Document:

Exhibit
10.7

       

      ASSET
PURCHASE AGREEMENT

       

      AGREEMENT
(this “Agreement”) dated
as of July 22, 2008 between MSCI Inc., a Delaware corporation (“Buyer”), and Morgan Stanley
& Co. Incorporated, a Delaware corporation (“Seller”).

       

      W
I T N E S S E T H :

       

      WHEREAS,
Buyer conducts a business which provides investment decision support tools used
by institutional investors (the “Business”);

       

      WHEREAS,
Seller and/or certain of its Affiliates, own certain furniture, equipment and
fixtures used in the conduct of the Business;

       

      WHEREAS,
Seller desires to sell, and cause it Affiliates to sell, to Buyer (or its
designees) substantially all of the furniture, equipment and fixtures used
primarily in the Business, and Buyer desires to purchase all such furniture,
equipment and fixtures of the Business from Seller and such Affiliates, upon the
terms and subject to the conditions hereinafter set forth;

       

      The
parties hereto agree as follows:

       

       

      ARTICLE
1

      Definitions

       

      Section
1.01.  Definitions.  (a) As used
herein, the following terms have the following meanings:

       

      “Affiliate” means, with respect
to any Person, any other Person that directly or indirectly, through one or more
intermediaries, Controls, is Controlled by, or is under common Control with,
such first Person.  “Control” (and any form
thereof, including “Controlled
by”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through
ownership of voting securities, by contract or otherwise.

       

      “Applicable Law” means, with
respect to any Person, any federal, state or local law (statutory, common or
otherwise), constitution, treaty, convention, ordinance, code, rule, regulation,
order, injunction, judgment, decree, ruling or other similar requirement
enacted, adopted, promulgated or applied by a Governmental Authority that is
binding upon or applicable to such Person, as amended unless expressly specified
otherwise.

       

      “Bill of Sale” means the Bill
of Sale and Assignment Agreement in the form attached as Exhibit A and dated
as of the Closing Date among Seller, Buyer and the other Seller
Entities.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      “Business Day” means a day,
other than Saturday, Sunday or other day on which commercial banks in New York,
New York are authorized or required by Applicable Law to close.

       

      “Closing Date” means the date
of the Closing.

       

      “Governmental Authority” means
any transnational, domestic or foreign federal, state or local, governmental
authority, department, court, agency or official, including any political
subdivision thereof.

       

      “Person” means an individual,
corporation, partnership, limited liability company, association, trust or other
entity or organization, including a Governmental Authority.

       

      “Seller Entities” means,
collectively, the Seller and its Affiliates that own Purchased
Assets.

       

      (b)        Each
of the following terms is defined in the Section set forth opposite such
term:

       

      
        	
                Term

              	
                Section

              
	
                Agreement

              	
                Preamble

              
	
                Allocation

              	
                2.02

              
	
                Business

              	
                Recitals

              
	
                Buyer

              	
                Preamble

              
	
                Closing

              	
                2.03

              
	
                e-mail

              	
                7.01

              
	
                Purchase
      Price

              	
                2.02

              
	
                Purchased
      Assets

              	
                2.01

              
	
                Seller

              	
                Preamble

              
	 
      	 
      

      

      Section
1.02.  Other
Definitional and Interpretative Provisions.  The words
“hereof”, “herein” and “hereunder” and words of like import used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.  The captions herein are included for
convenience of reference only and shall be ignored in the construction or
interpretation hereof.  References to Articles, Sections, Exhibits and
Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement
unless otherwise specified.  All Exhibits and Schedules annexed hereto
or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth in full herein.  Any capitalized terms used
in any Exhibit or Schedule but not otherwise defined therein, shall have the
meaning as defined in this Agreement.  Any singular term in this
Agreement shall be deemed to include the plural, and any plural term the
singular.  Whenever the words “include”, “includes” or “including” are
used in this Agreement, they shall be deemed to be followed by the words
“without limitation”, whether or not they are in fact followed by those words or
words of 

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

      like
import.  “Writing”, “written” and comparable terms refer to printing,
typing and other means of reproducing words (including electronic media) in a
visible form.  References to any agreement or contract are to that
agreement or contract as amended, modified or supplemented from time to time in
accordance with the terms hereof and thereof; provided that with respect
to any agreement or contract listed on any schedules hereto, all such
amendments, modifications or supplements must also be listed in the appropriate
schedule.  References to any Person include the successors and
permitted assigns of that Person.  References from or through any date
mean, unless otherwise specified, from and including or through and including,
respectively.  References to “law”, “laws” or to a particular statute
or law shall be deemed also to include any and all Applicable Law.

       

       

      ARTICLE
2

      Purchase
and Sale

       

      Section 2.01.  Purchase and
Sale.  Except as otherwise provided below, upon the terms and
subject to the conditions of this Agreement, Buyer agrees to purchase from the
Seller Entities and Seller agrees to sell, convey, transfer, assign and deliver,
or cause each other Seller Entity to sell, convey, transfer, assign and deliver,
to Buyer (or its designees) at the Closing, on an AS IS, WHERE IS basis, all of
Sellers’ and such other Seller Entity’s right, title and interest in, to the
assets referenced on Schedule 2.01 (the “Purchased Assets”) and all
rights, claims, credits, causes of action or rights of set-off against third
parties relating to or arising from the Purchased Assets, including unliquidated
rights under manufacturers’ and vendors’ warranties.

       

      Section
2.02.  Purchase
Price.  The purchase price for the Purchased Assets (the “Purchase Price”) is $3,518,035.29 in
cash.  The Purchase Price shall be paid as provided in Section 2.03.

       

      Section
2.03.  Closing.  The
closing (the “Closing”)
of the purchase and sale of the Purchased Assets hereunder shall take place at
the offices of Davis Polk & Wardwell, 450 Lexington Avenue, New York, New
York at such time or place as Buyer and Seller may agree.  At the
Closing:

       

      (a)        Buyer
shall deliver to Seller the Purchase Price in immediately available funds by
wire transfer to an account of Seller with a bank in New York City designated by
Seller, by notice to Buyer, not later than two Business Days prior to the
Closing Date (or if not so designated, then by certified or official bank check
payable in immediately available funds to the order of Seller in such amount).

       

      (b)        Seller
and Buyer shall enter into, and Seller shall cause the other Seller Entities to
enter into, the Bill of Sale and, subject to the provisions hereof,

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      Seller
shall, and shall cause the other Seller Entities to, deliver to Buyer such
deeds, bills of sale, endorsements, consents, assignments and other good and
sufficient instruments of conveyance and assignment as the parties and their
respective counsel shall deem reasonably necessary to vest in Buyer all right,
title and interest in, to and under the Purchased Assets.

       

       

      ARTICLE
3

      Tax
Matters

       

      Section
3.01.  Transfer
Taxes.  All excise, sales, use, value added, registration
stamp, recording, documentary, conveyancing, franchise, property, transfer,
gains and similar taxes, levies, charges and fees incurred in connection with
the transactions contemplated by this Agreement shall be borne by
Buyer.

       

       

      ARTICLE
4

      Representations
and Warranties of Seller

       

      Seller
represents and warrants to Buyer as of the date hereof and as of the Closing
Date that:

       

      Section
4.01.  Corporate Existence and
Power.  Seller is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of
incorporation and has all corporate powers and all governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted.

       

      Section
4.02.  Corporate
Authorization.  The execution, delivery and performance by
Seller of this Agreement and the consummation of the transactions contemplated
hereby are within Seller’s corporate powers and have been duly authorized by all
necessary corporate action on the part of Seller.  This Agreement
constitutes a valid and binding agreement of Seller.

       

      Section
4.03.  Governmental
Authorization.  The execution, delivery and performance by
Seller of this Agreement and the consummation of the transactions contemplated
hereby require no action by or in respect of, or filing with, any Governmental
Authority.

       

      Section
4.04.  Noncontravention.  The execution, delivery and performance by
Seller of this Agreement and the consummation of the transactions contemplated
hereby do not and will not (i) violate the certificate of incorporation or
bylaws of Seller, (ii) violate any Applicable Law, (iii) require any consent or
other action by any Person under, or constitute a default under, any provision
of any agreement or other instrument binding upon such Seller or (iv) violate
any judgment, decree or order applicable to such Seller.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      ARTICLE
5

      Representations
and Warranties of Buyer

       

      Buyer
represents and warrants to Seller as of the date hereof and as of the Closing
Date that:

       

      Section
5.01.  Corporate Existence and
Power.  Buyer is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of
incorporation and has all corporate powers and all governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted.

       

      Section
5.02.  Corporate
Authorization.  The execution, delivery and performance by
Buyer of this Agreement and the consummation of the transactions contemplated
hereby are within the corporate powers of Buyer and have been duly authorized by
all necessary corporate action on the part of Buyer.  This Agreement
constitutes a valid and binding agreement of Buyer.

       

      Section
5.03.  Governmental
Authorization.  The execution, delivery and performance by
Buyer of this Agreement and the consummation of the transactions contemplated
hereby require no action by or in respect of, or filing with, any Governmental
Authority.

       

      Section
5.04.  Noncontravention.  The
execution, delivery and performance by Buyer of this Agreement and the
consummation of the transactions contemplated hereby do not and will not (v)
violate the certificate of incorporation or bylaws of Buyer, (vi) violate any
Applicable Law, (vii) require any consent or other action by any Person under,
or constitute a default under, any provision of any agreement or other
instrument binding upon such Buyer or (viii) violate any judgment, decree or
order applicable to such Buyer.

       

       

      ARTICLE
6

      Covenants
of Buyer and Seller

       

      Buyer and
Seller agree that:

       

      Section
6.01.  Reasonable Best Efforts; Further
Assurance.  Subject to the terms and conditions of this
Agreement, Buyer and Seller will use their reasonable best efforts to take, or
cause to be taken, all actions and to do, or cause to be done, all things
necessary or desirable under Applicable Law to consummate the transactions
contemplated by this Agreement.  Seller and Buyer agree to execute and
deliver such other documents, certificates, agreements and other writings and to
take such other actions as may be necessary or desirable in order to consummate
or implement expeditiously the transactions contemplated by this Agreement and
to vest in Buyer good title to the Purchased Assets.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      Section
6.02.  Public
Announcements.  The parties agree to consult with each other
before issuing any press release or making any public statement with respect to
this Agreement or the transactions contemplated hereby and, except for any press
releases and public statements the making of which may be required by Applicable
Law or any listing agreement with any national securities exchange, will not
issue any such press release or make any such public statement prior to such
consultation.

       

       

      ARTICLE
7

      Miscellaneous

       

      Section
7.01.  Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing (including facsimile transmission and electronic mail (“e-mail”) transmission, so long
as a receipt of such e-mail is requested and received) and shall be
given,

       

      if to
Buyer, to:

       

      MSCI
Inc.

      88 Pine
Street

      New York,
NY 10005

      Attn:
Frederick W. Bogdan, General Counsel

      Facsimile:
(212) 804-2906

       

      if to
Seller, to:

       

      Morgan
Stanley & Co., Incorporated

      1585
Broadway

      New York,
NY 10036

      Attn:
Martin M. Cohen, Director of Company Law

      Facsimile:
(212) 507-3334

       

      with a
copy to:

      

      Davis Polk
& Wardwell

      450
Lexington Avenue

      New York,
NY 10017

      Attn: John
A. Bick

      Facsimile:
(212) 450-3500

       

      or such
other address or facsimile number as such party may hereafter specify for the
purpose by notice to the other parties hereto.  All such notices,
requests and other communications shall be deemed received on the date of
receipt by the recipient thereof if received prior to 5:00 p.m. in the place of
receipt and such day is a Business Day in the place of
receipt.  Otherwise, any such notice, request or 

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      communication
shall be deemed not to have been received until the next succeeding Business Day
in the place of receipt.

       

      Section
7.02.  Survival.  The
representations and warranties of the parties hereto contained in this Agreement
shall survive the Closing.

       

      Section
7.03.  Amendments
and Waivers.  (a)  Any provision of this Agreement may be
amended or waived if, but only if, such amendment or waiver is in writing and is
signed, in the case of an amendment, by each party to this Agreement, or in the
case of a waiver, by the party against whom the waiver is to be
effective.

       

      (b)        No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by law.

       

      Section
7.04.  Expenses.  Except
as otherwise provided herein, all costs and expenses incurred in connection with
this Agreement shall be paid by the party incurring such cost or
expense.

       

      Section
7.05.  Successors
and Assigns.  The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided that no party may
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the consent of each other party hereto.

       

      Section
7.06.  Governing
Law.  This Agreement shall be governed by and construed in
accordance with the law of the State of New York, without regard to the
conflicts of law rules of such state.

       

      Section
7.07.  Jurisdiction.  The
parties hereto agree that any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby shall be brought in the United
States District Court for the Southern District of New York or any New York
State court sitting in New York City, so long as one of such courts shall have
subject matter jurisdiction over such suit, action or proceeding, and that any
cause of action arising out of this Agreement shall be deemed to have arisen
from a transaction of business in the State of New York, and each of the parties
hereby irrevocably consents to the jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding
and irrevocably waives, to the fullest extent permitted by law, any objection
that it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient
forum.  Process in any such suit, action or proceeding may be served
on any party 

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      anywhere
in the world, whether within or without the jurisdiction of any such
court.  Without limiting the foregoing, each party agrees that service
of process on such party as provided in Section 7.01
shall be deemed effective service of process on such party.

       

      Section
7.08.  WAIVER OF
JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF
OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

       

      Section
7.09.  Counterparts;
Effectiveness; Third Party Beneficiaries.  This Agreement may
be signed in any number of counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.  This Agreement shall become effective when each party
hereto shall have received a counterpart hereof signed by the other party
hereto. Until and unless each party has received a counterpart hereof signed by
the other party hereto, this Agreement shall have no effect and no party shall
have any right or obligation hereunder (whether by virtue of any other oral or
written agreement or other communication).  No provision of this
Agreement is intended to confer any rights, benefits, remedies, obligations, or
liabilities hereunder upon any Person other than the parties hereto and their
respective successors and assigns.

       

      Section
7.10.  Entire
Agreement.  This Agreement and the Bill of Sale constitute the
entire agreement between the parties with respect to the subject matter of
hereof and thereof and supersede all prior agreements and understandings, both
oral and written, between the parties with respect to such subject
matter.

       

      Section
7.11.  Bulk Sales
Laws.  Buyer and Seller each hereby waive compliance by Seller
with the provisions of the “bulk sales,” “bulk transfer” or similar laws of any
state.

       

      Section
7.12.  Severability.  If
any term, provision, covenant or restriction of this Agreement is held by a
court of competent jurisdiction or other Governmental Authority to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party.  Upon such a determination, the
parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the fullest extent possible.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above
written.

       

      
        	
                MSCI
      INC.

                 

              	 
	
                By:

              	
                /s/
      Gary Retelny

              	 
	 
      	
                Name:

              	
                Gary
      Retelny

              	 
	 
      	
                Title:

              	
                Corporate
      Secretary and Chief Administrative Officer

              	 

      

      

      

      
        	
                MORGAN
      STANLEY & CO. INCORPORATED

                 

              	 
	
                By:

              	
                /s/
      Martin M. Cohen

              	 
	 
      	
                Name:

              	
                Martin
      M. Cohen

              	 
	 
      	
                Title:

              	
                Managing
      Director

              	 

      

      

      

      

      [signature
page to Asset Purchase Agreement]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      Schedule
2.01

       

      MSCI

       

      ASSET
PURCHASE FROM MORGAN STANLEY

       

      
        	
                
                  Seller:  MS
      Financing Inc.

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  MSCI
      Inc.

              	
                Computer
      equipment (67 PCs) installed at 88 Pine Street, New York

              	 	 	201,260.15	 
	
                Desks
      installed at 88 Pine Street, New York

              	 	 	333,742.68	 
	
                Audio
      visual equipment installed at 88 Pine street, New York

              	 	 	72,046.76	 
	 
      	 
      	 	 	 	 
	 
      	
                Grand
      Total -all at 2nd and 3rd floors 88 Pine Street, New York

              	 	 	607,049.59	 
	 
      	 
      	 	 	 	 

      

      

      
        	
                
                  Seller:  MS
      Financing Inc.

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  Barra
      Inc.

              	
                Leasehold
      improvement on the 3rd floor of 88 Pine street, New
      York.  Including carpets, office walls, decorating and cabling
      installed

              	 	 	1,766,302.46	 
	 
      	 	 	 	 
	 
      	
                Grand
      Total -all on 3rd floor 88 Pine Street, New York

              	 	 	1,766,302.46	 
	 
      	 
      	 	 	 	 

      

      

      
        	
                
                  Seller:  Morgan
      Stanley & Co. Incorporated

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  Barra
      Inc.

              	
                Computer
      servers installed in 2100 Milvia Street, Berkeley,
    California

              	 	 	418,831.94	 
	
                Furniture
      on 3rd floor of 2100 Milvia Street, Berkeley, California

              	 	 	9,355.46	 
	
                70
      PCs installed in 555 California Street San Francisco and 2100 Milvia
      Street, Berkeley California

              	 	 	209,001.21	 
	
                Telecom
      equipment installed in 2100 Milvia Street, Berkeley,
      California

              	 	 	150,069.64	 
	 
      	 
      	 	 	 	 
	 
      	
                Grand
      Total

              	 	 	787,258.25	 
	 
      	 
      	 	 	 	 

      

      

      
        	
                
                  Seller:
      Morgan Stanley

                  UK
      Group

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  MSCI
      Limited

              	
                Cabling
      in London office

              	 	 	32,297.53	 
	
                Office
      construction

              	 	 	63,999.63	 
	
                Security
      configuration

              	 	 	46,660.81	 
	 
      	 	 	 	 
	 
      	
                Grand
      Total - all at 3rd
      floor, 75 King William Street, London, England

              	 	 	142,957.97	 
	 
      	 
      	 	 	 	 

      

      

      
        	
                
                  Seller:  Morgan
      Stanley Services (UK) Limited

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  MSCI
      Limited

              	
                Computer
      equipment - 56 PCs

              	 	 	70,374.20	 
	
                Furniture
      in 75 King William Street office

              	 	 	47,848.55	 
	
                Audiovisual
      equipment

              	 	 	33,408.74	 
	 
      	 
      	 	 	 	 
	 
      	
                Grand
      Total - all at 3rd
      floor, 75 King William Street, London, England

              	 	 	151,631.49	 
	 
      	 
      	 	 	 	 

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                
                  Seller:  Morgan
      Stanley Australia Finance Limited

                

              	
                
                  Asset
      Description

                

              	 	
                
                  Purchase
      Price

                

              	 
	
                Purchaser:  MSCI
      Australia Pty Limited

              	
                Computer
      Equipment: - 4 PCs

              	 	 	9,020.11	 
	
                Furniture
      in Sydney office of MSCI  on Level 9, 1 Castlereagh
      Street

              	 	 	12,403.41	 
	
                PBX
      in the Sydney office

              	 	 	41,412.01	 
	 
      	 
      	 	 	 	 
	 
      	
                Grand
      Total  - all at Level 9, 1 Castlereagh Street, Sydney,
      Australia

              	 	 	62,835.53	 

      

      

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      EXHIBIT
A

       

      BILL
OF SALE AND ASSIGNMENT AGREEMENT

       

      THIS BILL
OF SALE AND ASSIGNMENT (this “Bill of Sale”) dated as of
July 31, 2008 between Morgan Stanley & Co. Incorporated, a Delaware
corporation (“Seller”),
MSCI INC., a Delaware corporation (“Buyer”) and the other persons
listed on the signature pages hereto (together with Seller, the “Seller
Entities”).

       

      W
I T N E S S E T H :

       

      WHEREAS, Buyer and Seller have
concurrently herewith consummated the purchase by Buyer of the Purchased Assets
pursuant to the terms and conditions of the Asset Purchase Agreement dated July
22, 2008 between Buyer and Seller, (the “Asset Purchase Agreement”;
terms defined in the Asset Purchase Agreement and not otherwise defined herein
being used herein as therein defined);

      

      NOW, THEREFORE, in consideration of the
sale of the Purchased Assets and in accordance with the terms of the Asset
Purchase Agreement, the parties hereto agree as follows:

      

      1.     (a)
 Each Seller Entity does hereby, effective as of the Closing, convey, sell,
transfer, grant, assign and deliver unto Buyer and its successors and assigns,
forever, all of such Seller Entity’s right, title and interest in, to and under
the Purchased Assets listed opposite such Seller Entity’s name on Schedule 2.01
of the Asset Purchase Agreement, subject to the terms and conditions of the
Asset Purchase Agreement.

       

      (b)    Buyer
does hereby accept all the right, title and interest of each Seller Entity in,
to and under all of such Purchased Assets (except as aforesaid).

       

      2.      This
Bill of Sale is subject to all of the terms, conditions and limitations set
forth in the Asset Purchase Agreement.  All the Purchased Assets,
sold, transferred, assigned, conveyed and delivered hereunder are being sold,
transferred, assigned, conveyed and delivered to Buyer in an “AS IS, WHERE IS
CONDITION AND WITH ALL FAULTS” on the date hereof, subject to all latent and
patent defects.  THE SELLER ENTITIES MAKE NO REPRESENTATIONS OR
WARRANTIES AS TO THE PURCHASED ASSETS, INCLUDING AS TO THEIR PHYSICAL CONDITION,
USABILITY, MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.

       

       

       

      
        
          
          

        

        
          A-1

          
            

          

        

        
          
          

        

      

       

       

      3.      In
the event that any provision of this Bill of Sale is constructed to conflict
with a provision in the Asset Purchase Agreement, the provision in the Asset
Purchase Agreement shall be deemed to be controlling.

       

      4.      This
Bill of Sale shall be governed by and construed in accordance with the law of
the State of New York, without regard to the conflicts of law rules of such
state

       

      5.      This
Bill of Sale may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the
same instrument.

       

      

       

      [signatures
appear on following page]

       

       

       

       

      
        
          
          

        

        
          A-2

          
            

          

        

        
          
          

        

      

       

       

       

      IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.

       

       

      
        	
                MSCI
      INC.

                 

              	 
	
                By:

              	 
      	 
	 
      	
                Name:

              	 
      	 
	 
      	
                Title:

              	 
      	 

      

      

      

      
        	
                MORGAN
      STANLEY & CO. INCORPORATED

                 

              	 
	
                By:

              	 
      	 
	 
      	
                Name:

              	 
      	 
	 
      	
                Title:

              	 
      	 
	 	 	 	 
	 	 	 	 
	[THE
      OTHER SELLER ENTITIES]	 

      

      

      

             

      

      [signature
page to Bill of Sale]

    

     

     

     

    A-3EX-10.1

Exhibit 10.1

AMENDMENT TO

EMPLOYMENT AGREEMENT

          AMENDMENT, dated as of October 3, 2008, to the Employment Agreement (the “Employment
Agreement”), dated July 11, 2005, between G-III Apparel Group, Ltd., a New York
corporation, with an office at 512 Seventh Avenue, New York, New York 10018 (the
“Company”), and Sammy Aaron, an individual residing at 17 Ormond Park Road, Brookville,
New York 11545 (the “Executive”).

WITNESSETH:

          WHEREAS, the Company and Executive desire to amend the Employment Agreement in
certain respects.

          NOW, THEREFORE, in consideration of the premises and of the mutual promises,
representations and covenants herein contained, the parties hereto agree as follows:

     1. Employment. Section 1 of the Employment Agreement is hereby amended by deleting
the last sentence thereof.

     2. Term. Section 2 of the Employment Agreement is hereby amended and restated as
follows:

          “2. TERM. The term of employment under this Agreement shall terminate on
January 31, 2011, subject to prior termination in accordance with the terms hereof (the
“Term”); provided, however, that on each August 1st prior to the end of
the then Term, the Term of this Agreement shall be automatically extended for an
additional one-year period unless prior to such August 1st either party shall
have given written notice to the other that the Term of this Agreement shall not be
extended any further. If the Company shall provide such a notice to Executive, Executive
shall be entitled to receive the salary provided for in Section 3(a) of this Agreement for
a period of time that ends on the later of (i) the date on which this Agreement terminates
as a result of such notice and (ii) the date that is twelve months after the date of such
notice.”

     3. Compensation. Effective February 1, 2009, Section 3 of the Employment Agreement is
hereby amended by

          (i) adding “(a)” at the beginning of such Section and substituting “Seven Hundred
Fifty Thousand Dollars ($750,000)” for “Five Hundred Thousand Dollars ($500,000)”; and

 

 

          (ii) adding the following new paragraph (b) to such Section:

          “(b) For each fiscal year during the Term, commencing with the fiscal year ending
January 31, 2010, Executive shall be entitled to receive an annual cash bonus equal to the
percentage of the Company’s Pre-Tax Income (as hereinafter defined) in excess of
$2,000,000 with respect to each fiscal year of the Company during the Term, as follows:

	 	 	 	 	 
	 	 	Percentage of Pre-Tax Income in Excess
	If Pre –Tax Income is:	 	of $2,000,000 to be paid to Executive is:
	Under $2,000,000
	 	 	-0-	 
	$2,000,000 to $6,000,000
	 	 	3	%
	$6,000,001 or more
	 	 	4	%

     The term “Pre-Tax Income” as used in this Agreement shall mean the net income of the Company
and its subsidiaries, as reported in the consolidated financial statements of the Company prepared
by the Company’s independent public accountants, plus the sum of (i) the income taxes set forth in
such financial statements and (ii) the amount of the bonus payable pursuant to this Section 3(b);
provided, however that Pre-Tax Income shall be determined without regard to any extraordinary item,
as such term is used in generally accepted accounting principles.”

     4. Termination of Employment; Effect of Termination. Section 6 of the Employment
Agreement is hereby amended as follows:

          (a) Insert the following prior to the end of clause (v) of Section 6(a): “;
provided, however, that if (A) within six months after a Change in Control (as hereinafter
defined) Executive notifies the Company in writing of his desire to voluntarily terminate
his employment, the date of his termination of employment shall be the date specified by
the Company that is not more than six months after Executive’s notice is received by the
Company or (B) Executive is not offered the position of Chief Executive Officer of the
Company within thirty days after Morris Goldfarb is no longer the Chief Executive Officer
of the Company and, within thirty days after the end of such thirty-day period, Executive
notifies the Company in writing of his desire to voluntarily terminate his employment, the
date of his termination of employment shall be the date specified by the Company that is
not more than three months after Executive’s notice is received by the Company. The
Company shall provide its notice under clause (A) or (B) of the proviso in the preceding
sentence to Executive within thirty days after Executive’s notice is received by the
Company”.

-2-

 

          (b) Insert the following prior to the end of the first sentence of Section 6(f): “; provided,
however, that Section 6(i) shall apply in the event Executive’s employment is terminated as a
result of the events set forth therein”.

          (c) Insert the following prior to the end of Section 6(h): “, and Executive agrees to
immediately resign as a director of the Company (if he is then serving as a director)”.

          (d) A new Section 6(i) is hereby added to the Employment Agreement:

               “(i) (A) The Executive will receive the severance payments and benefits described this Section
6(i) if a Change in Control occurs during the Term and thereafter (1) the Company terminates the
Executive’s employment without justifiable cause or (2) the Executive terminates the Executive’s
employment for good reason within three months after the occurrence of the event giving rise to
such good reason. For the purposes of this Agreement, the term “Company” shall be deemed to
include the Company, any subsidiary of the Company and, following a Change in Control, any direct
or indirect successor to the Company.

               (i) (B) If a severance event described in clause (A) of this Section 6(i) occurs, then the
Executive will receive the following severance payments and benefits:

                    (1) an amount equal to 2.0 times the sum of (a) the Executive’s highest annual rate of salary
in effect during the one-year period preceding the date of the Executive’s employment terminates,
plus (b) the average annual cash bonus earned by the Executive during the two fiscal years
preceding the fiscal year in which the Executive’s employment terminates, which amount will be
payable in equal periodic installments during the 24-month period following the termination of the
Executive’s employment in accordance with normal payroll practices (for purposes of Section 409A of
the Internal Revenue Code (the “Code”), this series of installment payments is treated as a right
to a series of separate payments); provided, however, that for the purposes of clause (b) above,
the Executive’s bonus for each of the years ended January 31, 2008 and 2009 shall be deemed to be
$1,200,000; and

                    (2) If, immediately before the termination of the Executive’s employment, the Executive and/or
the Executive’s spouse and/or any of the Executive’s dependents participates (other than via COBRA)
in a Company group health plan, then, for the 24 months following the date of such termination (or,
if sooner, until corresponding coverage is obtained under a successor employer’s plan), the
Executive and/or such spouse and/or dependents may elect to continue participating in the Company’s
plan at the same benefit and contribution levels and on the same basis as if the Executive’s
employment had continued (which continuing participation will be deemed to be in addition to and
not in lieu of COBRA), or, if such coverage is not permitted by the plan or by applicable law,
then, in lieu of such coverage, the Company will provide COBRA continuation coverage to the
Executive, and the Executive’s spouse and/or dependents, at the Company’s sole expense, if and to
the extent any of such persons elects and is entitled to receive COBRA continuation coverage.

-3-

 

          (C) For the purposes hereof, “Change in Control” means (1) the consummation of (a) any
consolidation or merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of the Company’s voting stock would be converted into cash,
securities or other property, other than a merger of the Company in which the holders of the
Company’s voting stock immediately prior to the merger have the same proportionate ownership of
voting stock of the surviving corporation immediately after the merger, or (b) any sale, lease,
exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, the assets of the Company; or (2) the stockholders of the Company shall approve
any plan or proposal for liquidation or dissolution of the Company; or (3) any person (as such term
is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)), other than a person who on the date hereof is the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act) of 10% or more of the Company’s outstanding voting
stock, shall become the beneficial owner of 35% or more of the Company’s then outstanding voting
stock; or (4) during any period of two consecutive years, individuals who at the beginning of such
period constitute the entire Board of Directors of the Company (the “Board”) shall cease for any
reason to constitute a majority thereof unless the election, or the nomination for election by the
Company’s stockholders, of each new director was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of the period.

          (D) The Company’s obligation to continue to pay such compensation under this Section 6(i) and
provide such benefits shall be conditional upon (1) Executive executing a general release in the
form of Exhibit A attached hereto in favor of the Company waiving claims pertaining to the
termination of his employment and other customary employment-related claims and (2) Executive’s
compliance with his obligations under Section 8, 9, 10 and 11 hereof.

          (E) If the Executive is entitled to receive payments and benefits under this Section 6(i) and
if, when combined with the payments and benefits the Executive is entitled to receive under any
other plan, program or arrangement of the Company, the Executive would be subject to excise tax
under Section 4999 of the Code or the Company would be denied a deduction under Section 280G of the
Code, then the severance amounts otherwise payable to the Executive under this Agreement will be
reduced by the minimum amount necessary to ensure that the Executive will not be subject to such
excise tax and the Company will not be denied any such deduction.

          (F) The payment of any amount pursuant to this Section 6(i) shall be subject to all applicable
tax withholding. Notwithstanding any provision to the contrary in this Agreement, any payment
otherwise required to be made to the Executive on account of the termination of the Executive’s
employment, to the extent such payment is properly treated as deferred compensation subject to the
Section 409A of the Code and the regulations and other applicable guidance issued by the Internal
Revenue Service thereunder, and only if the Executive is treated as a “specified employee” within
the meaning of Section 409A of the Code at the time of his termination of employment, shall not be
made until the first business day after the expiration of

-4-

 

six months from the date of the Executive’s termination of employment or, if earlier, the date
of Executive’s death. On the payment date, as so delayed, there shall be paid to the Executive (or
the Executive’s estate, as the case may be) in a single cash payment an amount equal to aggregate
amount of the payments delayed pursuant to the preceding sentence. Notwithstanding the foregoing,
Executive shall be solely responsible, and the Company shall have no liability, for any taxes,
acceleration of taxes, interest or penalties arising under Section 409A of the Code. This
Agreement is intended to comply with the applicable requirements of Section 409A of the Code and
shall be limited, construed and interpreted in accordance with such intent. To the extent any
payment or benefit described hereunder is subject to Section 409A of the Code, it is intended that
it shall be paid in a manner that will comply with Section 409A of the Code. Notwithstanding
anything herein to the contrary, any provision hereunder that is inconsistent with Section 409A of
the Code shall be deemed to be amended to comply with Section 409A of the Code.”

     5. Non-Competition. Section 8(a) of the Employment Agreement is hereby amended to
read as follows:

     “In view of the unique and valuable services expected to be rendered by Executive to the
Company, Executive’s knowledge of the trade secrets and other proprietary information relating to
the business of the G-III Group and the Division and in consideration of the compensation to be
received hereunder, Executive agrees that until the later of (i) January 31, 2011 and (ii) a period
of one (1) year following the termination of Executive’s employment hereunder (the
“Non-Competition Period”), Executive shall not, whether for compensation or without
compensation, directly or indirectly, as an owner, principal, partner, member, shareholder,
independent contractor, consultant, joint venturer, investor, licensor, licensee, lender or in any
other capacity whatsoever, alone, or in association with any other business entity or individual,
carry on, be engaged or take part in, or render services (other than services which are generally
offered to third parties) or advice to, own, share in the earnings of, invest in the stocks, bonds
or other securities of, or otherwise become financially interested in, any business entity or
individual engaged in any business in competition with any business engaged in by the G-III Group
during the Term; provided, however, that if Executive voluntarily terminates his employment
pursuant to the proviso in clause (v) of Section 6(a), for the purposes of the preceding sentence,
the Non-Competition Period shall end on the date that is six months after the date of his
termination of employment as specified in such clause (v). The record or beneficial ownership by
Executive of up to the lesser of (i) $400,000 or (ii) 1.0% of the shares of any corporation whose
shares are publicly traded on a national securities exchange or in the over-the-counter market
shall not of itself constitute a breach hereunder. In addition, Executive shall not, directly or
indirectly, during the Non-Competition Period, (i) request or cause any customers or licensors with
whom the G-III Group has a business relationship to cancel or terminate any such business
relationship with any member of the G-III Group or (ii) solicit, interfere with, entice from or
hire from any member of the G-III Group, any employee of any member of the G-III Group or any
person who was an employee of any member of the G-III Group within one year prior to the
termination of Executive’s employment hereunder; provided, however that if (A) Executive
voluntarily terminates his employment pursuant to clause (A) of the proviso in clause (v) of
Section 6(a), for the purposes of clause (i) of this sentence, the

-5-

 

Non-Competition Period shall end on the date that is six months after the date of his
termination of employment as specified in such clause (A) and for the purposes of clause (ii) of
this sentence, the Non-Competition Period shall end on the date that is one year after the date of
his termination of employment as specified in such clause (A); or (B) Executive voluntarily
terminates his employment pursuant to clause (B) of the proviso in clause (v) of Section 6(a), for
the purposes of clause (i) of this sentence, subject to extension as provided in the following
sentence, the Non-Competition Period shall end on the date of Executive’s termination of employment
as specified in such clause (B) and for the purposes of clause (ii) of this sentence, subject to
extension as provided in the following sentence, the Non-Competition Period shall end on the date
that is one year after the date of Executive’s notice pursuant to such clause (B). At the time the
Company provides its notice to Executive pursuant to clause (B) of the proviso in clause (v) of
Section 6(a), the Company may elect to extend the Non-Competition Period for all purposes of the
preceding sentence to the date that is one year after the date of Executive’s termination of
employment as specified in such clause (B) by agreeing to pay and paying Executive an aggregate
amount of Two Million Dollars ($2,000,000) in equal monthly installments during such extended
Non-Competition Period commencing one month after Executive’s termination of employment as
specified in such clause (B).”

     6. Effect of Amendment. Except as specifically amended hereby, the Employment
Agreement shall remain in full force and effect.

     7. Counterparts and Facsimile Signatures. This Amendment may be signed in counterparts
with the same effect as if the signatures to each counterpart were upon a single instrument, and
all such counterparts together shall be deemed an original of this agreement. For purposes of this
Amendment, a facsimile or “PDF” copy of a party’s signature shall be sufficient to bind such party.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and
year first above written.

	 	 	 	 	 
	 	G-III APPAREL GROUP, LTD.

 	 
	 	By:  	/s/  Wayne S. Miller
 	 
	 	 	Name:  	Wayne S. Miller 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                                  /s/  Sammy Aaron
 	 
	 	Sammy Aaron 	 
	 	 	 
	 

-6-

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