Document:

EX-10.41

 

EXHIBIT 10.41

Description of Non-Employee Director Compensation

For fiscal 2006, the compensation for the non-employee directors of The Goldman Sachs Group, Inc.
(Group Inc.) consists of:

	 	•	 	an annual equity grant of one of the following: (i) 3,000 fully vested restricted
stock units (RSUs), (ii) 1,500 fully vested RSUs and 6,000 fully vested stock options
(Options), or (iii) 12,000 fully vested Options, at the non-employee director’s
election (grants were made on December 13, 2005, with each of the non-employee
directors receiving 3,000 fully vested RSUs other than James A. Johnson, who received
1,500 fully vested RSUs and 6,000 fully vested Options);
	 
	 	•	 	a $75,000 annual retainer, payable in December 2006, in cash or through a grant of
fully vested RSUs, at the non-employee director’s election; and
	 
	 	•	 	a $25,000 committee chair fee, if applicable, payable in December 2006, in cash or
through a grant of fully vested RSUs, at the non-employee director’s election.

RSUs awarded in connection with non-employee director compensation provide for delivery of the
underlying shares of common stock, par value $0.01 per share (Common Stock) of Group Inc. on the
last business day in May in the year following the year of the non-employee director’s retirement
from the Group Inc. Board of Directors. Options awarded with respect to the fiscal 2006 annual
equity grant generally become exercisable on the earlier of (i) the date the non-employee director
ceases to be a director of Group Inc., and (ii) January 2009, although if the non-employee director
remains a director of Group Inc., the underlying shares are subject to transfer restrictions until
January 2010.

The Group Inc. Board of Directors, upon the recommendation of the Corporate Governance and
Nominating Committee, has a policy on stock ownership retention that requires non-employee
directors to beneficially own at least 5,000 shares of Common Stock or fully vested RSUs within two
years of becoming a director. All of our non-employee directors are in compliance with this
policy.

Our directors are permitted to participate in Group Inc.’s employee matching gift program on the
same terms as employees. Under the program for 2005, Group Inc. matches gifts of up to $2,000 in
the aggregate per individual (and up to $25,000 in the aggregate per individual in the case of
gifts made under a special program implemented in connection with Hurricane Katrina).

Non-employee directors receive no compensation other than directors’ fees.EX-10.42

 

EXHIBIT 10.42

Description of Certain Benefits for Participating Managing Directors

On December 13, 2005, certain benefits for participating managing directors (PMDs) of The Goldman
Sachs Group, Inc. (Group Inc.) were approved. The benefits include the following:

	 	•	 	PMDs who retire on or after November 24, 2006 and who, on the date of their
retirement, have been PMDs for eight or more years, will be eligible to receive
retiree medical coverage, subsidized by Group Inc. or its subsidiaries. The subsidy
will be for 75% of the cost of coverage.
	 
	 	•	 	Effective January 1, 2006, each PMD will receive life insurance coverage during
active employment as a PMD with coverage ending at
age 75. The coverage will provide an aggregate U.S. $4.5 million death benefit for each
PMD.EX-10.43

 

EXHIBIT 10.43

THE GOLDMAN SACHS AMENDED AND RESTATED

STOCK INCENTIVE PLAN

ONE-TIME RSU AWARD

This Award Agreement sets forth the terms and conditions of this special one-time award (this
“Award”) of restricted stock units (“One-time RSUs”) granted to you under The Goldman Sachs Amended
and Restated Stock Incentive Plan (the “Plan”).

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

2.          Award. The number of One-time RSUs subject to this Award is set forth in the Award
Statement delivered to you. An RSU is an unfunded and unsecured promise to deliver (or cause to be
delivered) to you, subject to the terms and conditions of this Award Agreement, a share of Common
Stock (a “Share”) on the Delivery Date or as otherwise provided herein. Until such delivery, you
have only the rights of a general unsecured creditor, and no rights as a shareholder of GS Inc.
This Award is conditioned on your executing the related signature card and returning it to the
address designated on the signature card and/or by the method designated on the signature card by
the date specified, and is subject to all terms, conditions and provisions of the Plan and this
Award Agreement, including, without limitation, the arbitration and choice of forum provisions set
forth in Paragraph 12. By executing the related signature card (which, among other
things, opens the custody account referred to in paragraph 3(b) if you have not done so
already), you will have confirmed your acceptance of all of the terms and conditions of this Award
Agreement.

3.          Vesting and Delivery.

(a)        Vesting. Except as provided in this Paragraph 3 and in Paragraphs 4, 6, 7, 9, 10
and 15, on each Vesting Date you shall become Vested in the number or percentage of One-time RSUs
specified next to such Vesting Date on the Award Statement (which may be rounded to avoid
fractional Shares). While continued active Employment is not required in order to receive delivery
of the Shares underlying your Outstanding One-time RSUs that are or become Vested, all other terms
and conditions of this Award Agreement shall continue to apply to such Vested One-time RSUs, and
failure to meet such terms and conditions may result in the termination of this Award (as a result
of which no Shares underlying such Vested One-time RSUs would be delivered).

(b)        Delivery.

(i)        The Delivery Date with respect to this Award shall be each date specified as such on your
Award Statement, if that date is during a Window Period or, if that date is not during a Window
Period, the first Trading Day of the first Window Period beginning after such date. For this
purpose, a “Trading Day” is a day on which Shares trade regular way on the New York Stock Exchange.

(ii)        Except as provided in this Paragraph 3 and in Paragraphs 4, 6, 7, 9, 10 and 15, in
accordance with Section 3.23 of the Plan, reasonably promptly (but in no case more than thirty (30)

 

 

Business Days) after the relevant date specified as the Delivery Date (or any other date
delivery of Shares is called for hereunder), Shares underlying the number or percentage of your
then Outstanding One-time RSUs with respect to which that Delivery Date (or other date) has
occurred (which number of Shares may be rounded to avoid fractional Shares) shall be delivered by
book entry credit to your Custody Account or to a brokerage account approved by the Firm.
Notwithstanding the foregoing, if you are or become considered by GS Inc. to be one of its “covered
employees” within the meaning of Section 162(m) of the Code, then you shall be subject to Section
3.21.3 of the Plan, as a result of which delivery of your Shares may be delayed.

(iii)       In accordance with Section 1.3.2(i) of the Plan, in the discretion of the
Committee, in lieu of all or any portion of the Shares otherwise deliverable in respect of all or
any portion of your One-time RSUs, the Firm may deliver cash, other securities, other Awards or
other property, and all references in this Award Agreement to deliveries of Shares shall include
such deliveries of cash, other securities, other Awards or other property.

(c) Death. Notwithstanding any other provision of this Award Agreement, if you die
prior to the Delivery Date, the Shares underlying your then Outstanding One-time RSUs shall be
delivered to the representative of your estate as soon as practicable after the date of death and
after such documentation as may be requested by the Committee is provided to the Committee.

4.          Termination of One time RSUs and Non-Delivery of Shares.

(a)        Unless the Committee determines otherwise, and except as provided in Paragraphs 3(c), 6,
7, and 9, if your Employment terminates for any reason or you otherwise are no longer actively
employed with the Firm, your rights in respect of your One time RSUs that were Outstanding but that
had not yet become Vested immediately prior to your termination of Employment immediately shall
terminate, such One time RSUs shall cease to be Outstanding and no Shares shall be delivered in
respect thereof.

(b)        Unless the Committee determines otherwise, and except as provided in Paragraphs 6 and 7,
your rights in respect of all of your Outstanding One time RSUs (whether or not Vested) shall
immediately terminate, such One time RSUs shall cease to be Outstanding and no Shares shall be
delivered in respect thereof if:

(i)        you attempt to have any dispute under the Plan or this Award Agreement resolved in any
manner that is not provided for by Paragraph 12 or Section 3.17 of the Plan;

(ii)        any event that constitutes Cause has occurred;

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

(iv)       you fail to certify to GS Inc., in accordance with procedures established by the
Committee, that you have complied, or the Committee determines that you in fact have failed to
comply, with all the terms and conditions of the Plan and this Award Agreement. By accepting the
delivery of Shares under this Award Agreement, you shall be deemed to have represented and
certified at such time that you have complied with all the terms and conditions of the Plan and
this Award Agreement;

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

(vi)       as a result of any action brought by you, it is determined that any of the terms or
conditions for delivery of Shares in respect of this Award Agreement are invalid.

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

5.          Repayment. The provisions of Section 2.6.3 of the Plan (which requires Award
recipients to repay to the Firm amounts delivered to them if the Committee determines that all
terms and conditions of this Award Agreement in respect of such delivery were not satisfied) shall
apply to this Award.

6.          Extended Absence, Retirement and Downsizing. 

(a)        Notwithstanding any other provision of this Award Agreement, but subject to Paragraph
6(b), in the event of the termination of your Employment (determined as described in Section 1.2.19
of the Plan) by reason of Extended Absence or Retirement, the condition set forth in Paragraph 4(a)
shall be waived with respect to any One time RSUs that were Outstanding but that had not yet become
Vested immediately prior to such termination of Employment (as a result of which such One-time RSUs
shall become Vested), but all other conditions of this Award Agreement shall continue to apply.

(b)        Without limiting the application of Paragraph 4(b), your rights in respect of your
Outstanding One time RSUs that become Vested in accordance with Paragraph 6(a) immediately shall
terminate, such Outstanding One time RSUs shall cease to be Outstanding, and no Shares shall be
delivered in respect thereof if, prior to the original Vesting Date with respect to such One time
RSUs, you (i) form, or acquire a 5% or greater equity ownership, voting or profit participation
interest in, any Competitive Enterprise, or (ii) associate in any capacity (including, but not
limited to, association as an officer, employee, partner, director, consultant, agent or advisor)
with any Competitive Enterprise. Notwithstanding the foregoing, unless otherwise determined by the
Committee in its discretion, this Paragraph 6(b) will not apply if your termination of Employment
by reason of Extended Absence or Retirement is characterized by the Firm as “involuntary” or by
“mutual agreement” other than for Cause and if you execute such a general waiver and release of
claims and an agreement to pay any associated tax liability, both as may be prescribed by the Firm
or its designee. No termination of Employment initiated by you, including any termination claimed
to be a “constructive termination” or the like or a termination for good reason, will constitute an
“involuntary” termination of Employment or a termination of Employment by “mutual agreement.”

(c)        Notwithstanding any other provision of this Award Agreement and subject to your executing
such general waiver and release of claims and an agreement to pay any associated tax liability,
both as may be prescribed by the Firm or its designee, if your Employment is terminated without
Cause solely by reason of a “downsizing,” the condition set forth in Paragraph 4(a) shall be waived
with respect to your One time RSUs that were Outstanding but that had not yet become Vested
immediately prior to such termination of Employment (as a result of which such One time RSUs shall
become Vested), but all other conditions of this Award Agreement shall continue to apply. Whether
or not your Employment is terminated solely by reason of a “downsizing” shall be determined by the
Firm in its sole discretion. No termination of Employment initiated by you, including any
termination claimed to be a “constructive termination” or the like or a termination for good
reason, will be solely by reason of a “downsizing.”

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7.          Change in Control. Notwithstanding anything to the contrary in this Award
Agreement, in the event a Change in Control shall occur and within 18 months thereafter the Firm
terminates your Employment without Cause or you terminate your Employment for Good Reason, all
Shares underlying your then Outstanding One time RSUs, whether or not Vested, shall be delivered.

8.          Dividend Equivalent Rights. Each One time RSU shall include a Dividend Equivalent
Right. Accordingly, with respect to each of your Outstanding One time RSUs, at or after the time
of distribution of any regular cash dividend paid by GS Inc. in respect of a Share the record date
for which occurs on or after the Date of Grant, you shall be entitled to receive an amount (less
applicable withholding) equal to such regular dividend payment as would have been made in respect
of the Share underlying such Outstanding One time RSU. Payment in respect of a Dividend Equivalent
Right shall be made only with respect to One time RSUs that are Outstanding on the payment date.
Each Dividend Equivalent Right shall be subject to the provisions of Section 2.8.2 of the Plan.

9.          Certain Additional Terms, Conditions and Agreements.

(a)        The delivery of Shares is conditioned on your satisfaction of any applicable withholding
taxes in accordance with Section 3.2 of the Plan.

(b)        If you are or become a Managing Director, your rights in respect of the One time RSUs are
conditioned on your becoming a party to any shareholders’ agreement to which other similarly
situated employees of the Firm are a party.

(c)        Your rights in respect of your One time RSUs are conditioned on the receipt to the full
satisfaction of the Committee of any required consents (as described in Section 3.3 of the Plan)
that the Committee may determine to be necessary or advisable.

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

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

(f)        GS Inc. may affix to Certificates representing Shares issued pursuant to this Award
Agreement any legend that the Committee determines to be necessary or advisable (including to
reflect any restrictions to which you may be subject under a separate agreement with GS Inc.). GS
Inc. may advise the transfer agent to place a stop order against any legended Shares.

(g)        Without limiting the application of Paragraph 4(b), if:

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

(ii)        following your termination of Employment other than described in Paragraph 9(g)(i), you
notify the Firm that you have accepted or intend to accept Conflicted Employment at a time when you
continue to hold Outstanding One time RSUs;

then, in the case of Paragraph 9(g)(i) above, the condition set forth in Paragraph 4(a) shall be
waived with respect to any One time RSUs you then hold that had not yet become Vested (as a result
of which such One time RSUs shall become Vested) and, in the cases of Paragraph 9(g)(i) and
9(g)(ii) above, at the sole discretion of the Firm, you shall receive either a lump sum cash
payment or delivery of the Shares underlying your then Vested Outstanding One time RSUs, in each
case as soon as practicable after the Committee has received satisfactory documentation relating to
your Conflicted Employment. Notwithstanding anything else herein, One time RSUs shall become
Vested and payment or delivery as a result of this Paragraph shall be made only at such time and if
and to the extent as would not result in the imposition of any additional tax under Section 409A of
the Code.

10.          Right of Offset. The obligation to deliver Shares under this Award Agreement is
subject to Section 3.4 of the Plan, which provides for the Firm’s right to offset against such
obligation any outstanding amounts you owe to the Firm and any amounts the Committee deems
appropriate pursuant to any tax equalization policy or agreement.

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

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

13.          Non-transferability. Except as otherwise may be provided by the Committee, the
limitations on transferability set forth in Section 3.5 of the Plan shall apply to this Award. Any
purported transfer or assignment in violation of the provisions of this Paragraph 13 or Section 3.5
of the Plan shall be void.

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

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15.          Delay in Payment. To the extent required in order to avoid the imposition of any
interest and/or additional tax under Section 409A(a)(1)(B) of the Code, any payments or deliveries
due as a result a your termination of Employment with the Firm may be delayed for six months if you
are deemed to be a “specified employee” as defined in Section 409A(a)(2)(i)(B) of the Code.

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

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

	 	 	 	 	 	 	 	 	 
	 	 	THE GOLDMAN SACHS GROUP, INC.	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	Title:
	 	 	 	 

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