Document:

Tax Deferred Equity Participation Plan

 EXHIBIT 10.1 
 MORGAN STANLEY 
 TAX DEFERRED EQUITY PARTICIPATION PLAN 
 Amended and Restated as of June 20, 2006 

 TABLE OF CONTENTS 
  

			
	 SECTION
	  	PAGE
	 Purposes of the Plan
	  	1
		
	 Definitions
	  	1
		
	 Election by a Company to Participate in the Plan
	  	5
		
	 Stock Subject to the Plan
	  	6
		
	 Administration of the Plan
	  	6
		
	 Eligibility
	  	7
		
	 Awards under the Plan
	  	7
		
	 Funding of the Plan
	  	8
		
	 Maintenance of Accounts
	  	8
		
	 Payments under the Plan
	  	9
		
	 Securities Matters
	  	9
		
	 Adjustment in Certain Events
	  	10
		
	 No Special Employment Rights
	  	10
		
	 Payroll and Withholding Taxes
	  	10
		
	 Termination and Amendment
	  	11
		
	 Shareholder Approval Required
	  	12
		
	 Effect of Revocation Event
	  	12
		
	 Miscellaneous
	  	12

 MORGAN STANLEY 
 TAX DEFERRED EQUITY PARTICIPATION PLAN 
 (Amended and Restated as of June 20, 2006)

  

	1.	Purposes of the Plan. 

 The primary purpose of the
Morgan Stanley Tax Deferred Equity Participation Plan is to promote the long-term growth and financial success of Morgan Stanley, a Delaware corporation (“Morgan Stanley”), by attracting and retaining employees of outstanding
ability and assisting Morgan Stanley in promoting a greater identity of interest between Participants and Morgan Stanley’s shareholders. 
  

	2.	Definitions. 

 Unless determined otherwise by the
Committee and set forth in the applicable Award Certificate, capitalized terms used herein without definition have the meanings set forth below. 
 (a) “Account” means a book account maintained by Morgan Stanley reflecting, with respect to each Award, the number of shares of Stock to be distributed to each Participant upon a Realization Event. 
 (b) “Administrator” means the individual or individuals to whom the Committee delegates authority under the Plan in accordance with
Section 5. 
 (c) “Affiliate” means any corporation which is a member of a “controlled group of corporations”
(as defined in Code section 414(b)) of which Morgan Stanley is a member and any trade or business (whether or not incorporated) under “common control” (as defined in Code section 414(c)) with Morgan Stanley. 
 (d) “Award” means an award granted to a Participant by the Committee pursuant to Section 7. 
 (e) “Award Certificate” means a written certificate (including in electronic form) issued by the Company and signed on behalf of the
Company (which signature may be in facsimile) and sets forth the terms and conditions of the Award. 
 (f) “Board” means the
Board of Directors of Morgan Stanley. 
 (g) “Change in Control”: 
 (A) In respect of each Award having an effective date on or before December 31, 1997, “Change in Control”
means: 
 (i) The acquisition by any person (including a group, within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act), other than (I) any employee plan established by a Company or (II) any of Morgan Stanley’s affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act), without the prior approval of the Board, of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either the then outstanding shares of Stock or 

  

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the combined voting power of Morgan Stanley’s then outstanding voting securities in a transaction or series of transactions not approved by a majority
of the Directors as of the Effective Date; or 
 (ii) A change in the composition of the Board such that individuals who, as
of the Effective Date, constitute the Board cease for any reason to constitute at least a majority thereof, provided that any person who becomes a Director subsequent to the Effective Date and whose nomination for election is approved by at
least a majority of the Directors as of the Effective Date, (other than a nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the Directors of
Morgan Stanley, as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) shall be deemed a Director as of the Effective Date. 
 (B) In respect of each Award having an effective date on or after January 1, 1998, “Change in Control” shall have
the meaning ascribed to such term by the Committee in respect of such Award and set forth in the applicable Award Certificate. 
 (h)
“Change in Ownership” shall have the meaning ascribed to such term by the Committee and set forth in the applicable Award Certificate. 
 (i) “Code” means the Internal Revenue Code of 1986, as amended, and the rules, regulations and guidance thereunder and any successor thereto. 
 (j) “Committee” means such committee of two or more persons as the Board shall appoint from time to time to administer the Plan. It is
intended that the members of the Committee shall be “non-employee directors” within the meaning of Rule 16b-3 and “outside directors” within the meaning of Section 162(m); however, the mere fact that a Committee
member shall fail to qualify under either of these requirements shall not invalidate any Award made by the Committee that is otherwise valid. 
 (k) “Company” means each of Morgan Stanley, its Affiliates and any Subsidiary the employees of which participate in the Plan pursuant to Section 3(a). 
 (l) “Compensation” for a year means the annual rate of salary payable to the Participant for such year (disregarding any salary
reduction agreements under any deferred compensation plan, including plans described in Code section 125 or 401(k)) plus the annual incentive bonus payable to such Participant for such year. Compensation shall not include the amount of any
contribution payable under the Plan. 
 (m) “Disability”: 
 (i) In respect of each Award having an effective date prior to June 20, 2006, “Disability” means any physical or
mental condition that would qualify a Participant for a disability benefit under any long-term disability plan maintained by any Company and applicable to the Participant. 
 (ii) In respect of each Award having an effective date on or after June 20, 2006, “Disability” has the meaning
determined by the Committee and set forth in the applicable Award Certificate. 
  

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 (n) “Dividend Equivalent” has the meaning set forth in Section 9(b). 
 (o) “Effective Date” means January 1, 1994. 
 (p) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the applicable rules and regulations thereunder and any successor thereto. 
 (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor thereto. 
 (r) “Fair Market Value”: 
 (i) In respect of each Award having an effective date before June 20, 2006, “Fair Market Value” means: 
 (a) for purposes of determining the number of shares of Stock to be allocated to an Award made pursuant to Section 7 and to a
Participant’s Account pursuant to Section 9(a), the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee; and 
 (b) for purposes of crediting a Participant’s Account with shares of Stock based upon cash dividends paid or deemed to be paid on
shares of Stock credited to the Participant’s Account pursuant to Section 9(b), the average of the high and low sales prices, regular way, of a share of Stock as reported on the New York Stock Exchange Composite Tape (the “High/Low
Price”) on the relevant dividend payment date, or, if Stock is not traded on public markets on the relevant dividend payment date, the first preceding date on which Stock is traded on public markets; provided, however, that in the
event a “Fair Market Value” cannot be determined pursuant to the foregoing, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee; and

 (c) for purposes of distributing cash, either in lieu of a fractional share following a Realization Event pursuant to
Section 10, in lieu of Stock pursuant to Section 11(b) or in lieu of Stock following a Revocation Event pursuant to Section 20, the High/Low Price on the date of the Realization Event or the Revocation Event, as applicable, or, if
Stock is not traded on public markets on the date of the Realization Event or the Revocation Event, the first preceding date on which Stock is traded on public markets; provided, however, that in the event a “Fair Market
Value” cannot be determined pursuant to the foregoing, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee. 
 (ii) In respect of each Award having an effective date on or after June 20, 2006, “Fair Market Value” means, with
respect to a share of Stock, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee. 
  

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 (s) “Investment Period”, with respect to an Award, means: (A) in respect of each
Award having an effective date on or before December 31, 1997, the five-year period beginning on the date as of which such Award is granted; and (B) in respect of each Award having an effective date on or after January 1, 1998, the
period beginning on the date as of which the Award is granted and concluding on the date specified by the Committee as the conclusion of the Investment Period in respect of such Award. 
 (t) “Minimum Eligible Compensation” means $100,000 with respect to the calendar year ending December 31, 1997, and with respect to
each fiscal year of the Company beginning on or after December 1, 1997, $100,000 or such greater amount as the Committee shall determine. 
 (u) “Participant” means a key employee of any Company who is determined by the Committee to be eligible to participate in the Plan and who is designated as a Participant pursuant to Section 6. 
 (v) “Plan” means the Morgan Stanley Tax Deferred Equity Participation Plan. 
 (w) “Realization Event”: 
 (i) In respect of each Award having an effective date on or before December 31, 1997, “Realization Event” means the first to occur of (i) the expiration of the Investment Period with respect
to such Award, (ii) the occurrence of a Change in Control, (iii) the termination of the Plan pursuant to Section 17, or (iv) the Participant’s death; 
 (ii) In respect of each Award having an effective date on or after January 1, 1998 and prior to June 20, 2006,
“Realization Event” means the first to occur of (i) the expiration of the Investment Period with respect to such Award, (ii) the occurrence of a Change in Ownership, (iii) the termination of the Plan pursuant to
Section 17, or (iv) the Participant’s death; provided, however, that if a Realization Event as so defined would occur at a time when the Participant is considered by the Company to be one of its “covered
employees” within the meaning of Section 162(m), then, unless the Committee shall determine otherwise in its sole discretion, the Realization Event shall automatically be deferred until the first date after the Participant has ceased to be
considered such a “covered employee”; and 
 (iii) In respect of each Award having an effective date on or after
June 20, 2006, “Realization Event” shall have the meaning ascribed to such term by the Committee in respect of such Award and set forth in the applicable Award Certificate. 
 (x) “Retirement”: 
 (i) In respect of each Award having an effective date prior to June 20, 2006, “Retirement” means a Participant’s termination of employment with all Companies on or after: (i) the date (the “Pension
Retirement Date”) on which the Participant would first be eligible to retire under any tax-qualified defined benefit pension plan maintained by a Company in which the Participant participates; or (ii) in respect of any Award as the
Committee determines, such date preceding the Pension Retirement Date as the Committee may determine; and 
 (ii) In respect
of each Award having an effective date on or after June 20, 2006, “Retirement” means a Participant’s termination of employment under the circumstances determined by the Committee and set forth in the applicable Award
Certificate. 
  

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 (y) “Revocation Event” means a determination by the Board in its sole discretion that
any of the following has occurred or is likely to occur: 
 (i) A determination by the Department of Labor or a court of
competent jurisdiction that the assets of the Trust are subject to Part 4 of Subtitle B of Title I of ERISA or that the Plan is a “pension plan” (within the meaning of ERISA section 3(2)) subject to Parts 2, 3 and
4 of Subtitle B of Title I of ERISA; 
 (ii) A determination by the Internal Revenue Service or a court of competent
jurisdiction that any amount deposited in the Trust is taxable to any Participant or beneficiary prior to the distribution of such amount; or 
 (iii) A determination by the Company’s independent public accountants that the accounting expense to the Companies of maintaining the Trust under the Plan is based on a value of the shares of Stock other than
such value on the date shares of Stock are (A) acquired by the Trust or (B) credited to a Participant’s Account. 
 (z)
“Rule 16b-3” means Rule 16b-3 promulgated under Section 16 of the Exchange Act. 
 (aa) “Section
162(m)” means Section 162(m) of the Code (or any successor provisions thereto). 
 (ab) “Section 409A” means
Section 409A of the Code (or any successor provisions thereto). 
 (ac) “Securities Act” means the Securities Act of
1933, as amended, and any successor thereto. 
 (ad) “Stock” means the common stock, par value $.01 per share, of Morgan
Stanley, or the common stock of any successor thereto. 
 (ae) “Subsidiary” means (i) a corporation or other entity
with respect to which Morgan Stanley, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to elect at least a majority of the members of such corporation’s board of directors or
analogous governing body, or (ii) any other corporation or other entity in which Morgan Stanley, directly or indirectly, has an equity or similar interest and which the Committee designates as a Subsidiary for purposes of the Plan. 

(af) “Trust” means any trust established or maintained by the Company in connection with an employee benefit plan of the Company
(including the Plan) under which current or former employees of the Company constitute the principal beneficiaries. 
 (ag)
“Trustee” means the trustee of the Trust. 
  

	3.	Participation in the Plan by a Subsidiary’s Employees. 

 (a) Subject to the approval of the Committee, the employees of any Subsidiary may be eligible to participate in the Plan. 
  

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 (b) No Subsidiary or Affiliate shall have any power with respect to the Plan except as specifically
provided in the Plan. 
 (c) Morgan Stanley may require each Company (other than Morgan Stanley), as a condition of its employees’
participation in the Plan, to enter into an agreement obligating such Company to pay to Morgan Stanley, in cash, the appropriate value, as determined by the Board, of any Stock that Morgan Stanley contributes to the Trust in respect of Participants
employed by such Company and/or to reimburse Morgan Stanley for any other amounts paid by Morgan Stanley hereunder, directly or indirectly, in respect of Participants employed by such Company. 
  

	4.	Stock Subject to the Plan. 

 Subject to adjustment
as provided in Section 13, the Committee may grant Awards under the Plan with respect to a number of shares of Stock that, in the aggregate, does not exceed 3,500,0001 shares. In the event that any Award is forfeited for any reason, the number of shares of Stock making up such forfeited Award (other than shares of Stock
credited to such Participant’s Account solely as a result of earnings on such Award) shall again be available for grant under the Plan. 
  

	5.	Administration of the Plan. 

 (a) The Plan shall be
administered by the Committee. The Committee may, but need not, from time to time delegate some or all of its authority under the Plan to an Administrator consisting of one or more members of the Committee or one or more directors or officers of the
Company; provided, however, that the Committee may not delegate its authority (i) to make Awards to any key employee (A) who is subject as of the effective date of the Award to the reporting rules under Section 16(a) of
the Exchange Act or (B) who is, as of the effective date of the Award, one of Morgan Stanley’s “covered employees” within the meaning of Section 162(m), (ii) to construe and interpret the Plan or (iii) under
Section 17(a) of the Plan. Any delegation hereunder shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation or thereafter. Nothing in the Plan shall be construed as obligating the Committee to
delegate authority to an Administrator, and the Committee may at any time rescind or modify the authority delegated to an Administrator hereunder or appoint a new Administrator. At all times, the Administrator appointed hereunder shall serve in such
capacity at the pleasure of the Committee. Any action undertaken by the Administrator in accordance with the Committee’s delegation of authority shall have the same force and effect as if undertaken directly by the Committee, and any reference
to the Committee in the Plan shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to the Administrator. 
 (b) The Committee shall have full authority, consistent with the Plan, to administer the Plan, including authority to interpret and construe any Plan provision and to adopt such rules and regulations and such forms of
elections as it may deem necessary or appropriate. Decisions of the Committee shall be final and binding on all parties. In the event of a disagreement between the Committee and the Administrator, the Committee’s determination on such matter
shall be final and binding on all parties, including the Administrator. Subject to Section 3(d), all expenses of the Plan shall be paid by Morgan Stanley. 
  

	1	This number represents the maximum number of shares of Stock available for Awards under the Plan that was initially approved by the Board and the stockholders of
Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number made in accordance with Section 4 or Section 13 after the Effective Date. 

  

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 (c) No member of the Committee or any Administrator shall be liable for any action, omission or
determination relating to the Plan, and the Companies shall indemnify and hold harmless each member of the Committee, each Administrator and each other director or employee of the Companies to whom any duty or power relating to the Plan has been
delegated, against any cost, expense (including counsel fees, which fees shall be paid as incurred) or liability (including any sum paid in settlement of a claim) arising out of any action, omission or determination relating to the Plan, if made in
good faith in a manner reasonably believed to be in or not opposed to the best interests of the Companies, and with respect to any criminal action or proceeding, if made with reasonable cause to believe that such conduct was lawful. 
 (d) The members of the Committee shall be appointed by, and serve at the pleasure of, the Board. Notwithstanding anything to the contrary contained
herein, the Board may, in its sole discretion, at any time and from time to time, resolve to administer the Plan, in which case, the term Committee as used herein shall be deemed to refer to the Board. 
  

	6.	Eligibility. 

 The persons eligible to participate
in the Plan shall be key employees of the Companies, as determined by the Committee. The Committee shall grant Awards to such Participants as it shall, in its sole discretion, determine, provided that no Award shall be made in any fiscal year
to any eligible employee whose annualized Compensation with respect to such fiscal year is not at least equal to the Minimum Eligible Compensation. The Committee may from time to time add to or exclude from participation one or more eligible
employees. Each eligible employee shall become a Participant effective on the date as of which the employee is designated as a Participant or members of a class of employees including the employee are designated as Participants. 
  

	7.	Awards under the Plan. 

 (a) Awards.

 (i) The Committee shall have full authority to grant Awards to Participants. Awards under the Plan may, in the discretion
of the Committee, be made in substitution in whole or in part for cash or other compensation payable to a Participant. Awards shall be denominated in a number of shares of Stock determined under Section 9. In respect of each Award having an
effective date on or after January 1, 1998, (A) the Award shall be subject to any terms and conditions as may be established by the Committee in connection with the Award and specified in the applicable Award Certificate and (B) the
terms, conditions and other provisions of the Award shall be set forth in the Award Certificate. The Company may, in its sole discretion, require a Participant to execute and return a copy of the Award Certificate to the Company as a condition to
receiving or retaining an Award or payment in respect of an Award. 
 (ii) Unless otherwise determined by the Committee, no
Award with respect to a fiscal year shall be granted to a Participant whose employment with the Companies and Affiliates terminates prior to the end of such fiscal year. 
 (b) Vesting. 
 (i) In respect of each Award having an effective date on or before
December 31, 1997, a Participant shall have a vested interest in the Award upon the first to occur of: (A) completion of two years of service for the Companies and the Affiliates following the grant of such 

  

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Award; (B) the Participant’s termination of employment with all Companies and the Affiliates as a result of Disability or Retirement; (C) the
Participant’s termination of employment with all Companies and the Affiliates which is initiated by a Company by reason of the Company’s decision to close permanently a branch office or other facility, or to reduce permanently the number
of employees which it employs due to substantial change in economic conditions; or (D) the Participant’s death while employed by a Company or one of the Affiliates; provided, however, that any vested Award shall be canceled
if a Participant’s employment with any Company is terminated for cause, the Participant resigns for cause or the Committee determines that the Participant has committed an act or omission upon which a Company would have terminated the
Participant’s employment for cause. 
 (ii) In respect of each Award having an effective date on or after January 1,
1998, (A) a Participant shall have a vested interest in the Award upon the satisfaction of such terms and conditions as the Committee may determine applicable to such Award and (B) the Committee may provide that such Award shall be subject
to forfeiture, cancellation or termination on such terms and conditions as the Committee may determine. 
  

	8.	Funding of the Plan. 

 The Plan shall be unfunded.
Benefits under the Plan shall be paid from the general assets of Morgan Stanley. Morgan Stanley may establish or contribute to the Trust to assist Morgan Stanley in meeting its obligations hereunder, but shall not be obligated to do so. 

 

	9.	Maintenance of Accounts. 

 With respect to each
Participant, the Committee shall maintain an Account as follows: 
 (a) In respect of each Award having an effective date on or before
December 31, 1997, such Participant’s Account shall be credited as of the date of each Award with a number of shares of Stock equal to: (I) the dollar amount of such Participant’s Award divided by (II) the product of the Fair
Market Value of a share of Stock multiplied by .80. In respect of each Award having an effective date on or after January 1, 1998, each such Participant’s Account shall be credited as of the date of each Award with a number of shares of
Stock equal to: (I) the dollar amount of such Participant’s Award divided by (II) the product of the Fair Market Value of a share of Stock multiplied by a fraction determined by the Committee to reflect the various restrictions, conditions
and limitations applicable to such Award. 
 (b) In respect of each Award having an effective date on or before December 31, 1997, such
Participant’s Account shall be credited as soon as practicable following the payment date of cash dividends on Stock with a number of shares of Stock, the Fair Market Value of which equals the dollar amount of dividends that would have been
paid with respect to Stock credited to such Participant’s Account had the Participant held such Stock as of the record date applicable to such dividends. In respect of each Award having an effective date on or after January 1, 1998, the
Committee may, in its sole discretion, (I) provide that each Participant’s Account shall be credited as soon as practicable following the payment date of cash dividends on Stock with a number of shares of Stock, the Fair Market Value of
which equals the dollar amount of dividends that would have been paid with respect to Stock credited to such Participant’s Account had the Participant held such Stock as of the record date applicable to such dividends, (II) determine, in lieu
of so crediting a Participant’s Account, to make cash payments to the Participant equal to the dollar amount of dividends that would have been paid with respect to Stock credited to such Participant’s Account had the Participant held such
Stock as of the record 

  

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date applicable to such dividends (“Dividend Equivalents”) or (III) allow a Participant to elect between having Morgan Stanley so credit the
Participant’s Account and receiving Dividend Equivalents, all on such terms and conditions as the Committee may determine. 
 (c) Each
Participant’s Account shall be reduced by the number of shares of Stock distributed to the Participant in respect of such Account, whether such shares are distributed from the Trust or directly from Morgan Stanley. 
  

	10.	Payments under the Plan. 

 (a) Within 30 days after
the occurrence of a Realization Event with respect to an Award having an effective date prior to June 20, 2006, Morgan Stanley shall deliver or cause to be delivered to the Participant the number of whole shares of Stock credited to such
Participant’s Account as of the date of the Realization Event as a result of such Award (including shares reflecting the reinvestment of dividends paid thereon), and cash with respect to any fractional shares of Stock credited to such
Participant’s Account in an amount equal to the Fair Market Value of such fractional shares as of the date of the Realization Event. Notwithstanding the fact that Morgan Stanley may establish or contribute to the Trust for the purpose of
assisting it in meeting its obligations under the Plan, Morgan Stanley shall remain obligated to pay the amounts credited to Participants’ Accounts. Nothing shall relieve Morgan Stanley of its liabilities under the Plan except to the extent
amounts are paid from Trust assets or otherwise. Payment in respect of each Award having an effective date on or after June 20, 2006 shall be made in accordance with terms and conditions determined by the Committee and set forth in the
applicable Award Certificate. 
 (b) In order to accomplish the purposes of the Plan, amounts allocated to Participants’ Accounts
generally must track the performance of the Stock until the occurrence of the Realization Event with respect to such amounts. Accordingly, if a court of competent jurisdiction determines by a final adjudication that Morgan Stanley is obligated to
distribute to any person shares of Stock credited to a Participant’s Account prior to the occurrence of a Realization Event with respect to such shares, the Stock so distributed shall be restricted as to transferability until the date that a
Realization Event would have occurred with respect to such shares had they not been distributed and remained subject to the Plan, and if certificated shall bear any legend determined appropriate by the Committee and the following legend: 

“The transferability of this certificate and the shares of stock represented hereby are subject to the restrictions, terms and conditions
(including forfeiture and restrictions against transfer) contained in the Morgan Stanley Tax Deferred Equity Participation Plan. A copy of the Plan is on file in the office of the Secretary of Morgan Stanley, 1585 Broadway, New York, New York
10036.” 
  

	11.	Securities Matters. 

 Subject to Section 10,
Morgan Stanley shall use its best efforts to assure that any securities distributed to Participants hereunder are freely transferable at the time of distribution, including, to the extent required under applicable law, effecting the registration
pursuant to the Securities Act of any shares of Stock to be distributed hereunder or effecting similar compliance under any state laws; provided, however, that with respect to any Award having an effective date on or after January 1,
1998, securities distributed to Participants hereunder may be subject to such restrictions on transfer as the Committee may determine. Notwithstanding anything herein to the contrary, Morgan Stanley shall not be obligated to cause to be issued or
delivered any shares of Stock pursuant to the 

  

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Plan unless and until Morgan Stanley is advised by its counsel that the issuance and delivery of such shares complies with all applicable laws, regulations
of governmental authorities and the requirements of any securities exchange on which Stock is listed. The Committee may require, as a condition of the issuance and delivery of shares of Stock pursuant to the terms hereof, the recipient of such
shares to make such covenants, agreements and representations, and that if certificated, the certificates representing such shares bear such legends, as the Committee, in its sole discretion, deems necessary or desirable. 
  

	12.	[Intentionally Omitted] 

  

	13.	Adjustments in Certain Events. 

 (a) Unless the
Committee otherwise determines, a Participant’s Account shall be adjusted to reflect the amount of any securities, cash and other property that would have been received with respect to shares of Stock credited to such Participant’s Account
if such Stock were held by the Participant as a result of any stock dividend or split, recapitalization, extraordinary dividend, merger, spinoff, consolidation, combination or exchange of shares or similar corporate change or any other event that
the Committee, in its sole discretion, deems appropriate. 
 (b) In the event of any change in the number of shares of Stock outstanding by
reason of any stock dividend or split, recapitalization, extraordinary dividend, merger, spinoff, consolidation, combination or exchange of shares or similar corporate change or any other event that the Committee, in its sole discretion, deems
appropriate, the maximum aggregate number of shares of Stock subject to the Plan shall be appropriately adjusted by the Committee. In the event of any change in the number of shares of Stock outstanding by reason of any other event or transaction,
the Committee may, but need not, make such adjustments in the number and class of shares of Stock subject to the Plan as the Committee may deem appropriate. 
 (c) Except as expressly provided in this Section, a Participant shall have no rights as a result of any stock dividend or split, recapitalization, extraordinary dividend, merger, spinoff, consolidation, combination or
exchange of shares or similar corporate change. 
  

	14.	[Intentionally Omitted] 

  

	15.	No Special Employment Rights. 

 Nothing in the Plan
shall confer upon any Participant any right to continue in the service of any Company or affect any right that any Company may have to terminate the service of the Participant. Nothing in the Plan shall be deemed to give any employee of any Company
any right to participate in the Plan. 
  

	16.	Payroll and Withholding Taxes; Other Obligations. 

 As a condition to the making or retention of any Award, the vesting or payment of any Award or the lapse of any restrictions pertaining thereto, the Company may require a Participant to pay such sum to the Company as may be necessary to
discharge the Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA tax) imposed on property or income received by a Participant pursuant to the Plan or to satisfy any obligation that the
Participant owes to the Company. In accordance with rules and procedures authorized by the Committee and, in the discretion of the Committee, such payment 

  

 10 

 
may be in the form of cash or other property. In accordance with rules and procedures authorized by the Committee, in satisfaction of such taxes, assessments
or other governmental charges or of other obligations that a Participant owes to the Company, the Company may, in the discretion of the Committee, make available for delivery a lesser number of shares of Stock in payment of an Award or permit a
Participant to tender previously owned shares of Stock to satisfy such withholding obligation. At the discretion of the Committee, the Company may deduct or withhold from any payment or distribution to a Participant whether or not pursuant to the
Plan. 
  

	17.	Termination and Amendment. 

 (a) The Plan may be
terminated in whole or in part with respect to any or all Participants at any time by the Committee. Subject to Section 20, upon such termination, the assets related to the Plan, if any, in the Trust shall be distributed to each affected
Participant with respect to whom the Plan has been terminated in order to meet the benefit obligations under the Plan with respect to each such Participant, provided that the Committee shall not have any right to make such distribution to an
affected Participant to the extent such distribution is prohibited by Section 409A or the existence of such right would result in the Participant incurring interest or additional tax under Section 409A. In the event the entire Plan is
terminated, the remaining assets related to the Plan, if any, in the Trust after the payment of such benefits shall be paid to Morgan Stanley. The Plan may be amended by the Committee from time to time in any respect; provided,
however, that if and to the extent required by Rule 16b-3 or by any comparable or successor exemption under which the Committee believes it is appropriate for the Plan to qualify, no amendment shall be effective without the approval of
the shareholders of Morgan Stanley, which (a) except as provided in Section 13, increases the number of shares of Stock that may be distributed under the Plan, (b) materially increases the benefits accruing to individuals under the
Plan or (c) materially modifies the requirements as to eligibility for participation in the Plan. No amendment or termination shall be made that would materially impair the rights of any Participant in any Award theretofore granted or made, or
any earnings with respect thereto, without such Participant’s prior written consent; provided, however, that Morgan Stanley may amend the Plan and the Trust from time to time in such a manner as may be necessary to avoid having
the trust agreement pursuant to which the Trust is created, the Plan or the Trust being subject to ERISA and to avoid the current taxation of the assets held in the Trust to Participants; and provided, further, that Morgan Stanley may
amend or modify the Plan in any manner that it considers necessary or advisable to comply with any law, regulation, regulatory guidance, ruling, judicial decision or accounting standards. Neither a Participant’s incurring any income tax
liability nor the loss of an investment opportunity as a result of the termination of the Plan shall be considered an impairment of the rights of a Participant. 
 (b) Subject to the terms and conditions of the Plan, the Committee may amend outstanding Awards, including, without limitation, by any amendment which would accelerate the time or times at which the Award may vest or
become payable and by any other amendment to any other term or condition of the Award; provided, however, that the Committee shall not have any such right to the extent it is prohibited by Section 409A or the existence of such
right would result in a Participant being required to recognize income for United States federal income tax purposes prior to the time of payment of an Award or would result in a Participant incurring interest or additional tax under
Section 409A. No amendment shall be made that would materially impair the rights of any Participant in any outstanding Award, or any earnings with respect thereto, without the prior written consent of such Participant; provided,
however, that Morgan Stanley may amend or modify any Award under the Plan in any manner that it considers necessary or advisable to comply with any law, regulation, regulatory guidance, ruling, judicial decision or accounting 

  

 11 

 
standards. Neither a Participant’s incurring any income tax liability nor the loss of an investment opportunity as a result of an amendment to an Award
shall be considered an impairment of the rights of a Participant in the Award. 
  

	18.	[Intentionally Omitted] 

  

	19.	Shareholder Approval. 

 The Plan was approved by the
shareholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) on May 20, 1994. 
  

	20.	Effect of Revocation Event. 

 Upon the occurrence of
a Revocation Event, the Committee may, in its sole discretion, elect to terminate the Plan and/or the Trust in whole or in part. In the event that the Committee elects to so terminate the Plan, the Trust or any Participant’s Account as a result
of a Revocation Event, in consideration of and as soon as practicable after Morgan Stanley’s providing the Trustee with a written undertaking to pay to Participants the amount to be paid under this Section, all amounts related to the Plan held
in the Trust (or if the entire Trust is not terminated, any terminated Accounts) shall be distributed to Morgan Stanley. Morgan Stanley shall, in its sole discretion, (a) pay to each Participant whose Account is terminated, as soon as
practicable after the date of such termination, a lump sum in cash equal to the Fair Market Value multiplied by the number of shares of Stock reflected in each Participant’s Account as of the date of such termination, (b) distribute to
each Participant whose Account is terminated, as soon as practicable after the date of such termination, that number of shares of Stock that would have been distributable to such Participant under the Plan or (c) distribute to each Participant
whose Account is terminated that number of shares of Stock that would have been distributable to such Participant at such time as shares would have been distributable to such Participant under the Plan, had the Plan continued, provided that
Morgan Stanley shall not have any right to make any such payment or distribution to a Participant whose Account is terminated to the extent such payment or distribution is prohibited by Section 409A or the existence of such right would result
in the Participant incurring interest or additional tax under Section 409A. If it is determined by a final adjudication in a proceeding, which Morgan Stanley either controls or was offered the right to control and declines, that the
Participant’s interest in the Trust was taxable to the Participant notwithstanding any termination of such Participant’s Account in the Trust, Morgan Stanley shall pay or distribute the Participant’s interest (whether or not the
Committee has previously elected to terminate the Plan, the Trust or the Participant’s Account) in accordance with either (a) or (b) of the preceding sentence. 
  

	21.	Miscellaneous. 

 (a) Stockholder Rights.
Unless the Committee determines otherwise, prior to the payment of Stock pursuant to any Award, the Participant shall not have any rights as a stockholder with respect to any shares of Stock subject to such Award. 
 (b) Transferability. Unless the Committee determines otherwise, no Award granted under the Plan shall be transferable other than by will or by the
laws of descent and distribution. 
 (c) Non-Uniform Determinations. The Committee’s determinations under the Plan need not be
uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons are similarly situated). Without 

  

 12 

 
limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter
into non-uniform and selective Award Certificates, as to the persons receiving Awards under the Plan, and the terms and provisions of Awards under the Plan. 
 (d) Headings. The headings of sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 
 (e) Governing Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Delaware
without reference to the principles of conflicts of law. 
  

 13Morgan Stanley Financial Advisor Productivity Compensation Plan

 EXHIBIT 10.2 
 MORGAN STANLEY 
 FINANCIAL ADVISOR PRODUCTIVITY COMPENSATION PLAN 
 (Amended and Restated as of June 20, 2006) 
 SECTION I 
 INTRODUCTION 
  

	(a)	The name of this plan is the Morgan Stanley Financial Advisor Productivity Compensation Plan (the “Plan”). 

  

	(b)	The Plan was initially adopted to be effective for Awards granted for Fiscal Years commencing with 1984; was amended and restated December 23, 1985 retroactive to Fiscal Year
1984; was amended effective December 24, 1990; was amended effective July 15, 1991; was restated for Fiscal Years beginning with 1992; was amended and restated effective October 1, 1993; was amended effective January 1, 1994; was
amended and restated effective January 1, 1994; was amended and restated effective October 21, 1994; was amended effective June 18, 1997; was amended effective September 25, 1998; was amended effective September 21, 1999;
was amended effective March 26, 2001; was amended and restated effective December 11, 2001; was amended effective September 20, 2005; and was amended and restated effective June 20, 2006. 

 SECTION II 
 PURPOSE OF PLAN

  

	(a)	The purposes of the Plan are to retain and recruit key Financial Advisors to Morgan Stanley DW Inc. by enabling them to accumulate significant net worth. 

SECTION III 
 DEFINITIONS

 Unless determined otherwise by the Committee and set forth in the applicable Award Certificate, capitalized terms used herein without
definition have the meanings set forth below. 
  

	(a)	“Account” means a bookkeeping account maintained in a confidential ledger by MSDW pursuant to Section VI of the Plan for each Participant granted a cash
Award under the Plan.  

  

	(b)	“Award” means any award of cash, Stock or Stock Units made pursuant to Section V of the Plan. 

  

 1 

	(c)	“Award Certificate” means a written document (including in electronic form) that sets forth the terms and conditions of an Award. Award Certificates shall be
authorized by the Committee and signed by an officer on behalf of Morgan Stanley (which signature may be in facsimile). 

  

	(d)	“Board” means the Board of Directors of Morgan Stanley. 

  

	(e)	“Committee” means the Compensation, Management Development and Succession Committee of the Board, any successor committee thereto or any other committee of
the Board appointed by the Board with the powers of the Committee under the Plan, or any subcommittee appointed by such Committee. 

  

	(f)	“Company” means Morgan Stanley and its subsidiaries. 

  

	(g)	In respect of each award granted prior to June 20, 2006, “Disability” means termination of employment from MSDW due to a medically determinable physical
or mental incapacity which is reasonably expected to be of long-term duration or result in death, and the determination of MSDW shall be conclusive on all parties as to whether a Participant is Disabled. In respect of each award granted on or after
June 20, 2006, “Disability” shall have the meaning determined by the Committee and set forth in the applicable Award Certificate. 

  

	(h)	“Employee” means an employee of MSDW. 

  

	(i)	In respect of each award granted prior to June 20, 2006, “Fair Market Value” means: 

 (1) for purposes of determining the number of shares of Stock to be allocated pursuant to Section VII(a) to an award made pursuant to
Section V, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Board or the Committee; and 
 (2) for purposes of crediting a Participant pursuant to Section VII(d) with shares of Stock based upon cash dividends paid or deemed to be
paid on shares of Stock credited to the Participant as of the record date for such dividends, the average of the high and low sales prices, regular way, of a share of Stock as reported on the New York Stock Exchange Composite Tape (the
“High/Low Price”) on the relevant dividend payment date, or, if Stock is not traded on public markets on the relevant dividend payment date, the first preceding date on which Stock is traded on public markets; provided,
however, that in the event a “Fair Market Value” cannot be determined pursuant to the foregoing, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology
approved by the Committee; and 
 (3) for purposes of distributing cash in lieu of a fractional share pursuant to Section
VII(b), the High/Low Price on the date of the distribution, or, if Stock is not traded on public markets on the date of the distribution, the first preceding date on which Stock is traded on public markets; provided, however, that in
the event a “Fair Market Value” cannot be determined pursuant to the foregoing, the fair market value thereof as 

  

 2 

 
of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee; and 
 (4) for such other purposes as may arise in connection with the Plan, the fair market value of a share of Stock as of the relevant date of
determination, as determined in accordance with a valuation methodology approved by the Committee; 
 In respect of each Award granted on or
after June 20, 2006, “Fair Market Value” means, with respect to a share of Stock, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved
by the Committee. 
  

	(j)	“Financial Advisor” means an Employee performing the functions of a retail Financial Advisor, as defined by MSDW. 

  

	(k)	“Fiscal Year” means the fiscal year of Morgan Stanley. 

  

	(l)	“Gross Revenue” means the gross production generated by a Financial Advisor during a stated period. 

  

	(m)	“Morgan Stanley” means Morgan Stanley, a Delaware corporation, or any successor thereto. 

  

	(n)	“MSDW” means Morgan Stanley DW Inc., a Delaware corporation, or any successor thereto (including, without limitation, any successor by merger).

  

	(o)	“Participant” means an employee of the Company to whom an Award has been made pursuant to Section V. 

  

	(p)	In respect of each award granted prior to June 20, 2006, “Related Employment” means the employment of a Participant by an employer other than MSDW,
provided that: (1) such employment is undertaken by the individual at the request or with the consent of MSDW; (2) immediately prior to undertaking such employment, the individual was an Employee or was engaged in Related Employment
as defined herein; and (3) such employment is recognized by MSDW, in its discretion, as Related Employment. In respect of each award granted on or after June 20, 2006, “Related Employment” shall have the meaning
determined by the Committee and set forth in the applicable Award Certificate. 

  

	(q)	In respect of each award granted prior to June 20, 2006, “Retirement” means termination of employment from MSDW (i) after attaining age 65;
(ii) as defined in the Morgan Stanley DW Inc. Pension Plan whether or not the individual is a participant therein; or (iii) as otherwise specified by written agreement between MSDW and a Financial Advisor. In respect of each award granted
on or after June 20, 2006, “Retirement” shall have the meaning determined by the Committee and set forth in the applicable Award Certificate. 

  

 3 

	(r)	“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and the rules, regulations and guidance thereunder (or any successor
provisions thereto). 

  

	(s)	“Stock” means the common stock of Morgan Stanley, par value $.01 per share. 

  

	(t)	“Stock Unit” means a general, unsecured obligation of Morgan Stanley to deliver one share of Stock (or the value thereof) to a Participant pursuant to an
Award recorded by the Company as a bookkeeping entry, subject to conditions determined by the Committee pursuant to Section V. 

 SECTION IV 
 ELIGIBILITY 
  

	(a)	Financial Advisors who produce Gross Revenue within a Fiscal Year which is equal to or exceeds criteria established from time to time by the Committee, or who meet or exceed any
other criteria established from time to time by the Committee, shall be eligible to participate in the Plan. 

  

	(b)	Any Financial Advisor who is eligible to participate in the Plan pursuant to Section IV(a) shall be eligible to participate in the Plan only with respect to the Fiscal Year for
which he or she meets the criteria specified pursuant to Section V of the Plan. 

  

	(c)	Individuals selected to receive Awards pursuant to Section V(d) of the Plan shall be eligible to participate in the Plan in connection with, and subject to the terms of, their
Awards. 

 SECTION V 
 AWARDS 
  

	(a)	The Company may establish Gross Revenue criteria which will entitle a Financial Advisor to receive an Award under the Plan for a Fiscal Year. Such Award may be expressed as a
percentage of each Financial Advisor’s Gross Revenue for the Fiscal Year for which such Award is being made. Awards granted under this Section V(a) shall be payable in accordance with Section VII. 

  

	(b)	The Committee may establish any other criteria which will entitle a Financial Advisor to receive an Award under the Plan for a given Fiscal Year. A Financial Advisor who achieves
such other criteria shall receive an Award for that Fiscal Year based on such criteria. Awards granted under this Section V(b) shall be payable in accordance with Section VII. 

  

	(c)	Any Participant who terminates as an Employee during the Fiscal Year, for whatever reason, shall not be eligible for any Award pursuant to Section V(a) or (b) for such Fiscal
Year. 

  

 4 

	(d)	The Committee may, in its discretion from time to time, make to an individual, in consideration of such individual becoming a Financial Advisor, remaining a Financial Advisor, or
such other consideration as the Committee may determine, an Award on such terms and conditions as the Committee may determine, which terms and conditions need not be uniform with the terms and conditions of Section VI, VII or VIII hereof.

  

	(e)	Awards granted under this Section V on or after June 20, 2006 shall be subject to such terms and conditions, including, without limitation, vesting requirements, cancellation
provisions and transfer restrictions, established by the Committee, in its sole discretion, in connection with the Award. The Committee shall also have full authority to determine and specify in the applicable Award Certificate the effect, if any,
that a Participant’s termination of employment for any reason will have on the vesting, payment or lapse of restrictions applicable to an Award granted on or after June 20, 2006. The terms and conditions of each Award granted on or after
June 20, 2006 shall be set forth in an Award Certificate delivered or made available by Morgan Stanley to the Participant following the date of grant of the Award. 

  

	(f)	The total number of shares of Stock that may be issued pursuant to Awards granted under the Plan is 6,500,0001. Shares delivered under the Plan may be authorized but unissued shares or treasury shares that Morgan Stanley acquires in the open market, in private
transactions or otherwise. The Committee, in its discretion, may adjust the number and kind of shares authorized for delivery under the Plan in the event of a stock split, stock dividend, extraordinary cash dividend, merger, acquisition,
reorganization, spinoff or similar transaction. In connection with any of the foregoing events, the Committee may, in its discretion, adjust outstanding Awards, including by adjusting the number and kind of shares subject to any outstanding Award.
The Committee shall make all such adjustments, and its determination as to what adjustments shall be made, and the extent thereof, shall be final. 

 SECTION VI 
 ACCOUNTS-ESCROW AGENT 
  

	(a)	A separate Account shall be maintained by MSDW in a confidential ledger for each Participant granted a cash Award by the Company for each Fiscal Year. Each such Account shall be
credited with the amount of cash Awards not paid to the Participant pursuant to Section VII of the Plan and increased from time to time by any additional cash Awards not paid to each Participant. Each Account shall be decreased by any cash amounts
paid to or on behalf of a Participant or forfeited pursuant to Section VII of the Plan. 

	1	Such number represents the maximum number of shares of Stock available for Awards under the Plan that was initially approved by the Board of Directors of Dean
Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that were made in accordance with Section V(f) prior to June 20, 2006. 

  

 5 

	(b)	As a condition to participation in the Plan, each eligible Employee shall be required to hold Stock corresponding to Awards of Stock granted under the Plan in an escrow account and
such Employee’s participation in the Plan shall constitute the appointment of such custodian as the Company shall designate (the “Custodian”) as the custodial agent for the purpose of holding such Stock. Such escrow
account will be governed by and subject to the terms and conditions of a written agreement with the Custodian. 

 SECTION VII

 AWARD PAYMENTS 
  

	(a)	Awards under Section V(a) for the 1994 Fiscal Year were made, at the Participant’s election prior to the date the Award is made, in the form of (i) cash, payable four
years and six months following the close of the Fiscal Year for which the Award was made, or (ii) shares of Stock valued at 100% of the Fair Market Value of Stock as of the date the Award is made, granted as soon as practicable following the
close of the Fiscal Year for which the Award was made. Awards under Section V(a) for Fiscal Years commencing with the 1995 Fiscal Year granted prior to June 20, 2006, were made entirely in the form of Stock valued at 100% of the Fair Market
Value of Stock as of the date the Award was made, granted as soon as practicable following the close of the Fiscal Year for which the Award was made. Awards granted under Section V(b) prior to June 20, 2006 may be made in cash or Stock, as
determined by the Committee. Awards granted under Section V(a) or Section V(b) on or after June 20, 2006 may be made in cash, Stock, Stock Units or a combination thereof, as determined by the Committee. 

  

	(b)	The following payment provisions shall apply to Awards granted under Section V(a) or Section V(b) of the Plan prior to June 20, 2006: 

 (1) the number of shares of Stock payable with respect to an Award shall be calculated by reference to the amount of the Award determined
under Section V, discounted by an appropriate interest rate factor as the Company shall establish from time to time so that the value of the Award payable under this Section VII is equal to the present value of the amount determined pursuant to
Section V and payable four years and six months following the close of the Fiscal Year for which the Award was made; 
 (2) a
Participant on a leave of absence approved by MSDW or who is absent due to Disability on the date an Award payment is made shall not be entitled to payment of such Award until the Participant returns to MSDW following completion of such leave of
absence or Disability; 
 (3) the commencement of Related Employment by a Participant shall not be treated for purposes of the
Plan and any such Award as a termination of employment; 
 (4) Stock Awards shall vest and cash Awards shall be paid, four
years and six months following the close of the Fiscal Year with respect to which awarded, provided that the Participant’s status as an Employee has not been terminated prior to such date; 
  

 6 

 (5) upon the Participant’s termination of employment with MSDW, all unvested Stock
Awards and unpaid cash Awards shall be forfeited; 
 (6) notwithstanding anything in this Plan to the contrary, if a
Participant terminates employment with MSDW due to Disability or Retirement, or upon a Participant’s death, all of the Participant’s Awards shall vest immediately and be paid as promptly as practicable; 
 (7) the Retirement, Disability or death of an individual during a period of Related Employment shall be treated for purposes of the Plan
and any such Award as if such event had occurred while the individual was an Employee; 
 (8) payments to Participants of any
fractional share shall be paid in cash. 
  

	(c)	The number of shares of Stock payable with respect to an Award granted pursuant to Section V(a) or V(b) on or after June 20, 2006 shall be determined in accordance with a
valuation methodology approved by the Committee and such Awards shall be subject to the conditions to payment determined by the Committee and set forth in the applicable Award Certificate. 

  

	(d)	A Participant may vote and receive dividends on any Award of Stock granted to such Participant under Section VII(a), or credited under this Section VII(d), prior to June 20,
2006. With respect to Awards of Stock granted prior to June 20, 2006, all dividends on such Stock (other than dividends payable in Stock) shall be reinvested in shares of Stock at 100% of the Fair Market Value of Stock which shares shall be
credited to the Participant and held by the Custodian. Unless the applicable Award Certificate otherwise provides, all shares of Stock received as a distribution with respect to an Award of Stock or purchased with reinvested dividends under this
Section VII(d) shall be subject to the same restrictions as the Award of Stock on which the distribution or dividend is awarded. 

  

	(e)	With respect to Awards granted on or after June 20, 2006, if Morgan Stanley pays any dividend or makes any distribution to holders of Stock, the Committee may in its discretion
authorize payments (which may be in cash, Stock (including restricted Stock) or Stock Units or a combination thereof) with respect to the shares corresponding to an Award, or may authorize appropriate adjustments to outstanding Awards, to reflect
such dividend or distribution. The Committee may make any such payments subject to vesting, deferral or restrictions on transfer. 

  

	(f)	In accordance with the provisions of Appendix A to the Plan, if MSDW must recover a Payment Obligation that was made subject to Appendix A and was previously paid to a
Participant pursuant to this Section VII, a Participant shall be required to repay the amount of cash or the number of shares of Stock received or underlying Stock Units granted (or an amount in cash equal to the fair market value of such Stock as
of the date of such repayment, as determined by MSDW). If any such amount is not repaid, MSDW reserves the right to withhold from a Participant’s compensation the amount of any Payment Obligation which a Participant fails to repay as required
herein. 

  

 7 

	(g)	The Committee reserves the right to accelerate the vesting of any Award of cash, Stock or Stock Units awarded pursuant to Section V of the Plan, provided that, if the Award
of such cash, Stock or Stock Units was made subject to Appendix A hereof, then vesting of such cash, Stock or Stock Units shall be subject to Appendix A hereof. Notwithstanding the preceding sentence, the Company and the Committee
shall not have any right to accelerate the vesting or payment of any cash, Stock or Stock Units awarded pursuant to the Plan to the extent such right is prohibited by Section 409A, or the existence of such right would result in a Participant
being required to recognize income for United States federal income tax purposes prior to the time of payment or settlement of an Award or would result in a Participant incurring interest or additional tax under Section 409A.

  

	(h)	As a condition to the vesting or payment of any Award or the lapse of any restrictions pertaining thereto, the Company may require a Participant to pay such sum as may be necessary
to discharge the Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA tax) imposed on property or income received by a Participant pursuant to the Plan or to satisfy any obligation that the
Participant owes to the Company. In accordance with rules and procedures authorized by the Company and, in the discretion of the Company, such payment may be in the form of cash or other property. In accordance with rules and procedures authorized
by the Company, in satisfaction of such taxes, assessments or other governmental charges or of other obligations that a Participant owes to the Company, the Company may, in the discretion of the Company, make available for delivery a lesser number
of shares of Stock in payment or settlement of an Award or permit a Participant to tender previously owned shares of Stock to satisfy such payment obligation. The Company may, in its discretion, deduct or withhold such amounts from any payment or
distribution to a Participant whether or not pursuant to the Plan. 

 SECTION VIII 
 SUBORDINATION OF AWARDS 
  

	(a)	MSDW may require, as a condition of participation in the Plan, that a Financial Advisor execute and deliver a written agreement (the “Agreement”) within
forty-five (45) days after notice of eligibility to Participate that such Financial Advisor’s right to payment hereunder (the “Payment Obligation”), is subordinate to the prior payment or provision for payment in
full of all claims of all present and future creditors of MSDW arising out of any matter occurring prior to the date on which the related Payment Obligation matures consistent with all applicable statutes, regulations and rules, except for claims
which are the subject of subordination agreements which rank on the same priority (which claims shall be paid pari passu) or are junior to the Payment Obligation under the Agreement. The Agreement shall also provide that the Participant’s right
to payment hereunder shall be subordinate to claims which are now or hereafter expressly stated in the instruments creating such claims to be senior in right of payment to the claims of the class of claims created hereunder which arise out of any
matter occurring prior to the maturity date of any payment under the Payment Obligation. 

  

 8 

	(b)	The form of the Agreement shall be determined by MSDW. In the event that MSDW elects to treat Payment Obligations as subordinated liabilities for purposes of determining net capital
under Rule 15c3-1 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 and similar regulations promulgated under the Commodities Exchange Act, the form of the Agreement shall be subject to approval of the
Examining Authority as defined by the Agreement. A copy of the Agreement is annexed hereto as Appendix A, and incorporated by reference as fully as if set forth herein at length. 

  

	(c)	Any amount credited to a Participant’s Account shall not be segregated but shall remain a part of the general corporate funds of MSDW subject to the claims of general,
unsecured creditors of MSDW to which claims the rights of the Participant to receive payment of the amount credited to the Participant’s Account shall be subordinated pursuant to the terms of an Agreement. 

  

	(d)	If a Participant is required by MSDW to execute and deliver an Agreement within the forty-five (45) day period described in (a) above and does not do so, such Participant
shall cease to have any rights whatsoever hereunder. 

 SECTION IX 
 ADMINISTRATION 
  

	(a)	The Committee shall have full power and authority to exercise all powers granted to it under the Plan and to construe, interpret and administer the Plan. Its decisions shall be
final, conclusive and binding upon all persons interested herein, including Participants and their beneficiaries and personal representatives. 

  

	(b)	The members of the Committee shall be appointed by, and serve at the pleasure of, the Board. Notwithstanding anything to the contrary contained herein, the Board may, in its sole
discretion, at any time and from time to time, resolve to administer the Plan, in which case, the term Committee as used herein shall be deemed to refer to the Board. To the extent not prohibited by applicable laws or rules of the New York Stock
Exchange, the Committee or the Board may from time to time delegate some or all of the Committee’s authority under the Plan to an administrator consisting of one or more members of the Committee as a subcommittee or subcommittees thereof or of
one or more members of the Board who are not members of the Committee or one or more officers of the Company (or of any combination of such persons) (the “Administrator”). Any such delegation shall be subject to the
restrictions and limits specified at the time of such delegation or thereafter. The Committee or the Board may at any time rescind all or part of the authority delegated to an Administrator or appoint a new Administrator. At all times, the
Administrator shall serve in such capacity at the pleasure of the Board. Any action undertaken by the Administrator in accordance with the delegation of the Committee’s authority shall have the same force and effect as if undertaken directly by
the Committee, and any reference in the Plan to the Committee shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a reference to the Administrator. 

  

 9 

	(c)	The Plan shall be effective for all Awards accrued for the Fiscal Year beginning in 1984 and each Fiscal Year thereafter, as amended from time to time until suspended or
discontinued by the Company. 

  

	(d)	The expenses of administering the Plan shall be borne by the Company. 

  

	(e)	The interest and property rights of any person in the Plan or in any distribution to be made under the Plan shall not be subject to option nor be assignable, either by voluntary or
involuntary assignment or by operation of law, including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process and any act in violation hereof shall be void. 

  

	(f)	Nothing herein shall be construed to require the Company to segregate or set aside any funds or any property for the purpose of making Award payments hereunder.

  

	(g)	The Company’s and the Committee’s determinations under the Plan need not be uniform and may be made selectively among persons who receive, or are eligible to receive,
Awards under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective determinations, and to enter into
non-uniform and selective Award Certificates, as to (1) the person to receive Awards under the Plan, (2) the terms and provisions of Awards under the Plan, (3) the exercise by the Committee of its discretion in respect of the terms of
the Plan and (4) any adjustments made pursuant to Section V(f) of the Plan. 

 SECTION X 
 MISCELLANEOUS 
  

	(a)	The establishment of the Plan, the granting of benefits or any action by the Company, the Committee or any other person shall not be held or construed to confer upon any person any
right to be continued as an employee of the Company nor, upon termination of employment with the Company, to confer any right or interest other than as provided herein. No provision of the Plan shall restrict the right of the Company to terminate
any employee’s employment for any reason, with or without cause. 

  

	(b)	If, in the opinion of the Company, any person becomes unable to handle properly any amount payable to such person under the Plan, the Company may make any reasonable arrangement for
payment on such person’s behalf as it deems appropriate. 

  

	(c)	Where appropriate, the use of masculine terms within the Plan shall mean the feminine, the use of singular terms shall mean the plural, and vice versa. 

  

	(d)	Except as otherwise provided in Section VII(d) or in the applicable Award Certificate, no Participant shall have any of the rights of a stockholder of Morgan Stanley with respect to
shares of Stock corresponding to an Award until the issuance of such Stock to the Participant. 

  

 10 

 SECTION XI 
 AMENDMENT, SUSPENSION AND DISCONTINUANCE 
  

	(a)	The Committee shall have the authority to amend the Plan, in whole or in part, or to suspend or discontinue the Plan, in whole or in part, at any time. 

  

	(b)	The Plan shall continue in effect as amended from time to time, until suspended or discontinued by the Committee. 

  

	(c)	Notwithstanding any amendment, suspension or discontinuance of the Plan, Awards previously granted shall be paid pursuant to the appropriate provisions of the Plan. Notwithstanding
the foregoing, in the event of the discontinuance or termination of the Plan, the Company reserves the right to accelerate payment of a Participant’s Award to any date prior to the vesting periods applicable to such Award, subject to provisions
of Appendix A to the Plan, provided that the Company shall not have any such right to accelerate payment of a Participant’s Award to the extent such right is prohibited by Section 409A, or the existence of such right would
result in a Participant being required to recognize income for United States federal income tax purposes prior to the time of payment or settlement of an Award or would result in a Participant incurring interest or additional tax under
Section 409A. 

  

	(d)	If any part of this Plan, including Appendix A hereto, fails to receive any required approval of the appropriate regulatory and governing bodies or is otherwise declared void
and of no effect, the rest of the Plan shall continue in full force. 

  

	(e)	Any discretionary authority or obligation that the Committee or the Company may have pursuant to the Plan (including Appendix A hereto) shall not be applicable to an Award
that is subject to Section 409A to the extent such discretionary authority or obligation is prohibited by Section 409A, or would result in a Participant being required to recognize income for United States federal income tax purposes prior
to the time of payment, settlement or exercise of an Award or would result in a Participant incurring interest or additional tax under Section 409A. 

  

 11 

 APPENDIX A 
 MORGAN STANLEY 
 FINANCIAL ADVISOR PRODUCTIVITY COMPENSATION PLAN 
 For purposes of this Appendix A, a Financial Advisor who is designated in writing by Morgan Stanley DW Inc. as a participant under the Plan shall
be known as a “Participant”, Morgan Stanley DW Inc. shall be known as “MSDW”, and MSDW’s “Payment Obligation” shall be as defined below. 
  

	1.	Payment Obligation 

 (a) Payment Obligations shall
consist of any deferred payments of deferred bonuses owed from time to time to a Participant by MSDW pursuant to the Plan. 
 (b) Payment
Obligations, including the dates payments are due, shall be determined in accordance with the provisions of the Plan as in effect on the date hereof, or as hereafter amended. As provided in Sections 4 and 5 of this Appendix A, payment of any
amount of a Payment Obligation may be made sooner than five years following the year for which such Payment Obligation is accrued by MSDW. If any provision of the Plan as now in effect or as hereafter amended shall be inconsistent with this
Appendix A, this Appendix A shall govern. 
  

	2.	Subordination of Right of Payment 

 (a) Payment
Obligations are and shall be subordinated in right of payment and subject to prior payment or provision for payment in full of all claims of other present and future creditors of MSDW whose claims are not similarly subordinated (claims hereunder
shall rank pari passu with claims similarly subordinated) and to claims which are now or hereafter expressly stated in the instruments creating such claims to be senior in right of payment to the claims or the class of claims hereunder which arise
out of any matter occurring prior to the maturity date of any payment under the Payment Obligation. 
 (b) In the event of the appointment of
a receiver or trustee for MSDW or in the event of its insolvency, liquidation pursuant to the Securities Investor Protection Act of 1970 (“SIPA”), or otherwise, its bankruptcy, assignment for the benefit of creditors,
reorganization, whether or not pursuant to bankruptcy laws, or any other marshaling of the assets and liabilities of MSDW, Participants shall not be entitled to participate or share, ratably or otherwise, in the distribution of the assets of MSDW
until all claims of all other present and future creditors of MSDW whose claims are senior to claims hereunder have been fully satisfied or provision has been made therefor. 
 (c) Notwithstanding the maturing of the Payment Obligation under any provision of the Plan or this Appendix A, the right of a Participant to
receive payment of any Payment Obligation is and shall remain subordinate as provided in this Section 2. 
  

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	3.	Suspension of Maturity During Net Capital Stringency 

 (a) MSDW’s Payment Obligations shall be suspended and not mature for any period of time during which, after giving effect to such Payment Obligations (together with the payment of any other subordinated obligation of MSDW payable at or
prior to such payment of the Payment Obligations), 
 (i) if MSDW is not operating pursuant to the alternative net capital
requirements provided for in paragraph (f) of Rule 15c3-1 (the “Rule”) under the Securities Exchange Act of 1934 (the “Act”), the aggregate indebtedness of MSDW would exceed 1,200 percentum of its net capital,
as those terms are defined in the Rule, as in effect at the time such payment is to be made, or such percentum as may be made applicable to MSDW from time to time by the Examining Authority (as defined in paragraph 7(f) hereof) plus an amount equal
to the guaranty deposits with clearing organizations other than the Chicago Board of Trade (“CBOT”), which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member
FCM’s,” to the extent such deposits cannot be used for margin purposes, or 
 (ii) if MSDW is operating pursuant to
the alternative net capital requirements provided for in paragraph (f) of the Rule, its net capital would be less than five (5) percentum of aggregate debit items (or such other percentum as may be made applicable to MSDW by the Examining
Authority) computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule as in effect at the time such payment is to be made, plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT,
which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (iii) if MSDW is registered as a futures commission merchant under the Commodity Exchange Act (the “CEA”), the net
capital of MSDW would be less than the greatest of (A) six (6) percentum of the funds required to be segregated pursuant to the CEA and Commodities Futures Trading Commission (“CFTC”) Regulations and the foreign
futures or foreign options secured amount exclusive of the market value of commodity options purchased by option customers of MSDW on or subject to the rules of a contract market or a foreign board of trade, provided the deduction for each
option customer shall be limited to the amount of customer funds in each option customer’s account(s), and foreign futures and foreign options secured amounts plus an amount equal to the guaranty deposits with clearing organizations other than
the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, (B) such amount as may be made applicable
to MSDW at the time of such payment by an Examining Authority under Rule 15c3-1(b)(7), or (C) $2,000,000 (or such other amount as required by the CEA and CFTC Regulations), or 
 (iv) if MSDW’s net capital, as defined in the Rule or any successor rule as in effect at the time such payment is to be made would be
less than 120 percentum (or such other percentum as may be made applicable to MSDW at the time of such payment by the Examining Authority) of the minimum dollar amount required by the Rule as in effect at such time or such dollar amount as may be
made applicable to MSDW by the Examining Authority, plus an 

  

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amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the
CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (v) if MSDW is registered as a futures commission merchant under the CEA and if its net capital, as defined in the CEA or CFTC Regulations as in effect at the time of such payment, would be less than 120 percentum (or such other percentum
as may be made applicable to MSDW by the Examining Authority) of the minimum dollar amount required by the CEA or the regulations thereunder as in effect at such time (or such other dollar amount as may be made applicable to MSDW by the Examining
Authority at the time of such payment), plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member
FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (vi) if MSDW is subject to the
provisions of paragraph (a)(6)(v) or (a)(7)(iv) or (c)(2)(x)(B)(1) of the Rule, its net capital would be less than the amount required to satisfy the 1,000 percentum test (or such other percentum test as may be made applicable to MSDW by the
Examining Authority at the time of such payment) stated in such applicable paragraph, plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the
CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes. 
 The net
capital required by (i)-(vi) above is hereinafter referred to as the “Applicable Minimum Capital”. During any such suspension, MSDW shall, as promptly as consistent with the protection of its customers, reduce its business to a
condition whereby payment due under Payment Obligations could be made (together with the payment of any other subordinated obligation of MSDW payable at or prior to such payment) without MSDW’s net capital being below the Applicable Minimum
Capital, at which time MSDW shall make payment due under Payment Obligations on not less than five (5) days prior written notice to the Examining Authority. 
 (b) If immediately after any payment of a Payment Obligation MSDW’s net capital is less than the Applicable Minimum Capital, whether or not the Participant had any knowledge or notice of such fact at the time of
any such payment, a Participant must repay to MSDW, its successors or assigns, any sum so paid, to be held by MSDW pursuant to the provisions of the Plan as if such payment had never been made; provided, however, that any suit for the
recovery of any such payment must be commenced within two years of the date of such payment. MSDW reserves the right to withhold from the Participant’s compensation the amount of any Payment Obligation which a Participant fails to repay as
required herein. 
 (c) If, pursuant to the terms hereof, payment of MSDW’s Payment Obligations are suspended, MSDW may be summarily
suspended by the Examining Authority. 
  

	4.	Permissive Prepayment 

 With the prior written
permission of the Examining Authority, MSDW may, at its option and to the extent permitted by the Plan, pay all or any portion of the Payment Obligation to the Participant (such payment hereinafter referred to as a
“Prepayment”) at any time subsequent to 

  

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one year from the date subordinated funds became subject to this Appendix A. No Prepayment shall be made, however, if after giving effect thereto (and to all
other payments of any other subordinated obligation of MSDW payable within six months of such Prepayment) without reference to any projected profit or loss of MSDW, 
 (i) in the event that MSDW is not operating pursuant to the alternative net capital requirement provided for in paragraph (f) of the
Rule, the aggregate indebtedness of MSDW would exceed 1,000 percentum of its net capital as those terms are defined in the Rule or any successor rule as in effect at the time such Prepayment is to be made (or such other percentum as may be made
applicable at such time to MSDW by the Examining Authority), plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital
Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (ii) in the
event that MSDW is operating pursuant to such alternative net capital requirement, the net capital of MSDW would be less than 5 percentum (or such other percentum as may be made applicable to MSDW at the time of such Prepayment by the Examining
Authority) of aggregate debit items computed in accordance with Exhibit A to Rule 15c3-3 under the Act or any successor rule as in effect at such time, plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT,
which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (iii) in the event that MSDW is registered as a futures commission merchant under the CEA, the net capital of MSDW (as defined in the CEA
or CFTC Regulations as in effect at the time of such Prepayment) would be less than the greatest of (A) 7 percentum (or such other percentum as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority) of the
funds required to be segregated pursuant to the CEA and CFTC Regulations and the foreign futures or foreign options secured amount, exclusive of the market value of commodity options purchased by option customers on or subject to the rules of a
contract market or a foreign board of trade (provided the deduction for each option customer shall be limited to the amount of customer funds in each option customer’s account(s) and foreign futures and foreign options secured amounts), plus an
amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits
cannot be used for margin purposes, (B) such amount as may be made applicable to MSDW by an Examining Authority under Rule 15c3-1(b)(7), or (C) $2,000,000 (or such other amount as required by the CEA or CFTC Regulations), or 
 (iv) MSDW’s net capital, as defined in the Rule or any successor rule as in effect at the time of such Prepayment, would be less than
120 percentum (or such other percentum as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority) of the minimum dollar amount required by the Rule as in effect at such time (or such other dollar amount as may be
made applicable to MSDW at the time of such Prepayment by the Examining Authority), plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 

  

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211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or 
 (v) in the event that MSDW is registered as a futures commission merchant under the CEA, its net capital, as defined in the CEA or the
regulations thereunder, as in effect at the time of such Prepayment would be less than 120 percentum (or such other percentum as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority) of the minimum dollar amount
required by the CEA or the regulations thereunder as in effect as such time or such other dollar amount as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority, plus an amount equal to the guaranty deposits with
clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, or

 (vi) in the event that MSDW is subject to the provisions of paragraph (a)(6)(v) or (a)(7)(iv) or (c)(2)(x)(B)(1) of the
Rule, the net capital of MSDW would be less than the amount required to satisfy the 1000 percentum test (or such other percentum test as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority) stated in such
applicable paragraph, plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to
the extent such deposits cannot be used for margin purposes. 
 If Prepayment is made of all or any part of the Payment Obligation before the
date payment is due and if MSDW’s net capital is less than the amount required to permit such Prepayment pursuant to the foregoing provisions of this paragraph, the Participant agrees irrevocably (whether or not such Participant had any
knowledge or notice of such fact at the time of such Prepayment) to repay MSDW, its successors or assigns, the sum so paid to be held by MSDW pursuant to the provisions hereof as if such Prepayment had never been made; provided,
however, that any suit for the recovery of any such Prepayment must be commenced within two years of the date of such Prepayment. MSDW reserves the right to withhold from the Participant’s compensation the amount of any Payment
Obligation which a Participant fails to repay as required herein. 
  

	5.	Special Prepayment 

 MSDW, at its option and as
permitted by the Plan, but not at the option of the Participant, may make a payment of all or any portion of the Payment Obligation hereunder sooner than one year from the date on which such amount became subject to this agreement (a
“Special Prepayment”), if the written consent of the appropriate regulatory authority is first obtained. If MSDW shall be a futures commission merchant, as that term is defined in the CEA and CFTC Regulations, no such
prepayment shall be made if: 
 (i) after giving effect thereto (and to all payments of payment obligations under any other
Subordination Agreements then outstanding, the maturities or accelerated maturities of which are scheduled to fall due within six months after the date such Special Prepayment is to occur pursuant to this provision or on or prior to the date on
which the Payment 

  

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Obligation in respect to such Special Prepayment is scheduled to mature disregarding this provision, whichever date is earlier) without reference to any
projected profit or loss of MSDW, the net capital of MSDW is less than the greatest of (A) 10 percentum of the funds required to be segregated pursuant to the CEA and CFTC Regulations and the foreign futures or foreign options secured amount,
exclusive of the market value of commodity options purchased by option customers of MSDW on or subject to the rules of a contract market or a foreign board of trade (provided the deduction for each option customer shall be limited to the amount of
customer funds in such option customer’s account(s) and foreign futures and foreign options secured amount), plus an amount equal to the guaranty deposits with clearing organizations, other than the CBOT, which were included in current assets
under Section 211 of the CBOT “Capital Requirement for Member FCM’s”, to the extent such deposits cannot be used for margin purposes, (B) if MSDW is a securities broker or dealer, the amount of net capital specified in Rule
15c3-1(c)(5)(ii) of the regulations of the Securities and Exchange Commission (17 CFR 240.l5c3-1d(c)5(ii), or (C) $2,000,000 (or such other amount as required by the CEA or CFTC Regulations), or 
 (ii) Pretax losses during the latest three month period were greater than 15% of current excess adjusted net capital. 
  

	6.	Maturity Upon Certain Events 

 Notwithstanding the
provisions of Section 3 hereof, the Payment Obligation shall (to the extent not already matured) forthwith mature, together with all other Subordination Agreements then outstanding in the event of any receivership, insolvency, liquidation
pursuant to SIPA or otherwise, bankruptcy, assignment for the benefit of creditors, reorganization whether or not pursuant to bankruptcy laws, or any other marshaling of the assets and liabilities of MSDW. 
  

	7.	Miscellaneous Provisions 

 (a) Participants may not
rely upon any commodity exchange or securities exchange to provide any information concerning or relating to MSDW Such exchanges have no responsibility to disclose to the Participant any information concerning or relating to MSDW which they may have
now or at any future time. The Participant agrees that the New York Stock Exchange (the “NYSE”), its Special Trust Fund or any director, officer, trustee or employee of the NYSE or said Trust Fund or any other exchange or
director, officer, trustee or employee thereof shall not be liable to the Participant with respect to the Plan or any distribution pursuant thereto. 
 (b) The funds represented by the Payment Obligation shall be dealt with in all respects as capital of MSDW, shall be subject to the risks of the business and may be deposited in an account or accounts in MSDW’s
name in any bank or trust company. 
 (c) Payment Obligations under the Plan may not be transferred, sold, assigned, pledged or otherwise
encumbered or disposed of and no lien, charge or other encumbrance may be created or permitted to be created hereon, without the prior written consent of the Examining Authority. 
  

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 (d) If MSDW is a futures commission merchant as that term is defined in the CEA, MSDW agrees, consistent
with the requirements of Section l.17(h) of CFTC Regulations that whenever prior written notice by MSDW to the Examining Authority is required pursuant to the provisions of this agreement the same prior written notice shall be given by MSDW to
(1) the CFTC at its principal office in Washington, D.C., Attention: Chief Accountant of Division of Trading and Markets, and/or (2) the commodity exchanges of which MSDW is a member and which are then designated by the CFTC as MSDW’s
designated self-regulatory organizations as defined in Section 1.3(ff) of the CFTC Regulations (the “DSROs”). 
 (e) “Subordination Agreement” as used herein shall include any subordinated loan agreement and any secured demand note agreement constituting a satisfactory subordination agreement under the Rule under which MSDW is
the borrower or the pledgee of collateral, and reference herein to the payment of a subordinated obligation of MSDW shall be deemed to include the return to the maker-pledgor of any secured demand note and the collateral therefore held by MSDW

 (f) The term “Examining Authority” shall refer to the regulatory body, specified in paragraph (c)(12) of the Rule,
responsible for inspecting or examining MSDW for compliance with financial responsibility requirements. If MSDW is and continues to be a member of the NYSE, the references herein to the Examining Authority shall be deemed to refer to the NYSE. If
MSDW is and continues to be a futures commission merchant as that term is defined in the CEA and regulations thereunder, references to the Examining Authority shall also be deemed to refer to the CFTC and MSDW’s DSROs. 
 (g) The provisions of this Appendix A shall be binding upon and inure to the benefit of MSDW, its successors and assigns, and the Participant and the
Participant’s heirs, executors and administrators. 
 (h) Any controversy arising out of or relating to this Plan shall be submitted to
and settled by arbitration pursuant to the Constitution and Rules of the NYSE. MSDW and Participant shall be conclusively bound by such arbitration. 
 (i) MSDW shall not modify, amend or cancel this Appendix or any provision of the Plan governing the Payment Obligations that are the subject of this Appendix without the prior approval of the Examining Authority.

 (j) This agreement shall be deemed to have been made under and shall be governed by the laws of the State of New York. 
  

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