Document:

Morgan Stanley 2007 Notional Leveraged Co-Investment Plan

 EXHIBIT 10.1 
 MORGAN STANLEY 
 2007 NOTIONAL LEVERAGED CO-INVESTMENT PLAN 
 Section 1. Purpose. The Morgan Stanley 2007 Notional Leveraged Co-Investment Plan (as may be amended from time to time, the
“Plan”) has the purposes of: (i) providing the opportunity to a select group of management and highly compensated employees to enhance (A) the portion of any discretionary above base compensation that would otherwise be
awarded to them in the form of Morgan Stanley equity compensation or other mandatory long-term incentive compensation or (B) any retention, new hire or similar awards that would be granted to such management and employees and
(ii) facilitating the allocation of such compensation to the notional investment opportunities afforded by the Plan. 
 Section 2.
Definitions. As used in the Plan, unless determined otherwise by the Firm and set forth in the applicable Award Certificate, the following terms shall have the indicated meanings: 
 “Above Base Compensation” means any compensation other than base salary that the Firm awards to an Eligible Person for a Fiscal Year,
before reduction for any applicable taxes. Nothing in the Plan shall obligate the Firm to award or pay any Above Base Compensation to any person. 
 “Account” means the bookkeeping account that the Firm establishes and maintains for a Participant pursuant to Section 6. An Account is established only for purposes of tracking a Notional Plan Investment and not to
segregate or identify assets that may be used to make distributions or other payments under the Plan. 
 “Administration
Fee” shall have the meaning set forth in Section 8(a). 
 “Administrator” means one or more officers of the
Firm to whom the Committee, in its sole discretion, delegates all or some of its authority and responsibilities to administer the Plan. Such officers are authorized to sub-delegate some or all of such authority and responsibilities to the Executive
Compensation Department, another committee of the Firm and/or one or more officers of the Firm, and any person or persons to whom are sub-delegated all or some of such authority and responsibilities is also, to the extent of such sub-delegation, the
“Administrator”.
 “Allocation” shall have the meaning set forth in Section 4(a). 
 “Allocation Form” shall have the meaning set forth in Section 4(a). 
 “Allocation Preference” shall have the meaning set forth in Section 4(a). 

 “Applicable Reduction Amount” shall have the meaning set forth in Section 10(a)(i).

 “Associated Employee Fund” means, with respect to any reference investment underlying a Notional Plan Investment, a
co-investment or feeder fund that is available primarily to employees of the Firm and is associated with such reference investment. 
 “Award Certificate”, with respect to any Participant, means a written document (including in electronic form) for each Total Notional Investment that sets forth the terms and conditions of such Participant’s
participation in the Plan. A Participant’s participation in the Plan shall be governed by the Plan, such Participant’s Award Certificate or Certificates, as applicable, and, if and to the extent applicable pursuant to Section 16(e),
the International Supplement. 
 “Board” means the Board of Directors of Morgan Stanley. 
 “Cancellation Event”, with respect to any Plan Interest of any Participant, shall have the meaning set forth in the applicable Award
Certificate. Cancellation Events in respect of any Plan Interest related to a Fiscal Year Award shall be substantially similar to such events as set forth in the annual year-end equity compensation awards granted to such Participant. 
 “Closed-End Investment” means a Notional Plan Investment in a reference investment that generally does not permit redemptions by
investors but makes distributions to investors from time to time following the sale, transfer or other disposition of its investments. 
 “Closed-End Distribution Date” means, with respect to any Plan Interest of any Participant, any date, specified in the applicable Award Certificate, as a Distribution Date for Proceeds with respect to Closed-End
Investments. 
 “Code” means the United States Internal Revenue Code of 1986, as amended. 
 “Committee” means the Compensation, Management Development and Succession Committee of the Board, any successor committee thereto or any
other committee of the Board appointed by the Board with the powers of the Committee under the Plan, or any subcommittee appointed by such Committee. 
 “Descriptive Materials” means all brochures, letters, memoranda or other documents from the Firm to a Participant regarding the Plan, including all electronic-based materials. 
 “Distribution Date” means, 
  

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 (i) with respect to a Closed-End Investment, (A) the Earliest Distribution Date, if applicable,
(B) any Subsequent Closed-End Distribution Dates (including the Final Distribution Date), if applicable, and (C) any other date specified as a Closed-End Distribution Date in the Participant’s applicable Award Certificate; and

 (ii) with respect to an Open-End Investment, the Earliest Distribution Date and any Subsequent Open-End Distribution Dates. 
 “Earliest Distribution Date” means, with respect to any Plan Interest, the date, specified in the applicable Award Certificate, on which
Proceeds in respect of Notional Plan Investments shall commence being distributed to the applicable Participant. 
 “Eligible
Person” means a professional employee of the Firm who is determined by the Committee to be eligible to participate in the Plan. 
 “Executive Compensation Department” means Morgan Stanley’s Executive Compensation Department or any other department of Morgan Stanley that succeeds to the functions of the Executive Compensation Department.

 “Final Distribution Date” means, with respect to any Plan Interest of any Participant, the date, specified in the
applicable Award Certificate, on which the Firm shall make its final distribution with respect to such Plan Interest to such Participant in accordance with Section 10(a)(iii). 
 “Firm” means Morgan Stanley together with its subsidiaries and other affiliates. 
 “Fiscal Year” and “Fiscal Quarter” mean Morgan Stanley’s Fiscal Year and Morgan Stanley’s Fiscal Quarter,
respectively. 
 “Fiscal Year Award” means an allocation to the Plan of a Participant’s compensation that would
otherwise be mandatorily granted in the form of Morgan Stanley equity compensation or other mandatory long-term incentive compensation in respect of a Fiscal Year. 
 “International Supplement” shall have the meaning set forth in Section 16(e). 
 “Investment Committee” means a committee of two or more officers of the Firm to whom the Administrator delegates the authority and responsibilities to select Notional Plan Investments. 
 “Legal Requirement” means any law, regulation, ruling, judicial decision, accounting standard, regulatory guidance or other legal
requirement. 
  

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

 “Morgan Stanley Applicable Rate” means, for any period, the rate at which notional interest with respect to any Notional
Advance (or any portion thereof) shall accrue from the date that the Notional Advance (or portion thereof) is deemed to be notionally invested until and to the extent such Notional Advance (or portion thereof) is reduced by any Proceeds. Pursuant
and subject to Section 3(a)(v), the Firm reserves the right to revise the Morgan Stanley Applicable Rate at any time and from time to time. 
 “Notional Advance” means, with respect to any Participant Allocation, the notional amount, if any, that Morgan Stanley adds or will add to the Participant Allocation for notional investment in Notional Plan Investments in
accordance with Section 5. 
 “Notional Plan Investment” means an investment designated by the Firm as a reference
investment for the benefit of the Plan. Reference investments underlying Notional Plan Investments may include proprietary investment funds of the Firm or “funds of funds” of the Firm that include investment funds sponsored or offered by
third parties. For the avoidance of doubt, a Participant’s interest in any Notional Plan Investment shall be notional. 
 “Open-End Investment” means a Notional Plan Investment in a reference investment that generally does not make distributions to its investors but permits investors to redeem their interest in the fund from time to time.

 “Participant” means an Eligible Person who participates in the Plan. 
 A “Participant Allocation” means, with respect to any Participant, (i) a Fiscal Year Award, or (ii) a Special Award.

 “Participant Applicable Rate” means, for any period, the rate at which notional interest may accrue with respect to:

 (i) Each Participant Allocation (or portion thereof), from, (A) in the case of a Fiscal Year Award, the date on which the annual
equity award for such Fiscal Year is granted (or such other date specified in the applicable Award Certificate) or (B) in the case of a Special Award, the grant date of such Special Award, in each case until the Firm notionally allocates such
Participant Allocation (or portion thereof) to one or more Notional Plan Investments; 
 (ii) Each Participant Allocation, if the Firm
determines that a Participant Allocation shall not be notionally invested in Notional Plan Investments, from the date on which the annual equity award for such Fiscal Year is granted (or, in the case of a Special Award, the grant date of such
Special Award) until the applicable Earliest Distribution Date; 
  

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 (iii) The Proceeds relating to a Realization (or partial Realization) with respect to a Closed-End
Investment, from the date of such Realization until the applicable Distribution Date, as further set forth in Section 10(a) and (b), as applicable; 
 (iv) The Proceeds relating to a Realization (or partial Realization) with respect to an Open-End Investment, from the date of such Realization until the applicable Distribution Date, as further set forth in
Section 10(c); 
 (v) The Proceeds relating to a Realization (or partial Realization) with respect to a Notional Plan Investment, from
the date of the applicable Distribution Date to the actual date of distribution permitted by Section 11(a); and 
 (vi) Each Plan
Termination Value, from the date of any termination of the Plan until the distribution of such Plan Termination Value on the applicable Distribution Date. 
 Pursuant and subject to Section 3(a)(v), the Firm reserves the right to revise the Participant Applicable Rate at any time and from time to time. 
 “Plan” shall have the meaning set forth in Section 1. 
 “Plan Interest” means, with respect to any Participant Allocation, a Participant’s Total Notional Investment (including any
notional interest accrued at the Participant Applicable Rate) minus the sum of such Participant’s previously unreduced Notional Advances reflected in the Participant’s Account with respect to such Participant Allocation (plus
accrued and previously unreduced notional interest thereon) and such Participant’s previously unreduced Administration Fee. 
 “Plan Termination Value” means, with respect to any Plan Interest in connection with the termination of this Plan, a Final Distribution Date, or a single Closed-End Distribution Date, the fair value (as determined by the
Firm) of such vested Plan Interest (or portion thereof), if any (together with any notional interest accrued thereon), on the effective date of such termination, or as of such Final Distribution Date or single Closed-End Distribution Date, as
applicable. 
 “Proceeds” means, with respect to any Notional Plan Investment, (i) notional gross cash proceeds, if
any, that are Realized in respect of such Notional Plan Investment at any time, plus (ii) if there is an Associated Employee Fund, an additional amount equal to the difference between (A) the “carried interest” that would
be paid by third-party investors with respect to the reference investment underlying such Notional Plan Investment, and (B) the “carried interest” that would be paid by employee investors in an Associated Employee Fund. For the
avoidance of doubt, Proceeds shall be net of any fees or expenses charged to Morgan Stanley by any reference investment that relates to a Notional Investment. 
  

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 “Realization” or “Realize” means (i) with respect to a Closed-End
Investment, the receipt of a distribution by an investor, had such investor received such a distribution from such Closed-End Investment; and (ii) with respect to an Open-End Investment, the receipt of a distribution or redemption proceeds by
an investor, had such investor received such a distribution or effected such a redemption from such Open-End Investment as of such Open-End Investment’s most recent valuation date. For the avoidance of doubt, the re-investment of proceeds by a
Notional Plan Investment does not, itself, give rise to a Realization. 
 “Section 409A” means Section 409A of the
Code, and the rules, regulations and guidance thereunder (or any successor provisions thereto). 
 “Securities Act” means
the United States Securities Act of 1933, as amended. 
 “Special Award” means a retention, new hire or similar award that
is granted in the form of a participation in the Plan. 
 “Subsequent Closed-End Distribution Date”, with respect to any
Plan Interest, means each date after the Earliest Distribution Date selected as a Distribution Date for Proceeds relating to Closed-End Investments. Any such selection may be made from a menu of possible dates specified by the Firm, in accordance
with any rules and procedures that the Firm establishes. 
 “Subsequent Open-End Distribution Date”, with respect to any
Plan Interest, means each date after the Earliest Distribution Date selected as a Distribution Date for Proceeds relating to Open-End Investments. Any such selection may be made from a menu of possible dates specified by the Firm, in accordance with
any rules and procedures that the Firm establishes. 
 “Total Compensation” means (i) base salary, commissions and
annual bonus, inclusive of the value of long-term incentive compensation, or what the Firm designates as “total reward”; and (ii) for employees who are Investment Representatives or Financial Advisors of the Global Wealth Management
Group, gross compensation, pre-deductions, inclusive of the value of long-term incentive compensation, or what the Firm designates as “total reward”. 
 “Total Notional Investment” means, with respect to any Participant Allocation at any time, the interest in the Plan that is attributable to such Participant Allocation at such time and any related
Notional Advance. 
 Section 3. Administration. 
 (a) The Committee shall administer the Plan. In addition to other express powers and authorizations that the Plan confers on the Committee, the Committee shall have full power and authority, subject to the express
provisions 

  

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of the Plan, Legal Requirements and contractual provisions binding upon the Firm and any internal policies and procedures of the Firm: 
 (i) to determine the terms and conditions of each Award Certificate; 
 (ii) to determine the pool of Eligible Persons; 
 (iii) to construe and interpret the Plan, any Award Certificate, the International Supplement or any summary of the foregoing (including
any Descriptive Materials); 
 (iv) to prescribe, amend, rescind or waive rules and procedures relating to the Plan with
respect to any and all Participants; 
 (v) to revise the Morgan Stanley Applicable Rate and the Participant Applicable Rate;

 (vi) to waive any provision of the Plan or one or more Award Certificates with respect to any and all Participants;

 (vii) to vary the terms and conditions of participation in the Plan to take account of tax laws, securities laws and other
regulatory requirements of foreign jurisdictions; and 
 (viii) to make all other determinations necessary or advisable for
the administration of the Plan. 
 Except as expressly provided for in the Plan, the Committee’s determinations under the Plan need not be uniform and
may be made selectively among Eligible Persons and Participants, whether or not such persons are similarly situated. All determinations by the Committee or the Administrator pursuant to Section 3(b), in administering, construing or interpreting
the Plan shall be final, binding and conclusive for all purposes and upon all persons. 
 (b) The Committee may, but need not, from time to
time delegate such of its responsibilities under the Plan as it deems appropriate to the Administrator. In connection with the performance of their responsibilities under the Plan, the Committee, the Administrator and the Investment Committee may
consult with any third party they deem necessary or advisable, including any outside consultant or advisor. 
 (c) Neither the Firm nor any
member of the Board, the Committee, the Investment Committee, the Administrator and their respective affiliates and employees shall be liable in any manner whatsoever in connection with the administration, construction or interpretation of the Plan,
any Award Certificate or the Descriptive Materials, except for any liability arising out of such person’s 

  

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willful misconduct. Under no circumstances shall any such person be liable for any act or omission of any other person. In the performance of its, his or her
functions with respect to the Plan, each such person shall be entitled to rely upon information and advice furnished by the Firm’s officers, the Firm’s accountants, the Firm’s counsel, the Firm’s tax advisors and any other person
the Committee deems necessary or advisable, and no such person shall be liable for any action taken or not taken in reliance upon any such advice. 
 (d) Any discretionary authority or obligation pursuant to the Plan shall not be applicable to the extent such discretionary authority or obligation is prohibited by Section 409A, or would result in a Participant being required to
recognize income for United States federal income tax purposes prior to the relevant Distribution Date or would result in a Participant incurring interest or additional tax under Section 409A. 
 Section 4. Participant Allocation. 
 (a) In accordance with any rules and procedures that the Firm establishes, an Eligible Person may be permitted to express a preference to allocate a portion of the compensation other than base salary that would otherwise be granted in the
form of Morgan Stanley equity compensation or other mandatory long-term incentive compensation in respect of such Fiscal Year to the Plan (an “Allocation Preference”). Such Allocation Preference, which such Eligible Person shall
make by submitting a form, including in electronic form (an “Allocation Form”), on or prior to a date specified on such Allocation Form, shall be irrevocable by the Eligible Person on or after such date. The Firm, in its sole and
absolute discretion, reserves the right not to give effect to all or any portion of such Allocation Preference during the time period designated by the Administrator after such Allocation Preference is irrevocable to the Eligible Person. The Firm
shall give effect to such Eligible Person’s Allocation Preference in its entirety, subject to (i) the eligibility criteria as determined by the Committee and (ii) any adjustment thereto effected by the Firm in accordance with the
immediately preceding sentence, except to the extent not giving such effect is not prohibited by Section 409A and would not result in such Eligible Person being required to recognize income for United States federal income tax purposes prior to
the relevant Distribution Date or in an Eligible Person incurring interest or additional tax under Section 409A. The Firm’s final allocation (“Allocation”) of the non-cash component of such Eligible Person’s Above
Base Compensation shall not constitute a guarantee of Plan participation. 
 (b) The Firm shall issue to each Participant an Award
Certificate setting forth the terms and conditions of such Participant’s participation in the Plan. 
 (c) Each Participant Allocation
shall accrue notional interest, (A) in the case of a Fiscal Year Award, at the Participant Applicable Rate from the date that the annual equity award for such Fiscal Year is granted (or such other date specified in the applicable Award
Certificate), in each case, unless the Firm 

  

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determines otherwise in accordance with any rules and procedures that the Firm establishes or (B) in the case of a Special Award, the grant date of such
Special Award, in each case: (i) until the Firm notionally allocates such Participant Allocation (or a portion thereof) to one or more Notional Plan Investments pursuant to Section 7, or (ii) if the Firm does not notionally invest
such Participant Allocation (or a portion thereof) in one or more Notional Plan Investments, until the Earliest Distribution Date, on which date the Firm shall pay such Participant Allocation (or portion thereof) to such Participant. 
 (d) Participant Allocations are intended to be exempt from registration under the Securities Act. By participating in the Plan, each Participant shall be
deemed to acknowledge, represent and warrant to and agree with Morgan Stanley, and the Firm may require the Participant to affirmatively acknowledge, represent and warrant to and agree with Morgan Stanley, as follows: 
 (i) The Participant received and carefully reviewed the Descriptive Materials, and the Participant understands the information contained
therein, the risks associated with a Notional Plan Investment under the Plan and the conflicts that the Plan may present for the Firm and agrees to be bound by the terms of the Descriptive Materials; 
 (ii) The Participant had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of
Morgan Stanley concerning the Plan and all such questions were answered to the Participant’s full satisfaction; 
 (iii)
No oral or written representations were made to the Participant concerning the Plan other than as stated in any Award Certificate and/or the Descriptive Materials, and no oral or written information furnished to the Participant in connection with
the Plan was inconsistent with the information stated in the Descriptive Materials; 
 (iv) The Participant has adequate means
of providing for the Participant’s current financial needs and contingencies, is able to bear the substantial economic risks of the Plan for an indefinite period of time, has no need for liquidity regarding the Participant’s assets placed
in the Plan and, at the present time, could afford a complete loss of such assets; 
 (v) The Participant has such knowledge
and experience in financial, tax and business matters so as to enable the Participant to utilize the information made available to the Participant in connection with the Plan to evaluate the merits and risks of the Plan and to make an informed
decision with respect thereto; 
 (vi) The Participant is not relying on Morgan Stanley or any person or persons acting on
behalf of Morgan Stanley with respect to the tax and other economic considerations of the Plan; 
  

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 (vii) The Participant satisfies the eligibility requirements as determined by the
Committee; 
 (viii) The Participant shall provide such information and execute and deliver such documents as may reasonably
be requested by the Firm in connection with the Plan, including such information and documents as may reasonably be necessary to comply with any and all laws to which the Firm is subject, and such additional information as the Firm may deem
appropriate with regard to the Participant’s eligibility (including documentation relating to the Participant’s qualification as an Accredited Investor); and 
 (ix) The Participant shall keep confidential all matters relating to the Plan (including the terms of the Plan and any Award Certificate
and the Descriptive Materials), except to the extent such matters are publicly available (through no fault of the Participant) or as otherwise required by Legal Requirements. The Firm’s Code of Conduct regarding confidential and proprietary
information shall cover such matters. 
 Section 5. Notional Advance. 
 (a) In connection with the notional investment of any Participant Allocation (or portion thereof) in a Notional Plan Investment, an amount equal to a
multiple (which may include zero) of such Participant Allocation (or portion thereof), as determined in the discretion of the Firm, may be added to the Participant’s Account for purposes of enhancing the leverage of the applicable Participant
Allocation in its notional investment in Notional Plan Investments. In accordance with any rules and procedures that the Firm establishes, an Eligible Person may be permitted to express a preference to receive a Notional Advance of a specified
amount with respect to any Participant Allocation. 
 (b) Each Notional Advance shall accrue notional interest at the Morgan Stanley
Applicable Rate (unless the Firm determines otherwise in accordance with any rules and procedures that the Firm establishes) during the period that such Notional Advance (or portion thereof) is deemed to be outstanding (i.e., from the date
that the Notional Advance (or portion thereof) is deemed to be notionally invested until and to the extent such Notional Advance (or portion thereof) is reduced by any Proceeds). 
 (c) Any Notional Advance shall be satisfied only through reductions to: (i) any notional interest previously accrued at the Participant Applicable
Rate, or (ii) Proceeds in accordance with Section 10. No Participant shall be required to make any direct or out-of-pocket payment to the Firm in connection with any Notional Advance. 
 Section 6. Establishment of Accounts. The Firm shall establish an Account for each Participant, to which it shall credit such Participant’s
Participant 

  

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Allocations, any related Notional Advances, any notional interest accrued at the Participant Applicable Rate and any notional interest accrued at the Morgan
Stanley Applicable Rate. Each Participant’s Account shall reflect such Participant’s notional share of each Notional Plan Investment. 
 Section 7. Notional Plan Investments. 
 (a) The Firm shall designate Notional Plan Investments for the benefit of the Plan,
and shall establish a purchase price, for purposes of the Plan, equal to the fair value (as the Firm shall determine) of such Notional Plan Investments at the time of their designation. These Notional Plan Investments may differ for Participant
Allocations granted in different Fiscal Years and for Special Awards. Participants shall participate in each Notional Plan Investment pro rata based on their respective Total Notional Investments (unless the Firm determines otherwise, in
accordance with any rules and procedures that the Firm establishes). Each Participant’s notional share of any Notional Plan Investment shall be deemed to have been notionally funded, first, by such Participant’s applicable Participant
Allocation and, to the extent such Participant Allocation has been fully notionally invested, the remaining Notional Plan Investment amount shall be deemed to have been notionally funded by any Notional Advance amount reflected in the
Participant’s Account with respect to such Participant Allocation (therefore, no notional interest shall begin to accrue until such time as a Notional Plan Investment is deemed to be funded by such Notional Advance (or portion thereof)).

 (b) Notional Plan Investments in respect of any given Fiscal Year or any Special Awards shall be indicated on the Executive Compensation
Department website or through other means that the Firm shall determine and communicate to Participants from time to time. The Firm may provide a Participant with a description of the related reference investments and their historical returns;
however, the Firm is not responsible for actions, statements or performance of the Notional Plan Investments. 
 (c) The Firm may
choose Notional Plan Investments based on a variety of factors, which may include the Firm’s own business interests and its relations with such reference investments or parties affiliated with such referenced funds. By participating in the
Plan, each Participant shall be deemed to acknowledge the existence of actual and potential conflicts of interest with the Firm and waive any claim with respect to the existence of any conflict of interest and the Firm may require each Participant
to affirmatively make such acknowledgment and waiver. 
 (d) The performance of each Notional Plan Investment shall reflect all of the fees
and costs of the related reference investment, including placement agent and brokerage fees, which such reference investment may pay to the Firm if the Firm provides such services to it. The Firm may also act as the investment advisor or provide
other services to such reference investment and receive fees for providing these services. Fees paid by any reference investment will reduce the 

  

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performance of such reference investment (and, accordingly, the performance of the Notional Plan Investment) and, therefore, will reduce the amount of the
Firm’s distribution obligations to Participants under the Plan. 
 (e) Nothing in the Descriptive Materials shall be construed to confer
on a Participant the right to continue to have any particular Notional Plan Investment available for purposes of measuring the value of the Participant’s Total Notional Investment. 
 (f) The value of a Participant’s Total Notional Investment is subject to risk at all times based upon the performance of the Notional Plan
Investments. If the value of the Notional Plan Investments decreases in the future, then the value of a Participant’s Total Notional Investment may be lower than a Participant’s applicable Participant Allocation. Additionally, if the value
of the Notional Plan Investments decreases in the future and proves to be less than the sum of the unreduced invested Notional Advance, accrued and unreduced notional interest, accrued and unreduced Administration Fee and any Notional Advance
committed but not yet notionally invested, a Participant will not be entitled to receive any of his or her applicable Participant Allocation with respect to such Total Notional Investment. Although a Participant will not be an investor in any
reference investments underlying the Notional Plan Investments, a Participant’s Total Notional Investment will be determined by referencing the gains and losses attributable to the performance of such Notional Plan Investments. In effect, the
Firm is merely targeting the return and liquidity on such Notional Plan Investments and to the extent that the Firm incurs any costs in connection therewith or in connection with the administration of the Plan, it has the right to adjust the return
on a Participant’s Notional Plan Investments to reflect these costs. Any distribution or other payment under the Plan is also subject to the risks associated with the Participant’s status as an unsecured general creditor of Morgan Stanley
as described in Section 16(c). 
 Section 8. Fees. 
 (a) Unless otherwise determined by the Administrator the Firm shall reduce each Participant’s Account by a notional administration fee (the “Administration Fee”) in an amount that it determines
is fair and appropriate. Any Administration Fee shall apply to all Participants in the same manner and shall be communicated to Participants in advance of any decision by Eligible Persons to allocate their long-term incentive mix. 
 (b) The Administration Fee, which shall be applied against each Participant’s Account balance, shall accrue periodically in arrears (but shall not
accrue any notional interest) and shall reduce the Participant’s share of Proceeds as described in the distribution formula set forth below in Section 10. 
 (c) The Administration Fee shall be satisfied only through reductions to: (i) a Participant’s notional interest previously accrued at the Participant 

  

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Applicable Rate, or (ii) a Participant’s share of any Proceeds in accordance with Section 10. No Participant shall be required to make any
direct or out-of-pocket payment to the Firm in connection with a Total Notional Investment. 
 (d) The Administration Fees are separate from
any fees applicable to the Notional Plan Investments and the related reference investments which, without limiting the generality of Section 7(d), are reflected in the net returns credited to a Participant’s Account. 
 Section 9. Vesting. 
 (a) Terms and
conditions relating to the vesting of a Participant’s Plan Interest (including any consequences of a termination of such Participant’s employment) shall be set forth in such Participant’s Award Certificate. Such terms and conditions
with respect to any Participant in respect of any Fiscal Year Award shall be substantially similar to analogous terms and conditions set forth in the annual year-end equity compensation awards granted to such Participant in respect of such Fiscal
Year. 
 (b) The Firm may accelerate the vesting of a Participant’s Plan Interest and may, in its sole discretion, determine other
circumstances under which a Participant’s Plan Interest shall vest. Nothing in the Plan or in any Award Certificate shall entitle a Participant to request or receive any distribution or other payment upon the vesting of all or any portion of
such Participant’s Plan Interest. 
 (c) Even if a Participant holds a Plan Interest, whether or not fully vested, it may be canceled
without any consideration upon the occurrence of a Cancellation Event prior to the Earliest Distribution Date. Upon such occurrence, the Participant shall have no further interest in or entitlement under the Plan, including no right or entitlement
to any Participant Allocation. 
 Section 10. Distributions. 
 (a) Closed-End Investments – Multiple Distribution Dates. If a Participant’s Award Certificate specifies multiple Closed-End
Distribution Dates, this Section 10(a) shall apply to such Participant’s applicable Total Notional Investment: 
 (i) With respect to any Proceeds in respect of a Closed-End Investment on or prior to the Earliest Distribution Date of a vested Plan Interest, the share of such Proceeds attributable to the Total Notional Investment with respect to such
Plan Interest shall immediately be reduced by the sum of (A) the applicable, previously unreduced invested Notional Advance (plus accrued and previously unreduced notional interest thereon), (B) any applicable, accrued and previously
unreduced Administration Fee and (C) any committed but not yet notionally invested Notional Advance (such sum, the “Applicable Reduction Amount”). 

  

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Any committed but not yet notionally invested Notional Advance will reduce the applicable Proceeds as determined in the discretion of the Firm prior to the
date on which the Allocation Preferences become irrevocable and such Proceeds may be withheld in escrow, accruing notional interest at the Participant Applicable Rate. Any remaining Proceeds shall accrue notional interest at the Participant
Applicable Rate from the date of the Realization of such Proceeds until such Earliest Distribution Date (unless the Firm determines otherwise in accordance with any rules and procedures that the Firm establishes). The Applicable Reduction Amount
shall reduce the portion of subsequent Proceeds attributable to such remaining Total Notional Investment (including, if applicable, Proceeds in respect of a Closed-End Investment Realized after such Earliest Distribution Date and/or Proceeds in
respect of an Open-End Investment). Such remaining Proceeds shall be aggregated and distributed to such Participant on the applicable Earliest Distribution Date. 
 (ii) With respect to any Proceeds in respect of a Closed-End Investment Realized after the Earliest Distribution Date of a vested Plan
Interest, but on or prior to the Subsequent Closed-End Distribution Date of such Plan Interest, the share of such Proceeds attributable to the remaining Total Notional Investment with respect to such Plan Interest, to the extent of such
Realizations, shall be reduced and aggregated and distributed on such Subsequent Closed-End Distribution Date in accordance with the method described in Section 10(a)(i). The share of Proceeds attributable to the remaining Total Notional
Investment with respect to such Plan Interest in respect of a Closed-End Investment Realized after such Subsequent Closed-End Distribution Date and on or prior to the next Subsequent Closed-End Distribution Date shall be reduced and aggregated and
distributed on such next Subsequent Closed-End Distribution Date. 
 (iii) If the last Subsequent Closed-End Distribution Date
of a vested Plan Interest is such Plan Interest’s Final Distribution Date, then the Firm shall distribute to each Participant an amount equal to the sum of (i) the share of any undistributed Proceeds attributable to any remaining Total
Notional Investment with respect to such Plan Interest, subject to any reductions, and (ii) such Plan Termination Value with respect to such Plan Interest that relates to any then un-Realized Notional Plan Investments in accordance with the
method described in Section 10(a)(i) on such Final Distribution Date. 
 (b) Closed-End Investments – Single Distribution
Date. If a Participant’s Award Certificate specifies a single Closed-End Distribution Date, this Section 10(b) shall apply to such Participant’s applicable Total Notional Investment: 
 (i) Proceeds in respect of any Closed-End Investment, if any, will be distributed on or as soon as administratively practicable
after the 

  

 14 

 
single Closed-End Distribution Date (reduced by the Applicable Reduction Amount in accordance with the method described in Section 10(a)(i)). In
addition, Morgan Stanley will distribute on such Closed-End Distribution Date, or as soon as administratively practicable thereafter, any remaining Plan Termination Value with respect to any then un-Realized Closed-End Investments (these amounts
shall be reduced by the Applicable Reduction Amount in accordance with the method described in Section 10(a)(i)). 
 (ii)
With respect to Realizations which occur prior to the single Closed-End Distribution Date, the Proceeds, if any, from such Realizations may be allocated to a set of alternative notional investments within a Participant’s Account until the
Closed-End Distribution Date. Such an alternative notional investment menu will be provided by the Firm and communicated to the Participant prior to the Earliest Distribution Date. 
 (c) Open-End Investments. 
 (i) With respect to any Proceeds in respect of an Open-End Investment, a Plan Interest’s previously designated percentage share thereof shall accrue notional interest at the Participant Applicable Rate from the date of the Realization
of such Proceeds until the Earliest Distribution Date relating to such Plan Interest. On such Earliest Distribution Date, (A) the previously designated percentage share of such Proceeds relating to such Plan Interest (and any accrued notional
interest thereon) shall be reduced by the Applicable Reduction Amount in accordance with the method described in Section 10(a)(i), and (B) after such reduction, the previously designated percentage share of such Proceeds relating to such
Plan Interest, if any, shall be distributed to the applicable Participant. 
 (ii) With respect to any Proceeds in respect of
an Open-End Investment Realized after the Earliest Distribution Date relating to a Plan Interest, but on or prior to the next Subsequent Open-End Distribution Date relating to such Plan Interest, the previously designated percentage share thereof
with respect to such Plan Interest shall accrue notional interest at the Participant Applicable Rate from the date of the Realization relating to such Proceeds until such next Subsequent Open-End Distribution Date. On such Subsequent Open-End
Distribution Date, (A) the previously designated percentage share of such Proceeds (and any accrued notional interest thereon) relating to such Plan Interest will be reduced by the Applicable Reduction Amount, in accordance with the method
described in Section 10(a)(i), and (B) after such reduction, such previously designated percentage share of such Proceeds relating to such Plan Interest, if any, will be distributed to the applicable Participant. 
  

 15 

 (iii) Until there are no more Subsequent Open-End Distribution Dates, with respect to any
Proceeds in respect of an Open-End Investment Realized after the most recent Subsequent Open-End Distribution Date relating to a Plan Interest, but on or prior to the next Subsequent Open-End Distribution Date relating to such Plan Interest, the
previously designated percentage share thereof relating to such Plan Interest will accrue notional interest at the Participant Applicable Rate from the date of the Realization relating to such Proceeds until such next Subsequent Open-End
Distribution Date. On such Subsequent Open-End Distribution Date, (A) the previously designated percentage share of such Proceeds (and any accrued notional interest thereon) relating to such Plan Interest will be reduced by the Applicable
Reduction Amount, in accordance with the method described in Section 10(a)(i), and (B) after such reduction, the previously designated percentage share of such Proceeds relating to such Plan Interest, if any, will be distributed to the
applicable Participant. 
 (d) Distributions in Connection with a Termination of Employment. Terms and conditions relating to any
distribution of a Participant’s vested Plan Interest in connection with a termination of such Participant’s employment shall be set forth in such Participant’s applicable Award Certificate. Such terms and conditions with respect to
any Fiscal Year Award shall be consistent with analogous terms and conditions set forth in the annual year-end equity compensation awards granted to such Participant in respect of such Fiscal Year. 
 (e) Distributions in Connection with a Plan Termination. Upon a termination of the Plan, subject to any Cancellation Event, the Firm shall
distribute to each Participant an amount equal to the sum of such Participant’s Plan Termination Values (with notional interest accruing thereon at the Participant Applicable Rate from the date of such termination until the date of
distribution) in accordance with the method described in Section 10(a)(i) on the applicable Distribution Date. 
 Section 11.
Distributions and Other Payments Generally. 
 (a) References in the Plan to distributions or other payments on a given date
(including any Distribution Date) shall mean on such date or as soon thereafter as administratively practicable; provided that such distributions or other payments shall be made prior to December 31 of the calendar year in which the
applicable Distribution Date or other payment date occurs or, if later, no more than 21/2 months after such Distribution Date or other payment date. The Proceeds relating to a Realization (or partial Realization) with respect to a Notional Plan
Investment (after the reduction of such Proceeds pursuant to Section 10, as applicable) shall accrue interest at the Participant Applicable Rate from the date of the applicable Distribution Date to the actual date of distribution permitted by
this Section 11(a). 
  

 16 

 (b) The Firm shall not accelerate distributions or other payments under the Plan, except to the extent
accelerating distributions or other payments under the Plan is not prohibited by Section 409A and would not result in such Eligible Person being required to recognize income for United States federal income tax purposes prior to the relevant
Distribution Date or in an Eligible Person incurring interest or additional tax under Section 409A. 
 (c) Notwithstanding any provision
of the Plan or in the Award Certificate to the contrary, if the Firm considers a Participant to be one of its “specified employees” under Section 409A at the time of termination of such Participant’s employment, any distribution
or other payment of any deferred amounts shall commence on the date that is six months after such termination of employment. 
 (d)
Notwithstanding the other provisions of the Plan or in any Award Certificate, distributions or other payments under the Plan shall be deferred with respect to a Participant if, at the time scheduled for such distribution or payment (whether on a
Distribution Date or at some other time), Morgan Stanley considers such Participant to be one of its executive officers and such Participant’s compensation may not be fully deductible by virtue of Section 162(m) of the Code. This deferral
shall continue until the termination of such Participant’s employment with the Firm, and the Firm shall make any distribution or other payment in respect of such Participant’s vested Plan Interest as soon thereafter as administratively
practicable; provided that if Morgan Stanley considers such Participant to be one of its “specified employees” under Section 409A at the time of termination of such Participant’s employment with the Firm, such deferral
shall continue until the date that is six months after such termination of employment, and the Firm shall make any distribution or other payment in respect of such Participant’s vested Plan Interest as soon thereafter as administratively
practicable; and provided, further, that in the event of such Participant’s death or a corporate event relating to the ownership of Morgan Stanley, such distribution or payment shall be made in accordance with such Participant’s
Award Certificate. 
 (e) Unless otherwise set forth in the International Supplement, all distributions or other payments under the Plan
shall be made in United States dollars or the Participant’s local currency. 
 (f) The Firm may, in its sole discretion and to the
maximum extent permissible under applicable Legal Requirements, withhold from or offset against any distribution or other payment to which a Participant may be entitled under the Plan an amount sufficient to satisfy any obligation owed by such
Participant to the Firm. 
  

 17 

 Section 12. Transferability. 
 (a) No Participant may transfer (other than by will or by the laws of descent and distribution), pledge, hypothecate or otherwise dispose of or encumber
such Participant’s Total Notional Investment. 
 (b) During a Participant’s lifetime, the Firm shall make any distribution or other
payment in respect of such Participant’s Plan Interest only to such Participant. A Participant may designate in writing on a beneficiary designation form, in accordance with procedures established by the Executive Compensation Department, a
beneficiary or beneficiaries (including the Participant’s estate) to receive all or part of the amounts that the Firm may be obligated to pay or distribute in respect of such Participant’s Plan Interest in the event of such
Participant’s death. A Participant may replace or revoke a designation of a beneficiary at any time by filing a new beneficiary designation form. 
 Section 13. Withholding or Other Deductions. The Firm may withhold or otherwise deduct from any amounts distributable or otherwise payable under the Plan any such taxes or other amounts as may be required to be
withheld or otherwise deducted pursuant to applicable Legal Requirements. 
 Section 14. Special Awards. In the sole discretion of the
Firm, an Eligible Employee may be eligible to receive a Special Award. Upon the grant of such Special Award, such Eligible Employee shall be treated as a Participant for all purposes of the Plan. Notwithstanding anything to the contrary in the Plan,
terms and conditions relating to such Participant’s participation in the Plan may differ from the analogous terms and conditions set forth in the Plan, in which case such terms and conditions shall be set forth in such Participant’s Award
Certificate. 
 Section 15. Termination and Amendment. 
 (a) The Firm may terminate the Plan at any time in its sole discretion, subject to Section 10(e). 
 (b)
The Firm may also alter, amend or modify the Plan, any Award Certificate or the International Supplement at any time in its sole discretion. These amendments may include changes that the Firm considers necessary or advisable as a result of changes
in any, or the adoption or interpretation of any new, Legal Requirement. The Firm may not amend or modify the Plan, any Award Certificate or the International Supplement in a manner that would materially impair a Participant’s participation in
the Plan without the Participant’s consent; provided, however, that the Firm may, without a Participant’s consent alter, amend or modify the Plan, any Award Certificate or the International Supplement in any manner that the
Firm considers necessary or advisable to comply with any Legal Requirement (including Section 409A) and to ensure that no Participant would be required to recognize income for United States federal 

  

 18 

 
income tax purposes prior to the relevant Distribution Date or would result in a Participant incurring interest or additional tax under Section 409A. No
such action shall give rise to a claim of constructive termination on the part of such Participant. Any amendment or waiver of a provision of the Plan, any Award Certificate or the International Supplement (other than any amendment or waiver
applicable to all Participants, or similarly situated Participants, generally), which amendment or waiver operates in a Participant’s favor or confers a benefit on the Participant, must be in writing and signed by the Global Director 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. The Firm shall notify Participants of any amendment to the Plan, any Award Certificate or the
International Supplement that is material, and shall notify affected Participants of any amendment that affects such Participants’ rights. 
 Section 16. Miscellaneous. 
 (a) The headings of sections herein are included solely for the convenience of reference and
shall not affect the meaning of any of the provisions of the Plan. 
 (b) THE PLAN AND ALL RIGHTS UNDER THE PLAN (INCLUDING UNDER ANY AWARD
CERTIFICATE OR THE INTERNATIONAL SUPPLEMENT) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CONFLICTS IN CHOICE OF LAW, RULE OR PRINCIPLE THAT MIGHT OTHERWISE REFER THE INTERPRETATION
OF THE PLAN ON ANY SUCH RIGHT TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION. THE COURTS OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION OVER THE PLAN AND ANY DISPUTE ARISING IN CONNECTION WITH THE PLAN, A PARTICIPANT’S PARTICIPATION IN THE PLAN
OR RIGHTS UNDER THE PLAN. 
 (c) Except as set forth in the International Supplement, neither the Plan, any Award Certificate, the
International Supplement nor the Descriptive Materials shall create or be construed to create a trust with respect to the Plan nor create or be construed to create a separate fund of any kind or a fiduciary relationship between the Firm, a
Participant or any other person nor create or be construed to create a segregation by the Firm of assets to fund the Plan. To the extent any Participant has a right to receive distributions or other payments from the Firm pursuant to the Plan, such
right shall be no greater than the right of any unsecured general creditor of the Firm. 
 (d) The Firm has no obligation to invest amounts
corresponding to a Participant’s Participant Allocation or Notional Advance and/or any Proceeds with respect to Notional Plan Investments. If the Firm invests amounts corresponding to a Participant’s Participant Allocation or Notional
Advance in 

  

 19 

 
any Notional Plan Investment, such investment shall not confer on such Participant any right or interest in any such Notional Plan Investment. The
Participant shall have no ownership or other interest in any financial or other instrument or arrangement that the Firm may acquire or enter into to hedge its obligations under the Plan. 
 (e) A Participant’s participation in the Plan shall be conditioned on the Firm making any filings and the Firm’s receipt of any consents or
authorizations required to comply with, or required to be obtained under, applicable Legal Requirements. To the extent necessary to comply with the local Legal Requirements of any jurisdiction in which the Firm implements the Plan, the Firm may
supplement the Plan and/or the Award Certificate with a supplement (the “International Supplement”), which shall set forth certain terms and conditions applicable to such implementation in such jurisdiction. If there is a conflict
between the provisions of the Plan and the provisions contained in the International Supplement on an issue pertinent to such jurisdiction, then the provisions of such International Supplement shall govern. 
 (f) Neither the Plan, any Award Certificate, the International Supplement, the Descriptive Materials nor any interpretation, determination or other
action taken or omitted to be taken pursuant to the Plan shall be construed as guaranteeing a Participant’s employment, a discretionary bonus or any particular level of bonus, compensation or benefits, as giving a Participant any right to
continued employment, during any period, nor shall they be construed as giving a Participant any right to be reemployed by the Firm following any termination of employment. The Firm reserves the right not to make available any plan similar to the
Plan (in whole or in part), nor to permit any future participation after Allocations are made with respect to Above Base Compensation in respect of any given Fiscal Year or after a Special Award is granted. 
 (g) If any provision of the Plan or any Award Certificate is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as
to any Participant, or would disqualify the Plan or such Award Certificate under any Legal Requirement, such provision shall be construed or deemed amended to conform to any such Legal Requirement, or if it cannot be construed or deemed amended
without materially altering the intent of the Plan or such Award Certificate, then such provision shall be stricken as to such jurisdiction or as to such Participant, and the remainder of the Plan or such Award Certificate shall remain in full force
and effect. 
 [END OF THE PLAN] 
 [REMAINDER OF PAGE LEFT BLANK] 
  

 20Directors' Equity Capital Accumulation Plan, as amended through 03/19/2007.

 EXHIBIT 10.2 
 MORGAN STANLEY 
 DIRECTORS’ EQUITY CAPITAL ACCUMULATION PLAN 
 (as amended through March 19, 2007) 
 Section 1. Purpose 
 Morgan Stanley, a Delaware corporation (the “Company”), hereby adopts the Morgan
Stanley Directors’ Equity Capital Accumulation Plan (the “Plan”). The purpose of the Plan is to promote the long-term growth and financial success of the Company by attracting, motivating and retaining non-employee directors of
outstanding ability and assisting the Company in promoting a greater identity of interest between the Company’s non-employee directors and its stockholders. 
 Capitalized terms used herein without definition have the meanings ascribed thereto in Section 22. 
 Section 2.
Eligibility 
 Only directors of the Company who are not employees of the Company or any affiliate of the Company (the “Eligible
Directors”) shall participate in the Plan. 
 Section 3. Plan Operation 
 (a) Administration. Other than as provided in Section 5(c)(v), the Plan requires no discretionary action by any administrative body with
regard to any transaction under the Plan. To the extent, if any, that questions of administration arise, these shall be resolved by the Board. The Board may, in its discretion, delegate to the Chief Financial Officer, the Chief Legal Officer, the
Secretary of the Company or to one or more officers of the Company any or all authority and responsibility to act pursuant to the Plan. All references to the “Plan Administrators” in the Plan shall refer to the Board, or the Chief
Financial Officer, the Chief Legal Officer, the Secretary or to one or more officers of the Company if the Board has delegated its authority pursuant to this Section 3(a). The determination of the Plan Administrators on all matters within their
authority relating to the Plan shall be conclusive. 
 (b) No Liability. The Plan Administrators shall not be liable for any action or
determination made in good faith with respect to the Plan or any award hereunder, and the Company shall indemnify and hold harmless the Plan Administrators from all losses and expenses (including reasonable attorneys’ fees) arising from the
assertion or judicial determination of any such liability. 
 Section 4. Shares of Stock Subject to the Plan 
 (a) Stock. Awards under the Plan shall relate to shares of Stock. 
 (b) Shares Available for Awards. Subject to Section 4(c) (relating to adjustments upon changes in capitalization), as of any date, the total number of shares of Stock with respect to which awards may be
granted under the Plan shall be equal to the excess (if any) of (i)

 
1,700,000 shares over (ii) the sum of (a) the number of shares subject to outstanding awards granted under the Plan and (b) the number of
shares previously issued pursuant to the Plan. In accordance with (and without limitation upon) the preceding sentence, shares of Stock covered by awards granted under the Plan that are canceled or expire unexercised shall again become available for
awards under the Plan. Shares of Stock that shall be issuable pursuant to the awards granted under the Plan shall be authorized and unissued shares, treasury shares or shares of Stock purchased by, or on behalf of, the Company in open-market
transactions. 
 (c) Adjustments. In the event of any merger, reorganization, recapitalization, consolidation, sale or other
distribution of substantially all of the assets of the Company, any stock dividend, split, spin-off, split-up, split-off, distribution of cash, securities or other property by the Company, or other change in the Company’s corporate structure
affecting the Stock, then the following shall be automatically adjusted in order to prevent dilution or enlargement of the benefits or potential benefits intended to be awarded under the Plan: 
 (i) the aggregate number of shares of Stock reserved for issuance under the Plan, 
 (ii) the number of shares of Stock subject to outstanding awards, 
 (iii) the number of Stock Units credited pursuant to Sections 6(a) and 7(a) of the Plan, 
 (iv) the per share purchase price of Stock subject to any stock options granted pursuant to the Plan, and 
 (v) the number of shares to be granted as Director Stock pursuant to Section 6(a) or to be granted pursuant to any other automatic
awards that may be provided for under the Plan in the future. 
 (d) Types of Award. The Company’s stockholders originally
approved the Plan on April 19, 1996, and approved amendments to the Plan on March 19, 2002. The types of award authorized by the stockholders under the Plan are Director Stock, Stock Units, shares of Stock awarded at an Eligible
Director’s election pursuant to Section 8 and stock options. 
 Section 5. Stock Options 
 (a) Effective as of February 8, 2005 (the “Transition Date”), no additional stock options will be awarded under the Plan.

 (b) Section 5(a) shall not impair the rights of any person in any stock option that was awarded under the Plan prior to the
Transition Date. All such stock options shall remain subject to the terms and conditions applicable thereto. 
 (c) The following terms and
conditions apply to stock options issued under the Plan, including without limitation all stock options issued prior to the Transition Date: 
  

 2 

 (i) Nontransferability. No stock option granted pursuant to the Plan shall be
sold, assigned or otherwise transferred by an Eligible Director other than by will or the laws of descent or distribution and any such stock option may be exercised during the Eligible Director’s lifetime only by such Eligible Director.

 (ii) Limitation on Exercise. No stock option granted pursuant to this Plan may be exercised for a period of six
(6) months from the date such stock option was granted. 
 (iii) Effect of Termination. 
 (A) If an Eligible Director’s service as a director of the Company terminates for a reason other than for Cause, then any stock
option granted to such Eligible Director shall remain exercisable following the date of such Eligible Director’s termination of service in accordance with the following provisions: 
 (a) Disability, Normal Retirement or Death. If service terminates by reason of Disability, Normal Retirement or death, until the
expiration date of the stock option. 
 (b) Other. If service terminates for any other reason (except for Cause), until the
earlier of 90 days after the termination date and the expiration date of the stock option. 
 (B) If an Eligible Director is
terminated for Cause, all stock options granted under the Plan to such Eligible Director shall be canceled and shall no longer be exercisable, effective on the date of such Eligible Director’s termination for Cause. 
 (iv) Expiration Date of Stock Options. All stock options granted under the Plan shall expire on the tenth anniversary of the date
on which they are granted. 
 (v) Extension of Exercisability. Notwithstanding any other provision hereof, the Board
shall have the authority, in its discretion, to amend any outstanding stock option granted pursuant to the Plan to extend the exercisability thereof; provided, however, that no such amendment shall cause such stock
option to remain exercisable beyond its original expiration date. 
 (d) Notwithstanding Section 5(a), stock options remain one of the
types of award that the stockholders of the Company have authorized for the Plan, and Section 5(a) shall not impair the authority of the Board under Section 13 to amend the Plan in the future to provide for awards of stock options without
obtaining additional stockholder approval. 
  

 3 

 Section 6. Initial and Annual Awards of Director Stock and Stock Units 
 (a) Awards Granted. 
 (i) Initial Awards. On the first day of the calendar month following the month in which any person (other than a person who is already an Eligible Director) becomes an Eligible Director, otherwise than by reason of being elected to
the Board at an Annual Meeting, (A) such Eligible Director shall be entitled to receive a number of shares of Director Stock equal to the number obtained by dividing $125,000 by the Fair Market Value of a share of Stock on such day and
(B) the Company shall credit an equal number of Initial Stock Units, representing the other half of the initial equity award, to such Eligible Director’s Mandatory Stock Unit Account; provided, however, that if such a person
is elected, appointed or otherwise becomes an Eligible Director less than 60 days prior to the Annual Meeting in any year, then such Eligible Director shall receive no shares of Director Stock and no Initial Stock Units shall be credited to such
Eligible Director’s Mandatory Stock Unit Account pursuant to this Section 6(a)(i). 
 (ii) Subsequent Awards.
As of the date of each Annual Meeting, (A) each Eligible Director, including, without limitation, any Eligible Director who becomes a member of the Board by reason of being elected to the Board at such Annual Meeting, shall be entitled to
receive a number of shares of Director Stock equal to the number obtained by dividing $125,000 by the Fair Market Value of a share of Stock on such day and (B) the Company shall credit an equal number of Annual Stock Units, representing the
other half of the annual equity award, to the Mandatory Stock Unit Account of each Eligible Director; provided, however, that such Eligible Director shall continue to serve as a director of the Company after such Annual Meeting.

 (b) Limitation on Transfer. Director Stock may not be sold, transferred, pledged, assigned or otherwise conveyed by an Eligible
Director for a period of six (6) months from the date such Stock is awarded. Neither Annual Stock Units nor Initial Stock Units may be sold, transferred, pledged, assigned or otherwise conveyed by an Eligible Director until distributed in
accordance with Section 7 or Section 9. 
 (c) Deferral of Awards. Annual Stock Units and Initial Stock Units credited to
the Mandatory Stock Unit Account of each Eligible Director shall be deferred in accordance with Section 7(b). An Eligible Director may elect to defer the receipt of all or a portion of the Director Stock by making an election pursuant to
Section 7(a), in which case there shall be credited to the Eligible Director’s Elective Stock Unit Account a number of Elective Stock Units equal to the number of shares of Director Stock being deferred. 
 Section 7. Deferral Elections and Distributions 
 (a) Elective Stock Unit Account and Cash Account Deferral Elections. Each Eligible Director may make a Deferral Election to defer receipt of (i) all or part of any or all of such Eligible Director’s Retainers or
(ii) any or all shares of Director Stock. An Eligible Director may make a Deferral Election with respect to all or part of any or all Retainers or shares 

  

 4 

 
of Director Stock by submitting a Deferral Election Form to the Secretary, indicating: (i) the Deferred Amount or a percentage of such Retainer or
shares of Director Stock to be deferred; (ii) the Distribution Commencement Date, in accordance with Section 7(c); (iii) whether distributions are to be made in a lump sum, installments or a combination thereof, in accordance with
Section 7(e); (iv) the percentage or amount of (x) Retainers to be deferred and credited to a Cash Account or (y) Retainers and/or Director Stock to be deferred and credited to the Elective Stock Unit Account; and (v) from
which Account each distribution is to be made on each Distribution Commencement Date. Deferral Election Forms must be submitted before the start of the fiscal year during which the Eligible Director will earn such Retainer or shares of Director
Stock to be deferred; provided, however, that in the case of an Eligible Director who is newly elected or appointed to the Board, such Eligible Director’s Deferral Election Form relating to the Retainer or
shares of Director Stock earned during the fiscal year of such election or appointment may be submitted within 30 days after the date of such election or appointment. In all cases, a Deferral Election Form shall be effective only with respect to
such Retainers or shares of Director Stock that are earned after the Deferral Election is made. All Deferral Elections (including indications on the Deferral Election Form as to Distribution Commencement Date and form of distributions), once made,
shall be irrevocable. Notwithstanding the foregoing, a Deferral Election may be superseded with respect to future deferrals of an Eligible Director’s Retainers and grants of Director Stock by submitting a new Deferral Election Form to the
Secretary, in which case such new Deferral Election shall be effective starting with the Retainer or shares of Director Stock earned in the fiscal year following the year in which such new Deferral Election Form is submitted. An Eligible Director
may designate, in any Deferral Election Form, one or more beneficiaries to receive any distributions under the Plan upon the Eligible Director’s death, and may change such designation at any time by submitting a new Deferral Election Form to
the Secretary. 
 (i) Stock Unit Deferral. An Eligible Director may elect to have all or part of the Deferred Amount credited to an
Elective Stock Unit Account in the form of Elective Stock Units. Credits to an Eligible Director’s Elective Stock Unit Account will be made as follows: 
 (A) Deferral of Retainers. As of each Retainer Payment Date, the Company shall credit to the Elective Stock Unit Account an amount
equal to any Deferred Amount resulting from an Eligible Director’s deferral of all or part of such Eligible Director’s Retainers. The number of Elective Stock Units credited to the Elective Stock Unit Account shall be the amount obtained
by dividing (X) the Deferred Amount by (Y) the Fair Market Value of a share of Stock on such Retainer Payment Date. 
 (B) Deferral of Director Stock. An Eligible Director who defers the receipt of Director Stock shall have credited to the Elective Stock Unit Account a number of Elective Stock Units equal to the number of shares of Director Stock
deferred. The credit will be made as of the date on which the Eligible Director becomes entitled to receive the Director Stock. 
 (ii)
Cash Deferral. An Eligible Director may elect to have all or part of the Deferred Amount derived from his or her Retainers credited to a Cash Account. 

  

 5 

 
The Deferred Amount allocated to the Cash Account shall be credited thereto on the date on which the Eligible Director becomes entitled to payment of such
Deferred Amount. As of the last day of each fiscal quarter and the Eligible Director’s Service Termination Date, the Eligible Director’s Cash Account will be credited with an Interest Equivalent equal to (i) the Rate of Interest,
multiplied by (ii) the Average Daily Cash Balance, multiplied by (iii) the number of days during the fiscal quarter or other period during which such Cash Account had a positive balance, divided by (iv) 365. 
 (b) Mandatory Stock Unit Account Deferral Elections. An Eligible Director may elect to defer receipt of Annual Stock Units and Initial Stock Units
by submitting a Deferral Election Form to the Secretary indicating: (i) the Distribution Commencement Date for such Mandatory Stock Unit Account, in accordance with Section 7(d) and (ii) whether distributions are to be made in a lump
sum, installments or a combination thereof, in accordance with Section 7(e). Deferral Election Forms must be submitted prior to the first day of the fiscal year during which the Eligible Director will earn the Annual Stock Units and Initial
Stock Units to be deferred; provided, however, that in the case of an Eligible Director who is newly elected or appointed to the Board, such Eligible Director’s Deferral Election Form relating to the Annual Stock Units
and/or Initial Stock Units earned during the fiscal year of such election or appointment may be submitted within 30 days after the date of such election or appointment. In all cases, a Deferral Election Form shall be effective only with respect to
the Annual Stock Units and Initial Stock Units that are earned after the Deferral Election is made. All Deferral Elections with respect to any Annual Stock Units and Initial Stock Units, once made, shall be irrevocable. Notwithstanding the
foregoing, a Deferral Election relating to Annual Stock Units may be superseded with respect to future deferrals of an Eligible Director’s Annual Stock Units by submitting a new Deferral Election Form to the Secretary, in which case such new
Deferral Election shall be effective starting with the Annual Stock Units earned in the fiscal year following the year in which such new Deferral Election Form is submitted. An Eligible Director may designate, in any Deferral Election Form, one or
more beneficiaries to receive any distributions under the Plan upon the Eligible Director’s death, and may change such designation at any time by submitting a new Deferral Election Form to the Secretary. 
 (c) Distribution Commencement Date for Elective Stock Unit Account and Cash Account. Each Eligible Director shall designate on the Deferral
Election Form one of the following dates as a Distribution Commencement Date with respect to amounts credited to the Elective Stock Unit Account or Cash Account thereafter: (A) the date of such Eligible Director’s death; (B) such
Eligible Director’s Service Termination Date; (C) the first day of a calendar month specified by such Eligible Director; or (D) the earliest to occur of (A), (B) or (C). If an Eligible Director fails to designate one of the
foregoing alternatives as the Distribution Commencement Date for the Elective Stock Unit Account and Cash Account, the Eligible Director shall be deemed to have designated alternative (D). Unless a Deferral Election Form designates a different
Distribution Commencement Date for the Eligible Director’s Elective Stock Unit Account than for such Eligible Director’s Cash Account, the Eligible Director shall be deemed to have selected the same Distribution Commencement Date for both
Accounts. Notwithstanding any election made by an Eligible Director on any Deferral Election Form or any other provision of the Plan, in the event of such Eligible Director’s death, all amounts credited to such Eligible Director’s Elective
Stock Unit Account and Cash Account will be paid in a lump 

  

 6 

 
sum to such Eligible Director’s beneficiary (or if no beneficiary has been designated, to such Eligible Director’s estate) as soon as
administratively practicable following the date of such Eligible Director’s death. 
 (d) Distribution Commencement Date for
Mandatory Stock Unit Account. Notwithstanding any provision to the contrary in this Plan or any Deferral Election Form, no amounts credited to an Eligible Director’s Mandatory Stock Unit Account shall be distributed prior to such Eligible
Director’s Service Termination Date. Each Eligible Director may designate on the Deferral Election Form for such Eligible Director’s Mandatory Stock Unit Account one of the following dates as a Distribution Commencement Date with respect
to amounts credited to the Mandatory Stock Unit Account: (A) the date of such Eligible Director’s death; (B) such Eligible Director’s Service Termination Date; or (C) the later to occur of (B) or first day of a calendar
month specified by such Eligible Director. If an Eligible Director fails to designate one of the foregoing alternatives as the Distribution Commencement Date for the Mandatory Stock Unit Account, such Eligible Director shall be deemed to have
designated alternative (B). Notwithstanding any election made by an Eligible Director on any Deferral Election Form or any other provision of the Plan, in the event of such Eligible Director’s death, all amounts credited to such Eligible
Director’s Mandatory Stock Unit Account will be paid in a lump sum to such Eligible Director’s beneficiary (or if no beneficiary has been designated, to such Eligible Director’s estate) as soon as administratively practicable
following the date of such Eligible Director’s death. 
 (e) Distribution Method. An Eligible Director shall state on each
Deferral Election Form whether distributions that are subject to such Deferral Election Form shall be made in (A) a lump sum, (B) no more than 120 monthly, 40 quarterly or 10 annual installments or (C) in part as provided in
clause (A) and in part as provided in clause (B); provided, however, that any distributions following an Eligible Director’s death shall be paid in a lump sum to such Eligible Director’s beneficiary (or if no
beneficiary has been designated, to such Eligible Director’s estate) as soon as administratively practicable following the date of such Eligible Director’s death. The amount to be distributed in any installment pursuant to a specific
Deferral Election Form shall be determined by dividing the balance in the Cash Account or the number of Stock Units in the Mandatory Stock Unit Account or Elective Stock Unit Account, as the case may be, that are subject to such Deferral Election
Form by the number of remaining installments. If an Eligible Director receives a distribution on an installment basis, undistributed Deferred Amounts shall remain subject to the provisions of this Section 7. 
 (f) Form of Distributions. All distributions from the Cash Account shall be paid in cash. Distributions made from the Elective Stock Unit Account
and the Mandatory Stock Unit Account shall be for a number of whole shares of Stock equal to the number of whole Stock Units to be distributed and cash in lieu of any fractional share (determined by using the Fair Market Value of a share of Stock on
the date on which such distributions are distributed). 
 (g) Dividend Equivalents. If there are Stock Units in an Eligible
Director’s Elective Stock Unit Account or Mandatory Stock Unit Account on a dividend record date with respect to the Company’s Stock, the Elective Stock Unit Account and/or Mandatory Stock Unit Account, as applicable, shall be credited, on
the dividend payment date for such dividend record date, with an additional number of Stock Units equal to (i) the cash dividend paid on one share of Stock, multiplied by (ii) the number of Stock Units in such Account on such dividend
record date, divided by (iii) the Fair Market Value of a share of Stock on the dividend payment date. 
  

 7 

 (h) Deferral of Meeting Fees. As of the Transition Date, the Company does not pay Meeting Fees. In
the event that the Company determines in the future to pay Meeting Fees to Eligible Directors, and in the case of Meeting Fees deferred prior to the Transition Date, the provision of this Section 7 relating to elective deferrals of Retainers
and Director Stock, and the provisions of Section 8 relating to Stock Elections, shall apply to such Meeting Fees mutatis mutandis; provided, however, that any Deferred Amount resulting
from deferral of all or part of an Eligible Director’s Meeting Fees (other than Meeting Fees for meetings of the Board or any committee thereof held on the date of an Annual Meeting) will initially be credited to the Cash Account as of the date
on which the Eligible Director becomes entitled to payment of the Meeting Fees, shall thereafter be credited with Interest Equivalents as calculated under Section 7(a)(ii) (such Deferred Amount as increased by such Interest Equivalents being
the “Adjusted Deferred Amount”) and will thereafter be debited from the Cash Account and credited to the Eligible Director’s Elective Stock Unit Account as of the date of the next Annual Meeting following the date of such
meeting (or, if the Eligible Director’s service on the Board terminates prior to the next Annual Meeting following the date of such meeting, as of the first business day following his or her Service Termination Date), with the number of Stock
Units credited to the Elective Stock Unit Account being the amount obtained by dividing (i) the relevant Adjusted Deferred Amount by (ii) the Fair Market Value of a share of Stock on the date of such Annual Meeting or the Service
Termination Date, as applicable. 
 Section 8. Election to Receive Stock 
 (a) Election. An Eligible Director may make a Stock Election to receive all or part of any or all of such Eligible Director’s Retainers in
shares of Stock by submitting a Stock Election Form to the Secretary indicating the Stock Amount. A Stock Election Form shall be effective only with respect to Retainers payable after the date on which the Secretary receives the Stock Election Form.
Each Stock Election, once made, shall be irrevocable. Notwithstanding the foregoing, a Stock Election may be superseded with respect to future payments of an Eligible Director’s Retainers by submitting a new Stock Election Form to the
Secretary. 
 (b) Payment in Stock. As of each Retainer Payment Date, an Eligible Director who has made a Stock Election will receive,
in lieu of the Retainer elected to be received in Stock, a whole number of shares of Stock (but not fractional shares) determined by dividing: 
 (i) the amount of the Retainer that is payable to the Eligible Director on the applicable Retainer Payment Date and is subject to a Stock Election; by 
 (ii) the Fair Market Value of a share of Stock on such Retainer Payment Date. 
 In no circumstances shall an Eligible Director be entitled to receive, or shall the Company have any obligation to issue to the Eligible Director, any fractional share
of Stock. In lieu of any fractional share of Stock, the Eligible Director shall be entitled to receive, and the Company shall be obligated to pay to such Eligible Director, cash equal to the value of any fractional share of Stock (determined by
using the Fair Market Value of a share of Stock on such Retainer Payment Date). 
  

 8 

 Section 9. Governmental Service 
 (a) Governmental Service Resignation. Notwithstanding any election made by an Eligible Director on any Deferral Form, if an Eligible Director resigns as a director of the Company as a result of accepting
employment at a governmental department or agency, self-regulatory agency or other public service employer (a “Governmental Employer”) (such resignation is referred to herein as a “Governmental Service Resignation”), then
(i) provided that the Eligible Director provides the Company with satisfactory evidence demonstrating that as a result of such employment the divestiture of his or her continued interest in Company equity awards or continued ownership of Stock
is reasonably necessary to avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to the Eligible Director at such Governmental Employer, all amounts credited to the Eligible
Director’s Elective Stock Unit Account and Mandatory Stock Unit Account will be distributed in a lump sum in accordance with Section 7(f), and all transfer restrictions will lift on shares of Director Stock held by the Eligible Director,
on or as soon as administratively practicable after the date of such Governmental Service Resignation, and (ii) provided that the Eligible Director provides the Company with satisfactory evidence demonstrating that as a result of such
employment the divestiture of the Eligible Director’s continued interest in his or her Cash Account is reasonably necessary to avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to
the Eligible Director at such Governmental Employer, all amounts credited to the Eligible Director’s Cash Account will be distributed in a lump sum on or as soon as administratively practicable after the date of such Governmental Service
Resignation. 
 (b) Governmental Service following Termination of Service. Notwithstanding any election made by an Eligible Director
on any Deferral Form, if, following the termination of an Eligible Director’s service as a director of the Company, the Eligible Director accepts employment with a Governmental Employer, then (i) provided that the Eligible Director
provides the Company with satisfactory evidence demonstrating that as a result of such employment the divestiture of the Eligible Director’s continued interest in Company equity awards or continued ownership of Stock is reasonably necessary to
avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to the Eligible Director at such Governmental Employer, all amounts credited to the Eligible Director’s Elective Stock Unit
Account and Mandatory Stock Unit Account will be distributed in a lump sum in accordance with Section 7(f) on or as soon as administratively practicable after, and all transfer restrictions will lift on shares of Director Stock held by the
Director on, the date on which the Eligible Director provides the Company with such satisfactory evidence, and (ii) provided that the Eligible Director provides the Company with satisfactory evidence demonstrating that as a result of such
employment the divestiture of the Eligible Director’s continued interest in his or her Cash Account is reasonably necessary to avoid the violation of U.S. federal, state or local or non-U.S. ethics law or conflicts of interest law applicable to
the Eligible Director at such Governmental Employer, all amounts credited to the Eligible Director’s Cash Account will be distributed in a lump sum on or as soon as administratively practicable after the date on which the Eligible Director
provides the Company with such satisfactory evidence. 
 Section 10. Fair Market Value 
 “Fair Market Value” shall mean, with respect to each share of Stock for any day: 
  

 9 

 (a) if the Stock is listed for trading on the New York Stock Exchange, (i) the volume weighted
average price of the Stock, reflecting composite trading between 9:30 a.m. and 4:00 p.m. (Eastern time) on such date, as reported by the Bloomberg Professional Service on the MS Equity Volume at Price page under the “VWAP” field, at 4:00
p.m. on such date, rounded up to the nearest whole cent, or, if not so reported, as reported by another third party source to which the Company has access on such date, or if no such reported sale of the Stock shall have occurred on such date, on
the most recent date on which such a reported sale occurred; or (ii) if the volume weighted average price is not available from a third party source to which the Company has access on such date or on the most recent date on which a reported
sale occurred, “Fair Market Value” will be the average of the high and low prices of the Stock as reported on the Consolidated Transaction Reporting System on such date, rounded up to the nearest whole cent, or if no such reported sale of
the Stock shall have occurred on such date, on the most recent date on which such a reported sale occurred; or 
 (b) if the Stock is not so
listed, but is listed on another national securities exchange, the closing price, regular way, of the Stock on such exchange, rounded up to the nearest whole cent, on which the largest number of shares of Stock have been traded in the aggregate on
the preceding twenty trading days, or, if no such reported sale of the Stock shall have occurred on such date on such exchange, on the most recent date on which such a reported sale occurred on such exchange, or 
 (c) if the Stock is not listed for trading on a national securities exchange, the average of the closing bid and asked prices as reported by the National
Association of Securities Dealers, rounded up to the nearest whole cent, or, if no such prices shall have been so reported for such date, on the most recent date for which such prices were so reported. 
 Section 11. Issuance of Stock 
 (a)
Restrictions on Transferability. All shares of Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Company may deem advisable or legally necessary under any laws, statutes, rules,
regulations and other legal requirements, including, without limitation, those of any stock exchange upon which the Stock is then listed and any applicable federal, state or foreign securities law. 
 (b) Compliance with Laws. Anything to the contrary herein notwithstanding, the Company shall not be required to issue any shares of Stock under
the Plan if, in the opinion of legal counsel to the Company, the issuance and delivery of such shares would constitute a violation by the Eligible Director or the Company of any applicable law or regulation of any governmental authority, including,
without limitation, federal and state securities laws, or the regulations of any stock exchanges on which the Company’s securities may then be listed. 
 Section 12. Withholding Taxes 
 The Company may require as a condition of delivery of any shares of Stock that the
Eligible Director remit (i) in cash, (ii) by tendering (or attesting to the ownership of) shares of Stock that the Company determines will not result in unfavorable accounting treatment or (iii) by the Company withholding shares of
Stock, an amount sufficient to satisfy all foreign, federal, state, local and other governmental withholding tax requirements relating thereto (if any) and any 

  

 10 

 
or all indebtedness or other obligation of the Eligible Director to the Company or any of its subsidiaries. Any shares tendered or withheld pursuant to this
Section 12 will be valued at Fair Market Value on the relevant payment or exercise date, as applicable. 
 Section 13. Plan Amendments and
Termination 
 The Board may suspend or terminate the Plan at any time, in whole or in part. Termination of the Plan shall not adversely
affect the rights of Eligible Directors in Mandatory Stock Unit Accounts, Cash Accounts and Elective Stock Unit Accounts outstanding at the time of termination. Notwithstanding any termination of the Plan, distributions to Eligible Directors in
respect of their Mandatory Stock Unit Accounts, Cash Accounts and Elective Stock Unit Accounts shall be made at the times and in the manner provided herein. 
 The Board may also alter, amend or modify the Plan at any time. These amendments may include (but are not limited to) changes that the Board considers necessary or advisable as a result of changes in, or the adoption
or interpretation of, any law, regulation, ruling, judicial decision or accounting standards (collectively, “Legal Requirements”). The Board may not amend or modify the Plan in a manner that would materially impair an Eligible
Director’s rights in any Mandatory Stock Unit Account, Cash Account or Elective Stock Unit Account without the Eligible Director’s consent; provided, however, that the Board may, without an Eligible
Director’s consent, amend or modify the Plan in any manner that it considers necessary or advisable to comply with any Legal Requirement or to ensure that amounts credited to an Eligible Director’s Mandatory Stock Unit Account, Cash
Account or Elective Stock Unit Account are not subject to federal, state or local income tax prior to payment. 
 Notwithstanding the
foregoing, if any provision of this Plan would, in the reasonable, good faith judgment of the Company, result in or likely result in the imposition on any Eligible Director or any other person of any tax, interest or penalty under Section 409A
of the Internal Revenue Code of 1986, as amended, the Company may reform this Plan or any provision hereof, without the consent of any Eligible Director, in the manner that the Company reasonably and in good faith determines to be necessary or
advisable to avoid the imposition of such tax, interest or penalty; provided, however, that any such reformation shall, to the maximum extent the Company reasonably and in good faith determines to be possible, retain the economic and
tax benefits to the Eligible Directors hereunder while not materially increasing the cost to the Company of providing such benefits to the Eligible Directors. 
 Section 14. Listing, Registration and Legal Compliance 
 If the Plan Administrators shall at any time determine that any
Consent (as hereinafter defined) is necessary or desirable as a condition of, or in connection with, the granting of any award under the Plan, the issuance or purchase of shares or other rights hereunder or the taking of any other action hereunder
(each such action being hereinafter referred to as a “Plan Action”), then such Plan Action shall not be taken, in whole or in part, unless and until such Consent shall have been effected or obtained. The term
“Consent” as used herein with respect to any Plan Action means (i) the listing, registrations or qualifications in respect thereof upon any securities exchange or under any foreign, federal, state or local law, rule or
regulation, (ii) any and all consents, clearances and approvals in respect of a Plan Action by any governmental or other regulatory bodies, or (iii) any and all written agreements and representations by an Eligible Director with respect to
the disposition of Stock or with respect to 

  

 11 

 
any other matter, which the Plan Administrators shall deem necessary or desirable in order to comply with the terms of any such listing, registration or
qualification or to obtain an exemption from the requirement that any such listing, qualification or registration be made. 
 Section 15. Right
Reserved 
 Nothing in the Plan shall confer upon any Eligible Director the right to continue as a director of the Company or affect any
right that the Company or any Eligible Director may have to terminate the service of such Eligible Director. 
 Section 16. Rights as a Stockholder

 Except as otherwise provided by the terms of any applicable Benefit Plan Trust, an Eligible Director shall not, by reason of any stock
option, Director Stock, Stock Unit or Stock Amount, have any rights as a stockholder of the Company until Stock has been issued to such Eligible Director. 
 Section 17. Unfunded Plan 
 The Plan shall be unfunded and shall not create (or be construed to create) a trust or a
separate fund or funds. The Plan shall not establish any fiduciary relationship between the Company and any Eligible Director or other person. To the extent any person holds any rights by virtue of a pending grant or deferral under the Plan, such
rights shall be no greater than the rights of an unsecured general creditor of the Company. Notwithstanding the foregoing, the Company may (but shall not be obligated to) contribute shares of Stock corresponding to Stock Units to a Benefit Plan
Trust, provided that the principal and income of any such Benefit Plan Trust shall be subject to the claims of general creditors of the Company. The Company may amend the terms of any Benefit Plan Trust as applicable to any one or more Eligible
Directors in order to procure favorable tax treatment for such Eligible Director(s) or to comply with the laws applicable in any non-U.S. jurisdiction. 
 Section 18. Governing Law 
 The Plan is deemed adopted, made and delivered in New York and shall be governed by the laws
of the State of New York applicable to agreements made and to be performed entirely within such state. 
 Section 19. Severability 
 If any part of the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate
any portion of the Plan not declared to be unlawful or invalid. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner that will give effect to the terms of such Section or part of a
Section to the fullest extent possible while remaining lawful and valid. 
 Section 20. Notices 
 All notices and other communications hereunder shall be given in writing and shall be deemed given when personally delivered against receipt or five days
after having been mailed by registered or certified mail, postage prepaid, return receipt requested, addressed as 

  

 12 

 
follows: (a) if to the Company: Morgan Stanley, 1585 Broadway, New York, New York 10036, Attention: Corporate Secretary; and (b) if to an Eligible
Director, at the Eligible Director’s principal residential address last furnished to the Company. Either party may, by notice, change the address to which notice to such party is to be given. 
 Section 21. Section Headings 
 The Section
headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said Sections. 
 Section 22. Definitions 
 As used in the Plan, the following terms shall have the meanings indicated below: 

“Account” means Cash Account, Elective Stock Unit Account or Mandatory Stock Unit Account, as applicable. 

“Adjusted Deferred Amount” has the meaning set forth in Section 7(h). 
 “Annual Meeting” means an annual meeting of the Company’s stockholders. 
 “Annual Retainer” means a cash retainer for services as a member of the Board. 
 “Annual Stock Units” means the Stock Units credited to any Eligible Director’s Mandatory Stock Unit Account pursuant
to Section 6(a)(ii)(B). 
 “Average Daily Cash Balance” means the sum of the daily balances for a Cash
Account for any quarter or shorter period for which the calculation is made, divided by the number of days on which a positive balance existed in such Cash Account. 
 “Benefit Plan Trust” means any trust established by the Company under which Eligible Directors, or Eligible Directors and
participants in designated employee benefit plans of the Company, constitute the principal beneficiaries. 
 “Board” means the board of directors of the Company. 
 “Cash Account” means a
bookkeeping account to which Deferred Amounts are credited pursuant to Section 7(a)(ii). 
 “Cause”
means, with respect to any Eligible Director, termination of service on the Board on account of any act of (A) fraud or intentional misrepresentation, or (B) embezzlement, misappropriation or conversion of assets or opportunities of the
Company or any affiliate. 
 “Committee Retainer” means a cash retainer for services as a member of any
committee of the Board. 
 “Company” has the meaning set forth in Section 1. 
 “Consent” has the meaning set forth in Section 14. 
  

 13 

 “Deferred Amount” means any amount, in dollars, of Retainers and/or
Director Stock that an Eligible Director elects to defer, as indicated on the relevant Deferral Election Form. 
 “Deferral Election” means a deferral election by an Eligible Director made with respect to any Retainers, Director Stock, Initial Stock Units and/or Annual Stock Units. 
 “Deferral Election Form” means an election form submitted by an Eligible Director to the Secretary with respect to any
Retainers, Director Stock, or Stock Units. 
 “Director Stock” means shares of Stock awarded to an Eligible
Director for service on the Board as provided in Section 6(a). 
 “Disability” means a “permanent
and total disability” as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended. 
 “Distribution Commencement Date” means the date that an Eligible Director elects as the date on which distribution of Deferred Amounts should begin, as indicated on the relevant Deferral Election Form. 
 “Elective Stock Unit Account” means a bookkeeping account to which Deferred Amounts are credited pursuant to
Section 7(a). 
 “Elective Stock Units” means Stock Units that are elected pursuant to Section 7(a)
to be received in lieu of Retainers and/or Director Stock. 
 “Eligible Directors” has the meaning set forth
in Section 2. 
 “Fair Market Value” has the meaning set forth in Section 10. 
 “Initial Stock Units” means the Stock Units credited to any Eligible Director’s Mandatory Stock Unit Account
pursuant to Section 6(a)(i)(B). 
 “Interest Equivalent” means an additional amount to be credited to a
Cash Account calculated in accordance with Section 7(a)(ii). 
 “Lead Director Retainer” means a cash
retainer for services as the lead director of the Board. 
 “Mandatory Stock Unit Account” means a
bookkeeping account to which Initial Stock Units and Annual Stock Units are credited pursuant to Sections 6(a)(i)(B) and 6(a)(ii)(B). 
 “Meeting Fees” means fees (if any) payable to an Eligible Director for participation in meetings of the Board or any committee thereof. 
 “Normal Retirement” means the termination of service on the Board for retirement at or after attaining age 65, other than
for Cause, Disability or death. 
  

 14 

 “Plan” has the meaning set forth in Section 1. 
 “Rate of Interest” means the time weighted average interest rate paid by the Company for a quarter, or such shorter
period from the end of the preceding quarter to an Eligible Director’s Service Termination Date, to institutions from which it borrows funds. 
 “Retainer” means the Annual Retainer, the Committee Retainer and/or the Lead Director Retainer, as applicable. 
 “Retainer Payment Date” means, with respect to any Retainer, the date as of which an Eligible Director becomes entitled
to payment of Retainer; provided, however, that in the event such date is a date other than the date of the Annual Meeting, the Retainer Payment Date shall be the first day of the calendar month following the month in which such
Eligible Director becomes entitled to the payment of such Retainer. 
 “Service Termination Date” means the
date of an Eligible Director’s termination of service on the Board. 
 “Stock” means the Company’s
common stock, par value $0.01 per share, and any other shares into which such stock shall thereafter be changed by reason of any merger, reorganization, recapitalization, consolidation, split-up, combination of shares or similar event as set forth
in and in accordance with Section 4. 
 “Stock Amount” means the percentage of the Retainers that an
Eligible Director elects to have paid in Stock, as indicated on the relevant Stock Election Form. 
 “Stock
Election” means an election by an Eligible Director to receive all or a portion of the Eligible Director’s Retainers in shares of Stock. 
 “Stock Election Form” means the election form submitted by an Eligible Director to the Secretary as provided in Section 8(a). 
 “Stock Units” means Initial Stock Units, Annual Stock Units and/or Elective Stock Units, as applicable. 
 “Transition Date” has the meaning set forth in Section 5(a). 
  

 15

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