Exhibit 10.1

AMENDMENT TO
AMENDED AND RESTATED
EMPLOYMENT AGREEMENT

     This Amendment (the “Amendment”) entered into as of February 14, 2006
amends the AMENDED AND RESTATED EMPLOYMENT AGREEMENT by and between Morgan
Stanley (the “Company”), and John J. Mack (the “Executive”) dated as of
September 20, 2005 as further amended on December 13, 2005 (the “Agreement”).

     WHEREAS, the Compensation, Management Development and Succession Committee
of the Board of Directors of the Company (the “Committee”) and the Executive
have determined that it is in the best interests of the Company and its
shareholders to amend the Agreement to eliminate the Executive’s right to
receive cash severance in the event his employment is terminated other than by
reason of Cause, death or Disability or in the event the Executive terminates
his employment for Good Reason (as such terms are defined in the Agreement);

     NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Executive agree as follows:

     1. Subsection (i) of Section 5(a) of the Agreement is hereby deleted and
replaced with the following: “(i) the Company shall pay to the Executive in a
lump-sum cash payment as soon as practicable after the Date of Termination the
Executive’s Annual Base Salary through the Date of Termination to the extent not
theretofore paid.”;

     2. The references to “Section 5(a)(i)(A)” in Section 5(a)(iv) and Section
5(b) of the Agreement are hereby deleted and replaced with “Section 5(a)(i)”;
and

     3. Section 5(c) is amended so that:

  a)    The words “the Accrued Obligations, and” are deleted.     b)  The
following is added at the end of Section 5(c) prior to the period: “, and (i)
the amount specified in Section 5(a)(i) plus (ii) the excess of (1) the product
of (x) the Executive’s annualized Total Compensation for the most recently
completed fiscal year and (y) a fraction, the numerator of which is the number
of days in the fiscal year in which the Date of Termination occurs through the
Date of Termination, and the denominator of which is 365, over (2) the

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    Annual Base Salary to the extent paid for the year that includes the Date of
Termination (the amounts in Sections 5(c)(i) and (ii), the “Accrued
Obligations”)”.         c)    The following is added as the second paragraph of
Section 5(c): “For purposes of determining the Executive's annualized Total
Compensation in respect of any fiscal year for which Long-Term Incentive
Compensation was awarded in a form other than restricted stock units, restricted
stock or cash, the value of such award shall be determined by the Committee in
its good faith discretion.”

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      IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand
and, pursuant to the authorization from the Committee, the Company has caused
these presents to be executed in its name and on its behalf, all as of the day
and year first above written.

    /s/ John J. Mack    

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    John J. Mack           MORGAN STANLEY               By:   /s/ Karen C.
Jamesley    

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    Name:  Karen C. Jamesley
Title:  H.R. Director

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