Document:

Morgan Stanley Performance Formula and Provisions

 EXHIBIT 10.3 
 MORGAN STANLEY 
 PERFORMANCE FORMULA AND PROVISIONS 
 The following sets forth the performance formula (the “Performance Formula”) that was approved by the shareholders of Morgan
Stanley at the annual meeting of shareholders on March 22, 2001. The Performance Formula governs annual bonuses for certain executive officers of the Company under Section 162(m) of the Code. The Performance Formula was originally set
forth in the Morgan Stanley 1995 Equity Incentive Compensation Plan (the “EICP”). No awards may be made under the EICP after May 10, 2006; however, the Performance Formula continues to be effective as a valid
shareholder-approved performance formula for annual bonus awards paid other than under the EICP. Accordingly, the Performance Formula and related provisions (the “Performance Formula and Provisions”) are set forth below as a
stand-alone document for ease of administration. 
  

	1.	Definitions 

 As used herein, the following
capitalized words shall have the meanings set forth below: 
 “Award” means an award, including without limitation,
an award of restricted stock, stock units, stock options, or stock appreciation rights or another equity-based or equity-related award, granted under a Company equity compensation plan and subject to the terms and provisions of such plan.

 “Board” means the Board of Directors of Morgan Stanley. 
 “Code” means the Internal Revenue Code of 1986, as amended, and the applicable rulings and regulations thereunder. 
 “Committee” means the Compensation, Management Development and Succession Committee of the Board, any successor committee
thereto, or any subcommittee thereof consisting solely of at least two “outside directors” as defined under Section 162(m) of the Code. 
 “Company” means Morgan Stanley and all of its Subsidiaries. 
 “Date of
the Award” means the effective date of an Award as specified by the Committee. 
 “Fair Market Value”
means, with respect to a Share, the fair market value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee. 
 “Maximum Annual Bonus” has the meaning set forth in Section 2. 
 “Morgan Stanley” means Morgan Stanley, a Delaware corporation. 
  

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 “Pre-Tax Earnings” means Morgan Stanley’s income before income taxes as
reported in its consolidated financial statements adjusted to eliminate: (1) the cumulative effect of changes in accounting policy (which include changes in generally accepted accounting principles) adopted by Morgan Stanley, for the relevant
fiscal year; (2) expenses classified as “Provisions for Restructuring”; (3) expenses related to “Goodwill Amortization”; (4) gains and/or losses classified as “Discontinued Operations”; and (5) gains
or losses classified as “Extraordinary Items,” which may include: (A) profits or losses on disposal of assets or segments of the previously separate companies of a business combination within two years of the date of such combination;
(B) gains on restructuring payables; (C) gains or losses on the extinguishment of debt; (D) gains or losses from the expropriation of property; (E) gains or losses that are the direct result of a major casualty; (F) losses
resulting from a newly enacted law or regulation; and (G) other expenses or losses or income or gains that are unusual in nature or infrequent in occurrence. In each instance, the above-referenced adjustment to Pre-Tax Earnings must be in
accordance with generally accepted accounting principles and appear on the face of Morgan Stanley’s Consolidated Statements of Income contained in Morgan Stanley’s Consolidated Financial Statements for such fiscal year.

 “Section 162(m) Participant” means, for a given fiscal year of Morgan Stanley, any individual designated by the
Committee by not later than 90 days following the start of such year (or such other time as may be required or permitted by Section 162(m) of the Code) as an individual whose compensation for such fiscal year may be subject to the limit on
deductible compensation imposed by Section 162(m) of the Code. 
 “Share” means a share of common stock, par
value $0.01 per share, of Morgan Stanley. 
 “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 Performance Formula and
Provisions. 
  

	2.	Annual Bonus 

 Commencing with the fiscal
year of Morgan Stanley beginning December 1, 2000 and for each fiscal year of Morgan Stanley thereafter, each Section 162(m) Participant will be eligible to earn under the Performance Formula and Provisions an annual bonus for each fiscal
year in a maximum amount equal to 0.5% of Morgan Stanley’s Pre-Tax Earnings for that fiscal year (the “Maximum Annual Bonus”). In determining the annual bonus amounts payable under the Performance Formula and Provisions,
the Committee may not pay a Section 162(m) Participant more than the Maximum Annual Bonus, but the Committee shall have the right to reduce the bonus amount payable to such Section 162(m) Participant to take into account additional factors
that the Committee may deem relevant to the assessment of individual or corporate performance for the year. 
 Following the completion of
each fiscal year, the Committee shall certify in writing the Maximum Annual Bonus and the bonus amounts, if any, payable to Section 162(m) Participants 

  

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for such fiscal year. The bonus amounts payable to a Section 162(m) Participant will be paid annually following the end of the applicable fiscal year
after such certification by the Committee in the form of (i) cash, (ii) Awards with a value as of the Date of the Award, determined in accordance with Section 3 below, equal to the value of the annual bonus amount earned by the
Section 162(m) Participant for such fiscal year, or (iii) a combination of cash and such Awards. 
  

	3.	Valuation 

 If the Committee determines that
all or a portion of an annual bonus awarded to a Section 162(m) Participant for a given fiscal year is paid in whole or in part in the form of Awards, then for purposes of determining the number of Shares subject to such Awards, the Committee
may value the Shares at a discount to Fair Market Value to reflect the various restrictions, conditions and limitations applicable to the Shares, but such discount shall not exceed 50% of the Fair Market Value as of the Date of the Award.
Notwithstanding the foregoing, the Fair Market Value of any Awards plus any cash paid as an annual bonus pursuant to the Performance Formula and Provisions shall not exceed the Maximum Annual Bonus. 
  

	4.	Repeal of Section 162(m) of the Code 

 Without further action by the Board, the Performance Formula and Provisions shall cease to apply on the effective date of the repeal of Section 162(m) of the Code (and any successor provision thereto). 
  

 3Separation Agreement

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 THIS SEPARATION AGREEMENT (the “Agreement”) is dated as of
July 5, 2006, by and between X-RITE, INCORPORATED, a Michigan corporation with its principal office located at 3100 44th Street, S.W., Grandville, Michigan 49418 (“X-Rite”), and Peter M. Banks (“Banks”).

 WHEREAS, Banks currently serves on the Board of Directors of X-Rite (the “Board of Directors”) and on the Nominating and
Governance Committee (the “NGC”) and the Compensation Committee of the Board of Directors (the “Compensation Committee” and, together with the NGC, the “Committees”); and 
 WHEREAS, Banks desires to resign from the Board of Directors and the Committees, and X-Rite desires to provide Banks with certain compensation in
consideration of his service on the Board of Directors and his performance of the Consulting Services (as defined below), all on the terms and conditions set forth herein. 
 NOW, THEREFORE, X-Rite and Banks hereby agree as follows: 
  

	1.	Resignation. Banks hereby resigns from the Board of Directors, the NGC and the Compensation Committee, effective as of immediately prior to the completion of the acquisition
by X-Rite of a majority of the issued shares of Amazys Holding AG (“Amazys”) pursuant to the Transaction Agreement between X-Rite and Amazys dated January 30, 2006 (the “Termination Date”).

  

	2.	Director Emeritus Status. X-Rite shall take such action as is necessary to cause Banks to attain Director Emeritus status in accordance with X-Rite’s Amended and
Restated Bylaws (the “Bylaws”) effective as of the Termination Date and continuing for a period of five (5) years thereafter (the “Term”). In accordance with the Bylaws, during the Term, Banks shall (i) be
given notices of all meetings of the Board of Directors and (ii) be entitled to attend and participate in all such meetings, provided that Banks shall not be entitled to vote and shall not be counted for purposes of determining a quorum.
As provided in the Bylaws, during the Term, Banks shall receive an annual cash retainer fee equal to the lesser of (A) the annual cash retainer fee in place as of the Termination Date or (B) the annual cash retainer fee in place at any
time during the Term, and shall be entitled to reimbursement for expenses of attendance at meetings of the Board of Directors. 

  

	3.	Consulting Services. From and after the Termination Date, Banks shall perform such consulting services for X-Rite as the Board of Directors or Chief Executive Officer of
X-Rite may reasonably request from time to time (the “Consulting Services”). For the avoidance of doubt, Banks’ attendance and participation at meetings of the Board of Directors as a Director Emeritus shall not constitute
Consulting Services under this Agreement. 

  

	4.	Compensation. In consideration of Banks’ past service and his performance of the Consulting Services, X-Rite shall provide to Banks: 

  

	 	(a)	a cash payment in the amount of One Thousand United States Dollars ($1,000.00) for each day Banks provides the Consulting Services, payable within thirty (30) days following
Banks’ provision of the Consulting Services; and 

  

	 	(b)	an option to acquire 8,000 shares of X-Rite’s common stock, par value $0.10 per share, at a price per share equal to the fair market value of such shares on the day immediately
preceding X-Rite’s 2006 annual meeting of shareholders (the “Annual Meeting”), which option shall be granted to Banks promptly following the Annual Meeting. 

 Banks acknowledges and agrees that, except for annual retainer and meeting fees payable to Banks for the
period prior to the Termination Date and except as expressly provided herein, X-Rite shall have no obligation to pay or provide to Banks any compensation, payment or other consideration of any kind. 
  

	5.	Confidentiality. Banks shall forever hold in strictest confidence and shall not use or disclose any confidential information, technique, process, development, or experimental
work, trade secret, customer lists, or other secret and confidential matter relating to the products, services, sales, employees, or business of X-Rite. In addition, Banks agrees that he will not use such information for his benefit or the benefit
of any third party. 

  

	6.	Status; Taxes. The relationship of Banks to X-Rite shall be that of an independent contractor and nothing in this Agreement shall be deemed to create any employment or agency
relationship between X-Rite and Banks. Banks shall be responsible for, and shall timely file all reports related to, all personal income and other payroll taxes payable with respect to compensation received hereunder and accepts exclusive
responsibility for all contributions required under social security laws and unemployment compensation laws or other payments under any laws of similar character. 

  

	7.	Notice. All notices and other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to Banks at the address set forth under his signature, or to X-Rite at its principal executive offices to the attention of the Secretary, or to such other address as either
party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

  

	8.	Complete Agreement. This Agreement contains the full and complete understanding of the parties hereto with regard to the subject matter contained herein. No other agreements
or undertakings of the parties shall in any manner limit or alter the nature and scope of the terms hereof unless in writing duly executed by both parties and expressly providing that the same shall be controlling over any conflicting terms
contained herein. 

  

	9.	Assignment. This Agreement is personal as to the rights and interests of Banks, and as such, Banks may not assign or transfer his rights, duties or obligations under this
Agreement, in whole or in part, without the prior written consent of X-Rite. 

  

	10.	Waiver. The failure of X-Rite or Banks to insist, in any one or more instances, upon performance of any of the terms or conditions of this Agreement, shall not be construed
as a waiver or relinquishment of any rights granted hereunder or the future performance of any such term, covenant or condition. No amendment or waiver of any provision of this Agreement shall in any event be effective unless the same shall be in
writing and signed by the parties hereto, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

  

	11.	Governing Law. This Agreement was entered into in the State of Michigan and shall be construed and interpreted in accordance with the laws of the State of Michigan as applied
to contracts made and to be performed in the State of Michigan. Any action arising out of or to enforce this Agreement must be brought in courts in the State of Michigan. The parties consent to the jurisdiction of the courts in the State of Michigan
and to service of process by registered mail, return receipt requested, or by any other manner provided by law. 

  

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 IN WITNESS WHEREOF, X-Rite has caused this Agreement to be executed by a duly authorized corporate
officer and Banks has executed this Agreement as of the date and year first above written. 
  

			
	X-RITE:
	
	 X-RITE, INCORPORATED

		
	 By:
	 	 /s/ Mary E Chowning

	 Name:
	 	 Mary E. Chowning

	 Title:
	 	 Chief Financial Officer

	
	BANKS:
	
	 /s/ Peter M. Banks

	 Peter M. Banks

	
	 5602 Newanga Avenue

	 Santa Rosa, California 95405

  

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