Document:

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                                                                    Exhibit 10.3

             AMENDMENT NUMBER 1 TO THE TAX INDEMNIFICATION AGREEMENT
                            DATED AS OF MAY 7, 1999

                  AMENDMENT NUMBER 1, dated as of September 5, 2000 (the "First
Amendment") to the Tax Indemnification Agreement between The Goldman Sachs
Group, Inc., a Delaware corporation (the "Company") and the Indemnitees listed
therein (the "Indemnitees"), dated as of May 7, 1999 (the "Tax Indemnification
Agreement");

                  WHEREAS, Section 10 of the Tax Indemnification Agreement
authorizes the Company to amend the Tax Indemnification Agreement in any respect
so long as such amendment does not materially adversely affect the amount an
Indemnitee is otherwise entitled to receive from the Company pursuant to the Tax
Indemnification Agreement; and

                  WHEREAS, the Company desires to amend the Tax Indemnification
Agreement as set forth herein in order to clarify certain provisions contained
therein;

                  NOW THEREFORE, the Tax Indemnification Agreement is amended by
the addition of the following as a new Section 3(g):

         "(g) Without limiting any other rights of the Company contained herein,
(i) the Company (or its designee) shall have the right to designate or appoint
(or consent or agree to the designation or appointment of) any individual or
entity, including making any such designation or appointment (or consenting or
agreeing to any such designation or appointment) in the name and on behalf of
the Indemnitee (and in the case of an Indemnitee who or which is the transferee
of substantially all of the assets of a former partner of the Partnership, on
behalf of such former partner), as the Tax Matters Partner (as defined in
Section 6231(a)(7) of the Internal Revenue Code), with respect to any taxable
year, of the Partnership or any Affiliate; (ii) the Company, any designee of the
Company or any relevant Tax Matters Partner shall have the right (including,
without limitation, in its own name or in the name of, and on behalf of, any
Indemnitee (and in the case of an Indemnitee who or which is the transferee of
substantially all of the assets of a former partner of the Partnership, on
behalf of such former partner)) to extend or to consent to the extension of any
statute of limitations applicable to the Partnership, any Affiliate, or, to the
extent applicable to a Partnership Item, the Indemnitee; and (iii) the Company,
any designee of the Company or any relevant Tax Matters Partner shall have the
right to take any action, including in the name and on behalf of the Indemnitee
(and in the case of an Indemnitee who or which is the transferee of
substantially all of the assets of a former partner of the Partnership, on
behalf of such former partner), with respect to any actual or proposed
assessment, audit, examination or other similar proceeding or matter, including
agreeing to any audit adjustment or other assessment. Each Indemnitee (i) hereby
approves of such designation, appointment, agreement, consent, extension or
action and consents and agrees to execute, certify, acknowledge, deliver, swear
to, file and record at the appropriate public offices evidence of such approval,
designation, appointment, agreement, consent, extension or action and to take
any other action reasonably requested by the Company (or its designee) as may be
deemed necessary or appropriate and (ii) to the extent permitted by law, agrees
not to challenge or claim or cooperate or assist any other party in challenging
or claiming, as a complaint or a defense, or
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otherwise asserting in any respect whatsoever, that such approval, designation,
appointment, agreement, consent, extension or action is not valid or
enforceable."

                  Unless otherwise defined herein, all capitalized and undefined
terms shall have the meanings assigned to them in the Tax Indemnification
Agreement.

                  Except as amended hereby, all of the terms of the Tax
Indemnification Agreement shall remain and continue in full force and effect and
are hereby confirmed in all respects.

                  IN WITNESS WHEREOF, the Company has executed and delivered
this Amendment Number 1 as of the date above written.

                                        THE GOLDMAN SACHS GROUP, INC.

                                        By:     /s/ John A. Thain
                                             Name:  John A. Thain
                                             Title: Director, President and
                                                    Co-Chief Operating Officer

                                       -2-<PAGE>   1
                                                                    Exhibit 10.1

                     FORM OF STANDARD STOCK OPTION AGREEMENT

         STOCK OPTION  AGREEMENT dated as of  ______________  between BED BATH &
BEYOND INC., a New York corporation, and_____________(the "Optionee").

                             PRELIMINARY STATEMENT

                  Pursuant to the Bed Bath & Beyond Inc. ____ Stock Option Plan
         ("the Plan"), the Committee that administers the Plan (the "Committee")
         has authorized the granting to Optionee of an option to purchase
         _________ shares of the Company's common stock, par value $.01 per
         share ("Common Stock"), subject to the Plan and the terms and
         conditions set forth herein. The parties hereto desire to enter into
         this Agreement in order to set forth the terms of such option.

                  Accordingly, the parties hereto agree as follows:

                  1. Grant of Option. Subject to the Plan and the terms and
         conditions of this Agreement, the Company hereby grants to Optionee the
         option (the "Option") to purchase from the Company up to _______ shares
         of Common Stock at a price of $______per share. The Option shall not be
         immediately exercisable but shall become exercisable in installments,
         which shall be cumulative, as indicated below:*

<TABLE>
<CAPTION>
         Date on which Installment                                 Number of Shares
         First Vests and Becomes Exercisable                       In Installments
         -----------------------------------                       -----------------
<S>                                                                <C>
         (one year from date of grant)                             20% of the number of shares
                                                                   originally subject to the Option

         (two years from date of grant)                            20% of the number of shares
                                                                   originally subject to the Option

         (three years from date of grant)                          20% of the number of shares
                                                                   originally subject to the Option

         (four years from date of grant)                           20% of the number of shares
                                                                   originally subject to the Option

         (five years from date of grant)                           20% of the number of shares
                                                                   originally subject to the Option
</TABLE>

                      * In some stock option agreements where the optionee has
         previously been granted stock options, the dates on which installments
         first vest and become exercisable are from three years from date of
         grant through seven years from date of grant. In some stock option
         agreements the number of shares in each installment is 33-1/3% of the
         number of shares originally subject to the option and in such cases the
         dates on which installments first vest and become exercisable are from
         one year from date of grant through three years from date of grant.

                                      -11-
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         2.  Plans  Governing  Terms of  Option.  The  Option is  subject in all
respects to the terms and  conditions  of the Plan,  a copy of which is attached
hereto as Exhibit A.

         3.  Type of  Option.  The  Option  is not  intended  to  qualify  as an
"incentive  stock  option"  within the  meaning of Section  422 of the  Internal
Revenue Code of 1986, as amended.

         4. Termination.  The Option shall terminate on the tenth anniversary of
the date hereof, unless terminated earlier pursuant to the following sentence or
otherwise  pursuant to the Plan.  The Option shall  immediately  terminate  upon
termination  of the  Optionee's  employment  with the  Company,  subject  to the
following  exceptions  (i) if such  termination  is by  reason  of the  death or
disability of the Optionee, the unexercised portion of the Option shall continue
to be  exercisable  for 12  months  after  such  termination  and  (ii)  if such
termination  is for any other  reason,  excluding  termination  for  cause,  the
unexercised  portion of the Option shall  continue to be  exercisable  for three
months after such termination (subject, in the case of both clauses (i) and (ii)
above, to the preceding sentence).

         5. Exercise. The Option may be exercised by delivering to the Company a
written  notice  (signed by the  Optionee)  stating  the  number of shares  with
respect to which the Option is being  exercised,  together  with full payment of
the purchase price therefor.  Payment may be made in cash or by certified check,
bank draft,  or money order payable to the order of the Company or, if permitted
by the Committee,  through delivery of shares of Common Stock (such shares to be
valued as provided in the Plan).  As provided  in the Plan,  the  Committee  may
require  Optionee  to remit to the Company an amount  sufficient  to satisfy any
federal, state or local withholding tax requirements (or make other arrangements
satisfactory  to the Company with regard to such taxes) prior to  delivering  to
Optionee any shares purchased upon exercise of the Option. The Option may not be
exercised with respect to a fractional share.

         6.  Restriction  on  Transfer.  The  Option  may  not  be  assigned  or
transferred  except by will or the laws of descent and  distribution  and during
the Optionee's lifetime may be exercised only by him.**

         7. Notice.  Any notice or communication to the Company  hereunder shall
be in  writing  and shall be deemed to have been duly given  when  delivered  in
person,  or by United States mail,  to the  following  address (or to such other
address as the Company shall from time to time specify):

               ** In some stock option agreements Paragraph 6 reads as follows:
  The Option may not be assigned or transferred except by will or the laws of
  descent and distribution and except by a written assignment (signed by the
  Optionee and delivered to the Company), provided such assignment assigns all
  or a portion of the Option to the Optionee's spouse, descendants or trusts for
  the sole benefit of the Optionee's spouse or descendants. The Option may be
  exercised only by the Optionee, the Optionee's assignee pursuant to an
  assignment permitted hereunder, or by the executor or personal representative
  of the Optionee or of such assignee.

                                      -12-
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                             Bed Bath & Beyond Inc.
                     C/O Petitti, Eisenberg & Gamache, P.C.
                            Attention: Todd Eisenberg
                               488 Pleasant Street
                              New Bedford, MA 02740

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above written.

BED BATH & BEYOND INC.

By:
     ------------------------

     ------------------------
         (Optionee)

                                      -13-

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