Document:

Memorandum to Colm Kelleher regarding Expatriate Relocation Policy.

 EXHIBIT 10.6 
 

 
  

									
	TO:	 	Colm Kelleher	  		  	DATE:	 	February 16, 2006
					
	FROM:	 	[Names redacted]	  		  	DEPT:	 	London Human Resources
		
	SUBJECT:	 	Relocation to New York under the Expatriate Policy

 The Expatriate programme has been developed to ensure that employees on international assignments are able to
maintain a lifestyle comparable to that which they enjoyed in their home countries. The expatriate programme is designed only for temporary assignments; this programme will be reviewed for discontinuation or renewal on an annual basis.

 Your terms and conditions of employment, other than as set out in this memorandum, will remain unchanged throughout this temporary assignment. Your
employment will remain with Morgan Stanley UK Limited and shall continue to be governed by UK law. 
 Your International Services contact in New York is
[name, telephone number and email address redacted]. 
 Expatriate compensation consists of base salary, bonus, and a system of allowances, deductions and
reimbursements as follows: 
 Compensation Package: 
  

	 	•	 	 Base Salary: Upon transfer your base salary will continue to be £170,000. Base, bonus and any other regular compensation will be deposited into
your UK bank account at the same time as your peers in the UK and you will be responsible for transferring funds to New York. 

  

	 	•	 	 Cost of Living Allowance: Morgan Stanley assumes that expatriates spend their base salary on three items in the home country; housing, taxes and goods
and services (spendable income). A cost of living allowance (COLA) is a differential paid to equalise the expatriate for the difference between the cost of goods and services in the home location versus the cost of these same goods and services in
the assignment location. COLA is a function of spendable income and family size. 

 Associates for International Research,
Inc. (AIRINC), an international consulting firm which specialises in surveying international goods and services markets, is the source for all cost of living differentials. 
  

 Your cost of living allowance will be £6,494 annually. This allowance will be reviewed quarterly
and adjusted if warranted and will be paid with your regular salary on a monthly basis. 
  

	 	•	 	 Housing/Utility Allowance: In each assignment location, Human Resources establishes reasonable housing cost guidelines. You may select housing in
accordance with these guidelines. The housing allowance will be paid into your US bank account and you will pay rent directly to your landlord. In addition the Firm will pay a utility allowance to cover the costs of heating, lighting and personal
effects insurance. The Firm will not take responsibility in the assignment location for house maintenance costs (gardening fee, annual painting, etc.). 

 Your housing allowance will be $11,000 per month.1 
 Your utility
allowance will be $700 per month.2 
 In
addition, should you decide not to ship furniture to New York, and rent an unfurnished apartment, you will be eligible for a furniture rental allowance of $1,300 per month. 
  

	 	•	 	 Assumed UK Housing Deduction: An assumed home country housing cost is deducted from your base salary. The assumed home country housing deduction is
determined using Associates for International Research (AIRINC) tables which contain average housing costs by base salary and family size. 

 Your annual assumed UK housing deduction, based on your annual base salary and family size of five will be £19,734. 
 However, if you decide to rent out your UK home please refer to the Homesale/Home Management paragraph below. 
  

	 	•	 	 Hypothetical Taxes: The tax equalisation programme is designed to ensure that an expatriate will remain whole with respect to his home country tax
position. The Firm takes responsibility for the expatriate’s actual foreign tax liability and withholds hypothetical UK taxes and National Insurance contributions from the expatriate’s base salary and above base compensation. Outside
income such as interest and dividends are also subject to hypothetical tax, however, there is no withholding on these amounts. 

 Your annual hypothetical tax withholding on your base salary taking into account your current tax free allowance will be approximately £60,607. 
 The expatriate’s total hypothetical tax liability to the Firm is calculated after his actual or hypothetical UK income tax return has been prepared. The tax equalisation calculation is a hypothetical or
‘dummy’ return which is based on Morgan Stanley compensation, outside income or losses and actual deductions. Tax equalisation begins in the year of transfer and 
  

	 1
	 Effective May 1, 2007 through June 30, 2007, the housing allowance was $22,000. Effective July 1, 2007,
the housing allowance is $28,600 per month. 

	 2
	 Effective July 1, 2007, the utility allowance is $850 per month. 

  

 2 

 
continues up to the tax year of repatriation and may include the year following repatriation. Details can be obtained in the attached tax equalisation policy
document. Please contact [name and telephone number redacted] if you have any queries in this regard. All expatriates are required to sign the tax equalisation acknowledgement statement attached to the front of the tax equalisation policy and
return it to [name redacted], London Human Resources. 
 The Firm has engaged Price Waterhouse Coopers (PwC) on a worldwide basis
to prepare the expatriate’s foreign individual income tax returns and tax equalisation calculation. Reasonable fees associated with these services will be borne by the Firm. 
 You must contact the following PwC team member prior to your departure to discuss the UK and US tax implications of your assignment: [name, telephone
number and email address redacted]. 
 Relocation Package: 
  

	 	•	 	 Visa: In order to work in the United States, you may need to obtain a visa. If you have not already done so, please fill out the Immigration Data
Sheet attached and fax the completed form and requested documents to the Morgan Stanley Visa Center in New York on [telephone number and email address redacted]. Upon review of the data sheet the Visa Center will determine the type of visa required
and contact you to begin the process. Approval will take approximately 8 weeks after your completed application has been submitted to the immigration authorities. All business unit employees MUST have series 7 registration in order to obtain a visa
as outlined on the attached data sheet. Please contact the Visa Center on [telephone number redacted] if you have any questions with respect to the required data. 

 Employment authorisation must be obtained before you begin work in the United States and any travel to the US whilst the visa is pending
should be notified in advance to the Visa Center. 
  

	 	•	 	 Relocation Allowance: Prior to your transfer you will receive a relocation allowance for miscellaneous expenses of one month’s base salary to a
maximum of £3,300, plus 25% of one month’s capped base salary for each accompanying family member to an overall maximum of £6,600. Miscellaneous expenses would include the purchase of small household appliances, curtain and carpet
refitting, driver’s licence fees, etc. This is the standard relocation allowance for assignments lasting several years; please be aware that should your assignment last fifteen months or less your relocation allowance upon repatriation may not
be calculated in the same manner. 

 Please note that you must return a signed tax equalisation policy acknowledgement
statement to [name redacted] in London Human Resources and meet with Price Waterhouse Coopers prior to your departure, in order to receive the relocation allowance. 
 The relocation allowance is considered taxable income in most countries. However, the Firm will protect you for any tax liability on the relocation
allowance through the tax equalisation process. 
 Your miscellaneous relocation allowance based on a family size of five will be
£6,600. 
  

 3 

 Househunting Trip: Expatriates with accompanying dependants are eligible to visit their
assignment location for up to 10 days to secure housing, orient themselves to the location and address family issues. Travel arrangements (business class) and hotel accommodation should be made through American Express. 
 The Firm will meet reasonable expenses incurred during the house hunting trip including meals and taxi cab fares (with receipts). 
 House hunting trips must be co-ordinated with Human Resources in New York and London. 
 Please use job number [number redacted] when booking your flight. 
  

	 	•	 	 Broker’s Fee: The Firm will reimburse any customary broker’s fee up to 12 percent required to be paid for the rental of an apartment in New
York. Employees should not sign any leases until they have a valid US visa. 

  

	 	•	 	 Travel Expenses at Time of Transfer: You will be reimbursed for customary and reasonable transportation expenses for travel to New York including
business class airfare and transportation to and from airports. 

 Please use job number [number redacted] when booking your
flight. 
  

	 	•	 	 Transportation of Household Goods: Morgan Stanley will pay for one air shipment of personal effects (excluding furniture) to a maximum of 500 lbs,
plus an additional 100 lbs for each accompanying family member. If you decide not to rent furniture in New York you will also be entitled to one surface shipment of household goods (furniture and other items that may have exceeded the
limitation of the air shipment) to the maximum capacity of a 40 foot container (approx 10,000 lbs). Please contact [name redacted] at our preferred shippers, 360 Relocations [telephone number and email address redacted] to make the necessary
arrangements. 

  

	 	•	 	 Storage of Household Goods: The Firm will meet the cost of long-term storage of goods left in the UK with the shipping company for the duration of
your assignment if you choose not to ship certain goods to New York. Storage will be provided in New York only during your temporary living period. 

  

	 	•	 	 UK Car: If you have a private car, the Firm will reimburse the loss on sale of up to 2 cars per household. The loss is calculated as the differential
between the sale price obtainable by a car dealer (retail sale value as determined using the independent car trade publication, The CAP Guide), and the amount actually received on disposal of the car(s) to an independent third party. The maximum
reimbursable loss per car is £3,000 or 25% of the retail sale value, whichever is the lower amount. Alternatively, the Firm will reimburse the cost of storage in the UK for the duration of the assignment if the value of the car (as determined
using the CAP Guide) exceeds the likely storage costs. 

  

	 	•	 	 Temporary Living: If you need to live in an hotel or other facility upon your arrival in New York, temporary living accommodation must be arranged
through Execustay by Marriott. Please contact [name redacted], at Execustay on [telephone number and email address redacted] to make the necessary arrangements. 

  

 4 

 You are entitled to temporary living for a maximum of 30 days. You are expected to make every effort to
move into permanent housing within this time period. 
 The cost of living allowance will commence from the start of your temporary living
period and no separate reimbursement will be made for expenses incurred whilst in temporary accommodation. 
  

	 	•	 	 Homesale/Home Management: If you own a primary residence in the UK, you are encouraged to retain and rent out your home while on assignment. If you
rent out your home, the Firm will reimburse you for the customary costs associated with managing your home while on assignment. 

 If you rent your home the Firm will assist in keeping it in good condition for your use upon repatriation by providing a Rental Refurbishing Allowance. This allowance will equal twenty percent of the Assumed Home Country Housing Deduction
and will be paid on a monthly basis through the payroll by charging 80% of the full assumed housing deduction. The Firm will protect you from any tax liability on the Rental Refurbishing Allowance through the tax equalisation process. 
 Alternatively, if you decide to sell your home within 6 months of expatriation and the assignment is expected to exceed 18 months, Morgan Stanley will
reimburse typical seller’s fees to a maximum of £11,500. If you are selling your home in the UK, you must contact Prudential Homesale in the United States on [telephone number redacted] prior to listing your property. You must sell
through Third Party Homesale Program in order for the payments not to be considered taxable income to you. In order to receive tax-effective home sale benefits, all homeowners ARE REQUIRED to work with the Firm’s designated Third Party Home
Sale Company. BEFORE YOU ARE ELIGIBLE TO RECEIVE THE HOME SALE BENEFIT, YOU MUST COMPLETE THE EMPLOYEE ENROLMENT AUTHORISATION FORM ATTACHED. PLEASE EMAIL THE FORM TO [email address redacted]. 
 Please be aware that there may be tax implications associated with selling, renting or keeping your house vacant. You are encouraged to consult your
personal tax advisor in order to familiarise yourself with these implications. 
 OR 
  

	 	•	 	 Lease Cancellation: The Firm will reimburse you for costs associated with the cancellation of a lease in London to a maximum of 2 months rent.

  

	 	•	 	 Benefits: You will continue to be covered under the UK benefits programme except that your medical insurance cover will be enhanced to provide
international cover during your assignment. You need to complete and return to the ibenefit centre, a CIGNA International enrolment form and full details are attached. For further information please refer to Morgan Stanley&i or contact the
ibenefit centre on [telephone number and email address redacted]. 

 Additional Transfer Provisions: 
  

	 	•	 	 Home Leave: You will be entitled to one “Home Leave” trip to the UK for each 12 month period in the assignment location. Generally this
should not be taken until 6 months in the new location. This includes round-trip airfare in business class from New York to London. Alternatively, you may elect to travel in economy (coach) in which case you will be entitled to two home leave trips
per 12 month period. If you do not take advantage of the home leave entitlement, you will not be paid in lieu of travel. 

  

 5 

	 	•	 	 Education Assistance: The Firm will pay for customary charges for tuition, fees, room and board for your children from 1 September before your child
reaches the age of five through secondary education. In addition, the Firm will provide assistance for tuition and registration fees for a pre-school programme. The Firm will reimburse pre-school costs in excess of your current expenditure. You
should liaise with your International Services contact for additional information on the above. 

  

	 	•	 	 Relocation Expenses: All relocation expenses must be submitted on a properly completed relocation expense form, copies of which are enclosed.
Completed forms should be submitted to the ‘HR Service Centre, Edinburgh’ for authorisation. Expenses are reimbursed in sterling by Accounts Payable by direct deposit to your UK bank account within approximately 14 working days of receipt
(bank account notification form enclosed which should be sent directly to Accounts Payable, GL/GC/01). 

 Incomplete expense
forms will be returned and employees are expected to retain copies of the form and receipts. Expenses should be submitted within 60 days or you will need to obtain Managing Director sign-off in addition to Human Resources authorisation. 

 

	 	•	 	 Repatriation: Upon completing your assignment you will need to contact [name redacted] in Human Resources in London in order that a repatriation
package can be prepared. 

 If you have any questions regarding your transfer, please contact [names, telephone numbers and email addresses
redacted]. 
  

			
	cc:	 	[names redacted]
		
	encs:	 	Change of Personal Details Form
		 	CIGNA International Enrolment Form
		 	European Tax Equalisation Policy
		 	Expatriate Assignment Checklist
		 	New York Orientation Memo
		 	Relocation Expense Forms
		 	US Immigration Data Sheet
		 	Worldwide Expatriate Policy

  

 6 

 MORGAN STANLEY 
 EUROPEAN TAX EQUALISATION POLICY 
  

									
	CONTENTS	  	
			
	I	  	GENERAL	  	1
			
	II	  	PROCEDURES	  	2
		  	A.	  	Exit/Entrance Interviews	  	2
		  	B.	  	Social Security	  	2
		  	C.	  	Actual and Hypothetical Home Country Tax Returns	  	2
		  	D.	  	Actual Host Country Tax Returns	  	3
		  	E.	  	Final Tax Equalisation Settlement	  	4
		  	F.	  	Advisory Allowance	  	4
			
	III	  	TAX EQUALISATION CALCULATION	  	5
		  	A.	  	Hypothetical Withholding	  	5
		  	B.	  	Income and Capital Subject to Tax Equalisation	  	5
		  	C.	  	Assumptions used in Tax Equalisation Calculations	  	6
		  		  	1.	  	Income Tax	  	6
		  		  	2.	  	Filing Status	  	6
		  		  	3.	  	Spousal Income	  	6
		  		  	4.	  	Joiners	  	7
		  		  	5.	  	Leavers	  	7
		  		  	6.	  	Joiners/Leavers Outside Income	  	7
		  		  	7.	  	International Medical Cover	  	7
		  		  	8.	  	Rental Income	  	7
		  		  	9.	  	Profit Share	  	7
			
	IV.	  	COUNTRY SPECIFIC INFORMATION	  	
		  	A.	  	United Kingdom	  	
			
	April 2002	  		  	

 MORGAN STANLEY GROUP 
 EUROPEAN TAX EQUALISATION POLICY 
  

	I.	GENERAL STATEMENTS 

  

	A.	The tax equalisation programme is designed to ensure that the home country tax positions of employees on temporary foreign assignments will be undisturbed. The Firm is responsible
for actual home country and host country taxes with the exception of inheritance tax and taxes related to extraordinary income such as sweepstakes or gambling winnings. In return, expatriates pay a hypothetical tax to the Firm. The expatriate
has the responsibility of paying hypothetical tax to the Firm even though no actual home country tax liability may exist. Hypothetical tax is assessed only on compensation, outside income, proceeds from sales of stock and other chargeable
capital gains the expatriate would have received had he remained in his home country. It is not assessed on assignment related items such as COLA, housing, utilities or home leave. Expatriates receive these benefits free of tax. Please see section
III B below for more details. 

  

	B.	The Firm has engaged a tax return preparer (details of which can be found in your assignment memo) to complete all necessary host country individual income Tax Returns. (All host
country Tax Returns must be completed by the designated tax return preparer; for preparation of home country Tax Returns see Section II C below). Reasonable fees associated with the preparation of these returns are met by the Firm.
Expatriates are expected to co-operate fully with Human Resources and the designated tax return preparer in the preparation of actual returns and tax equalisation calculations. This includes providing all necessary information to Human Resources and
the designated tax return preparer on a timely basis, prompt filing of completed home and host country Tax Returns, and prompt payment of any taxes due. 

 In cases in which late filing is due to an employee’s delinquency or negligence, they will be liable for the actual penalties and interest assessed by the relevant tax authorities against their actual tax
liability. 
 Any cost relating to the re-running of a tax equalisation calculation once a late organiser is received will be
the employee’s responsibility. The Firm will not be responsible for any incremental accounting fees, late filing or payment penalties or interest which result from an individual’s lateness in providing information to the designated tax
return provider or not filing on a timely basis. 
  

	C.	This policy is subject to modification to reflect changes in actual tax law, practice, Divisional and Firm policy. Any unique circumstances not envisioned by the programme will be
handled on an ad hoc basis by Human Resources. 

  

	D.	It may be possible to mitigate the Firm’s tax exposure if the expatriate is able to organise their financial affairs in a particular way. The expatriate will be expected to
co-operate with any such requests to reduce the Firm’s costs and will be protected from any consequential cost to themselves. 

  

 1 

	E.	Unless otherwise stated, this policy will be effective from April 1, 2002. 

 All questions regarding policy and procedure should be directed to [name redacted] or [name redacted] in London Human Resources. 
  

	II.	PROCEDURES 

  

	A.	Exit/Entrance Interviews: Once an expatriate assignment has been accepted, arrangements will be made for the employee to meet or have a conference call with London
International Services. This orientation briefing allows the expatriate to become familiar with the expatriate programme, including the tax equalisation policy. 

 Employees will be required to arrange and attend an “exit” interview with the designated tax return preparer at the offices of Morgan Stanley
prior to departure from the home location. At this meeting all expatriates will be required to complete appropriate income tax and social security forms, any tax refund claim forms, any social security filings, provide any necessary information
relevant to the tax equalisation calculation and will receive limited home country tax planning advice related to their overseas assignment. Upon return from the assignment a similar briefing will be held to complete entrance forms and to advise the
expatriate of their taxation responsibilities on returning to the home country. 
 The relocation allowance will not be paid until we
receive confirmation from the Firm’s designated tax preparer that you have met with them for the “exit interview” and all necessary filings have been satisfactorily completed. 
  

	B.	Social Security Coverage Continued While on Assignment 

 The expatriate will be subject to actual or hypothetical home country social security contributions for the duration of the overseas assignment. The expatriate’s contribution will be based on actual rates for
home country social security contributions in force each year. Where the home country has reciprocal arrangements with the assignment country, the Firm will maintain the employee in the home country social security to the extent possible. In
locations where no reciprocal arrangements exist, the Firm will be responsible for meeting all foreign social security costs during the assignment period. 
  

	C.	Actual and Hypothetical Home Country Individual Income Tax Returns 

 All expatriates must complete a home country tax organiser for the designated tax return preparer in each year of their overseas assignment. The designated tax return preparer will then prepare all of the necessary
home country tax returns that are required for the assignment period. 
 The Firm reserves the right to withhold payment of expatriate
benefits if the expatriate is delinquent in supplying the necessary information. 
  

 2 

 It is the responsibility of the expatriate to ensure that their own home country Tax Returns are filed on
a timely basis. Although actual taxes are the responsibility of the Firm, the expatriate is expected to pay to the home country tax authority any balance of tax due based on their final tax assessment. These payments will then be credited
against the expatriate’s hypothetical tax liability. As the Firm meets the expatriate’s actual home country taxes, any refund received from the tax authorities will be refunded to the Firm. 
 In cases in which late filing of the return or late payment of the tax raised by the assessment is due solely to an expatriate’s delinquency or
negligence, they will be liable for the actual penalties and interest assessed by the tax authorities. No credit for these interest and penalties will be given in the hypothetical computation. 
 As the late filing of any home country Tax Return or tax organiser results in a delayed hypothetical tax calculation, additional interest and penalties
will be levied against any “delayed” hypothetical tax balance due to the Firm at the applicable rates. 
  

	D.	Actual Host Country Individual Income Tax Return 

 Although actual host country taxes are paid directly by the Firm, all expatriates are required to file a host country individual income tax return. The preparation of the host return will be completed by the designated tax return preparer
in the assignment location. 
 In order to prepare the overseas return, the designated tax return preparer requires details of all income,
gains and losses, allowances and deductions. The Firm provides the designated tax return preparer with all necessary Morgan Stanley compensation and benefit information for each tax year. Shortly after the close of each assignment location tax year,
the designated tax return preparer sends a tax organiser to each expatriate. Since the Firm has already provided compensation and benefit information to the designated tax return preparer, the expatriate need only complete the sections in the
organiser which detail outside income, gains, losses, deductions and travelling time, etc. Since most jurisdictions operate on a calendar year, if your home or host country operates on a fiscal year basis, you will be required to provide this
information for both fiscal and calendar year periods. 
 As the late filing of income tax returns often results in the assessment of
penalties and interest, expatriates are required to return the tax organisers within four weeks of their receipt. 
  

 3 

	E.	Final Tax Equalisation Settlement 

 Once an
expatriate’s final hypothetical tax liability for a particular tax year is calculated, all tax payments made by the expatriate are compared to the final hypothetical liability in order to determine if the Firm has a balance due to the
expatriate or vice versa. Tax payments made by the expatriate include but are not limited to: 
  

	 	a.	Hypothetical tax withheld (as appropriate) from base salary, above base compensation and executive compensation. 

  

	 	b.	Actual home country taxes withheld from the expatriate prior to commencement of their overseas assignment or following their return, unless the withholding is refundable.

  

	 	c.	Any actual home or host income tax payments made by the expatriate as estimates or balances due with actual returns. 

  

	 	d.	Any actual tax payments made by spouse, subject to the stated limitations. 

  

	 	e.	Any overseas withholding on interest, dividends etc. 

 Any
payment due to the employee will be made with the first available payroll after agreement of the final computation. Typically this will be approximately 6 weeks. If the expatriate owes the Firm further hypothetical tax, the final liability should be
remitted within six weeks of agreement of the final computation. If payment is not received within six weeks, interest will be added to any balance due. 
  

	F.	Advisory Allowance 

 In addition to paying
for the preparation of home and host country Tax Returns in respect of all applicable years during the assignment, the Firm also provides the expatriate with advisory time to meet with the designated tax return preparers. The Firm will absorb the
cost of the expatriate’s consultation with the designated tax return preparer up to the following maximum time/cost limits in each year of assignment: 
  

			
	 Level
	  	 Time Allocation

	 Managing Director
	  	four hours
	 Principal
	  	three hours
	 All other Professional Staff
	  	two hours

 Note that any unused allocation cannot be carried forward from year to year nor can future
years’ entitlement be used currently. 
  

 4 

	III.	TAX EQUALISATION CALCULATION 

  

	A.	Hypothetical Tax Withholding 

 Each
expatriate receives as part of their compensation package a base salary, a Cost Of Living Allowance (COLA), an assumed home country housing deduction (when appropriate) and hypothetical tax and social security withholding. 
 The hypothetical withholding will not take into account the effect of any tax planning mechanisms, with the exception of monthly pension contributions
made via the home country payroll. Appropriate tax relief for these investments will be reflected in the final hypothetical tax liability. 
 Adjustments to hypothetical tax withholding will be allowed only for those expatriates who have substantiating evidence and are subject to review by International Services. 
  

	B.	Income and Capital Subject to Tax Equalisation 

 The tax equalisation calculation is prepared by the designated tax return preparer. Expatriates are tax equalised up to and including the tax year of repatriation or termination. In addition, tax equalisation may extend to subsequent
tax years to the extent that those years are affected by items of income, deduction or credit relating to the expatriate assignment. The tax equalisation calculation is essentially a hypothetical or dummy home country return in which tax is
calculated and assessed only on those amounts an employee would have received had they remained in the home location. 
 Listed below are the
types of income which are generally subject to hypothetical tax, as well as those types of income which are not subject to hypothetical tax. The Firm pays the actual home and host country taxes on both types of income: 
  

			
	 Income and Capital Subject To
 Hypothetical
Tax Includes But
 Is Not Limited To:
	  	 Income Not Subject To
 Hypothetical Tax:

		
	 MS Base Salary
	  	Moving Expenses
		
	 MS Bonus/Executive Compensation Payments
	  	COLA
		
	 MS Termination Payments
	  	Housing Allowance
		
	 MS Commission and Pool Payments
	  	Utilities Payments
		
	 Investment Income (home and host)
	  	Home Leave
		
	 Spousal Income (to the extent tax equalised)
	  	Social Club
		
	 Income and Capital gain sums derived
	  	Tuition Reimbursement
		
	 from stock or other property
	  	Language Lessons
		
	 Cash Payments of Profit Sharing
	  	Furniture Rental Allowance
		
	 Domestic Medical Insurance Benefit
	  	International Medical Insurance
		
	 Mortgage Allowance (if applicable)
	  	Foreign Tax Payments
		
	 Remittance of Income and Chargeable Gains
	  	Relocation Allowance
		
		  	Visa/Immigration costs
		
		  	Car Loss reimbursement

  

 5 

	C.	Assumptions Used in Tax Equalisation Calculations 

 The assumptions listed below are used in the preparation of the tax equalisation calculation: 
  

	 	1.	Income Tax - Hypothetical income taxes are determined by using the applicable statutory home country tax rates for the year in question. 

  

	 	2.	Filing Status - Your tax equalisation calculation will be prepared using your actual filing status. 

 Certain overseas countries require returns to be filed on a joint basis. In such cases the expatriate may elect to include spousal income in the
equalisation process within the limits set out below. If the expatriate does so elect, hypothetical tax will be assessed on the spousal income and the Firm will pay host country taxes on all equalised income. If the expatriate does not so elect, no
hypothetical tax will be assessed on the spousal income, and the actual liability in the overseas location will be apportioned between the Firm and the individual in accordance with the ratio of equalised to non-equalised income (gross income before
deductions). 
 If the host country does not require joint returns or filing as a single person is advantageous, spousal income will not be
equalised unless the expatriate so elects. 
 The election once made for a particular year is irrevocable but may be revoked in subsequent
years. Should significant changes in personal circumstances occur, the election may be reviewed by International Services at the expatriate’s request. 
  

	 	3.	Spousal Income - There is a limit on the amount of spousal income the Firm will tax equalise for each tax year. The limit is £30,000/EUR 50,000/CHF 70,000 or 40% of the
expatriate’s normal total Morgan Stanley cash compensation, which ever is greater, with an overall limit of £70,000/EUR 110,000/CHF 165,000. Hypothetical tax will be assessed on this amount, and actual taxes paid or accrued by the spouse,
subject to the above limitations, will be credited against the expatriate’s final hypothetical tax liability. In situations where a spouse of an expatriate works for another firm that offers expatriate benefits, Morgan Stanley will co-ordinate
its benefits, including tax equalisation, with those of the other firm to ensure that the family unit is compensated for the additional costs it incurs, but does not receive any windfall benefit. 

  

 6 

	 	4.	Joiners - If the employee joins Morgan Stanley in the home country in the same tax year as they are expatriated then the tax rates and allowances used in the hypothetical
computation for that year will be pro-rated from the date of leaving the previous home country employer. For example: 

  

	 	a.	If the employee has not previously worked in the home country, then they will receive the full year’s rates and allowances. 

  

	 	b.	If the employee leaves their previous home country employer and immediately joins Morgan Stanley, the rates and allowances will be reduced according to the date of joining.

  

	 	c.	If the employee leaves their previous home country employer and has a period of unemployment before joining Morgan Stanley, the rates and allowances will be apportioned from the
first day of that unemployment. 

  

	 	5.	Leavers - If the expatriate leaves Morgan Stanley during the year, then the rates and allowances for that year will be pro-rated to the date of termination, unless they have no home
country-taxable income in the remainder of the home location tax year in which case no pro-ration of the rates and allowances will be made. 

 For expatriates who terminate employment in a host location and do not return to the home country, the Firm will be responsible only for the host taxes that would have been due if the expatriate had
returned to the home location upon termination. Expatriates should be aware that this can result in a significant differential in some jurisdictions. 
  

	 	6.	Joiners/Leavers Outside Income – If the employee joins and/or leaves the Firm during the year, then outside income will only be tax equalised to the extent that it has arisen
during the period of their employment with the Firm. 

  

	 	7.	International Medical Cover – Medical benefits will be provided to an expatriate during the overseas assignment through the International Medical Program detailed in your
expatriate package. The taxable benefit of their home country medical plan will also be included in the expatriate’s taxable income for home country hypothetical tax purposes. 

  

	 	8.	Rental Income – Employees are encouraged to maintain their home country property and rent it out during their expatriate assignment. Any net rental income will be included in
the tax equalisation computation. 

  

	 	9.	Profit Share – You will continue to receive profit share whilst on overseas assignment calculated under your home country terms and conditions. 

  

 7 

	 	10.	US Citizens/Greencard holders – The Firm will meet the cost of US Federal (and state where applicable) tax returns for the duration of the assignment via the designated tax
return preparer. You will be tax equalised to the US tax position that would have prevailed had you remained in the home location. The designated tax return preparer will prepare a hypothetical US tax calculation including the hypothetical home
country tax liability and you will be responsible for any hypothetical US tax due on this calculation. The Firm will meet any actual US tax costs arising. 

  

 8 

 APPENDIX A: UK SPECIFIC POLICIES 
  

	A:	UK NATIONAL INSURANCE 

 Where actual national
insurance contributions are no longer being made, the Firm will contribute to the UK/Offshore pension plan an amount equal to the voluntary (class 3) national insurance contribution. This contribution is the amount that would otherwise be paid to
the UK Contributions Agency to make that tax year a qualifying year for UK state pension purposes. 
 If you do not have a national insurance
number, you must make arrangements to apply for one prior to your departure from the UK. A memo outlining the procedure for obtaining a national insurance number will be provided with your expatriate assignment package. If the Firm is
unable to obtain continuing coverage under the UK social security system as a result of the expatriate’s failure to apply for a national insurance number, the expatriate will be responsible for any incremental employer and employee social
security costs which arise in the assignment location. 
  

	B:	UK HYPOTHETICAL TAX WITHHOLDING 

 Upon actually
leaving the home country for the assignment location, if the assignment is likely to extend to at least one UK tax year, most expatriates will provisionally cease to have any further UK tax liability on their earned compensation. Although no actual
UK tax will then be withheld on base and above base compensation, the Firm will withhold hypothetical tax. If, however, an actual UK liability exists during the assignment due to interest, dividends, rental income, etc arising in the UK, the law
requires that a UK tax return be filed on a timely basis. 
 Even if the expatriate has no actual UK tax liability and no actual UK Tax Return
is therefore required, the expatriate is still responsible for the payment of hypothetical taxes. The Firm provides the designated tax return preparer with all necessary Morgan Stanley compensation and benefits information for each tax year. Each
expatriate must supply to the designated tax return preparer all other information pertinent to the calculation of the hypothetical tax. An organiser will be sent to the expatriate shortly after the end of the tax year and it is required to be
returned within 4 weeks of receipt. 
 The hypothetical tax withholding on base salary is determined by a number of factors, including the
level of base salary and the current tax year’s hypothetical PAYE tax code. Tax on above-base compensation will also be withheld at the employee’s appropriate UK marginal tax rate. The rates and allowances will be reviewed each April in
line with any Budget changes, or at any other time if an interim tax rate change is effected. 
  

 9 

	C:	DUAL CONTRACTS OF EMPLOYMENT 

 Employees having dual
contracts of employment prior to their foreign assignment will be tax equalised as if the dual contract continued to be in effect (subject to the provisos outlined in the below paragraph). The compensation related to the non-UK contract will be
calculated for hypothetical tax purposes by using the percentage of business days the employee spent working for Morgan Stanley under the non-UK contract during the Firm’s year (on an annualised basis) immediately prior to the year of their
foreign assignment. 
 In calculating the hypothetical off shore percentage, please note the following two provisos. (i) Any business
days spent working in the pending assignment location city will not be included for the purposes of the hypothetical dual contract split. (ii) The prior year actual dual contract split will not be used for calculating the hypothetical
split if that year is deemed to be unrepresentative of the employee’s typical travel pattern. In all cases, the proportion to be treated as paid under the non-UK contract will be determined by Human Resources. 
 Payments of base salary made under both the UK and the non-UK contracts will be included in the spendable income computation for Cost of Living Allowance
purposes and in the calculation for the hypothetical tax deduction for that computation, but only the UK base salary will be included in the calculation of the hypothetical tax to be actually deducted in arriving at net income. Dual contracts will
be used in tax equalisation only as long as dual contracts remain effective for UK income tax purposes and valid under UK tax law. The benefit of the current dual employment split is based on an agreement between Morgan Stanley and the Inland
Revenue. To the extent that the agreement becomes invalid or is replaced by a new agreement by either party, then the hypothetical split will be adjusted appropriately. 
  

	D:	RELIEF FOR OVERSEAS WORKDAYS 

 Employees with a
history of claiming relief on their UK tax returns for workdays spent outside of the UK will continue to be equalised to this position whilst on assignment; subject to the following: 
  

	 	1.	The employee must provide International Services with documentation supporting prior year overseas workdays claims (eg: copy of UK tax return). 

  

	 	2.	Hypothetical overseas work days relief will be limited to the actual percentage relief claimed on prior year tax returns, excluding any days spent working in the pending
assignment location city. 

  

	 	3.	Hypothetical relief for overseas workdays will only be included in the hypothetical tax calculation for as long as the employee would have retained an entitlement had they remained
in the UK, and as long as the deduction remains valid under UK law. 

  

 10 

	E.	ALLOWANCES AND DEDUCTIONS 

 Certain allowances and
deductions allowed on the expatriate’s home Tax Return immediately prior to their foreign assignment may be allowed on the hypothetical return. These allowances and deductions include but are not limited to: 
  

	 	a.	The single person’s allowance. 

  

	 	b.	Charitable contributions to the extent they have been made in the past and are still legally required to be made under a deed of covenant or Give As You Earn/ Gift Aid.

  

	 	c.	Additional monthly voluntary pension contributions to the extent that they have been made in the past into the company pension scheme. 

  

	 	d.	Waivers into the UK or offshore pension plan only to the extent they have been made in prior years. The maximum contribution subject to tax equalisation will be based on the same
percentage waived from the last bonus paid prior to the assignment commencing. 

  

	F.	MORTGAGE ALLOWANCE 

 If the expatriate owns a
principal residence in the UK and is currently in receipt of the mortgage allowance, this allowance will continue to be provided to the expatriate subject to the appropriate limits detailed in the mortgage allowance scheme. The allowance will be
subject to UK hypothetical tax when the tax equalisation calculation is prepared, but no withholding will be made during the year. 
  

	G.	DOMICILE 

 UK expatriates who have been ruled not
domiciled in the UK by Inland Revenue will be tax equalised to that status, ie. offshore investment income will not be subject to UK hypothetical tax unless remitted to the UK. 
  

	H.	RESTRICTED INVESTMENTS 

 The Firm recognises that as
a result of the expatriate assignment the individual may be prevented from participating in UK tax efficient income schemes such as an Individual Savings Account (ISA). To compensate the individual for this, the Firm will exempt from hypothetical
tax the first £900 of an individual’s outside investment income (excluding capital gain income) This will be expressed in the form of a deduction against investment income, limited to the lower of the investment income or £900.

  

 11 

	I.	PROFIT SHARE 

 As a result of the expatriate
assignment, an individual’s participation in the UK profit sharing plan may be restricted to less than the full amount of entitlement. 
 Where an individual elects participation in the scheme, then no hypothetical tax will be charged on this amount, which would have been utilised to purchase shares had the individual remained in the UK. 
 Where no election to participate is made, the entire amount of profit sharing will be subject to hypothetical tax. 
 The maximum amount which can be allocated to shares cannot exceed £8,000. Anything paid in excess of this threshold will be paid as cash and subject
to hypothetical tax. 
  

 12Form of Award Certificate under  the 2006 Notional Leveraged Co-Investment Plan

 EXHIBIT 10.7 
 MORGAN STANLEY 
 2006 NOTIONAL LEVERAGED
CO-INVESTMENT PLAN 
 [FISCAL YEAR] AWARD CERTIFICATE 
  

 TABLE OF CONTENTS FOR AWARD
CERTIFICATE 
  

					
	1.	  	Your award generally	  	2
	2.	  	Vesting schedule	  	3
	3.	  	Distributions	  	3
	4.	  	Death, Disability and Full Career Retirement	  	3
	5.	  	Involuntary termination by the Firm	  	4
	6.	  	Change in Control and Change in Ownership	  	4
	7.	  	Termination of Employment and cancellation of Plan Interest	  	4
	8.	  	Satisfaction of obligations	  	7
	9.	  	Designation of a beneficiary	  	7
	10.	  	No entitlements	  	7
	11.	  	Consents under local law	  	8
	12.	  	Award modification	  	8
	13.	  	Severability	  	8
	14.	  	Incorporation of the Plan document	  	9
	15.	  	Governing law	  	9
	16.	  	Defined terms	  	9

  

 MORGAN STANLEY 
 2006 NOTIONAL LEVERAGED CO-INVESTMENT PLAN 
 AWARD CERTIFICATE 
 FISCAL YEAR [    ] 
 Morgan Stanley has awarded you an interest in the
Morgan Stanley 2006 Notional Leveraged Co-Investment Plan (the “Plan”) as part of your discretionary long-term incentive compensation for services provided during Fiscal Year [    ] and as an incentive for
you to continue to remain in Employment and provide services to the Firm through the Scheduled Vesting Dates, as provided in this award certificate (the “Award Certificate”). This Award Certificate sets forth the general
terms and conditions of your Fiscal Year [    ] award under the Plan. The initial value of your Fiscal Year [    ] award (your “Allocation”) has been communicated to you independently.

 If you are employed outside the United States, you have also received an “International Supplement” that contains
supplemental terms and conditions for your Fiscal Year [    ] award. This Award Certificate should be read in conjunction with the International Supplement, if applicable, and the Plan document in order for you to understand the
terms and conditions of your Fiscal Year [    ] award. 
 Your Fiscal Year [    ] award is made
pursuant to the Plan. References to “Allocation” and “Plan Interest” in this Award Certificate mean only your Allocation and Plan Interest related to your Fiscal Year [    ] award, and the terms and conditions
herein apply only to such award. If you receive any other award under the Plan, it will be governed by the terms and conditions of the applicable award documentation, which may be different from those herein. 
 The purposes of the Fiscal Year [    ] award are, among other things, to enhance the portion of any discretionary Above Base
Compensation that would otherwise be awarded to you in the form of Morgan Stanley equity compensation or other mandatory long-term incentive compensation and to facilitate the allocation of such compensation to the notional investment opportunities
afforded by the Plan, as well as to reward you for your continued employment and service to the Firm in the future, to protect the Firm’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer
relationships, and other legitimate business interests, and to ensure an orderly transition of responsibilities. In view of these purposes, you will earn each portion of your Plan Interest only if you (1) remain in continuous Employment through
the applicable Scheduled Vesting Date and (2) do not engage in any activity that is a cancellation event set forth in Section 7(c) below. Therefore, even if your Plan Interest has vested, you will have no right to your Plan
Interest if a cancellation event 

 
occurs. You will be required to provide Morgan Stanley with such written certification or other evidence as Morgan Stanley deems appropriate, from time to
time in its sole discretion, to confirm that no cancellation event has occurred. If you fail to provide such certification or evidence, Morgan Stanley will cancel your Plan Interest. 
 Section 409A, which was adopted pursuant to the American Jobs Creation Act of 2004, imposes rules relating to the taxation of deferred compensation,
including your Fiscal Year [    ] award. The Firm reserves the right to modify the terms of your Fiscal Year [    ] award, including, without limitation, the distribution and other payment provisions
applicable to your Plan Interest, to the extent necessary or advisable to comply with Section 409A. 
 Capitalized terms used in this
Award Certificate that are not defined in the text have the meanings set forth in Section 16 below. Capitalized terms used in this Award Certificate that are not defined in the text or in Section 16 below have the meanings set forth in the
Plan. 
  

	1.	Your award generally. 

 (a)
Allocation and Account. Your Allocation is credited to an Account as of the Date of the Award. Your Allocation (or portion thereof) will accrue notional interest at the Participant Applicable Rate from the Date of the Award:
(i) until the Firm notionally invests your Allocation (or such portion thereof) in one or more Notional Plan Investments, or (ii) if the Firm does not notionally invest your Allocation (or such portion thereof) in one or more Notional Plan
Investments, until the Scheduled Distribution Date. 
 (b) Notional
Advance. At the time that your Allocation (or portion thereof) is notionally invested in a Notional Plan Investment, a Notional Advance in an amount equal to your Allocation (or such portion thereof) multiplied by two will be added to
your Allocation (or such portion thereof) for purposes of your notional investment in such Notional Plan Investment.1 
 Each Notional Advance will accrue notional interest at the Morgan Stanley Applicable Rate during the period that the Notional Advance is deemed to be
outstanding (i.e., from the date of the addition of the Notional Advance to your Allocation (or portion thereof) until and to the extent the Notional Advance is subsequently satisfied in accordance with the Plan). 
 (c) Notional Plan Investments. Your Account will initially be notionally invested approximately [insert names of Notional Plan
Investments and approximate percentage allocations relating thereto]. You will have no discretion to notionally re-invest your Account. 
  

	 1
	 The notional advance presented in this form of Award Certificate is indicative. The notional advance applicable to
awards may vary. 

  

 2 

	2.	Vesting schedule. 

 Your Plan Interest will vest according to the following schedule: (i) 50% of your Plan Interest will vest on the First Scheduled Vesting Date, and (ii) the remaining portion of your Plan Interest will vest on the
Second Scheduled Vesting Date.2 Except as otherwise provided in this Award Certificate, each portion of your Plan Interest will vest only if you
continue to provide future services to the Firm by remaining in continuous Employment through the applicable Scheduled Vesting Date and providing value added services to the Firm during this time frame. The special vesting terms set forth in
Sections 4, 5 and 6 of this Award Certificate apply (i) if your Employment terminates by reason of your death or Disability, (ii) upon your Full Career Retirement, (iii) if the Firm terminates your employment in an involuntary termination under the
circumstances described in Section 5 below, or (iv) upon a Change in Control or a Change in Ownership. Your vested Plan Interest is subject to the cancellation provisions set forth in this Award Certificate and the withholding provisions set forth
in the Plan and in this Award Certificate. 
  

	3.	Distributions. 

 Except as otherwise provided
in this Award Certificate, distributions in respect of your share of any Proceeds will be made to you on each applicable Distribution Date in accordance with Section 10 of the Plan and subject to Section 11 of the Plan. 
  

	4.	Death, Disability and Full Career Retirement. 

 The following special vesting, distribution and other payment terms apply to your Plan Interest: 
 (a) Death during
Employment. If your Employment terminates due to death, the unvested portion of your Plan Interest will vest in full on the date your Employment terminates. The fair value (determined by reference to the value that the Firm’s books and
records show as of the most recently concluded Fiscal Quarter end preceding the date of death) of your vested Plan Interest will be distributed to the beneficiary you have designated pursuant to Section 9 or the legal representative of your
estate, as applicable, as soon as administratively practicable after Morgan Stanley receives appropriate notice of your death. 
 (b)
Death after termination of Employment. If you die after the termination of your Employment, the fair value (determined by reference to the value that the Firm’s books and records show as of the most recently concluded Fiscal
Quarter end preceding the date of death) of the vested portion of your Plan Interest that you held at the time of your death will be distributed to the beneficiary you have designated pursuant to Section 9 or the legal representative of your
estate, as applicable, as soon as administratively practicable after Morgan Stanley receives appropriate notice of your death. 
  

	 2
	 The vesting schedule presented in this form of Award Certificate is indicative. The vesting schedule applicable to
awards may vary. 

  

 3 

 (c) Disability. If your Employment terminates due to Disability, the unvested
portion of your Plan Interest will vest in full on the date your Employment terminates. Distributions in respect of your share of any Proceeds will be made to you on each applicable Distribution Date in accordance with Section 10 of the Plan
and subject to Section 11 of the Plan. The cancellation provisions set forth in Section 7(c) below will continue to apply until the Scheduled Distribution Date. 
 (d) Full Career Retirement. If your Employment terminates in a Full Career Retirement, the unvested portion of your Plan Interest will vest in full on the date your Employment terminates.
Distributions in respect of your share of any Proceeds will be made to you on each applicable Distribution Date in accordance with Section 10 of the Plan and subject to Section 11 of the Plan. The cancellation provisions set forth in
Section 7(c) will continue to apply until the Scheduled Distribution Date. 
  

	5.	Involuntary termination by the Firm. 

 If the
Firm terminates your employment under circumstances not involving Cause or any other cancellation event described in Section 7(c) below, the unvested portion of your Plan Interest will vest in full on the date your employment with the Firm
terminates; provided that you sign an agreement and release satisfactory to the Firm. Distributions in respect of your share of any Proceeds will be made to you on each applicable Distribution Date in accordance with Section 10 of the
Plan and subject to Section 11 of the Plan. The cancellation provisions set forth in Section 7(c) below will continue to apply until the Scheduled Distribution Date. 
  

	6.	Change in Control and Change in Ownership. 

 If there is a Change in Control or a Change in Ownership, the unvested portion of your Plan Interest will immediately vest. If the Change in Control is not also a Change in Ownership, distributions in respect of your share of any Proceeds
will be made to you on each applicable Distribution Date in accordance with Section 10 of the Plan and subject to Section 11 of the Plan. The cancellation provisions set forth in Section 7(c) below will continue to apply until the
Scheduled Distribution Date. 
 The fair value (determined by reference to the value that the Firm’s books and records show as of the
most recently concluded Fiscal Quarter end preceding the effective date of the Change in Ownership) of your vested Plan Interest will be distributed as soon as administratively practicable after a Change in Ownership. The cancellation provisions set
forth in Section 7(c) below will no longer apply after a Change in Ownership. 
  

	7.	Termination of Employment and cancellation of Plan Interest. 

 (a) Cancellation of unvested Plan Interest. Your unvested Plan 

  

 4 

 
Interest will be canceled if your Employment terminates for any reason other than under the circumstances set forth in this Award Certificate for death,
Disability, a Full Career Retirement or an involuntary termination by the Firm described in Section 5 above. 
 (b) General
treatment of vested Plan Interest. Except as otherwise provided in this Award Certificate, distributions in respect of your share of any Proceeds related to your vested Plan Interest will be made to you on each applicable Distribution Date
in accordance with Section 10 of the Plan and subject to Section 11 of the Plan. The cancellation provisions set forth in Section 7(c) below will continue to apply until the Scheduled Distribution Date. 
 (c) Cancellation of Plan Interest under certain circumstances. The cancellation events set forth in this Section 7(c)
are designed, among other things, to protect the Firm’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests, and to ensure an orderly
transition of responsibilities. This Section 7(c) shall apply notwithstanding any other terms of this Award Certificate (except where sections in this Award Certificate specifically provide that the cancellation events set forth in this
Section 7(c) no longer apply). 
 Your Plan Interest, even if vested, is not earned until the Scheduled Distribution Date and will be
canceled prior to the Scheduled Distribution Date in any of the following circumstances: 
 (1) Competitive Activity. If you
engage in Competitive Activity following the voluntary termination of your Employment in a termination that satisfies the definition of a Full Career Retirement, and before the Scheduled Distribution Date, the following shall apply: 
 (i) If your Competitive Activity occurs before the First Scheduled Vesting Date, then your entire Plan Interest will be canceled
immediately. 
 (ii) If your Competitive Activity occurs on or after the First Scheduled Vesting Date, then: 
  

	 	(A)	50% of your Plan Interest will be canceled immediately; and 

  

	 	(B)	Distributions in respect of your share of any Proceeds related to the remaining portion of your Plan Interest will be made to you on each applicable Distribution Date in accordance
with Section 10 of the Plan, subject to all other terms and conditions set forth in this Award Certificate and the Plan (including, without limitation, the cancellation provisions of Section 7(c)(2) below, Section 11 of the Plan and
the withholding provisions of the Plan and Section 8 below). 

  

 5 

 (2) Other Events. If any of the following events occur at any time prior to the Scheduled
Distribution Date, your entire Plan Interest (whether or not vested) will be canceled immediately: 
 (i) Your Employment is
terminated for Cause; 
 (ii) Following the termination of your Employment, the Firm determines that your Employment could
have been terminated for Cause (for these purposes, “Cause” will be determined without giving consideration to any “cure” period included in the definition of “Cause”); 
 (iii) You disclose Proprietary Information to any unauthorized person outside the Firm, or use or attempt to use Proprietary Information
other than in connection with the business of the Firm, where such disclosure, use or attempt to use may be adverse to the interests of the Firm; or you fail to comply with your obligations (either during or after your Employment) under the
Firm’s Code of Conduct (and any applicable supplements) or otherwise existing between you and the Firm, relating to an assignment, procurement or enforcement of rights in Proprietary Information; 
 (iv) You engage in a Wrongful Solicitation; 
 (v) You make any Unauthorized Comments; or 
 (vi) You resign from your employment with the
Firm without having provided the Firm prior written notice of your resignation at least: 
  

	 	(A)	180 days before the date on which your employment with the Firm terminates if you are a member of the Management Committee at the time of notice of your resignation;

  

	 	(B)	90 days before the date on which your employment with the Firm terminates if clause (A) of this Section 7(c)(2)(vi) does not apply to you and you are a Managing Director
(or equivalent title) at the time of notice of your resignation; 

  

	 	(C)	60 days before the date on which your employment with the Firm terminates if you are an Executive Director (or equivalent title) at the time of notice of your resignation; and

  

 6 

	 	(D)	30 days before the date on which your employment with the Firm terminates if none of clauses (A) through (C) of this Section 7(c)(2)(vi) apply to you at the time of
notice of your resignation. 

  

	8.	Satisfaction of obligations. 

 Notwithstanding any other provision of this Award Certificate, Morgan Stanley may, in its sole discretion, take various actions affecting your Plan Interest in order to collect amounts sufficient to satisfy any obligation that you owe to
the Firm and any tax or other withholding obligations. Accordingly, Morgan Stanley may withhold from or offset against any distribution or other payment to which you may be entitled under the Plan an amount sufficient to satisfy any obligation that
you owe to the Firm and any tax or other withholding obligation. 
 Morgan Stanley’s determination of the amount that you owe the Firm
shall be conclusive. 
  

	9.	Designation of a beneficiary. 

 You may make
a written designation of beneficiary or beneficiaries to receive all or part of the amounts to be distributed or paid in respect of your Plan Interest in the event of your death. To make a beneficiary designation, you must complete and file the form
attached hereto as Appendix A with the Executive Compensation Department. Your share of any Proceeds that become payable upon your death, and as to which a designation of beneficiary is not in effect, will be distributed to your estate.

 You may replace or revoke your beneficiary designation at any time. If there is any question as to the legal right of any beneficiary to
receive amounts to be distributed or paid in respect of your Plan Interest in the event of your death, Morgan Stanley may determine in its sole discretion to distribute the amounts in question to your estate. Morgan Stanley’s determination
shall be binding and conclusive on all persons and it will have no further liability to anyone with respect to such amounts. 
  

	10.	No entitlements. 

 (a) No right
to continued Employment. This Fiscal Year [    ] award is not an employment agreement, and nothing in this Award Certificate, the International Supplement, if applicable, or the Plan shall alter your status as an
“at-will” employee of the Firm or your employment status at a Related Employer. None of this Award Certificate, the International Supplement, if applicable, or the Plan shall be construed as guaranteeing your employment by the Firm or a
Related Employer, or as giving you any right to continue in the employ of the Firm or a Related Employer, during any period (including without limitation the period between the Date of the Award and any of the First Scheduled Vesting Date, the
Second Scheduled Vesting Date or any Distribution Date, or any portion of any of these periods), nor shall they be construed as giving you any right to be reemployed by the Firm or a Related Employer following any termination of Employment.

  

 7 

 (b) No right to future awards. This award and all other awards made pursuant to the
Plan are discretionary. This award does not confer on you any right or entitlement to receive another award under the Plan or any other award at any time in the future or in respect of any future period. 
 (c) No effect on future employment compensation. Morgan Stanley has made this award to you in its sole discretion. This award does
not confer on you any right or entitlement to receive compensation in any specific amount for any future Fiscal Year, nor does it diminish in any way the Firm’s discretion to determine the amount, if any, of your compensation. In addition, this
award is not part of your base salary or wages and will not be taken into account in determining any other employment-related rights you may have, such as rights to pension or severance pay. 
  

	11.	Consents under local law. 

 Your award is
conditioned upon the making of all filings and the receipt of all consents or authorizations required to comply with, or required to be obtained under, applicable local law. 
  

	12.	Award modification. 

 Morgan Stanley reserves
the right to modify or amend unilaterally the terms and conditions of your Fiscal Year [    ] award, without first asking your consent, or to waive any terms and conditions that operate in favor of Morgan Stanley. These
amendments may include (but are not limited to) changes that Morgan Stanley considers necessary or advisable as a result of changes in any, or the adoption of any new, Legal Requirement. Morgan Stanley may not modify your Fiscal Year
[    ] award in a manner that would materially impair your rights in your Fiscal Year [    ] award without your consent; provided, however, that Morgan Stanley may, without your consent, amend or
modify your Fiscal Year [    ] award in any manner that Morgan Stanley considers necessary or advisable to comply with any Legal Requirement or to ensure that your Fiscal Year [    ] award is not subject to
United States federal, state or local income tax or any equivalent taxes in territories outside the United States prior to payment or distribution. Morgan Stanley will notify you of any amendment of your Fiscal Year [    ] award
that affects your rights. Any amendment or waiver of a provision of this Award Certificate (other than any amendment or waiver applicable to all recipients generally), which amendment or waiver operates in your favor or confers a benefit on you,
must be in writing and signed by the Global Head of Human Resources or the Chief Administrative Officer (or if such positions no longer exist, by the holder of an equivalent position) to be effective. 
  

	13.	Severability. 

 In the event Morgan Stanley
determines that any provision of this Award Certificate would cause you to be in constructive receipt for United States federal or state 

  

 8 

 
income tax purposes of any portion of your award, then such provision will be considered null and void and this Award Certificate will be construed and
enforced as if the provision had not been included in this Award Certificate as of the date such provision was determined to cause you to be in constructive receipt of any portion of your award. 
  

	14.	Incorporation of the Plan document. 

 The
Plan document (including, without limitation, Sections 5(e) and 8 of the Plan) is incorporated in this Award Certificate by reference. In the event of any conflict or inconsistency between the Plan document and this Award Certificate, the Plan
document will govern and the Award Certificate will be interpreted to minimize or eliminate any such conflict or inconsistency; provided, however, that to the extent this Award Certificate expressly provides that a definition set forth
in Section 2 of the Plan is modified by a definition set forth in this Award Certificate, such modified definition, as set forth in this Award Certificate, will govern. 
  

	15.	Governing law. 

 This Award Certificate and
the related legal relations between you and Morgan Stanley will be governed by and construed in accordance with the laws of the State of New York, without regard to any conflicts or choice of law, rule or principle that might otherwise refer the
interpretation of the award to the substantive law of another jurisdiction. 
  

	16.	Defined terms. 

 For purposes of this Award
Certificate, the following terms shall have the meanings set forth below: 
 (a) A “Cancellation Event” means
any cancellation event set forth in Section 7(c) above. 
 (b) “Cause” means: 
 (1) any act or omission which constitutes a breach of your obligations to the Firm or your failure or refusal to perform
satisfactorily any duties reasonably required of you, which breach, failure or refusal (if susceptible to cure) is not corrected (other than failure to correct by reason of your incapacity due to physical or mental illness) within ten
(10) business days after written notification thereof to you by the Firm; 
 (2) your commission of any dishonest
or fraudulent act, or any other act or omission, which has caused or may reasonably be expected to cause injury to the interest or business reputation of the Firm; or 
 (3) your violation of any securities, commodities or banking laws, any rules or regulations issued pursuant to such laws, or rules
or regulations of any securities or commodities exchange or association of which the Firm is a member or of any policy of the Firm relating to compliance with any of the foregoing. 
  

 9 

 (c) A “Change in Control” shall be deemed to have occurred if any of the
following conditions shall have been satisfied: 
 (1) any person (as defined in Section 3(a)(9) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), as such term is modified in Sections 13(d) and 14(d) of the Exchange Act), other than (i) any employee plan established by Morgan Stanley or any of its Subsidiaries,
(ii) any group of employees holding shares subject to agreements relating to the voting of such shares, (iii) Morgan Stanley or any of its affiliates (as defined in Rule 12b-2 promulgated under the Exchange Act), (iv) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (v) a corporation owned, directly or indirectly, by stockholders of Morgan Stanley in substantially the same proportions as their ownership of Morgan Stanley, is or
becomes the beneficial owner, directly or indirectly, of securities of Morgan Stanley (not including in the securities beneficially owned by such person any securities acquired directly from Morgan Stanley or its affiliates other than in connection
with the acquisition by Morgan Stanley or its affiliates of a business) representing 25% or more of either the total fair market value or total voting power of the stock of Morgan Stanley; 
 (2) a change in the composition of the Board such that individuals who, as of the Date of the Award, constitute the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a member of the Board subsequent to the Date of the Award whose election,
or nomination for election by Morgan Stanley’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board; 
 (3) the consummation of a merger or
consolidation of Morgan Stanley with any other corporation or other entity, or the issuance of voting securities in connection with a merger or consolidation of Morgan Stanley (or any direct or indirect subsidiary of Morgan Stanley) pursuant to
applicable stock exchange requirements, other than (A) a merger or consolidation which results in the voting securities of Morgan Stanley outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of Morgan Stanley or any of its Subsidiaries, at
least 66-2/3% of the combined voting power of the voting securities of Morgan Stanley or such surviving entity or any parent thereof outstanding immediately after such 

  

 10 

 
merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of Morgan Stanley (or similar transaction) in which
no person (determined pursuant to clause (1) above) is or becomes the beneficial owner, directly or indirectly, of securities of Morgan Stanley (not including in the securities beneficially owned by such person any securities acquired directly
from Morgan Stanley or its affiliates other than in connection with the acquisition by Morgan Stanley or its affiliates of a business) representing 25% or more of either the then outstanding shares of Morgan Stanley common stock or the combined
voting power of Morgan Stanley’s then outstanding voting securities; or 
 (4) the stockholders of Morgan Stanley
approve a plan of complete liquidation of Morgan Stanley or an agreement for the sale or disposition by Morgan Stanley of all or substantially all of Morgan Stanley’s assets, other than a sale or disposition by Morgan Stanley of all or
substantially all of Morgan Stanley’s assets to an entity, at least 66-2/3% of the combined voting power of the voting securities of which are owned by persons in substantially the same proportions as their ownership of Morgan Stanley
immediately prior to such sale. 
 Notwithstanding the foregoing, no Change in Control shall be deemed to have occurred if there is
consummated any transaction or series of integrated transactions immediately following which the record holders of Morgan Stanley common stock immediately prior to such transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns substantially all of the assets of Morgan Stanley immediately prior to such transaction or series of transactions. 
 (d) A “Change in Ownership” shall be deemed to have occurred if any of the following conditions shall have been satisfied: 
 (1) any one person or more than one person acting as a group (as determined under Section 409A), other than (i) any
employee plan established by Morgan Stanley or any of its Subsidiaries, (ii) any group of employees holding shares subject to agreements relating to the voting of such shares, (iii) Morgan Stanley or any of its affiliates (as defined in
Rule 12b-2 promulgated under the Exchange Act), (iv) an underwriter temporarily holding securities pursuant to an offering of such securities, or (v) a corporation owned, directly or indirectly, by stockholders of Morgan Stanley in
substantially the same proportions as their ownership of Morgan Stanley, is or becomes the beneficial owner, directly or indirectly, of securities of Morgan Stanley (not including in the securities beneficially owned by such person(s) any securities
acquired directly from Morgan Stanley or its affiliates other than in connection with the acquisition by Morgan Stanley or its affiliates of a business) representing more than 50% of either the total fair market value or total voting power of the
stock of Morgan Stanley; 
  

 11 

 (2) a change in the composition of the Board such that, during any 12-month
period, the individuals who, as of the beginning of such period, constitute the Board (the “Existing Board”) cease for any reason to constitute at least 50% of the Board; provided, however, that any individual
becoming a member of the Board subsequent to the beginning of such period whose election, or nomination for election by Morgan Stanley’s stockholders, was approved by a vote of at least a majority of the directors immediately prior to the date
of such appointment or election shall be considered as though such individual were a member of the Existing Board; 
 (3)
the consummation of a merger or consolidation of Morgan Stanley with any other corporation or other entity, or the issuance of voting securities in connection with a merger or consolidation of Morgan Stanley (or any direct or indirect subsidiary
of Morgan Stanley) pursuant to applicable stock exchange requirements, provided that immediately following such merger or consolidation the stockholders of the other corporation or other entity own securities representing more than 50% of the
total voting power of Morgan Stanley stock (or if Morgan Stanley is not the surviving entity of such merger or consolidation, securities representing more than 50% of the total voting power of the stock of such surviving entity), but not counting
for purposes thereof any shares of Morgan Stanley stock that such stockholders owned immediately prior to such merger or consolidation (or if Morgan Stanley is not the surviving entity of such merger or consolidation, not counting any securities of
the surviving entity into which any shares of Morgan Stanley stock that such stockholders owned immediately prior to such merger or consolidation are converted); and provided, further, that a merger or consolidation effected to implement a
recapitalization of Morgan Stanley (or similar transaction) in which no person (as determined under Section 409A) is or becomes the beneficial owner, directly or indirectly, of securities of Morgan Stanley (not including in the securities
beneficially owned by such person any securities acquired directly from Morgan Stanley or its affiliates other than in connection with the acquisition by Morgan Stanley or its affiliates of a business) representing more than 50% of either the then
outstanding shares of Morgan Stanley common stock or the combined voting power of Morgan Stanley’s then outstanding voting securities shall not be considered a Change in Ownership; or 
 (4) the complete liquidation of Morgan Stanley or the sale or disposition by Morgan Stanley of all or substantially all of Morgan
Stanley’s assets in which any one person or more than one person acting as a group (as determined under Section 409A) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or
persons) assets from Morgan Stanley that have a total gross fair market value equal to more than 40% of the total gross fair market value of all of the assets of Morgan Stanley immediately prior to such acquisition or acquisitions. 
 Notwithstanding the foregoing, (i) no Change in Ownership shall be deemed to have occurred if there is consummated any transaction or series of
integrated 

  

 12 

 
transactions immediately following which the record holders of Morgan Stanley common stock immediately prior to such transaction or series of transactions
continue to have substantially the same proportionate ownership in an entity which owns substantially all of the assets of Morgan Stanley immediately prior to such transaction or series of transactions and (ii) no event or circumstances
described in any of clauses (1) through (4) above shall constitute a Change in Ownership unless such event or circumstances also constitute a change in the ownership or effective control of Morgan Stanley, or in the ownership of a
substantial portion of Morgan Stanley’s assets, as defined in Section 409A and the regulations and guidance thereunder. In addition, no Change in Ownership shall be deemed to have occurred upon the acquisition of additional control of
Morgan Stanley by any one person or more than one person acting as a group that is considered to effectively control Morgan Stanley. 
 For
purposes of the provisions of this Award Certificate, terms used in the definition of a Change in Ownership shall be as defined or interpreted pursuant to Section 409A. 
 (e) “Competitive Activity” means: 
 (1) becoming, or entering into any arrangement as, an employee, officer, partner, member, proprietor, director, independent
contractor, consultant, advisor, representative or agent of, or serving in any similar position or capacity with, a Competitor, where you will be responsible for providing, or managing or supervising others who are providing, services (x) that
are similar or substantially related to the services that you provided to the Firm, or (y) that you had direct or indirect managerial or supervisory responsibility for at the Firm, or (z) that calls for the application of the same or
similar specialized knowledge or skills as those utilized by you in your services for the Firm, in each such case, at any time during the year preceding the termination of your employment with the Firm; or 
 (2) either alone or in concert with others, forming, or acquiring a 5% or greater equity ownership, voting interest or profit
participation in, a Competitor. 
 (f) “Competitor” means any corporation, partnership or other entity that is
engaged in any activity, or that owns a significant interest in any corporation, partnership or other entity, that competes with any business activity the Firm engages in, or that you reasonably knew or should have known that the Firm was planning
to engage in, at the time of the termination of your Employment. 
 (g) “Date of the Award” means [insert
grant date, which typically will coincide approximately with the end of the fiscal year in respect of which the award is made]. 
  

 13 

 (h) “Disability” means any condition that would qualify for a benefit
under any group long-term disability plan maintained by the Firm and applicable to you. 
 (i) “Employed” and
“Employment” refer to employment with the Firm and/or Related Employment. 
 (j) “Final Distribution Date” means the date on which the Firm shall make its final distribution to you in accordance with Section 10(a)(iii) of the Plan. The Final Distribution
Date is [tenth anniversary of January 15 following the Date of the Award].3 
 (k) The “Firm” means Morgan Stanley (including any successor thereto) together with its subsidiaries and affiliates. For
purposes of the definitions of “Cause,” “Proprietary Information,” “Unauthorized Comments” and “Wrongful Solicitation” set forth in this Award Certificate, references to the “Firm” shall refer
severally to the Firm as defined in the preceding sentence and your Related Employer, if any. For purposes of the cancellation provisions set forth in this Award Certificate relating to disclosure or use of Proprietary Information, references to the
“Firm” shall refer to the Firm as defined in the second preceding sentence or to your Related Employer, as applicable. 
 (l) “First Scheduled Vesting Date” means [second anniversary of
January 2 following the Date of the Award].4 
 (m) “Fiscal Year” and “Fiscal Quarter” mean Morgan Stanley’s Fiscal Year and Morgan Stanley’s Fiscal Quarter, respectively. Morgan Stanley’s Fiscal
Year [    ] begins on December 1, [    ] and ends on November 30, [    ]. 
 (n) “Full Career Retirement” means the termination of your Employment by you or by the Firm for any reason other than for Cause (or under circumstances involving any other cancellation event described in
Section 7(c)), and other than due to your death or Disability, on or after the date on which: 
 (1) you have attained age [    ] and completed at least [    ] years of service as a [    ]5
; or 
  

	 3
	 The final distribution date presented in this form of Award Certificate is indicative. The final distribution date
applicable to awards may vary. 

	 4
	 The vesting schedule presented in this form of Award Certificate is indicative. The vesting schedule applicable to
awards may vary. 

	 5
	 Specified officer title(s) in one or more specified business units. 

  

 14 

 (2) you have attained age [    ] and completed at least
[    ] years of service as an officer of the Firm at the level 
 of [    ]6 or above; or 
 (3) you have completed at least [    ] years of service with the Firm; or 
 (4) you have attained age [    ] and have completed at
least [    ] years of service with the Firm and the sum of your age and years of service equals or exceeds [    ].7 
 For the purposes of the foregoing definition, service with the Firm will include any period of service with the following
entities and any of their predecessors: 
 (i) AB Asesores (“ABS”) prior to its acquisition by
the Firm (provided, that only years of service as a partner of ABS shall count towards years of service as an officer); 
 (ii) Morgan Stanley Group Inc. and its subsidiaries (“MS Group”) prior to the merger with and into Dean Witter, Discover & Co.; 
 (iii) Miller Anderson & Sherrerd, L.L.P. prior to its acquisition by MS Group; 
 (iv) Van Kampen Investments Inc. and its subsidiaries prior to its acquisition by MS Group; 
 (v) FrontPoint Partners LLC and its subsidiaries prior to its acquisition by the Firm; and 
 (vi) Dean Witter, Discover & Co. and its subsidiaries (“DWD”) prior to the merger of Morgan
Stanley Group Inc. with and into Dean Witter, Discover & Co.; 
 provided that, in the case of an employee who has transferred employment
from DWD to MS Group or vice versa, a former employee of DWD will receive credit for employment with DWD only if he or she transferred directly from DWD to Morgan Stanley & Co. Incorporated or its affiliates subsequent to February 5,
1997, and a former employee of MS Group will receive credit for employment with MS Group only if he or she transferred directly from MS Group to Morgan Stanley DW Inc. or its affiliates subsequent to February 5, 1997. 
 (o) “Management Committee” means the Morgan Stanley Management Committee and any successor or equivalent committee.

  

	 6
	 Specified officer title(s) in one or more specified business units. 

	 7
	 Age and service conditions specified in clauses (i) through (iv) may vary from year to year.

  

 15 

 (p) “Proprietary Information” means any information that may have
intrinsic value to the Firm, the Firm’s clients or other parties with which the Firm has a relationship, or that may provide the Firm with a competitive advantage, including, without limitation, any trade secrets; inventions (whether or not
patentable); formulas; flow charts; computer programs; access codes or other systems information; algorithms; technology and business processes; business, product, or marketing plans; sales and other forecasts; financial information; client lists or
other intellectual property; information relating to compensation and benefits; and public information that becomes proprietary as a result of the Firm’s compilation of that information for use in its business, provided that such Proprietary
Information does not include any information which is available for use by the general public or is generally available for use within the relevant business or industry other than as a result of your action. Proprietary Information may be in any
medium or form, including, without limitation, physical documents, computer files or disks, videotapes, audiotapes, and oral communications. 
 (q) “Related Employment” means your employment with an employer other than the Firm (such employer, herein referred to as a “Related Employer”), provided: (i) you undertake such
employment at the written request or with the written consent of Morgan Stanley’s Global Head of Human Resources; (ii) immediately prior to undertaking such employment you were an employee of the Firm or were engaged in Related Employment
(as defined herein); and (iii) such employment is recognized by the Firm in its discretion as Related Employment; and, provided further, that the Firm may (1) determine at any time in its sole discretion that employment that was recognized
by the Firm as Related Employment no longer qualifies as Related Employment, and (2) condition the designation and benefits of Related Employment on such terms and conditions as the Firm may determine in its sole discretion. The designation of
employment as Related Employment does not give rise to an employment relationship between you and the Firm, or otherwise modify your and the Firm’s respective rights and obligations. 
 (r) “Scheduled Distribution Date” means [third anniversary of
January 2 following the Date of the Award] or as soon thereafter as administratively practicable.8 
 (s) “Scheduled Vesting Date” means the First Scheduled Vesting Date and/or the Second Scheduled Vesting Date, as the
context requires. 
 (t) “Second Scheduled Vesting
Date” means [third anniversary of January 2 following the Date of the Award].9 
  

	 8
	 The scheduled distribution date presented in this form of Award Certificate is indicative. The scheduled distribution
date applicable to awards may vary. 

	 9
	 The vesting schedule presented in this form of Award Certificate is indicative. The vesting schedule applicable to
awards may vary. 

  

 16 

 (u) “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. 
 (v) You will be deemed to have made “Unauthorized Comments” about the Firm if, while Employed or following the termination
of your Employment, you make, directly or indirectly, any negative, derogatory, or disparaging comment, whether written, oral or in electronic format, to any reporter, author, producer or similar person or entity or to any general public media in
any form (including, without limitation, books, articles or writings of any other kind, as well as film, videotape, audiotape, computer/Internet format or any other medium) that concerns directly or indirectly the Firm, its business or operations,
or any of its current or former agents, employees, officers, directors, customers or clients. 
 (w) A “Wrongful
Solicitation” occurs upon either of the following events: 
 (1) while Employed, including during any
notice period applicable to you in connection with the termination of your Employment, or within 180 days after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or
other business entity of any kind), you hire or solicit, recruit, induce, entice, influence or encourage any Firm employee to leave the Firm or become hired or engaged by another firm; provided, however, that this clause shall apply
only to employees with whom you worked or had professional or business contact, or who worked in or with your business unit, during any notice period applicable to you in connection with the termination of your Employment or during the 180 days
preceding notice of the termination of your Employment; or 
 (2) while Employed, including during any notice period
applicable to you in connection with the termination of your Employment, or within 90 days (180 days if you are a member of the Management Committee at the time of notice of termination) after the termination of your Employment, directly or
indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind), you solicit or entice away or in any manner attempt to persuade any client or customer, or prospective client or customer, of
the Firm (i) to discontinue or diminish his, her or its relationship or prospective relationship with the Firm or (ii) to otherwise provide his, her or its business to any person, corporation, partnership or other business entity which
engages in any line of business in which the Firm is engaged (other than the Firm); provided, however, that this clause shall apply only to clients or customers, or prospective clients or customers, that you worked for on an actual or
prospective project or assignment during any notice period applicable to you in connection with the termination of your Employment or during the 180 days preceding notice of the termination of your Employment. 
  

 17 

 IN WITNESS WHEREOF, Morgan Stanley has duly executed and delivered this Award Certificate as of
the Date of the Award. 
  

	
	MORGAN STANLEY
	
	 /s/

	[NAME]
	[TITLE]

  

 18 

 APPENDIX A 
 Designation of Beneficiary(ies) Under 
 [Fiscal Year] Notional Leveraged Co-Investment Plan 

 This Designation of Beneficiary shall remain in effect with respect to all awards issued to me under the 2006 Notional Leveraged Co-Investment Plan (the
“Plan”), including any awards that may be issued to me after the date hereof, unless and until I modify or revoke it by submitting a later dated beneficiary designation. This Designation of Beneficiary supersedes all my prior
beneficiary designations with respect to all my Plan awards. 
 I hereby designate the following beneficiary(ies) to receive any survivor benefits with
respect to all my Plan awards: 
  

							
	  	 	 Beneficiary(ies) Name
	  	 Relationship
	  	 Percentage

				
	 (1)
	 	  
	  	  
	  	  

				
	 (2)
	 	  
	  	  
	  	  

				
	 (3)
	 	  
	  	  
	  	  

				
	 (4)
	 	  
	  	  
	  	  

	
	Address(es) of Beneficiary(ies):
				
	 (1)
	 		  		  	
				
	 (2)
	 		  		  	
				
	 (3)
	 		  		  	
				
	 (4)
	 		  		  	

  

					
	  
	  	
	 Name: (please print)
	  	Date	  	
			
	  
	  		  	
	Signature	  		  	

 Please sign and return this form to the Executive Compensation Department, [insert address].

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