Document:

Morgan Stanley Supplement Executive Retirement and Excess Plan

 EXHIBIT 10.2 
 MORGAN STANLEY 
 SUPPLEMENTAL EXECUTIVE RETIREMENT AND EXCESS PLAN 
 EFFECTIVE JANUARY 1, 1986 
 AS AMENDED AND
RESTATED EFFECTIVE DECEMBER 31, 2008. 
  

	I.	Purpose of Plan 

 The Supplemental Executive
Retirement and Excess Plan, formerly known as the Supplemental Executive Retirement Plan (the “Plan”) is an unfunded plan maintained by Morgan Stanley (the “Corporation”) for the purposes of (A) supplementing the retirement
benefits of certain employees who are Managing Directors or Principals or Executive Directors of the Firm or previously held the title of Managing Director or Principal or Executive Director of the Firm and (B) providing additional retirement
benefits to certain key employees who participate in the Pension Plan, based on the benefit formula that applied generally under the Pension Plan with respect to such employees prior to January 1, 2004. The Plan is not a plan intended to be
qualified under Code Section 401. 
 This December 31, 2008 restatement of the Plan reflects the merger of the Morgan
Stanley & Co. Incorporated Excess Benefit Plan (“Excess Plan”) with and into this Plan. Effective as of December 31, 2008, all benefits under the Excess Plan are transferred to this Plan and governed by the terms of this
Plan. This December 31, 2008 restatement of the Plan also includes changes to comply with the requirements of Code Section 409A and related regulatory guidance. 

 This December 31, 2008 restatement of the Plan applies to Participants employed by the Firm after
December 31, 2008. In addition, this restatement applies to Participants who terminated employment on or before December 31, 2008 and have undistributed benefits under the Plan on that date. Special provisions applicable to such
Participants are set forth in Appendix E to the Plan. 
  

	II.	Definitions and Assumptions 

 The following words
and phrases as used herein shall have the following meanings unless a different meaning is plainly required by the context. Capitalized terms used herein which are defined in the Pension Plan and are not otherwise defined herein shall have the
meanings specified in the Pension Plan. 
 A. “Actuarial Equivalent” shall mean the following: 
 (i) For determinations made prior to July 1, 1996, (X) subject to clause (Y) of this Paragraph II(A)(i), a benefit of
equivalent value which shall be determined based on (a) the Participant’s (and, where applicable, the beneficiary’s) age as of the Participant’s Benefit Commencement Date; (b) a mortality table equal to the 1983 Group
Annuity Mortality Table; and (c) an investment rate of six percent (6%) compounded annually; and (Y) in the case of a lump sum, an amount equivalent to the present value, as of the Participant’s Benefit Commencement Date, of the
Participant’s benefit payable as of the Participant’s Benefit Commencement Date in the form of a single life annuity based on (a) the age of the Participant as of his or her Benefit Commencement Date; (b) the mortality tables
described in clause (X)(b) of this Paragraph II(A)(i), and (c) an investment rate equal to the Pension Benefit Guaranty Corporation single employer plan termination immediate annuity interest rate in effect as of the second calendar month prior
to the Participant’s Benefit Commencement Date; and 
  

 2 

 (ii) For determinations made after June 30, 1996, and before January 1, 2004,
using those assumptions as to rate of interest and the mortality tables which are in effect from time to time for purposes of determining the actuarial equivalent under the Pension Plan in substantially similar situations and for substantially
similar purposes; provided, however, that in no event shall the Actuarial Equivalent for a given form of payment for any Participant’s SERP Benefit be less than the Actuarial Equivalent of such form of payment on June 30, 1996 for
Participants terminated prior to July 1, 1996, based upon Actuarial Equivalent determined in accordance with Paragraph II(A)(i) above. 
 (iii) Effective January 1, 2004, adjustments with respect to a Participant’s SERP Benefit shall be made with reference to the factors that apply for purposes of benefits accrued after 2003, other than lump
sums, under Exhibit A of the Pension Plan. Effective December 31, 2008, adjustments made with respect to a Participant’s Excess Benefit also shall be made with reference to such factors. For these purposes, any amendment to the Pension
Plan after December 31, 2008, that amends or alters such factors in Exhibit A shall be disregarded. In addition, the Plan Administrator may periodically review and update the factors used in making such adjustments to ensure such factors
produce actuarially equivalent life annuities for purposes of Code Section 409A and Treas. Reg. § 1.409A-2(b)(2)(ii) (or any successor provision). 
 (iv) Notwithstanding the foregoing, lump sums shall be calculated as set forth in Paragraph VI(E) and Appendix E. 
  

 3 

 B. “Annuity Starting Date” shall mean the first day of the month following the later of
(i) the date of the Participant’s Separation from Service and (ii) the date the Participant attains age 55, or such other date as may be specified in Appendix E. 
 C. “Authorized Absence” shall mean absence authorized by the Firm without loss of employment status, including absence on account of illness,
business of the Firm, vacation and leave of absence, including leave of absence for military or governmental service, whether or not salary shall be paid during such absence. Any person who ceases to be an employee receiving compensation from the
Firm but remains in the employment of the Firm shall be deemed for all purposes of the Plan to be on Authorized Absence without salary until such employment terminates or he again receives compensation from the Firm. 
 D. “Benefit” shall mean a Participant’s SERP Benefit and/or Excess Benefit, as applicable. 
 E. “Benefit Commencement Date” shall mean the date on which a Participant’s (or in the event of the Participant’s death, a
beneficiary’s) benefit under the Plan commences to be paid. Effective December 31, 2008, a Participant’s Benefit Commencement Date shall be the date specified in Paragraph VI(A) or Appendix E. 
 F. “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
  

 4 

 G. “Credited Service,” for purposes of determining a Participant’s SERP Benefit, shall be
computed as follows: 
 (i) Credited Service shall mean the sum of all periods of a Participant’s employment by the Firm
commencing from the first day of the month following the Participant’s date of hire or rehire. Subject to clause (ii) below, Credited Service shall also include (a) any period during which the Participant was a partner in Morgan
Stanley & Co., and (b) any period of Authorized Absence. 
 (ii) In computing Credited Service, a
Participant’s Credited Service shall be deemed to terminate on the earliest of: 
 (a) the date of the Participant’s
Separation from Service, or 
 (b) the first anniversary of the first date of a period in which the Participant remains absent
from service (with or without pay) for any reason other than Separation from Service or Authorized Absence, such as vacation, holiday, sickness or leave of absence. 
 (iii) The Credited Service of any individual described in any provision of Appendix C to the Plan shall be limited as set forth therein.

 (iv) For periods prior to December 31, 2008, except as may otherwise be provided in Appendix E, a Participant’s
Credited Service shall be determined under the rules then set forth in the Plan. 
 H. “Election Period” shall mean the period
specified by the Plan Administrator immediately following a Participant’s Separation from Service or such other period as may be specified by the Plan Administrator, provided that in all events such Election Period shall end prior to the
Benefit Commencement Date. 
  

 5 

 I. “Excess Benefit” shall mean the benefit described in Paragraph V. 
 J. “Final Average Salary” shall mean a Participant’s average annual Salary during his or her 60 highest paid consecutive months (excluding
months for which he or she received no Salary) during the final 120 months (or such lesser period as is equal to his or her Credited Service) of his or her Credited Service preceding his or her Separation from Service or other termination of
Credited Service. 
 K. “Firm” shall mean the Corporation, its subsidiaries and affiliates; provided, that effective May 31,
1997, the term “Firm” shall not include subsidiaries and affiliates of Dean Witter, Discover & Co., as in existence prior to its merger with the Corporation, and their subsidiaries and affiliates; and provided further, that
effective January 1, 1999, the term “Firm” shall not include Morgan Stanley International Incorporated (“MSII”) to the extent of MSII employees primarily servicing business units and/or cost centers of subsidiaries of the
former Dean Witter, Discover & Co., determined immediately prior to its merger with Morgan Stanley Group Inc. and no employment in such an excluded position shall count as “Credited Service” under the Plan, except as specifically
provided in Appendix C. The determination of whether an entity is considered a part of the “Firm” for purposes of the Plan shall be made by the Plan Administrator. 
 L. “Participant” shall mean an individual who has met the requirements for participation under Paragraph III(A) and/or Paragraph III(B).

  

 6 

 M. “Pension Plan” shall mean the Morgan Stanley Employees Retirement Plan, as amended from time
to time. References to sections of the Pension Plan shall, unless otherwise specified, include successor provisions in the Pension Plan. 
 N. “Salary” shall mean a Participant’s regular fixed base compensation earned for any period, whether or not paid during such period. 
 O. “Separation from Service” or “Separated from Service” shall mean a Participant’s “separation from service” as defined under Code Section 409A and Treas. Reg. §
1.409A-1(h) (or any successor provision). For this purpose, a Participant shall have a Separation from Service if the Participant ceases to be an employee of the Firm entity that employs the Participant and all persons with whom such entity would be
considered a single employer under Code Section 414(b) or (c). A Participant shall have a Separation from Service if it is reasonably anticipated that no further services shall be performed by the Participant, or that the level of services the
Participant shall perform shall permanently decrease to no more than 20 percent of the average level of services performed by the Participant over the immediately preceding 36-month period (or the Participant’s full period of service, if the
Participant has been performing services for less than 36 months). 
 P. “SERP Benefit” shall mean the benefit described in
Paragraph IV. A Participant’s SERP Benefit as of any specified date shall mean the amount computed in Paragraph IV(A), limited, if applicable, as described in Paragraph IV(B), and reduced by the SERP Offsets described in Paragraph IV(C). In no
event shall a SERP Benefit be payable to or with respect to a Participant who has a Separation from Service for any reason before reaching age 55, except as otherwise provided in Paragraph XIII. 
  

 7 

 Q. “SERP Offset” shall mean any benefit described in Paragraph IV(C)(i). 
 R. “Specified Employee” shall mean a Participant who is a “specified employee” within the meaning of Code Section 409A and
Treas. Reg. § 1.409A-1(i) (or successor provisions) on the date of his or her Separation from Service, as determined in accordance with the policies applicable with respect to Morgan Stanley’s U.S. executive compensation plans.

 S. “Surviving Domestic Partner” or “Domestic Partner” means the same or opposite sex domestic partner of a
Participant, provided that the domestic partner relationship meets the requirements set forth in the summary plan description for the Morgan Stanley Health and Welfare Benefits Plan, and provided further that, with respect to any death benefit
payable under Paragraph VI(C)(i) of the Plan, the Participant and domestic partner have been lawfully married or registered as domestic partners, as determined by the Plan Administrator, throughout the one-year period ending on the date of the
Participant’s death. 
 T. “Surviving Spouse” or “Spouse” shall mean the lawfully married spouse or surviving spouse
of a Participant, provided that, with respect to any death benefit payable under Paragraph VI(C)(i) of the Plan, the Participant and spouse have been lawfully married, as determined by the Plan Administrator, throughout the one-year period ending on
the date of the Participant’s death. 
  

 8 

	III.	Participation in the Plan 

 A. Participation
Requirements for SERP Benefits 
 Each employee who holds or has previously held the title of Managing Director, Principal
or Executive Director of the Firm shall become a Participant who is eligible for a SERP Benefit under Paragraph IV upon the satisfaction of all of the following requirements while actively employed by the Firm: (i) completion of five years of
Credited Service, which service need not have been rendered while a Managing Director, Principal or Executive Director of the Firm, (ii) attainment of age 55, and (iii) the sum of Credited Service and age expressed in years and fractions
thereof (determined using the number of full months of age or Credited Service) at least equals 65 years. Notwithstanding the foregoing, (a) only persons who have held the title of Managing Director, Principal or Executive Director of the Firm
prior to September 1, 2002 shall be eligible to become a Participant under this provision and (b) persons who are not Participants as of January 1, 2004 may become Participants under this provision on or after January 1, 2004
only if (1) they meet the foregoing requirements of this provision, and (2) either (I) the sum of their Credited Service and age, each as of January 1, 2004, equals 60 and they have at least 5 years of Credited Service as of
January 1, 2004 or (II) the sum of their Credited Service and age, each as of January 1, 2004, equals 59 and they have attained age 40 and have at least 10 years of Credited Service, each as of January 1, 2004. 
 B. Participation Requirements for Excess Benefits 
 Each employee of Morgan Stanley & Co. Incorporated or any affiliate who is a Member participating in the Pension Plan shall become a Participant who is eligible for an Excess Benefit under Paragraph V
whenever (i) such employee’s benefits under the Pension Plan, computed without taking into consideration the limitations on benefits contained in Section 10 

  

 9 

 
of the Pension Plan or Code Section 415 or any successor or comparable provisions, exceed the maximum annual benefits to which the employee is entitled
under the Pension Plan, taking into account such limitations or (ii) the employee’s salary from his or her employer exceeds the limit on salaries contained in the definition of “Salary” in Exhibit A to the Pension Plan or Code
Section 401(a)(17). Notwithstanding the foregoing, (a) only persons who have an Excess Benefit on December 31, 2003 may be Participants under this provision on or after January 1, 2004 and (b) persons who are described in
clause (a) of this sentence may continue to accrue an Excess Benefit after January 1, 2004 only if (1) the sum of their Period of Service as an Employee and age, each as of January 1, 2004, equals 60 and (2) they have a
Period of Service as an Employee of at least 5 years as of January 1, 2004 and (3) their rate of base pay is above $170,000 as of January 1, 2004. 
 C. Exclusions 
 Notwithstanding anything in the foregoing to the contrary, any person
who is (i) classified by the Firm as a “leased employee” who provides services to the Firm (including, without limitation, a leased employee as defined in Code Section 414(n)), an independent contractor or a consultant or
(ii) a provider of services to the Firm pursuant to a contractual arrangement, such as a “PAL”, either with that person or with a third party, other than one specifically providing for an employment relationship with the Firm, shall
not be eligible to become a Participant until the later of the date, if any, on which he becomes an employee who is not classified as a leased employee, independent contractor, consultant or a provider of services to the Firm and is employed in a
job classification that is eligible for participation in the Plan as 

  

 10 

 
determined by the Firm. If any person excluded as an employee pursuant to the preceding clauses (i) and (ii) shall be determined by a court or a
federal, state or local regulatory or administrative authority to have served as a common law employee of the Firm, such determination shall not alter this exclusion as an employee for purposes of this Plan. 
  

	IV.	SERP Benefits 

 The amount of the SERP Benefit
payable to a Participant who has met the participation requirements under Paragraph III(A) (and is not excluded from participation under Paragraph III(C) or Appendix C) shall be determined as set forth in this Paragraph IV. 
 A. SERP Benefit Formula 
 A Participant whose rights to benefits had vested under the Supplemental Executive Retirement Plan in effect prior to January 1, 1986 (the “Prior Plan”) is entitled to a single life annuity in an annual amount equal to the
greater of the amounts described in subparagraphs (i) and (ii) below. A Participant whose rights to benefits had not vested under the Prior Plan or who was not entitled to participate in the Prior Plan shall be entitled to a single life
annuity in the annual amount computed under subparagraph (ii) below: 
 (i) The amount which would have been payable
under the Prior Plan if the Participant had retired on December 31, 1985, based on the Participant’s Credited Service and Final Average Salary as of December 31, 1985, which amount shall be the sum of: 
 (a) 40% of his or her Final Average Salary, plus 
  

 11 

 (b) 2/12% of his or her Final Average Salary for each month of Credited Service in excess of 60 months
(up to a cumulative total of 50% of Final Average Salary at 10 years of Credited Service), plus 
 (c) 1/12% of his or her Final Average
Salary for each month of Credited Service in excess of 300 months (up to a cumulative total of 60% of Final Average Salary at 35 years of Credited Service); 
 (ii) An amount, based on the Participant’s Final Average Salary and Credited Service as of the date of such Participant’s
Separation from Service, determined as follows: 
 (a) 20% of his or her Final Average Salary, plus 
 (b) 2/12% of Final Average Salary for each completed month of Credited Service in excess of 60 months (up to a cumulative total of 50% of Final Average
Salary at 20 years of Credited Service), plus 
 (c) 1/12% of Final Average Salary for each completed month of Credited Service in excess of
300 months (up to a cumulative total of 60% of Final Average Salary at 35 years of Credited Service). 
 B. Maximum Benefits

 Notwithstanding any other provisions of this Paragraph IV to the contrary, the annual benefit to which a Participant whose
date of retirement is later than December 31, 1985 is entitled under Paragraph IV(A)(ii) shall in no event exceed US$140,000 (or in the case of a Participant whose date of retirement is in 1988, US$137,813; in the case of a Participant whose

  

 12 

 
date of retirement is in 1987, US$131,250; and in the case of a Participant whose date of retirement is in 1986, US$125,000). The amount of the benefit to
which a Participant is entitled under Paragraph IV(A)(ii), limited, if applicable, by the dollar amount set forth above, shall be determined as of the Participant’s Annuity Starting Date. The benefit payable under Paragraph IV(A)(i) shall not
be limited by this provision. 
 C. SERP Offsets 
 (i) The benefit to which a Participant is entitled under Paragraph IV(A), limited, if applicable, as described in Paragraph IV(B), shall
be reduced by the following benefits (each, a “SERP Offset”): 
 (a) Any Excess Benefits which the Participant is
entitled to receive under Paragraph V; 
 (b) Any benefits which the Participant is entitled to receive under the Dean Witter
Reynolds Inc. Supplemental Pension Plan, calculated as of December 31, 2008; 
 (c) Any pension benefits which the
Participant is entitled to receive under the terms of any qualified defined benefit pension plan or money purchase pension plan maintained by the Firm, such as the Pension Plan, or any other qualified pension or retirement plan that replaces any
such plan; 
 (d) Any pension benefits which the Participant is entitled to receive under the terms of any defined benefit or
money purchase pension plan established by a former employer (or affiliate of a former employer) of the Participant, whether or not such employer or affiliate is affiliated with the Firm, calculated as of December 31, 2008; 
  

 13 

 (e) Any benefits which the Participant is entitled to receive under the terms of any
other pension or retirement plan that acts as the primary retirement plan of an employer (including a division of an employer), provided that such plan is a “qualified employer plan” or “broad-based foreign retirement plan” for
purposes of Code Section 409A and Treas. Reg. §§1.409A-1(a)(2)) and §1.409A-1(a)(3)(v) (or successor provisions); and 
 (f) Any Retirement Contributions made on behalf of the Participant under the Morgan Stanley 401(k) Plan. 
 (ii) The amount of any reduction for a SERP Offset shall be calculated based on payment of both the benefit under this Paragraph IV and the SERP Offset as a single life annuity commencing at the Participant’s
Annuity Starting Date. If a SERP Offset is not payable as a single life annuity commencing at the Participant’s Annuity Starting Date, the reduction shall be based on the Actuarial Equivalent of such SERP Offset, determined as if such SERP
Offset were to be paid as a single life annuity commencing at the Participant’s Annuity Starting Date. The amount of any reduction for a SERP Offset shall be determined by including any interest of the Participant in the SERP Offset that has
been previously distributed or otherwise permissibly alienated or assigned, for example, pursuant to a qualified domestic relations order under Code Section 414(p). 
 (iii) Except as provided in Paragraph IV(C)(i)(f) above, a Participant’s benefit under Paragraph IV(A) shall not be reduced by
benefits payable under any defined contribution plan (other than a money purchase plan), including any benefits to which the Participant is entitled under the Morgan Stanley 401(k) Plan, the Shumagco Profit Sharing Plan or the Morgan 

  

 14 

 
Stanley International Profit Sharing Scheme. A Participant’s benefit under Paragraph IV(A) also shall not be reduced by any benefits, including benefits
under any plan described in Paragraph IV(C)(i) above, to the extent attributable to the Participant’s own contributions or discretionary supplemental contributions made by the Firm on the Participant’s behalf. 
 D. Reductions for Early Payment 
 If payment of a Participant’s SERP Benefit commences as a result of the Participant’s Separation from Service at or after age 60, the SERP Benefit will not be reduced for early payment. If payment of a
Participant’s SERP Benefit commences as a result of the Participant’s Separation from Service at any time at or after age 55 but before age 60, the benefit under Paragraph IV(A) and, if applicable, the dollar limitation under Paragraph
IV(B), shall be reduced by 4/12% for each month that the Participant’s Annuity Starting Date precedes the date on which the Participant attains age 60. 
 E. Currency Conversions 
 (i) Any compensation or SERP Offset paid in a foreign
currency shall be converted into U.S. dollars for the purpose of computing a Participant’s SERP Benefit in such manner as the Plan Administrator may from time to time determine. 
 (ii) If a Participant’s SERP Benefit is to be paid in a currency other than U.S. dollars, the amount of the SERP Benefit computed in
U.S. dollars shall be converted into such foreign currency at the Participant’s Annuity Starting Date in such manner as the Plan Administrator may determine, and the amount payable to the Participant in such foreign currency as so determined
shall remain in effect thereafter with respect to all payments to the Participant under the Plan. 
  

 15 

	V.	Excess Benefits 

 A. Calculation of Excess
Benefits 
 The amount of the Excess Benefit payable to a Participant who has met the participation requirements under
Paragraph III(B) (and is not excluded from participation under Paragraph III(C) or Appendix C) equals the excess of (i) the annual amount payable under the Pension Plan to such Participant, determined as if such Participant is a Grandfathered
MS Participant (regardless of whether such Participant actually is a Grandfathered MS Participant) and determined without regard to the limitations on salary and benefits described in Section 10 of the Pension Plan or Code Sections 401(a)(17)
and 415 or any successor or comparable provisions, over (ii) the maximum annual benefits to which such Participant is entitled under the Pension Plan, taking into account the terms of the Pension Plan (as they actually apply to the Participant)
and such limitations. A Participant’s Excess Benefit shall be calculated as of the Participant’s Annuity Starting Date, based on the Code Section 415 limitation in effect under the Pension Plan with respect to the Participant and
assuming that distribution of the Participant’s benefit under the Pension Plan commences in the form of a single life annuity at the Participant’s Annuity Starting Date. Notwithstanding the foregoing, effective December 31, 2004, in
determining the amount of a Participant’s Excess Benefit, the early retirement reduction factors that apply for purposes of benefits accrued on and after December 31, 2004 under Exhibit A of the Pension Plan shall apply, without regard to
the special reduction provision for certain Grandfathered MS Participants set forth in Section 4.4(d) of Exhibit A to the Pension Plan. 
  

 16 

 For purposes of determining a Participant’s Excess Benefit, any limitation on
compensation (or any similar term) applicable with respect to the SERP Benefits of any group of employees under Appendix C of the Plan also shall apply to such group’s Excess Benefits under the Plan. 
 If any benefit payment to a Participant or beneficiary under the Pension Plan is reduced pursuant to a qualified domestic relations order
under Code Section 414(p), the Excess Benefit payable on account of such participant or beneficiary shall be determined without regard to such reduction. 
  

	VI.	Timing and Form of Payment 

 A. Timing of
Payment 
 Except as provided in Appendix E, payment of a Participant’s Benefit shall commence on the later of
(i) the first day of the third month following the date of the Participant’s Separation from Service or, in the case of a Participant who is a Specified Employee, the first day of the seventh month following the date of the
Participant’s Separation from Service and (ii) the first day of the month following the date the Participant reaches age 55. 
  

 17 

 B. Form of Payment 
 (i) A Participant’s normal form of payment under the Plan shall be determined as follows: 
 (a) In the case of a Participant who, at the Annuity Starting Date, does not have a Spouse or Domestic Partner, the normal form of payment
shall be a single life annuity providing a monthly benefit to the Participant for life equal to 1/12 of the annual amount determined under Paragraph IV and/or Paragraph V, as applicable. 
 (b) In the case of a Participant who, at the Annuity Starting Date, has a Spouse or Domestic Partner, the normal form of payment shall be
a 100% joint and survivor annuity that is the Actuarial Equivalent of a single life annuity providing for a reduced monthly benefit to the Participant for life and, upon the Participant’s death after monthly payments begin, a monthly amount
equal to the Participant’s reduced monthly benefit continued to the Participant’s Spouse or Domestic Partner (if then living) for his or her life. 
 (ii) Notwithstanding the foregoing, a Participant may elect to have the Actuarial Equivalent of his or her Benefit paid in any form
available with respect to such Participant under the Pension Plan that qualifies as a “life annuity” for purposes of Code Section 409A and Treas. Reg. § 1.409A-2(b)(2)(ii) (or successor provisions), including (a) a single
life annuity, (b) a 50%, 75% or 100% joint and survivor annuity, or (c) a five or ten year term certain and life annuity, as further described in the Pension Plan. A Participant may elect different forms of payment for his or her Benefit
under this Plan and benefit under the Pension Plan, but if a Participant is receiving both a SERP Benefit and Excess Benefit under this Plan, the Participant must elect the same form of payment and, if applicable, the same joint annuitant or
beneficiary for each such benefit. 
  

 18 

 (iii) A Participant must make the payment election described in clause (ii) above by
filing the prescribed form(s) with the Plan Administrator during the Election Period and shall not be permitted to change or revoke any such election, including any designation of a joint annuitant, after the end of the Election Period. In the case
of a married Participant, spousal consent shall not be required for any such election, including the selection of a joint annuitant or beneficiary other than the spouse, except as may be required by law. 
 (iv) If a Participant has elected or is entitled to receive payment of his or her Benefit in the form of a 50%, 75% or 100% joint and
survivor annuity and the Participant’s joint annuitant dies before the later of the end of the Election Period or the Participant’s Annuity Starting Date, any payment election shall be void and the Participant shall be deemed to have
elected a single life annuity, unless the Participant elects another form of payment or designates a new joint annuitant before the later of the above dates. If a Participant is receiving or scheduled to receive his or her Benefit in the form of a
50%, 75% or 100% joint and survivor annuity and the Participant’s joint annuitant dies at any time after the later of the end of the Election Period or the Participant’s Annuity Starting Date, the Participant shall receive a reduced
annuity for his or her lifetime and no payments shall be made after the Participant’s death. 
 (v) If a Participant has
elected to receive payment of his or her Benefit in the form of a five or ten year term certain and life annuity and the Participant’s beneficiary dies before the later of the end of the Election Period or the Participant’s Annuity
Starting Date, the payment election shall be void and the Participant shall be deemed to have elected a single life annuity, unless the Participant elects another form of payment or designates a new beneficiary 

  

 19 

 
before the later of the above dates. If a Participant is receiving or scheduled to receive his or her Benefit in the form of a five or ten year term certain
and life annuity and the Participant’s beneficiary dies at any time after the later of the end of the Election Period or the Participant’s Annuity Starting Date, the Participant shall receive payment in the elected form for his or her
lifetime and, in the event of the Participant’s death before the guaranteed number of payments have been made, the remainder of the payments shall be paid to the Participant’s estate. The rules set forth in Section 7(f) of the Pension
Plan (as in effect on December 31, 2008) regarding the recipient of the payment of a term certain and life annuity following the death of the Participant and/or the Participant’s beneficiary after the Participant’s Annuity Starting
Date shall also apply for purposes of this Plan. 
 C. Death of Participant. 
 (i) In the event that a Participant who is entitled to a SERP Benefit and/or Excess Benefit dies at any time before his or her Annuity
Starting Date, notwithstanding any payment election previously made by the Participant, the Surviving Spouse or Surviving Domestic Partner of the Participant shall receive a benefit equal to the benefit which would have been paid to such Surviving
Spouse or Surviving Domestic Partner if the Participant had separated from service and commenced receiving payment of his or her benefit in the form of a 100% joint and survivor annuity in accordance with Paragraph VI(B)(i)(b) above (with the
Surviving Spouse or Surviving Domestic Partner as joint annuitant) as of the later of the day before the Participant died or the date the Participant attained, or would have attained, age 55. Payments shall commence to the Surviving Spouse or
Surviving Domestic Partner on the Benefit 

  

 20 

 
Commencement Date (i.e., in general, on the later of (i) the first day of the third month following the date of the Participant’s Separation from
Service or, in the case of a Participant who is a Specified Employee, the first day of the seventh month following the date of the Participant’s Separation from Service and (ii) the first day of the month following the date the Participant
attained, or would have attained, age 55). If a Participant who dies before his or her Annuity Starting Date does not have a Surviving Spouse or Surviving Domestic Partner, notwithstanding any payment election previously made by the Participant, no
benefit shall be paid under the Plan with respect to such Participant. 
 (ii) If a Participant dies at any time on or after
his or her Annuity Starting Date, any survivor benefit payable with respect to the Participant shall be based on the form in which the Participant’s Benefit was being paid prior to his or her death or was scheduled to be paid based on the
Participant’s payment election or, if none, the applicable normal form under
 Paragraph VI(B)(i). 
 D. Retroactive
Payments 
 Notwithstanding anything in the foregoing to the contrary, in the case of a Participant or beneficiary whose
Benefit Commencement Date under Paragraph VI(A) is the first day of the third or seventh month following the date of the Participant’s Separation from Service, the first payment made to the Participant or beneficiary shall include an additional
amount equal to the sum of all monthly payments that would have been paid to the Participant or beneficiary had payments commenced on the Annuity Starting Date, without interest. 
  

 21 

 E. Lump Sum Payment of Small Benefits 
 Notwithstanding anything in the foregoing to the contrary, the present value of a Participant’s Benefit, calculated as of the first
day of the month following a Participant’s Separation from Service based on the factors used to calculate lump sums under Appendix A of Exhibit A to the Pension Plan, plus interest through the payment date set forth below at the same interest
rate as that used to calculate the present value of the Benefit, shall be paid to the Participant or beneficiary in a single lump sum on the first day of the third month following the date of the Participant’s Separation from Service or, in the
case of a Participant who is a Specified Employee, the first day of the seventh month following the date of the Participant’s Separation from Service, if such amount (including interest) is not greater than the applicable dollar amount under
Code Section 402(g)(1)(B) as in effect on the payment date and all other requirements under Treas. Reg. § 1.409A-3(j)(4)(v) (or any successor provision) have been met. 
 F. Reemployment 
 If a
Participant who is receiving payment or scheduled to receive payment on account of Separation from Service is reemployed by the Firm, payments shall be made to the Participant as scheduled without regard to his or her reemployment. Any new Benefit
earned by the Participant following his or her reemployment shall be paid following the Participant’s subsequent Separation from Service in accordance with the foregoing provisions of this Paragraph VI, reduced by the Actuarial Equivalent of
any Benefit previously paid to the Participant. 
  

 22 

 G. Suspension or Forfeiture of Benefits 
 At the Plan Administrator’s discretion, payment of a Participant’s Benefit may be suspended or forfeited in the event that a
Participant enters into competition with Morgan Stanley, provided, however, that any such suspension or forfeiture shall be consistent with the rules under Code Section 409A. 
 H. Early Payment of Benefits. The Plan Administrator, in its sole discretion, may authorize early payment of all or a portion of a
Participant’s Benefit to the extent permitted by Treas. Reg. § 1.409A-3(j)(4)(vi) (or any successor provision). Pursuant to that provision, payment may be accelerated to pay any Federal Insurance Contributions Act (FICA) tax imposed on
compensation deferred under the Plan, to pay any federal, state, local or foreign income tax imposed as a result of payment of the FICA tax amount, and to pay the additional income tax attributable to the pyramiding wages and taxes. The total
payment may not exceed the aggregate FICA tax amount and the income tax withholding related to such FICA tax amount. 
  

	VII.	Administration of the Plan 

 The Plan Administrator
designated in the Pension Plan shall administer the Plan, provided, however that the person or persons to whom authority over claims and appeals under the Pension Plan have been assigned (the “Claims Authorities”) shall have authority over
claims and appeals under this Plan. The Plan Administrator and Claims Authorities shall have authority over claims and appeals under this Plan, shall have the same rights, responsibilities and authority under this Plan as are assigned to them under
the Pension Plan, the relevant provisions of which are incorporated herein by this reference. Interpretations of the Plan Administrator and the 

  

 23 

 
Claims Authorities shall be conclusive and binding on all persons. The Plan is intended to comply with the requirements of Code Section 409A and shall
be administered and interpreted accordingly. Any claim for benefits must be made by the claimant no later than the time prescribed by Treas. Reg. § 1.409A-3(g) (or any successor provision). If a claimant’s claim or appeal is approved, any
resulting payment of benefits will be made no later than the time prescribed for payment of benefits by Treas. Reg. § 1.409A-3(g) (or any successor provision). 
  

	VIII.	Funding of Benefits 

 No Participant shall have or
accrue any property interest whatsoever in any specific assets of the Firm by virtue of the Plan or any Benefit payable hereunder. Neither the Plan nor any Benefit payable hereunder shall create or be construed to create a trust or separate fund of
any kind or a fiduciary relationship between the Firm (or any entity included in the Firm) and a Participant or any other person. 
  

	IX.	Amendment and Termination of Plan 

 It is expected
that the Plan will be continued indefinitely, but the Plan may be terminated at any time by the Board of Directors of Morgan Stanley, including in the event the Pension Plan is terminated. If the Plan is terminated, the Board of Directors of Morgan
Stanley may authorize early payment of Benefits to Participants and beneficiaries to the extent consistent with the requirements of Treas. Reg. § 1.409A-3(j)(4)(ix) (or any successor provision). The Plan also may be amended at any time by the
Board of Directors of Morgan Stanley with respect to any present or future Participants. The Board of Directors has delegated its authority to amend the Plan to the Board of Directors of Morgan Stanley & Co. Incorporated (or its delegate).

  

 24 

	X.	Effective Date 

 The effective date of this
amendment and restatement is December 31, 2008. 
  

	XI.	Governing Law 

 This Plan shall be construed in
accordance with and governed by the laws of the State of New York and, when applicable, the laws of the United States of America. 
  

	XII.	Inalienability of Rights and Interests. 

 No benefit
payable under the Plan shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge or security interest and any such attempted action shall be void. No such benefit or interest shall in any
manner be liable for or subject to debts, contracts, liabilities, engagements or torts of any Participant, former Participant or beneficiary. If any Participant, former Participant or beneficiary shall become bankrupt or shall attempt to anticipate,
alienate, sell, transfer, assign, pledge, encumber, or charge, or create a security interest in, any benefit payable under the Plan or interest in any assets in relation to the Plan, then, to the extent permitted by law, subject to the requirements
of Code Section 409A, the Plan Administrator in its discretion may hold or apply such benefit or interest or any part thereof to or for the benefit of such Participant, former Participant or beneficiary, his or her spouse, children, blood
relatives or other dependents or any of them in such manner and such proportion as the Plan Administrator may consider proper. 
  

	XIII.	Management Committee Members. 

 Notwithstanding any
provision in this Plan to the contrary, in the event that an employment, termination or similar agreement approved by the Compensation, Management 

  

 25 

 
Development and Succession Committee of the Board of Directors of Morgan Stanley applies to an individual who is, was or will be a member of the Management
Committee, the terms of the Plan, including eligibility, participation and amount of benefits, shall be applied with respect to such individual by taking into account such provisions of such employment, termination or similar agreement as shall
explicitly refer to this Plan, provided that no such agreement shall alter the timing or form of payment of any Participant’s Benefit as set forth in Paragraph VI of the Plan. 
  

			
	MORGAN STANLEY
		
	By:	 	/s/ Karen Jamesley
		
	Title:	 	Global Head of Human Resources

  

 26Second Amended and Restated Employment Agreement dated as of December 16, 2008

 EXHIBIT 10.3 
 SECOND AMENDED AND RESTATED 
 EMPLOYMENT AGREEMENT 
 This SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) by and between Morgan Stanley (the “Company”), and John J.
Mack (the “Executive”) dated as of December 16, 2008 amends and restates the original employment agreement entered into by and between the Company and the Executive on June 30, 2005 and amended as of September 20,
2005, December 13, 2005 and February 13, 2006. 
 WHEREAS, the Board of Directors of the Company (the “Board”) has
determined that it is in the best interests of the Company and its shareholders to employ the Executive as the Company’s Chief Executive Officer and to have the Executive become Chairman and a member of the Board; 
 WHEREAS, the Company desires to enter into an agreement embodying the terms of such employment and service; and 
 WHEREAS, the Executive desires to enter into this Agreement and to accept such employment and service, subject to the terms and provisions of this
Agreement; 
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable
consideration, the receipt of which is mutually acknowledged, the Company and the Executive (individually a “Party” and together the “Parties”) agree as follows: 
 1. Effective Date. The “Effective Date” shall mean June 30, 2005. 
 2. Employment Period. The Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company subject to
the terms and conditions of this Agreement, for the period commencing on the Effective Date and ending on the fifth anniversary thereof (the “Employment Period”). 
 3. Terms of Employment. (a) Position and Duties. (i) During the Employment Period, (A) the Executive shall serve as the
Chairman of the Board and Chief Executive Officer of the Company, with such authority, duties and responsibilities as are commensurate with such positions, reporting directly to the Board, and (B) the Executive’s principal location of
employment shall be at the principal headquarters of the Company; provided, that the Executive may be required under reasonable business circumstances to travel outside of such location in connection with performing his duties under this
Agreement. In addition, the Company shall cause the Executive to be appointed as a member of the Board as of the Effective Date, and following such date, the Executive shall remain on the Board, subject to Section 4(g), and shall perform his
duties as a director of the Company conscientiously and faithfully. 

 (ii) The Executive agrees that during the Employment Period, he shall devote
substantially all of his business time, energies and talents to serving as the Company’s Chairman of the Board and Chief Executive Officer, perform his duties conscientiously and faithfully subject to the reasonable and lawful directions of the
Board, and in accordance with each of the Company’s corporate governance and ethics guidelines, conflict of interests policies and code of conduct (collectively, the “Company Policies”) applicable to all Company employees or senior
executives generally. During the Employment Period, it shall not be a violation of this Agreement for the Executive, subject to the requirements of Section 8, to (A) serve on corporate, civic or charitable boards or committees,
(B) deliver lectures or fulfill speaking engagements and (C) manage personal investments, so long as such activities do not materially interfere with the performance of the Executive’s responsibilities as the Chief Executive Officer
or as Chairman or a director of the Board in accordance with this Agreement. 
 (b) Compensation. (i) Base Salary. During
the Employment Period, the Executive shall receive an annualized base salary (“Annual Base Salary”) of not less than the individual who served as Chief Executive Officer of the Company immediately prior to the Executive (the “Prior
CEO”), payable pursuant to the Company’s normal payroll practices. During the Employment Period, the current Annual Base Salary shall be reviewed for increase only (and once increased shall never be decreased) at such time as the salaries
of senior executives of the Company are reviewed generally, provided that, the Executive’s first such review shall occur no earlier than fiscal year 2006. 
 (ii) Annual Bonus. For each fiscal year completed during the Employment Period, the Executive shall be eligible to receive an
annual bonus (“Annual Bonus”) on terms and conditions and based upon performance targets that are established by the Compensation, Management Development and Succession Committee of the Board or its successor (the “Committee”),
provided that in no event shall such terms and conditions or performance targets be less favorable to the Executive than to senior executives of the Company generally. 
 (iii) Long-Term Incentive Compensation. For each fiscal year completed during the Employment Period, the Executive shall be
eligible to receive long-term incentive compensation (“Long-Term Incentive Compensation”, and together with Annual Base Salary and Annual Bonus, “Total Compensation”) on terms and conditions no less favorable to the Executive
than (x) members of the Operating Committee of the Company (the “ Operating Committee”) generally and (y) the terms and conditions of the Equity Incentive Compensation Plan, 2004 Discretionary Retention Awards Award Certificate
(the “2004 EICP”); provided that for purposes of the Long-Term Incentive Compensation (other than the Special RSU Grant (as 

  

 2 

 
defined below)), the Executive shall be treated as if the Executive had been continuously employed by the Company and had not terminated employment with the
Company in January 2001; provided, further, that the Executive shall not be so treated in the event that prior to the first anniversary of the Effective Date the Executive is terminated for Cause (as defined below). The proportion of
Total Compensation provided to the Executive as Annual Base Salary, Annual Bonus and Long-Term Incentive Compensation, respectively, for each of fiscal years 2005 and 2006 shall be substantially similar to the proportion of Total Compensation
provided as Annual Base Salary, Annual Bonus and Long-Term Incentive Compensation, respectively, to members of the Operating Committee generally. 
 (iv) Special RSU Grant. As soon as practicable following the Effective Date, the Executive shall be granted a special one-time grant of 500,000 restricted stock units based on shares of the Company’s
common stock (the “Special RSU Grant”). Twenty percent of the Special RSU Grant shall vest, and the underlying shares shall be delivered, on the first anniversary of the Effective Date, 20 percent of the Special RSU Grant shall vest, and
the underlying shares shall be delivered, on each of the second, third, fourth and fifth anniversaries of the Effective Date. Except as specifically set forth herein, the Special RSU Grant shall have the same terms and conditions as grants of
restricted stock units under the 2004 EICP. In no event shall the Special RSU Grant be considered part of the Executive’s Total Compensation. 
 (v) Retirement Benefits. During the Employment Period, the Executive shall be eligible to participate in any qualified or nonqualified deferred compensation, pension, and retirement plans maintained by the
Company applicable to senior executives of the Company generally, in each case, as amended from time to time, provided that for all purposes of such plans, the Executive shall be treated as if the Executive had been continuously employed by
the Company and had not terminated employment with the Company in January 2001, provided, further, that the Executive shall not be so treated in the event that prior to the first anniversary of the Effective Date the Executive is
terminated for Cause. 
 (vi) Other Benefits. During the Employment Period, the Executive shall be entitled to
participate in all welfare, perquisites, fringe benefit, and other benefit plans, practices, policies and programs, as may be in effect from time to time, for senior executives of the Company generally, provided that, during the Employment
Period, the Executive shall receive perquisites no less favorable than those provided to the Prior CEO, including, without limitation, use of the Company’s aircraft and use of a car and driver. In addition, following the Executive’s
retirement or any termination of his employment, the Executive shall be entitled to retiree health benefits pursuant to the retiree health plans, practices, programs and policies of the Company (or under programs providing the same benefits), and
for purposes of determining the amount of the Executive’s contributions and benefits under such plans, practices, programs and policies, the Executive shall be treated as if the Executive had been continuously employed by the Company and had
not terminated employment with the Company in January 2001 (the “Executive’s Retiree Health Benefits”), provided, that the Executive shall not be entitled to the Executive’s Retiree Health Benefits in the event that prior
to the first anniversary of the Effective Date the Executive is terminated for Cause. 
  

 3 

 (vii) Expenses. During the Employment Period, the Executive shall be entitled to
receive prompt reimbursement for business expenses incurred by the Executive in accordance with the Company’s policies, as may be in effect from time to time, for its senior executives generally. 
 (viii) Vacation. During the Employment Period, the Executive shall be entitled to paid vacation in accordance with the
Company’s policies, as may be in effect from time to time, for its senior executives generally, provided that for purposes of determining the Executive’s vacation benefits, the Executive shall be treated as if the Executive had been
continuously employed by the Company and had not terminated employment with the Company in January 2001. 
 (ix) Office and
Support Staff. During the Employment Period, the Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and shall be provided with secretarial and administrative assistance, as is provided
generally to other senior executives of the Company. 
 (c) Other Entities. The Executive agrees to serve, without additional
compensation, as an officer and director for each of the Company’s subsidiaries, partnerships, joint ventures, limited liability companies and other affiliates, including entities in which the Company has a significant investment (collectively,
the Company and such entities, the “Affiliated Group”), as determined by the Company, provided, that such service does not materially interfere with the Executive’s performance of his duties and responsibilities as the Chairman
of the Board and Chief Executive Officer of the Company. As used in this Agreement, the term “affiliates” shall include any entity controlled by, controlling, or under common control with the Company. 
 4. Termination of Employment. (a) Death or Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. In the event a Disability of the Executive has occurred during the Employment Period (pursuant to the definition of Disability set forth below), the Company may provide the Executive with written
notice in accordance with Section 11(b) of this Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall terminate effective on the 30th day after receipt of
such notice by the Executive (the “Disability Effective Date”), provided that, within the 30-day period after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties. For purposes
of this Agreement, “Disability” shall mean the inability of the Executive to perform his duties with the Company on a full-time basis for six consecutive months as a result of incapacity due to mental or physical illness which is
determined to be total and permanent by a licensed 

  

 4 

 
physician mutually selected by (i) the Company or its insurers and (ii) the Executive or the Executive’s legal representative. If the Parties
cannot agree on a licensed physician, each Party shall select a licensed physician and the two physicians shall select a third who shall be the approved licensed physician for this purpose. 
 (b) Cause. The Company may terminate the Executive’s employment during the Employment Period with or without Cause. For purposes of this
Agreement, “Cause” shall mean: 
 (i) the continued failure of the Executive to perform substantially the
Executive’s duties with the Company (other than any such failure resulting from incapacity due to physical or mental illness), for a period of 10 days after a written demand for substantial performance is delivered to the Executive by the Board
which specifically identifies the manner in which the Board believes that the Executive has not substantially performed the Executive’s duties, or 
 (ii) the willful engaging by the Executive in illegal or fraudulent conduct or gross misconduct which, in each case, is materially and demonstrably injurious to the Company, or either of their respective reputations
or to any clients or customers of the Company, or 
 (iii) conviction of a felony or guilty or nolo contendere plea by the
Executive with respect thereto, or 
 (iv) a violation in any material respect of any Company Policies applicable to the
Executive which is materially and demonstrably injurious to the Company, if such breach is not cured within 30 business days following receipt of a notice of such breach, or 
 (v) a material breach by the Executive of Section 8 of this Agreement, if such breach is not cured within 30 business days following
receipt of a notice of such breach. 
 For purposes of this provision, no act or failure to act on the part of the Executive shall be considered
“willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company or was done or omitted to be done with
reckless disregard to the consequences. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of
a resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to 

  

 5 

 
the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that in the good faith opinion of the
Board, the Executive is guilty of the conduct constituting Cause and specifying the particulars thereof in detail. 
 (c) Good Reason.
The Executive’s employment may be terminated by the Executive for Good Reason. For purposes of this Agreement, “Good Reason” shall mean, in the absence of a written consent of the Executive: 
 (i) the assignment to the Executive of any duties materially inconsistent with the Executive’s duties or responsibilities, or any
other material action by the Company which is materially inconsistent with or materially reduces such duties or responsibilities; or 
 (ii) any diminution in Executive’s title or reporting relationship as contemplated by Section 3(a) of this Agreement; or 
 (iii) any failure by the Company to comply with any of the provisions of Section 3(b) of this Agreement; provided that Executive’s receipt of 100% of his Annual Bonus in respect of fiscal year 2005 in
the form of equity compensation under the Equity Incentive Compensation Plan shall not constitute Good Reason; or 
 (iv) the
Company’s requiring the Executive’s principal office to be based at any office or location other than that provided in Section 3(a) of this Agreement; or 
 (v) any purported termination by the Company of the Executive’s employment otherwise than as expressly permitted by this Agreement;
or 
 (vi) any failure to elect or reelect the Executive to the Board; or 
 (vii) any failure by the Company to cause any successor to all or substantially all or a substantial portion of its business and/or assets
to assume expressly and agree to perform this Agreement in accordance with Section 9(b). 
 Notwithstanding the foregoing, the Executive shall not be
considered to have Good Reason to terminate this Agreement unless and until he gives the Company written notice of the circumstances constituting the Good Reason within 90 days of the initial existence of such circumstances, and the Company fails to
have cured such circumstances within 30 business days of receipt of such notice. 
 (d) Voluntary Termination. The Executive may
voluntarily terminate his employment without Good Reason. 
  

 6 

 (e) Notice of Termination. Any termination by the Company for Cause, or by the Executive for Good
Reason, shall be communicated by Notice of Termination to the other Party hereto given in accordance with Section 11(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than thirty days after the giving
of such notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder. 
 (f) Date of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause,
or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein within 30 days of such notice, as the case may be (but in the case of a termination by the Executive for Good Reason, the Date
of Termination shall not be earlier than the last day of the Company’s cure period provided for in Section 4(c)), (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, or if the
Executive voluntarily resigns without Good Reason, the date on which the terminating Party notifies the other Party of such termination, (iii) if the Executive’s employment is terminated by reason of death, the date of death of the
Executive or (iv) if the Executive’s employment is terminated by the Company due to Disability, the Disability Effective Date. 
 (g) Resignation from All Positions. Notwithstanding any other provision of this Agreement, upon the termination of the Executive’s employment for any reason, unless otherwise requested by the Board, the Executive shall
immediately resign from all positions that he holds or has ever held with the Company and any other member of the Affiliated Group (and with any other entities with respect to which the Company has requested the Executive to perform services),
including, without limitation, the Board and all boards of directors of any member of the Affiliated Group. The Executive hereby agrees to execute any and all documentation to effectuate such resignations upon request by the Company, but he shall be
treated for all purposes as having so resigned upon termination of his employment, regardless of when or whether he executes any such documentation. 
 (h) Definitions. Notwithstanding the terms of any employee benefit plan, program or arrangement under which the Executive is a participant, the definitions of “Cause”, “Good Reason” and
“Disability” set forth in this Section 4 shall apply to the Executive’s termination of employment under such plans, programs or arrangements. 
  

 7 

 5. Obligations of the Company upon Termination. (a) Good Reason; Other Than for Cause.
If, during the Employment Period, the Company shall terminate the Executive’s employment other than for Cause, death or Disability or the Executive shall terminate employment for Good Reason: 
 (i) the Company shall pay to the Executive in a lump-sum cash payment as soon as practicable, and in no event later than the first
regularly scheduled payroll date, after the Date of Termination the Executive’s Annual Base Salary through the Date of Termination to the extent not theretofore paid. 
 (ii) notwithstanding the terms of any incentive plan, program or arrangement, any and all unvested stock options, restricted stock units
(including the Special RSU Grant and the Long-Term Incentive Compensation) and other equity or equity-based awards shall immediately vest as of the Date of Termination, provided that such awards shall continue to be governed by any applicable
forfeiture provisions in accordance with the terms thereof. 
 (iii) to the extent not theretofore paid or provided, the
Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract or agreement (other than any
severance plan, program, policy or practice or contract or agreement) of the Company and its affiliates in accordance with the terms and normal procedures of each such plan, program, policy or practice, as modified by this Agreement, based on
accrued benefits through the Date of Termination (such amounts and benefits, the “Other Benefits”). 
 (iv) until
the later of (x) the fifth anniversary of the Effective Date or (y) the first anniversary of the Date of Termination, in addition to the Retiree Medical Benefits, the Company shall continue to provide medical and dental benefits to
Executive and his eligible dependents as if the Executive remained an active employee of the Company. The applicable period of health benefit continuation under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) shall
begin on the Date of Termination. Any benefits provided to the Executive during any taxable year of the Executive pursuant to this Section 5(a)(iv) shall not affect the benefits to be provided in any other taxable year. 
 Except with respect to payments and benefits under Sections 5(a)(i) and 5(a)(iii), all payments and benefits to be provided under Section 5(a)(ii) shall be subject
to the Executive’s execution and non-revocation of a mutual release substantially in the form attached hereto as Exhibit A, and the Company shall have no obligation to continue to pay or provide the benefits specified in
Section 5(a)(iv) unless the Executive shall have executed such a mutual release and such release shall have become irrevocable within 60 days following the Date of Termination; provided, however, that the Executive’s obligation to execute
such release shall be subject to the 

  

 8 

 
Company’s execution and delivery to the Executive of such release in favor of the Executive. For purposes of this Section 5, if the Date of
Termination occurs prior to the date that the Committee determines the amount of the Executive’s Annual Bonus or Long-Term Incentive Compensation in respect of fiscal year 2005, the amount of the Executive’s Total Compensation (on an
annualized basis) shall be determined in the discretion of the Committee, such that such Annual Bonus and Long-Term Incentive Compensation shall be consistent with the annual bonus and long-term incentive compensation in respect of fiscal year 2005
for other members of the Operating Committee generally. 
 (b) Cause; Other than for Good Reason. If the Executive’s employment
shall be terminated for Cause or the Executive terminates his employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations to the Executive other than the obligation to pay or provide to the
Executive the Executive’s Retiree Health Benefits (subject to the provisions of Section 3(b)(vi)), an amount equal to the amount set forth in Section 5(a)(i), and the timely payment or provision of the Other Benefits, in each case to
the extent theretofore unpaid. 
 (c) Death. If the Executive’s employment is terminated by reason of the Executive’s death
during the Employment Period, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than the obligation to pay or provide to the Executive’s beneficiaries the
Executive’s Retiree Health Benefits (if applicable), the timely payment or provision of the Other Benefits, including any applicable life insurance benefits, and (i) the amount specified in Section 5(a)(i) plus (ii) the excess of
(1) the product of (x) the Executive’s annualized Total Compensation for the most recently completed fiscal year and (y) a fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination
occurs through the Date of Termination, and the denominator of which is 365, over (2) the Annual Base Salary to the extent paid for the year that includes the Date of Termination (the amounts in Sections 5(c)(i) and (ii), the “Accrued
Obligations”). The Company shall make the payment specified in Section 5(c)(ii) as soon as practicable, and in any event within 60 days, after the Executive’s death. 
 For purposes of determining the Executive’s annualized Total Compensation in respect of any fiscal year for which Long-Term Incentive Compensation was awarded in a form other than restricted stock units,
restricted stock or cash, the value of such award shall be determined by the Committee in its good faith discretion. 
 (d)
Disability. If the Executive’s employment is terminated by reason of the Executive’s Disability during the Employment Period, this Agreement shall terminate without further obligations to the Executive, other than the obligation to
pay or provide to the Executive the Executive’s Retiree Health Benefits, the Accrued Obligations, and the timely payment or provision of Other Benefits, including any applicable disability benefits. The Company shall make payment of the portion
of the Accrued Obligations specified in Section 5(c)(ii) as soon as practicable, and in any event within 60 days, after the Disability Effective Date. 
  

 9 

 (e) Relationship with Restrictive Covenant
Agreement. (i) Should there be any inconsistency between the provisions in this Agreement (including any provisions incorporated by reference) and the provisions in the agreement dated November 22, 2005 relating to the notice period
and restrictive covenants applicable to the Executive (the “Restrictive Covenant Agreement”)1 as such provisions relate to the time period
for the provision of advance written notice of termination by either the Company or by the Executive or the duration of any non-solicitation covenant, the provisions of the Restrictive Covenant Agreement shall prevail and, notwithstanding any
provision of Section 3(b)(iii), said provisions of the Restrictive Covenant Agreement may be incorporated into equity-based awards under the Company’s equity compensation plans in respect of fiscal year 2005 or granted at any time in the
future; provided, however, that if the Executive terminates his employment for Good Reason under this Agreement, then the Executive will not be required for any purpose to provide 180 days advance written notice (provided that
the Executive otherwise complies with the provisions of Sections 4(c), 4(e) and 4(f)). 
 (ii) Should there be any
inconsistency between the provisions in this Agreement and the provisions in the Restrictive Covenant Agreement as such provisions relate to the definition of “Cause” and the consequences of the termination of the Executive’s
employment without “Cause”, the provisions of this Agreement shall prevail. 
 6. Non-Exclusivity of Rights. Except as
specifically provided otherwise, nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company, or any of its subsidiaries for which the
Executive is otherwise eligible, nor, subject to Section 11(f), shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or its subsidiaries. Notwithstanding the
foregoing, if the Executive receives payments and benefits pursuant to Section 5(a) of this Agreement, the Executive shall not be entitled to any severance pay or benefits under any severance plan, program or policy of the Company and the
Affiliated Companies, unless otherwise specifically provided therein in a specific reference to this Agreement. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of
or any contract or agreement with the Company or its subsidiaries at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this
Agreement. 
  
  

	 1
	 For ease of reference only, the form of Restrictive Covenant Agreement which Mr. Mack executed is attached hereto
as Appendix 1. 

  

 10 

 7. Full Settlement. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense, or other claim, right or action that the Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced as a result of a mitigation
duty whether or not the Executive obtains other employment. 
 8. Covenants. 
 (a) Confidential Information. The Executive shall hold in a fiduciary capacity for benefit of the Affiliated Group, all secret or confidential
information, knowledge or data relating to the Affiliated Group and its businesses (including, without limitation, any proprietary and not publicly available information concerning any processes, methods, trade secrets, research or secret data,
costs, names of users or purchasers of their respective products or services, business methods, operating procedures or programs or methods of promotion and sale) that the Executive has obtained or obtains during the Executive’s employment by
the Affiliated Group that is not public knowledge (other than as a result of the Executive’s violation of this Section 8(a)) (“Confidential Information”). For the purposes of this Section 8(a), information shall not be
deemed to be publicly available merely because it is embraced by general disclosures or because individual features or combinations thereof are publicly available. The Executive shall not communicate, divulge or disseminate Confidential Information
at any time during or after the Executive’s employment with the Affiliated Group, except with prior written consent of the Company, or as otherwise required by law or legal process or as such disclosure or use may be required in the course of
the Executive performing his duties and responsibilities as the President and Chief Executive Officer of the Company. Notwithstanding the foregoing provisions, if the Executive is required to disclose any such confidential or proprietary information
pursuant to applicable law or a subpoena or court order, the Executive shall promptly notify the Company in writing of any such requirement so that the Company or the appropriate member of the Affiliated Group may seek an appropriate protective
order or other appropriate remedy or waive compliance with the provisions hereof. The Executive shall reasonably cooperate with the Affiliated Group to obtain such a protective order or other remedy. If such order or other remedy is not obtained
prior to the time the Executive is required to make the disclosure, or the Company waives compliance with the provisions hereof, the Executive shall disclose only that portion of the confidential or proprietary information which he is advised by
counsel that he is legally required to so disclose. All records, files, memoranda, reports, customer lists, drawings, plans, documents and the like that the Executive uses, prepares or comes into contact with during the course of the
Executive’s employment shall remain the sole property of the Company and/or the Affiliated Group, as applicable, and shall be turned over to the Company upon termination of the Executive’s employment. 
  

 11 

 (b) Remedies. The Executive acknowledges and agrees that the terms of Section 8: (i) are
reasonable in light of all of the circumstances, (ii) are sufficiently limited to protect the legitimate interests of the Company and its subsidiaries, (iii) impose no undue hardship on the Executive and (iv) are not injurious to the
public. The Executive further acknowledges and agrees that (x) the Executive’s breach of the provisions of Section 8 will cause the Company irreparable harm, which cannot be adequately compensated by money damages, and (y) if the
Company elects to prevent the Executive from breaching such provisions by obtaining an injunction against the Executive, there is a reasonable probability of the Company’s eventual success on the merits. The Executive consents and agrees that
if the Executive commits any such breach or threatens to commit any breach, the Company shall be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the
necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages. The Parties further acknowledge and agree that the provisions
of Section 11(a) below are accurate and necessary because (A) this Agreement is entered into in the State of New York, (B) as of the Effective Date, New York will have a substantial relationship to the Parties and to this transaction,
(C) as of the Effective Date, New York will be the headquarters state of the Company, which has operations nationwide and has a compelling interest in having its employees treated uniformly within the United States, (D) the use of New York
law provides certainty to the Parties in any covenant litigation in the United States, and (E) enforcement of the provision of this Section 8 would not violate any fundamental public policy of New York or any other jurisdiction. If any of
the provisions of Section 8 are determined to be wholly or partially unenforceable, the Executive hereby agrees that this Agreement or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any
of the provisions of this Section 8 are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Company’s right to enforce any such covenant in any other
jurisdiction. 
 9. Successors. (a) This Agreement is personal to the Executive and without the prior written consent of the
Company shall not be assignable by the Executive other than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. This Agreement shall inure to
the benefit of and be binding upon the Company and its successors and assigns. 
 (b) No rights or obligations of the Company under this
Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all
or substantially all or a substantial portion of the assets of the Company; provided, however, that the assignee or transferee is the successor to all or substantially all or a substantial portion of the assets of the Company and such
assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this 

  

 12 

 
Agreement, either contractually or as a matter of law. The Company shall cause any successor (whether direct or indirect, by purchase, merger, consolidation
or otherwise) to all or substantially all or a substantial portion of its business and/or assets to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no
such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise. 
 10. Additional Payment. (a) Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any Payment would be subject to the Excise Tax, then the Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that,
after payment by the Executive of all taxes (and any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. The Company’s obligation to make Gross-Up Payments under this Section 10 shall not be conditioned upon the
Executive’s termination of employment. 
 (b) Subject to the provisions of Section 10(c), all determinations required to be made
under this Section 10, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by a nationally recognized certified
public accounting firm as may be agreed to by the Company and the Executive (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the
receipt of notice from the Executive that there has been a Payment or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the
Change of Control, the Executive may appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 10, shall be paid by the Company to the Executive within 5 days of the receipt of the Accounting Firm’s determination. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of
the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (the “Underpayment”), consistent with the calculations required to be made
hereunder. In the event the Company exhausts its remedies pursuant to Section 10(c) and the Executive thereafter is required to make a payment of any 

  

 13 

 
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive. The Executive shall notify the Company no later than 10 days after having made such payment of Excise Tax, the Accounting Firm shall provide its calculation of such Underpayment within 15 business days
of the receipt of such notice from the Executive, and the Company shall pay the Underpayment within 5 days of the receipt of the Accounting Firm’s determination. 
 (c) The Executive shall notify the Company in writing no later than 10 days after making any payment to the United States Treasury that would entitle the Executive to a Gross-Up Payment. In addition, the Executive
shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable, but no later than 10
business days after the Executive is informed in writing of such claim. Notice given by the Executive pursuant to this Section 10(c) shall constitute notice for purposes of Section 10(b) that there has been a Payment. The Executive shall
apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which the Executive gives such notice
to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that the Company desires to contest such
claim, the Executive shall: 
 (i) give the Company any information reasonably requested by the Company relating to such
claim, 
 (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing
from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company, 
 (iii) cooperate with the Company in good faith in order effectively to contest such claim, and 
 (iv) permit the Company to participate in any proceedings relating to such claim; 
 provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection
with such contest, and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties) imposed as a result of such representation and payment of costs and expenses. Without
limitation on the foregoing provisions of this Section 10(c), the Company shall control all proceedings taken in connection with such contest, and, at its sole 

  

 14 

 
discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the applicable taxing authority in respect of
such claim and may, at its sole discretion, either pay the tax claimed to the appropriate taxing authority on behalf of the Executive and direct the Executive to sue for a refund or contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that, if the Company
pays such claim and directs the Executive to sue for a refund, the Company shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed with respect to such
payment or with respect to any imputed income in connection with such payment; and provided, further, that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Executive with respect to
which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which the Gross-Up Payment would be payable hereunder, and
the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. 
 (d) If, after the receipt by the Executive of a Gross-Up Payment or payment by the Company of an amount on the Executive’s behalf pursuant to Section 10(c), the Executive becomes entitled to receive any
refund with respect to the Excise Tax to which such Gross-Up Payment relates or with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements of Section 10(c), if applicable) promptly pay to the
Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If, after payment by the Company of an amount on the Executive’s behalf pursuant to Section 10(c), a determination is
made that the Executive shall not be entitled to any refund with respect to such claim and the Company does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such
determination, then the amount of such payment shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid. 
 (e) Notwithstanding any other provision of this Section 10, the Company may, in its sole discretion, withhold and pay over to the Internal Revenue Service or any other applicable taxing authority, for the benefit of the Executive, all
or any portion of any Gross-Up Payment, and the Executive hereby consents to such withholding. 
 (f) Definitions. The following terms
shall have the following meanings for purposes of this Section 10. 
 (i) “Excise Tax” shall mean the excise
tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 
  

 15 

 (ii) A “Payment” shall mean any payment or distribution in the nature of
compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise. 
 11. Miscellaneous. (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without
reference to principles of conflict of laws. The Parties hereto irrevocably agree to submit to the jurisdiction and venue of the courts of the State of New York, in any action or proceeding brought with respect to or in connection with this
Agreement. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the Parties hereto or their respective
successors and legal representatives. 
 (b) All notices and other communications hereunder shall be in writing and shall be given by hand
delivery to the other Party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to
the Executive: 
 At the most recent address on file for the Executive at the Company. 
 With a copy to: 
 William Zabel, Esq.

 Schulte Roth & Zabel LLP 
 919 Third Avenue 
 New York, NY 10022 
 If to the Company: 
 1585 Broadway 
 New York, NY 10036 
 Attention: Chief Legal
Officer 
 or to such other address as either Party shall have furnished to the other in writing in accordance herewith. Notice and
communications shall be effective when actually received by the addressee. 
 (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
  

 16 

 (d) Notwithstanding any other provision of this Agreement, the Company may withhold from any amounts
payable or benefits provided under this Agreement any Federal, state, and local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (e) Notwithstanding any other provision of this Agreement, if at the time of the Executive’s “separation from service” (as defined in Section 409A of the Code or any regulations or Treasury
guidance promulgated thereunder (together with Section 409A of the Code, the “409A Regulations”)) he is a “specified employee” (as defined in the 409A Regulations), then to the extent that any payments or benefits owed to
the Executive under this Agreement upon his separation from service constitute an amount of deferred compensation for purposes of the 409A Regulations, the Executive will not be entitled to such payments or benefits until the earlier of (i) the
first business day following the date that is six months after the date of the Executive’s separation from service for any reason, other than as a result of the Executive’s death or (ii) the date of the Executive’s death or
(iii) any earlier date that does not result in any additional tax or interest to the Executive under the 409A Regulations. In addition, if any provision of this Agreement would subject the Executive to any additional tax or interest under the
409A Regulations, then the Company shall reform such provision; provided that the Company shall (x) maintain, to the maximum extent practicable, the original intent of the applicable provision without subjecting the Executive to such
additional tax or interest and (y) not incur any additional compensation expense as a result of such reformation. 
 (f) Notwithstanding
any other provision in this Agreement, to the extent that the Special RSU Grant, any other Long-Term Incentive Compensation Grant or any other cash or equity compensation award granted to the Executive does not constitute “performance-based
compensation” for purposes of Section 162(m) of the Code, settlement of such award may be deferred in accordance with the Company’s policy applicable to the deferral and payment of equity-based awards for purposes of
Section 162(m) of the Code; provided, however, that in the event that the Executive dies prior to the lapse of such deferral period, payment will be made as soon as administratively practicable, and in any event within 60 days,
after the Executive’s death. For the avoidance of doubt, the deferral of such equity-based awards shall not affect the Executive’s vested right to receive such equity-based awards upon the lapse of such deferral period. 
 (g) The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
 (h) From and after the Effective Date, this Agreement shall supersede any other agreements between the Parties with respect to the subject matter hereof, other than the Executive’s letter to the Company, dated
October 24, 2008, regarding the compensation requirements of the Capital Purchase Program under the Troubled Asset Relief Program. 
  

 17 

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

	
	
	      /s/ John J. Mack
	 John J. Mack

	
	MORGAN STANLEY 
	
	/s/ Karen C. Jamesley
	By:    Karen C. Jamesley
	Title: Global Head of Human Resources

  

 18 

 EXHIBIT A 
 Form of Release 
 (a) In consideration for the payment of the severance described in the
Executive’s amended and restated employment agreement with the Company, dated as of September __, 2005, as amended and clarified from time to time (the “Employment Agreement”), the Executive for himself, and for his heirs,
administrators, representatives, executors, successors and assigns (collectively “Releasers”) does hereby irrevocably and unconditionally release, acquit and forever discharge the Company, its subsidiaries, affiliates and divisions and
their respective, current and former, trustees, officers, directors, partners, shareholders, agents, employees, consultants, independent contractors and representatives, including without limitation all persons acting by, through under or in concert
with any of them (collectively, “Releasees”), and each of them from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, remedies, actions, causes of action, suits, rights,
demands, costs, losses, debts and expenses (including attorneys’ fees and costs) of any nature whatsoever, known or unknown, whether in law or equity and whether arising under federal, state or local law and in particular including any claim
for discrimination based upon race, color, ethnicity, sex, age (including the Age Discrimination in Employment Act of 1967), national origin, religion, disability, or any other unlawful criterion or circumstance, which the Executive and Releasers
had, now have, or may have in the future against each or any of the Releasees (collectively “Executive/Releaser Actions”) from the beginning of the world until the date hereof. 
 (b) The Executive acknowledges that: (i) this entire Release is written in a manner calculated to be understood by him; (ii) he has been
advised to consult with an attorney before executing this Release; (iii) he was given a period of twenty-one days within which to consider this Release; and (iv) to the extent he executes this Release before the expiration of the
twenty-one day period, he does so knowingly and voluntarily and only after consulting his attorney. The Executive shall have the right to cancel and revoke this Release by delivering notice to the Company pursuant to the notice provision of
Section 11 of the Employment Agreement prior to the expiration of the seven-day period following the date hereof, and the severance benefits under the Employment Agreement shall not become effective, and no payments or benefits shall be made or
provided thereunder, until the day after the expiration of such seven-day period (the “Revocation Date”). Upon such revocation, this Release and the severance provisions of the Employment Agreement shall be null and void and of no further
force or effect. 
 (c) For and in consideration of the obligations upon Executive as set forth in the Employment Agreement, and for other
good and valuable consideration, the Company hereby (on its own behalf and that of the Company’s affiliates and subsidiaries (collectively, with the Company, the “Affiliated Entities”), the divisions and predecessors and successors of
the Affiliated Entities and the directors and officers of the company in their capacity as such (collectively, the “Releasing Entities”) releases Executive and his heirs, executors, successors 

  

 19 

 
and assigns (the “Executive Released Parties”) and each of them from any and all charges, complaints, claims, liabilities, obligations, promises,
agreements, controversies, damages, remedies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs) of any nature whatsoever, known or unknown, whether in law or equity and
whether arising under federal, state or local law, which the Company and the Affiliated Entities had, now have, or may have in the future against each or any of the Executive Released Parties from the beginning of the world until the date hereof.

 (d) Notwithstanding anything herein to the contrary, the sole matters to which the Release do not apply are: (i) the Executive’s
rights of indemnification and directors and officers liability insurance coverage to which he was entitled immediately prior to
                     with regard to his service as an officer of the Company; (ii) the Executive’s rights under any tax-qualified
pension or claims for accrued vested benefits under any other employee benefit plan, policy or arrangement maintained by the Company or under COBRA; or (iii) the Executive’s rights under Sections 5, 7 and 10 of the Employment Agreement
which are intended to survive termination of employment. 
 (e) This Release is the complete understanding between the Executive and the
Company in respect of the subject matter of this Release and supersedes all prior agreements relating to the same subject matter. The Executive has not relied upon any representations, promises or agreements of any kind except those set forth herein
in signing this Release. 
 (f) In the event that any provision of this Release should be held to be invalid or unenforceable, each and all
of the other provisions of this Release shall remain in full force and effect. If any provision of this Release is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this Release to be upheld and enforced
to the maximum extent permitted by law. 
 (g) This Release is to be governed and enforced under the laws of the State of New York (except to
the extent that New York conflicts of law rules would call for the application of the law of another jurisdiction). 
 (h) This Release
inures to the benefit of the Company and its successors and assigns and the Executive and its legal representatives. 
  

	
	  
	EXECUTIVE
	
	  
	COMPANY

  

 20 

 Appendix 1 
 Restrictive Covenant Agreement 
 AGREEMENT 
 Morgan Stanley, including its subsidiaries, affiliates, and related companies (hereinafter
“Morgan Stanley” or the “Firm”), believes that there are certain fundamental employment terms and conditions for Managing Directors2 and Executive Directors that are essential to protect the Firm’s business interests, client and employee relationships, and confidential information. These terms and conditions serve a number of important goals which, given your
position with the Firm, you are uniquely positioned to advance. The goals include (i) promoting the continuity of our workforce, (ii) providing the Firm, as well as the Firm’s clients and customers and other employees, with a smooth
transition of business, responsibilities, and business relationships in the event you terminate your employment with the Firm, (iii) ensuring that you continue to fulfill your obligations to the Firm during your employment, (iv) protecting
Morgan Stanley’s confidential business information, trade secrets, customer lists and other proprietary information to which you have had and will in the future have access, and (v) maintaining Morgan Stanley’s customer and employee
relationships and goodwill worldwide (collectively, the “Business Interests”). 
 As a Managing Director or Executive Director of Morgan Stanley, you may be eligible to receive equity-based awards under the Firm’s equity compensation plans (each an “Equity Award”3), in the Firm’s sole discretion. Equity Awards are granted to encourage continued employment, to protect the Firm’s global Business Interests, and to align the
recipient’s interests with the interests of the Firm. In furtherance of these goals, and in addition to any eligibility requirements set forth in applicable equity compensation plans, your eligibility for any Equity Award, whether in respect of
fiscal year 2005 or granted at any time in the future, is conditioned upon your agreement to the terms and conditions of this Agreement, including those set forth below in paragraphs A-D (the “Terms and Conditions”). Nothing in this
Agreement is intended to obligate the Firm to grant you an Equity Award in respect of fiscal year 2005 or at any time in the future, inasmuch as the grant of Equity Awards will continue to be in the Firm’s sole discretion. 
  
  

	 2
	 References to “Managing Director” include Executive Vice Presidents and Senior Vice Presidents of Discover
Financial Services. 

  

	 3
	 In addition to equity-based awards, if any, granted under the Equity Incentive Compensation Plan (or any successor
thereto), Equity Awards shall also include awards, if any, granted to eligible Asset Management employees pursuant to the Investment Management Deferred Compensation Plan (the “IMDCP”). 

  

 21 

	 	A.	Notice Period Prior to Termination 

 You
agree that in the event you decide to resign your employment for any reason (a “Resignation”), you will provide advance written notice of your Resignation to your immediate manager, and that the period of notice that you will provide shall
be determined by your officer level at the time of your Resignation (this period of notice, along with the Firm’s period of notice described below, the “Notice Period”). 
  

	 	•	 	 If you are an Executive Director at the time of your Resignation, your Notice Period will be 60 days; 

  

	 	•	 	 If you are a Managing Director at the time of your Resignation, your Notice Period will be 90 days; 

  

	 	•	 	 If you are a member of the Management Committee at the time of your Resignation, your Notice Period will be 180 days. 

 In the event of the termination of your employment by the Firm for any reason other than for Cause (as defined in the most recent Equity Award granted
prior to the date of such termination and/or as provided below), the Firm, in its discretion, will either provide you with (i) notice of your termination equal to the applicable Notice Period or (ii) payment in lieu of such Notice Period
(or, where notice has previously been given in accordance with clause (i) above, payment in lieu of the remainder of such Notice Period), subject, in the case of clause (ii), to your execution, delivery and non-revocation of a release in a form
satisfactory to the Firm. 
 During the Notice Period (provided that you are not paid in lieu of your Notice Period in the event of the
termination of your employment by the Firm), you will remain an employee of Morgan Stanley and will continue to be paid your base salary and be eligible for welfare and qualified retirement plan benefits applicable to you. However, you will
generally not be eligible to receive Above Base Compensation (i.e., a bonus) if you decide to leave the Firm. If you give or receive notice of termination of your employment with the Firm, please consult the Human Resources Department for
more information. 
 As an employee during the Notice Period, you will be expected to undertake such duties and responsibilities as are
assigned to you by Morgan Stanley, including duties to assist Morgan Stanley with your transition from the Firm and maintaining the Firm’s business, business relationships, and goodwill. In addition, as an employee you will continue to be bound
by all fiduciary duties and obligations owed to Morgan Stanley and required to comply with all Firm policies and the Code of Conduct, as amended from time to time (the “Code of Conduct”). The Firm reserves the right to put you on paid
leave (i.e., base salary and welfare and qualified retirement plan benefits continuance) and to suspend any of your duties and powers and to relocate your office for all or part of your Notice Period. 
  

 22 

 Subject to the applicable Notice Period that the Firm has undertaken to provide to the
extent required above, this Agreement does not create a contract for employment for any specified duration or in any way limit Morgan Stanley’s right to terminate your employment as an at-will employee or otherwise modify the At-Will Employment
Policy on the Human Resources Department’s policy website. Nor does it alter your right to terminate your employment at will, subject to the applicable Notice Period. 
  

	 	B.	Non-Solicitation of Clients and Customers 

 The relationship between the Firm and its clients and customers, and prospective clients and customers, constitutes a valuable asset of Morgan Stanley and may not be converted to your own use, or for the use of any third party. Accordingly,
you agree that during your employment, including during your Notice Period, and during your Client Non-Solicitation Period (as defined in the immediately subsequent sentence), you will not, directly or indirectly (through any person, corporation,
partnership or other business entity of any kind), solicit or entice away or in any manner attempt to persuade any client or customer, or prospective client or customer, of Morgan Stanley (i) to discontinue or diminish his, her or its
relationship or prospective relationship with the Firm or (ii) to otherwise provide his, her or its business to any person, corporation, partnership or other business entity which engages in any line of business in which Morgan Stanley is
engaged (other than Morgan Stanley). The “Client Non-Solicitation Period” means: 
  

	 	•	 	 If you are an Executive Director or a Managing Director at the time of your Resignation, 90 days after the termination of your employment;

  

	 	•	 	 If you are a member of the Management Committee at the time of your Resignation, 180 days after the termination of your employment. 

 The restrictions in this paragraph shall apply only to clients or customers, or prospective clients or customers, that you worked for on an actual or
prospective project or assignment during the Notice Period or the period of 180 days preceding your notice of Resignation. 
  

	 	C.	No Hire or Solicitation of Employees 

 The
employees of Morgan Stanley are one of its most important assets, and the Firm wishes to protect its interest in retaining valuable employees. Accordingly, you agree that during your employment, including during your Notice Period, and for 180 days
after the termination of your employment, you will not directly or indirectly in any capacity (including through any 

  

 23 

 
person, corporation, partnership or other business entity of any kind), hire or solicit, recruit, induce, entice, influence, or encourage any Morgan Stanley
employee to leave the Firm or become hired or engaged by another firm. The restrictions in this paragraph shall apply only to employees with whom you worked or had professional or business contact, or who worked in or with your business unit, during
the Notice Period or the period of 180 days preceding your notice of Resignation. 
  

	 	D.	Confidentiality Obligations 

 You acknowledge
that you have agreed to abide by the obligations of confidentiality as set forth in the Firm’s Code of Conduct, including those obligations that extend beyond your period of employment with Morgan Stanley. 
 **** 
 Morgan Stanley reserves the right to
waive all or part of the Terms and Conditions under appropriate circumstances, in its sole discretion. Any such waiver must be in writing and signed by a Managing or Executive Director in the Human Resources Department. 
 Please note that this Agreement constitutes a variation to certain of your terms and conditions of employment. All other terms and conditions of
your employment will remain in full force and effect. Through your acceptance of this Agreement, as well as in consideration for your continued employment and any promotion that you may receive and the Firm’s undertaking to provide you with
notice or payment in lieu of your Notice Period if it terminates your employment for any reason other than for Cause and your acceptance of future compensation, including incentive compensation, you acknowledge that the Terms and Conditions, which
will be operative worldwide, are reasonable and necessary to protect Morgan Stanley’s global Business Interests. You further acknowledge that any breach or threatened breach of any of the Terms and Conditions will cause immeasurable and
irreparable damage to Morgan Stanley. Accordingly, you agree that if you do not comply or threaten not to comply with the Terms and Conditions, damages will not be an adequate remedy for any breach committed by you and, therefore, Morgan Stanley
will be entitled to injunctive relief or specific performance in a state or federal court in the County of New York to the fullest extent permissible by law. In addition, failure to comply with the Terms and Conditions will result in immediate
cancellation of any vested and unvested portions of any Equity Award that may be granted to you, in the Firm’s sole discretion, in respect of fiscal year 2005 or at any time in the future, and Morgan Stanley may seek additional damages. 

 The Terms and Conditions shall be deemed to be part of the applicable equity compensation plans of the Firm and of the IMDCP and part of
the terms and conditions of all Equity Awards, if any, granted to you in respect of fiscal year 2005 or at any time in the future during your employment with Morgan Stanley. 
  

 24 

 This Agreement shall be governed by the laws of the State of New York without regard to any conflicts or
choice of law principles; provided, however, that any Equity Awards, and the terms and conditions of this Agreement applicable to such Equity Awards, shall be governed by New York law or as otherwise provided in the most recent applicable Equity
Award granted prior to the occurrence or event giving rise to the application of this provision. In any dispute relating to or concerning this agreement, the parties agree to submit such dispute to a state or federal court in the County of New York
and submit to the exclusive jurisdiction of such court except to the extent that you and Morgan Stanley are obligated to arbitrate disputes pursuant to any individual agreement with the Firm and/or the rules and regulations of any applicable
regulatory body, in which case such obligation shall not be deemed to preclude Morgan Stanley from seeking injunctive relief as provided in this Agreement. 
 In the event any provision in this Agreement should be held invalid, illegal or unenforceable by a state or federal court in the County of New York or an appropriate tribunal of competent jurisdiction in any respect,
neither party will be required to comply with such provision for so long as the provision is held to be invalid, illegal or unenforceable, but the validity, legality, and enforceability of the remaining provisions contained in this Agreement shall
not in any way be affected or impaired by the illegality, invalidity or unenforceability of such provision. You agree that a state or federal court in the County of New York or an appropriate tribunal of competent jurisdiction may reform any
invalid, illegal or unenforceable provisions to the extent necessary to make them valid and enforceable. It is also understood and agreed that the invalidity of a particular provision in a particular jurisdiction shall not, in and of itself, affect
the validity of such provision in any other jurisdiction. Morgan Stanley agrees that to the extent any provision hereof is contrary to applicable law, it will not seek to enforce such provision. 
 The Firm appreciates your continued contributions and your demonstrated commitment to the Firm’s Business Interests set forth above. 
  

 25 

 Employee Acknowledgement 
 I have read and understand this Agreement. I recognize and agree that it creates binding obligations and sets forth terms and conditions of my continued
employment with the Firm. 
 Please affirm your agreement and acceptance by typing I AGREE and your employee identification number
(“EIN”) in the boxes below, and then clicking SUBMIT. Upon a successful submission, you will be sent an e-mail confirmation. Please note that the deadline for your successful submission is November 30, 2005. Your agreement will go
into effect on December 1, 2005. 
  

					
	  	 		 	  
	Acceptance	 		 	EIN

  

					
	 	 	SUBMIT	 	 

  

 26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]