in which a Participant’s Account may be deemed to be
invested in whole or in part in accordance with Sections 5.2 and 5.3 hereof in order to measure the
value of the Account.

2.24 Participant means any Eligible Employee who participates in the Plan in accordance with
Article 3.

2.25 Plan means The Goldman Sachs Group, Inc. Non-Qualified Deferred Compensation Plan for U.S.
Participating Managing Directors.

2.26 Plan Year means the 12-month period that coincides with GS Inc.’s fiscal year.

2.27 Total and Permanent Disability means, with respect to any Participant, if such Participant is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or is, by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement benefits for not
less than 3 months under any accident or health plan covering employees of the Firm.

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ARTICLE 3

PARTICIPATION

3.1 Commencement of Participation

Any Eligible Employee who requests to defer part of his or her Eligible Compensation in accordance
with Article 4 shall, if and to the extent the Firm, in its discretion, agrees to follow the
request, become a Participant in the Plan as of the first Deferral Date as of which a Deferral is
credited to the Eligible Employee’s Account in accordance with Section 4.2.

3.2 Continued Participation

A Participant in the Plan shall continue to be a Participant so long as any amount remains credited
to his or her Account.

ARTICLE 4

DEFERRALS

4.1 Deferral Request Form

Subject to the provisions of Article 4 hereof, for each Plan Year for which the Plan is in effect,
an Eligible Employee may, by properly completing a Deferral Request Form and filing it with the
Administrative Committee not later than the date specified by the Administrative Committee and
before the amount of the Eligible Compensation to which the Deferral relates has been determined
(which shall not be later than the last day of the Plan Year immediately preceding the Plan Year
for which the Deferral Request is made, unless the Administrative Committee determines that a later
date is permitted under Section 409A of the Code), request that a Deferral be made on his or her
behalf, on such terms as the Administrative Committee may permit in its sole discretion. The Firm
may, in its sole discretion, determine whether or not to follow any Deferral Request with respect
to any Eligible Employee.

4.2 Mechanics of Deferral

Subject to the provisions of this Article 4, if and to the extent the Firm determines to follow a
Deferral Request, an Eligible Employee’s Eligible Compensation shall be reduced in accordance with
the Participant’s Deferral Request, and the amount of the resulting Deferral shall be credited to
the Participant’s Account as of the Deferral Date.

4.3 Minimum Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, no Deferral shall
be for an amount and no Deferral Request shall be valid to the extent that it specifies an amount
less than the Minimum Deferral Amount for the applicable Plan Year.

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4.4 Maximum Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, no Deferral shall
be for an amount in excess of the Maximum Deferral Amount. If any amount specified on a Deferral
Request Form as a Deferral would exceed the Maximum Deferral Amount, such Deferral Request Form
shall be deemed to have specified the Maximum Deferral Amount.

4.5 Maximum Aggregate Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, if and to the
extent that the aggregate amounts specified on all Deferral Request Forms in a Plan Year that the
Firm determines to follow exceed the Maximum Aggregate Deferral Amount, the amounts specified on
each Participant’s Deferral Request Form shall be reduced, and each Participants’ Deferrals shall
be reduced, under a formula or method determined by the Administrative Committee in its sole
discretion, including, without limitation, a pro rata reduction to the ratio of the Maximum
Aggregate Deferral Amount to the aggregate of the amounts specified by all Participants’ on their
Deferral Request Forms so that the aggregate Deferrals of all Participants do not exceed the
Maximum Aggregate Deferral Amount; provided that no Participant’s Deferral shall be reduced to an
amount below the Minimum Deferral Amount.

4.6 Deferral Request Irrevocable

Except to the extent determined by the Administrative Committee (but in no event later than the
date on which all Deferral Request Forms must be returned to the Administrative Committee for a
Plan Year), all Deferral Requests shall be irrevocable when made, and no Participant may change or
revoke his or her Deferral Request with respect to Eligible Compensation payable for a Plan Year.

ARTICLE 5

ACCOUNTS

5.1 Accounts

The Administrative Committee shall maintain an Account for each Participant that reflects each
Participant’s Deferrals and any adjustments determined in accordance with Section 5.2, forfeitures
and any payments made under Article 7 with respect to the Account. The Administrative Committee
shall provide each Participant with a periodic statement of his or her Account adjusted in
accordance with Section 5.2.

5.2 Adjustment of Accounts

The amount of each Participant’s Deferral for a Plan Year shall be credited to the Participant’s
Account as of the applicable Deferral Date. The Participant’s Account shall be adjusted from time
to time to reflect: (i) Deferrals for subsequent Plan Years, if any; (ii) gains (or losses)
determined as if the Account were invested directly in the Notional Investment or Notional
Investments selected by the Participant (without taking into

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account any tax consequences that may have arisen were the Account so directly invested); (iii) the
amount described in Section 7.5; (iv) any payments under Article 7 in respect of a Deferral; and
(v) any administrative charge determined by the Compensation Policy Committee or Administrative
Committee in its sole discretion to be appropriate to cover part or all of the cost to the Firm of
making the Plan available to Participants or otherwise maintaining the Plan.

5.3 Notional Investments

(a) The Notional Investment or Notional Investments that shall be available under the Plan
shall be determined from time to time by the Investment Committee in its sole discretion. The
Investment Committee may, in its sole discretion, provide limitations or procedures on the
availability of any Notional Investment or Notional Investments with respect to any Participant or
class of Participants. The Investment Committee may modify, amend, eliminate or replace any or all
of the Notional Investments that may be available under the Plan to Plan Participants or any of
them, in any manner in its sole discretion at any time from time to time with or without notice to
the Participants and effective retroactively or prospectively, subject to Section 9.3 hereof.

(b) In selecting any Notional Investment or Notional Investments to be made available under
the Plan or prescribing any rules related thereto, the Investment Committee and the Administrative
Committee shall be acting solely on behalf of the Firm and not as a fiduciary or adviser with
respect to any Deferral, any Participant or any other person employed by the Firm or in respect of
any Account. Each Participant, by requesting to participate in the Plan, agrees that none of the
Investment Committee, the Administrative Committee, the Compensation Policy Committee, GS Inc., the
Firm or any other person shall have any liability whatsoever to any Participant or any other person
as a result of, arising out of or related to the selection or elimination or modification of
Notional Investments, any monitoring of any such Notional Investment or any Participant’s selection
or failure to select any Notional Investment.

(c) The Administrative Committee or the Investment Committee may adopt such rules and
administrative practices as they, in their sole discretion, shall deem necessary or appropriate in
connection with any Participant’s ability to select Notional Investments hereunder, including
restrictions on the timing or frequency of such selections; all such Notional Investment selections
shall be made in such form as may be required by the Administrative Committee from time to time.

ARTICLE 6

VESTING

6.1 Accounts Generally Vested

Without limiting Section 7.6 or Section 10.1, each Participant shall be immediately vested in, and
shall have a nonforfeitable right to the balance credited to, the

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Participant’s Account subject to the terms of the Plan, including without limitation Section 7.5
hereof.

ARTICLE 7

PAYMENTS

7.1 Commencement and Form of Payment

(a) Lump Sum. Unless a Participant makes a valid installment payment request
described in Paragraph (b) of this Section 7.1 with respect to a Deferral and such request is
approved by the Administrative Committee, the Participant shall receive a payment of the entire
portion of the Participant’s Account attributable to such Deferral in a single lump sum within 30
business days after the applicable Distribution Date.

(b) Annual Installment Payments. Unless otherwise determined by the Administrative
Committee in its sole discretion, Participants (other than those that the Administrative Committee
determines are not eligible, including, without limitation, persons who are tax residents of, or
whose employment location during any part of the relevant Plan Year is, the United Kingdom) shall
be permitted to request to receive payments in respect of any Deferral in 11 substantially equal
annual installments commencing within 30 business days after the applicable Distribution Date. Any
request to receive installment payments in respect of a Deferral pursuant to this Section shall be
subject to the limitations of Section 7.5 hereof, and in such form as may be required by the
Administrative Committee in its sole discretion and shall be valid only if it is timely received by
the Administrative Committee: (i) at the time the Participant makes the applicable Deferral
Request; or (ii) at a later time approved by the Administrative Committee in its sole discretion
that is (a) at least 5 full years prior to the Distribution Date in respect of such Deferral or (b)
such other time that the Administrative Committee approves in a manner consistent with Section 409A
of the Code. Any request to receive installment payments that is received by the Administrative
Committee later than the dates described in the immediately preceding sentence shall be null and
void and of no force or effect. The amount that shall be paid in each installment shall be the
quotient of the balance of the Account attributable to the Deferral as of the last day of the month
prior to the Distribution Date (or, with respect to each installment after the first installment,
the applicable anniversary thereof) divided by the number of installment payments remaining.

7.2 Distribution Date

In accordance with procedures established by the Administrative Committee in its sole discretion,
at the time each Participant makes a Deferral Request, the Participant shall select a Distribution
Date with respect to a Deferral that is, unless otherwise determined by the Administrative
Committee in its sole discretion, (i) any anniversary of the Deferral Date beginning with the third
anniversary and ending with the tenth anniversary or (ii) the later of the tenth anniversary of the
Deferral Date and six months after the date following the Participant’s separation from service
with the Firm. Notwithstanding the foregoing, no person who is a United Kingdom tax resident at
the time of the Deferral

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Request or whose employment location during any part of the relevant Plan Year to which the
Deferral Request relates is the United Kingdom shall be permitted to request the Distribution Date
described in (ii).

7.3 Death and Total and Permanent Disability

(a) If a Participant dies prior to the payment of the entire balance credited to his or her
Account, unless otherwise determined by the Administrative Committee, and notwithstanding any
Participant’s request pursuant to Section 7.1(b) or Section 7.2, the amount credited to his or her
Account shall be paid as soon as practicable to the representative of the Participant’s estate. No
payment shall be made to the representative of a Participant’s estate until the Administrative
Committee shall have been furnished with such evidence and other documentation as it shall deem
necessary or appropriate to establish the validity of the payment.

(b) If a Participant has a Total and Permanent Disability prior to the payment of the entire
balance credited to his or her Account, unless otherwise determined by the Administrative Committee
and notwithstanding any Participant’s request pursuant to Section 7.1(b) or Section 7.2, such
balance shall be paid as soon as practicable to the Participant or if the Participant is determined
by the Administrative Committee, in its sole discretion, to be incompetent by reason of physical or
mental disability, to another person for the benefit of the Participant, without responsibility on
the part of the Administrative Committee, the Firm or any other person to monitor the application
or use of such funds. No payment shall be made to the Participant or such other person until the
Administrative Committee shall have been furnished with such evidence and other documentation as it
shall deem necessary or appropriate to establish the validity of the payment.

7.4 Taxes and Social Security

All Federal, State, foreign, local, hypothetical or other taxes, or social security or social
insurance charges, if any, that are required to be withheld in respect of any Deferrals hereunder
or from any payments made pursuant to this Article 7 shall be withheld from amounts payable
hereunder or from any other amounts payable to a Participant by any person.

7.5 Certain Account Adjustments

Unless otherwise determined by GS Inc., the amount payable on a Distribution Date to any
Participant under the Plan shall be net of, and a Participant’s Account shall be adjusted to
reflect on such Distribution Date, any outstanding amounts (including, without limitation, travel
and entertainment or advance account balances, loans, or amounts repayable to the Firm pursuant to
tax equalization, housing, automobile or other employee programs) the Participant owes to the Firm
(including by reason of any obligations of such Participant under any Firm sponsored investment
program, including under the Firm’s “Special Investments Program”), any amounts owed to the Firm by
reason of such Participant’s misconduct with respect to such Participant’s employment

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with the Firm, including, without limitation, the Participant’s misappropriation of funds or other
property from the Firm, and any amount the Administrative Committee otherwise deems appropriate
pursuant to any tax equalization policy or agreement or otherwise applicable as of such
Distribution Date. Each Participant shall be required, as a condition to participation in the
Plan, to sign such documents, and make such representations and consents, to the extent deemed
necessary or appropriate by the Administrative Committee, to comply with this Section 7.5. For
purposes of the foregoing, in the event a Participant has validly requested payments in annual
installments pursuant to Section 7.1(b) hereof, any amounts required to be adjusted under this
Section 7.5 shall be applied against the Participant’s Account balance in respect of the Deferral
prior to the first installment to be paid (or the next installment scheduled to be paid, if later)
as prescribed by the Administrative Committee in a manner consistent with Section 409A of the Code.

7.6 Certain Delayed Payments to Covered Employees

Notwithstanding anything herein or in any Deferral Request Form to the contrary, if and to the
extent that GS Inc. determines, in its sole discretion, that GS Inc.’s or the Firm’s U.S. Federal
tax deduction in respect of a payment under the Plan may be limited as a result of Section 162(m)
of the Code or any successor section of the Code, the Administrative Committee may delay such
Payment until such time or times as GS Inc. or the Administrative Committee determines, in its sole
discretion, that neither GS Inc.’s nor the Firm’s deduction for any such payment will be limited as
a result of Section 162(m) of the Code or any successor section of the Code and as are consistent
with Section 409A of the Code.

7.7 Payment Currency

Unless otherwise determined by the Administrative Committee in its discretion, any payments under
the Plan shall be made in the same currency in which the Participant’s bonus otherwise would have
been paid, in the absence of the Plan.

ARTICLE 8

ADMINISTRATIVE COMMITTEE;

INDEMNIFICATION

8.1 Plan Administration and Interpretation

The Plan shall be administered by the Administrative Committee. The Administrative Committee shall
have complete control and authority to administer the Plan, and authority to determine the rights
and benefits and all claims, demands and actions arising out of the provisions of the Plan of any
Participant, representative of a deceased Participant’s estate, or any other person having or
claiming to have any interest under the Plan. The Administrative Committee shall have complete
discretion and power to interpret the Plan and to decide all matters under the Plan. Any
interpretation or decision by the Administrative Committee shall be final, conclusive and binding
on all Participants and any person claiming under or through any Participant. Any individual
serving on the Administrative Committee who also is a Participant shall not vote or act

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on any matter relating solely to himself or herself. When making a determination or calculation,
the Administrative Committee shall be entitled to rely on information furnished by a Participant or
other person entitled to payment hereunder, or the Firm. The Administrative Committee shall adopt
such claims procedures as it determines in its sole discretion may be necessary or appropriate for
the proper determination of the rights of any Participant under this Plan.

8.2 Powers, Duties, Procedures, Etc.

In exercising its powers and duties, the Administrative Committee may adopt such rules and
procedures, appoint such officers or agents, delegate such powers and duties and receive such
reimbursements and compensation, in each case, as it may establish or determine from time to time
consistent with the provisions of the Plan.

8.3 Indemnification of Administrative Committee and Investment Committee

No member of the Administrative Committee or Investment Committee or any employee, officer or
director of the Firm (each such person, a “Covered Person”) shall have any liability to any person
(including any Participant) for any action taken or omitted to be taken or any determination made
in good faith with respect to the Plan. Each Covered Person shall be indemnified and held harmless
by GS Inc. against and from: (a) any loss, cost, liability or expense (including attorneys’ fees)
that may be imposed upon or incurred by such Covered Person in connection with or resulting from
any action, suit or proceeding to which such Covered Person may be a party or in which such Covered
Person may be involved by reason of any action taken or omitted to be taken under the Plan and (b)
any and all amounts paid by such Covered Person, with GS Inc.’s approval, in settlement thereof, or
paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding
against such Covered Person, provided that GS Inc. shall have the right, at its own expense, to
assume and defend any such action, suit or proceeding and, once GS Inc. gives notice of its intent
to assume the defense, GS Inc. shall have sole control over such defense with counsel of GS Inc.’s
choice. The foregoing right of indemnification shall not be available to a Covered Person to the
extent that a court of competent jurisdiction in a final judgment or other final adjudication, in
either case not subject to further appeal, determines that the acts or omissions of such Covered
Person giving rise to the indemnification claim resulted from such Covered Person’s bad faith,
fraud or willful criminal act or omission. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which Covered Persons may be entitled under GS
Inc.’s Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws, as a
matter of law, or otherwise, or any other power that GS Inc. may have to indemnify such persons or
hold them harmless.

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ARTICLE 9

AMENDMENT AND TERMINATION

9.1 Amendments

Subject only to Section 9.3 hereof, GS Inc. shall have the right, in its sole discretion, to amend
or modify the Plan in any respect from time to time, including in any manner that adversely affects
the right of any Participant. Any such amendment may be effected by an action of the Board of
Directors or the Compensation Policy Committee. In addition, and without limiting the foregoing,
to the maximum extent permissible under Section 409A of the Code, the Administrative Committee
shall have the right, in its sole discretion, to accelerate any payment to any or all Participants
to any date or dates prior to the Distribution Date and to change any form of payment selected by a
Participant under Section 7.1 hereof.

9.2 Termination of Plan

This Plan is a strictly voluntary undertaking on the part of GS Inc. and shall not be deemed to
constitute a contract between GS. Inc. and any Eligible Employee (or any other person). Subject
only to Section 9.3 hereof, GS Inc. reserves the right to terminate the Plan at any time with
respect to any or all Participants, in whole or in part, by an instrument in writing that has been
executed on the Firm’s behalf by its duly authorized officer. Upon termination, with respect to
each Participant affected by any termination (an “Affected Participant”) on a
Participant-by-Participant basis the Firm shall, to the maximum extent permitted under Section 409A
of the Code either: (a) elect to continue to maintain part or all of the Affected Participant’s
Account and pay amounts hereunder as they become due as if the Plan had not terminated; or (b) pay
promptly to each Affected Participant (or such Affected Participant’s estate) part or all of the
balance of the Affected Participant’s Account (or combine, in any manner, the alternatives
described in Sections 9.2(a) and 9.2(b) hereof).

9.3 Existing Rights

No amendment or modification to, or termination of, the Plan shall be effective to the extent that
it reduces the amount credited to a Participant’s Account immediately prior to the amendment,
modification or termination, without the Participant’s prior written consent.

ARTICLE 10

MISCELLANEOUS

10.1 No Funding

The Plan constitutes a mere promise by GS Inc. to make payments in accordance with the terms of the
Plan, and Participants and beneficiaries shall have the status with respect to the amounts credited
to their Accounts from time to time only of general unsecured creditors of GS Inc. Nothing in the
Plan will be construed to give any Participant or any other person rights to any specific assets of
GS Inc., the Firm or any

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other person. In all events, it is the intent of GS Inc. that the Plan be treated in a manner
consistent with the applicable provisions of Section 409A of the Code and be treated as unfunded
for U.S. Federal tax purposes and for purposes of ERISA, and the Plan shall be interpreted
accordingly.

10.2 Non-Assignability

None of the benefits, payments, proceeds or claims of any Participant or any other person shall be
subject to any claim of any creditor of any Participant or any other person and, in particular,
such benefits, payments, proceeds or claims shall not be subject to attachment or garnishment or
other legal process by any creditor of such Participant or other person, nor shall any Participant
or any other person have any right to alienate, participate, hedge, commute, pledge, encumber or
assign any of the benefits, payments, proceeds or claims that he or she may expect to receive,
contingently or otherwise, under the Plan and any attempt to so alienate, participate, hedge,
commute, pledge, encumber or assign any such benefit, payment, proceed or claim shall be null and
void and of no force or effect.

10.3 Limitation of Participants’ Rights

Nothing contained in the Plan shall confer upon any person a right to continue to be employed by
the Firm or shall affect any right the Firm may have to terminate or alter the terms and conditions
of a Participant’s employment.

10.4 Participants Bound

Any action with respect to the Plan taken by the Administrative Committee, the Investment
Committee, the Compensation Policy Committee, the Board of Directors, the Firm or any action
authorized by or taken at the direction of any of them, shall be final, binding and conclusive upon
all Participants (and any other persons).

10.5 Benefits Conditioned on Release

Any payment to any Participant made in accordance with the provisions of the Plan shall, to the
extent thereof, be in full satisfaction of all claims against the Firm, the Plan, the
Administrative Committee and the Investment Committee. The Administrative Committee may require a
Participant, as an express condition precedent to any payment hereunder, to execute a release to
such effect. If any Participant or other person entitled to payment hereunder is determined by the
Administrative Committee to be incompetent by reason of physical or mental disability to give a
valid release, the Administrative Committee may cause the payment or payments becoming due to such
person to be made to another person for his or her benefit without responsibility on the part of
the Administrative Committee, the Firm or any other person to follow the application or use of such
funds.

13

 

10.6 Arbitration; Choice of Forum

(a) Any dispute, controversy or claim between the Firm and a Participant arising out of or
relating to or concerning the Plan shall be finally settled by arbitration in New York City before,
and in accordance with the rules then obtaining of, the New York Stock Exchange, Inc. (the “NYSE”)
or, if the NYSE declines to arbitrate the matter (or if the matter otherwise is not arbitrable by
it), the American Arbitration Association (the “AAA”) in accordance with the commercial arbitration
rules of the AAA. Prior to arbitration, all claims maintained by a Participant or any other person
must first be submitted to the Administrative Committee in accordance with claims procedures
determined by the Administrative Committee. This Paragraph is subject to the provisions of
Paragraphs (b) and (c) below.

(b) THE FIRM AND EACH PARTICIPANT SHALL IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED IN THE CITY OF NEW YORK OVER ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO OR CONCERNING THE PLAN THAT IS NOT OTHERWISE ARBITRATED OR RESOLVED
ACCORDING TO PARAGRAPH 10.6(a) HEREOF. This includes any suit, action or proceeding to compel
arbitration or to enforce an arbitration award. The Firm and each Participant, by requesting to
participate in the Plan, acknowledge that the forum designated by this Paragraph (b) has a
reasonable relation to the Plan and to the Participant’s relationship with the Firm.
Notwithstanding the foregoing, nothing herein shall preclude the Firm from bringing any action or
proceeding in any other court for the purpose of enforcing the provisions of this Section 10.6 or
otherwise.

(c) This provision as to forum is independent of the law that may be applied in the suit,
action or proceeding, and each Participant, by requesting to participate in the Plan, and the Firm
agrees to such forum even if the forum may under applicable law choose to apply non-forum law.
Each Participant, by requesting to participate in the Plan and the Firm hereby waive, to the
fullest extent permitted by applicable law, any objection which the Participant or the Firm now or
hereafter may have to personal jurisdiction or to the laying of venue of any such suit, action or
proceeding in any court referred to in Paragraph (b) of this Section 10.6. Each Participant, by
requesting to participate in the Plan, and the Firm undertake not to commence any suit, action or
proceeding arising out of or relating to or concerning the Plan in any forum other than a forum
described in this Section 10.6. Each Participant, by requesting to participate in the Plan, and
the Firm agree that, to the fullest extent permitted by applicable law, a final and non-appealable
judgment in any such suit, action or proceeding in any such court shall be conclusive and binding
upon the Participant and the Firm.

(d) Each Participant, by requesting to participate in the Plan, irrevocably appoints the
General Counsel of GS Inc. as the Participant’s agent for service of process in connection with any
action or proceeding arising out of or relating to or concerning the Plan that is not arbitrated
pursuant to the provisions of this Section 10.6, who shall promptly advise the Participant of any
such service of process.

14

 

(e) Each Participant, by requesting to participate in the Plan, agrees to keep confidential
the existence of, and any information concerning, a dispute, controversy or claim described in this
Section 10.6, except that a Participant may disclose information concerning such dispute,
controversy or claim to the arbitrator or court that is considering such dispute, controversy or
claim or to his or her legal counsel (provided that such counsel agrees not to disclose any such
information other than as necessary to the prosecution or defense of the dispute, controversy or
claim).

10.7 Governing Law

The Plan shall be construed, administered and governed in all respects under and by the laws of the
State of New York, without reference to the principles of conflicts of law (except if and to the
extent preempted by applicable Federal law). It is the intent of GS Inc. that this Plan be
considered and interpreted in all respects as part of a bonus plan within the meaning of U. S.
Department of Labor
Regulation Section 2510.3-2(c) and not in any respect as an employee pension
plan for purposes of ERISA. If and to the extent that any portion of this Plan shall be determined
to be an employee pension benefit plan subject to ERISA, then such portion shall be considered a
separate plan covering only those Participants as to whom this Plan is determined to be a pension
plan. Such pension plan shall in all respects be considered and interpreted as a plan which is
unfunded and maintained primarily for the purpose of providing deferred compensation for a select
group of management or highly compensated employees and exempt from coverage of Parts 1, 2, 3 and 4
of Subtitle B of Title I of ERISA to the maximum extent permissible under the provisions thereof.
Further, it is the intent of GS Inc. that this Plan be considered and interpreted in all respects
as a nonqualified deferred compensation plan satisfying the requirements of Section 409A of the
Code and deferring the recognition of income by Participants in respect of Deferrals until amounts
are actually paid to them pursuant to Article 7.

10.8 Certain Consents

As a condition of participating in the Plan, each Eligible Employee wishing to make a Deferral
Request, and each Participant, shall be required to sign such documents, make such representations
and sign such consents, including, without limitation, signing any consent or taking any other
action necessary for the Firm to insure the life of the Participant and name itself as beneficiary
to the extent deemed necessary or appropriate of such insurance.

Without limiting the foregoing, by submitting a Deferral Request Form, a Participant will have
irrevocably agreed to consent to (i) the Firm’s supplying to any third party recordkeeper such
personal information as the Administrative Committee deems advisable to administer the Plan, (ii)
the Firm’s deducting amounts from the Participant’s wages to reimburse the Firm for any advances
made on the Participant’s behalf to satisfy any withholding and other tax obligations, (iii) the
Firm’s deducting or withholding from any payment or distribution to the Participant, whether or not
pursuant to the Plan, the amount of any taxes (including, without limitation, FICA, National
Insurance Contributions, if applicable, or social insurance taxes) the Administrative Committee

15

 

determines apply in connection with any Deferral or distribution under the Plan and (iv)
withholding from any distribution under the Plan any amount the Administrative Committee determines
is payable by the Participant to the Firm.

10.9 Currency Conversions

The Administrative Committee, in its discretion, shall have the authority to prescribe such rules
and procedures as it may deem appropriate for purposes of converting any currency into another
currency for purposes of the Plan including, without limitation, for purposes of determining (i)
the Minimum Deferral Amount, (ii) the Maximum Deferral Amount, (iii) the Maximum Aggregate Deferral
Amount, (iv) the amount of any Eligible Employee’s Deferral, (v) the amount of any investment gains
or losses to be allocated to a Participant’s Account, (vi) the amount of any distribution, (vii)
the amount of any Participant’s Eligible Compensation and (viii) the amount of any Participant’s
Minimum Eligible Compensation. The determination of the exchange rate by the Administrative
Committee shall be conclusive.

10.10 Non-Uniform Determinations

None of the Administrative Committee’s determinations under the Plan need to be uniform and any
such determinations may be made by it selectively among persons who make Deferral Requests under
the Plan (whether or not such persons are similarly situated). Without limiting the generality of
the foregoing, the Administrative Committee shall be entitled, among other things, to make
non-uniform and selective determinations with regard to Deferrals, currency conversions and
availability of Notional Investments, and to enter into non-uniform and selective Deferral
Requests, as to (a) the persons permitted to make Deferrals, (b) the terms and provisions of any
Deferral, (c) whether a Participant’s employment with the Firm has been terminated for purposes of
the Plan and (d) any adjustments to be made with respect to any Deferral as described herein or
otherwise.

10.11 Severability; Entire Agreement

If any of the provisions of this Plan is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such provision shall be deemed modified to the extent, but only to
the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall
not be affected thereby. Each Participant, by requesting to participate in the Plan, acknowledges
that the Plan contains the entire agreement of the parties with respect to the subject matter
thereof and supersedes all prior agreements, promises, covenants, arrangements, communications,
representations and warranties between them, whether written or oral with respect to the subject
matter thereof.

10.12 No Third Party Beneficiaries

The Plan shall not confer on any person other than the Firm and the Participants any rights or
remedies thereunder; provided that the exculpation and indemnification provisions of Section 8.3
shall inure to the benefit of a Covered Person’s estate, beneficiaries and legatees.

16

 

10.13 Headings and Subheadings

Headings and subheadings in this Plan are inserted for convenience only and are not to be
considered in the construction of the provisions hereof.

17EX-10.34

 

EXHIBIT 10.34

THE GOLDMAN SACHS GROUP, INC.

NON-QUALIFIED DEFERRED COMPENSATION PLAN

FOR

U.K. PARTICIPATING MANAGING DIRECTORS

ARTICLE 1

INTRODUCTION

1.1 Purpose of Plan

The Goldman Sachs Group, Inc. Non-Qualified Deferred Compensation Plan for U.K. Participating
Managing Directors is intended to promote the interests of GS Inc. and its shareholders by
encouraging certain Eligible Employees to remain in the employ of the Firm by providing them with a
means by which they may request to defer receipt of a portion of their Eligible Compensation.

ARTICLE 2

DEFINITIONS

Wherever used herein, the following terms have the meanings set forth below, unless a different
meaning clearly is required by the context:

 

 

2.1 Account means, for each Participant, a notional account maintained on the books and records of
GS Inc. (by GS Inc. or such third party record keeper or record keepers as GS Inc. may from time to
time appoint) that is established for his or her benefit and as to which amounts are credited under
Section 5.1.

2.2 Administrative Committee means the person or persons designated by the Compensation Policy
Committee or the Board of Directors with the authority to perform day-to-day administrative
functions for the Plan. If no such person is so serving at any time, the Compensation Policy
Committee shall be the Administrative Committee.

2.3 Board of Directors means the Board of Directors of GS Inc.

2.4 Compensation Policy Committee means the GS Inc. Compensation Policy Committee, as it may be
constituted from time to time.

2.5 Code means the Internal Revenue Code of 1986. Reference to any section or subsection of the
Code includes reference to any comparable or succeeding provisions of any legislation that amends,
supplements or replaces such section or subsection.

2.6 Deferral means the portion of a Participant’s Eligible Compensation that is deferred in
accordance with Section 4.1 hereof.

2.7 Deferral Date means, with respect to each Plan Year, the earliest date GS Inc. determines that
Eligible Compensation subject to a Deferral Request would have been paid to the Eligible Employee
in the absence of the Plan, or such other date or dates as may be selected by the Administrative
Committee in its sole discretion prior to the date Deferral Requests are required to be returned to
the Administrative Committee for a Plan Year.

2.8 Deferral Request means any request by a Participant to make a Deferral hereunder by submitting
a Deferral Request Form in accordance with Section 4.1 hereof.

2.9 Deferral Request Form means the form (which may be in electronic form) specified by the
Administrative Committee from time to time pursuant to which an Eligible Employee can make a
Deferral Request.

2.10 Distribution Date means, with respect to each Deferral made by a Participant, the date on
which an amount shall become payable to a Participant in accordance with Article 7 hereof.

2.11 Effective Date means November 27, 2004, the date as of which the Plan first became effective.

2.12 Eligible Compensation means, for each Eligible Employee, with respect to each Plan Year the
amount the Firm determines in its sole discretion otherwise would have been payable to the Eligible
Employee as a gross end-of-year bonus (excluding any amounts payable to the Eligible Employee that
are directly attributable to the

2

 

performance of services prior to the beginning of such Plan Year), and before giving effect to any
Deferral, but after giving effect to: (i) any pension or retirement contribution or the cost of
contribution by the Firm for any public or private employee benefit plan (including, without
limitation, in the United States, any contribution to the Money Purchase Plan or any “voluntary
contribution election” under The Goldman Sachs Employees’ Profit Sharing Retirement Income Plan,”
(as defined in that plan) if applicable to you); (ii) any amount the Firm decides to contribute as
part of compensation to the Goldman Sachs UK Retirement Plan or GSI International Pension Plan or
any other plan maintained outside the United States primarily for non-U.S. citizens or residents
that the Administrative Committee determines is similar thereto; (iii) the value of any award
recommendation in respect of any plan or arrangement the Firm determines is similar to The Goldman
Sachs UK Conditional Share Reward Plan, including, without limitation, any such plan or arrangement
involving the establishment and funding of an “employee benefit trust” in the United Kingdom; and
(iv) any request to participate in the Firm’s PMD Discount Stock Program on a pre-tax (but not
after-tax) basis. Unless otherwise permitted by the Administrative Committee, no year-end award
granted under The Goldman Sachs Amended and Restated Stock Incentive Plan, as in effect from time
to time, shall constitute Eligible Compensation. Notwithstanding the foregoing, the Administrative
Committee, in its discretion, with respect to any Eligible Employee or Eligible Employees (on a
uniform or non-uniform basis) shall have the authority to (a) designate any jurisdiction or
jurisdictions from which amounts earned by any Eligible Employee will be excluded from Eligible
Compensation and (b) include or exclude, as the case may be, any amounts that otherwise would be
excluded or included, as the case may be, in any Eligible Employee’s Eligible Compensation.

2.13 Eligible Employee means, unless otherwise provided by the Administrative Committee, in a Plan
Year, any UK Employee (i) who is a participant in The Goldman Sachs Partner Compensation Plan
(“PCP”) or The Goldman Sachs Restricted Partner Compensation Plan (“RPCP”), (ii) who earned
Minimum Eligible Compensation for either or both of the immediately preceding Plan Year or the
second preceding Plan Year, (iii) who is designated by the Administrative Committee as eligible to
participate in the Plan or is a member of a class of employees who is designated by the
Administrative Committee as eligible to participate in the Plan for the Plan Year and (iv) who is
not eligible to make a deferral under The Goldman Sachs Group, Inc., Non-Qualified Deferred
Compensation Plan for U.S. Participating Managing Directors. The Administrative Committee may, in
its sole discretion, add or exclude any individual or any member of a class of individuals from
being considered an Eligible Employee. An individual shall first be considered an Eligible
Employee on the date he or she first receives written notification from the Administrative
Committee that he or she is eligible to participate in the Plan. Unless otherwise provided by the
Administrative Committee (including, by reason of legal, tax or other regulatory restrictions or
impediments to the individual or to the Firm arising out of a country other than the United States
or United Kingdom), an individual that is an Eligible Employee for any Plan Year shall, for any
subsequent Plan Year in which he or she participates in the PCP or RPCP, be eligible to participate
in the Plan (or, an “Eligible Employee” under The Goldman Sachs Group, Inc. Non-Qualified Deferred
Compensation Plan for U.S. Participating Managing

3

 

Directors, if such person becomes in such year a resident for tax purposes in the United States).

2.14 ERISA means the Employee Retirement Income Security Act of 1974, as amended from time to time.
Reference to any section or subsection of ERISA includes reference to any comparable or succeeding
provisions of any legislation that amends, supplements or replaces such section or subsection.

2.15 Firm means GS Inc. and its subsidiaries and affiliates.

2.16 GS Inc. means The Goldman Sachs Group, Inc., and any successor thereto.

2.17 Investment Committee means a committee of two or more individuals selected by the
Administrative Committee, which shall have the authority to select the Notional Investments that
are made available from time to time under the Plan.

2.18 Maximum Aggregate Deferral Amount means, with respect to each Plan Year, $100 million or such
other amount as may be determined by GS Inc. from time to time, which shall be the maximum total of
all Deferrals for all Participants permitted under the Plan for such Plan Year. GS Inc. may, in
its discretion, (i) aggregate the Plan with such other deferred compensation plan or plans as it
may determine for purposes of applying the Maximum Aggregate Deferral Amount and (ii) allocate the
Maximum Aggregate Deferral Amount among the Plan and any deferred compensation plans that are so
aggregated with the Plan in any manner deemed appropriate by it.

2.19 Maximum Deferral Amount means, unless otherwise determined by GS Inc., with respect to each
Participant for each Plan Year, the lesser of: (i) 50% of the Participant’s Eligible Compensation
and (ii) £700,000.

2.20 Minimum Deferral Amount means, with respect to each Participant for each Plan Year, £52,500 or
such other amount as may be determined by the Administrative Committee prior to the date Deferral
Request Forms are required to be returned to the Administrative Committee for a Plan Year, which
shall be the minimum amount that a Participant may request as a Deferral for a Plan Year.

2.21 Minimum Eligible Compensation means total compensation of at least USD $200,000 or such other
amount as may be determined by the Administrative Committee.

2.22 Money Purchase Plan means The Goldman Sachs Money Purchase Pension Plan, as amended from time
to time, or any successor thereto.

2.23 Notional Investment means a hypothetical investment made available under the Plan by the
Investment Committee from time to time in which a Participant’s Account may be deemed to be
invested in whole or in part in accordance with Sections 5.2 and 5.3 hereof in order to measure the
value of the Account.

4

 

2.24 Participant means any Eligible Employee who participates in the Plan in accordance with
Article 3.

2.25 Plan means The Goldman Sachs Group, Inc. Non-Qualified Deferred Compensation Plan for U.K.
Participating Managing Directors.

2.26 Plan Year means the 12-month period that coincides with GS Inc.’s fiscal year.

2.27 Total and Permanent Disability means, with respect to any Participant, if such Participant is
unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, or is, by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income replacement benefits for not
less than 3 months under any accident or health plan covering employees of the Firm.

2.28 U.K. Employee means a person:

(a) who has or is expected to perform duties in the United Kingdom for a substantially
continuous period of at least three months and all or substantially all of his remuneration and
other costs of his employment are paid by or charged to a business, directly or indirectly, which
is subject to U.K. corporation tax; or

(b) all or substantially all of whose duties under his employment contract during a Plan Year
are to be performed in the United Kingdom; or

(c) is designated by the Administrative Committee as a U.K. Employee.

A person will not be a U.K. Employee for the relevant Plan Year if he is, at any time during that
Plan Year, resident for tax purposes in the United States.

ARTICLE 3

PARTICIPATION

3.1 Commencement of Participation

Any Eligible Employee who requests to defer part of his or her Eligible Compensation in accordance
with Article 4 shall, if and to the extent the Firm, in its discretion, agrees to follow the
request, become a Participant in the Plan as of the first Deferral Date as of which a Deferral is
credited to the Eligible Employee’s Account in accordance with Section 4.2.

5

 

3.2 Continued Participation

A Participant in the Plan shall continue to be a Participant so long as any amount remains credited
to his or her Account.

ARTICLE 4

DEFERRALS

4.1 Deferral Request Form

Subject to the provisions of Article 4 hereof, for each Plan Year for which the Plan is in effect,
an Eligible Employee may, by properly completing a Deferral Request Form and filing it with the
Administrative Committee not later than the date specified by the Administrative Committee and,
before the amount of the Eligible Compensation to which the Deferral relates has been determined,
request that a Deferral be made on his or her behalf, on such terms as the Administrative Committee
may permit in its sole discretion. The Firm may, in its sole discretion, determine whether or not
to follow any Deferral Request with respect to any Eligible Employee.

4.2 Mechanics of Deferral

Subject to the provisions of this Article 4, if and to the extent the Firm determines to follow a
Deferral Request, an Eligible Employee’s Eligible Compensation shall be reduced in accordance with
the Participant’s Deferral Request, and the amount of the resulting Deferral shall be credited to
the Participant’s Account as of the Deferral Date.

4.3 Minimum Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, no Deferral shall
be for an amount and no Deferral Request shall be valid to the extent that it specifies an amount
less than the Minimum Deferral Amount for the applicable Plan Year.

4.4 Maximum Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, no Deferral shall
be for an amount in excess of the Maximum Deferral Amount. If any amount specified on a Deferral
Request Form as a Deferral would exceed the Maximum Deferral Amount, such Deferral Request Form
shall be deemed to have specified the Maximum Deferral Amount.

4.5 Maximum Aggregate Deferral Amount

Notwithstanding anything herein or in any Deferral Request Form to the contrary, if and to the
extent that the aggregate amounts specified on all Deferral Request Forms in a Plan Year that the
Firm determines to follow exceed the Maximum Aggregate Deferral Amount, the amounts specified on
each Participant’s Deferral Request Form shall be reduced, and each Participants’ Deferrals shall
be reduced, under a formula or method

6

 

determined by the Administrative Committee in its sole discretion, including, without limitation, a
pro rata reduction to the ratio of the Maximum Aggregate Deferral Amount to the aggregate of the
amounts specified by all Participants’ on their Deferral Request Forms so that the aggregate
Deferrals of all Participants do not exceed the Maximum Aggregate Deferral Amount; provided that no
Participant’s Deferral shall be reduced to an amount below the Minimum Deferral Amount.

4.6 Deferral Request Irrevocable

Except to the extent determined by the Administrative Committee (but in no event later than the
date on which all Deferral Request Forms must be returned to the Administrative Committee for a
Plan Year), all Deferral Requests shall be irrevocable when made, and no Participant may change or
revoke his or her Deferral Request with respect to Eligible Compensation payable for a Plan Year.

ARTICLE 5

ACCOUNTS

5.1 Accounts

The Administrative Committee shall maintain an Account for each Participant that reflects each
Participant’s Deferrals and any adjustments determined in accordance with Section 5.2, forfeitures
and any payments made under Article 7 with respect to the Account. The Administrative Committee
shall provide each Participant with a periodic statement of his or her Account adjusted in
accordance with Section 5.2.

5.2 Adjustment of Accounts

The amount of each Participant’s Deferral for a Plan Year shall be credited to the Participant’s
Account as of the applicable Deferral Date. The Participant’s Account shall be adjusted from time
to time to reflect: (i) Deferrals for subsequent Plan Years, if any; (ii) gains (or losses)
determined as if the Account were invested directly in the Notional Investment or Notional
Investments selected by the Participant (without taking into account any tax consequences that may
have arisen were the Account so directly invested); (iii) the amount described in Section 7.5; (iv)
any payments under Article 7 in respect of a Deferral; and (v) any administrative charge determined
by the Compensation Policy Committee or Administrative Committee in its sole discretion to be
appropriate to cover part or all of the cost to the Firm of making the Plan available to
Participants or otherwise maintaining the Plan.

5.3 Notional Investments

(a) The Notional Investment or Notional Investments that shall be available under the Plan
shall be determined from time to time by the Investment Committee in its sole discretion. The
Investment Committee may, in its sole discretion, provide limitations or procedures on the
availability of any Notional Investment or Notional Investments with respect to any Participant or
class of Participants. The Investment Committee may modify, amend, eliminate or replace any or all
of the Notional

7

 

Investments that may be available under the Plan to Plan Participants or any of them, in any
manner in its sole discretion at any time from time to time with or without notice to the
Participants and effective retroactively or prospectively, subject to Section 9.3 hereof.

(b) In selecting any Notional Investment or Notional Investments to be made available under
the Plan or prescribing any rules related thereto, the Investment Committee and the Administrative
Committee shall be acting solely on behalf of the Firm and not as a fiduciary or adviser with
respect to any Deferral, any Participant or any other person employed by the Firm or in respect of
any Account. Each Participant, by requesting to participate in the Plan, agrees that none of the
Investment Committee, the Administrative Committee, the Compensation Policy Committee, GS Inc., the
Firm or any other person shall have any liability whatsoever to any Participant or any other person
as a result of, arising out of or related to the selection or elimination or modification of
Notional Investments, any monitoring of any such Notional Investment or any Participant’s selection
or failure to select any Notional Investment.

(c) The Administrative Committee or the Investment Committee may adopt such rules and
administrative practices as they, in their sole discretion, shall deem necessary or appropriate in
connection with any Participant’s ability to select Notional Investments hereunder, including
restrictions on the timing or frequency of such selections; all such Notional Investment selections
shall be made in such form as may be required by the Administrative Committee from time to time.

ARTICLE 6

VESTING

6.1 Accounts Generally Vested

Without limiting Section 7.6 or Section 10.1, each Participant shall be immediately vested in, and
shall have a nonforfeitable right to the balance credited to, the Participant’s Account subject to
the terms of the Plan, including without limitation Section 7.5 hereof.

ARTICLE 7

PAYMENTS

7.1 Commencement and Form of Payment

The Participant shall receive a payment of the entire portion of the Participant’s Account
attributable to a Deferral in a single lump sum within 30 business days after the applicable
Distribution Date.

7.2 Distribution Date

In accordance with procedures established by the Administrative Committee in its sole discretion,
at the time each Participant makes a Deferral Request, the Participant shall select a Distribution
Date with respect to a Deferral. Unless otherwise determined by

8

 

the Administrative Committee in its sole discretion, a Participant shall only be permitted to
request as a Distribution Date with respect to a Deferral an anniversary of the Deferral Date
beginning with the third anniversary and ending with the tenth anniversary.

7.3 Death and Total and Permanent Disability

(a) If a Participant dies prior to the payment of the entire balance credited to his or her
Account, unless otherwise determined by the Administrative Committee, and notwithstanding any
Participant’s request pursuant to Section 7.2, the amount credited to his or her Account shall be
paid as soon as practicable to the representative of the Participant’s estate. No payment shall be
made to the representative of a Participant’s estate until the Administrative Committee shall have
been furnished with such evidence and other documentation as it shall deem necessary or appropriate
to establish the validity of the payment.

(b) If a Participant has a Total and Permanent Disability prior to the payment of the entire
balance credited to his or her Account, unless otherwise determined by the Administrative Committee
and notwithstanding any Participant’s request pursuant to Section 7.2, such balance shall be paid
as soon as practicable to the Participant or if the Participant is determined by the Administrative
Committee, in its sole discretion, to be incompetent by reason of physical or mental disability, to
another person for the benefit of the Participant, without responsibility on the part of the
Administrative Committee, the Firm or any other person to monitor the application or use of such
funds. No payment shall be made to the Participant or such other person until the Administrative
Committee shall have been furnished with such evidence and other documentation as it shall deem
necessary or appropriate to establish the validity of the payment.

7.4 Taxes and Social Security

All Federal, State, foreign, local, hypothetical or other taxes, or social security or social
insurance charges, if any, that are required to be withheld in respect of any Deferrals hereunder
or from any payments made pursuant to this Article 7 shall be withheld from amounts payable
hereunder or from any other amounts payable to a Participant by any person.

7.5 Certain Account Adjustments

Unless otherwise determined by GS Inc., the amount payable on a Distribution Date to any
Participant under the Plan shall be net of, and a Participant’s Account shall be adjusted to
reflect on such Distribution Date, any outstanding amounts (including, without limitation, travel
and entertainment or advance account balances, loans, or amounts repayable to the Firm pursuant to
tax equalization, housing, automobile or other employee programs) the Participant owes to the Firm
(including by reason of any obligations of such Participant under any Firm sponsored investment
program, including under the Firm’s “Special Investments Program”), any amounts owed to the Firm by
reason of such Participant’s misconduct with respect to such Participant’s employment

9

 

with the Firm, including, without limitation, the Participant’s misappropriation of funds or other
property from the Firm, and any amount the Administrative Committee otherwise deems appropriate
pursuant to any tax equalization policy or agreement or otherwise applicable as of such
Distribution Date. Each Participant shall be required, as a condition to participation in the
Plan, to sign such documents, and make such representations and consents, to the extent deemed
necessary or appropriate by the Administrative Committee, to comply with this Section 7.5.

7.6 Certain Delayed Payments to Covered Employees

Notwithstanding anything herein or in any Deferral Request Form to the contrary, if and to the
extent that GS Inc. determines, in its sole discretion, that GS Inc.’s or the Firm’s U.S. Federal
tax deduction in respect of a payment under the Plan may be limited as a result of Section 162(m)
of the Code or any successor section of the Code, the Administrative Committee may delay such
Payment until such time or times as GS Inc. or the Administrative Committee determines, in its sole
discretion, that neither GS Inc.’s nor the Firm’s deduction for any such payment will be limited as
a result of Section 162(m) of the Code or any successor section of the Code and as are consistent
with Section 409A of the Code.

7.7 Payment Currency

Unless otherwise determined by the Administrative Committee in its discretion, any payments under
the Plan shall be made in the same currency in which the Participant’s bonus or commissions
otherwise would have been paid, in the absence of the Plan.

ARTICLE 8

ADMINISTRATIVE COMMITTEE;

INDEMNIFICATION

8.1 Plan Administration and Interpretation

The Plan shall be administered by the Administrative Committee. The Administrative Committee shall
have complete control and authority to administer the Plan, and authority to determine the rights
and benefits and all claims, demands and actions arising out of the provisions of the Plan of any
Participant, representative of a deceased Participant’s estate, or any other person having or
claiming to have any interest under the Plan. The Administrative Committee shall have complete
discretion and power to interpret the Plan and to decide all matters under the Plan. Any
interpretation or decision by the Administrative Committee shall be final, conclusive and binding
on all Participants and any person claiming under or through any Participant. Any individual
serving on the Administrative Committee who also is a Participant shall not vote or act on any
matter relating solely to himself or herself. When making a determination or calculation, the
Administrative Committee shall be entitled to rely on information furnished by a Participant or
other person entitled to payment hereunder, or the Firm. The Administrative Committee shall adopt
such claims procedures as it determines in its

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sole discretion may be necessary or appropriate for the proper determination of the rights of any
Participant under this Plan.

8.2 Powers, Duties, Procedures, Etc.

In exercising its powers and duties, the Administrative Committee may adopt such rules and
procedures, appoint such officers or agents, delegate such powers and duties and receive such
reimbursements and compensation, in each case, as it may establish or determine from time to time
consistent with the provisions of the Plan.

8.3 Indemnification of Administrative Committee and Investment Committee

No member of the Administrative Committee or Investment Committee or any employee, officer or
director of the Firm (each such person, a “Covered Person”) shall have any liability to any person
(including any Participant) for any action taken or omitted to be taken or any determination made
in good faith with respect to the Plan. Each Covered Person shall be indemnified and held harmless
by GS Inc. against and from (a) any loss, cost, liability or expense (including attorneys’ fees)
that may be imposed upon or incurred by such Covered Person in connection with or resulting from
any action, suit or proceeding to which such Covered Person may be a party or in which such Covered
Person may be involved by reason of any action taken or omitted to be taken under the Plan and (b)
any and all amounts paid by such Covered Person, with GS Inc.’s approval, in settlement thereof, or
paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding
against such Covered Person, provided that GS Inc. shall have the right, at its own expense, to
assume and defend any such action, suit or proceeding and, once GS Inc. gives notice of its intent
to assume the defense, GS Inc. shall have sole control over such defense with counsel of GS Inc.’s
choice. The foregoing right of indemnification shall not be available to a Covered Person to the
extent that a court of competent jurisdiction in a final judgment or other final adjudication, in
either case not subject to further appeal, determines that the acts or omissions of such Covered
Person giving rise to the indemnification claim resulted from such Covered Person’s bad faith,
fraud or willful criminal act or omission. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which Covered Persons may be entitled under GS
Inc.’s Amended and Restated Certificate of Incorporation or Amended and Restated Bylaws, as a
matter of law, or otherwise, or any other power that GS Inc. may have to indemnify such persons or
hold them harmless.

ARTICLE 9

AMENDMENT AND TERMINATION

9.1 Amendments

Subject only to Section 9.3 hereof, GS Inc. shall have the right, in its sole discretion, to amend
or modify the Plan in any respect from time to time, including in any manner that adversely affects
the right of any Participant. Any such amendment may be effected by an action of the Board of
Directors or the Compensation Policy Committee. In addition

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to, and without limiting the foregoing, the Administrative Committee shall have the right, in its
sole discretion, to accelerate any payment to any or all Participants to any date or dates prior to
the Distribution Date.

9.2 Termination of Plan

This Plan is a strictly voluntary undertaking on the part of GS Inc. and shall not be deemed to
constitute a contract between GS. Inc. and any Eligible Employee (or any other person). Subject
only to Section 9.3 hereof, GS Inc. reserves the right to terminate the Plan at any time with
respect to any or all Participants, in whole or in part, by an instrument in writing that has been
executed on the Firm’s behalf by its duly authorized officer. Upon termination, with respect to
each Participant affected by any termination (an “Affected Participant”) on a
Participant-by-Participant basis the Firm shall either: (a) elect to continue to maintain part or
all of the Affected Participant’s Account and pay amounts hereunder as they become due as if the
Plan had not terminated; or (b) pay promptly to each Affected Participant (or such Affected
Participant’s estate) part or all of the balance of the Affected Participant’s Account (or combine,
in any manner, the alternatives described in Sections 9.2(a) and 9.2(b) hereof).

9.3 Existing Rights

No amendment or modification to, or termination of, the Plan shall be effective to the extent that
it reduces the amount credited to a Participant’s Account immediately prior to the amendment,
modification or termination, without the Participant’s prior written consent.

ARTICLE 10

MISCELLANEOUS

10.1 No Funding

The Plan constitutes a mere promise by GS Inc. to make payments in accordance with the terms of the
Plan, and Participants and beneficiaries shall have the status with respect to the amounts credited
to their Accounts from time to time only of general unsecured creditors of GS Inc. Nothing in the
Plan will be construed to give any Participant or any other person rights to any specific assets of
GS Inc., the Firm or any other person. In all events, it is the intent of GS Inc. that the Plan be
treated in a manner consistent with the applicable provisions of Section 409A of the Code and be
treated as unfunded for U.S. Federal tax purposes and for purposes of ERISA, and the Plan shall be
interpreted accordingly.

10.2 Non-Assignability

None of the benefits, payments, proceeds or claims of any Participant or any other person shall be
subject to any claim of any creditor of any Participant or any other person and, in particular,
such benefits, payments, proceeds or claims shall not be subject to attachment or garnishment or
other legal process by any creditor of such

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Participant or other person, nor shall any Participant or any other person have any right to
alienate, participate, hedge, commute, pledge, encumber or assign any of the benefits, payments,
proceeds or claims that he or she may expect to receive, contingently or otherwise, under the Plan
and any attempt to so alienate, participate, hedge, commute, pledge, encumber or assign any such
benefit, payment, proceed or claim shall be null and void and of no force or effect.

10.3 Limitation of Participants’ Rights

Nothing contained in the Plan shall confer upon any person a right to continue to be employed by
the Firm or shall affect any right the Firm may have to terminate or alter the terms and conditions
of a Participant’s employment.

10.4 Participants Bound

Any action with respect to the Plan taken by the Administrative Committee, the Investment
Committee, the Compensation Policy Committee, the Board of Directors, the Firm or any action
authorized by or taken at the direction of any of them, shall be final, binding and conclusive upon
all Participants (and any other persons).

10.5 Benefits Conditioned on Release

Any payment to any Participant made in accordance with the provisions of the Plan shall, to the
extent thereof, be in full satisfaction of all claims against the Firm, the Plan, the
Administrative Committee and the Investment Committee. The Administrative Committee may require a
Participant, as an express condition precedent to any payment hereunder, to execute a release to
such effect. If any Participant or other person entitled to payment hereunder is determined by the
Administrative Committee to be incompetent by reason of physical or mental disability to give a
valid release, the Administrative Committee may cause the payment or payments becoming due to such
person to be made to another person for his or her benefit without responsibility on the part of
the Administrative Committee, the Firm or any other person to follow the application or use of such
funds.

10.6 Arbitration; Choice of Forum

(a) Any dispute, controversy or claim between the Firm and a Participant arising out of or
relating to or concerning the Plan shall be finally settled by arbitration in New York City before,
and in accordance with the rules then obtaining of, the New York Stock Exchange, Inc. (the “NYSE”)
or, if the NYSE declines to arbitrate the matter (or if the matter otherwise is not arbitrable by
it), the American Arbitration Association (the “AAA”) in accordance with the commercial arbitration
rules of the AAA. Prior to arbitration, all claims maintained by a Participant or any other person
must first be submitted to the Administrative Committee in accordance with claims procedures
determined by the Administrative Committee. This Paragraph is subject to the provisions of
Paragraphs (b) and (c) below.

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(b) THE FIRM AND EACH PARTICIPANT SHALL IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED IN THE CITY OF NEW YORK OVER ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO OR CONCERNING THE PLAN THAT IS NOT OTHERWISE ARBITRATED OR RESOLVED
ACCORDING TO PARAGRAPH 10.6(a) HEREOF. This includes any suit, action or proceeding to compel
arbitration or to enforce an arbitration award. The Firm and each Participant, by requesting to
participate in the Plan, acknowledge that the forum designated by this Paragraph (b) has a
reasonable relation to the Plan and to the Participant’s relationship with the Firm.
Notwithstanding the foregoing, nothing herein shall preclude the Firm from bringing any action or
proceeding in any other court for the purpose of enforcing the provisions of this Section 10.6 or
otherwise.

(c) This provision as to forum is independent of the law that may be applied in the suit,
action or proceeding, and each Participant, by requesting to participate in the Plan, and the Firm
agrees to such forum even if the forum may under applicable law choose to apply non-forum law.
Each Participant, by requesting to participate in the Plan, and the Firm hereby waive, to the
fullest extent permitted by applicable law, any objection which the Participant or the Firm now or
hereafter may have to personal jurisdiction or to the laying of venue of any such suit, action or
proceeding in any court referred to in Paragraph (b) of this Section 10.6. Each Participant, by
requesting to participate in the Plan, and the Firm undertake not to commence any suit, action or
proceeding arising out of or relating to or concerning the Plan in any forum other than a forum
described in this Section 10.6. Each Participant, by requesting to participate in the Plan, and
the Firm agree that, to the fullest extent permitted by applicable law, a final and non-appealable
judgment in any such suit, action or proceeding in any such court shall be conclusive and binding
upon the Participant and the Firm.

(d) Each Participant, by requesting to participate in the Plan, irrevocably appoints the
General Counsel of GS Inc. as the Participant’s agent for service of process in connection with any
action or proceeding arising out of or relating to or concerning the Plan that is not arbitrated
pursuant to the provisions of this Section 10.6, who shall promptly advise the Participant of any
such service of process.

(e) Each Participant, by requesting to participate in the Plan, agrees to keep confidential
the existence of, and any information concerning, a dispute, controversy or claim described in this
Section 10.6, except that a Participant may disclose information concerning such dispute,
controversy or claim to the arbitrator or court that is considering such dispute, controversy or
claim or to his or her legal counsel (provided that such counsel agrees not to disclose any such
information other than as necessary to the prosecution or defense of the dispute, controversy or
claim).

10.7 Governing Law

The Plan shall be construed, administered and governed in all respects under and by the laws of the
State of New York, without reference to the principles of conflicts of law (except if and to the
extent preempted by applicable Federal law). It is the intent of GS

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Inc. that this Plan be considered and interpreted as a plan maintained outside the United States
primarily for the benefit of nonresident aliens of the United States. If and to the extent any
portion of the Plan is not so treated it shall be treated in all respects as part of a bonus plan
within the meaning of U. S. Department of Labor Regulation Section 2510.3-2(c) and not in any
respect as an employee pension plan for purposes of ERISA. If and to the extent that any portion
of this Plan shall be determined to be an employee pension benefit plan subject to ERISA, then such
portion shall be considered a separate plan covering only those Participants as to whom this Plan
is determined to be a pension plan. Such pension plan shall in all respects be considered and
interpreted as a plan which is unfunded and maintained primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated employees and exempt
from coverage of Parts 1, 2, 3 and 4 of Subtitle B of Title I of ERISA to the maximum extent
permissible under the provisions thereof. Further, it is the intent of GS Inc. that this Plan be
considered and interpreted in all respects as a nonqualified deferred compensation plan satisfying
the requirements of Section 409A of the Code and deferring the recognition of income by
Participants in respect of Deferrals until amounts are actually paid to them pursuant to Article 7.

10.8 Certain Consents

As a condition of participating in the Plan, each Eligible Employee wishing to make a Deferral
Request, and each Participant, shall be required to sign such documents, make such representations
and sign such consents, including, without limitation signing any consent or taking any other
action necessary for the Firm to insure the life of the Participant and name itself as beneficiary
to the extent deemed necessary or appropriate of such insurance.

Without limiting the foregoing, by submitting a Deferral Request Form, a Participant will have
irrevocably agreed to consent to (i) the Firm’s supplying to any third party recordkeeper such
personal information as the Administrative Committee deems advisable to administer the Plan, (ii)
the Firm’s deducting amounts from the Participant’s wages to reimburse the Firm for any advances
made on the Participant’s behalf to satisfy any withholding and other tax obligations, (iii) the
Firm’s deducting or withholding from any payment or distribution to the Participant, whether or not
pursuant to the Plan, the amount of any taxes (including, without limitation, FICA, National
Insurance Contributions or social insurance taxes) the Administrative Committee determines apply in
connection with any Deferral or distribution under the Plan and (iv) withholding from any
distribution under the Plan any amount the Administrative Committee determines is payable by the
Participant to the Firm.

10.9 Currency Conversions

The Administrative Committee, in its discretion, shall have the authority to prescribe such rules
and procedures as it may deem appropriate for purposes of converting any currency into another
currency for purposes of the Plan including, without limitation, for purposes of determining (i)
the Minimum Deferral Amount, (ii) the Maximum Deferral Amount, (iii) the Maximum Aggregate Deferral
Amount, (iv) the amount of any Eligible

15

 

Employee’s Deferral, (v) the amount of any investment gains or losses to be allocated to a
Participant’s Account, (vi) the amount of any distribution, (vii) the amount of any Participant’s
Eligible Compensation and (viii) the amount of any Participant’s Minimum Eligible Compensation.
The determination of the exchange rate by the Administrative Committee shall be conclusive.

10.10 Non-Uniform Determinations

None of the Administrative Committee’s determinations under the Plan need to be uniform and any
such determinations may be made by it selectively among persons who make Deferral Requests under
the Plan (whether or not such persons are similarly situated). Without limiting the generality of
the foregoing, the Administrative Committee shall be entitled, among other things, to make
non-uniform and selective determinations with regard to Deferrals, currency conversions and
availability of Notional Investments, and to enter into non-uniform and selective Deferral
Requests, as to (a) the persons permitted to make Deferrals, (b) the terms and provisions of any
Deferral, (c) whether a Participant’s employment with the Firm has been terminated for purposes of
the Plan and (d) any adjustments to be made with respect to any Deferral as described herein or
otherwise.

10.11 Severability; Entire Agreement

If any of the provisions of this Plan is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such provision shall be deemed modified to the extent, but only to
the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall
not be affected thereby. Each Participant, by requesting to participate in the Plan, acknowledges
that the Plan contains the entire agreement of the parties with respect to the subject matter
thereof and supersedes all prior agreements, promises, covenants, arrangements, communications,
representations and warranties between them, whether written or oral with respect to the subject
matter thereof.

10.12 No Third Party Beneficiaries

The Plan shall not confer on any person other than the Firm and the Participants any rights or
remedies thereunder; provided that the exculpation and indemnification provisions of Section 8.3
shall inure to the benefit of a Covered Person’s estate, beneficiaries and legatees.

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10.13 Headings and Subheadings

Headings and subheadings in this Plan are inserted for convenience only and are not to be
considered in the construction of the provisions hereof.

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