Document:

Exhibit

EXHIBIT 10.4

AMENDMENT TO THE

MORGAN STANLEY 401(k) PLAN

Morgan Stanley Services Group Inc. (the “Company”) hereby amends the Morgan Stanley 401(k) Plan, effective as of the dates set forth herein, as follows:

		
	1.
	Effective January 1, 2019, Section 2, Definitions, is amended by inserting the following after the second sentence in the definition of “Earnings”:

“Effective January 1, 2019, Earnings shall also include amounts paid to Financial Advisors in the Client Assistance Center intended to smooth the transition from a base salary and commission pay arrangement to a base salary and bonus pay arrangement. Notwithstanding the foregoing sentence, all such payments shall be included as Earnings for purposes of determining Company Contributions under the Plan, but no such amounts paid before April 1, 2019 shall be included in any Elective Deferral election by the Participant.”

		
	2.
	Effective January 1, 2020, Section 2, Definitions, is further amended by inserting the following at the end of the definition of “Eligible Employee”:

“Notwithstanding the preceding sentence, effective January 1, 2020, the term ‘Eligible Employee’ shall include any Employee coded and paid as an hourly employee who is first hired or first transferred to a Participating Company as of the later of January 1, 2020 or the Employee’s hire date.”

		
	3.
	Effective January 1, 2020, Section 2, Definitions, is further amended by inserting the phrase “or an Hourly Employee” at the end of the definition of “Full Time Employee.”

		
	4.
	Effective January 1, 2020, Section 2, Definitions, is further amended by inserting the following new definition in appropriate alphabetical order:

“ ‘Hourly Employee’ means, an Eligible Employee who is paid on an hourly basis.”

		
	5.
	Effective January 1, 2020, Section 3, Participation, is amended to re-designate subsection 3(a)(iii) as subsection 3(a)(iv) and to insert the following as a new subsection 3(a)(iii):

“(iii)    Effective January 1, 2020, an Employee who is hired as an Hourly Employee may elect to become a Participant on any Entry Date coincident with the later of (A) his or her Employment Commencement Date or (B) January 1,

 2020, without regard to the number of hours he or she is scheduled to work per week..  Such an individual shall become eligible to receive Company Contributions, subject to Section 6, on the first day he or she may elect to become a Participant pursuant to the foregoing provisions.”

		
	6.
	Effective January 1, 2020, Section 6, Company Contributions, is amended  to replace subsection 6(d)(ii)(C) with the following:

“(C) prior to January 1, 2020, the mortality table issued by the Internal Revenue Service in Revenue Ruling 2007-67 projected to 2020 using projection scale AA, and after December 31, 2019, the mortality table issued by the Internal Revenue Service in Internal Revenue Service Notice 2019-26, except that no mortality is assumed prior to age 65, and”

		
	7.
	Effective July 1, 2019, Appendix A, IIG Participating Companies, is amended by inserting “through July 1, 2019” at the end of the entry for Morgan Stanley International Incorporated, and inserting new entries as follows:

“Morgan Stanley International Holdings Inc. (“MSIHI”), with respect to MSIHI employees primarily servicing business units or cost centers of otherwise Participating Companies, effective July 1, 2019”

		
	8.
	Effective July 1, 2019, Appendix B, Morgan Stanley Participating Companies, is amended by inserting “- July 1, 2019” at the end of the Date of Adoption entry for Morgan Stanley International Incorporated, and inserting a new entry as follows:

	
		
	“Morgan Stanley International Holdings Inc. (“MSIHI”), excluding effective July 1, 2019, MSIHI employees primarily servicing business units or cost centers of subsidiaries of the former DWD, determined immediately prior to DWD’s merger with Morgan Stanley Group Inc., that are not participating Employers under DPSP”
	July 1, 2019

9.    Effective January 1, 2020, Appendix B, Morgan Stanley Participating Companies, is amended by inserting a new entry at the end thereof as follows:    

“Solium Capital LLC or Capshare LLC.  Any individual who became an Eligible Employee in connection with the acquisition of Solium Capital LLC and Capshare LLC pursuant to the Plan of Arrangement Under Section 193 of the Business Corporations Act (Alberta) involving Morgan Stanley, Morgan Stanley Rose AcquisitionCo ULC (F/K/A 2172350 Alberta Ltd.) and Solium Capital Inc. effected as of May 1, 2019, and who was, immediately prior to becoming an Eligible Employee, an employee of Solium Capital LLC or Capshare LLC, shall (i) become eligible to commence participation in the Plan

effective January 1, 2020, and (ii) the term “Period of Service” shall include such individual’s service with Solium Capital LLC or Capshare LLC for purposes of determining the vested percentage of such Eligible Employee’s Plan Benefit pursuant to Section 10 of the Plan.  An Hour of Service as defined in Section 4(b) of the Plan shall include each hour for which a former employee of Solium Capital LLC or Capshare LLC was paid, or entitled to payment, for the performance of services for Solium Capital LLC or Capshare LLC.

The Solium Capital, LLC, 401(k) Retirement Plan (the “Solium 401(k) Plan”) shall be merged with and into the Plan effective at the end of December 31, 2019.  The contributions, benefits and other rights of Participants in the Solium 401(k) Plan with respect to the period prior to such merger are determined under the terms of the Solium 401(k) Plan as in effect prior to its merger with the Plan.  Any person who was covered under the Solium 401(k) Plan prior to its merger with the Plan and who was entitled to benefits under the provisions of the Solium 401(k) Plan as in effect prior to its merger with the Plan shall continue to be entitled to the same amount of accrued benefits without change under the Plan, and such benefits under the provisions of the Solium 401(k) Plan shall vest in accordance with the provisions of the Solium 401(k) Plan in effect immediately prior to such merger or, if sooner, in accordance with the provisions of this Plan; provided, however, that effective on December 31, 2019, for benefits with annuity starting dates beginning on or after December 31, 2019, the forms of distribution (including for these purposes, the time, manner and medium of distribution) available with respect to such accrued benefits shall be the forms of distribution available under the otherwise applicable provisions of the Plan (plus any other forms of distribution that were available under the Solium 401(k) Plan immediately prior to December 31, 2019 and that may not be eliminated under Code section 411(d)(6)).”

*  *  *  *  *  *  *  *  *

IN WITNESS WHEREOF, the Company has caused this Amendment to be executed on its behalf as of this 12th day of December, 2019.

MORGAN STANLEY SERVICES GROUP INC.

By:    /s/ Jeffrey Brodsky                                        

Title:    Chief Human Resources Officertoca-ex42_195.htm

Exhibit 4.2

DESCRIPTION OF COMMON STOCK

 

General

 

The following description summarizes the most important terms of our common stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of the matters set forth in this “Description of Common Stock,” you should refer to our amended and restated certificate of incorporation (the “Restated Certificate”), and amended and restated bylaws (the “Restated Bylaws”), which are included as exhibits to our Annual Report on Form 10-K, and to the applicable provisions of Delaware law. Our authorized capital stock consists of 200,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of undesignated preferred stock, par value $0.001 per share.  Our board of directors is authorized, without stockholder approval except as required by the listing standards of The Nasdaq Stock Market LLC, to issue additional shares of our capital stock.  In addition, our board of directors may, without further action by our stockholders, designate the rights, preferences, privileges, and restrictions of our preferred stock in one or more series.

 

Voting Rights

 

Our common stock is entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors, and does not have cumulative voting rights. Accordingly, the holders of a majority of the shares of our common stock entitled to vote in any election of directors can elect all of the directors standing for election.

 

Dividends

 

Subject to preferences that may be applicable to any then-outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared from time to time by our board of directors out of legally available funds.

 

Liquidation

 

In the event of our liquidation, dissolution or winding-up, holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference granted to the holders of any outstanding shares of preferred stock.

 

Rights and Preferences

 

Holders of our common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that we may designate and issue in the future.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A.

 

Stock Exchange Listing

 

Our common stock is listed on the Nasdaq Global Select Market under the symbol “TOCA”.

 

Anti-Takeover Provisions

 

 

 

Delaware Law

 

We are subject to Section 203 of the Delaware General Corporate Law (“DGCL”), which generally prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:

 

	
 
	
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prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

	
 
	
•
	
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding upon consummation of the transaction, excluding for purposes of determining the number of shares outstanding (1) shares owned by persons who are directors and also officers and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

	
 
	
•
	
on or subsequent to the consummation of the transaction, the business combination is approved by the board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

 

Section 203 of the DGCL defines a business combination to include:

 

	
 
	
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any merger or consolidation involving the corporation and the interested stockholder;

	
 
	
•
	
any sale, transfer, pledge or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

	
 
	
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subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder;

	
 
	
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subject to exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; and

	
 
	
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the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

 

In general, Section 203 of the DGCL defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by the entity or person.

 

The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

 

Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws Provisions

 

Provisions of our Restated Certificate and Restated Bylaws, may delay or discourage transactions involving an actual or potential change in our control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests. Therefore, these provisions could adversely affect the price of our common stock. Among other things, our Restated Certificate and Restated Bylaws:

 

	
 
	
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permit our board of directors to issue up to 10,000,000 shares of preferred stock, with any rights, preferences and privileges as they may designate;

	
 
	
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provide that the authorized number of directors may be changed only by resolution adopted by a majority of the board of directors;

 

 

	
 
	
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provide that the board of directors or any individual director may only be removed with cause and the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our then outstanding common stock;

	
 
	
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provide that all vacancies, including newly created directorships, may, except as otherwise required by law or subject to the rights of holders of preferred stock as designated from time to time, be filled by the affirmative vote of a majority of directors then in office, even if less than a quorum;

	
 
	
•
	
divide our board of directors into three classes;

	
 
	
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require that any action to be taken by our stockholders must be effected at a duly called annual or special meeting of stockholders and not be taken by written consent or electronic transmission;

	
 
	
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provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner and also specify requirements as to the form and content of a stockholder’s notice;

	
 
	
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do not provide for cumulative voting rights (therefore allowing the holders of a majority of the shares of common stock entitled to vote in any election of directors to elect all of the directors standing for election, if they should so choose); and

	
 
	
•
	
provide that special meetings of our stockholders may be called only by the chairman of the board, our Chief Executive Officer or by the board of directors pursuant to a resolution adopted by a majority of the total number of authorized directors (whether or not there exists any vacancies).

 

The amendment of any of these provisions, with the exception of the ability of our board of directors to issue shares of preferred stock and designate any rights, preferences and privileges thereto, would require the affirmative vote of the holders of at least 66 2/3% of the voting power of all of our then outstanding common stock.

 

The foregoing provisions may make it more difficult for our existing stockholders to replace our board of directors as well as for another party to obtain control of us by replacing our board of directors. Since our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. In addition, the authorization of undesignated preferred stock makes it possible for our board of directors to issue preferred stock with voting or other rights or preferences that could impede the success of any attempt to change our control.

 

These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions are also designed to reduce our vulnerability to an unsolicited acquisition proposal and to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and may have the effect of deterring hostile takeovers or delaying changes in our control or management. As a consequence, these provisions also may inhibit fluctuations in the market price of our stock that could result from actual or rumored takeover attempts.

 

Choice of Forum

 

Our Restated Bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a fiduciary duty owed by any of our directors, officers or other employees to us or our stockholders; (iii) any action asserting a claim against us or any of our directors or officers or other employees arising pursuant to any provision of the DGCL, the Restated Certificate or Restated Bylaws; or (iv) any action asserting a claim against us or any of our directors or officers or other employees governed by the internal affairs doctrine. The enforceability of similar choice of forum provisions in other companies’ bylaws has been challenged in legal proceedings, and it is possible that a court could find these types of provisions to be inapplicable or unenforceable. This choice of forum provision does not apply to suits brought to enforce a duty or liability created by the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or any other claim for which the federal courts have exclusive jurisdiction.

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