GOLDMAN SACHS GROUP INC/
EX-10.40: AMENDMENT TO 1999 STOCK INCENTIVE PLAN
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<DESCRIPTION>EX-10.40: AMENDMENT TO 1999 STOCK INCENTIVE PLAN
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<P align="right"><FONT size="2">EXHIBIT 10.40</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;20, 2002, the Compensation Committee of the Board of Directors
of The Goldman Sachs Group, Inc. approved the following resolution amending The
Goldman Sachs 1999 Stock Incentive Plan. The Goldman Sachs 1999 Stock
Incentive Plan is filed as Exhibit&nbsp;10.6 to this Annual Report on Form&nbsp;10-K.
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<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>RESOLVED</B>, that, effective as of the date hereof, Section&nbsp;1.6.1 of the SIP
shall be amended to read in its entirety as follows:
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    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;1.6.1 Total shares available. Subject to adjustment
pursuant to Section&nbsp;1.6.2, the total number of shares of Common
Stock which may be delivered pursuant to Awards granted under the
Plan shall not exceed three hundred million (300,000,000) shares.
If, after the effective date of the Plan, any Award is forfeited
or otherwise terminates or is canceled without the delivery of
shares of Common Stock, shares of Common Stock are surrendered or
withheld from any Award to satisfy a grantee&#146;s income tax or other
withholding obligations, or shares of Common Stock owned by a
grantee are tendered to pay the exercise price of any Award
granted under the Plan, then the shares covered by such forfeited,
terminated or canceled Award or which are equal to the number of
shares surrendered, withheld or tendered shall again become
available for transfer pursuant to Awards granted or to be granted
under this Plan. Notwithstanding the foregoing, but subject to
adjustment as provided in Section&nbsp;1.6.2, no more than two hundred
million shares of Common Stock shall be delivered pursuant to the
exercise of Incentive Stock Options. The maximum number of shares
of Common Stock with respect to which Options or stock
appreciation rights may be granted to an individual grantee in any
fiscal year shall equal three million five hundred thousand
(3,500,000) shares of Common Stock. Any shares of Common Stock
(a)&nbsp;delivered by GS Inc., (b)&nbsp;with respect to which Awards are
made by GS Inc. and (c)&nbsp;with respect to which GS Inc. becomes
obligated to make Awards, in each case through the assumption of,
or in substitution for, outstanding awards previously granted by
an acquired entity, shall not be counted against the shares of
Common Stock available for Awards under this Plan. Shares of
Common Stock which may be delivered pursuant to Awards may be
authorized but unissued Common Stock or authorized and issued
Common Stock held in GS Inc.&#146;s treasury or otherwise acquired for
the purposes of the Plan.&#148;</FONT></TD>
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