Document:

EX-4.2

Exhibit 4.2

[FORM
OF WARRANT TO PURCHASE COMMON STOCK]

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.

THIS INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE RESTRICTIONS ON TRANSFER AND OTHER
PROVISIONS OF A SECURITIES PURCHASE AGREEMENT, DATED AS OF SEPTEMBER 29, 2008, BETWEEN THE ISSUER
OF THESE SECURITIES AND THE INVESTOR REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE
ISSUER. THE SECURITIES REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
EXCEPT IN COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH SAID
AGREEMENT WILL BE VOID.

WARRANT No. _______

to purchase

______________________

Shares of Common Stock

THE GOLDMAN SACHS GROUP, INC.

a Delaware Corporation

Issue Date: October 1, 2008

     1. Definitions. Unless the context otherwise requires, when used herein the following
terms shall have the meanings indicated.

     “Affiliate” has the meaning ascribed to it in the Purchase Agreement.

     “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the
Corporation and one by the Warrantholder (or if there is more than one Warrantholder, a majority in
interest of Warrantholders), shall mutually agree upon the determinations then the subject of
appraisal. Each party shall deliver a notice to the other appointing its appraiser within 15 days
after the Appraisal Procedure is invoked. If within 30 days after appointment of the two
appraisers they are unable to agree upon the amount in question, a third independent appraiser
shall be chosen within 10 days thereafter by the mutual consent of such first two appraisers or, if
such two first appraisers fail to agree upon the appointment of a third appraiser, such appointment
shall be made by the American Arbitration Association, or any organization successor thereto, from
a panel of arbitrators having experience in appraisal of the subject matter to be appraised. The
decision of the third appraiser so appointed and chosen shall be given within 30
days after the selection of such third appraiser. If three appraisers shall be

 

 

appointed and
the determination of one appraiser is disparate from the middle determination by more than twice
the amount by which the other determination is disparate from the middle determination, then the
determination of such appraiser shall be excluded, the remaining two determinations shall be
averaged and such average shall be binding and conclusive upon the Corporation and the
Warrantholder; otherwise, the average of all three determinations shall be binding upon the
Corporation and the Warrantholder. The costs of conducting any Appraisal Procedure shall be borne
equally by the Corporation and the Warrantholder.

     “Beneficially Own” or “Beneficial Owner” has the meaning ascribed to it in the Purchase
Agreement.

     “Board of Directors” means the board of directors of the Corporation, including any duly
authorized committee thereof.

     “Business Combination” means a merger, consolidation, statutory share exchange or similar
transaction that requires the approval of the Corporation’s stockholders.

     “business day” means any day except Saturday, Sunday and any day which shall be a legal
holiday or a day on which banking institutions in the State of New York generally are authorized or
required by law or other governmental actions to close.

     “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and
all shares, interests, participations or other equivalents (however designated) of capital or
capital stock of such Person and (B) with respect to any Person that is not a corporation or
company, any and all partnership or other equity interests of such Person.

     “Common Stock” means the Corporation’s voting Common Stock, $0.01 par value per share.

     “Corporation” means The Goldman Sachs Group, Inc., a Delaware corporation.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     “Exercise Price” means $115.

     “Expiration Time” has the meaning set forth in Section 3.

     “Fair Market Value” means, with respect to any security or other property, the fair market
value of such security or other property as determined by the Board of Directors, acting in good
faith. If the Warrantholder objects in writing to the Board of Director’s calculation of fair
market value within 10 days of receipt of
written notice thereof and the Warrantholder and the Corporation are unable to agree

-2-

 

on fair market value during the 10-day period following the delivery of the Warrantholder’s objection, the
Appraisal Procedure may be invoked by either party to determine Fair Market Value by delivering
written notification thereof not later than the 30th day after delivery of the
Warrantholder’s objection.

     “Governmental Entities” has the meaning ascribed to it in the Purchase Agreement.

     “Market Price” means, with respect to the Common Stock, on any given day, the last sale price,
regular way, or, in case no such sale takes place on such day, the average of the closing bid and
asked prices, regular way, of the shares of the Common Stock on the New York Stock Exchange on such
day. If the Common Stock is not traded on the New York Stock Exchange on any date of
determination, the Market Price of the Common Stock on such date of determination means the closing
sale price as reported in the composite transactions for the principal U.S. national or regional
securities exchange on which the Common Stock is so listed or quoted, or, if no closing sale price
is reported, the last reported sale price on the principal U.S. national or regional securities
exchange on which the Common Stock is so listed or quoted, or if the Common Stock is not so listed
or quoted on a U.S. national or regional securities exchange, the last quoted bid price for the
Common Stock in the over-the-counter market as reported by Pink Sheets LLC or similar
organization, or, if that bid price is not available, the Market Price of the Common Stock on that
date shall mean the Fair Market Value per share as determined by the Board of Directors in reliance
on an opinion of a nationally recognized independent investment banking firm retained by the
Corporation for this purpose and certified in a resolution sent to the Warrantholder. For the
purposes of determining the Market Price of the Common Stock on the “trading day” preceding, on or
following the occurrence of an event, (i) that trading day shall be deemed to commence immediately
after the regular scheduled closing time of trading on the New York Stock Exchange or, if trading
is closed at an earlier time, such earlier time and (ii) that trading day shall end at the next
regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for
the avoidance of doubt, and as an example, if the Market Price is to be determined as of the last
trading day preceding a specified event and the closing time of trading on a particular day is 4:00
p.m. and the specified event occurs at 5:00 p.m. on that day, the Market Price would be determined
by reference to such 4:00 p.m. closing price).

     “Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock
out of surplus or net profits legally available therefor (determined in accordance with generally
accepted accounting principles in effect from time to time), provided that Ordinary Cash Dividends
shall not include any cash dividends paid subsequent to August 29, 2008 to the extent the aggregate
dividend paid on all Common Stock in any quarter, when declared, exceeds the greater of (i) the
aggregate dividend that would be paid on all Common Stock in that quarter at a rate of $0.35 per
share (such amount per share increased by 10% on August 31, 2009 and each subsequent August 31) or
(ii) (x) 80% of accumulated earnings since August 29, 2008 (determined in accordance with generally
accepted accounting
principles in effect from time to time) less (y) the amount of aggregate dividends on

-3-

 

Common Stock and on all preferred stock of the Corporation that is classified as equity under such
generally accepted accounting principles paid since August 29, 2008.

     “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

     “Per Share Fair Market Value” has the meaning set forth in Section 13(C).

     “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Corporation or any
Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available
to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash,
shares of Capital Stock of the Corporation, other securities of the Corporation, evidences of
indebtedness of the Corporation or any other Person or any other property (including, without
limitation, shares of Capital Stock, other securities or evidences of indebtedness of a
subsidiary), or any combination thereof, effected while this Warrant is outstanding. The “Effective
Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange
by the Corporation under any tender or exchange offer which is a Pro Rata Repurchase or the date of
purchase with respect to any Pro Rata Purchase that is not a tender or exchange offer.

     “Purchase Agreement” means the Securities Purchase Agreement, dated as of September 29, 2008,
as amended from time to time, between the Corporation and Berkshire Hathaway Inc., including all
schedules and exhibits thereto.

     “Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and
required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own
such Common Stock without the Warrantholder being in violation of applicable law, rule or
regulation, the receipt of any necessary approvals and authorizations of, filings and registrations
with, notifications to, or expiration or termination of any applicable waiting period under, the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
thereunder.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

     “Shares” has the meaning set forth in Section 2.

     “Warrantholder” has the meaning set forth in Section 2.

     “Warrant” means this Warrant, issued pursuant to the Purchase Agreement.

-4-

 

     2. Number of Shares; Exercise Price. This certifies that, for value received,
___or its permitted assigns (the “Warrantholder”) is entitled, upon the
terms and subject to the conditions hereinafter set forth, to acquire from the Corporation, in
whole or in part, after the receipt of all applicable Regulatory Approvals, up to an aggregate of
___fully paid and nonassessable shares of Common Stock, at a purchase price per share of
Common Stock equal to the Exercise Price, provided, however, if the Warrantholder provides a
certificate in a form satisfactory to the Corporation representing that Warrantholder is acquiring
such shares of Common Stock in reliance upon the exemption provided in Section 802.9 or Section
802.64 of the rules promulgated under the HSR Act, the Warrantholder may exercise such Warrants
without filing any notification and report forms under the HSR Act. The number of shares of Common
Stock (the “Shares”) and the Exercise Price are subject to adjustment as provided herein, and all
references to “Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to include any
such adjustment or series of adjustments.

     3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Corporation on the date hereof, but in no event later
than 5:00 p.m., New York City time, October 1, 2013 (the “Expiration Time”), by (A) the surrender
of this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the
Warrantholder, at the principal executive office of the Corporation located at 85 Broad Street, New
York, NY 10004 (or such other office or agency of the Corporation in the United States as it may
designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing
on the books of the Corporation), and (B) payment of the Exercise Price for the Shares thereby
purchased at the election of the Warrantholder by tendering in cash, by certified or cashier’s
check payable to the order of the Corporation, or by wire transfer of immediately available funds
to an account designated by the Corporation.

     If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be
entitled to receive from the Corporation within a reasonable time, and in any event not exceeding
three business days, a new warrant in substantially identical form for the purchase of that number
of Shares equal to the difference between the number of Shares subject to this Warrant and the
number of Shares as to which this Warrant is so exercised. Notwithstanding anything in this Warrant
to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant
for Shares is subject to the condition that the Warrantholder will have first received any
applicable Regulatory Approvals.

     4. Issuance of Shares; Authorization; Listing. Certificates for Shares issued upon
exercise of this Warrant will be issued in such name or names as the Warrantholder may designate
and will be delivered to such named Person or Persons within a reasonable time, not to exceed three
business days after the date on which this Warrant has been duly exercised in accordance with the
terms of this Warrant. The Corporation hereby represents and warrants that any Shares issued

-5-

 

upon the exercise of this Warrant in accordance with the provisions of Section 3 will be duly
and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and
charges (other than liens or charges created by the Warrantholder, except as otherwise provided
herein, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes
in respect of any transfer occurring contemporaneously therewith). The Corporation agrees that the
Shares so issued will be deemed to have been issued to the Warrantholder as of the close of
business on the date on which this Warrant and payment of the Exercise Price are delivered to the
Corporation in accordance with the terms of this Warrant, notwithstanding that the stock transfer
books of the Corporation may then be closed or certificates representing such Shares may not be
actually delivered on such date. The Corporation will at all times reserve and keep available, out
of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise
of this Warrant, the aggregate number of shares of Common Stock issuable upon exercise of this
Warrant. The Corporation will (A) procure, at its sole expense, the listing of the Shares issuable
upon exercise of this Warrant, subject to issuance or notice of issuance, on all principal stock
exchanges on which the Common Stock is then listed or traded and (B) maintain such listings of such
Shares at all times after issuance. The Corporation will use reasonable best efforts to ensure that
the Shares may be issued without violation of any applicable law or regulation or of any
requirement of any securities exchange on which the Shares are listed or traded. The Corporation
and the Warrantholder will reasonably cooperate to take such other actions as are necessary to
obtain (i) any Regulatory Approvals applicable to Warrantholder’s exercise of its rights hereunder,
including with respect to the issuance of the Shares and (ii) any regulatory approvals applicable
to the Corporation solely as a result of the issuance of the Shares. Before taking any action
which would cause an adjustment pursuant to Section 13 to reduce the Exercise Price below the then
par value (if any) of the Common Stock, the Corporation shall take any and all corporate action
which may, in the opinion of its counsel, be necessary in order that the Corporation may validly
and legally issue fully paid and non-assessable shares of Common Stock at the Exercise Price as so
adjusted.

     5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional
Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled
to receive a cash payment equal to the Market Price of the Common Stock on the last trading day
preceding the date of exercise less the Exercise Price for such fractional share.

     6. No Rights as Stockholders; Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder of the Corporation prior to the
date of exercise hereof. The Corporation will at no time close its transfer books against transfer
of this Warrant in any manner which interferes with the timely exercise of this Warrant.

     7. Charges, Taxes and Expenses. Issuance of certificates for Shares to the
Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in

-6-

 

respect of the issuance of such certificates, all of which taxes and expenses shall be paid by
the Corporation.

     8. Transfer/Assignment.

     (A) Subject to compliance with clauses (B) and (C) of this Section 8, this Warrant and all
rights hereunder are transferable, in whole or in part, upon the books of the Corporation by the
registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made
and delivered by the Corporation, of the same tenor and date as this Warrant but registered in the
name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or
agency of the Corporation described in Section 3. All expenses (other than stock transfer taxes)
and other charges payable in connection with the preparation, execution and delivery of the new
warrants pursuant to this Section 8 shall be paid by the Corporation.

     (B) Notwithstanding the foregoing, this Warrant and any rights hereunder, and any Shares
issued upon exercise of this Warrant, shall be subject to the applicable restrictions as set forth
in Section 4.3 of the Purchase Agreement.

     (C) If and for so long as required by the Purchase Agreement, this Warrant Certificate shall
contain a legend as set forth in Section 4.5 of the Purchase Agreement.

     9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender
hereof by the Warrantholder to the Corporation, for a new warrant or warrants of like tenor and
representing the right to purchase the same aggregate number of Shares. The Corporation shall
maintain a registry showing the name and address of the Warrantholder as the registered holder of
this Warrant. This Warrant may be surrendered for exchange or exercise, in accordance with its
terms, at the office of the Corporation, and the Corporation shall be entitled to rely in all
respects, prior to written notice to the contrary, upon such registry.

     10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Corporation of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation
of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond,
indemnity or security reasonably satisfactory to the Corporation, or, in the case of any such
mutilation, upon surrender and cancellation of this Warrant, the Corporation shall make and
deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
and representing the right to purchase the same aggregate number of Shares as provided for in such
lost, stolen, destroyed or mutilated Warrant.

     11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day,
then such action may be taken or such right may be exercised on the next succeeding day that is a
business day.

-7-

 

     12. Rule 144 Information. The Corporation covenants that it will use its reasonable
best efforts to timely file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder
(or, if the Corporation is not required to file such reports, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to
Rule 144 or Regulation S under the Securities Act), and it will use reasonable best efforts to take
such further action as any Warrantholder may reasonably request, in each case to the extent
required from time to time to enable such holder to, if permitted by the terms of this Warrant and
the Purchase Agreement, sell this Warrant without registration under the Securities Act within the
limitation of the exemptions provided by (A) Rule 144 or Regulation S under the Securities Act, as
such rules may be amended from time to time, or (B) any successor rule or regulation hereafter
adopted by the SEC. Upon the written request of any Warrantholder, the Corporation will deliver to
such Warrantholder a written statement that it has complied with such requirements.

     13. Adjustments and Other Rights. The Exercise Price and the number of Shares
issuable upon exercise of this Warrant shall be subject to adjustment from time to time as follows;
provided, that if more than one subsection of this Section 13 is applicable to a single event, the
subsection shall be applied that produces the largest adjustment and no single event shall cause an
adjustment under more than one subsection of this Section 13 so as to result in duplication:

     (A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Corporation
shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record
date for such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be proportionately adjusted so that the Warrantholder after such date shall
be entitled to purchase the number of shares of Common Stock which such holder would have owned or
been entitled to receive in respect of the shares of Common Stock subject to this Warrant after
such date had this Warrant been exercised immediately prior to such date. In such event, the
Exercise Price in effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be adjusted to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this
Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record
or effective date, as the case may be, for the dividend, distribution, subdivision, combination or
reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon
exercise of the Warrant determined pursuant to the immediately preceding sentence.

     (B) Certain Issuances of Common Shares or Convertible Securities. If the Corporation
shall issue shares of Common Stock (or rights or warrants or other

-8-

 

securities exercisable or convertible into or exchangeable (collectively, a “conversion”) for
shares of Common Stock) (collectively, “convertible securities”) (other than in Permitted
Transactions or a transaction to which subsection (A) of this Section 13 is applicable) without
consideration or at a consideration per share (or having a conversion price per share) that is less
than 95% of the Market Price on the last trading day preceding the date of the agreement on pricing
such shares (or such convertible securities) then, in such event:

(A) the number of Shares issuable upon the exercise of this Warrant immediately
prior to the date of the agreement on pricing of such shares (or of such convertible
securities) (the “Initial Number”) shall be increased to the number obtained by
multiplying the Initial Number by a fraction (A) the numerator of which shall be the
sum of (x) the number of shares of Common Stock of the Corporation outstanding on
such date and (y) the number of additional shares of Common Stock issued (or into
which convertible securities may be exercised or convert) and (B) the denominator of
which shall be the sum of (I) the number of shares of Common Stock outstanding on
such date and (II) the number of shares of Common Stock which the aggregate
consideration receivable by the Corporation for the total number of shares of Common
Stock so issued (or into which convertible securities may be exercised or convert)
would purchase at the Market Price on the last trading day preceding the date of the
agreement on pricing such shares (or such convertible securities); and

(B) the Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price in effect immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) by a
fraction, the numerator of which shall be the number of shares of Common Stock
issuable upon exercise of this Warrant prior to such date and the denominator of
which shall be the number of shares of Common Stock issuable upon exercise of this
Warrant immediately after the adjustment described in clause (A) above.

     For purposes of the foregoing, the aggregate consideration receivable by the Corporation in
connection with the issuance of such shares of Common Stock or convertible securities shall be
deemed to be equal to the sum of the net offering price (after deduction of any related expenses
payable to third parties) of all such securities plus the minimum aggregate amount, if any, payable
upon exercise or conversion of any such convertible securities into shares of Common Stock; and
“Permitted Transactions” shall include issuances (i) as consideration for or to fund the
acquisition of businesses and/or related assets, (ii) in connection with employee benefit plans and
compensation related arrangements approved by the Board of Directors and (iii) in connection with a
broadly marketed offering and sale of Common Stock or convertible securities for cash conducted by
the Corporation or its affiliates on a basis consistent with the practice of the Corporation’s
investment banking affiliates for capital raising transactions by financial institutions. Any
adjustment

-9-

 

made pursuant to this Section 13(B) shall become effective immediately upon the date of such
issuance

     (C) Other Distributions. In case the Corporation shall fix a record date for the
making of a distribution to all holders of shares of its Common Stock of securities, evidences of
indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its
Common Stock and other dividends or distributions referred to in Section 13(A)), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to
the price determined by multiplying the Exercise Price in effect immediately prior to the reduction
by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the
first date on which the Common Stock trades regular way on the New York Stock Exchange without the
right to receive such distribution, minus the amount of cash or the Fair Market Value of the
securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect
of one share of Common Stock (the “Per Share Fair Market Value”) divided by (y) such Market Price
on such date specified in clause (x); such adjustment shall be made successively whenever such a
record date is fixed. In such event, the number of Shares issuable upon the exercise of this
Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of
Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise
Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new
Exercise Price determined in accordance with the immediately preceding sentence. In the case of
adjustment for a cash dividend that is, or is coincident with, a regular quarterly dividend, the
Per Share Fair Market Value would be reduced by the per share amount of the portion of the cash
dividend that would constitute an Ordinary Cash Dividend. In the event that such distribution is
not so made, the Exercise Price and the number of Shares issuable upon exercise of this Warrant
then in effect shall be readjusted, effective as of the date when the Board of Directors determines
not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the
case may be, to the Exercise Price that would then be in effect and the number of Shares that would
then be issuable upon exercise of this Warrant if such record date had not been fixed.

     (D) Certain Repurchases of Common Stock. In case the Corporation effects a Pro Rata
Repurchase of Common Stock, then the Exercise Price shall be adjusted to the price determined by
multiplying the Exercise Price in effect immediately prior to the effective date of such Pro Rata
Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of
shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market
Price of a share of Common Stock on the trading day immediately preceding the first public
announcement by the Corporation or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the
denominator shall be the product of (i) the number of shares of Common Stock outstanding
immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement by the Corporation or any of its Affiliates of the intent
to effect

-10-

 

such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon
the exercise of this Warrant shall be adjusted to the number obtained by dividing (x) the product
of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and
(2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this
adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding
sentence.

     (E) Business Combinations. In case of any Business Combination or reclassification of
Common Stock (other than a reclassification of Common Stock referred to in Section 13(A)), the
Warrantholder’s right to receive Shares upon exercise of this Warrant shall be converted into the
right to exercise this Warrant to acquire the number of shares of stock or other securities or
property (including cash) which the Common Stock issuable (at the time of such Business Combination
or reclassification) upon exercise of this Warrant immediately prior to such Business Combination
or reclassification would have been entitled to receive upon consummation of such Business
Combination or reclassification; and in any such case, if necessary, the provisions set forth
herein with respect to the rights and interests thereafter of the Warrantholder shall be
appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the
Warrantholder’s right to exercise this Warrant in exchange for any shares of stock or other
securities or property pursuant to this paragraph. In determining the kind and amount of stock,
securities or the property receivable upon exercise of this Warrant following the consummation of
such Business Combination, if the holders of Common Stock have the right to elect the kind or
amount of consideration receivable upon consummation of such Business Combination, then the
Warrantholder shall have the right to make a similar election (including, without limitation, being
subject to similar proration constraints) upon exercise of this Warrant with respect to the number
of shares of stock or other securities or property which the Warrantholder will receive upon
exercise of this Warrant.

     (F) Rounding of Calculations; Minimum Adjustments. All calculations under this
Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the
contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares into which
this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01
or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and
an adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward,
shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

     (G) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any
case in which the provisions of this Section 13 shall require that an adjustment shall become
effective immediately after a record date for an event, the Corporation may defer until the
occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such
record date and before the occurrence of such event the additional shares of Common Stock issuable
upon such

-11-

 

exercise by reason of the adjustment required by such event over and above the shares of
Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to
such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided,
however, that the Corporation upon request shall deliver to such Warrantholder a due bill or other
appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and
such cash, upon the occurrence of the event requiring such adjustment.

     (H) Statement Regarding Adjustments. Whenever the Exercise Price or the number of
Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the
Corporation shall forthwith file at the principal office of the Corporation a statement showing in
reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in
effect and the number of Shares into which this Warrant shall be exercisable after such adjustment,
and the Corporation shall also cause a copy of such statement to be sent by mail, first class
postage prepaid, to each Warrantholder at the address appearing in the Corporation’s records.

     (I) Notice of Adjustment Event. In the event that the Corporation shall propose to
take any action of the type described in this Section 13 (but only if the action of the type
described in this Section 13 would result in an adjustment in the Exercise Price or the number of
Shares into which this Warrant is exercisable or a change in the type of securities or property to
be delivered upon exercise of this Warrant), the Corporation shall give notice to the
Warrantholder, in the manner set forth in Section 13(G), which notice shall specify the record
date, if any, with respect to any such action and the approximate date on which such action is to
take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably
necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or
other securities or property which shall be deliverable upon exercise of this Warrant. In the case
of any action which would require the fixing of a record date, such notice shall be given at least
10 days prior to the date so fixed, and in case of all other action, such notice shall be given at
least 15 days prior to the taking of such proposed action. Failure to give such notice, or any
defect therein, shall not affect the legality or validity of any such action.

     (J) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to
the taking of any action which would require an adjustment pursuant to this Section 13, the
Corporation shall take any action which may be necessary, including obtaining regulatory, New York
Stock Exchange or stockholder approvals or exemptions, in order that the Corporation may thereafter
validly and legally issue as fully paid and nonassessable all shares of Common Stock that the
Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

     (K) Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made
successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price
made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock,
then such adjustment in Exercise

-12-

 

Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

     14. Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed entirely
within such State. Each of the parties hereto agrees (a) to submit to the non-exclusive personal
jurisdiction of the State or Federal courts in the Borough of Manhattan, The City of New York, (b)
that non-exclusive jurisdiction and venue shall lie in the State or Federal courts in the State of
New York, and (c) that notice may be served upon such party at the address and in the manner set
forth for such party in Section 3 hereof. To the extent permitted by applicable law, each of the
parties hereto hereby unconditionally waives trial by jury in any legal action or proceeding
relating to the Transaction Documents or the transactions contemplated hereby or thereby.

     15. Binding Effect. This Warrant shall be binding upon any successors or assigns of
the Corporation.

     16. Amendments. This Warrant may be amended and the observance of any term of this
Warrant may be waived only with the written consent of the Corporation and the Warrantholder.

     17. Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such notice.

	 	 	 	 	 
	If to the Corporation, to:
	 
	 	 	 	 
	The Goldman Sachs Group, Inc.
	85 Broad Street
	New York, NY 10004
	Attention:	 	General Counsel
	Telephone:	 	(212) 902-1000
	Fax:	 	(212) 902-3876
	 
	 	 	 	 
	with a copy to (which copy alone shall not constitute notice):
	 
	 	 	 	 
	Sullivan & Cromwell LLP
	125 Broad Street
	New York, New York 10004
	Attn:	 	John P. Mead

-13-

 

	 	 	 	 	 
	Telephone:	 	(212) 558-4000
	Fax:	 	(212) 558-3588

     18. Entire Agreement. This Warrant and the forms attached hereto, and the Purchase
Agreement (and the other documents referenced in Section 5.7 of the Purchase Agreement), contain
the entire agreement between the parties with respect to the subject matter hereof and supersede
all prior and contemporaneous arrangements or undertakings with respect thereto.

[Remainder of page intentionally left blank]

-14-

 

[Form of Notice of Exercise]

Date: _________

TO: The Goldman Sachs Group, Inc.

RE: Election to Purchase Common Stock

     The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees
to subscribe for and purchase the number of shares of the Common Stock set forth below covered by
such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay
the aggregate Exercise Price for such shares of Common Stock. A new warrant evidencing the
remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased,
if any, should be issued in the name set forth below.

Number of Shares of Common Stock: ____________________

Aggregate Exercise Price: ___________________________]

	 	 	 	 	 
	Holder:	 	______________________________________________
	 
	 	 	 	 
	By:	 	______________________________________________
	 
	 	 	 	 
	Name:	 	______________________________________________
	 
	 	 	 	 
	Title:	 	______________________________________________

-15-

 

     IN WITNESS WHEREOF, the Corporation has caused this Warrant to be duly executed by a duly
authorized officer.

Dated: October 1, 2008

	 	 	 	 	 
	 	THE GOLDMAN SACHS GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Attest:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Warrant]EX-10.1

Exhibit 10.1

 

 

Securities Purchase Agreement

Dated September 29, 2008

between

The Goldman Sachs Group, Inc.

and

Berkshire Hathaway inc.

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Recitals	 	 	1	 
	 	 	 
	 	 	 	 
	Article I

	 	 	 
	 	 	 	 
	Purchase; Closing

	 	 	 
	 	 	 	 
	1.1	 	Purchase
	 	 	1	 
	1.2	 	Closing
	 	 	1	 
	1.3	 	Interpretation
	 	 	3	 
	 	 	 
	 	 	 	 
	Article II

	 	 	 
	 	 	 	 
	Representations and Warranties

	 	 	 
	 	 	 	 
	2.1	 	Disclosure
	 	 	3	 
	2.2	 	Representations and Warranties of the Company
	 	 	4	 
	2.3	 	Representations and Warranties of the Investor
	 	 	8	 
	 	 	 
	 	 	 	 
	Article III

	 	 	 
	 	 	 	 
	Covenants

	 	 	 
	 	 	 	 
	3.1	 	Commercially Reasonable Efforts
	 	 	9	 
	3.2	 	Expenses
	 	 	10	 
	3.3	 	Sufficiency of Authorized Voting Common Stock
	 	 	10	 
	3.4	 	Certain Notifications Until Closing
	 	 	10	 
	 	 	 
	 	 	 	 
	Article IV

	 	 	 
	 	 	 	 
	Additional Agreements

	 	 	 
	 	 	 	 
	4.1	 	Bank Holding Company Act
	 	 	10	 
	4.2	 	Ownership
	 	 	11	 
	4.3	 	Transfer Restrictions
	 	 	12	 
	4.4	 	Purchase for Investment
	 	 	13	 
	4.5	 	Legend
	 	 	14	 
	4.6	 	Information Rights
	 	 	14	 
	4.7	 	Spin-off Transactions
	 	 	15	 

-i-

 

	 	 	 	 	 	 	 
	Article V

	 	 	 
	 	 	 	 
	Miscellaneous

	 	 	 
	 	 	 	 
	5.1	 	Termination
	 	 	16	 
	5.2	 	Amendment
	 	 	17	 
	5.3	 	Waiver of Conditions
	 	 	17	 
	5.4	 	Counterparts and Facsimile
	 	 	17	 
	5.5	 	Governing
Law; Submission to Jurisdiction, Etc.
	 	 	17	 
	5.6	 	Notices
	 	 	17	 
	5.7	 	Entire
Agreement, Etc.
	 	 	18	 
	5.8	 	Definitions of “subsidiary” and “Affiliate”
	 	 	18	 
	5.9	 	Assignment
	 	 	19	 
	5.10	 	Severability
	 	 	19	 
	5.11	 	No Third Party Beneficiaries
	 	 	19	 

ii

 

LIST OF ANNEXES

	 	 	 
	ANNEX A:

	 	FORM OF CERTIFICATE OF DESIGNATIONS
	 
	 	 
	ANNEX B:

	 	FORM OF WARRANT
	 
	 	 
	ANNEX C:

	 	FORM OF REGISTRATION RIGHTS AGREEMENT

iii

 

INDEX OF DEFINED TERMS

	 	 	 
	Term	 	Location of Definition
	Affiliate
	 	5.8(b)
	Agreement
	 	Preamble
	Bankruptcy Exceptions
	 	2.2(e)(i)
	Beneficial Ownership; Beneficial Owner; Beneficially Own
	 	2.3(c)
	BHCA
	 	4.1
	BHCA Registration
	 	4.1
	business day
	 	1.3
	Common Stock Capitalization Date
	 	2.2(b)
	Certificate of Designations
	 	1.2(e)(ii)
	Closing
	 	1.2(a)
	Closing Date
	 	1.2(a)
	Commission
	 	2.1(b)
	Common Stock
	 	Recital A
	Company
	 	Preamble
	Exchange Act
	 	2.1(b)
	GAAP
	 	2.1(a)
	Governmental Entities
	 	1.2(c)
	Hedging Transaction
	 	4.3(d)
	IFRS
	 	2.1(a)
	Investor
	 	Preamble
	Investor Material Adverse Effect
	 	2.3(b)(ii)
	Material Adverse Effect
	 	2.1(a)
	Nonvoting Common Stock
	 	Recital A
	NYSE
	 	3.3
	Permitted Transferee
	 	4.3(c)
	Preferred Shares
	 	Recital B
	Preferred Stock
	 	Recital A
	Previously Disclosed
	 	2.1(b)
	Purchase
	 	1.1
	Purchased Securities
	 	Recital B
	QIBs
	 	4.1
	Registration Rights Agreement
	 	1.2(e)(v)
	RSUs
	 	2.2(b)
	SEC Reports
	 	2.1(b)
	Securities Act
	 	2.2(a)
	Significant Subsidiary; Significant Subsidiaries
	 	2.2(a)
	subsidiary
	 	5.8(a)
	Transaction Documents
	 	2.1(b)
	Transfer
	 	4.3(a)
	Voting Cap
	 	4.2
	Voting Common Stock
	 	Recital A
	Warrant
	 	Recital B
	Warrant Shares
	 	2.2(d)

iv

 

     Securities Purchase Agreement, dated September 29, 2008 (this “Agreement”), between
The Goldman Sachs Group, Inc., a Delaware corporation (the “Company”), and Berkshire Hathaway Inc.,
a Delaware corporation (the “Investor”).

Recitals:

     A. The Company. As of the date hereof, the Company has 4,000,000,000 authorized
shares of Common Stock, $0.01 par value per share (“Voting Common Stock”), 200,000,000 authorized
shares of Nonvoting Common Stock, $0.01 par value per share (the “Nonvoting Common Stock” and,
together with the Voting Common Stock, the “Common Stock”), and 150,000,000 authorized shares of
Preferred Stock, $0.01 par value per share (“Preferred Stock”).

     B. The Issuance. The Company intends to issue in a private placement 50,000 shares of
its 10% Cumulative Perpetual Preferred Stock, Series G (the “Preferred Shares”) and a warrant to
purchase 43,478,260 shares of its Voting Common Stock (the “Warrant” and, together with the
Preferred Shares, the “Purchased Securities”) and the Investor intends to purchase from the Company
the Purchased Securities.

     NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, the parties agree as follows:

Article I

Purchase; Closing

     1.1 Purchase. On the terms and subject to the conditions set forth in this Agreement,
the Company agrees to sell to the Investor, and the Investor agrees to purchase from the Company,
at the Closing (as hereinafter defined), the Purchased Securities for an aggregate purchase price
of $5,000,000,000 (the “Purchase”).

     1.2 Closing.

     (a) On the terms and subject to the conditions set forth in this Agreement, the closing of the
Purchase (the “Closing”) will take place at the offices of Sullivan & Cromwell LLP, 125 Broad
Street, New York, New York 10004, at 9:00 a.m., New York time, on October 1, 2008 or as soon as
practicable thereafter, or at such other place, time and date as shall be agreed between the
Company and the Investor. The time and date on which the Closing occurs is referred to in this
Agreement as the “Closing Date”.

     (b) Subject to the fulfillment or waiver of the conditions to the Closing in this Section 1.2,
at the Closing, the Company will deliver the Preferred Shares and the Warrant, in each case as
evidenced by one or more certificates dated the Closing Date and bearing appropriate legends as
hereinafter provided for,

 

 

in exchange for payment in full of the aggregate purchase price therefor by wire transfer of
immediately available United States funds to a bank account that has been designated by the Company
at least two (2) business days prior to the Closing Date.

     (c) The respective obligations of each of the Investor and the Company to consummate the
Purchase are subject to the fulfillment (or waiver by the Investor and the Company, as applicable)
prior to the Closing of the condition that (i) any approvals or authorizations of all United States
and other governmental or regulatory authorities (collectively, “Governmental Entities”), the
absence of which would reasonably be expected to make the Purchase unlawful, shall have been
obtained or made in form and substance reasonably satisfactory to each party and shall be in full
force and effect and all waiting periods required by United States and other applicable law shall
have expired and (ii) no provision of any applicable United States or other law and no judgment,
injunction, order or decree of any Governmental Entity shall prohibit the purchase and sale of the
Purchased Securities.

     (d) The obligation of the Company to consummate the Closing is also subject to the fulfillment
(or waiver by the Company) at or prior to the Closing of each of the following conditions:

     (i) (A) the representations and warranties of the Investor set forth in this Agreement
shall be true and correct as though made on and as of the Closing Date (other than
representations and warranties that by their terms speak as of another date, which
representations and warranties shall be true and correct as of such date), except to the
extent that the failure of such representations and warranties to be so true and correct,
individually or in the aggregate, does not have and would not be reasonably likely to have
an Investor Material Adverse Effect and (B) the Investor shall have performed in all
material respects all obligations required to be performed by it under this Agreement at or
prior to the Closing.

     (e) The obligation of the Investor to consummate the Closing is also subject to the
fulfillment (or waiver by the Investor) at or prior to the Closing of each of the following
conditions:

     (i) (A) the representations and warranties of the Company set forth in (x) Section
2.2(g) of this Agreement shall be true and correct in all respects as though made on and as
of the Closing Date and (y) Section 2.2 (other than Section 2.2(g)) shall be true and
correct as though made on and as of the Closing Date (other than representations and
warranties that by their terms speak as of another date, which representations and
warranties shall be true and correct as of such date), except to the extent that the
failure of such representations and warranties referred to in this Section 1.2(i)(y) to be
so true and correct, individually or in the aggregate, does not have and would not be
reasonably likely to have a Material Adverse Effect and (B) the Company shall have
performed in all material respects all obligations required to be performed by it under
this Agreement at or prior to the Closing;

-2-

 

     (ii) the Company shall have duly adopted and filed with the Secretary of State of the
State of Delaware the Certificate of Designations in substantially the form attached hereto
as Annex A (the “Certificate of Designations”) and such filing shall have been
accepted;

     (iii) the Company shall have delivered the Preferred Shares to Investor or its
designee(s);

     (iv) the Company shall have duly executed and delivered the Warrant in substantially
the form attached hereto as Annex B to the Investor or its designee(s); and

     (v) the Company shall have duly executed and delivered to the Investor or its
designee(s) a Registration Rights Agreement (the “Registration Rights Agreement”) in
substantially the form of Annex C.

     1.3 Interpretation. When a reference is made in this Agreement to “Recitals,”
“Articles,” “Sections” or “Annexes,” such reference shall be to a Recital, Article or Section of,
or Annex to, this Agreement unless otherwise indicated. The terms defined in the singular have a
comparable meaning when used in the plural, and vice versa. References to “herein”, “hereof”,
“hereunder” and the like refer to this Agreement as a whole and not to any particular section or
provision, unless the context requires otherwise. The table of contents and headings contained in
this Agreement are for reference purposes only and are not part of this Agreement. Whenever the
words “include,” “includes” or “including” are used in this Agreement, they shall be deemed
followed by the words “without limitation.” No rule of construction against the draftsperson shall
be applied in connection with the interpretation or enforcement of this Agreement, as this
Agreement is the product of negotiation between sophisticated parties advised by counsel. All
references to “$” or “dollars” mean the lawful currency of the United States of America. Except as
expressly stated in this Agreement, all references to any statute, rule or regulation are to the
statute, rule or regulation as amended, modified, supplemented or replaced from time to time (and,
in the case of statutes, include any rules and regulations promulgated under the statute) and to
any section of any statute, rule or regulation include any successor to the section. References to
a “business day” shall mean a business day in the City of New York.

Article II

Representations and Warranties

     2.1 Disclosure.

     (a) “Material Adverse Effect” means a material adverse effect on (i) the business, results of
operation or financial condition of the Company and its consolidated subsidiaries taken as a whole;
provided, however, that Material Adverse Effect shall not be deemed to include the effects of (A)
any facts, circumstances, events, changes or occurrences generally affecting businesses, industries
and markets in which the Company operates (including, without limitation, changes generally in
prevailing interest rates, credit availability and

-3-

 

liquidity, currency exchange rates and price levels or trading volumes in the
United States or foreign markets), companies engaged in such businesses, industries or markets or
the economy, including effects on such businesses, industries, markets or economy resulting from
any regulatory or political conditions or developments, or any outbreak or escalation of
hostilities, declared or undeclared acts of war or terrorism, (B) a change to International
Financial Reporting Standards (“IFRS”) and/or changes or proposed changes in generally accepted
accounting principles in the United States (“GAAP”), IFRS or regulatory accounting requirements
applicable to broker-dealer or depository institutions and their holding companies generally (or
authoritative interpretations thereof), (C) changes or proposed changes in securities, banking and
other laws of general applicability or related policies or interpretations of Governmental Entities
(in the case of each of clause (A), (B) and (C), other than facts, circumstances, events, changes,
effects or occurrences that arise after the date of this Agreement but before the Closing to the
extent that such facts, circumstances, events, changes, effects or occurrences have a materially
disproportionate adverse effect on the Company and its consolidated subsidiaries relative to
comparable U.S. banking or financial services organizations), or (D) changes in the market price or
trading volume of the Voting Common Stock or any other equity, equity-related or debt securities of
the Company (it being understood and agreed that the exception set forth in this clause (D) does
not apply to the underlying reason giving rise to or contributing to any such change); or (ii) the
ability of the Company timely to consummate the Purchase and the other transactions contemplated by
the Transaction Documents.

     (b) “Previously Disclosed” means information set forth or incorporated in the Company’s Annual
Report on Form 10-K for the fiscal year ended November 30, 2007 or its other reports and forms
filed with the Securities and Exchange Commission (the “Commission”) under Sections 13(a), 14(a) or
15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) on or after December 1, 2007 (the
“SEC Reports”) and that are filed prior to the execution and delivery of this Agreement.

     Each party acknowledges that it is not relying upon any representation or warranty not set
forth in the Transaction Documents. The Investor acknowledges that it has had an opportunity to
conduct such review and analysis of the business, assets, condition, operations and prospects of
the Company and its subsidiaries, including an opportunity to ask such questions of management (for
which it has received such answers) and to review such information maintained by the Company, in
each case as the Investor considers sufficient for the purpose of making the Purchase. The
Investor further acknowledges that it has had such an opportunity to consult with its own counsel,
financial and tax advisers and other professional advisers as it believes is sufficient for
purposes of the Purchase. For purposes of this Agreement, the term “Transaction Documents” refers
collectively to this Agreement, the Warrant and the Registration Rights Agreement, in each case, as
amended, modified or supplemented from time to time in accordance with their respective terms.

     2.2 Representations and Warranties of the Company. Except as Previously Disclosed,
the Company represents and warrants to the Investor that as of the date hereof and as of the
Closing Date (or such other date specified herein):

-4-

 

     (a) Organization, Authority and Significant Subsidiaries. The Company has been duly
incorporated and is validly existing as a corporation in good standing under the laws of the State
of Delaware, with corporate power and authority to own its properties and conduct its business in
all material respects as currently conducted, and, except as has not had or would not be reasonably
likely to have a Material Adverse Effect, has been duly qualified as a foreign corporation for the
transaction of business and is in good standing under the laws of each other jurisdiction in which
it owns or leases properties, or conducts any business so as to require such qualification; each
subsidiary of the Company that is a “significant subsidiary” within the meaning of Rule 1-02(w) of
Regulation S-X under the Securities Act of 1933, as amended (the “Securities Act”) (individually a
“Significant Subsidiary” and collectively the “Significant Subsidiaries”) has been duly organized
and is validly existing in good standing under the laws of its jurisdiction of organization.

     (b) Capitalization. The authorized capital stock of the Company consists of
4,000,000,000 shares of Voting Common Stock of which, as of August 29, 2008 (the “Common Stock
Capitalization Date”), 632,949,974 shares were issued and 394,533,477 shares were outstanding, and
200,000,000 shares of Nonvoting Common Stock, of which no shares were issued or outstanding as of
the Capitalization Date, and 150,000,000 shares of Preferred Stock, of which, as of the date
hereof, (1) 50,000 shares are designated as “Floating Rate Non-Cumulative Preferred Stock, Series
A”, 30,000 shares of which were issued and outstanding, (2) 50,000 shares are designated as “6.20%
Fixed Rate Non-Cumulative Preferred Stock, Series B”, 32,000 shares of which were issued and
outstanding, (3) 25,000 shares are designated as “Floating Rate Non-Cumulative Preferred Stock,
Series C”, 8,000 shares of which were issued and outstanding, (4) 60,000 shares are designated as
“Floating Rate Non-Cumulative Preferred Stock, Series D”, 54,000 shares of which were issued and
outstanding, (5) 17,500.1 shares are designated as “Non-Cumulative Preferred Stock, Series E”, no
shares of which were issued and outstanding, (6) 5,000.1 shares are designated as “Non-Cumulative
Preferred Stock, Series F”, no shares of which were issued and outstanding. As of the Common Stock
Capitalization Date, the Company held 238,416,497 shares of Voting Common Stock in its treasury.
As of the Common Stock Capitalization Date, the Company had 54,721,122 Restricted Stock Units
(“RSUs”) outstanding, of which 33,573,599 RSUs were vested and 21,147,523 were unvested and
35,252,482 stock options outstanding, of which 26,142,271 were exercisable and 9,110,211 were
non-exercisable. The outstanding shares of Common Stock have been duly authorized and are validly
issued and outstanding, fully paid and nonassessable, and subject to no preemptive rights (and were
not issued in violation of any preemptive rights). Except as set forth above, or in the Company’s
Shareholder Protection Rights Plan, dated as of April 5, 1999, and in connection with the Warrant,
as of the date of this Agreement, there are no shares of Common Stock reserved for issuance, the
Company does not have outstanding any securities providing the holder the right to acquire Common
Stock, and the Company does not have any commitment to authorize, issue or sell any Common Stock.
The foregoing does not reflect the issuance and sale of approximately 46,747,968 shares of Common
Stock (the “Offering Shares”) in the offering scheduled to close on September 29, 2008 (the
“September Offering”). The Offering Shares are duly authorized and, when issued in accordance with
the terms of the purchase agreement for the September Offering, will be validly issued, fully paid
and

-5-

 

nonassessable, and not subject to any preemptive rights. Since the Common Stock
Capitalization Date, the Company has not issued any shares of Voting Common Stock or Nonvoting
Common Stock, other than shares issued in the September Offering and shares issued upon the
exercise of stock options or delivered under RSUs.

     (c) Preferred Shares. The Preferred Shares have been duly and validly authorized,
and, when issued and delivered pursuant to this Agreement, such Preferred Shares will be duly and
validly issued and fully paid and non-assessable.

     (d) The Warrant and Warrant Shares. The Warrant has been duly authorized and, when
executed and delivered as contemplated hereby, will constitute a valid and legally binding
obligation of the Company in accordance with its terms, and the shares of Voting Common Stock
issuable upon exercise of the Warrant (the “Warrant Shares”) have been duly authorized and reserved
for issuance upon exercise of the Warrant and when so issued will be validly issued, fully paid and
non-assessable.

     (e) Authorization, Enforceability.

     (i) The Company has the corporate power and authority to execute and deliver this
Agreement and the other Transaction Documents and to carry out its obligations hereunder
and thereunder (which includes the issuance of the Preferred Shares, Warrant and Warrant
Shares). The execution, delivery and performance by the Company of this Agreement and the
other Transaction Documents to which it is a party and the consummation of the transactions
contemplated hereby and thereby have been duly authorized by all necessary corporate action
on the part of the Company and its stockholders, and no further approval or authorization
is required on the part of the Company. This Agreement and the other Transaction Documents
are or will be valid and binding obligations of the Company enforceable against the Company
in accordance with their respective terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and general equitable principles, regardless of
whether such enforceability is considered in a proceeding at law or in equity (“Bankruptcy
Exceptions”).

     (ii) The execution, delivery and performance by the Company of this Agreement and the
other Transaction Documents and the consummation of the transactions contemplated hereby
and thereby and compliance by the Company with any of the provisions hereof and thereof,
will not (i) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the
creation of, any lien, security interest, charge or encumbrance upon any of the properties
or assets of the Company or any Significant Subsidiary under any of the terms, conditions
or provisions of (A) its restated certificate of incorporation or amended and restated
by-laws

-6-

 

or (B) any note, bond, mortgage, indenture, deed of trust, license, lease, agreement or
other instrument or obligation to which the Company or any Significant Subsidiary is a
party or by which it or any Significant Subsidiary may be bound, or to which the Company or
any Significant Subsidiary or any of the properties or assets of the Company or any
Significant Subsidiary may be subject, or (ii) subject to compliance with the statutes and
regulations referred to in the next paragraph, violate any statute, rule or regulation or
any judgment, ruling, order, writ, injunction or decree applicable to the Company or any
Significant Subsidiary or any of their respective properties or assets except, in the case
of clauses (i)(B) and (ii), for those occurrences that, individually or in the aggregate,
have not had and would not be reasonably likely to have a Material Adverse Effect.

     (iii) Other than the filing of the Certificate of Designations with the Secretary of
State of the State of Delaware, any current report on Form 8-K required to be filed with
the SEC and such as have been made or obtained, no notice to, filing with, exemption or
review by, or authorization, consent or approval of, any Governmental Entity is required to
be made or obtained by the Company in connection with the consummation by the Company of
the Purchase except for any such notices, filings, exemptions reviews, authorizations,
consents and approvals the failure of which to make or obtain would not be reasonably
likely to have a Material Adverse Effect.

     (f) Company Financial Statements.

     (i) The consolidated financial statements of the Company and its consolidated
subsidiaries included or incorporated by reference in the SEC Reports filed prior to the
Closing, present fairly in all material respects the consolidated financial position of the
Company and its consolidated subsidiaries as of the dates indicated therein and the
consolidated results of their operations for the periods specified therein; and except as
stated therein, such financial statements were prepared in conformity with GAAP applied on
a consistent basis (except as may be noted therein).

     (ii) PricewaterhouseCoopers LLP, who have certified certain financial statements of
the Company and its subsidiaries, are independent public accountants as required by the
Exchange Act and the rules and regulations of the Commission and the Public Company
Accounting Oversight Board.

     (g) No Material Adverse Effect. Since May 30, 2008, no fact, circumstance, event,
change, occurrence, condition or development has occurred that, individually or in the aggregate,
has had or would be reasonably likely to have a Material Adverse Effect.

     (h) Reports.

     (i) Since November 30, 2007, the Company has complied in all material respects with
the filing requirements of
Sections 13(a), 14(a) and 15(d) of the Exchange Act.

-7-

 

     (ii) The SEC Reports filed by the Company prior to the Closing, when they became
effective or were filed with the Commission, as the case may be, conformed in all material
respects to the requirements of the Securities Act or the Exchange Act, as applicable, and
the rules and regulations of the Commission thereunder, and none of such documents, when
they became effective or were filed with the Commission, contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances in which they
were made, not misleading.

     2.3 Representations and Warranties of the Investor. The Investor, hereby represents
and warrants to the Company that as of the date hereof and the Closing Date:

     (a) Status. The Investor has been duly organized and is validly existing as a
corporation under the laws of Delaware.

     (b) Authorization, Enforceability.

     (i) The Investor has the power and authority, corporate or otherwise, to execute and
deliver this Agreement and the Registration Rights Agreement and to carry out its
obligations hereunder and thereunder. The execution, delivery and performance by the
Investor of this Agreement and the Registration Rights Agreement and the consummation of
the transactions contemplated hereby and thereby have been duly authorized by all necessary
action on the part of the Investor, and no further approval or authorization is required on
the part of the Investor or any other party for such authorization to be effective. This
Agreement and the Registration Rights Agreement are or will be valid and binding
obligations of the Investor enforceable against the Investor in accordance with their
respective terms, except as the same may be limited by Bankruptcy Exceptions.

     (ii) The execution, delivery and performance by the Investor of this Agreement and the
Registration Rights Agreement and the consummation of the transactions contemplated hereby
and thereby and compliance by the Investor with any of the provisions hereof and thereof,
will not (i) violate, conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the performance
required by, or result in a right of termination or acceleration of, or result in the
creation of, any lien, security interest, charge or encumbrance upon any of the properties
or assets of such Investor under any of the terms, conditions or provisions of (A) its
organizational documents or (B) any note, bond, mortgage, indenture, deed of trust,
license, lease, agreement or other instrument or obligation to which the Investor is a
party or by which it may be bound, or to which the Investor or any of the properties or
assets of the Investor may be subject, or (ii) subject to compliance with the statutes and
regulations referred to in the next paragraph, violate any statute, rule or regulation or
any judgment, ruling, order, writ, injunction or decree applicable to the Investor or any
of its properties or assets except, in the case of clauses (i)(B) and (ii), for those
occurrences that, individually or in

-8-

 

the aggregate, have not had and would not be reasonably likely to have an Investor
Material Adverse Effect. “Investor Material Adverse Effect” means a material adverse
effect on the ability of the Investor to consummate the Purchase and the other transactions
contemplated by this Agreement.

     (iii) Other than such as have been made or obtained, no notice to, filing with,
exemption or review by, or authorization, consent or approval of, any Governmental Entity
is required to be made or obtained by the Investor in connection with the consummation by
the Investor of the Purchase except for any such notices, filings, exemptions, reviews,
authorizations, consent and approvals the failure of which to make or obtain would not be
reasonably likely to have an Investor Material Adverse Effect.

     (c) Ownership. The Investor is not the Beneficial Owner of (i) any Common Stock or
(ii) any securities or other instruments representing the right to acquire Common Stock, other than
an aggregate amount of Common Stock with respect to clauses (i) and (ii) not exceeding 100,000
shares (without giving effect to the Purchase). The Investor does not have a formal or informal
agreement, arrangement or understanding with any person (other than the Company) to acquire,
dispose of or vote any securities of the Company. “Beneficial Ownership” shall be determined in
accordance with Rules 13d-3 and 13d-5 under the Exchange Act, including the provision that any
member of a “group” shall be deemed to have Beneficial Ownership of all securities Beneficially
Owned by other members of the group, and except that the exclusion in Rule 13d-3(d)(1)(i) for
rights to acquire securities that are not exercisable “within 60 days” shall not apply.
“Beneficial Owner” and “Beneficially Own” shall have conforming definitions. Unless specified
otherwise, all percentage calculations of Beneficial Ownership will be calculated by including
securities that the person (including any group of which such person is a member), but not any
other person, has the right to acquire in both the numerator and the denominator.

     To the extent the Investor transfers its rights to one or more of its Permitted Transferees at
or prior to Closing, the representations and warranties in Sections 2.3(a) and (b) shall be deemed
to also be made by the Investor in respect of each such Permitted Transferee and the representation
and warranty in Section 2.3(c) shall be deemed to be made in respect of the Investor and such
Permitted Transferees collectively.

Article III

Covenants

     3.1 Commercially Reasonable Efforts. Subject to the terms and conditions of this
Agreement, each of the parties will use its commercially reasonable efforts in good faith to take,
or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or
desirable, or advisable under applicable laws, so as to permit consummation of the Purchase as
promptly as practicable and otherwise to enable consummation of the transactions contemplated
hereby and shall use commercially reasonable efforts to cooperate with the other party to that end.

-9-

 

     3.2 Expenses. Unless otherwise provided in any Transaction Document executed by the
Company and the Investor, each of the parties hereto will bear and pay all costs and expenses
incurred by it or on its behalf in connection with the transactions contemplated under the
Transaction Documents, including fees and expenses of its own financial or other consultants,
investment bankers, accountants and counsel.

     3.3 Sufficiency of Authorized Voting Common Stock. During the period from the Closing
Date until the date on which the Warrant has been fully exercised, the Company shall at all times
have reserved for issuance, free of preemptive or similar rights, a sufficient number of shares of
authorized and unissued Warrant Shares to effectuate such exercise. Nothing in this Section 3.3
shall preclude the Company from satisfying its obligations in respect of the exercise of the
Warrant by delivery of shares of Voting Common Stock which are held in the treasury of the Company.
As soon as practicable following the Closing, the Company shall, at its expense, cause the Warrant
Shares to be listed on the New York Stock Exchange (“NYSE”) at the time they become freely
transferable in the public market under the Securities Act, subject to official notice of issuance,
and shall maintain such listing on the NYSE for so long as any Voting Common Stock is listed on the
NYSE.

     3.4 Certain Notifications Until Closing. From the date of this Agreement until the
Closing, each party shall promptly notify the other party of (i) any fact, event or circumstance of
which it is aware and which would be reasonably likely to cause any representation or warranty of
such party contained in this Agreement to be untrue or inaccurate in any material respect or to
cause any covenant or agreement of such party contained in this Agreement not to be complied with
or satisfied in any material respect and (ii) except as Previously Disclosed, any fact,
circumstance, event, change, occurrence, condition or development of which it is aware and which,
individually or in the aggregate, has had or would be reasonably likely to have a Material Adverse
Effect or an Investor Material Adverse Effect, as the case may be; provided, however, that delivery
of any notice pursuant to this Section 3.4 shall not limit or affect any rights of or remedies
available to the other party.

Article IV

Additional Agreements

     4.1 Bank Holding Company Act. The Investor agrees that it will at all times remain in
compliance with the U.S. Bank Holding Company Act of 1956 (the “BHCA”) as the BHCA may apply to the
Investor. It is the intention of the Company and the Investor that the Investor’s investment in
the Company on the terms and conditions set forth in this Agreement, the other Transaction
Documents and the Certificate of Designations will not cause the Investor to become, or be required
to register as, a bank holding company under the BHCA (“BHCA Registration”). The Company and the
Investor agree that the Company shall provide the Investor with such information as shall be
reasonably requested to assist the Investor in ordering its affairs such that it does not become
subject to BHCA Registration. In addition, if, solely as a result of any change in law or

-10-

 

regulation, Investor’s ownership of the Purchased Securities (and excluding any other
activities of the Investor or interests of the Investor in the Company or other persons) would
cause the Investor to become subject to BHCA Registration, the Company will, at the request of the
Investor, reasonably cooperate with the Investor in any restructuring of the Investor’s ownership
of the Purchased Securities such that the Investor would not become subject to BHCA Registration,
including, notwithstanding the limitations in Sections 4.3(a) and (e), if the Investor is otherwise
unable to reasonably restructure its affairs such that it would not be subject to BHCA Registration
(including, without limitation, disposing of securities other than the Purchased Securities),
permitting the Investor and its Permitted Transferees to transfer, in a transaction that is not
required to be registered under the Securities Act, a portion of the Purchased Securities to not
more than an aggregate of fifteen transferees that are qualified institutional buyers within the
meaning of Rule 144A under the Securities Act (“QIBs”) but only to the extent any such transfer or
transfers would result in the Investor not being subject to BHCA Registration, provided that (i)
each such transferee agrees to be bound by Sections 4.3(a) through 4.3(f) hereof, (except that
Section 4.3(b) shall not apply in respect of Preferred Securities and Section 4.3(e) shall not
apply in respect of Warrants) and (ii) in the case of transfers of the Warrant, the transfer
complies with clause (iii) of Section 4.3(b), and the Company will, if requested by the Investor,
agree to allow transferees of the Warrant (but not subsequent transferees) to become parties to the
Registration Rights Agreement on substantially the same terms as a Permitted Transferee would be
permitted to become a party (including, at the election of the Investor, reasonably cooperating
with the Investor to assist the Investor in assigning one of its demand rights under the
Registration Rights Agreement to such transferees of the Warrant), and provided further that under
no circumstances shall the Company be required to change or limit its business, subject itself to
additional or different regulation or otherwise take any action (other than permitting the transfer
of Purchased Securities as described above) that would be adverse to the business, affairs,
financial condition or prospects of the Company.

     4.2 Ownership.

     The Investor agrees that it will not, and it will not permit any Permitted Transferee to,
directly or indirectly, including through any subsidiary of the Investor, a Permitted Transferee or
other third party, purchase or otherwise acquire Beneficial Ownership of any Common Stock or
securities convertible into or exchangeable for Common Stock (whether or not issued by the Company)
that would result in the Investor (together with all Permitted Transferees to which a Transfer has
been made): (i) Beneficially Owning more than 14.9% of the outstanding Voting Common Stock (the
“Voting Cap”); provided, however, that if the Investor exceeds the Voting Cap solely because (i)
the Company engages in repurchases of its securities or takes other actions to reduce the number of
outstanding shares of Common Stock or (ii) due to adjustments in the number of shares issuable
upon exercise of the Warrant in accordance with the terms of the Warrant or (iii) a combination of
(i) and (ii), then the Investor will not be deemed to be in violation of the Voting Cap if the
Investor disposes of sufficient securities so as to cause the Investor to no longer exceed the
Voting Cap promptly upon receipt of written notification from the Company that Investor has
exceeded the Voting Cap for any such reason and, notwithstanding the limitations in Sections 4.3(a)
and (e), the Company hereby agrees to permit the Investor and its Permitted Transferees to

-11-

 

transfer, in a transaction not required to be registered under the Securities Act, a portion
of the Warrants to not more than an aggregate of fifteen transferees that are QIBs but only to the
extent any such transfer or transfers would result in the Investor not being in violation of the
Voting Cap, provided that (i) each such transferee agrees to be bound by Section 4.3(a) through
4.3(f) hereof (except Section 4.3(e) shall not apply) and (ii) the transfer complies with clause
(iii) of Section 4.3(b), and the Company will, if requested by the Investor, agree to allow the
transferees (but not subsequent transferees) to become parties to the Registration Rights Agreement
on substantially the same terms as a Permitted Transferee would be permitted to become a party
(including, at the election of the Investor, reasonably cooperating with the Investor to assist the
Investor in assigning one of its demand rights under the Registration Rights Agreement to such
transferees of the Warrant).

     4.3 Transfer Restrictions.

     (a) Prior to the five year anniversary of the Closing Date, without the prior written consent
of the Company, the Investor and its Permitted Transferees shall not (i) except as provided in
Sections 4.1 and 4.2, directly or indirectly transfer, sell, assign, pledge, convey, hypothecate or
otherwise encumber or dispose of any of the Purchased Securities, or (ii) lend, hypothecate or
permit any custodian to lend or hypothecate any of the Purchased Securities or any Common Stock.
Each transaction referenced in clauses (i) and (ii) is herein called a “Transfer”. Exercises of
the Warrant for Warrant Shares in accordance with the terms of the Warrant shall not be deemed
Transfers.

     (b) The Investor and the Permitted Transferees (individually or collectively) may not Transfer
any Warrant Shares other than (i) in a transaction that has been specifically approved by the
Company in writing, (ii) in a public offering registered with the Commission or in a sale under
Rule 144 under the Securities Act, where the Company has been offered the opportunity to designate
a sole underwriter, broker or market maker, or (iii) in a private transaction or series of related
transactions, and, in the case of (ii) or (iii), to the knowledge of the Investor or Permitted
Transferee, no purchaser or group of related purchasers acquires Voting Common Stock in such
transaction or series of transactions that represents more than 3.5% of the Company’s outstanding
Voting Common Stock, and in any case consistent with applicable laws and regulations, including
precedent of the Board of Governors of the Federal Reserve System.

     (c) Notwithstanding the foregoing, Section 4.3(a) and (b) shall not prevent the Investor and
the Permitted Transferees from Transferring any or all of the Purchased Securities or Warrant
Shares, at any time, to any direct or indirect subsidiary of the Investor where the Investor
beneficially owns at least 80% of the equity interests (measured by both voting rights and value)
of such subsidiary (each, a “Permitted Transferee”), but only if the Permitted Transferee agrees in
writing for the benefit of the Company to be bound by the terms of this Agreement (including these
transfer restrictions); provided that if the Investor ceases to beneficially own at least 80% of
the equity interests (measured by both voting rights and value) of such Permitted Transferee, such
Permitted Transferee shall be required to transfer such Purchased Securities or Warrant Shares to
the Investor or a Permitted Transferee (or in the case of the Warrant Shares, in accordance with

-12-

 

Section 4.3(b)) immediately; provided further that no such Transfer shall relieve the Investor
of its obligations under this Agreement. The Investor shall cause each Permitted Transferee to
comply with this Agreement as applicable to it.

     (d) Without the prior written consent of the Company, the Investor and its Permitted
Transferees may not engage in any Hedging Transaction with respect to any of the Purchased
Securities or Warrant Shares. “Hedging Transaction” means any short sale (whether or not against
the box) or any purchase, sale or grant of any right (including any put or call option, swap or
other derivative transaction whether settled in cash or securities) to obtain a “short” or “put
equivalent position” with respect to the Common Stock.

     (e) On and after the five year anniversary of the Closing Date, the Investor and its Permitted
Transferees may Transfer the Preferred Securities to any other person, provided that (i) the amount
transferred to the transferee is at least equal to the lesser of (x) an amount of Preferred
Securities having an aggregate liquidation value of at least $1,000,000,000 or (y) an amount of
Preferred Securities equal to all of the Preferred Securities then owned by Investor together with
its Permitted Transferees, (ii) the transfer and resulting ownership are consistent with law and
regulation, including applicable precedent of the Board of Governors of the Federal Reserve System
and (iii) the transferee agrees, on terms and in a form reasonably satisfactory to the Company,
that its transfers, if any, will be subject to this Section 4.3(e), provided further, that in the
case of transferees from the Investor or a Permitted Transferee, whether pursuant to Section 4.1,
Section 4.2 or this Section 4.3(e), and any subsequent transferees the minimum transfer amount in
clause (i) above shall be the lesser of (x) an amount of Preferred Securities having an aggregate
liquidation value of at least $500,000,000 and (y) the aggregate amount of Preferred Securities
held by such transferee.

     (f) The Purchased Securities are, and the Warrant Shares will be when issued, restricted
securities under the Securities Act and may not be offered or sold except pursuant to an effective
registration statement or an available exemption from registration under the Securities Act.
Accordingly, the Investor shall not, directly or through others, offer or sell any Purchased
Securities or any Warrant Shares except pursuant to a registration statement or pursuant to Rule
144 or another exemption from registration under the Securities Act, if available. Prior to any
Transfer of Purchased Securities or Warrant Shares other than pursuant to an effective registration
statement, the Investor shall notify the Company of such Transfer and the Company may require the
Investor to provide, prior to such Transfer, such evidence that the Transfer will comply with the
Securities Act (including written representations and an opinion of counsel) as the Company may
reasonably request. The Company may impose stop-transfer instructions with respect to any
securities that are to be transferred in contravention of this Agreement.

     4.4 Purchase for Investment. The Investor acknowledges that the Purchased Securities
and the Warrant Shares have not been registered under the Securities Act or under any state
securities laws. The Investor (i) is acquiring the Purchased Securities pursuant to an exemption
from registration under the

-13-

 

Securities Act solely for investment with no present intention to distribute them to any
person in violation of the Securities Act or any applicable U.S. state securities laws, (ii) will
not sell or otherwise dispose of any of the Purchased Securities or the Warrant Shares, except in
compliance with the registration requirements or exemption provisions of the Securities Act and any
applicable U.S. state securities laws, (iii) has such knowledge and experience in financial and
business matters and in investments of this type that it is capable of evaluating the merits and
risks of the Purchase and of making an informed investment decision, and has conducted a review of
the business and affairs of the Company that it considers sufficient and reasonable for purposes of
making the Purchase, (iv) is able to bear the economic risk of the Purchase and at the present time
is able to afford a complete loss of such investment and (iv) is an “accredited investor” (as that
term is defined by Rule 501 under the Securities Act).

     4.5 Legend. The Investor agrees that all certificates or other instruments
representing Purchased Securities and the Warrant Shares will bear a legend substantially to the
following effect:

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS. THIS INSTRUMENT IS ISSUED PURSUANT TO AND SUBJECT TO THE RESTRICTIONS
ON TRANSFER AND OTHER PROVISIONS OF A SECURITIES PURCHASE AGREEMENT, DATED
SEPTEMBER 29, 2008, BETWEEN THE ISSUER OF THESE SECURITIES AND THE INVESTOR
REFERRED TO THEREIN, A COPY OF WHICH IS ON FILE WITH THE ISSUER. THE SECURITIES
REPRESENTED BY THIS INSTRUMENT MAY NOT BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN
COMPLIANCE WITH SAID AGREEMENT. ANY SALE OR OTHER TRANSFER NOT IN COMPLIANCE WITH
SAID AGREEMENT WILL BE VOID.”

In the event that (i) any Purchased Securities or Warrant Shares become registered under the
Securities Act or (ii) Warrant Shares are eligible to be transferred without restriction in
accordance with Rule 144 under the Securities Act, the Company shall (subject to the receipt of any
evidence required under Section 4.3(e)) issue new certificates or other instruments representing
such Purchased Securities or Warrant Shares, which shall not contain such portion of the above
legend that is no longer applicable; provided that the Investor surrenders to the Company the
previously issued certificates or other instruments.

     4.6 Information Rights. At the request of the Investor, from time to time upon
reasonable notice, the Company shall make the Chief Financial Officer of the Company available to
meet with the Investor for the purpose of discussing with the Investor the financial condition,
business and results of operations of the Company. This right is non-transferable and terminates
on the

-14-

 

date that the Investor and its Permitted Transferees no longer collectively hold Preferred
Stock with an aggregate liquidation value of at least $1,000,000,000.

     4.7 Spin-off Transactions. In the event that the Company decides to distribute the
common equity securities of an entity (“Spinco”) that owns one or more of its businesses to the
Company’s common stockholders by means of a pro rata distribution of the common equity securities
of Spinco, the Company shall, subject to receipt of any necessary regulatory approvals (including
the Board of Governors of the Federal Reserve System), exchange a number of shares of Spinco
Preferred equal to the product of (i) the Spin-off Value Percentage and (ii) the number of
Preferred Shares owned by the Investor and its Permitted Transferees at the time of the exchange,
for an equal number of Preferred Shares. The Company shall not complete the pro rata distribution
unless it effects the exchange described in this Section 4.7. When issued, the Spinco Preferred
shall entitle the holder thereof to the payment of the accrued and unpaid dividends on the
exchanged Preferred Shares (whether or not declared) to the date of the spin-off. The exchange
shall be conducted with the Investor and its Permitted Transferees on a pro rata basis and the
redemption shall be mandatory on the Investor and its Permitted Transferees. This Section 4.7
shall not apply if immediately prior to the spin-off, the Investor and its Permitted Transferees in
the aggregate own less than 10,000 Preferred Shares. Following the exchange contemplated by this
Section 4.7, the rights and obligations in this Agreement shall apply to the Spinco Preferred
mutadis mutandis.

     The exchange contemplated by this Section 4.7 shall be subject to the approval of the Board of
Governors of the Federal Reserve System.

     “Spin-off Value Percentage” means the decimal equivalent of a fraction, the numerator of which
is the fair market value of Spinco and the denominator of which is the sum of the fair market value
of the Company and the fair market value of Spinco. The fair market value for this purpose shall
be based upon the expected public trading price of the Spinco common equity securities on a fully
distributed basis and the expected public trading price of the Company’s Voting Common Stock
following the distribution of the Spinco common equity securities, and determined as though neither
the Preferred Shares nor the Spinco Preferred were outstanding. In determining fair market values,
any equity interest in Spinco retained by the Company will be disregarded in determining the fair
market value of the Company. The fair market value of Spinco will be determined on a fully
distributed (100% of the common equity) basis. The Company will provide to the Investor the
Company’s estimate of the Spin-off Value Percentage (together with appropriate supporting
material). If the Investor does not agree with the Company’s estimate, it may object in writing
within 10 days of receipt of the Company’s estimate. In the event of such an objection, the chief
executive officers of the Investor and the Company shall promptly meet to resolve the objection and
to agree upon the Spin-off Value Percentage. If the chief executive officers are unable to agree
on the Spin-off Value Percentage during the 10-day period following the delivery of the Investor’s
objection, the Appraisal Procedure may be invoked by either party to determine the Spin-off Value
Percentage by delivery of a written notification thereof not later than the 30th day after delivery
of the Investor’s objection.

-15-

 

     “Spinco Preferred” shall mean a series of preferred stock of Spinco which has rights,
preferences (including a liquidation preference of $100,000 per share), voting powers and
limitations and restrictions that are substantially the same as the rights, preferences, voting
powers and limitations and restrictions of the Preferred Shares, except that the issuers are not
the same. Spinco will not have any authorized preferred stock that is senior to the Spinco
Preferred.

     “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the
Company and one by the Investor, shall mutually agree upon the Spin-off Value Percentage. Each
party shall deliver a notice to the other appointing its appraiser within 10 days after the
Appraisal Procedure is invoked. If within 30 days after appointment of the two appraisers they are
unable to agree upon the Spin-off Value Percentage, a third independent appraiser shall be chosen
within 10 days thereafter by the mutual consent of such first two appraisers or, if such two first
appraisers fail to agree upon the appointment of a third appraiser, such appointment shall be made
by the American Arbitration Association, or any organization successor thereto, from a panel of
arbitrators having experience in appraisal of the subject matter to be appraised. The decision of
the third appraiser so appointed and chosen shall be given within 30 days after the selection of
such third appraiser. If three appraisers shall be appointed and the determination of one
appraiser is disparate from the middle determination by more than twice the amount by which the
other determination is disparate from the middle determination, then the determination of such
appraiser shall be excluded, the remaining two determinations shall be averaged and such average
shall be binding and conclusive upon the Company and the Investor; otherwise, the average of all
three determinations shall be binding upon the Corporation and the Investor. The costs of
conducting any Appraisal Procedure shall be borne equally by the Company and the Investor.

Article V

Miscellaneous

     5.1 Termination. This Agreement may be terminated at any time prior to the Closing:

     (a) by either the Investor or the Company if the Closing shall not have occurred by the
30th calendar day following the date of this Agreement; provided, however, that in the
event the Closing has not occurred by such 30th calendar day, the parties will consult
in good faith to determine whether to extend the term of this Agreement, it being understood that
the parties shall be required to consult only until the fifth day after such 30th
calendar day and not be under any obligation to extend the term of this Agreement; provided,
further, that the right to terminate this Agreement under this Section 5.1(a) shall not be
available to any party whose breach of any representation or warranty or failure to perform any
obligation under this Agreement shall have caused or resulted in the failure of the Closing to
occur on or prior to such date; or

     (b) by either the Investor or the Company in the event that any Governmental Entity shall have
issued an order, decree or ruling or taken any other

-16-

 

action restraining, enjoining or otherwise prohibiting the transactions contemplated by this
Agreement and such order, decree, ruling or other action shall have become final and nonappealable;
or

     (c) by the mutual written consent of the Investor and the Company.

In the event of termination of this Agreement as provided in this Section 5.1, this Agreement shall
forthwith become void and there shall be no liability on the part of either party hereto, except
that nothing herein shall relieve either party from liability for any breach of this Agreement.

     5.2 Amendment. No amendment of any provision of this Agreement will be effective
unless made in writing and signed by an officer of a duly authorized representative of each party.

     5.3 Waiver of Conditions. The conditions to each party’s obligation to consummate the
Purchase are for the sole benefit of such party and may be waived by such party in whole or in part
to the extent permitted by applicable law. No waiver will be effective unless it is in a writing
signed by a duly authorized officer of the waiving party that makes express reference to the
provision or provisions subject to such waiver.

     5.4 Counterparts and Facsimile. For the convenience of the parties hereto, this
Agreement may be executed in any number of separate counterparts, each such counterpart being
deemed to be an original instrument, and all such counterparts will together constitute the same
agreement. Executed signature pages to this Agreement may be delivered by facsimile and such
facsimiles will be deemed as sufficient as if actual signature pages had been delivered.

     5.5 Governing Law; Submission to Jurisdiction, Etc. This Agreement will be governed
by and construed in accordance with the laws of the State of New York applicable to contracts made
and to be performed entirely within such State. Each of the parties hereto agrees (a) to submit to
the non-exclusive personal jurisdiction of the State or Federal courts in the Borough of Manhattan,
The City of New York, (b) that non-exclusive jurisdiction and venue shall lie in the State or
Federal courts in the State of New York, and (c) that notice may be served upon such party at the
address and in the manner set forth for such party in Section 5.6. To the extent permitted by
applicable law, each of the parties hereto hereby unconditionally waives trial by jury in any legal
action or proceeding relating to the Transaction Documents or the transactions contemplated hereby
or thereby.

     5.6 Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on
the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices hereunder shall be delivered as set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such notice.

-17-

 

	 
	(A) If to the Investor:

	 

	Berkshire Hathaway Inc.

	1440 Kiewit Plaza

	Omaha, Nebraska 68131

	 

	Attention: Marc D. Hamburg

	Facsimile: (402) 346-3375

	 

	with a copy to:

	 

	Munger, Tolles & Olson LLP

	355 S. Grand Avenue, 35th Floor

	Los Angeles, California 90071

	 

	Attention: Robert E. Denham

	Facsimile: (213) 687-3702

	 

	(B) If to the Company:

	 

	The Goldman Sachs Group, Inc.

	85 Broad Street

	New York, New York 10004

	Attention: General Counsel

	Facsimile: 212-902-3876

	 

	with a copy to:

	 

	Sullivan & Cromwell LLP

	125 Broad Street

	New York, New York 10004

	Attention: John Mead

	Facsimile: (212) 558-3588

     5.7 Entire Agreement, Etc. This Agreement (including the Annexes hereto) and the
other Transaction Documents constitute the entire agreement, and supersede all other prior
agreements, understandings, representations and warranties, both written and oral, between the
parties, with respect to the subject matter hereof.

     5.8 Definitions of “subsidiary” and “Affiliate”. (a) When a reference is made in this
Agreement to a subsidiary of a person, the term “subsidiary” means those entities of which such
person owns or controls more than 50% of the outstanding equity securities either directly or
through an unbroken chain of entities as to each of which more than 50% of the outstanding equity
securities is owned directly or indirectly by its parent.

     (b) The term “Affiliate” means, with respect to any person, any person directly or indirectly
controlling, controlled by or under common control with, such other person. For purposes of this
definition, “control” when used with respect to any person, means the possession, directly or
indirectly, of the power to

-18-

 

cause the direction of management and/or policies of
such person, whether through the ownership of voting securities by contract or otherwise.

     5.9 Assignment. Neither this Agreement nor any right, remedy, obligation nor
liability arising hereunder or by reason hereof shall be assignable by any party hereto without the
prior written consent of the other parties, and any attempt to assign any right, remedy, obligation
or liability hereunder without such consent shall be void, except (i) an assignment, in the case of
a merger or consolidation where such party is not the surviving entity, or a sale of substantially
all of its assets, to the entity which is the survivor of such merger or consolidation or the
purchaser in such sale or (ii) an assignment by Investor, upon one business day’s notice to the
Company, of any or all of its rights hereunder (including under any other Transaction Document) to
one or more Permitted Transferees prior to the Closing subject to the requirements and conditions
set forth in Section 4.3(c) for a transfer of Purchased Securities and applicable requirements and
conditions in the other Transaction Documents. The actions of Investor and/or any Permitted
Transferee shall be aggregated for purposes of all thresholds and limitations herein and in the
Registration Rights Agreement to the extent (i) Investor transfers any or all of its rights
hereunder to any Permitted Transferee prior to the Closing and/or (ii) Investor or any Permitted
Transferee transfers any Purchased Securities to any Permitted Transferee following the Closing.

     5.10 Severability. If any provision of this Agreement or a Transaction Document, or
the application thereof to any person or circumstance, is determined by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to persons or circumstances other than those as to which it has been
held invalid or unenforceable, will remain in full force and effect and shall in no way be
affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party.
Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a
suitable and equitable substitute provision to effect the original intent of the parties.

     5.11 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or
implied, is intended to confer upon any person or entity other than the Company and the Investor
(and any subsidiary of the Investor or Permitted Transferee to which an assignment is made in
accordance with this Agreement), any benefits, rights, or remedies.

* * *

-19-

 

     In Witness Whereof, this Agreement has been duly executed and delivered by the duly
authorized officers of the parties hereto as of the date first herein above written.

	 	 	 	 	 
	 	THE GOLDMAN SACHS GROUP, INC.

 	 
	 	By:  	/s/ Gregory K. Palm
 	 
	 	 	Name: 	Gregory K. Palm
	 	 	Title: 	Executive Vice President and
General Counsel 	 
	 

	 	 	 	 	 
	 	BERKSHIRE HATHAWAY INC.

 	 
	 	By:  	/s/ Marc D. Hamburg
 	 
	 	 	Name: 	Marc D. Hamburg
	 	 	Title: 	Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]