Document:

Morgan Stanley Financial Advisor and Investment Representative

 EXHIBIT 10.34 
 MORGAN STANLEY 
 FINANCIAL ADVISOR AND INVESTMENT REPRESENTATIVE 
 COMPENSATION PLAN 
 (Amended and
Restated as of November 26, 2007) 
 SECTION I 
 INTRODUCTION 
  

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

  

	(b)	The Plan was initially adopted to be effective for Awards granted for Fiscal Years commencing with 1984; was amended and restated December 23, 1985 retroactive to Fiscal Year
1984; was amended effective December 24, 1990; was amended effective July 15, 1991; was restated for Fiscal Years beginning with 1992; was amended and restated effective October 1, 1993; was amended effective January 1, 1994; was
amended and restated effective January 1, 1994; was amended and restated effective October 21, 1994; was amended effective June 18, 1997; was amended effective September 25, 1998; was amended effective September 21, 1999;
was amended effective March 26, 2001; was amended and restated effective December 11, 2001; was amended effective September 20, 2005; was amended and restated effective June 20, 2006 and was amended and restated effective
November 27, 2006. 

 SECTION II 
 PURPOSE OF PLAN 
  

	(a)	The purposes of the Plan are to retain and recruit key Financial Advisors and Investment Representatives to the Company by enabling them to accumulate significant net worth.

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

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	(h)	“Employee” means a Financial Advisor or Investment Representative. 

  

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

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

  

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

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

  

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

  

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

  

	(m)	“Investment Representative” means an employee of the Company performing the functions of an Investment Representative, as defined by Morgan Stanley.

  

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

  

	(o)	“MS&Co.” means Morgan Stanley & Co. Incorporated, a Delaware corporation, or any successor thereto (including, without limitation, any successor
by merger). 

  

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

  

	(q)	“Participant” means an Employee to whom an Award has been made pursuant to Section V. 

  

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

  

	(s)	In respect of each award granted prior to June 20, 2006, “Retirement” means termination of employment from MSDW (i) after attaining age 65;
(ii) as defined in the Morgan Stanley DW Inc. Pension Plan whether or not the individual is a participant therein; or 

  

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 (iii) as otherwise specified by written agreement between MSDW and a Financial Advisor. In respect of
each award granted on or after June 20, 2006, “Retirement” shall have the meaning determined by the Committee and set forth in the applicable Award Certificate. 
  

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

  

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

  

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

 SECTION IV 
 ELIGIBILITY 
  

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

  

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

  

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

 SECTION V 
 AWARDS 
  

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

  

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

  

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

  

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

  

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

  

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

 SECTION VI 
 ACCOUNTS-ESCROW AGENT

  

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

  

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

  

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

 SECTION VII

 AWARD PAYMENTS 
  

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

  

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

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

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

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

  

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

  

	(e)	With respect to Awards granted on or after June 20, 2006, if Morgan Stanley pays any ordinary or regular dividend or makes any ordinary or regular distribution to holders of
Stock, the Committee may in its discretion authorize payments (which may be in cash, Stock (including restricted Stock) or Stock Units or a combination thereof) with respect to the shares corresponding to an Award, or may authorize appropriate
adjustments to outstanding Awards, to reflect such dividend or distribution. The Committee may make any such payments subject to vesting, deferral or restrictions on transfer. Any determination by the Committee with respect to a Participant’s
entitlement to receive any amounts related to ordinary or regular dividends or distributions to holders of Stock, as well as the terms and conditions of such entitlement, if any, will be part of the terms and conditions of the Award, and will be
included in the Award Certificate corresponding to such Award. 

  

	(f)	 In accordance with the provisions of Appendix A to the Plan, if MSDW must recover a Payment Obligation that was made subject to Appendix A and was
previously paid to a Participant pursuant to this Section VII, a Participant shall be required to repay the amount of cash or the number of shares of Stock received or underlying Stock Units 

  

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granted (or an amount in cash equal to the fair market value of such Stock as of the date of such repayment, as determined by MSDW). MSDW shall not have the
right to withhold any such amount that is not repaid from a Participant’s compensation that constitutes a deferral of compensation subject to Section 409A except to the extent such withholding is not prohibited by Section 409A and
would not cause a Participant to recognize income for United States federal income tax purposes prior to the time of payment of such deferred compensation or to incur interest or additional tax under Section 409A. MSDW reserves the right to
withhold from any portion of a Participant’s compensation that does not constitute deferred compensation under Section 409A the amount of any Payment Obligation which a Participant fails to repay as required herein.

  

	(g)	The Committee reserves the right to accelerate the vesting of any Award of cash, Stock or Stock Units awarded pursuant to Section V of the Plan, provided that, if the Award
of such cash, Stock or Stock Units was made subject to Appendix A hereof, then vesting of such cash, Stock or Stock Units shall be subject to Appendix A hereof. Notwithstanding any other authority granted to it, the Committee shall not
have any right to accelerate the vesting or payment of any cash, Stock or Stock Units awarded pursuant to the Plan that constitute a deferral of compensation subject to Section 409A, except to the extent that such acceleration is not prohibited
by Section 409A and would not cause a Participant to recognize income for United States federal income tax purposes prior to the time of payment or settlement of an Award or to incur interest or additional tax under Section 409A.

  

	(h)	As a condition to the vesting or payment of any Award or the lapse of any restrictions pertaining thereto, the Company may require a Participant to pay such sum as may be necessary
to discharge the Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA tax) imposed on property or income received by a Participant pursuant to the Award or to satisfy any obligation that the
Participant owes to the Company. In accordance with rules and procedures authorized by the Company and, in the discretion of the Company, (i) such payment may be in the form of cash or other property, including the tender of previously owned
shares of Stock and (ii) in satisfaction of such taxes, assessments or other governmental charges or, exclusively in the case of an Award that does not constitute a deferral of compensation subject to Section 409A, of other obligations
that a Participant owes to the Company, the Company may, in the discretion of the Company, make available for delivery a lesser number of shares of Stock in payment or settlement of an Award. To the extent an Award constitutes a deferral of
compensation subject to Section 409A, the Company may not offset from the payment or settlement of such Award amounts that a Participant owes to the Company with respect to any such other obligations except to the extent such offset is not
prohibited by Section 409A and would not cause a Participant to recognize income for United States federal income tax purposes prior to the time of payment or settlement of the Award or to incur interest or additional tax under
Section 409A. The Company may, in its discretion, deduct or withhold such amounts from any payment or distribution to a Participant, whether or not pursuant to the Plan, that is not made in respect of a deferral of compensation subject to
Section 409A. 

  

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 SECTION VIII 
 SUBORDINATION OF AWARDS 
  

	(a)	Except with respect to any Award that constitutes a deferral of compensation subject to Section 409A, MSDW may require, as a condition of participation in the Plan, that a
Financial Advisor execute and deliver a written agreement (the “Agreement”) within forty-five (45) days after notice of eligibility to Participate that such Financial Advisor’s right to payment hereunder (the
“Payment Obligation”), is subordinate to the prior payment or provision for payment in full of all claims of all present and future creditors of MSDW arising out of any matter occurring prior to the date on which the related
Payment Obligation matures consistent with all applicable statutes, regulations and rules, except for claims which are the subject of subordination agreements which rank on the same priority (which claims shall be paid pari passu) or are junior to
the Payment Obligation under the Agreement. The Agreement shall also provide that the Participant’s right to payment hereunder shall be subordinate to claims which are now or hereafter expressly stated in the instruments creating such claims to
be senior in right of payment to the claims of the class of claims created hereunder which arise out of any matter occurring prior to the maturity date of any payment under the Payment Obligation. 

  

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

  

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

  

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

 SECTION IX 
 ADMINISTRATION 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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 SECTION X 
 MISCELLANEOUS 
  

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

  

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

  

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

  

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

 SECTION XI 

AMENDMENT, SUSPENSION AND DISCONTINUANCE 
  

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

  

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

  

	(c)	Notwithstanding any amendment, suspension or discontinuance of the Plan, Awards previously granted shall be paid pursuant to the appropriate provisions of the Plan. Notwithstanding
the foregoing, in the event of the discontinuance or termination of the Plan, the Company reserves the right to accelerate payment of any Award that does not constitute a deferral of compensation subject to Section 409A to any date prior to the
end of the vesting period applicable to such Award, subject to provisions of Appendix A to the Plan. To the extent that any Award constitutes a deferral of compensation subject to Section 409A, the Company shall not have any right to accelerate
payment thereof except to the extent that such acceleration is not prohibited by Section 409A and would not cause a Participant to recognize income for United States federal income tax purposes prior to the time of payment or settlement of an
Award or to incur interest or additional tax under Section 409A. 

  

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

  

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

  

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

	1.	Payment Obligation 

 (a) Payment Obligations shall
consist of any deferred payments of deferred bonuses owed from time to time to a Participant by MSDW pursuant to the Plan. 
 (b) Payment
Obligations, including the dates payments are due, shall be determined in accordance with the provisions of the Plan as in effect on the date hereof, or as hereafter amended. As provided in Sections 4 and 5 of this Appendix A, payment of any
amount of a Payment Obligation may be made sooner than five years following the year for which such Payment Obligation is accrued by MSDW. If any provision of the Plan as now in effect or as hereafter amended shall be inconsistent with this
Appendix A, this Appendix A shall govern. 
 2. Subordination of Right of Payment 
 (a) Payment Obligations are and shall be subordinated in right of payment and subject to prior payment or provision for payment in full of all claims of
other present and future creditors of MSDW whose claims are not similarly subordinated (claims hereunder shall rank pari passu with claims similarly subordinated) and to claims which are now or hereafter expressly stated in the instruments creating
such claims to be senior in right of payment to the claims or the class of claims hereunder which arise out of any matter occurring prior to the maturity date of any payment under the Payment Obligation. 
 (b) In the event of the appointment of a receiver or trustee for MSDW or in the event of its insolvency, liquidation pursuant to the Securities Investor
Protection Act of 1970 (“SIPA”), or otherwise, its bankruptcy, assignment for the benefit of creditors, reorganization, whether or not pursuant to bankruptcy laws, or any other marshaling of the assets and liabilities of
MSDW, Participants shall not be entitled to participate or share, ratably or otherwise, in the distribution of the assets of MSDW until all claims of all other present and future creditors of MSDW whose claims are senior to claims hereunder have
been fully satisfied or provision has been made therefor. 
 (c) Notwithstanding the maturing of the Payment Obligation under any provision
of the Plan or this Appendix A, the right of a Participant to receive payment of any Payment Obligation is and shall remain subordinate as provided in this Section 2. 
  

 A-1 

	3.	Suspension of Maturity During Net Capital Stringency 

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

  

 A-2 

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

	4.	Permissive Prepayment 

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

  

 A-3 

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

 A-4 

 (v) in the event that MSDW is registered as a futures commission merchant under the CEA,
its net capital, as defined in the CEA or the regulations thereunder, as in effect at the time of such Prepayment would be less than 120 percentum (or such other percentum as may be made applicable to MSDW at the time of such Prepayment by the
Examining Authority) of the minimum dollar amount required by the CEA or the regulations thereunder as in effect as such time or such other dollar amount as may be made applicable to MSDW at the time of such Prepayment by the Examining Authority,
plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital Requirements for Member FCM’s”, to the extent such
deposits cannot be used for margin purposes, or 
 (vi) in the event that MSDW is subject to the provisions of paragraph
(a)(6)(v) or (a)(7)(iv) or (c)(2)(x)(B)(1) of the Rule, the net capital of MSDW would be less than the amount required to satisfy the 1000 percentum test (or such other percentum test as may be made applicable to MSDW at the time of such Prepayment
by the Examining Authority) stated in such applicable paragraph, plus an amount equal to the guaranty deposits with clearing organizations other than the CBOT, which were included in current assets under Section 211 of the CBOT “Capital
Requirements for Member FCM’s”, to the extent such deposits cannot be used for margin purposes. 
 If Prepayment is made of all or
any part of the Payment Obligation before the date payment is due and if MSDW’s net capital is less than the amount required to permit such Prepayment pursuant to the foregoing provisions of this paragraph, the Participant agrees irrevocably
(whether or not such Participant had any knowledge or notice of such fact at the time of such Prepayment) to repay MSDW, its successors or assigns, the sum so paid to be held by MSDW pursuant to the provisions hereof as if such Prepayment had never
been made; provided, however, that any suit for the recovery of any such Prepayment must be commenced within two years of the date of such Prepayment. MSDW reserves the right to withhold from the Participant’s compensation the
amount of any Payment Obligation which a Participant fails to repay as required herein. 
  

	5.	Special Prepayment 

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

  

 A-5 

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

	6.	Maturity Upon Certain Events 

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

	7.	Miscellaneous Provisions 

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

 A-6 

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

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

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

 A-72007 Equity Incentive Compensation Plan as amended & restated as of Nov 26,2007

 EXHIBIT 10.39 
 MORGAN STANLEY 
 2007 EQUITY INCENTIVE COMPENSATION PLAN 
 (Amended and Restated as of November 26, 2007) 
 1. Purpose. The primary purposes of the Morgan Stanley 2007 Equity Incentive Compensation Plan are to attract, retain and motivate employees, to compensate them for their contributions to the growth and profits
of the Company and to encourage them to own Morgan Stanley Stock. 
 2. Definitions. Except as otherwise provided in an applicable
Award Document, the following capitalized terms shall have the meanings indicated below for purposes of the Plan and any Award: 
 “Administrator” means the individual or individuals to whom the Committee delegates authority under the Plan in accordance with Section 5(b). 
 “Award” means any award of Restricted Stock, Stock Units, Options, SARs or Other Awards (or any combination thereof) made under
and pursuant to the terms of the Plan. 
 “Award Date” means the date specified in a Participant’s Award
Document as the grant date of the Award. 
 “Award Document” means a written document (including in electronic form)
that sets forth the terms and conditions of an Award. Award Documents shall be authorized in accordance with Section 12(e). 
 “Board” means the Board of Directors of Morgan Stanley. 
 “Code” means the Internal
Revenue Code of 1986, as amended, and the applicable rulings, regulations and guidance thereunder. 
 “Committee”
means the Compensation, Management Development and Succession Committee of the Board, any successor committee thereto or any other committee of the Board appointed by the Board to administer the Plan or to have authority with respect to the Plan, or
any subcommittee appointed by such Committee. 
 “Company” means Morgan Stanley and all of its Subsidiaries.

 “Eligible Individuals” means the individuals described in Section 6 who are eligible for Awards. 

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

 1 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
applicable rulings and regulations thereunder. 
 “Fair Market Value” means, with respect to a Share, the fair market
value thereof as of the relevant date of determination, as determined in accordance with a valuation methodology approved by the Committee. 
 “Incentive Stock Option” means an Option that is intended to qualify for special federal income tax treatment pursuant to Sections 421 and 422 of the Code, as now constituted or subsequently amended, or pursuant to a
successor provision of the Code, and which is so designated in the applicable Award Document. 
 “Morgan Stanley”
means Morgan Stanley, a Delaware corporation. 
 “Option” or “Stock Option” means a right,
granted to a Participant pursuant to Section 9, to purchase one Share. 
 “Other Award” means any other form of
award authorized under Section 11 of the Plan, including any such Other Award the receipt of which was elected pursuant to Section 12(a). 
 “Participant” means an individual to whom an Award has been made. 
 “Plan” means
the Morgan Stanley 2007 Equity Incentive Compensation Plan, as amended from time to time in accordance with Section 15(e) below. 
 “Restricted Stock” means Shares granted or sold to a Participant pursuant to Section 7. 
 “SAR” means a right, granted to a Participant pursuant to Section 10, to receive upon exercise of such right, in cash or Shares (or a combination thereof) as authorized by the Committee, an amount equal to the
increase in the Fair Market Value of one Share over a specified exercise price. 
 “Section 162(m) Participant”
means, for a given fiscal year of Morgan Stanley, any Participant designated by the Committee as a Participant whose compensation may be subject to the limit on deductible compensation imposed by Section 162(m) of the Code (or any successor
provisions thereto). 
 “Section 162(m) Performance Goals” means the performance formula that was approved by Morgan
Stanley’s stockholders on March 22, 2001 or any other performance formula or performance goals approved by Morgan Stanley’s stockholders pursuant to Section 162(m) of the Code (or any successor provisions thereto). 
 “Section 409A” means Section 409A of the Code (or any successor provisions thereto). 
 “Shares” means shares of Stock. 
 “Stock” means the common stock, par value $0.01 per share, of Morgan Stanley. 
  

 2 

 “Stock Unit” means a right, granted to a Participant pursuant to Section 8,
to receive one Share or an amount in cash equal to the Fair Market Value of one Share, as authorized by the Committee. 
 “Subsidiary” means (i) a corporation or other entity with respect to which Morgan Stanley, directly or indirectly, has the power, whether through the ownership of voting securities, by contract or otherwise, to
elect at least a majority of the members of such corporation’s board of directors or analogous governing body, or (ii) any other corporation or other entity in which Morgan Stanley, directly or indirectly, has an equity or similar interest
and which the Committee designates as a Subsidiary for purposes of the Plan. 
 “Substitute Awards” means Awards
granted upon assumption of, or in substitution for, outstanding awards previously granted by a company or other entity acquired (directly or indirectly) by Morgan Stanley or with which Morgan Stanley combines. 
 3. Effective Date and Term of Plan. 
 (a) Effective Date. The Plan shall become effective upon its adoption by the Board, subject to its approval by Morgan Stanley’s stockholders. Prior to such stockholder approval, the Committee may grant Awards conditioned on
stockholder approval, but no Shares may be issued or delivered pursuant to any such Award until Morgan Stanley’s stockholders have approved the Plan. If such stockholder approval is not obtained at or before the first annual meeting of
stockholders to occur after the adoption of the Plan by the Board, the Plan and any Awards made thereunder shall terminate ab initio and be of no further force and effect. 
 (b) Term of Plan. No Awards may be made under the Plan after the date that is five years from the date of shareholder approval. 
 4. Stock Subject to Plan. 
 (a)
Overall Plan Limit. The total number of Shares that may be delivered pursuant to Awards shall be 100,000,000 as calculated pursuant to Section 4(c). The number of Shares available for delivery under the Plan shall be adjusted as provided
in Section 4(b). Shares delivered under the Plan may be authorized but unissued shares or treasury shares that Morgan Stanley acquires in the open market, in private transactions or otherwise. 
 (b) Adjustments for Certain Transactions. In the event of a stock split, reverse stock split, stock dividend, recapitalization, reorganization,
merger, consolidation, extraordinary dividend or distribution, split-up, spin-off, combination, reclassification or exchange of shares, warrants or rights offering to purchase Stock at a price substantially below Fair Market Value or other change in
corporate structure or any other event that affects Morgan Stanley’s capitalization, the Committee shall equitably adjust (i) the number and kind of shares authorized for delivery under the Plan, including the maximum number of Shares
available for Awards of Options or SARs as provided in Section 4(d) and the maximum number of Incentive Stock Options as provided in Section 4(e), and (ii) the number and kind of shares subject to any outstanding Award and the
exercise or purchase price per share, if any, under any outstanding Award. In the discretion of the Committee, such an adjustment may take the form of a cash payment to a Participant. The Committee shall make all such adjustments, and its
determination as to what adjustments shall be 

  

 3 

 
made, and the extent thereof, shall be final. Unless the Committee determines otherwise, such adjusted Awards shall be subject to the same vesting schedule
and restrictions to which the underlying Award is subject. 
 (c) Calculation of Shares Available for Delivery. In calculating the
number of Shares that remain available for delivery pursuant to Awards at any time, the following rules shall apply (subject to the limitation in Section 4(e)): 
 1. The number of Shares available for delivery shall be reduced by the number of Shares subject to an Award and, in the case of an Award
that is not denominated in Shares, the number of Shares actually delivered upon payment or settlement of the Award. 
 2. The
number of Shares tendered (by actual delivery or attestation) or withheld from an Award to pay the exercise price of the Award or to satisfy any tax withholding obligation or liability of a Participant shall be added back to the number of Shares
available for delivery pursuant to Awards. 
 3. The number of Shares in respect of any portion of an Award that is canceled
or that expires without having been paid or settled by the Company shall be added back to the number of Shares available for delivery pursuant to Awards to the extent such Shares were counted against the Shares available for delivery pursuant to
clause (1). 
 4. If an Award is settled or paid by the Company in whole or in part through the delivery of consideration
other than Shares, or by delivery of fewer than the full number of Shares that was counted against the Shares available for delivery pursuant to clause (1), there shall be added back to the number of Shares available for delivery pursuant to Awards
the excess of the number of Shares that had been so counted over the number of Shares (if any) actually delivered upon payment or settlement of the Award. 
 5. Any Shares underlying Substitute Awards shall not be counted against the number of Shares available for delivery pursuant to Awards and shall not be subject to Section 4(d). 
 (d) Individual Limit on Options and SARs. The maximum number of Shares that may be subject to Options or SARs granted to or elected by a
Participant in any fiscal year shall be 2,000,000 Shares. The limitation imposed by this Section 4(d) shall not include Options or SARs granted to a Participant pursuant to Section 162(m) Performance Goals. 
 (e) ISO Limit. The full number of Shares available for delivery under the Plan may be delivered pursuant to Incentive Stock Options, except that
in calculating the number of Shares that remain available for Awards of Incentive Stock Options the rules set forth in Section 4(c) shall not apply to the extent not permitted by Section 422 of the Code. 
 5. Administration. 
 (a) Committee
Authority Generally. The Committee shall administer the Plan and shall have full power and authority to make all determinations under the Plan, subject to the express provisions hereof, including without limitation: (i) to select
Participants from among the Eligible Individuals; (ii) to make Awards; (iii) to determine the number of Shares subject to each Award 

  

 4 

 
or the cash amount payable in connection with an Award; (iv) to establish the terms and conditions of each Award, including, without limitation, those
related to vesting, cancellation, payment, exercisability, and the effect, if any, of certain events on a Participant’s Awards, such as the Participant’s termination of employment with the Company; (v) to specify and approve the
provisions of the Award Documents delivered to Participants in connection with their Awards; (vi) to construe and interpret any Award Document delivered under the Plan; (vii) to prescribe, amend and rescind rules and procedures relating to
the Plan; (viii) to make all determinations necessary or advisable in administering the Plan and Awards, including without limitation determinations as to whether (and if so as of what date) a Participant has commenced, or has experienced a
termination of, employment; provided, however, that to the extent full or partial payment of any Award that constitutes a deferral of compensation subject to Section 409A is made upon or as a result of a Participant’s
termination of employment, the Participant will be considered to have experienced a termination of employment if, and only if, the Participant has experienced a separation from service with the Participant’s employer for purposes of
Section 409A; (ix) to vary the terms of Awards to take account of securities law and other legal or regulatory requirements of jurisdictions in which Participants work or reside or to procure favorable tax treatment for Participants; and
(x) to formulate such procedures as it considers to be necessary or advisable for the administration of the Plan. 
 (b)
Delegation. To the extent not prohibited by applicable laws or rules of the New York Stock Exchange, the Committee may from time to time delegate some or all of its authority under the Plan to one or more Administrators consisting of one or
more members of the Committee as a subcommittee or subcommittees thereof or of one or more members of the Board who are not members of the Committee or one or more officers of the Company (or of any combination of such persons). Any such delegation
shall be subject to the restrictions and limits that the Committee specifies at the time of such delegation or thereafter. The Committee may at any time rescind all or part of the authority delegated to an Administrator or appoint a new
Administrator. At all times, an Administrator appointed under this Section 5(b) shall serve in such capacity at the pleasure of the Committee. Any action undertaken by an Administrator in accordance with the Committee’s delegation of
authority shall have the same force and effect as if undertaken directly by the Committee, and any reference in the Plan to the Committee shall, to the extent consistent with the terms and limitations of such delegation, be deemed to include a
reference to an Administrator. 
 (c) Authority to Construe and Interpret. The Committee shall have full power and authority, subject
to the express provisions hereof, to construe and interpret the Plan. 
 (d) Committee Discretion. All of the Committee’s
determinations in carrying out, administering, construing and interpreting the Plan shall be made or taken in its sole discretion and shall be final, binding and conclusive for all purposes and upon all persons. In the event of any disagreement
between the Committee and an Administrator, the Committee’s determination on such matter shall be final and binding on all interested persons, including any Administrator. The Committee’s determinations under the Plan need not be uniform
and may be made by it selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled,
among other things, to make non-uniform and selective determinations, and to enter into non-uniform and selective Award Documents, as to the persons receiving Awards under the Plan, and the terms and provisions of Awards under the Plan. 

 

 5 

 (e) No Liability. Subject to applicable law: (i) no member of the Committee or any
Administrator shall be liable for anything whatsoever in connection with the exercise of authority under the Plan or the administration of the Plan except such person’s own willful misconduct; (ii) under no circumstances shall any member
of the Committee or any Administrator be liable for any act or omission of any other member of the Committee or an Administrator; and (iii) in the performance of its functions with respect to the Plan, the Committee and an Administrator shall
be entitled to rely upon information and advice furnished by the Company’s officers, the Company’s accountants, the Company’s counsel and any other party the Committee or the Administrator deems necessary, and no member of the
Committee or any Administrator shall be liable for any action taken or not taken in good faith reliance upon any such advice. 
 6.
Eligibility. Eligible Individuals shall include all officers, other employees (including prospective employees) and consultants of, and other persons who perform services for, the Company, non-employee directors of Subsidiaries and employees
and consultants of joint ventures, partnerships or similar business organizations in which Morgan Stanley or a Subsidiary has an equity or similar interest. Any Award made to a prospective employee shall be conditioned upon, and effective not
earlier than, such person’s becoming an employee. Members of the Board who are not Company employees will not be eligible to receive Awards under the Plan. An individual’s status as an Administrator will not affect his or her eligibility
to receive Awards under the Plan. 
 7. Restricted Stock. An Award of Restricted Stock shall be subject to the terms and
conditions established by the Committee in connection with the Award and specified in the applicable Award Document. Restricted Stock may, among other things, be subject to restrictions on transfer, vesting requirements or cancellation under
specified circumstances. 
 8. Stock Units. An Award of Stock Units shall be subject to the terms and conditions established by
the Committee in connection with the Award and specified in the applicable Award Document. Each Stock Unit awarded to a Participant shall correspond to one Share. Upon satisfaction of the terms and conditions of the Award, a Stock Unit will be
payable, at the discretion of the Committee, in Stock or in cash equal to the Fair Market Value on the payment date of one Share. As a holder of Stock Units, a Participant shall have only the rights of a general unsecured creditor of Morgan Stanley.
A Participant shall not be a stockholder with respect to the Shares underlying Stock Units unless and until the Stock Units convert to Shares. Stock Units may, among other things, be subject to restrictions on transfer, vesting requirements or
cancellation under specified circumstances. 
 9. Options. 
 (a) Options Generally. An Award of Options shall be subject to the terms and conditions established by the Committee in connection with the Award
and specified in the applicable Award Document. The Committee shall establish (or shall authorize the method for establishing) the exercise price of all Options awarded under the Plan, except that the exercise 

  

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price of an Option shall not be less than 100% of the Fair Market Value of one Share on the Award Date. Notwithstanding the foregoing, the exercise price of
an Option that is a Substitute Award may be less than the Fair Market Value per Share on the Award Date, provided that such substitution complies with applicable laws and regulations, including the listing requirements of the New York Stock Exchange
and Section 409A or Section 424, as applicable, of the Code. Upon satisfaction of the conditions to exercisability of the Award, a Participant shall be entitled to exercise the Options included in the Award and to have delivered, upon
Morgan Stanley’s receipt of payment of the exercise price and completion of any other conditions or procedures specified by Morgan Stanley, the number of Shares in respect of which the Options shall have been exercised. Options may be either
nonqualified stock options or Incentive Stock Options. Options and the Shares acquired upon exercise of Options may, among other things, be subject to restrictions on transfer, vesting requirements or cancellation under specified circumstances.

 (b) Prohibition on Restoration Option Grants. Anything in the Plan to the contrary notwithstanding, the terms of an Option shall
not provide that a new Option will be granted, automatically and without additional consideration in excess of the exercise price of the underlying Option, to a Participant upon exercise of the Option. 
 (c) Prohibition on Repricing of Options and SARs. Anything in the Plan to the contrary notwithstanding, the Committee may not reprice any Option
or SAR. “Reprice” means any of the following or any other action that has the same effect: (i) amending an Option or SAR to reduce its exercise price, (ii) canceling an Option or SAR at a time when its exercise price exceeds the
Fair Market Value of one Share in exchange for an Option, SAR, Restricted Stock, Stock Unit or other equity award, unless the cancellation or exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction;
or (iii) taking any other action that is treated as a repricing under generally accepted accounting principles; provided, however, that adjustments pursuant to Section 4(b) shall not be deemed to be a repricing that is prohibited by
this Section 9(c). 
 (d) Payment of Exercise Price. Subject to the provisions of the applicable Award Document and to the extent
authorized by rules and procedures of Morgan Stanley from time to time, the exercise price of the Option may be paid in cash, by actual delivery or attestation to ownership of freely transferable Shares already owned by the person exercising the
Option, or by such other means as Morgan Stanley may authorize. 
 (e) Maximum Term on Stock Options and SARs. No Option or SAR shall
have an expiration date that is later than the tenth anniversary of the Award Date thereof. 
 10. SARs. An Award of SARs shall
be subject to the terms and conditions established by the Committee in connection with the Award and specified in the applicable Award Document. The Committee shall establish (or shall authorize the method for establishing) the exercise price of all
SARs awarded under the Plan, except that the exercise price of a SAR shall not be less than 100% of the Fair Market Value of one Share on the Award Date. Notwithstanding the foregoing, the exercise price of any SAR that is a Substitute Award may be
less than the Fair Market Value of one Share on the Award Date, subject to the same conditions set forth in Section 9(a) for Options that are Substitute Awards. Upon satisfaction of the conditions to the payment of the Award, each SAR shall
entitle a Participant to an amount, if any, equal to the Fair Market Value 

  

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of one Share on the date of exercise over the SAR exercise price specified in the applicable Award Document. At the discretion of the Committee, payments to
a Participant upon exercise of an SAR may be made in Shares, cash or a combination thereof. SARs and the Shares that may be acquired upon exercise of SARs may, among other things, be subject to restrictions on transfer, vesting requirements or
cancellation under specified circumstances. 
 11. Other Awards. The Committee shall have the authority to establish the terms
and provisions of other forms of equity-based or equity-related Awards (such terms and provisions to be specified in the applicable Award Document) not described above that the Committee determines to be consistent with the purpose of the Plan and
the interests of the Company, which Awards may provide for (i) cash or Stock payments based in whole or in part on the value or future value of Stock or on any amount that Morgan Stanley pays as dividends or otherwise distributes with respect
to Stock, (ii) the acquisition or future acquisition of Stock, (iii) cash or Stock payments (including payment of dividend equivalents in cash or Stock) based on one or more criteria determined by the Committee unrelated to the value of
Stock, or (iv) any combination of the foregoing. Awards pursuant to this Section 11 may, among other things, be made subject to restrictions on transfer, vesting requirements or cancellation under specified circumstances. 
 12. General Terms and Provisions. 
 (a) Awards in General. Awards may, in the discretion of the Committee, be made in substitution in whole or in part for cash or other compensation payable to an Eligible Individual. In accordance with rules and procedures authorized
by the Committee, an Eligible Individual may elect one form of Award in lieu of any other form of Award, or may elect to receive an Award in lieu of all or part of any compensation that otherwise might have been paid to such Eligible Individual;
provided, however, that any such election shall not require the Committee to make any Award to such Eligible Individual. Any such substitute or elective Awards shall have terms and conditions consistent with the provisions of the Plan
applicable to such Award. Awards may be granted in tandem with, or independent of, other Awards. The grant, vesting or payment of an Award may, among other things, be conditioned on the attainment of performance objectives, including without
limitation objectives based in whole or in part on net income, pre-tax income, return on equity, earnings per share, total shareholder return or book value per share. 
 (b) Discretionary Awards. All grants of Awards and deliveries of Shares, cash or other property under the Plan shall constitute a special discretionary incentive payment to the Participant and shall not be
required to be taken into account in computing the amount of salary, wages or other compensation of the Participant for the purpose of determining any contributions to or any benefits under any pension, retirement, profit-sharing, bonus, life
insurance, severance or other benefit plan of the Company or other benefits from the Company or under any agreement with the Participant, unless Morgan Stanley specifically provides otherwise. 
 (c) Dividends and Distributions. If Morgan Stanley pays any dividend or makes any distribution to holders of Stock, the Committee may in its
discretion authorize payments (which may be in cash, Stock (including Restricted Stock) or Stock Units or a combination thereof) with respect to the Shares corresponding to an Award, or may authorize appropriate adjustments to outstanding Awards, to
reflect such dividend or distribution. The Committee may make any 

  

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such payments subject to vesting, deferral, restrictions on transfer or other conditions. Any determination by the Committee with respect to a
Participant’s entitlement to receive any amounts related to dividends or distributions to holders of Stock, as well as the terms and conditions of such entitlement, if any, will be part of the terms and conditions of the Award, and will be
included in the Award Document for such Award. 
 (d) Deferrals. In accordance with the procedures authorized by, and subject to the
approval of, the Committee, Participants may be given the opportunity to defer the payment or settlement of an Award to one or more dates selected by the Participant. To the extent an Award constitutes a deferral of compensation subject to
Section 409A, the Committee shall set forth in writing (which may be in electronic form), on or before the date the applicable deferral election is required to be irrevocable in order to meet the requirements of Section 409A, the
conditions under which such election may be made. 
 (e) Award Documentation and Award Terms. The terms and conditions of an Award
shall be set forth in an Award Document authorized by the Committee. The Award Document shall include any vesting, exercisability, payment and other restrictions applicable to an Award (which may include, without limitation, the effects of
termination of employment, cancellation of the Award under specified circumstances, restrictions on transfer or provision for mandatory resale to the Company). 
 (f) Awards to Section 162(m) Participants. Except for Options and SARs the shares underlying which are counted against the individual limit set forth in Section 4(d), all Awards to Section 162(m)
Participants shall be made pursuant to the attainment of Section 162(m) Performance Goals as certified by the Committee in accordance with the requirements of Section 162(m) of the Code. Without any further action by the Board or the
Committee, this Section 12(f) shall cease to apply on the effective date of the repeal of Section 162(m) of the Code (and any successor provision thereto). 
 13. Certain Restrictions. 
 (a) Stockholder Rights. No Participant (or other persons having
rights pursuant to an Award) shall have any of the rights of a stockholder of Morgan Stanley with respect to Shares subject to an Award until the delivery of the Shares, which shall be effected by entry of the Participant’s (or other
person’s) name in the share register of Morgan Stanley or by such other procedure as may be authorized by Morgan Stanley. Except as otherwise provided in Section 4(b) or 12(c), no adjustments shall be made for dividends or distributions
on, or other events relating to, Shares subject to an Award for which the record date is prior to the date such Shares are delivered. Notwithstanding the foregoing, the terms of an Employee Trust may authorize some or all Participants to give voting
or tendering instructions to the trustee thereof in respect of Shares that are held in such Employee Trust and are subject to Awards. Except for the risk of cancellation and the restrictions on transfer that may apply to certain Shares (including
restrictions relating to any dividends or other rights) or as otherwise set forth in the applicable Award Document, the Participant shall be the beneficial owner of any Shares delivered to the Participant in connection with an Award and, upon such
delivery shall be entitled to all rights of ownership, including, without limitation, the right to vote the Shares and to receive cash dividends or other dividends (whether in Shares, other securities or other property) thereon. 
  

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 (b) Transferability. No Award granted under the Plan shall be transferable, whether voluntarily or
involuntarily, other than by will or by the laws of descent and distribution; provided that, except with respect to Incentive Stock Options, the Committee may permit transfers on such terms and conditions as it shall determine. During the lifetime
of a Participant to whom Incentive Stock Options were awarded, such Incentive Stock Options shall be exercisable only by the Participant. 
 14. Representation; Compliance with Law. The Committee may condition the grant, exercise, settlement or retention of any Award on the Participant making any representations required in the applicable Award Document. Each Award
shall also be conditioned upon the making of any filings and the receipt of any consents or authorizations required to comply with, or required to be obtained under, applicable law. 
 15. Miscellaneous Provisions. 
 (a)
Satisfaction of Obligations. As a condition to the making or retention of any Award, the vesting, exercise or payment of any Award or the lapse of any restrictions pertaining thereto, Morgan Stanley may require a Participant to pay such sum
to the Company as may be necessary to discharge the Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA and other social security or similar tax) imposed on property or income received by a
Participant pursuant to the Award or to satisfy any obligation that the Participant owes to the Company. In accordance with rules and procedures authorized by Morgan Stanley, (i) such payment may be in the form of cash or other property,
including the tender of previously owned Shares, and (ii) in satisfaction of such taxes, assessments or other governmental charges or, exclusively in the case of an Award that does not constitute a deferral of compensation subject to
Section 409A, of other obligations that a Participant owes to the Company, Morgan Stanley may make available for delivery a lesser number of Shares in payment or settlement of an Award, may withhold from any payment or distribution of an Award
or may enter into any other suitable arrangements to satisfy such withholding or other obligation. To the extent an Award constitutes a deferral of compensation subject to Section 409A, the Company may not offset from the payment of such Award
amounts that a Participant owes to the Company with respect to any such other obligation except to the extent such offset is not prohibited by Section 409A and would not cause a Participant to recognize income for United States federal income
tax purposes prior to the time of payment of the Award or to incur interest or additional tax under Section 409A. 
 (b) No Right to
Continued Employment. Neither the Plan nor any Award shall give rise to any right on the part of any Participant to continue in the employ of the Company. 
 (c) Headings. The headings of sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 
 (d) Governing Law. The Plan and all rights hereunder shall be construed in accordance with and governed by the laws of the State of New York,
without regard to any conflicts or choice of law, rule or principle that might otherwise refer the interpretation of the award to the substantive law of another jurisdiction. 
  

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 (e) Amendments and Termination. The Board or Committee may modify, amend, suspend or terminate the
Plan in whole or in part at any time and may modify or amend the terms and conditions of any outstanding Award (including by amending or supplementing the relevant Award Document at any time); provided, however, that no such modification, amendment,
suspension or termination shall, without a Participant’s consent, materially adversely affect that Participant’s rights with respect to any Award previously made; and provided, further, that the Committee shall have the right at any time,
without a Participant’s consent and whether or not the Participant’s rights are materially adversely affected thereby, to amend or modify the Plan or any Award under the Plan in any manner that the Committee considers necessary or
advisable to comply with any law, regulation, ruling, judicial decision, accounting standards, regulatory guidance or other legal requirement. Notwithstanding the preceding sentence, neither the Board nor the Committee may accelerate the payment or
settlement of any Award, including, without limitation, any Award subject to a prior deferral election, that constitutes a deferral of compensation for purposes of Section 409A except to the extent such acceleration would not result in the
Participant incurring interest or additional tax under Section 409A. No amendment to the Plan may render any Board member who is not a Company employee eligible to receive an Award at any time while such member is serving on the Board. To the
extent required by applicable law or the rules of the New York Stock Exchange, amendments to the Plan shall not be effective unless they are approved by Morgan Stanley’s stockholders. 
  

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