-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MO+LMx5BVaBemXw1S32006pWrZ9HIgdcGRhZ+uECtPAtEoileE4/7c1M1zBxAbEx oowVTS5RXHV/Mu6rb6PZoA== 0000950123-04-007655.txt : 20040623 0000950123-04-007655.hdr.sgml : 20040623 20040622202956 ACCESSION NUMBER: 0000950123-04-007655 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20040623 GROUP MEMBERS: GROUP MEMBERS LISTED IN FILING SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GOLDMAN SACHS GROUP INC/ CENTRAL INDEX KEY: 0000886982 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 134019460 STATE OF INCORPORATION: DE FISCAL YEAR END: 1128 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-56295 FILM NUMBER: 04875863 BUSINESS ADDRESS: STREET 1: 85 BROAD ST CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 2129021000 MAIL ADDRESS: STREET 1: 85 BROAD ST CITY: NEW YORK STATE: NY ZIP: 10004 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: GOLDMAN SACHS GROUP INC/ CENTRAL INDEX KEY: 0000886982 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 134019460 STATE OF INCORPORATION: DE FISCAL YEAR END: 1128 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 85 BROAD ST CITY: NEW YORK STATE: NY ZIP: 10004 BUSINESS PHONE: 2129021000 MAIL ADDRESS: STREET 1: 85 BROAD ST CITY: NEW YORK STATE: NY ZIP: 10004 SC 13D/A 1 y98479sc13dza.txt AMENDMENT #54 TO SCHEDULE 13D SECURITIES EXCHANGE COMMISSION Washington, D.C. 20549 File No. 005-56295 ------------------------------------ SCHEDULE 13D/A (Rule 13d-101) Amendment No. 54 INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a) The Goldman Sachs Group, Inc. --------------------- (Name of Issuer) Common Stock, par value $.01 per share --------------------------- (Title of Class of Securities) 38141G 10 4 --------------------- (CUSIP Number) Kenneth L. Josselyn Beverly L. O'Toole The Goldman Sachs Group, Inc. 85 Broad Street New York, New York 10004 Telephone: (212) 902-1000 -------------------- (Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications) June 18, 2004 -------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [ ]. (Continued on following pages) - ---------------------- CUSIP NO. 38141G 10 4 13D - --------------------- - ------------------------------------------------------------------------------- 1. NAMES OF REPORTING PERSONS: Each of the persons identified on Appendix A. - ------------------------------------------------------------------------------- 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP As to a group consisting solely of Covered Persons(1) (a) [x] As to a group consisting of persons other than Covered Persons (b) [x] - ------------------------------------------------------------------------------- 3. SEC USE ONLY - ------------------------------------------------------------------------------- 4. SOURCE OF FUNDS: OO and PF (Applies to each person listed on Appendix A.) - ------------------------------------------------------------------------------- 5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED [ ] PURSUANT TO ITEM 2(d)OR 2(e)(Applies to each person listed on Appendix A.) - ------------------------------------------------------------------------------- 6. CITIZENSHIP OR PLACE OF ORGANIZATION United States unless otherwise indicated on Appendix A. - ------------------------------------------------------------------------------- 7. SOLE VOTING POWER: 0 --------------------------------------------------------------- NUMBER OF 8. SHARED VOTING POWER (See Item 6)(Applies to each person SHARES listed on Appendix A.) BENEFICIALLY 51,048,501 Voting Shares(3) held by Covered Persons OWNED BY 3,470 Shared Ownership Shares held by Covered Persons(4) REPORTING 16,331,169 Sixty Day Shares held by Covered Persons(5) PERSON(2) 3,130,806 Other Shares held by Covered Persons (6) WITH --------------------------------------------------------------- 9. SOLE DISPOSITIVE POWER (See Item 6) As to Voting Shares, less than 1% As to Shared Ownership Shares, Sixty Day Shares and Other Shares, 0 --------------------------------------------------------------- 10.SHARED DISPOSITIVE POWER (See Item 6): As to Voting Shares, 0 As to Shared Ownership Shares, less than 0.01% As to Sixty Day Shares and Other Shares, less than 1%. - ------------------------------------------------------------------------------- 11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 70,513,946(2) - ------------------------------------------------------------------------------- 12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES [ ] - ------------------------------------------------------------------------------- 13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 14.19%(2) - ------------------------------------------------------------------------------- 14. TYPE OF REPORTING PERSON: IN as to Covered Persons; CO as to Reporting Entities(1) that are corporations; OO as to Reporting Entities that are trusts - ---------- (1) For a definition of this term, please see Item 2. (2) All share amounts and percentages are as of the close of business on June 22, 2004. (3) For a definition of this term, please see Item 6. (4) "Shared Ownership Shares" are shares of Common Stock (other than Other Shares, as defined below) of which a Covered Person shares beneficial ownership with someone other than the Covered Person's spouse. Each Covered Person disclaims beneficial ownership of Shared Ownership Shares beneficially owned by each other Covered Person. (5) "Sixty Day Shares" are shares of Common Stock deemed to be beneficially owned under Rule 13d-3(d)(1) because a Covered Person has the right to acquire beneficial ownership within 60 days of the date hereof. See Annex D for a description of these shares. Upon acquisition by the Covered Person, these shares will become Voting Shares. Each Covered Person disclaims beneficial ownership of Sixty Day Shares beneficially owned by each other Covered Person. (6) "Other Shares" include: (i) 610,711 shares of Common Stock held by 29 private charitable foundations established by 29 Covered Persons; and (ii) 2,520,095 shares of Common Stock held by certain estate planning entities established by Covered Persons. Each Covered Person disclaims beneficial ownership of Other Shares beneficially owned by each other Covered Person, and each Covered Person disclaims beneficial ownership of all shares held by any private charitable foundation. 2
ITEM 6 ITEM 1 CITIZENSHIP (UNITED NAMES OF REPORTING STATES UNLESS OTHERWISE PERSONS INDICATED) ------- ---------- Bradley I. Abelow Peter C. Aberg Raanan A. Agus Syed H. Ahmad Pakistan Philippe J. Altuzarra France Akio Asuke Japan Armen A. Avanessians Dean C. Backer Milton R. Berlinski The Netherlands Frances R. Bermanzohn Stuart N. Bernstein Jean-Luc Biamonti Monaco Lloyd C. Blankfein Charles W.A. Bott UK Craig W. Broderick Richard J. Bronks UK John J. Bu Timothy B. Bunting UK Lawrence V. Calcano John D. Campbell Richard M. Campbell-Breeden UK Michael J. Carr Chris Casciato Andrew A. Chisholm Canada Robert J. Christie Geoffrey G. Clark Canada Abby Joseph Cohen Alan M. Cohen Lawrence A. Cohen Gary D. Cohn Christopher A. Cole Laura C. Conigliaro Frank T. Connor Karen R. Cook UK Edith W. Cooper Philip A. Cooper Henry Cornell E. Gerald Corrigan Claudio Costamagna Italy Frank L. Coulson, Jr. Randolph L. Cowen Brahm S. Cramer Canada Neil D. Crowder Eduardo A. Cruz Michael D. Daffey Australia John S. Daly Ireland Philip M. Darivoff Michael G. De Lathauwer Belgium Mark Dehnert Paul C. Deighton UK Juan A. Del Rivero Spain Martin R. Devenish UK Armando A. Diaz Alexander C. Dibelius Germany Simon P. Dingemans UK Suzanne O. Donohoe Mario Draghi Italy Michael B. Dubno William C. Dudley Jay S. Dweck Gordon E. Dyal Isabelle Ealet France Glenn P. Earle UK Paul S. Efron Herbert E. Ehlers Edward K. Eisler Austria Michael P. Esposito J. Michael Evans Canada Stephen C. Fitzgerald Australia Edward C. Forst Christopher G. French UK Richard A. Friedman Robert K. Frumkes Enrico S. Gaglioti Peter C. Gerhard Rajiv A. Ghatalia India Robert R. Gheewalla Scott A. Gieselman H. John Gilbertson, Jr. Richard J. Gnodde Ireland/ South Africa Jeffrey B. Goldenberg James S. Golob Andrew M. Gordon Frank J. Governali Geoffrey T. Grant William M. Grathwohl Stefan Green Australia David J. Greenwald Christopher Grigg UK Douglas C. Grip Celeste A. Guth David B. Heller David L. Henle Melina E. Higgins Kenneth W. Hitchner
ITEM 6 ITEM 1 CITIZENSHIP (UNITED NAMES OF REPORTING STATES UNLESS OTHERWISE PERSONS INDICATED) ------- ---------- Maykin Ho Peter Hollmann Germany Terry P. Hughes Ireland Phillip S. Hylander UK Timothy J. Ingrassia William L. Jacob III Dan H. Jester Robert C. Jones Ravindra J. Joseph UK/USA Chansoo Joung David A. Kaplan Robert S. Kaplan Scott B. Kapnick Carsten Kengeter Germany Kevin W. Kennedy Philippe Khuong-Huu France Douglas W. Kimmelman Robert C. King, Jr. Shigeki Kiritani Japan Ewan M. Kirk UK Bradford C. Koenig Mark J. Kogan Peter S. Kraus Eric S. Lane Anthony D. Lauto Peter J. Layton Kenneth H. M. Leet Gregg R. Lemkau Hughes B. Lepic France Jack Levy Matthew G. L'Heureux Gwen R. Libstag Mitchell J. Lieberman Ryan D. Limaye Josephine Linden UK Anthony W. Ling UK Robert Litterman Victor M. Lopez-Balboa Antigone Loudiadis UK Mark G. Machin UK John A. Mahoney Charles G. R. Manby UK Barry A. Mannis Robert J. Markwick UK Alison J. Mass John J. Masterson David J. Mastrocola Kathy M. Matsui George N. Mattson Theresa E. McCabe Joseph M. McConnell Mark E. McGoldrick Stephen J. McGuinness John C. McIntire John W. McMahon Audrey A. McNiff Robert A. McTamaney Sanjeev K. Mehra India Andrew L. Metcalfe UK Therese L. Miller Edward S. Misrahi Italy Masanori Mochida Japan Thomas K. Montag William C. Montgomery Wayne L. Moore Jeffrey M. Moslow Sharmin Mossavar-Rahmani UK Gregory T. Mount Donald R. Mullen Duncan L. Niederauer Suzanne M. Nora Johnson L. Peter O'Hagan Canada Terence J. O'Neill UK Timothy J. O'Neill Richard T. Ong Malaysia Terence M. O'Toole Robert J. Pace Gregory K. Palm Henry M. Paulson, Jr. David B. Philip Stephen R. Pierce Andrea Ponti Italy/USA Richard H. Powers John J. Rafter Ireland Charlotte P. Ransom UK Joseph Ravitch John F. W. Rogers Emmanuel Roman France Ralph F. Rosenberg Ivan Ross Stuart M. Rothenberg Paul M. Russo Richard M. Ruzika Michael D. Ryan Katsunori Sago Japan
4
ITEM 6 ITEM 1 CITIZENSHIP (UNITED NAMES OF REPORTING STATES UNLESS OTHERWISE PERSONS INDICATED) ------- ---------- Pablo J. Salame Ecuador J. Michael Sanders Muneer A. Satter Marcus Schenck Germany Gary B. Schermerhorn Stephen M. Scherr Howard B. Schiller Jeffrey W. Schroeder Eric S. Schwartz Harvey M. Schwartz Steven M. Scopellite Lisa M. Shalett Richard S. Sharp UK Richard G. Sherlund Michael S. Sherwood UK Dinakar Singh Ravi M. Singh Ravi Sinha India/USA Edward M. Siskind Christian J. Siva-Jothy UK Michael M. Smith Sarah E. Smith UK Jonathan S. Sobel David M. Solomon Daniel L. Sparks Marc A. Spilker Esta E. Stecher Steven H. Strongin Hsueh J. Sung Taiwan Gene T. Sykes Ronald K. Tanemura UK/USA Greg W. Tebbe Mark R. Tercek Mark J. Tracey UK Stephen S. Trevor Byron D. Trott Michael A. Troy Robert B. Tudor III Eiji Ueda Japan Kaysie P. Uniacke Hugo H. Van Vredenburch The Netherlands Ashok Varadhan Corrado P. Varoli Canada John J. Vaske David A. Viniar John E. Waldron George H. Walker IV Hsueh-Ming Wang Patrick J. Ward David M. Weil John S. Weinberg Peter A. Weinberg Gregg S. Weinstein George W. Wellde, Jr. Matthew Westerman UK William Wicker C. Howard Wietschner Susan A. Willetts Todd A. Williams John S. Willian Kendrick R. Wilson III Jon Winkelried Michael S. Wishart Tracy R. Wolstencroft Zi Wang Xu Canada/China (PRC) W. Thomas York, Jr. Paul M. Young William J. Young Paolo Zannoni Italy Yoel Zaoui France Jide J. Zeitlin
REPORTING ENTITIES
ITEM 1 ITEM 6 NAME OF ESTABLISHING NAME OF ENTITY TYPE OF ENTITY PLACE OF ORGANIZATION COVERED PERSON -------------- -------------- --------------------- -------------- Anahue Limited Corporation Jersey Andrew A. Chisholm Bott 2004 Settlement Trust UK Charles W.A. Bott Campbell-Breeden 2004 Settlement Trust UK Richard M. Campbell-Breeden Chambolle Limited Corporation Jersey Emmanuel Roman Deighton 2004 Settlement Trust UK Paul C. Deighton Devenish 2004 Settlement Trust UK Martin R. Devenish
5
ITEM 1 ITEM 6 NAME OF ESTABLISHING NAME OF ENTITY TYPE OF ENTITY PLACE OF ORGANIZATION COVERED PERSON -------------- -------------- --------------------- -------------- Dingemans 2004 Settlement Trust UK Simon P. Dingemans Drayton 2004 Settlement Trust UK Karen R. Cook French 2004 Settlement Trust UK Christopher G. French Grigg 2004 Settlement Trust UK Christopher Grigg HJS2 Limited Corporation Cayman Islands Hsueh J. Sung Kirk 2004 Settlement Trust UK Ewan M. Kirk Ling 2004 Settlement Trust UK Anthony W. Ling Manby 2004 Settlement Trust UK Charles G.R. Manby Markwick 2004 Settlement Trust UK Robert J. Markwick O'Neill 2004 Trust Trust UK Terence J. O'Neill The Patrick J. Ward 2001 Trust Trust New York Patrick J. Ward Ransom 2004 Settlement Trust UK Charlotte P. Ransom RJG Holding Company Corporation Cayman Islands Richard J. Gnodde Robinelli Limited Corporation Jersey Claudio Costamagna Sharp 2004 Settlement Trust UK Richard S. Sharp Sherwood 2004 Settlement Trust UK Michael S. Sherwood Tracey 2004 Settlement Trust UK Mark J. Tracey Westerman 2004 Settlement Trust UK Matthew Westerman Zurrah Limited Corporation Jersey Yoel Zaoui
6 This Amendment No. 54 to a Statement on Schedule 13D amends and restates in its entirety such Schedule 13D (as so amended and restated, this "Schedule"). This Amendment No. 54 is being filed primarily because (i) as of the close of business on June 22, 2004, an amended and restated Shareholders' Agreement (as defined in Item 2 below) took effect and (ii) commencing on or around June 23, 2004, certain Covered Persons will be permitted to sell shares of Common Stock (as defined in Item 1 below) through the Channel A and Channel B Sales Programs (as defined in Item 4 below). All information in this Schedule is as of the close of business on June 22, 2004. ITEM 1. SECURITY AND ISSUER This Schedule relates to the Common Stock, par value $.01 per share (the "Common Stock"), of The Goldman Sachs Group, Inc. ("GS Inc."), a Delaware corporation. The address of the principal executive offices of GS Inc. is 85 Broad Street, New York, New York 10004. ITEM 2. IDENTITY AND BACKGROUND (a), (b), (c), (f) The cover page to this Schedule and Appendix A hereto contain the names of the individuals ("Covered Persons") who are parties to a Shareholders' Agreement, dated as of May 7, 1999 and amended and restated as of June 22, 2004 (as amended from time to time, the "Shareholders' Agreement"). This filing is being made on behalf of all of the Covered Persons, and their agreement that this filing may be so made is contained in the Shareholders' Agreement. Appendix A hereto also provides the citizenship of each Covered Person. Each Covered Person is a Participating Managing Director (as defined in Item 6 below) employed by GS Inc. or one of its affiliates. GS Inc. is a global investment banking and securities firm. The business address of each Covered Person for purposes of this Schedule is 85 Broad Street, New York, New York 10004. Each entity listed on Appendix A under "Reporting Entities" (each a "Reporting Entity") is a trust or corporation created by or for a Covered Person for estate planning purposes. Each Reporting Entity is controlled by a Covered Person. The name, citizenship, business address and present principal occupation or employment of each of the directors and executive officers of each Reporting Entity that is a corporation (other than the Covered Person that established the Reporting Entity) are set forth in Annex A hereto. The business address of each Reporting Entity for purposes of this Schedule is: (i) in the case of entities organized in Jersey or under the laws of the United Kingdom, 26 New Street, St. Helier, Jersey, JE2 3RA; and (ii) in the case of entities organized in the Cayman Islands, P.O. Box 309, Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands. (d), (e) Except as described in Annex A or Annex B, during the last five years no Covered Person and, to the best knowledge of the Covered Persons, no executive officer or director of a Reporting Entity, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or has been a party to a civil proceeding or a judicial or administrative body of competent jurisdiction resulting in such Covered Person or executive officer or director being subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The Covered Persons have acquired and will acquire shares of Common Stock in the following manners: (i) the former profit participating limited partners active in the business of The Goldman Sachs Group, L.P. ("Group L.P.") (the "IPO PMDs") acquired certain shares of Common Stock in exchange for their interests in Group L.P. and certain of its affiliates and investee corporations; (ii) the former owners (the "Hull Covered Persons") of Hull and Associates, L.L.C. ("Hull") and the former members (the "SLK Covered Persons" and, together with the Hull Covered Persons, the "Acquisition Covered Persons") of SLK LLC acquired certain shares of Common Stock in exchange for their interests in Hull or SLK LLC, as applicable; and (iii) certain Covered Persons have acquired and will acquire beneficial ownership of certain shares of Common Stock in connection with GS Inc.'s initial public offering and/or pursuant to GS Inc.'s employee compensation, benefit or similar plans. The Reporting Entities have acquired and may in the future acquire beneficial ownership of shares of Common Stock as contributions or gifts made by Covered Persons. Covered Persons may from time to time acquire shares of Common Stock for investment purposes. Such Common Stock may be acquired with personal funds of or funds borrowed by such Covered Person. ITEM 4. PURPOSE OF TRANSACTIONS The Covered Persons, other than the Acquisition Covered Persons, acquired certain shares of Common Stock in connection with the succession of GS Inc. to the business of Group L.P. and GS Inc.'s initial public offering and/or through certain employee compensation, benefit or similar plans of GS Inc. The Acquisition Covered Persons acquired certain shares of Common Stock in connection with the acquisition by GS Inc. of Hull or the combination of GS Inc. with SLK LLC, as applicable, and through certain employee compensation, benefit or similar plans of GS Inc. The Reporting Entities acquired shares of Common Stock as contributions or gifts made by Covered Persons. The board of directors of GS Inc. and, in the case of the IPO PMDs, the Shareholders' Committee have approved sales by the IPO PMDs, Acquisition Covered Persons and certain of their Reporting Entities of a portion of their shares of Common Stock through two programs (the "Channel A Sales Program" and the "Channel B Sales Program"). Sales under the Channel A and Channel B Sales Programs have been made in prior quarters. On June 18, 2004, GS Inc. notified eligible Covered Persons that additional sales under the Channel A and Channel B Sales Programs will be permitted commencing on or around June 23, 2004 and terminating on or around July 23, 2004. It is not anticipated that the Channel A and Channel B Sales Programs will continue in subsequent fiscal quarters. The participants in the Channel A Sales Program may sell, in a coordinated manner, a portion of their shares of Common Stock in accordance with the volume and manner of sale limitations of Rule 144 under the Securities Act of 1933, as amended ("Rule 144"), and a volume limitation that is established by GS Inc. (the "Channel A Sales Limit"). Subject to the volume limitations of Rule 144 and the Channel A Sales Limit, up to 23,888,247 shares are eligible for sale by Covered Persons under the Channel A Sales Program. With respect to other participants, the decision as to whether and how many shares to sell will be made by each participant on a daily basis, subject to the Channel A Sales Limit. The participants in the Channel B Sales Program may sell, in a coordinated manner, a portion of their shares of Common Stock in accordance with Rule 144(k) and a volume limitation that is established by GS Inc. (the "Channel B Sales Limit"). Subject to the Channel B Sales Limit, up to 21,699,348 shares are eligible for sale by Covered Persons under the Channel B Sales Program. The decision as to whether and how many shares to sell will be made by each participant on a daily basis, subject to the Channel B Sales Limit. Covered Persons, other than IPO PMDs and Acquisition Covered Persons, and their Reporting Entities may sell their shares of Common Stock through GS Inc.'s employee sales program, commencing on or about June 23, 2004 and ending on or about July 23, 2004. Covered Persons may from time to time acquire shares of Common Stock for investment purposes. Except as described herein and in Annex C and except for the acquisition by Covered Persons or their Reporting Entities of Common Stock pursuant to employee compensation, benefit or similar plans of GS Inc. in the future or as described above, none of the Covered Persons has any plans or proposals which relate to or would result in the acquisition of additional Common Stock by them or their Reporting Entities or any of the other events described in Item 4(a) through 4(j). Each Covered Person is expected to evaluate on an ongoing basis GS Inc.'s financial condition and prospects and his or her interests in and with respect to GS Inc. Accordingly, each Covered Person may change his or her plans and intentions at any time and from time to time. In particular, each Covered Person or Reporting Entity may at any time and from time to time acquire or dispose of shares of Common Stock. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) Rows (11) and (13) of the cover page to this Schedule and Appendix A are hereby incorporated by reference. Each Covered Person hereby disclaims beneficial ownership of any shares of Common Stock held by any other Covered Person. Except as described in Annex D, none of the shares of Common Stock reported in rows (11) 8 and (13) of the cover page to this Schedule and Appendix A are shares as to which there is a right to acquire exercisable within 60 days. (b) Rows (7) through (10) of the cover page to this Schedule set forth for each Covered Person and Reporting Entity: the percentage range of Voting Shares (as defined in Item 6 below), Shared Ownership Shares, Sixty Day Shares and Other Shares (each as defined on the cover page hereof) as to which there is sole power to vote or direct the vote or to dispose or direct the disposition or shared power to vote or direct the vote or to dispose or direct the disposition. The power to vote Voting Shares by Covered Persons is shared with each other Covered Person, as described below in response to Item 6. Each Covered Person hereby disclaims beneficial ownership of any shares of Common Stock held by any other Covered Person. (c) Except as described in Annex E or previously reported on Schedule 13D, no Covered Person or Reporting Entity has effected any transactions in Common Stock in the past 60 days. (d), (e) Not applicable. ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER Each Covered Person listed on the cover page to this Schedule and Appendix A hereto is a party to the Shareholders' Agreement. The Shareholders' Agreement and forms of the Counterparts to the Shareholders' Agreement are filed as Exhibits to this Schedule and the following summary of the terms of the Shareholders' Agreement is qualified in its entirety by reference thereto. The Shareholders' Agreement was amended and restated effective as of the close of business on June 22, 2004. References to the "board of directors" are to the board of directors of The Goldman Sachs Group, Inc. The Covered Persons under the Shareholders' Agreement include all Managing Directors of GS Inc. who participate in the GS Inc. Partner Compensation Plan or Restricted Partner Compensation Plan (each as defined in the Shareholders' Agreement) or any other employee benefit plan specified by the Shareholders' Committee (the "Participating Managing Directors"). As of the close of business on June 22, 2004, all other Managing Directors, Advisory Directors and estate planning entities ceased to be subject to the Shareholders' Agreement, and therefore ceased to be reporting persons under this Schedule 13D. The "Voting Shares" include all of the shares of Common Stock of which a Covered Person is the sole beneficial owner (excluding shares of Common Stock held by the trust underlying The Goldman Sachs Employees' Profit Sharing Retirement Income Plan) and the shares of Common Stock held by the trust underlying a Goldman Sachs Compensation Plan (as defined in the Shareholders' Agreement) and allocated to a Covered Person. The interest of a spouse or domestic partner in a joint account, an economic interest of GS Inc. as pledgee, and the interest of certain persons in the Reporting Entities will be disregarded for the purposes of determining whether a Covered Person is the sole beneficial owner of shares of Common Stock. TRANSFER RESTRICTIONS Each Covered Person has agreed in the Shareholders' Agreement, among other things, to retain sole beneficial ownership of a number of shares of Common Stock at least equal to 25% of such Covered Person's Covered Shares (as defined below) (the "General Transfer Restrictions"). In addition, certain senior officers designated by the Shareholders' Committee have each agreed to retain sole beneficial ownership of a number of shares of Common Stock at least equal to 75% of such Covered Person's Covered Shares (the "Special Transfer Restrictions" and, together with the General Transfer Restrictions, the "Transfer Restrictions"). The same shares may be used to satisfy both the Special Transfer Restrictions and the General Transfer Restrictions. The Transfer Restrictions applicable to a Covered Person terminate upon the death of the Covered Person. Any shares beneficially owned by a Covered Person through a Reporting Entity may be deemed to count toward the satisfaction of the Transfer Restrictions. For these purposes, "Covered Shares," with respect to a Covered Person, will be recalculated each time the Covered Person receives Common Stock underlying an award of restricted stock units, becomes vested in an award 9 under The Goldman Sachs Defined Contribution Plan with respect to fiscal 1999 or 2000 or exercises a stock option (not including, in each case, awards in connection with GS Inc.'s initial public offering). The calculation of Covered Shares will include the gross number of shares underlying such restricted stock units, Defined Contribution Plan awards or stock options, less (i) a number of shares determined by reference to tax rates specified by the Shareholders' Committee and (ii) the number of shares necessary to cover the option exercise price, if applicable (all as calculated pursuant to a formula set out in the Shareholders' Agreement). The calculation of Covered Shares will only take into account awards that occurred after the Covered Person became a Participating Managing Director. WAIVERS The Shareholders' Committee, described below under "Information Regarding the Shareholders' Committee," has the power to waive the Transfer Restrictions to permit Covered Persons to: participate as sellers in underwritten public offerings of, and stock repurchase programs and tender and exchange offers by GS Inc. for, Common Stock; transfer Common Stock to charities, including charitable foundations; transfer Common Stock held in employee benefit plans; and transfer Common Stock in particular situations (such as transfers to family members, partnerships or trusts), but not generally. In the case of a third-party tender or exchange offer, the Transfer Restrictions may be waived or terminated: if the board of directors is recommending acceptance or is not making any recommendation with respect to acceptance of the tender or exchange offer, by a majority of the outstanding Covered Shares; or if the board of directors is recommending rejection of the tender or exchange offer, by 66 2/3% of the outstanding Covered Shares. In the case of a tender or exchange offer by GS Inc., a majority of the outstanding Covered Shares may also waive or terminate the Transfer Restrictions. VOTING Prior to any vote of the shareholders of GS Inc., the Shareholders' Agreement requires a separate, preliminary vote of all Voting Shares on each matter upon which a vote of the shareholders is proposed to be taken (the "Preliminary Vote"). Each Voting Share will be voted in accordance with the majority of the votes cast by the Voting Shares in the Preliminary Vote. In elections of directors, each Voting Share will be voted in favor of the election of those persons, equal in number to the number of such positions to be filled, receiving the highest numbers of votes cast by the Voting Shares in the Preliminary Vote. OTHER RESTRICTIONS The Shareholders' Agreement also prohibits Covered Persons from engaging in certain activities relating to any securities of GS Inc. with any person who is not a Covered Person or a director, officer or employee of GS Inc. ("Restricted Persons"). Among other things, a Covered Person may not: participate in a proxy solicitation to or with a Restricted Person; deposit any shares of Common Stock in a voting trust or subject any shares of Common Stock to any voting agreement or arrangement that includes any Restricted Person; form, join or in any way participate in a "group" with any Restricted Person; or together with any Restricted Person, propose certain transactions with GS Inc. or seek the removal of any directors of GS Inc. or any change in the composition of the board of directors. TERM, AMENDMENT AND CONTINUATION The Shareholders' Agreement is to continue in effect until the earlier of January 1, 2050 and the time it is terminated by the vote of 66 2/3% of the outstanding Covered Shares. The Shareholders' Agreement may generally be amended at any time by a majority of the outstanding Covered Shares. Unless otherwise terminated, in the event of any transaction in which a third party succeeds to the business of GS Inc. and in which Covered Persons hold securities of the third party, the Shareholders' Agreement will remain in full force and effect as to the securities of the third party, and the third party shall succeed to the rights and obligations of GS Inc. under the Shareholders' Agreement. 10 INFORMATION REGARDING THE SHAREHOLDERS' COMMITTEE The Shareholders' Committee constituted pursuant to the Shareholders' Agreement (the "Shareholders' Committee") shall at any time consist of each of those individuals who are both Covered Persons and members of the board of directors and who agree to serve as members of the Shareholders' Committee. If there are less than three individuals who are both Covered Persons and members of the board of directors and who agree to serve as members of the Shareholders' Committee, the Shareholders' Committee shall consist of each such individual plus such additional individuals who are Covered Persons and who are selected pursuant to procedures established by the Shareholders' Committee as shall assure a Shareholders' Committee of not less than three members who are Covered Persons. Currently, Henry M. Paulson, Jr., Robert S. Kaplan and Lloyd C. Blankfein are the members of the Shareholders' Committee. PLEDGE AGREEMENTS On July 31, 2000, certain Covered Persons pledged some of their shares of Common Stock to obtain approximately $400,000,000 in loan commitments to make investments from time to time in certain merchant banking funds sponsored by GS Inc. The loan commitments are for five years, may be drawn upon from time to time and generally require that any loans be collateralized by shares of Common Stock with a market value four times that of the amount borrowed. Pursuant to Rule 13d-3(d)(3) under the Securities Exchange Act of 1934, as amended, the pledgees did not acquire beneficial ownership of the pledged shares by virtue of the pledge. REGISTRATION RIGHTS INSTRUMENT FOR CHARITABLE DONATIONS In connection with the donations of shares of Common Stock by certain Covered Persons to certain charitable organizations on December 13, 1999, December 22, 2000, December 26, 2001, January 9, 2002, December 23, 2002, January 8, 2003, December 22, 2003 and January 8, 2004, GS Inc. entered into a Registration Rights Instrument and five substantially similar Supplemental Registration Rights Instruments (the "Charitable Supplements"). The following is a description of the Registration Rights Instrument, as supplemented by the Charitable Supplements. The Registration Rights Instrument and the Charitable Supplements are filed as Exhibits to this Schedule, and the following summary of these agreements is qualified in its entirety by reference thereto. Pursuant to the Registration Rights Instrument and the Charitable Supplements, GS Inc. has agreed to register the donated shares of Common Stock for resale by charitable foundations and public charities. GS Inc. has agreed in the Registration Rights Instrument and the Charitable Supplements to pay all of the fees and expenses relating to the offering by the charitable organizations, other than any agency fees and commissions or underwriting commissions or discounts or any transfer taxes incurred by the charitable organizations in connection with their resales. GS Inc. also has agreed to indemnify the charitable organizations against certain liabilities, including those arising under the Securities Act. GS Inc. may amend the Registration Rights Instrument and the Charitable Supplements in any manner that it deems appropriate, without the consent of any charitable organization. However, GS Inc. may not make any amendment that would cause the shares of Common Stock to fail to be "qualified appreciated stock" within the meaning of Section 170 of the Internal Revenue Code. In addition, GS Inc. may not make any amendment that would materially and adversely affect the rights of any charitable organization without the consent of a majority of the materially and adversely affected charitable organizations. REGISTRATION RIGHTS INSTRUMENT FOR FORMER EMPLOYEE MANAGING DIRECTORS In connection with the sale by certain Covered Persons (the "Former Employee Managing Directors") of shares of Common Stock acquired from GS Inc. pursuant to the terms of restricted stock units, GS Inc. entered into a Supplemental Registration Rights Instrument (the "EMD Supplement"), which supplements the Registration Rights Instrument referred to above. The following is a description of the Registration Rights Instrument, as supplemented 11 by the EMD Supplement. The Registration Rights Instrument and the EMD Supplement are filed as Exhibits to this Schedule, and the following summary of these agreements is qualified in its entirety by reference thereto. Pursuant to the Registration Rights Instrument and the EMD Supplement, GS Inc. has agreed to pay all of the fees and expenses relating to the registered offering of shares of Common Stock held by the Former Employee Managing Directors, other than any agency fees and commissions or underwriting commissions or discounts or any transfer taxes incurred by the Former Employee Managing Directors in connection with the sales. GS Inc. also has agreed to indemnify the Former Employee Managing Directors against certain liabilities, including those arising under the Securities Act. 12 Material to be Filed as Exhibits
Exhibit Description - ------- ----------- A. Registration Rights Instrument, dated as of December 10, 1999 (incorporated by reference to Exhibit G to Amendment No. 1 to the Initial Schedule 13D, filed December 17, 1999 (File No. 005-56295)). B. Supplemental Registration Rights Instrument, dated as of December 10, 1999 (incorporated by reference to Exhibit H to Amendment No. 1 to the Initial Schedule 13D, filed December 17, 1999 (File No. 005-56295)). C. Form of Counterpart to Shareholders' Agreement for former profit participating limited partners of The Goldman Sachs Group, L.P. (incorporated by reference to Exhibit I to Amendment No. 2 to the Initial Schedule 13D, filed June 21, 2000 (File No. 005-56295)). D. Form of Counterpart to Shareholders' Agreement for non-individual former owners of Hull and Associates, L.L.C. (incorporated by reference to Exhibit K to Amendment No. 3 to the Initial Schedule 13D, filed June 30, 2000 (File No. 005-56295)). E. Supplemental Registration Rights Instrument, dated as of June 19, 2000 (incorporated by reference to Exhibit R to Amendment No. 5 to the Initial Schedule 13D, filed August 2, 2000 (File No. 005-56295)). F. Power of Attorney (incorporated by reference to Exhibit X to Amendment No. 14 to the Initial Schedule 13D, filed March 29, 2001 (File No. 005-56295)). G. Supplemental Registration Rights Instrument, dated as of December 21, 2000 (incorporated by reference to Exhibit AA to Amendment No. 12 to the Initial Schedule 13D, filed January 23, 2001 (File No. 005-56295)). H. Supplemental Registration Rights Instrument, dated as of December 21, 2001 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-74006) filed by The Goldman Sachs Group, Inc.). I. Form of Power of Attorney executed by Covered Persons participating in the Channel A Sales Program (incorporated by reference to Exhibit BB to Amendment No. 27 to the Initial Schedule 13D, filed June 20, 2002 (File No. 005-56295)). J. Supplemental Registration Rights Instrument, dated as of December 20, 2002 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-101093) filed by The Goldman Sachs Group, Inc.). K. Form of Written Consent Relating to Sale and Purchase of Common Stock (incorporated by reference to Exhibit FF to Amendment No. 35 to the Initial Schedule 13D, filed January 8, 2003 (File No. 005-56295)). L. Supplemental Registration Rights Instrument, dated as of December 19, 2003 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-110371) filed by The Goldman Sachs Group, Inc.). M. Amended and Restated Shareholders' Agreement, effective as of the close of business on June 22, 2004.
13 ANNEX A INFORMATION REQUIRED AS TO EXECUTIVE OFFICERS AND DIRECTORS OF CORPORATE REPORTING ENTITIES
CONVICTIONS OR BENEFICIAL VIOLATIONS OF OWNERSHIP OF THE FEDERAL OR STATE COMMON STOCK OF PRESENT LAWS WITHIN THE THE GOLDMAN NAME CITIZENSHIP BUSINESS ADDRESS EMPLOYMENT LAST FIVE YEARS SACHS GROUP, INC ---- ----------- ---------------- ---------- --------------- ---------------- Steven M. Bunson USA 85 Broad Street Managing Director, None Less than 1% of New York, NY The Goldman the outstanding 10004 Sachs Group, Inc. shares of Common Stock. Russell E. Makowsky USA 85 Broad Street Managing Director, None Less than 1% of New York, NY The Goldman the outstanding 10004 Sachs Group, Inc. shares of Common Stock. Michael H. Richardson UK 26 New Street, Partner, None None St. Helier, Jersey, Bedell Cristin JE4 3RA Anthony J. Dessain UK 26 New Street, Partner, None None St. Helier, Jersey, Bedell Cristin JE4 3RA
14 ANNEX B ITEMS 2(D) AND 2(E). INFORMATION REQUIRED AS TO CERTAIN PROCEEDINGS None. 15 ANNEX C ITEM 4. PLANNED DISPOSITION OF SECURITIES OF THE ISSUER BY COVERED PERSONS OR REPORTING ENTITIES None. 16 ANNEX D ITEM 5(A). DESCRIPTION OF SHARES AS TO WHICH THERE IS A RIGHT TO ACQUIRE EXERCISABLE WITHIN 60 DAYS. An aggregate of 10,969,718 shares of Common Stock are deliverable to Covered Persons upon the exercise of stock options, all of which have vested and are exercisable. On or about June 23, 2004, an aggregate of 2,164,313 shares of Common Stock will be delivered pursuant to the terms of an equal number of restricted stock units, and stock options covering 3,197,138 shares of Common Stock will vest and become exercisable. The share amounts given above include the gross number of shares of Common Stock underlying these restricted stock units and options, and are included in the aggregate number of shares beneficially owned by the Covered Persons under Rule 13d-3(d)(1) because they represent a right to acquire beneficial ownership within 60 days of the date hereof. Upon delivery of the shares pursuant to the terms of restricted stock units or upon the exercise of stock options, a net amount of shares will be actually delivered to the Covered Person, with some shares withheld for tax payments, to fund the option strike price or for other reasons. The net shares delivered to the Covered Person will continue to be included in aggregate number of shares beneficially owned by the Covered Persons. The withheld shares will cease to be beneficially owned by any Covered Person, and will no longer be included in the aggregate number of shares beneficially owned by Covered Persons. Prior to delivery, the shares are included in Sixty Day Shares because the Covered Persons do not have the right to vote the shares. Upon delivery, the shares become Voting Shares. 17 ANNEX E ITEM 5(C). DESCRIPTION OF ALL TRANSACTIONS IN THE COMMON STOCK EFFECTED BY COVERED PERSONS OR REPORTING ENTITIES IN THE PAST 60 DAYS AND NOT PREVIOUSLY REPORTED ON SCHEDULE 13D None. 18 SIGNATURES After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: June 22, 2004 By: /s/ Beverly L. O'Toole --------------------------------- Name: Beverly L. O'Toole Title: Attorney-in-Fact 19 EXHIBIT INDEX
Exhibit Description - ------- ----------- A. Registration Rights Instrument, dated as of December 10, 1999 (incorporated by reference to Exhibit G to Amendment No. 1 to the Initial Schedule 13D, filed December 17, 1999 (File No. 005-56295)). B. Supplemental Registration Rights Instrument, dated as of December 10, 1999 (incorporated by reference to Exhibit H to Amendment No. 1 to the Initial Schedule 13D, filed December 17, 1999 (File No. 005-56295)). C. Form of Counterpart to Shareholders' Agreement for former profit participating limited partners of The Goldman Sachs Group, L.P. (incorporated by reference to Exhibit I to Amendment No. 2 to the Initial Schedule 13D, filed June 21, 2000 (File No. 005-56295)). D. Form of Counterpart to Shareholders' Agreement for non-individual former owners of Hull and Associates, L.L.C. (incorporated by reference to Exhibit K to Amendment No. 3 to the Initial Schedule 13D, filed June 30, 2000 (File No. 005-56295)). E. Supplemental Registration Rights Instrument, dated as of June 19, 2000 (incorporated by reference to Exhibit R to Amendment No. 5 to the Initial Schedule 13D, filed August 2, 2000 (File No. 005-56295)). F. Power of Attorney (incorporated by reference to Exhibit X to Amendment No. 14 to the Initial Schedule 13D, filed March 29, 2001 (File No. 005-56295)). G. Supplemental Registration Rights Instrument, dated as of December 21, 2000 (incorporated by reference to Exhibit AA to Amendment No. 12 to the Initial Schedule 13D, filed January 23, 2001 (File No. 005-56295)). H. Supplemental Registration Rights Instrument, dated as of December 21, 2001 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-74006) filed by The Goldman Sachs Group, Inc.). I. Form of Power of Attorney executed by Covered Persons participating in the Channel A Sales Program (incorporated by reference to Exhibit BB to Amendment No. 27 to the Initial Schedule 13D, filed June 20, 2002 (File No. 005-56295)). J. Supplemental Registration Rights Instrument, dated as of December 20, 2002 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-101093) filed by The Goldman Sachs Group, Inc.). K. Form of Written Consent Relating to Sale and Purchase of Common Stock (incorporated by reference to Exhibit FF to Amendment No. 35 to the Initial Schedule 13D, filed January 8, 2003 (File No. 005-56295)). L. Supplemental Registration Rights Instrument, dated as of December 19, 2003 (incorporated by reference to Exhibit 4.4 to the registration statement on Form S-3 (File No. 333-110371) filed by The Goldman Sachs Group, Inc.). M. Amended and Restated Shareholders' Agreement, effective as of the close of business on June 22, 2004.
20 EX-99.M 2 y98479exv99wm.txt SHAREHOLDERS' AGREEMENT Exhibit M AMENDED AND RESTATED SHAREHOLDERS' AGREEMENT This Amended and Restated Shareholders' Agreement (this "Agreement"), among The Goldman Sachs Group, Inc., a Delaware corporation ("GS Inc."), and the Covered Persons (hereinafter defined) listed on Appendix A hereto, as such Appendix A may be amended from time to time pursuant to the provisions hereof. WITNESSETH: WHEREAS, the Covered Persons are beneficial owners of shares of Common Stock, par value $0.01 per share, of GS Inc. (the "Common Stock"). WHEREAS, GS Inc. entered into the Original Shareholders' Agreement (hereinafter defined) in connection with the initial public offering of GS Inc. to address certain relationships among the parties thereto with respect to the voting and disposition of shares of Common Stock and various other matters, and to give to the Shareholders' Committee (hereinafter defined) the power to enforce their agreements with respect thereto. WHEREAS, the Shareholders' Committee, GS Inc. and a majority of the outstanding Voting Interests (as defined in the Original Shareholders' Agreement) desire to amend certain provisions of the Original Shareholders' Agreement. NOW, THEREFORE, in consideration of the premises and of the mutual agreements, covenants and provisions herein contained, the parties hereto agree to amend and restate the Original Shareholders' Agreement in its entirety as follows: ARTICLE I DEFINITIONS AND OTHER MATTERS Section 1.1 Definitions. The following words and phrases as used herein shall have the following meanings, except as otherwise expressly provided or unless the context otherwise requires: (a) This "Agreement" shall have the meaning ascribed to such term in the Recitals. (b) A "beneficial owner" of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, such security and/or (ii) investment power, which includes the power to dispose, or to direct the disposition of, such security, but for purposes of this Agreement a person shall not be deemed a beneficial owner of (A) Common Stock solely by virtue of the application of Exchange Act Rule 13d-3(d) or Exchange Act Rule 13d-5, (B) Common Stock solely by virtue of the possession of the legal right to vote securities under applicable state or other law (such as by proxy or power of attorney) or (C) Common Stock held of record by a "private foundation" subject to the requirements of Section 509 of the Code. "Beneficially own" and "beneficial ownership" shall have correlative meanings. (c) "Code" shall mean the United States Internal Revenue Code of 1986, as amended from time to time, and the applicable rulings and regulations thereunder. (d) "Common Stock" shall have the meaning ascribed to such term in the Recitals. (e) "Company" shall mean GS Inc., together with its Subsidiaries. (f) "Continuing Provisions" shall have the meaning ascribed to such term in Section 7.1(b). (g) "Covered Persons" shall mean the Participating Managing Directors, whose names are listed on Appendix A hereto, and all persons who may become Participating Managing Directors, whose names will be added to Appendix A hereto. (h) "Covered Shares" shall, with respect to each Covered Person, equal the sum of the number of shares of Common Stock determined by the following calculation, which calculation shall be made, and the sum shall be determined, each time, after a Covered Person's Participation Date and with respect to an award (other than an award in connection with GS Inc.'s initial public offering or any acquisition by GS Inc. (unless otherwise determined by the Shareholders' Committee)) under a Goldman Sachs Compensation Plan, such Covered Person: (i) receives Common Stock underlying an award of restricted stock units, (ii) becomes vested in an award under the Defined Contribution Plan with respect to fiscal 1999 or 2000 only, or (iii) exercises a stock option. As of each such relevant event, the calculation, unless otherwise determined by the Shareholders' Committee, shall be: (A) such Covered Person's "gross" number of shares of Common Stock underlying such restricted stock units, Defined Contribution Plan awards or stock options, as applicable (i.e., the gross number is determined before any deductions, including any deductions for 2 withholding taxes, fees, commissions or the payment of any amount in respect of exercise), minus (B) the sum of : (1) with respect to the exercise of any stock option, a number of shares of Common Stock (subject to rounding) having a fair market value equal to the exercise price of such option (determined based on the closing price of the Common Stock on the trading day immediately preceding the date of exercise), but not including any amount in respect of fees, commissions, taxes or other charges, and (2) with respect to any relevant event, the product of: (a) the "gross" number of shares of Common Stock underlying the awards as described in Clause (A) above, less the number of shares of Common Stock determined in Clause (B)(1) above, if any, and (b) the Specified Tax Rate. With respect to any other type of award that may be granted under a Goldman Sachs Compensation Plan from time to time, the timing and manner of the calculation of Covered Shares in connection with such awards shall be as determined by the Shareholders' Committee. (i) "Defined Contribution Plan" shall mean The Goldman Sachs Defined Contribution Plan adopted by the Board of Directors of GS Inc., and approved by the stockholders of GS Inc., on May 7, 1999, as amended or supplemented from time to time, and any successors to such Plan. (j) "Designated Senior Officers" shall mean each Participating Managing Director who at the time in question has been appointed to a Designated Title. (k) "Designated Title" shall have the meaning ascribed to such term in Section 7.2(g) hereof. (l) "Effective Date" shall mean the close of business on June 22, 2004. (m) "Employees' Profit Sharing Plan" shall mean The Goldman Sachs Employees' Profit Sharing Retirement Income Plan, as amended or supplemented from time to time, and any successors to such Plan. 3 (n) "Exchange Act" shall mean the United States Securities Exchange Act of 1934, as amended from time to time. (o) A reference to an "Exchange Act Rule" shall mean such rule or regulation of the SEC under the Exchange Act, as in effect from time to time or as replaced by a successor rule thereto. (p) "General Transfer Restrictions" shall have the meaning ascribed to such term in Section 2.1(a) hereof. (q) "Goldman Sachs Compensation Plan" shall mean the Defined Contribution Plan, the Stock Incentive Plan or any other deferred compensation or employee benefit plan of GS Inc. adopted by the Board of Directors of GS Inc. and specified by the Shareholders' Committee as a Goldman Sachs Compensation Plan (other than the Employees' Profit Sharing Plan). (r) "GS Inc." shall have the meaning ascribed to such term in the Recitals. (s) "Original Shareholders' Agreement" shall mean the Shareholders' Agreement adopted by the Board of Directors of GS Inc. on May 7, 1999, as amended or supplemented from time to time up to but excluding the Effective Date. (t) "Participation Date" is the date on which a Covered Person became a Participating Managing Director for purposes of Section 2.1(a) hereof or was appointed to a Designated Title for purposes of Section 2.1(b) hereof. In the event a Participating Managing Director ceases to be a Participating Managing Director, or a Designated Senior Officer ceases to be a Designated Senior Officer, and then such person again becomes a Participating Managing Director or Designated Senior Officer, as applicable, such person's Participation Date shall be determined by the Shareholders' Committee (or any person authorized thereby). (u) "Participating Managing Director" shall mean a Managing Director of the Company who at the time in question participates in the Partner Compensation Plan, the Restricted Partner Compensation Plan or any other compensation or benefit plan specified by the Shareholders' Committee. (v) "Partner Compensation Plan" shall mean The Goldman Sachs Partner Compensation Plan adopted by the Board of Directors of GS Inc., and approved by the stockholders of GS Inc., on May 7, 1999, as amended or supplemented from time to time, and any successors to such Plan. 4 (w) A "person" shall include, as applicable, any individual, estate, trust, corporation, partnership, limited liability company, unlimited liability company, foundation, association or other entity. (x) "Preliminary Vote" shall have the meaning ascribed to such term in Section 4.1(a) hereof. (y) "Restricted Partner Compensation Plan" shall mean The Goldman Sachs Restricted Partner Compensation Plan adopted by the Board of Directors of GS Inc. on January 16, 2003 and approved by the stockholders of GS Inc. on April 1, 2003, as amended or supplemented from time to time, and any successors to such Plan. (z) "Restricted Person" shall mean any person who is not (i) a Covered Person or (ii) a director, officer or employee of the Company acting in such person's capacity as a director, officer or employee. (aa) "SEC" shall mean the United States Securities and Exchange Commission. (bb) "Shareholders' Committee" shall mean the body constituted to administer the terms and provisions of this Agreement pursuant to Article V hereof. (cc) "Sole Beneficial Owner" shall mean a person who is the beneficial owner of shares of Common Stock, who does not share beneficial ownership of such shares of Common Stock with any other person (other than pursuant to this Agreement or applicable community property laws) and who is the only person (other than pursuant to applicable community property laws) with a direct economic interest in such shares of Common Stock. The interest of a spouse or a domestic partner in a joint account, and an economic interest of the Company as pledgee, shall be disregarded for this purpose. (dd) "Special Transfer Restrictions" shall have the meaning ascribed to such term in Section 2.1(b) hereof. (ee) "Specified Tax Rate" shall mean the rate determined from time to time by the Shareholders' Committee (or any person authorized thereby), in its sole discretion, to be applicable to the calculation of Covered Shares. (ff) "Stock Incentive Plan" shall mean The Goldman Sachs Amended and Restated Stock Incentive Plan adopted by the Board of Directors of GS Inc. on January 16, 2003 and approved by the stockholders of GS Inc. on April 1, 2003, as amended or supplemented from time to time, and any predecessors or successors to such Plan. 5 (gg) "Subsidiary" shall mean any person in which GS Inc. owns, directly or indirectly, a majority of the equity economic or voting ownership interest. (hh) "Transfer Restrictions" shall mean the General Transfer Restrictions and the Special Transfer Restrictions. (ii) "vote" shall include actions taken or proposed to be taken by written consent. (jj) "Voting Shares" shall have the meaning ascribed to such term in Section 4.1(a). Section 1.2 Gender. For the purposes of this Agreement, the words "he," "his" or "himself" shall be interpreted to include the masculine, feminine and corporate, other entity or trust form. ARTICLE II LIMITATIONS ON TRANSFER OF SHARES Section 2.1 Transfer Restrictions. (a) Each Covered Person agrees that for so long as he is a Covered Person, he shall at all times be the Sole Beneficial Owner of at least that number of shares of Common Stock which equals 25% of his Covered Shares (the "General Transfer Restrictions"). (b) Each Designated Senior Officer agrees that for so long as he is a Designated Senior Officer, he shall at all times be the Sole Beneficial Owner of at least that number of shares of Common Stock which equals 75% of his Covered Shares (the "Special Transfer Restrictions"); provided, however, that the same Covered Shares may be used to satisfy both the Special Transfer Restrictions and the General Transfer Restrictions. Section 2.2 Holding of Common Stock in GS Inc. Brokerage Accounts or in Custody and in Nominee Name; Entry of Stop Transfer Orders. (a) Each Covered Person understands and agrees that all shares of Common Stock beneficially owned by him (other than shares of Common Stock held of record by a trustee in a Goldman Sachs Compensation Plan or the Employees' Profit Sharing Plan) shall, as determined by the Shareholders' Committee from time to time, be held either in a brokerage account with a Subsidiary in his name or in the custody of a custodian (and registered in the name of a nominee for such Covered Person). If shares of Common Stock are required to be held in the custody of a custodian as provided in this Section 2.2(a), each Covered Person agrees (i) to assign, endorse and register for 6 transfer into such nominee name or deliver to such custodian any such shares of Common Stock which are not so registered or so held, as the case may be, and (ii) that the form of the custody agreement and the identity of the custodian and nominee must be satisfactory in form and substance to the Shareholders' Committee and GS Inc. (b) For such time as shares of Common Stock are required to be held in the custody of a custodian in accordance with Section 2.2(a), whenever the nominee holder shall receive any dividend or other distribution upon any shares of Common Stock other than in shares of Common Stock, the Shareholders' Committee will give or cause to be given notice or direction to the applicable nominee and/or custodian referred to in paragraph (a) to permit the prompt distribution of such dividend or distribution to the beneficial owner of such shares of Common Stock, net of any tax withholding amounts required to be withheld by the nominee, unless the distribution of such dividend or distribution is restricted by the terms of another agreement between the Covered Person and the Company known to the Shareholders' Committee. (c) Each Covered Person agrees and consents to the entry of stop transfer orders against the transfer of shares of Common Stock subject to Transfer Restrictions except in compliance with this Agreement. (d) The Shareholders' Committee (or any person authorized thereby) shall develop procedures for releasing from the Transfer Restrictions all shares of Common Stock of each Covered Person who ceases to be a Covered Person. ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE PARTIES Each Covered Person severally represents and warrants for himself that: (a) Such Covered Person has (and, with respect to shares of Common Stock to be acquired, will have) good, valid and marketable title to the shares of Common Stock subject to the General Transfer Restrictions set forth in Section 2.1(a) (or, with respect to Designated Senior Officers, subject to the Special Transfer Restrictions set forth in Section 2.1(b)), free and clear of any pledge, lien, security interest, charge, claim, equity or encumbrance of any kind, other than pursuant to this Agreement, an agreement with the Company by which such Covered Person is bound and to which the shares of Common Stock are subject or as permitted by the policies of GS Inc. in effect from time to time; (b) Such Covered Person has (and, with respect to shares of Common Stock to be acquired, will have) the right to vote pursuant to Section 4.1 of this Agreement all shares of Common Stock of which the Covered Person is the Sole Beneficial Owner; and 7 (c) (if the Covered Person is other than a natural person, with respect to subsections (i) through (x), and if the Covered Person is a natural person, with respect to subsections (iv) through (x) only): (i) such Covered Person is duly organized and validly existing in good standing under the laws of the jurisdiction of such Covered Person's formation; (ii) such Covered Person has full right, power and authority to enter into and perform this Agreement; (iii) the execution and delivery of this Agreement and the performance of the transactions contemplated herein have been duly authorized, and no further proceedings on the part of such Covered Person are necessary to authorize the execution, delivery and performance of this Agreement; and this Agreement has been duly executed by such Covered Person; (iv) the person signing this Agreement on behalf of such Covered Person has been duly authorized by such Covered Person to do so; (v) this Agreement constitutes the legal, valid and binding obligation of such Covered Person, enforceable against such Covered Person in accordance with its terms (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles); (vi) neither the execution and delivery of this Agreement by such Covered Person nor the consummation of the transactions contemplated herein conflicts with or results in a breach of any of the terms, conditions or provisions of any agreement or instrument to which such Covered Person is a party or by which the assets of such Covered Person are bound (including without limitation the organizational documents of such Covered Person, if such Covered Person is other than a natural person), or constitutes a default under any of the foregoing, or violates any law or regulation; (vii) such Covered Person has obtained all authorizations, consents, approvals and clearances of all courts, governmental agencies and authorities, and any other person, 8 if any (including the spouse of such Covered Person with respect to the interest of such spouse in the shares of Common Stock of such Covered Person if the consent of such spouse is required), required to permit such Covered Person to enter into this Agreement and to consummate the transactions contemplated herein; (viii) there are no actions, suits or proceedings pending, or, to the knowledge of such Covered Person, threatened against or affecting such Covered Person or such Covered Person's assets in any court or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality which, if adversely determined, would impair the ability of such Covered Person to perform this Agreement; (ix) the performance of this Agreement will not violate any order, writ, injunction, decree or demand of any court or federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality to which such Covered Person is subject; and (x) no statement, representation or warranty made by such Covered Person in this Agreement, nor any information provided by such Covered Person for inclusion in a report filed pursuant to Section 6.3 hereof or in a registration statement filed by GS Inc. contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements, representations or warranties contained herein or information provided therein not misleading. Each Covered Person severally agrees for himself that the foregoing provision of this Article III shall be a continuing representation and covenant by him during the period that he shall be a Covered Person, and he shall take all actions as shall from time to time be necessary to cure any breach or violation and to obtain any authorizations, consents, approvals and clearances in order that such representations shall be true and correct during that period. 9 ARTICLE IV VOTING AGREEMENT Section 4.1 Preliminary Vote of Covered Persons; Voting Procedures. (a) Prior to any vote of the stockholders of GS Inc., there shall be a separate, preliminary vote, on each matter upon which a stockholder vote is proposed to be taken (each, a "Preliminary Vote"), of all of the shares of Common Stock of which a Covered Person is the Sole Beneficial Owner (excluding shares of Common Stock held by the trust underlying the Employees' Profit Sharing Plan) and the shares of Common Stock held by the trust underlying a Goldman Sachs Compensation Plan and allocated to a Covered Person (collectively, the "Voting Shares"). (b) Other than in elections of directors, every Voting Share shall be voted in accordance with the vote of the majority of the votes cast on the matter in question by the Voting Shares in the Preliminary Vote. (c) In elections of directors, every Voting Share shall be voted in favor of the election of those persons, equal in number to the number of such positions to be filled, receiving the highest numbers of votes cast by the Voting Shares in the Preliminary Vote. Section 4.2 Irrevocable Proxy and Power of Attorney. (a) By his signature hereto, each Covered Person hereby gives the Shareholders' Committee, with full power of substitution and resubstitution, an irrevocable proxy to vote or otherwise act with respect to all of the Covered Person's Voting Shares as of the relevant record date or other date used for purposes of determining holders of Common Stock entitled to vote or take any action, as fully, to the same extent and with the same effect as such Covered Person might or could do under any applicable laws or regulations governing the rights and powers of stockholders of a Delaware corporation, as follows: (i) such proxy shall be voted in connection with such matters as are the subject of a Preliminary Vote as provided in this Agreement in accordance with such Preliminary Vote; (ii) the holder of such proxy shall be authorized to vote on such other matters as may come before a meeting of stockholders of GS Inc. or any adjournment thereof and as are related, directly or indirectly, to the matter which was the subject of the Preliminary Vote as the holder of such proxy sees fit in 10 his discretion but in a manner consistent with the Preliminary Vote; and (iii) the holder of such proxy shall be authorized to vote on such other matters as may come before a meeting of stockholders of GS Inc. or any adjournment thereof (including matters related to adjournment thereof) as the holder of such proxy sees fit in his discretion but not to cast any vote under this clause (iii) which is inconsistent with the Preliminary Vote or which would achieve an outcome that would frustrate the intent of the Preliminary Vote. Each Covered Person hereby affirms that this proxy is given as a term of this Agreement and as such is coupled with an interest and is irrevocable. It is further understood and agreed by each Covered Person that this proxy may be exercised by the holder of such proxy with respect to all Voting Shares of such Covered Person for the period beginning on the Effective Date and ending on the earlier of (a) the date this Agreement shall have been terminated pursuant to Section 7.1(a) hereof or, (b) in the case of a Covered Person, Section 7.1(b) hereof. (b) By his signature hereto, each Covered Person appoints the Shareholders' Committee, with full power of substitution and resubstitution, his true and lawful attorney-in-fact to direct, in accordance with the provisions of this Article IV, the voting of any Voting Shares held of record by any other person but beneficially owned by such Covered Person (including Voting Shares held by the trust underlying any Goldman Sachs Compensation Plan and allocated to such Covered Person), granting to such attorneys, and each of them, full power and authority to do and perform each and every act and thing whatsoever that such attorney or attorneys may deem necessary, advisable or appropriate to carry out fully the intent of Section 4.1 and Section 4.2(a) as such Covered Person might or could do personally, hereby ratifying and confirming all acts and things that such attorney or attorneys may do or cause to be done by virtue of this power of attorney. It is understood and agreed by each Covered Person that this appointment, empowerment and authorization may be exercised by the aforementioned persons with respect to all Voting Shares of such Covered Person, and held of record by another person, for the period beginning on the Effective Date and ending on (a) the earlier of the date this Agreement shall have been terminated pursuant to Section 7.1(a) hereof or, (b) in the case of a Covered Person, Section 7.1(b) hereof. 11 ARTICLE V SHAREHOLDERS' COMMITTEE Section 5.1 Membership. The Shareholders' Committee shall at all times consist of all of those individuals who are both Covered Persons and members of the Board of Directors of GS Inc. and who agree to serve as members of the Shareholders' Committee. Section 5.2 Additional Members. If there are less than three individuals who are both Covered Persons and members of the Board of Directors of GS Inc. and who agree to serve as members of the Shareholders' Committee, the Shareholders' Committee shall consist of each such individual plus such additional individuals who are Covered Persons and who are selected pursuant to procedures established by the Shareholders' Committee as shall assure a Shareholders' Committee of not less than three members who are Covered Persons. Section 5.3 Determinations of and Actions by the Shareholders' Committee. (a) All determinations necessary or advisable under this Agreement (including determinations of beneficial ownership) shall be made by the Shareholders' Committee, whose determinations shall be final and binding. The Shareholders' Committee's determinations under this Agreement and actions (including waivers) hereunder need not be uniform and may be made selectively among Covered Persons (whether or not such Covered Persons are similarly situated). (b) Each Covered Person recognizes and agrees that the members of the Shareholders' Committee in acting hereunder shall at all times be acting in their capacities as members of the Shareholders' Committee and not as directors or officers of the Company and in so acting or failing to act shall not have any fiduciary duties to the Covered Persons as a member of the Shareholders' Committee by virtue of the fact that one or more of such members may also be serving as a director or officer of the Company or otherwise. (c) The Shareholders' Committee shall act through a majority vote of its members and such actions may be taken in person at a meeting (in person or telephonically) or by a written instrument signed by all of the members. Section 5.4 Certain Obligations of the Shareholders' Committee. The Shareholders' Committee shall be obligated (a) to attend as proxy, or cause a person designated by it and acting as lawful proxy to attend as proxy, each meeting of the stockholders of GS Inc. and to vote or to cause such designee to vote the Voting Shares over which it has the power to vote in accordance with the results of the Preliminary Vote 12 as set forth in Section 4.1, and (b) to develop procedures governing Preliminary Votes and other votes and actions to be taken pursuant to this Agreement. ARTICLE VI OTHER AGREEMENTS OF THE PARTIES Section 6.1 Standstill Provisions. Each Covered Person agrees that such Covered Person shall not, directly or indirectly, alone or in concert with any other person: (a) make, or in any way participate in, any "solicitation" of "proxies" (as such terms are defined in Exchange Act Rule 14a-1) relating to any securities of the Company to or with any Restricted Person; (b) deposit any shares of Common Stock in a voting trust or subject any shares of Common Stock to any voting agreement or arrangement that includes as a party any Restricted Person; (c) form, join or in any way participate in a group (as contemplated by Exchange Act Rule 13d-5(b)) with respect to any securities of the Company (or any securities the ownership of which would make the owner thereof a beneficial owner of securities of the Company (for this purpose as determined by Exchange Act Rule 13d-3 and Exchange Act Rule 13d-5)) that includes as a party any Restricted Person; (d) make any announcement subject to Exchange Act Rule 14a-1(l)(2)(iv) to any Restricted Person; (e) initiate or propose any "shareholder proposal" subject to Exchange Act Rule 14a-8; (f) together with any Restricted Person, make any offer or proposal to acquire any securities or assets of GS Inc. or any of its Subsidiaries or solicit or propose to effect or negotiate any form of business combination, restructuring, recapitalization or other extraordinary transaction involving, or any change in control of, GS Inc., its Subsidiaries or any of their respective securities or assets; (g) together with any Restricted Person, seek the removal of any directors or a change in the composition or size of the board of directors of GS Inc.; (h) together with any Restricted Person, in any way participate in a call for any special meeting of the stockholders of GS Inc.; or (i) assist, advise or encourage any person with respect to, or seek to do, any of the foregoing. 13 Section 6.2 Expenses. (a) GS Inc. shall be responsible for all expenses of the members of the Shareholders' Committee incurred in the operation and administration of this Agreement, including expenses of proxy solicitation for and tabulation of the Preliminary Vote, expenses incurred in preparing appropriate filings and correspondence with the SEC, lawyers', accountants', agents', consultants', experts', investment banking and other professionals' fees, expenses incurred in enforcing the provisions of this Agreement, expenses incurred in maintaining any necessary or appropriate books and records relating to this Agreement and expenses incurred in the preparation of amendments to and waivers of provisions of this Agreement. (b) Each Covered Person shall be responsible for all expenses incurred by him in connection with compliance with his obligations under this Agreement, including expenses incurred by the Shareholders' Committee or GS Inc. in enforcing the provisions of this Agreement relating to such obligations. Section 6.3 Filing of Schedule 13D or 13G. (a) In the event that a Covered Person is required to file a report of beneficial ownership on Schedule 13D or 13G with respect to the shares of Common Stock beneficially owned by him (for this purpose as determined by Exchange Act Rule 13d-3 and Exchange Act Rule 13d-5), such Covered Person agrees that, unless otherwise directed by the Shareholders' Committee, he will not file a separate such report, but will file a report together with the other Covered Persons, containing the information required by the Exchange Act, and he understands and agrees that such report shall be filed on his behalf by the Shareholders' Committee, any member thereof or any person authorized thereby. Such Covered Person shall cooperate fully with the other Covered Persons and the Shareholders' Committee to achieve the timely filing of any such report and any amendments thereto as may be required, and such Covered Person agrees that any information concerning him which he furnishes in connection with the preparation and filing of such report will be complete and accurate. (b) By his signature hereto, each Covered Person appoints the Shareholders' Committee and each member thereof, with full power of substitution and resubstitution, his true and lawful attorney-in-fact to execute such reports and any and all amendments thereto and to file such reports with all exhibits thereto and other documents in connection therewith with the SEC, granting to such attorneys, and each of them, full power and authority to do and perform each and every act and thing whatsoever that such attorney or attorneys may deem necessary, advisable or appropriate to carry out fully the 14 intent of this Section 6.3 as such Covered Person might or could do personally, hereby ratifying and confirming all acts and things that such attorney or attorneys may do or cause to be done by virtue of this power of attorney. Each Covered Person hereby further designates such attorneys as such Covered Person's agents authorized to receive notices and communications with respect to such reports and any amendments thereto. It is understood and agreed by each Covered Person that this appointment, empowerment and authorization may be exercised by the aforementioned persons for the period beginning on May 7, 1999 and ending on the date such Covered Person is no longer subject to the provisions of this Agreement (and shall extend thereafter for such time as is required to reflect, and only to reflect, that such Covered Person is no longer a party to this Agreement). Section 6.4 Adjustment upon Changes in Capitalization; Adjustments upon Changes of Control; Representatives, Successors and Assigns. (a) In the event of any change in the outstanding Common Stock by reason of stock dividends, stock splits, reverse stock splits, spin-offs, split-ups, recapitalizations, combinations, exchanges of shares and the like, the term "Common Stock" shall refer to and include the securities received or resulting therefrom, but only to the extent such securities are received in exchange for or in respect of Common Stock. Upon the occurrence of any event described in the immediately preceding sentence, the Shareholders' Committee shall make such adjustments to or interpretations of the restrictions of Section 2.1 (and, if it so determines, any other provisions hereof) as it shall deem necessary, advisable or appropriate or desirable to carry out the intent of such provisions. If the Shareholders' Committee deems it necessary, advisable or appropriate, any such adjustments may take effect from the record date, the "when issued trading date", the "ex dividend date" or another appropriate date. (b) In the event of any business combination, restructuring, recapitalization or other extraordinary transaction involving GS Inc., its Subsidiaries or any of their respective securities or assets as a result of which the Covered Persons shall hold voting securities of a person other than GS Inc., the Covered Persons agree that this Agreement shall also continue in full force and effect with respect to such voting securities of such other person formerly representing or distributed in respect of Common Stock, and the terms "Common Stock," "Covered Shares" and "Voting Shares," and "GS Inc." and "Company," shall refer to such voting securities formerly representing or distributed in respect of shares of Common Stock of GS Inc. and such other person, respectively. Upon the occurrence of any event described in the immediately preceding sentence, the Shareholders' Committee shall make such adjustments to or interpretations of the restrictions of Section 2.1 (and, if it so determines, any other provisions hereof) as it shall deem necessary, advisable or appropriate to carry out the intent of such provisions. 15 If the Shareholders' Committee deems it necessary, advisable or appropriate, any such adjustments may take effect from the record date or another appropriate date. (c) This Agreement shall be binding upon and inure to the benefit of the respective legal representatives, successors and assigns of the Covered Persons (and GS Inc. in the event of a transaction described in Section 6.4(b) hereof); provided, however, that a Covered Person may not assign this Agreement or any of his rights or obligations hereunder without the prior written consent of GS Inc., and any assignment without such consent by a Covered Person shall be void; and provided further that no assignment of this Agreement by GS Inc. or to a successor of GS Inc. (by operation of law or otherwise) shall be valid unless such assignment is made to a person which succeeds to the business of GS Inc. substantially as an entirety. Section 6.5 Further Assurances. Each Covered Person agrees to execute such additional documents and take such further action as may be reasonably necessary to effect the provisions of this Agreement. Section 6.6 Promotions to Designated Senior Officer. Each Participating Managing Director who is a party to this Agreement agrees to be bound by the Special Transfer Restrictions in place at such time as he may be promoted to Designated Senior Officer, notwithstanding that such Special Transfer Restrictions could be materially different than the Special Transfer Restrictions in place on the later of the Effective Date or such person's Participation Date. ARTICLE VII MISCELLANEOUS Section 7.1 Term of the Agreement; Termination of Certain Provisions. (a) The term of this Agreement shall continue until the first to occur of January 1, 2050 and such time as this Agreement is terminated by the affirmative vote of not less than 66 2/3% of the outstanding Covered Shares. (b) Unless this Agreement is previously terminated pursuant to Section 7.1(a) hereof, (i) any Covered Person who ceases to be a Covered Person for any reason other than death shall no longer be bound by the provisions of this Agreement (other than Sections 5.3, 6.2, 6.3, 6.5, 7.4, 7.5, 7.6, 7.8 and 7.10 (the "Continuing Provisions")), and such Covered Person's name shall be removed from Appendix A to this Agreement, and (ii) any Designated Senior Officer who ceases to hold a Designated Title shall no longer be bound by the provisions of Section 2.1(b) hereof. 16 (c) Unless this Agreement is theretofore terminated pursuant to Section 7.1(a) hereof, the estate of any Covered Person who ceases to be a Covered Person by reason of death shall from and after the date of such death be bound only by the Continuing Provisions, and such Covered Person's name shall be removed from Appendix A to this Agreement. (d) Any person who is a Covered Person under the Original Shareholders' Agreement but who is not a Covered Person (as defined herein) as of the Effective Date shall no longer be bound by the provisions of this Agreement (other than the Continuing Provisions) and such person's name shall be removed from Appendix A hereto, provided that it is understood that any such person who becomes a Covered Person after the Effective Date shall be bound by the provisions of this Agreement upon his appointment as a Participating Managing Director and that his name shall be added to Appendix A hereto. Section 7.2 Amendments. (a) Except as provided in this Section 7.2, provisions of this Agreement may be amended only by the affirmative vote of the holders of a majority of the outstanding Covered Shares. (b) This Section 7.2(b), Section 7.1(a) and Section 7.3(a)(i) may be amended only by the affirmative vote of the holders of 66 2/3% of the outstanding Covered Shares. Any amendment of any other provision of this Agreement that would have the effect, in connection with a tender or exchange offer by any person other than the Company as to which the Board of Directors of GS Inc. is recommending rejection, of permitting transfers which would not be permitted by the terms of this Agreement as then in effect shall also require the affirmative vote of the holders of 66 2/3% of the outstanding Covered Shares. (c) This Section 7.2(c), Article V, Section 7.3(b) and any other provision the amendment (or addition) of which has the effect of materially changing the rights or obligations of the Shareholders' Committee hereunder may be amended (or added) either (i) with the approval of the Shareholders' Committee and the affirmative vote of the holders of a majority of the Covered Shares or (ii) by the affirmative vote of the holders of 66 2/3% of the outstanding Covered Shares. (d) In addition to any other vote or approval that may be required under this Section 7.2, (i) any amendment to the General Transfer Restrictions that would make such General Transfer Restrictions materially more onerous to a Covered Person will not be enforceable against that Covered Person unless that Covered Person has consented to such amendment and (ii) any amendment to the Special Transfer Restrictions that would make such Special 17 Transfer Restrictions materially more onerous to a current Designated Senior Officer will not be enforceable against that Designated Senior Officer unless that Designated Senior Officer has consented to such amendment. (e) In addition to any other vote or approval that may be required under this Section 7.2, any amendment of this Agreement that has the effect of changing the obligations of GS Inc. hereunder to make such obligations materially more onerous to GS Inc. shall require the approval of GS Inc. (f) Each Covered Person understands that it is intended that each Participating Managing Director of the Company will be a Covered Person under this Agreement or will become a Covered Person upon his appointment to such position, and each Covered Person further understands that from time to time certain other persons may become Covered Persons and certain Covered Persons will cease to be bound by provisions of this Agreement pursuant to the terms hereof when they cease to be Participating Managing Directors. Accordingly, this Agreement may be amended by action of the Shareholders' Committee from time to time and without the approval of any other person, but solely for the purposes of (i) adding to Appendix A such persons as shall be made party to this Agreement pursuant to the terms hereof, such addition to be effective as of the time of such action or appointment, and (ii) removing from Appendix A such persons as shall cease to be bound by the provisions of this Agreement pursuant to Sections 7.1(b) or (c) hereof, which additions and removals shall be given effect from time to time by appropriate changes to Appendix A. (g) Each Covered Person agrees that the Shareholders' Committee, without the approval of any other person, may designate positions that may be held by senior executives of GS Inc. from time to time (each, a "Designated Title") that will subject such senior executives to the Special Transfer Restrictions pursuant to Section 2.1(b) hereof. (h) Section 2.1 may be amended with the approval of the Shareholders' Committee and GS Inc. without requiring the affirmative vote of the outstanding Covered Shares to decrease either or both of the percentages stated therein, provided, however, that in no event shall the percentage applicable to the Special Transfer Restrictions in Section 2.1(b) ever be less than the percentage applicable to the General Transfer Restrictions in Section 2.1(a). Section 7.3 Waivers. The Transfer Restrictions and the other provisions of this Agreement may be waived only as provided in this Section 7.3. (a) The holders of the outstanding Covered Shares may waive the Transfer Restrictions and the other provisions of this Agreement without the consent of any other person as follows: 18 (i) The Transfer Restrictions may be waived, in connection with any tender or exchange offer by any person other than the Company as to which the Board of Directors of GS Inc. is recommending rejection at the time of such waiver, only by the affirmative vote of the holders of 66 2/3% of the outstanding Covered Shares; (ii) The Transfer Restrictions may be waived, in connection with any tender or exchange offer by any person other than the Company as to which the Board of Directors of GS Inc. is recommending acceptance or is not making any recommendation with respect to acceptance at the time of such waiver, only by the affirmative vote of the holders of a majority of the outstanding Covered Shares; (iii) The Transfer Restrictions may be waived, in connection with any tender or exchange offer by the Company, by the affirmative vote of the holders of a majority of the outstanding Covered Shares; and (iv) In all circumstances other than those set forth in Sections 7.2 or 7.3(a)(i), (ii) and (iii), the provisions of this Agreement may be waived only by the affirmative vote of the holders of a majority of the outstanding Covered Shares; provided, however, that the holders of the outstanding Covered Shares may not waive the provisions of this Agreement in the circumstances set forth in Section 7.3(b). (b) The Shareholders' Committee may waive the Transfer Restrictions and the other provisions of this Agreement without the consent of any other person to permit: (i) Covered Persons to participate as sellers in underwritten public offerings of, and stock repurchase programs and tender or exchange offers by GS Inc. for, Common Stock; (ii) transfers of Covered Shares to organizations described in Section 501(c)(3) of the Code, including gifts to "private foundations" subject to the requirements of Section 509 of the Code; (iii) transfers of Covered Shares held in employee benefit plans of the Company either generally or in particular situations; and 19 (iv) particular Covered Persons or all Covered Persons to transfer Covered Shares in particular situations (such as transfers to family members, partnerships or trusts), but not generally. (c) In connection with any waiver granted under this Agreement, the Shareholders' Committee or the holders of the percentage of Covered Shares required for the waiver, as the case may be, may impose such conditions as they determine on the granting of such waivers. (d) The failure of the Company or the Shareholders' Committee at any time or times to require performance of any provision of this Agreement shall in no manner affect the rights at a later time to enforce the same. No waiver by the Company or the Shareholders' Committee of the breach of any term contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such breach or the breach of any other term of this Agreement. Section 7.4 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. Section 7.5 Resolution of Disputes. (a) The Shareholders' Committee shall have the sole and exclusive power to enforce the provisions of this Agreement. The Shareholders' Committee may in its sole discretion request GS Inc. to conduct such enforcement, and GS Inc. agrees to conduct such enforcement as requested and directed by the Shareholders' Committee. (b) Without diminishing the finality and conclusive effect of any determination by the Shareholders' Committee of any matter under this Agreement (and subject to the provisions of paragraphs (c) and (d) hereof), any dispute, controversy or claim arising out of or relating to or concerning the provisions of this Agreement shall be finally settled by arbitration in New York City before, and in accordance with the rules then obtaining of, the New York Stock Exchange, Inc. ("NYSE"), or if the NYSE declines to arbitrate the matter, the American Arbitration Association ("AAA") in accordance with the commercial arbitration rules of the AAA. (c) Notwithstanding the provisions of paragraph (b), and in addition to its right to submit any dispute or controversy to arbitration, the Shareholders' Committee may bring, or may cause GS Inc. to bring, on behalf of the Shareholders' Committee or on behalf of one or more Covered Persons, an action or special proceeding in a state or federal court of competent jurisdiction sitting in the State of Delaware, whether or not an arbitration 20 proceeding has theretofore been or is ever initiated, for the purpose of temporarily, preliminarily or permanently enforcing the provisions of this Agreement and, for the purposes of this paragraph (c), each Covered Person (i) expressly consents to the application of paragraph (d) to any such action or proceeding, (ii) agrees that proof shall not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would be inadequate and (iii) irrevocably appoints each General Counsel of GS Inc., c/o The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801 as such Covered Person's agent for service of process in connection with any such action or proceeding, who shall promptly advise such Covered Person of any such service of process. (d) Each Covered Person hereby irrevocably submits to the exclusive jurisdiction of any state or federal court located in the State of Delaware over any suit, action or proceeding arising out of or relating to or concerning this Agreement that is not otherwise arbitrated according to the provisions of paragraph (b) hereof. This includes any suit, action or proceeding to compel arbitration or to enforce an arbitration award. The parties acknowledge that the forum designated by this paragraph (d) has a reasonable relation to this Agreement, and to the parties' relationship with one another. Notwithstanding the foregoing, nothing herein shall preclude the Shareholders' Committee or GS Inc. from bringing any action or proceeding in any other court for the purpose of enforcing the provisions of this Section 7.5. The agreement of the parties as to forum is independent of the law that may be applied in the action, and they each agree to such forum even if the forum may under applicable law choose to apply non-forum law. The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding brought in any court referred to in paragraph (d). The parties undertake not to commence any action arising out of or relating to or concerning this Agreement in any forum other than a forum described in paragraph (d). The parties agree that, to the fullest extent permitted by applicable law, a final and non-appealable judgment in any such suit, action or proceeding in any such court shall be conclusive and binding upon the parties. Section 7.6 Relationship of Parties. The terms of this Agreement are intended not to create a separate entity for United States federal income tax purposes, and nothing in this Agreement shall be read to create any partnership, joint venture or separate entity among the parties or to create any trust or other fiduciary relationship between them. 21 Section 7.7 Notices. (a) Any communication, demand or notice to be given hereunder will be duly given (and shall be deemed to be received) when delivered in writing by hand or first class mail or by telecopy to a party at its address as indicated below: If to a Covered Person, c/o The Goldman Sachs Group, Inc. One New York Plaza 37th Floor New York, New York 10004 Fax: (212) 482-3966 Attention: General Counsel; If to the Shareholders' Committee, at Shareholders' Committee under the Shareholders' Agreement, c/o The Goldman Sachs Group, Inc. One New York Plaza 37th Floor New York, New York 10004 Fax: (212) 482-3966 Attention: General Counsel; and If to GS Inc., at The Goldman Sachs Group, Inc. One New York Plaza 37th Floor New York, New York 10004 Fax: (212) 482-3966 Attention: General Counsel. GS Inc. shall be responsible for notifying each Covered Person of the receipt of a communication, demand or notice under this Agreement relevant to such Covered Person at the address of such Covered Person then in the records of GS Inc. (and each Covered Person shall notify GS Inc. of any change in such address for communications, demands and notices). (b) Unless otherwise provided to the contrary herein, any notice which is required to be given in writing pursuant to the terms of this Agreement may be given by telecopy. 22 Section 7.8 Severability. If any provision of this Agreement is finally held to be invalid, illegal or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired and (b) the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. Section 7.9 Right to Determine Tender Confidentially. In connection with any tender or exchange offer for all or any portion of the outstanding Common Stock, subject to compliance with all applicable restrictions on transfer in this Agreement or any other agreement with GS Inc., each Covered Person will have the right to determine confidentially whether such Covered Person's Covered Shares will be tendered in such tender or exchange offer. Section 7.10 No Third-Party Rights. Nothing expressed or referred to in this Agreement will be construed to give any person other than the parties to this Agreement any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the parties to this Agreement and their successors and assigns. Section 7.11 Section Headings. The headings of sections in this Agreement are provided for convenience only and will not affect its construction or interpretation. Section 7.12 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute but one and the same instrument. 23 IN WITNESS WHEREOF, the parties hereto have duly executed or caused to be duly executed this Agreement. THE GOLDMAN SACHS GROUP, INC. By: /s/ Esta E. Stecher ------------------------------ Name: Esta E. Stecher Title: Executive Vice President and General Counsel Dated : June 22, 2004 24 -----END PRIVACY-ENHANCED MESSAGE-----