Document:

EX-10.38: LETTER DATED 9/24/2001

 

Exhibit 10.38

The Goldman Sachs Group. Inc. / 85 Broad Street /
New York, New York 10004

Tel: 212-902-4001 / Fax: 212-902-0633 / e-mail:
robert.katz@gs.com

Robert J. Katz

Vice President

Senior Counsel and Secretary to the Board

September 24, 2001

PERSONAL AND CONFIDENTIAL

Margaret C. Whitman

President and Chief Executive Officer

eBay, Inc.

2145 Hamilton Avenue

San Jose, CA 95125

Dear Ms. Whitman:

     
We are all very pleased that you have agreed to
join the Board of Directors of The Goldman Sachs Group, Inc.
(“GS Inc.”), and I look forward to seeing you at the
November meetings here in New York, if not before. I am writing
to set forth the terms of your compensation as a director. These
terms are, of course, subject to future modification by the
Board.

     
Your term as a director will commence on
September 25, 2001 and will run through the 2004 annual meeting
of shareholders of GS Inc. You have also been appointed a member
of the Audit Committee and the Compensation Committee.

     
You will receive an initial grant of 3,000 fully
vested restricted stock units (“RSUs”) under The
Goldman Sachs 1999 Stock Incentive Plan (the “SIP”).

     
As additional compensation for your services, you
will receive:

			
	 	• 	
        $35,000 per year (the “Annual
        Retainer”);
        
	 
	 	• 	
        $15,000 per year for serving on each of the Board
        committees of which you are a member (the “Committee
        Fees”);
        
	 
	 	• 	
        $1,000 for each meeting of the Board or of a
        Board committee that you attend (the “Meeting
Fees”); and
        
	 
	 	• 	
        an annual grant (the “Annual
        Grant”), at your election on or before September 30th of
        the prior year, of (a) 2,000 fully vested RSUs;
        (b) fully vested options (“Options”) to purchase
        6,000 shares of GS Inc. common stock; or (c) 1,000 RSUs and
        Options to purchase 3,000 shares of GS Inc. common stock.
        

 

     
The Annual Retainer and the Committee Fees are
paid annually in arrears in the form of RSUs unless GS Inc.
determines to pay them in cash. The Meeting Fees are payable in
cash, also annually in arrears. The Annual Grant is paid
annually in advance of the fiscal year to which it pertains in
the form of RSUs and/or Options as elected by you.

     
For 2001, you will receive the Annual Retainer,
Committee Fees and Annual Grant pro rated from the date of your
appointment; the RSUs and, if applicable with respect to the
Annual Grant, Options in respect of these awards will be granted
later this year; Meeting Fees will be calculated on the number
of meetings you attend for the remainder of 2001 and will be
paid in cash in arrears. I enclose a form for the 2001 Annual
Grant election as between RSUs and Options as well as a form for
the 2002 Annual Grant election; please return both forms by
September 30th.

     
The terms of the Options for the 2001 Annual
Grant were set last year and have the same exercise price
($82.875) as the options that were granted to employees for the
2000 fiscal year; will become exercisable on the earlier of
(a) the first trading day in January 2004 unless that day
is not during an “access person window period”
(“Window Period”) under GS Inc.’s trading policy,
in which case, the first trading day of the first Window Period
that begins thereafter, and (b) the date on which you cease
to be a director of GS Inc.; and will expire on
November 26, 2010.

     
Any Options granted to you as part of the Annual
Grant 2002 and thereafter will:

			
	 	(i)	
        be granted on the same date as the date of grant
        of any year-end equity awards granted generally to employees of
        GS Inc. and its affiliates for the prior fiscal year or, if no
        such equity awards are granted, on the last business day of
        December in the fiscal year to which the Annual Grant pertains;
        
	 
	 	(ii)	
        first become exercisable on the earlier of
        (a) the same date that year-end options granted generally
        to employees of GS Inc. and its affiliates for the prior fiscal
        year become exercisable or, if no such options are granted, on
        the first trading day in January three years after the date of
        grant unless that date is not during a Window Period, in which
        case the first trading day of the first Window Period that
        begins thereafter, and (b) the date on which you cease to
        be a director of GS Inc.;
        
	 
	 	(iii)	
        have an exercise price equal to the exercise
        price of any year-end options granted generally to employees of
        GS Inc. and its affiliates for the prior fiscal year or, if no
        such options are granted, the closing price of GS Inc.’s
        common stock on the New York Stock Exchange on the date of grant
        of the Annual Grant; and
        

			
	 	(iv)	
        will expire ten years after the date of grant.
        

 

     
RSUs for the Annual Retainer, the Committee Fees
and, if applicable, the Annual Grant will:

			
	 	(i)  	
        be granted to you as of the date of grant of any
        year-end equity award granted generally to employees of GS Inc.
        and its affiliates or, if no such award is granted, as of the
        last business day of December of such fiscal year (or in the
        case of RSUs for the Annual Grant, as of the last business day
        of December in the fiscal year to which the grant pertains); and
        
	 
	 	(ii) 	
        provide for delivery of shares of GS Inc. common
        stock on the last business day in May in the year following the
        date on which you cease to be a director of GS Inc.
        

The number of RSUs you receive for the Annual
Retainer and the Committee Fees will be determined in the same
manner as grants to employees for year-end RSUs for that fiscal
year or, if no such RSUs are granted, at a grant price equal to
the average closing price of GS Inc.’s common stock on the
New York Stock Exchange over the 10 trading days up to and
including the last day of the fiscal year.

     
All Options and RSUs will be subject to the terms
and conditions of the SIP and the relevant award agreements.

     
I have enclosed various documents in connection
with these arrangements. Please complete them as necessary, sign
where indicated and return them in the enclosed envelope. The
remaining copies are for your records.

		
	 	
        Very truly yours,
        
	 
	 	
        /s/ Robert J. Katz
        
	 
	 	
        Robert J. Katz
        

Enclosures: The
Goldman Sachs 1999 Stock Incentive Plan (and Prospectus
Materials)

                       Outside
Director Initial RSU Award Agreement

                       Custody
Agreement

                       Signature
Card

                       Form W-9

                       Election
Forms for 2001 and 2002 Annual GrantsEX-10.39: LETTER DATED 11/19/2001

 

Exhibit 10.39

Goldman Sachs & Co. / 85 Broad Street / New York, New York 10004

Tel: 212-902-9344

John F.W. Rogers

Managing Director

[GOLDMAN SACHS LOGO]

November 19, 2001

PERSONAL AND
CONFIDENTIAL

 

Dr. Morris Chang

Chairman

Taiwan Semiconductor Manufacturing Co. Ltd.

No. 121, Park Avenue

III Science-Based Industrial Park

Hsin-Chu

Taiwan, R.O.C.

     

Dear Dr. Chang:

     We are all very pleased that you have agreed to join the Board of
Directors of The Goldman Sachs Group, Inc. (“GS Inc.”) and look forward to
seeing you at the January meetings here in New York, if not before. I am
writing to set forth the terms of your compensation as a director. These terms
are, of course, subject to future modification by the Board.

     Your term as a director will commence on December 1, 2001 and will run
through the 2004 annual meeting of shareholders of GS Inc. You have also been
appointed a member of the Audit Committee.

     You will receive an initial grant of 3,000 fully vested restricted stock
units (“RSUs”) under The Goldman Sachs 1999 Stock Incentive
Plan (the “SIP”).

     As additional
compensation for your services, you will receive:

			
	 	• 	$35,000 per year (the “Annual Retainer”);
	 
	 	• 	$15,000 per year for serving on the Board committee of which you are a
        member (the “Committee Fees”);
	 
	 	• 	$1,000 for each meeting of the Board or of a Board committee that you
        attend (the “Meeting Fees”); and
	 
	 	• 	an annual grant (the “Annual Grant”), at your election, of (a) 2,000
        fully vested RSUs; (b) fully vested options (“Options”) to purchase
        6,000 shares of GS Inc. common stock; or (c) 1,000 RSUs and Options to
        purchase 3,000 shares of GS Inc. common stock.

 

     The Annual Retainer and the
Committee Fees are paid annually in arrears in the form of RSUs
unless GS Inc. determines to pay them in cash. The Meeting Fees are
payable in cash, also annually in arrears. The Annual Grant is paid
annually in advance of the fiscal year to which it pertains in the
form of RSUs and/or Options as elected by you; I enclose a form for
the 2002 Annual Grant election; please return the form by
December 10th.

     Any Options granted to you as part
of the Annual Grant for 2002 and thereafter will:

			
	 	(i)	generally be granted on the
same date as the date of grant of any year-end equity awards granted
generally to employees of GS Inc. and its affiliates for the prior
fiscal year or, if no such equity awards are granted, on the last
business day of December in the fiscal year to which the Annual Grant
pertains;
	 
	 	(ii)	first become exercisable on the
earlier of (a) the same date that year-end options granted generally
to employees of GS Inc. and its affiliates for the prior fiscal year
become exercisable or, if no such options are granted, on the first
trading day in January three years after the date of grant unless
that date is not during an “access person window period”
(“Window Period”) under GS Inc.'s trading policy, in which
case the first trading day of the first Window Period that begins
thereafter, and (b) the date on which you cease to be a director
of GS Inc.;
	 
	 	(iii)	have an exercise price equal to the
exercise price of any year-end options granted generally to employees
of GS Inc. and its affiliates for the prior fiscal year or, if no
such options are granted, the closing price of GS Inc.'s common stock
on the New York Stock Exchange on the date of grant of the Annual
Grant; and
	 
	 	(iv)	will expire ten years after the date
of grant.

     RSUs for the Annual Retainer, the
Committee Fees and, if applicable, the Annual Grant will:

			
	 	(i)	generally be granted to you as
of the date of grant of any year-end equity award granted generally
to employees of GS Inc. and its affiliates or, if no such award is
granted, as of the last business day of December of such fiscal year
(or in the case of RSUs for the Annual Grant, as of the last business
day of December in the fiscal year to which the grant pertains);
and
	 
	 	(ii)	provide for delivery of shares
of GS Inc. common stock on the last business day in May in the year
following the date on which you cease to be a director of GS
Inc.

 

The number of RSUs you receive for the Annual Retainer and the
Committee Fees will be determined in the same manner as grants to
employees for year-end RSUs for that fiscal year or, if no such RSUs
are granted, at a grant price equal to the average closing price of
GS Inc.'s common stock on the New York Stock Exchange over the 10
trading days up to and including the last day of the fiscal
year.

        All Options and RSUs will be subject to
the terms and conditions of the SIP and the relevant award
agreements.

        I have enclosed various documents in
connection with these arrangements. Please complete them as
necessary, sign where indicated and return them to James McHugh's
attention in the enclosed envelope. The remaining copies are for your
records.

		
	 	Very truly yours,
	 	 
	 	/s/ John F.W. Rogers
	 	 
	 	John F.W. Rogers
	 	 

		
	Enclosures:	The Goldman Sachs 1999 Stock Incentive Plan (and Prospectus
Materials)
	 	Outside Director Initial RSU Award
Agreement
	 	Custody Agreement
	 	Signature Card
	 	Election Form for Fiscal 2002 Annual Grant
	 	Form W-9

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