Document:

Tax Deferred Equity Participation Plan

 EXHIBIT 10.9 
 MORGAN STANLEY 
 TAX DEFERRED EQUITY PARTICIPATION PLAN 
 (Amended and Restated as of November 26, 2007) 
  

	1.	Purposes of the Plan. 

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

	2.	Definitions. 

 Unless determined otherwise by the
Committee and set forth in the applicable Award Certificate, capitalized terms used herein without definition have the meanings set forth below. 
 (a) “Account” means a book account maintained by Morgan Stanley reflecting, with respect to each Award, the number of shares of Stock to be distributed to each Participant upon a Realization Event. 
 (b) “Administrator” means the individual or individuals to whom the Committee delegates authority under the Plan in accordance with
Section 5. 
 (c) “Affiliate” means any corporation which is a member of a “controlled group of corporations”
(as defined in Code section 414(b)) of which Morgan Stanley is a member and any trade or business (whether or not incorporated) under “common control” (as defined in Code section 414(c)) with Morgan Stanley. 
 (d) “Award” means an award granted to a Participant by the Committee pursuant to Section 7. 
 (e) “Award Certificate” means a written certificate (including in electronic form) issued by the Company and signed on behalf of the
Company (which signature may be in facsimile) and sets forth the terms and conditions of the Award. 
 (f) “Board” means the
Board of Directors of Morgan Stanley. 
 (g) “Change in Control”: 
 (A) In respect of each Award having an effective date on or before December 31, 1997, “Change in Control” means:

 (i) The acquisition by any person (including a group, within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act), other than (I) any employee plan established by a Company or (II) any of Morgan Stanley’s affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act), without the prior approval 

  

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of the Board, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of Stock or the combined voting power of Morgan Stanley’s then outstanding voting securities in a transaction or series of transactions not approved by a majority of the Directors as of the Effective Date; or 
 (ii) A change in the composition of the Board such that individuals who, as of the Effective Date, constitute the Board cease for any
reason to constitute at least a majority thereof, provided that any person who becomes a Director subsequent to the Effective Date and whose nomination for election is approved by at least a majority of the Directors as of the Effective Date,
(other than a nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the Directors of Morgan Stanley, as such terms are used in Rule 14a-11 of
Regulation 14A under the Exchange Act) shall be deemed a Director as of the Effective Date. 
 (B) In respect of each
Award having an effective date on or after January 1, 1998, “Change in Control” shall have the meaning ascribed to such term by the Committee in respect of such Award and set forth in the applicable Award Certificate.

 (h) “Change in Ownership” shall have the meaning ascribed to such term by the Committee and set forth in the applicable
Award Certificate. 
 (i) “Code” means the Internal Revenue Code of 1986, as amended, and the rules, regulations and
guidance thereunder and any successor thereto. 
 (j) “Committee” means such committee of two or more persons as the Board
shall appoint from time to time to administer the Plan. It is intended that the members of the Committee shall be “non-employee directors” within the meaning of Rule 16b-3 and “outside directors” within the meaning of
Section 162(m); however, the mere fact that a Committee member shall fail to qualify under either of these requirements shall not invalidate any Award made by the Committee that is otherwise valid. 
 (k) “Company” means each of Morgan Stanley, its Affiliates and any Subsidiary the employees of which participate in the Plan pursuant to
Section 3(a). 
 (l) “Compensation” for a year means the annual rate of salary payable to the Participant for such year
(disregarding any salary reduction agreements under any deferred compensation plan, including plans described in Code section 125 or 401(k)) plus the annual incentive bonus payable to such Participant for such year. Compensation shall not include
the amount of any contribution payable under the Plan. 
 (m) “Disability”: 
 (i) In respect of each Award having an effective date prior to June 20, 2006, “Disability” means any physical or
mental condition that would qualify a Participant for a disability benefit under any long-term disability plan maintained by any Company and applicable to the Participant. 
 (ii) In respect of each Award having an effective date on or after June 20, 2006, “Disability” has the meaning
determined by the Committee and set forth in the applicable Award Certificate. 
  

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

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

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

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

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

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

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

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

	4.	Stock Subject to the Plan. 

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

	5.	Administration of the Plan. 

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

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

  

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

	6.	Eligibility. 

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

	7.	Awards under the Plan. 

 (a) Awards.

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

  

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

	8.	Funding of the Plan. 

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

 

	9.	Maintenance of Accounts. 

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

  

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

	10.	Payments under the Plan. 

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

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

	11.	Securities Matters. 

 Subject to Section 10,
Morgan Stanley shall use its best efforts to assure that any securities distributed to Participants hereunder are freely transferable at the time of distribution, including, to the extent required under applicable law, effecting the registration
pursuant to the Securities Act of any shares of Stock to be distributed hereunder or effecting similar compliance 

  

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under any state laws; provided, however, that with respect to any Award having an effective date on or after January 1, 1998, securities
distributed to Participants hereunder may be subject to such restrictions on transfer as the Committee may determine. Notwithstanding anything herein to the contrary, Morgan Stanley shall not be obligated to cause to be issued or delivered any
shares of Stock pursuant to the Plan unless and until Morgan Stanley is advised by its counsel that the issuance and delivery of such shares complies with all applicable laws, regulations of governmental authorities and the requirements of any
securities exchange on which Stock is listed. The Committee may require, as a condition of the issuance and delivery of shares of Stock pursuant to the terms hereof, the recipient of such shares to make such covenants, agreements and
representations, and that if certificated, the certificates representing such shares bear such legends, as the Committee, in its sole discretion, deems necessary or desirable. 
  

	12.	[Intentionally Omitted] 

  

	13.	Adjustments in Certain Events. 

 (a) A
Participant’s Account shall be equitably adjusted to reflect the amount of any securities, cash and other property that would have been received with respect to shares of Stock credited to such Participant’s Account if such Stock were held
by the Participant as a result of any stock dividend or split, recapitalization, extraordinary dividend, merger, spinoff, consolidation, combination or exchange of shares or similar corporate change or any other equity restructuring event.

 (b) In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or split, recapitalization,
extraordinary dividend, merger, spinoff, consolidation, combination or exchange of shares or similar corporate change or any other equity restructuring event, the maximum aggregate number of shares of Stock subject to the Plan and the class of
shares of Stock subject to the Plan shall be equitably adjusted by the Committee. 
 (c) Except as expressly provided in this Section, a
Participant shall have no rights as a result of any stock dividend or split, recapitalization, extraordinary dividend, merger, spinoff, consolidation, combination or exchange of shares or similar corporate change or any other equity restructuring
event. 
  

	14.	[Intentionally Omitted] 

  

	15.	No Special Employment Rights. 

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

	16.	Payroll and Withholding Taxes; Other Obligations. 

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

  

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procedures authorized by 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 make available for delivery a lesser number of shares of Stock in payment of an Award, may deduct or withhold 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 that is subject to Section 409A, 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. 
  

	17.	Termination and Amendment. 

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

  

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authority to accelerate the payment or settlement of any Award granted under the Plan that constitutes 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, settlement or
exercise of the Award or to incur interest or additional tax under Section 409A. 
  

	18.	[Intentionally Omitted] 

  

	19.	Shareholder Approval. 

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

	20.	Effect of Revocation Event. 

 Upon the occurrence of
a Revocation Event, the Committee may, in its sole discretion, elect to terminate the Plan and/or the Trust in whole or in part. In the event that the Committee elects to so terminate the Plan, the Trust or any Participant’s Account as a result
of a Revocation Event, in consideration of and as soon as practicable after Morgan Stanley’s providing the Trustee with a written undertaking to pay to Participants the amount to be paid under this Section, all amounts related to the Plan held
in the Trust (or if the entire Trust is not terminated, any terminated Accounts) shall be distributed to Morgan Stanley. In respect of any Award that does not constitute a deferral of compensation subject to Section 409A, Morgan Stanley shall,
in its sole discretion, (a) pay to each Participant whose Account is terminated, as soon as practicable after the date of such termination, a lump sum in cash equal to the Fair Market Value multiplied by the number of shares of Stock reflected
in each Participant’s Account as of the date of such termination, (b) distribute to each Participant whose Account is terminated, as soon as practicable after the date of such termination, that number of shares of Stock that would have
been distributable to such Participant under the Plan or (c) distribute to each Participant whose Account is terminated that number of shares of Stock that would have been distributable to such Participant at such time as shares would have been
distributable to such Participant under the Plan, had the Plan continued. Morgan Stanley shall not make any such payment or distribution to a Participant whose Account is terminated in respect of any Award that constitutes a deferral of compensation
subject to Section 409A, except to the extent that such acceleration or distribution is not prohibited by Section 409A-and would not cause the Participant to recognize income for United States federal income tax purposes prior to the time
of payment, settlement or exercise of the Award or to incur interest or additional tax under Section 409A. 
  

	21.	Miscellaneous. 

 (a) Stockholder Rights.
Unless the Committee determines otherwise, prior to the payment of Stock pursuant to any Award, the Participant shall not have any rights as a stockholder with respect to any shares of Stock subject to such Award. 
 (b) Transferability. Unless the Committee determines otherwise, no Award granted under the Plan shall be transferable other than by will or by the
laws of descent and distribution. 
 (c) Non-Uniform Determinations. The Committee’s determinations under the Plan need not be
uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons are similarly situated). 

  

 12 

 
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 the persons receiving Awards under the Plan, and the terms and provisions of Awards under the Plan. 
 (d) Headings. The headings of sections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Plan. 
 (e) Governing Law. The Plan and all rights hereunder shall be subject to and interpreted in accordance with the laws of the State of Delaware
without reference to the principles of conflicts of law. 
  

 13Employees' Equity Accumulation Plan

 EXHIBIT 10.12 
 MORGAN STANLEY 
 EMPLOYEES’ EQUITY ACCUMULATION PLAN 
 (Amended and Restated as of November 26, 2007) 
 Section 1     Purpose. 
 The primary purposes of the Morgan Stanley Employees’ Equity
Accumulation Plan are to attract, retain and motivate key employees of the Company and to align the interests of key employees with stockholders through equity-based compensation and enhanced opportunities for ownership of Stock. It is the further
purpose of this Plan to permit the granting of Awards that will constitute performance-based compensation for certain executive officers, as described in Section 162(m) of the Code. 
 Section 2     Definitions. 
 Unless determined otherwise by the Committee
and set forth in the applicable Award Certificate, capitalized terms used herein without definition have the meanings set forth below. 
 2.1
“Act” shall mean the Securities Exchange Act of 1934, as amended, and any successor thereto. 
 2.2 “Amendment Date” shall
mean March 21, 2006. 
 2.3 “Award” shall mean a grant of Stock or cash, or the right to acquire Stock or cash, under such terms and
conditions as shall be determined by the Committee consistent with the terms of the Plan. 
 2.4 “Award Certificate” shall mean a written
document (including in electronic form) described in Section 6.2, setting forth the terms and conditions of an Award made pursuant to the Plan. 
 2.5
“Board” shall mean the Board of Directors of Morgan Stanley. 
 2.6 “Cash Unit” shall mean a general, unsecured obligation
of the Company to pay cash to a Participant pursuant to an Award recorded by the Company as a bookkeeping entry. 
 2.7 “Code” shall mean
the Internal Revenue Code of 1986, as amended, and any successor thereto. 
 2.8 “Committee” shall mean a committee of two or more directors
of Morgan Stanley, as described in Section 3.1. 
 2.9 “Company” shall mean Morgan Stanley and any corporation, trade or business which
at the time of reference, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with Morgan Stanley. 
 2.10 “Consent” shall mean, with respect to the granting of any Award under the Plan, the acquisition, issuance or purchase of Stock or other rights hereunder or the taking of any other action hereunder: 
 (i) any and all listings, registrations or qualifications in respect thereof upon any securities exchange or other self-regulatory
organization or under any federal, state or local law, rule or regulation; 
  

 1 

 (ii) the expiration, elimination or satisfaction of any prohibitions, restrictions or
limitations under any federal, state or local law, rule or regulation or the rules of any securities exchange or other self-regulatory organization; 
 (iii) any and all written agreements and representations by the Participant with respect to the disposition of Stock, or with respect to any other matter, which the Committee shall deem necessary or desirable to
comply with the terms of any such listing, registration or qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made; and 
 (iv) any and all consents, clearances and approvals in respect of the granting of an Award, the acquisition, issuance or purchase of Stock
or other rights hereunder or the taking of any other action under the Plan, by any governmental agencies or other regulatory bodies or any parties to any loan agreements or other contractual obligations of the Company. 
 2.11 “Disability” shall mean the termination of a Participant’s employment with the Company under circumstances that (i) entitle the
Participant to receive benefits under any long-term disability plan sponsored by the Company, or (ii) if the Participant does not participate in such a plan, are determined by the Committee to have been caused by a physical or mental condition
that would have entitled the Participant (if the Participant had been eligible to participate) to receive disability benefits under the Morgan Stanley, Dean Witter, Discover & Co. Long Term Disability Plan or any successor thereto.

 2.12 “Effective Date” shall have the meaning set forth in Section 10.12. 
 2.13 “Executive Officer” shall mean an executive officer of Morgan Stanley within the meaning of Rule 3b-7 promulgated under the Act. 
 2.14 “Fair Market Value” shall mean, with respect to a share of Stock, the fair market value thereof as determined by the Committee as follows:

 (i) if Stock is listed for trading on the New York Stock Exchange, the closing price, regular way, of the Stock as reported
on the New York Stock Exchange Composite Tape on the date of reference or, if no such reported sale of the Stock shall have occurred on such date, on the next preceding date on which there was such a reported sale; or 
 (ii) if Stock is not so listed but is listed on another national securities exchange or authorized for quotation on the National
Association of Securities Dealers Inc.’s NASDAQ National Market System (“NNM”), the closing price, regular way of the Stock on such date on such exchange or NNM, as the case may be, on which the largest number of shares of Stock have
been traded in the aggregate on the preceding twenty trading days or, if no such reported sale of the Stock shall have occurred on such date on such exchange or NNM, as the case may be, on the preceding date on which there was such a reported sale
on such exchange or NNM, as the case may be; or 
 (iii) if Stock is not listed for trading on a national securities exchange
or authorized for quotation on NNM, the average of the closing bid and asked prices as reported by the National Association of Securities Dealers, Inc. Automated Quotation System or, if no such prices shall have been so reported for such date, on
the next preceding date for which such prices were so reported; or 
  

 2 

 (iv) if no Fair Market Value may be determined from the foregoing, the value of a share
of Stock as determined in good faith by the Committee; 
 provided, however, that, with respect to any Award granted on or after the Amendment
Date, “Fair Market Value” shall mean, with respect to a share of Stock, the fair market value of the Stock on the date of reference, as determined in accordance with a valuation methodology approved by the Committee. 
 2.15 “Morgan Stanley” shall mean Morgan Stanley, a Delaware corporation, or any successor thereto. 
 2.16 “Option” shall mean a right to acquire Stock. 
 2.17
“Original Option” shall have the meaning set forth in Section 7.2(a). 
 2.18 “Other Stock-Based Awards” shall have
the meaning set forth in Section 9.1. 
 2.19 “Participant” shall mean an individual who has been granted an Award under the Plan.

 2.20 “Plan” shall mean the Morgan Stanley Employees’ Equity Accumulation Plan, as amended from time to time. 
 2.21 “Plan Action” shall have the meaning set forth in Section 10.2. 
 2.22 “Related Employment” shall mean the employment of an individual by an employer other than the Company, provided that: 
 (i) such employment is undertaken by the individual at the request or with the consent of the Company; 
 (ii) immediately prior to undertaking such employment the individual was an employee of the Company, or was engaged in Related Employment
as defined herein; and 
 (iii) such employment is recognized by the Committee, in its discretion, as Related Employment.

 2.23 “Related SAR” shall have the meaning set forth in Section 7.3(a) 
 2.24 “Restoration Option” shall have the meaning set forth in Section 7.2(a). 
 2.25
“Restoration Option Right” shall have the meaning set forth in Section 7.2(a). 
 2.26 “Restricted Stock” shall mean
an Award of Stock subject to conditions determined by the Committee pursuant to Section 8. 
 2.27 “Retirement” shall mean the
termination of a Participant’s employment with the Company under circumstances giving rise to an entitlement to a retirement benefit, including a benefit payable by reason of Disability, under any employee pension benefit plan maintained by the
Company which plan is intended to be qualified under Code section 401(a); provided, however, that, if the Participant has not accrued a benefit under any such pension plan, the term “Retirement” shall have the meaning given
to such term under the Dean Witter Reynolds Inc. Pension Plan or any successor thereto; provided, further, that, notwithstanding the foregoing, the transfer of an individual to Related Employment shall not be treated as a termination
of employment due to Retirement. 
  

 3 

 2.28 “Rule 16b-3” shall mean Rule 16b-3 promulgated under the Act and any successor provision thereto.

 2.29 “SAR” shall mean a stock appreciation right, as described in Section 7.3. 
 2.30 “SEC” shall mean the U.S. Securities and Exchange Commission, or any United States federal governmental body that succeeds to its responsibilities.

 2.31 “Section 162(m) Award” shall mean an Award that is intended to constitute qualified performance-based compensation within the
meaning of Code section 162(m) and the regulations thereunder (or any successor provisions thereto). 
 2.32 “Section 409A” shall mean Code
section 409A and the regulations thereunder (or any successor provisions thereto). 
 2.33 “Stock” shall mean the common stock of Morgan
Stanley, par value $.01 per share, and any stock into which such stock is transformed as a result of a corporate reorganization or other transaction. 
 2.34
“Stock Unit” shall mean a general, unsecured obligation of the Company 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 and subject to
conditions determined by the Committee pursuant to Section 8. 
 2.35 “Unrelated SAR” shall have the meaning set forth in
Section 7.3(b). 
 Section 3     Administration. 
 3.1 The Plan shall be administered by the Committee. It is intended that the directors appointed to serve on the Committee shall qualify (i) as “non-employee directors” (within the meaning of Rule
16b-3), (ii) as “outside directors” (within the meaning of Code section 162(m) and the regulations thereunder), and (iii) under any similar statute or rule, in each case, to the extent applicable. The fact that a Committee member
shall fail to qualify under any of these requirements shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan. 
 3.2 The Committee shall have the authority: 
 (i) to exercise all of the powers granted to it under the Plan;

 (ii) to construe, interpret and implement the Plan and any written documents setting forth the terms of Awards under the
Plan; 
 (iii) to prescribe, amend and rescind rules relating to the Plan; 
 (iv) to make any determination necessary or advisable in administering the Plan; 
 (v) to correct any defect, supply any omission and reconcile any inconsistency in the Plan or in any Award made under the Plan; and

  

 4 

 (vi) to delegate any of its powers to Morgan Stanley’s chief executive officer or to
one or more other officers of the Company, except with respect to any person subject to the provisions of Section 16 of the Act, with respect to a Section 162(m) Award or which by law may not be so delegated. 
 3.3 Morgan Stanley’s chief executive officer may, to the extent permitted by law, further delegate any of the powers that the Committee has delegated to such
officer pursuant to Section 3.2(vi) to one or more officers of the Company. 
 3.4 The determination of the Committee on all matters relating to the
Plan or any Award made under the Plan shall be final, binding and conclusive for all purposes and upon all persons interested herein. 
 3.5 No member of the
Committee shall be liable, individually or jointly and severally with any other Committee member, for any action, determination or omission made in good faith with respect to the Plan or any Award hereunder. In the performance of their duties
hereunder, Committee members shall be entitled to rely upon information and advice furnished: (a) by the Company and its officers, directors, employees, accountants, counsel and consultants; (b) by Participants and their heirs, assigns and
representatives; and (c) by any other party whose information or advice is determined by the Committee to be reasonable and necessary for the administration of the Plan. 
 3.6 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. 
 Section
4     Shares Available for Awards. 
 4.1 Subject to Section 10.4 (relating to adjustments upon changes in
capitalization), as of any date, the total number of shares of Stock with respect to which Awards may be granted under the Plan, shall equal: 
 (a) 30,000,0001 shares of Stock; 
 (b) reduced by the sum (without duplication) of: 
 (i) the number of shares of Stock subject to outstanding Awards; 
 (ii) the number of shares
of Stock in respect of which Awards have been exercised; 
 (iii) the number of shares of Stock issued without forfeiture or
similar restrictions or issued with forfeiture or similar restrictions which have lapsed; 
  

	 1
	 Such number represents the maximum number of shares of Stock available for Awards under the Plan that was initially
approved by the Board and the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that were made in accordance with Section 4.1 or Section 10.4
after the Effective Date. 

  

 5 

 (c) increased by the sum of: 
 (i) shares of Stock subject to previously granted Awards that have expired, terminated, or been canceled or forfeited for any reason
(other than by reason of exercise or vesting); 
 (ii) shares of Stock delivered or withheld (or deliverable or required to be
withheld as a condition of exercise of an Award) in payment of the exercise or purchase price of an Award granted under the Plan or under any other employee benefit plan of the Company. 
 4.2 Any rule set forth in Section 4.1 that is considered a “formula” under the rules of the New York Stock Exchange applicable to Morgan Stanley shall expire on and not be applied after the date
specified by the rules of the New York Stock Exchange (which, as of the Amendment Date, is the tenth anniversary of the Effective Date). The expiration of any such rule shall not affect any calculation of shares of Stock available for delivery under
the Plan that was made while the rule was in effect. 
 4.3 Without limiting the generality of the foregoing, the Committee may cancel any Award under the
Plan and issue a new Award in substitution therefor upon such terms as the Committee may in its sole discretion determine, provided that the substituted Award shall satisfy all applicable Plan requirements as of the date such new Award is
made. Notwithstanding the foregoing or any other provision of the Plan, in no event shall an Option or SAR be granted in substitution for a previously granted Option or SAR with the old Award being canceled or surrendered as a condition of receiving
the new Award, if the new Award would have a lower Option exercise price or SAR appreciation base than the Award it replaces. The foregoing is not intended to prevent equitable adjustment of Awards upon the occurrence of certain events as herein
provided, including without limitation, adjustments pursuant to Section 10.4. 
 Section 5     Persons Eligible for
Awards. 
 Awards under the Plan may be made to such employees of the Company as the Committee shall from time to time, in its sole
discretion, select. 
 Section 6     Types of Awards Under the Plan. 
 6.1 In General. 
 (a) Awards may be made under the
Plan in the form of: 
 (i) Options, 
 (ii) SARs, 
 (iii) Restricted Stock or Stock Units, 
 (iv) Other Stock-based Awards, 
 (v) Section 162(m) Awards; or 
 (vi) any other type of Award deemed by the Committee in its discretion to be consistent with the purposes of the Plan, including but not limited to Awards granted in connection with or in lieu of awards or payments
under any other employee benefit plan or compensation arrangement of the Company (other than a plan qualified under Code Section 401(a) or an excess benefit plan related to a plan qualified under Section 401(a)) and Awards made to eligible
employees who are foreign nationals or are employed outside the United States. 
  

 6 

 (b) Awards may be granted alone or in conjunction with one or more other Awards, provided that
Options intended to qualify as incentive stock options shall only be granted in compliance with Section 7.1 and applicable provisions of the Code. 
 (c) In granting an Award, including, without limitation, a Section 162(m) Award, the Committee may provide that, irrespective of whether an Award is denominated, in whole or in part, by reference to shares of
Stock, an Award may be paid at the election of the Committee or, if permitted by the Committee, the Participant, in whole or in part, in Stock, Stock Units, cash, Cash Units or other Awards. 
 (d) Awards under the Plan, including, without limitation, Section 162(m) Awards, may, in the discretion of the Committee, be made in substitution,
in whole or in part, for cash or other compensation that would otherwise become payable to an eligible individual. An Award Certificate may provide that an eligible individual may elect to receive one form of Award permitted under the Plan in lieu
of any other form of Award, or may elect to receive an Award under the Plan in lieu of all or part of any compensation which 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. 
 6.2 Award Certificates. 
 The terms and conditions of
all Options, SARs and Section 162(m) Awards shall be set forth in Award Certificates. Other Awards granted under the Plan shall be evidenced by Award Certificates to the extent deemed necessary or desirable by the Committee. An Award
Certificate shall be signed by an officer of the Company (which signature may be in facsimile). The Company may, in its sole discretion, require a Participant to execute and return a copy of the Award Certificate to the Company as a condition of
receiving or retaining an Award or payment on account of an Award. 
 6.3 Dividend Equivalents. 
 With respect to any ordinary or regular dividend or distribution on shares of Stock corresponding to an Award other than an Option or a SAR, the
Committee may, in its discretion, authorize current or deferred payments (payable in cash, Stock, Stock Units or a combination thereof) or appropriate adjustments to the outstanding Award to reflect such ordinary or regular dividend or distribution,
including the reinvestment of ordinary or regular dividends into additional shares of Stock or Stock Units. The Committee may, in its discretion, make such payments subject to vesting, deferral, restrictions on transfer and other terms and
conditions. 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 set forth in the Award Certificate corresponding to such Award. 
 6.4 Deferred Compensation. 
 (a) Plan Awards. The Committee may, in an Award Certificate or by appropriate action at
any time before an Award is vested, paid or exercised, give Participants the opportunity to defer the payment or settlement of the Award in accordance with procedures specified by the Committee. 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 

  

 7 

 
409A, the conditions under which such election may be made. Notwithstanding any other authority granted to it, the Committee shall not have authority to
accelerate the payment or settlement of any Award granted under the Plan that constitutes 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, settlement or exercise of the Award or to incur interest or additional tax under Section 409A. 
 (b) Other Deferred Compensation. The Committee shall determine whether or not an Award shall be made in conjunction with deferral of a
Participant’s salary, bonus or other compensation, or any combination thereof and whether or not such deferred amounts may be: 
 (i) forfeited to the Company or, in the case of Awards other than Section 162(m) Awards, other Participants, or any combination thereof under certain circumstances (which may include but need not be limited to, certain types of
termination of employment or performance of services for the Company); and/or 
 (ii) subject to increase or decrease in value
based upon the attainment of, or failure to attain, respectively, certain performance measures. 
 6.5 Unfunded Status of Plan. 
 The Plan is intended to constitute an “unfunded and unsecured” plan for incentive compensation. With respect to any payments in either cash,
Stock that is not Restricted Stock or other property not yet made to a Participant by the Company, nothing herein contained shall give any Participant any rights that are greater than those of a general, unsecured creditor of the Company. In its
sole discretion, the Committee may set aside assets (in trust or otherwise) to assist the Company in meeting its obligations under the Plan (either alone or in conjunction with one or more other compensation plans); provided, however,
that the existence of such trusts or other arrangements shall be consistent with the unfunded status of the Plan. 
 Section 7    
Options and SARs. 
 7.1 Options. 
 (a) Subject to Sections 7.8 and 7.9, the Committee may grant Options in such amounts and subject to such conditions as the Committee shall from time to time in its sole discretion determine, subject to the terms of the Plan. Such terms and
conditions may include, but shall not be limited to, restrictions on the transferability and the forfeiture of Stock acquired by a Participant upon the exercise of an Option. Unless the applicable Award Certificate otherwise provides, no Option may
be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of by the Participant. 
 (b) Each Award
Certificate relating to an Option shall specify whether the Option is a non-qualified stock option, is intended to be an incentive stock option described in Code section 422 or is intended to be any other type of option that may be described in the
Code. No Option shall be treated as an incentive stock or other tax-qualified option unless the Award Certificate specifically states that the Award is intended to be an incentive stock option or other tax-qualified option. 
 (c) In the case of incentive stock options, the terms and conditions of any such grant shall be subject to and comply with the requirements of Code
sections 421, 422 and 424, any regulations thereunder and any successors thereto, including, but not limited to, the requirement that such Options 

  

 8 

 
be exercisable during the Participant’s lifetime only by the Participant, that no such Option shall be granted more than ten years after the date the
Board adopts the Plan nor exercisable more than ten years after the date of grant. In no event shall incentive stock options be granted under the Plan in respect of more than 20,000,0002 shares of Stock, subject to adjustment under
Section 10.4. If an Option is intended to be an incentive stock option and if, for any reason, such Option shall fail to so qualify as an incentive stock option, such Option shall be considered to be a nonqualified stock option appropriately
granted under the Plan to the extent such Option meets the Plan’s requirements applicable to nonqualified stock options. 
 7.2 Restoration Option
Rights. 
 (a) Subject to Sections 7.8 and 7.9, the Committee may grant to a Participant, as a feature of an Option (under this Plan) or
separately in connection with an option under any other plan of the Company (in either case, an “Original Option”) a right to acquire Stock (a “Restoration Option Right”) pursuant to which a Participant who pays the
exercise price of the Original Option by tendering shares of Stock shall automatically be granted an option (a “Restoration Option”) to acquire a number of shares of Stock equal to the sum of: (i) the number of shares tendered
by the Participant to pay the exercise price; and (ii) the number of shares tendered by the Participant or, pursuant to the Participant’s exercise of a tax withholding right described in Section 10.3(b)(ii), withheld by the Company
from the shares being acquired upon the exercise of the Original Option to pay income or other taxes required to be withheld from the Participant’s compensation as a result of the exercise of the Original Option. 
 (b) The Committee may grant Restoration Option Rights in connection with an Original Option at the time the Original Option is granted or at any later
time on or before the date on which the Original Option is exercised. 
 (c) The Committee may, in its discretion, provide in an Award
Certificate that a Restoration Option shall not be granted or, if granted, shall not become exercisable, unless the Fair Market Value of a share of Stock shall, on the date of such grant or exercise, be equal to or exceed a minimum amount determined
by the Committee. 
 (d) The Restoration Option exercise price shall not be less than the Fair Market Value of a share of Stock on the
Original Option’s exercise date. Restoration Options shall be subject to the terms and provisions contained in the Plan and such other terms, conditions and limitations as the Committee shall determine from time to time regarding the
exercisability, forfeiture, payment provisions and other features of Restoration Options. All Restoration Options shall expire not later than the expiration date of the Original Option with respect to which the Restoration Option was granted.

 7.3 SARs. 
 (a) Related SARs.
Subject to Sections 7.8 and 7.9, the Committee may grant a SAR in connection with all or any part of an Option granted under the Plan (a “Related SAR”), either at the time the related Option is granted or any time thereafter prior
to the exercise, termination or cancellation of such Option, and subject to such terms and conditions as the Committee shall from time to time in its sole discretion determine, subject to the terms of the Plan. The grantee of a Related SAR shall,
subject to the terms of the Plan and the applicable Award Certificate, have the right to surrender to the Company 
  

	 2
	 Such number represents the maximum number of shares of Stock available for incentive stock options under the Plan that
was initially approved by the Board and the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that were made in accordance with Section 10.4 after
the Effective Date. 

  

 9 

 for cancellation all or a portion of the related SAR granted under the Plan, but only to the extent that such related
Option is then exercisable, and to be paid therefor an amount equal to the excess (if any) of : 
 (i) the aggregate Fair
Market Value of the shares of Stock subject to the related Option or portion thereof (determined as of the date of exercise of such Related SAR), over 
 (ii) the aggregate exercise price of the related Option or portion thereof. 
 (b) Unrelated SARs.
Subject to Sections 7.8 and 7.9, the Committee may grant a SAR that is not connected with an Option (an “Unrelated SAR”) in such amount and subject to such terms and conditions as the Committee shall from time to time in its sole
discretion determine, subject to the terms of the Plan. The grantee of an Unrelated SAR shall, subject to the terms of the Plan and the applicable Award Certificate, have the right to surrender to the Company for cancellation all or a portion of
such SAR, but only to the extent that such SAR is then exercisable, and to be paid therefor an amount equal to the excess (if any) of: 
 (i) the aggregate Fair Market Value of the shares of Stock underlying such SAR or portion thereof (determined as of the date of exercise of such SAR) over, 
 (ii) the aggregate appreciation base of the shares of Stock underlying such SAR or portion thereof. 
 (c) Payment due to a Participant upon exercise of a SAR shall be made in cash, Cash Units, Stock or Stock Units (Stock or Stock Units to be valued at the
Fair Market Value thereof as of the date of exercise), currently or deferred under Section 6.4, as determined by the Committee in its sole discretion consistent with the relevant Award Certificate and the Plan. 
 7.4 Exercise of Related SAR Reduces Shares Subject to Option. 
 Upon any exercise of a Related SAR, or any portion thereof, the number of shares of Stock subject to the related Option shall be reduced by the number of shares of Stock in respect of which the Related SAR shall have
been exercised. 
 7.5 Exercisability of Options and SARs . Subject to the other provisions of the Plan: 
 (a) Exercisability Determined by Award Certificate. Each Award Certificate shall set forth the period during which and the conditions subject to
which the Option or SAR evidenced thereby shall be exercisable, as determined by the Committee in its discretion. 
 (b) Exercise of
Related SAR. Unless the applicable Award Certificate otherwise provides, a Related SAR shall be exercisable at any time during the period that the related Option may be exercised. 
 (c) Partial Exercise Permitted. Unless the applicable Award Certificate otherwise provides, an Option or SAR granted under the Plan may be
exercised from time to time as to all or part of the full number of shares as to which such Option or SAR shall then be exercisable. 
 (d)
Notice of Exercise; Exercise Date. 
 (i) An Option or SAR shall be exercisable by the filing of a written notice of
exercise with the Company, on such form and in such manner (including in electronic form, such as by email or via a website) as the Committee shall in its sole discretion prescribe, and, in the case of an Option, by payment in accordance with
Section 7.6. 
  

 10 

 (ii) Unless the applicable Award Certificate otherwise provides, or the Committee in its
sole discretion otherwise determines, the date of exercise of an Option or SAR shall be the date the Company receives such written notice of exercise and payment. 
 7.6 Payment of Option Exercise Price . 
 (a) Tender Due Upon Notice of Exercise. Unless the applicable Award
Certificate otherwise provides or the Committee in its sole discretion otherwise determines, any written notice of exercise of an Option shall be accompanied by payment of the full purchase price for the shares being purchased. 
 (b) Manner of Payment. Subject to the provisions of the applicable Award Certificate, the exercise price of the Option may be paid (i) in
cash, (ii) by actual delivery of, or attestation to ownership of, freely transferable Stock already owned by the person exercising the Option, (iii) by a combination of cash and Stock equal in value to the exercise price, (iv) through
net share settlement or similar procedure involving the withholding of Stock subject to the Option with a value equal to the exercise price, or (v) by such other means as the Company, in its discretion, may authorize. In accordance with the
rules and procedures authorized by the Company for this purpose, the Option may also be exercised through a “cashless exercise” procedure authorized by the Company that permits Participants to exercise Options by delivering a properly
executed exercise notice to the Company together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan proceeds necessary to pay the exercise price and the amount of any required tax or
other withholding obligations. 
 7.7 Proof of Beneficial Ownership. 
 Wherever in this Plan or any Award Certificate a Participant is permitted to pay the exercise price of an Award or taxes relating to the exercise of an Award by delivering shares of Stock, the Participant may, subject
to procedures satisfactory to the Committee, satisfy such delivery requirement by presenting proof of beneficial ownership of such shares of Stock, in which case the Company shall treat the Award as exercised without further payment and shall
withhold such number of shares from the shares acquired by the exercise of the Award (or if the Award is paid in cash, cash in an amount equal to the Fair Market Value of such shares). 
 7.8 Maximum Number of Shares Subject to Awards. 
 Grants of Options and SARs to any Participant in any five consecutive calendar years may not be made with respect to more than 3,000,0003 shares of Stock, subject to adjustment under Section 10.4. 

7.9 Exercise Price, Base Appreciation Price and Expiration Date. 
 No Option or SAR shall be granted hereunder at an exercise or base appreciation price, as the case may be, lower than 100% of the Fair Market Value of a share of Stock on the grant date thereof and no Option or SAR
granted hereunder shall remain exercisable for more than 10 years after the grant date thereof. 
  

	 3
	 Such number represents the maximum number of shares of Stock available for Options and SARs that may be granted to any
Participant in five consecutive calendar years that was initially approved by the Board and the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that
were made in accordance with Section 10.4 after the Effective Date. 

  

 11 

 Section 8     Restricted Stock and Stock Unit Awards. 
 8.1 Grant of Awards. 
 The Committee may grant Restricted Stock or Stock Unit Awards, alone or in tandem with any other Award made under the Plan or any other award made under any other plan or arrangement of the Company, in such amounts
and subject to such terms and conditions as the Committee shall from time to time in its sole discretion determine and set forth in an Award Certificate; provided, however, that the total number of shares of Stock with respect to which
the aggregate of Awards under Sections 8 and 9 of the Plan may vest shall not exceed 10,000,0004, subject to adjustment under Section 10.4. The vesting and payment of a Restricted Stock or Stock Unit Award granted under the Plan may
be conditioned upon (i) the completion of a specified period of employment with the Company, (ii) the attainment of specified performance goals, and/or (iii) such other criteria as the Committee may determine in its sole discretion.
The forfeiture of a Restricted Stock or Stock Unit Award shall be governed by such terms and conditions as are set forth in the Award Certificate. 
 8.2
Payment. 
 Each Award Certificate with respect to a Restricted Stock or Stock Unit Award shall set forth the amount (if any) to be
paid by the Participant with respect to such Award. If a Participant makes any payment to the Company (other than for taxes) for a Restricted Stock or Stock Unit Award which does not vest, a refund of such payment may be made to the Participant
following the forfeiture of such Award on such terms and conditions as the Committee may determine. Any payment required to be made by a Participant shall be made in a form described in Section 7.6(b). 
 8.3 Issuance of Shares. 
 The Committee may provide
that one or more certificates or other evidence of ownership representing Restricted Stock Awards shall be registered in the Participant’s name and bear an appropriate legend specifying that such shares are not transferable and are subject to
the terms and conditions of the Plan and the applicable Award Certificate, or that such certificate or certificates shall be held in escrow by the Company on behalf of the Participant until such shares vest or are forfeited, all on such terms and
conditions as the Committee may determine. Unless the applicable Award Certificate otherwise provides, no share of Restricted Stock may be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed of by the Participant
until such share has vested in accordance with the terms of such Award. 
 8.4 Participants’ Rights Regarding Restricted Stock and Stock Units.

 Unless the applicable Award Certificate otherwise provides: (i) a Participant may vote and receive dividends on Restricted Stock
awarded under the Plan; and (ii) any Stock received as a distribution with respect to shares of Restricted Stock (or credited to an Award of Stock Units) shall be subject to the same restrictions as such shares of Restricted Stock (or Stock
Units). 
  

	 4
	 Such number represents the maximum number of shares of Stock available for Awards under Sections 8 and 9 of the Plan
that was initially approved by the Board and the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that were made in accordance with Section 4.1 or
Section 10.4 after the Effective Date. 

  

 12 

 Section 9     Other Stock-Based Awards. 
 9.1 The Committee may grant other Awards of Stock and Awards that are valued, in whole or in part, by reference to,
or are otherwise based on, the Fair Market Value of Stock (“Other Stock-Based Awards”) under such terms and conditions as the Committee shall determine; provided, however, that that the total number of shares of Stock
with respect to which the aggregate of Awards under Sections 8 and 9 of the Plan may vest shall not exceed 10,000,000,5 subject to adjustment under Section 10.4. 
 9.2 The Committee may grant Other Stock-Based Awards alone or in addition to any other Awards made under the Plan or any awards made under any other plan or arrangement of the Company. Subject to the provisions of the
Plan, the Committee shall have sole and absolute discretion to determine to whom and when such Other Stock-Based Awards will be made, the number of shares of Stock to be Awarded under (or otherwise related to) such Other Stock-Based Awards and all
other terms and conditions of such Awards. The Committee shall determine whether Other Stock-Based Awards shall be denominated in Stock, Stock Units, cash, Cash Units or a combination thereof, or settled on a deferred basis pursuant to
Section 6.4. 
 9.3 The Company, in its discretion, may provide that a Participant may vote or receive dividends or dividend equivalents on Other
Stock-Based Awards awarded under the Plan. 
 Section 10     Miscellaneous. 
 10.1 Amendment of the Plan; Modification of Awards. 
 (a) The Board or the Committee may amend, alter, suspend, discontinue or terminate the Plan, or any portion thereof, at any time, and may modify or amend the terms and conditions of any outstanding Award (including by amending or
supplementing the relevant Award Certificate at any time), provided that no such amendment, alteration, suspension, discontinuation or termination shall be made without shareholder approval to the extent such approval is necessary to comply
with any tax or regulatory requirement, including but not limited to any approval requirement which is a prerequisite for exemptive relief from Section 16(b) of the Act, necessary to qualify Awards granted hereunder as performance-based
compensation for purposes of Code section 162(m) or necessary to satisfy listing or other requirements of any self-regulatory organization (provided that the Company is subject to the requirements of Section 16 of the Act, Code
Section 162(m) or the jurisdiction of such self-regulatory organization, as the case may be, as of the date of such action). No amendment to the Plan or an Award shall materially impair any rights under an Award previously made without the
consent of the affected Participant; provided, however, that the Company may, without a Participant’s consent, amend or modify the Plan or any Award under the Plan in any manner that the Company considers necessary or advisable to
comply with any law, regulation, ruling, judicial decision or accounting standards or to ensure that Awards granted under the Plan are not subject to United States federal, state or local income tax or any equivalent taxes in territories outside the
United States prior to payment. 
  

	 5
	 Such number represents the maximum number of shares of Stock available for Awards under Sections 8 and 9 of the Plan
that was initially approved by the Board and the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) and does not reflect adjustments to such maximum number that were made in accordance with Section 4.1 or
Section 10.4 after the Effective Date. 

  

 13 

 (b) Subject to the terms and conditions of the Plan (including Section 10.1(a)), the Board or the
Committee shall have the right to amend outstanding Awards including, without limitation, any amendment which would: 
 (i)
accelerate the time or times at which an Award may vest or become exercisable; and/or 
 (ii) extend the scheduled termination
or expiration date of the Award; 
 provided, however, that no amendment having a material adverse effect upon the interest of a Participant in
an Award shall be made without the consent of such Participant; and provided, further, that the Committee shall not have any such right to the extent it is prohibited by Section 409A, or the existence of such right would result in
a Participant being required to recognize income for United States federal income tax purposes prior to the time of payment, settlement or exercise of an Award or would result in a Participant incurring interest or additional tax under
Section 409A. 
 (c) Section 409A. Any discretionary authority that the Committee may have pursuant to the Plan shall not be
applicable to an Award that is subject to Section 409A to the extent such discretionary authority 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. 
 10.2 Consent Requirements. 
 If the Committee shall at any time determine that any Consent is
necessary or desirable as a condition of, or in connection with, the granting of any Award under the Plan, the acquisition, issuance or purchase of Stock or other rights hereunder or the taking of any other action hereunder (each such action being
hereinafter referred to as a “Plan Action”), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained to the full satisfaction of the Committee. 
 10.3 Withholding Taxes; Satisfaction of Obligations. 
 (a) 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, the Company may require a Participant to pay such sum to the Company as may be
necessary to discharge the Company’s obligations with respect to any taxes, assessments or other governmental charges (including FICA tax) imposed on property or income received by a Participant pursuant to the Award or to satisfy any other
obligation that the Participant owes to the Company. In accordance with rules and procedures authorized by the Company, such payment may be in the form of cash or other property, including the tender of previously owned Shares. Whenever cash is to
be paid under the Plan (whether upon the exercise of a SAR or otherwise), the Company may, as a condition of its payment, deduct therefrom, or from any salary or other payments due to the Participant other than payments of amounts that constitute
deferred compensation subject to Section 409A, an amount sufficient to enable the Company to satisfy all taxes, assessments or other governmental charges related thereto. In accordance with rules and procedures authorized by the Company, in
satisfaction of such taxes, assessments or other governmental charges, the Company may make available for delivery a lesser number of Shares in payment or settlement of an Award or permit a Participant to tender previously owned Shares to satisfy
such withholding obligation. 
 (b) Without limiting the generality of the foregoing, if authorized by the Committee: 
 (i) a Participant may elect to satisfy all or part of the foregoing withholding requirements by delivery of unrestricted shares of Stock
owned by the Participant for such period 

  

 14 

 
of time as may be required to avoid a charge to the Company’s earnings for financial statement purposes (as determined by the Company) having a Fair
Market Value (determined as of the date of such delivery by the Participant) equal to all or part of the amount to be so withheld, provided that the Company may require, as a condition of accepting any such delivery, the Participant to
furnish an opinion of counsel acceptable to the Company to the effect that such delivery would not result in the Participant incurring any liability under Section 16(b) of the Act and does not require any Consent; and 
 (ii) the Committee may, from time to time and upon such terms and conditions as it may in its discretion determine, grant rights
(“withholding rights”) under the Plan to have the Company withhold from the receipt of proceeds on the settlement or exercise of any Award a number of shares of Stock of sufficient Fair Market Value (x) to pay the amount of taxes the
Company is required to collect or withhold on the settlement or exercise of the Award or (y) exclusively in the case of an Award that does not constitute a deferral of compensation subject to Section 409A, to satisfy any other obligation
that a Participant owes to the Company. To the extent an Award constitutes a deferral of compensation subject to Section 409A, the Company may not withhold from the proceeds on settlement or exercise of such Award amounts that a Participant
owes to the Company in respect of any such other obligation 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 the Award or to incur interest or additional tax under Section 409A. Withholding rights shall be exercised simultaneously with the exercise or receipt of an Award, giving rise to a tax withholding obligation. Shares of Stock
withheld shall be deemed to have been delivered to the Company on the exercise or Award date, as appropriate. 
 10.4 Adjustments Upon Changes in
Capitalization. 
 The number of shares of Stock which may be issued pursuant to Awards under the Plan, the maximum number of Options
and/or unrelated SARs which may be granted to any one person in any period, the maximum number of shares of Stock with respect to which the aggregate of Awards made under Sections 8 and 9 may vest, the number of shares of Stock that may be subject
to incentive stock options, the number of shares of Stock subject to Awards, the exercise price and appreciation base of Options and SARs granted under the Plan, the maximum number of shares of Stock which may be paid pursuant to a
Section 162(m) Award, the amount payable by a Participant in respect of an Award and any appropriate feature of any Other Stock-Based Award (i) shall be equitably adjusted for any change in the number of issued shares of Stock resulting
from the subdivision or combination of shares of Stock or other capital adjustments, or the payment of a stock dividend after the effective date of the Plan, or other change in such shares of Stock effected without receipt of consideration by the
Company and (ii) shall be equitably adjusted to reflect the payment of an extraordinary cash dividend or the spinoff of a portion of the Company after the Amendment Date; provided, however, that any Awards covering fractional
shares of Stock resulting from any such adjustment shall be eliminated; and provided, further, that no Option granted under the Plan shall be adjusted in a manner that causes such Option to fail to continue to qualify as an
“incentive stock option” within the meaning of Code section 422 (and no Section 162(m) Award shall be adjusted pursuant to this Section 10.4 in a manner that causes such Award to fail to meet the requirements of Code section
162(m)). 
 10.5 No Right of Employment or Continued Participation. 
 Nothing in the Plan or in any Award Certificate shall confer upon any person the right to continue in the employment or other service of the Company or a Subsidiary or affect any right which 

  

 15 

 
the Company may have to terminate the employment or other service of such person. Nothing in the Plan shall confer upon any person a claim or right to the
grant of an Award. 
 10.6 No Rights as a Stockholder. 
 Except as otherwise provided in an applicable Award Certificate, no Participant or other person shall have any of the rights of a stockholder of the Company with respect to shares of Stock subject to an Award until
the issuance of such Stock to the Participant for such shares or, in the case of a Restricted Stock Award granting dividend and/or voting rights to the Participant, to the escrow agent, custodian or trustee designated to hold such shares. Except as
otherwise provided in an applicable Award Certificate or in Section 10.4, or with respect to Restricted Stock, no adjustment shall be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash,
securities or other property) for which the record date is prior to the date such Stock is issued. 
 10.7 Nature of Payments. 
 (a) Any and all Awards or payments hereunder shall be granted, issued, delivered or paid, as the case may be, in consideration of services performed or
to be performed for the Company by the Participant. 
 (b) All Awards and payments granted or made hereunder shall be considered special
incentive or retention payments to the Participant. Except as specifically provided in such plan or agreement, no Awards or payments shall be taken into account in computing the Participant’s salary or compensation for the purposes of
determining any benefits under any pension, retirement, life insurance or other benefit plan of the Company or any agreement between the Company and the Participant. 
 (c) By exercising or accepting payment of an Award under the Plan, the Participant shall thereby waive any claim to continued exercise or vesting of an Award or to damages or severance entitlement related to
non-continuation of the Award beyond the period provided herein or in the applicable Award Certificate, notwithstanding any contrary provision in any written employment contract with the Participant, whether any such contract is executed before or
after the grant date of the Award. 
 10.8 Non-Uniform Determinations. 
 The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who receive, or are eligible to receive, Awards under the Plan (whether or not such persons are
similarly situated). Without 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:

 (a) the persons receiving Awards under the Plan, and 
 (b) the terms and provisions of Awards under the Plan. 
 10.9 Other Payments or Awards. 
 Nothing contained in the Plan shall be deemed in any way to limit or restrict the Company, or the Committee, from making any Award or payment to any
person under any other plan, arrangement or understanding, whether now existing or hereafter in effect. 
  

 16 

 10.10 Change in Control. 
 The Committee may, in its discretion, include in any Award Certificate a provision pursuant to which the Award will become exercisable, vest, be paid, have restrictions on the Stock underlying the Award removed, be
canceled or forfeited, be replaced or otherwise become subject to special vesting, exercise and forfeiture rules upon the occurrence of a “change in control” or “change in ownership” (as such terms are defined by the Committee
from time to time); provided, however, that to the extent an Award constitutes a deferral of compensation subject to Section 409A, the Committee shall not provide for accelerated payment of such Award unless such change in control
or change in ownership constitutes a change in control event for purposes of Section 409A. 
 10.11 Section Headings. 
 The section headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said sections.

 10.12 Effective Date. 
 The Plan
became effective upon the approval thereof by the stockholders of Dean Witter, Discover & Co. (the predecessor of Morgan Stanley) on May 28, 1997 (the “Effective Date”). 
 10.13 Governing Law. 
 The Plan shall be governed by
the laws of the State of Delaware applicable to agreements made and to be performed entirely within such state. 
 10.14 Plan Expenses. 
 The expenses of the Plan shall be borne by the Company. 
 10.15 Related Employment. 
 With respect to Awards granted prior to the Amendment Date that do not constitute a deferral of
compensation subject to Section 409A, or which constitute such a deferral of compensation but do not provide for payment or settlement of the Award upon termination of employment, (i) the commencement of Related Employment by a Participant
shall not be treated, for purposes of the Plan and such Award, as a termination of employment, and (ii) the Retirement, Disability or death of an individual during a period of Related Employment shall be treated, for purposes of the Plan and
such Award, as if such event had occurred while the individual was an employee of the Company. For any Award granted prior to the Amendment Date that is not described in the preceding sentence, the commencement of Related Employment by a Participant
shall be treated as a termination of employment if it constitutes a separation from service with the Participant’s employer for purposes of Section 409A. 
  

 17

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