Document:

Form of Award Certificate for Performance Stock Units

 EXHIBIT 10.3 
 MORGAN STANLEY 
 2007 EQUITY
INCENTIVE COMPENSATION PLAN 
 AWARD CERTIFICATE FOR 

[YEAR] PERFORMANCE STOCK UNITS 

 TABLE OF CONTENTS FOR
AWARD CERTIFICATE 
  

							
	1.	  	 Performance stock units generally.
	  	 	3	  
	2.	  	 Performance measures.
	  	 	3	  
	3.	  	 Vesting and conversion.
	  	 	4	  
	4.	  	 Special provision for certain employees.
	  	 	6	  
	5.	  	 Dividend equivalent payments.
	  	 	6	  
	6.	  	 Death, Disability and Full Career Retirement.
	  	 	7	  
	7.	  	 Involuntary termination by the Firm.
	  	 	9	  
	8.	  	 Governmental Service.
	  	 	9	  
	9.	  	 Change in Control.
	  	 	11	  
	10.	  	 Specified employees.
	  	 	11	  
	11.	  	 Cancellation of awards under certain circumstances.
	  	 	11	  
	12.	  	 Tax and other withholding obligations.
	  	 	13	  
	13.	  	 Obligations you owe to the Firm.
	  	 	14	  
	14.	  	 Nontransferability.
	  	 	15	  
	15.	  	 Designation of a beneficiary.
	  	 	15	  
	16.	  	 Ownership and possession.
	  	 	15	  
	17.	  	 Securities law compliance matters.
	  	 	16	  
	18.	  	 Compliance with laws and regulation.
	  	 	16	  
	19.	  	 No entitlements.
	  	 	16	  
	20.	  	 Consents under local law.
	  	 	17	  
	21.	  	 Award modification.
	  	 	17	  
	22.	  	 Governing law.
	  	 	18	  
	23.	  	 Defined terms.
	  	 	18	  

 MORGAN STANLEY 

[YEAR] 

DISCRETIONARY RETENTION AWARDS 

AWARD CERTIFICATE FOR PERFORMANCE STOCK UNITS

 Morgan Stanley has awarded you performance stock units (PSUs) as part of your discretionary long-term incentive
compensation for services provided during [year] and as an incentive for you to remain in Employment and provide services to the Firm. This Award Certificate sets forth the general terms and conditions of your [year] performance stock unit award.
The number of PSUs in your Target Award has been communicated to you independently. 
 If you are employed outside the United
States, you will also receive an “International Supplement” that contains supplemental terms and conditions for your [year] PSU award. You should read this Award Certificate in conjunction with the International Supplement,
if applicable, in order to understand the terms and conditions of your performance stock unit award. 
 Your PSU award is made
pursuant to the Plan. References to “performance stock units” or “PSUs” (which terms are used interchangeably) in this Award Certificate mean only those performance stock units included in your [year] PSU award, and the terms and
conditions herein apply only to such award. If you receive any other award under the Plan or another equity compensation plan, it will be governed by the terms and conditions of the applicable award documentation, which may be different from those
herein. 
 The purpose of your PSU award is, among other things, to align your interests with the interests of the Firm and
Morgan Stanley’s stockholders, to reward you for your continued Employment and service to the Firm in the future and your compliance with the Firm’s policies (including the Code of Conduct), to protect the Firm’s interests in
non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests, and to ensure an orderly transition of responsibilities. In view of these purposes, the number of PSUs
that you earn will depend on the Company’s performance during the Performance Period. Moreover, you will earn PSUs included in your [year] PSU award only if you (1) remain in continuous Employment through the Scheduled Vesting Date
(subject to limited exceptions set forth below), (2) do not engage in any activity that is a cancellation event set forth in Section 11(c) below and (3) satisfy obligations you owe to the Firm as set forth in
Section 13 below. Even if your PSUs have vested, you will have no right to your award if a cancellation event occurs under the circumstances set forth in Section 11(c) below. As Morgan Stanley deems appropriate, Morgan Stanley will require
you to provide a written certification or other evidence, from time to time in its sole discretion, to confirm that no cancellation event has occurred, including upon a termination of Employment and/or during a

  
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specified period of time prior to the Scheduled Conversion Date. If you fail to timely provide any required certification or other evidence, Morgan Stanley will cancel your award. It is your
responsibility to provide the Executive Compensation Department with your up-to-date contact information. 
 Capitalized terms
used in this Award Certificate that are not defined in the text have the meanings set forth in Section 23 below. Capitalized terms used in this Award Certificate that are not defined in the text or in Section 23 below have the meanings set
forth in the Plan. 
  

	1.	Performance stock units generally. 

 Each PSU corresponds to one share of Morgan Stanley common stock. A PSU constitutes a contingent and unsecured promise of Morgan Stanley to pay you one share of Morgan Stanley common stock on the
conversion date for the PSU. As the holder of PSUs, you have only the rights of a general unsecured creditor of Morgan Stanley. You will not be a stockholder with respect to the shares of Morgan Stanley common stock corresponding to your PSUs unless
and until your PSUs convert to shares. 
  

	2.	Performance measures. 

 The portion, if any, of your Target Award that you earn will be based on Morgan Stanley performance against the performance measures set forth in this Section 2 and the other terms and conditions of
this Award Certificate, and may vary from zero to 1.5 times the number of PSUs included in your Target Award. 

(a) Morgan Stanley’s Return on Equity. One-half of your Target Award will be earned based
on MS ROE. The number of PSUs that you earn based on MS ROE (subject to vesting and the other terms and conditions of your award) will be determined by multiplying the number of PSUs representing one-half of the Target Award by a multiplier
determined as follows: 
  

			
	MS ROE	 	Multiplier
	12% or more	 	1.50
	10%	 	1.00
	6%	 	0.50
	Less than 6%	 	0.00

 If MS ROE is between two thresholds, then the multiplier will be obtained by straight-line interpolation between the two
thresholds. For example, if MS ROE is 11%, the multiplier would be 1.25. If MS ROE is less than 6%, you will not earn any PSUs as a result of the MS ROE measure, and one-half of your [year] PSU award will be canceled. 

(b) Relative Total Shareholder Return. One-half of your Target Award will be earned based on
Morgan Stanley’s Total Shareholder Return as compared to the Total Shareholder Return of each member of the Index Group. The number of PSUs that you earn based on Morgan Stanley’s TSR as compared to the TSR of the Index Group (subject to

  
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vesting and the other terms and conditions of your award) will be determined by (i) subtracting the Index Group TSR from Morgan Stanley’s TSR (“Relative TSR”)
and (ii) multiplying the number of PSUs representing one-half of your Target Award by a multiplier determined as follows: 
  

			
	Relative TSR	 	Multiplier
	50% or more	 	1.50
	0%	 	1.00
	- 75%	 	0.25
	Equal to or less than -100%	 	0.00

 For example, if Morgan Stanley’s TSR is 20% and the Index Group TSR is 10%, the Relative TSR would be 10%. If the
Relative TSR is between the thresholds, then the multiplier will be obtained by straight-line interpolation between the two points. For example, if Relative TSR is 10%, the multiplier would 1.10. 

(c) Adjustments. If an event occurs with respect to Morgan Stanley that renders, in the sole
determination of the Committee, any of the performance measures set forth in Section 2(a) or Section 2(b) to no longer be appropriate, then the Committee may adjust such measures, as it deems appropriate in its sole discretion, to carry
out the intent of the original terms of this award. 
  

	3.	Vesting and conversion. 

 (a) Vesting schedule. Except as otherwise provided in this Award Certificate, you will vest in any PSUs that are earned in accordance with Section 2 on the Scheduled
Vesting Date.1 Except as otherwise provided in this Award
Certificate, PSUs will vest only if you continue to provide future services to the Firm by remaining in continuous Employment through the Scheduled Vesting Date and providing value added services to the Firm during this timeframe. The special
vesting terms set forth in Sections 6, 7 and 8 of this Award Certificate apply (i) if your Employment terminates by reason of your death or Disability, (ii) upon your Full Career Retirement, (iii) if the Firm terminates your
employment in an involuntary termination under the circumstances described in Section 7 or (iv) upon a Governmental Service Termination. Vested PSUs remain subject to the cancellation and withholding provisions set forth in this Award
Certificate. 
 (b) Conversion. Except as otherwise provided in
this Award Certificate, your PSUs, to the extent earned and vested, will convert to shares of Morgan Stanley common stock on the Scheduled Conversion Date, with any fractional shares to be distributed in cash.2 

 

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

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

  
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 The special conversion provisions set forth in Sections 6(a), 6(b) and 8 of this Award
Certificate apply (i) if your Employment terminates by reason of your death or you die after termination of your Employment or (ii) upon your Governmental Service Termination or your employment at a Governmental Employer following your
termination of employment with the Firm under circumstances set forth in Section 8(b). 
 No PSUs will convert to shares of
Morgan Stanley common stock following the end of the Performance Period until the Committee certifies the extent to which the performance criteria set forth in Section 2 have been satisfied. 

The shares delivered upon conversion of PSUs pursuant to this Section 3(b) will not be subject to any transfer
restrictions, other than those that may arise under the securities laws, the Firm’s policies or Section 13 below, or to cancellation under the circumstances set forth in Section 11(c), but will be subject to repayment as set forth in
Section 3(c).3 

(c) Repayment/Recapture. In the event and to the extent the Committee reasonably determines
that the performance certified by the Committee, and on the basis of which PSUs were converted to shares of Morgan Stanley common stock, was based on materially inaccurate financial statements or other performance metric criteria, you will be
obligated to repay to the Firm: 
 (1) the number of shares that were delivered upon conversion of your
PSUs, less the number of shares that would have been delivered had your PSUs converted to shares based on accurate financial statements or other performance metric criteria (such number of shares determined in each case by the Committee and before
satisfaction of tax or other withholding obligations pursuant to Section 12) (the “Repayment Shares”); provided, however, that to the extent that any of the Repayment Shares have been transferred, you shall
repay to the Firm an amount equal to the number of Repayment Shares so transferred multiplied by the fair market value, determined using a valuation methodology established by Morgan Stanley, of Morgan Stanley common stock on the date your PSUs
converted to shares of Morgan Stanley common stock; plus 
 (2) any dividend equivalents that were paid
on the Repayment Shares when your PSUs converted to shares; plus 
 (3) interest on the amounts described
in the preceding clauses (1) and (2) at the average rate of interest Morgan Stanley paid to borrow money from financial institutions during the period from the date of such conversion through the date preceding the repayment date.

 For the avoidance of doubt, your PSUs will not be deemed “earned” if payment of such award is based on materially
inaccurate financial statements or other performance metric criteria. 
  

	3 	 Certain PSUs granted to UK Code Staff may include transfer restrictions for a six-month period following the applicable Scheduled Conversion Date.

  
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 (d) Accelerated conversion. Morgan Stanley shall
have no right to accelerate the conversion of any of your PSUs or the payment of any of your dividend equivalents, except to the extent that such acceleration is not prohibited by Section 409A and would not result in your being required to
recognize income for United States federal income tax purposes before your PSUs convert to shares of Morgan Stanley common stock or your dividend equivalents are paid or your incurring additional tax or interest under Section 409A. If any PSUs
are converted to shares of Morgan Stanley common stock or any dividend equivalents are paid prior to the Scheduled Conversion Date pursuant to this Section 2(d), these shares or dividend equivalents may not be transferable and may remain
subject to applicable vesting, cancellation and withholding provisions, as determined by Morgan Stanley. 

(e) Rule of construction for timing of conversion. Whenever this Award Certificate provides
for your PSUs to convert to shares, or your dividend equivalents to be paid, on the Scheduled Conversion Date or upon a different specified event or date, such conversion or payment will be considered to have been timely made, and neither you nor
any of your beneficiaries or your estate shall have any claim against the Firm for damages based on a delay in conversion of your PSUs (or delivery of Morgan Stanley shares following conversion) or payment of your dividend equivalents, as
applicable, and the Firm shall have no liability to you (or to any of your beneficiaries or your estate) in respect of any such delay, as long as conversion or payment, as applicable, is made by December 31 of the year in which occurs the
Scheduled Conversion Date or such other specified event or date or, if later, by the 15th day of the third calendar month following such specified event or date. Similarly, neither you nor any of your beneficiaries or your estate shall have any
claim against the Firm for damages, and the Firm shall have no liability to you (or to any of your beneficiaries or your estate), based on any acceleration of the conversion of your PSUs or payment of your dividend equivalents pursuant to
Section 3(d), as applicable. 
  

	4.	Special provision for certain employees. 

 Notwithstanding the other provisions of this Award Certificate, if Morgan Stanley considers you to be one of its executive officers at the time provided for the conversion of your vested PSUs and
determines that your compensation may not be fully deductible by virtue of Section 162(m) of the Internal Revenue Code, Morgan Stanley shall delay payment of the nondeductible portion of your compensation, including delaying, to the extent
nondeductible, conversion of your vested PSUs and payment of the dividend equivalents, unless the Committee, in its sole discretion, determines not to delay such conversion and payment. This delay will continue until your Separation from Service or,
to the extent permitted under Section 409A, the end of the first earlier taxable year of the Firm as of the last day of which you are no longer an executive officer (subject to earlier conversion in the event of your death as described below).

  

	5.	Dividend equivalent payments. 

 If Morgan Stanley pays a regular or ordinary dividend on its common stock, you will be credited with a dividend equivalent with respect to your PSU award in an amount equal to the amount of the dividend
that would have been paid on a number of shares of Morgan Stanley common stock corresponding to your Target Award. Morgan Stanley will credit the 

  
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dividend equivalents when it pays the corresponding dividend on its common stock. Your dividend equivalents will vest and be paid in cash at the same time as, and subject to the same vesting and
cancellation provisions set forth in this Award Certificate with respect to, your PSUs (provided that, subject to Section 3(e), the dividend equivalents may be paid following the date on which the PSUs convert to shares of Morgan Stanley
common stock on the next administratively practicable payroll date). The amount of dividend equivalents paid to you will be based on the number of PSUs that actually convert to shares (and will be paid only if your PSUs convert to shares),
provided that such dividend equivalents will be reduced to the extent that application of the performance measures set forth in Section 2 results in your earning less than the Target Award and will be increased to the extent that
application of those performance measures results in your earning more than the Target Award. (For example, if you earn 80% of the Target Award based on the performance measures, 20% of the dividend equivalents credited in respect of regular or
ordinary dividends will be canceled.) If your PSU award is subject to a pro rata reduction upon the termination of your Employment (as described below) and your award is to be paid on a date following such termination, the amount of dividend
equivalents credited to you in respect of regular or ordinary dividends paid on Morgan Stanley common stock following your termination shall continue to be based on the number of shares of Morgan Stanley common stock corresponding to your Target
Award, and the amount paid to you (subject to the other terms and conditions of this Award Certificate) shall be the amount calculated as provided above in this Section 5, in each case multiplied by the Pro Ration Fraction. If your PSU award is
subject to a pro rata reduction upon the termination of your Employment and is paid out on such termination (as described below), the amount of dividend equivalents paid to you shall be calculated based on the number of shares of Morgan Stanley
common stock corresponding to your Target Award (adjusted, if applicable, as provided in this Section 5) multiplied by the Pro Ration Fraction. In the event of a Change in Control, the Committee in its discretion may provide that any dividend
equivalents credited in respect of your [year] PSU award following the Change in Control will be based on the number of shares of Morgan Stanley common stock earned as provided in Section 9 (rather than on the number of shares corresponding to
your Target Award), it being understood that the amount of dividend equivalents actually paid to you on the Scheduled Conversion Date (or earlier as provided in this Award Certificate in the event of certain terminations of employment) will be
calculated as provided in this Section 5. 
 Notwithstanding the foregoing, in the event your PSU award is canceled in full
on or before the Scheduled Conversion Date, all dividend equivalents credited to you in respect of regular or ordinary dividends will be canceled. 
 The decision to pay a dividend and, if so, the amount of any such dividend, is determined by Morgan Stanley in its sole discretion. No dividend equivalents will be paid to you on any canceled PSUs.

  

	6.	Death, Disability and Full Career Retirement. 

 The following special earning, vesting and payment terms apply to your PSUs: 
 (a) Death during Employment. If you die while Employed, then the number of PSUs that will vest, and the number of shares of Morgan Stanley common stock the

  
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beneficiary you have designated pursuant to Section 15 or the legal representative of your estate, as applicable, will receive as of the date of your death, will be determined by multiplying
(i) the number of shares earned based on the performance measures set forth in Section 2 but applied as though the Performance Period ended with the last Morgan Stanley quarter ending simultaneously with or before the date of your death,
for which earnings information for Morgan Stanley has been released as of the date of your death by (ii) the Pro Ration Fraction, provided that your beneficiary or estate notifies the Firm of your death within 60 days following your
death; provided further, that if your death occurs on or following the Scheduled Vesting Date, then your beneficiary or estate, as applicable, will receive shares (if any) in an amount and at such time that you would have received such shares
had your death not occurred. For example, if your death occurs following the end of Morgan Stanley’s third quarter (but prior to the end of the fourth quarter) and earnings information has not been released by Morgan Stanley for such quarter,
the performance measures will be applied as though the Performance Period ended with Morgan Stanley’s second quarter (provided Morgan Stanley has released earning information for such quarter). 

After your death, the cancellation provisions set forth in Section 11(c) will no longer apply. The shares delivered
upon conversion of PSUs pursuant to this Section 6(a) will not be subject to any transfer restrictions (other than those that may arise under the securities laws or the Firm’s policies) but will be subject to repayment as set forth in
Section 3(c). 
 (b) Death after termination of Employment. If you die following
your termination of Employment as a result of your Disability, Full Career Retirement or an involuntary termination not involving any cancellation event and your [year] PSU award was not canceled in connection with your termination or thereafter,
then the number of PSUs that will vest, and the number of shares of Morgan Stanley common stock the beneficiary you have designated pursuant to Section 15 or the legal representative of your estate, as applicable, will receive as of the date of
your death, will be determined by multiplying (i) the number of shares that would have been delivered to you based on applying the performance measures set forth in Section 2 as though the Performance Period ended with the last Morgan
Stanley quarter ending simultaneously with or before the date of your death for which earnings information for Morgan Stanley has been released as of the date of your death by (ii) the Pro Ration Fraction determined upon your termination of
Employment, provided that your beneficiary or estate notifies the Firm of your death within 60 days following your death; provided further, that if your death occurs on or following the Scheduled Vested Date, then your beneficiary or
estate, as applicable, will receive shares (if any) in an amount and at such time that you would have received such shares had your death not occurred. 
 After your death, the cancellation provisions set forth in Section 11(c) will no longer apply. The shares delivered upon conversion of PSUs pursuant to this Section 6(b) will not be subject to
any transfer restrictions (other than those that may arise under the securities laws or the Firm’s policies) but will be subject to repayment as set forth in Section 3(c). 

(c) Disability. If your Employment terminates due to Disability, then, subject to any transfer
restrictions and the cancellation provisions described herein, you will vest in a number of PSUs, and receive a number of shares of Morgan Stanley common stock on the Scheduled Conversion Date, determined by multiplying (i) the number of shares
that would 

  
 8 

 
have been delivered to you, based on the performance measures described in Section 2, had you remained in Employment through the Scheduled Conversion Date, by (ii) the Pro Ration
Fraction. The cancellation and withholding provisions set forth in this Award Certificate will continue to apply until the Scheduled Conversion Date. 
 (d) Full Career Retirement. If your employment terminates in a termination that satisfies the definition of Full Career Retirement, then, subject to any transfer restrictions
and the cancellation provisions described herein, you will vest in a number of PSUs, and receive a number of shares of Morgan Stanley common stock on the Scheduled Conversion Date, equal to: (A) if your Full Career Retirement termination occurs
on or before [January 1 of the year following the Date of the Award], the amount determined by multiplying (i) the number of shares that would have been delivered to you, based on the performance measures set forth in Section 2, had you
remained in Employment through the Scheduled Conversion Date, by (ii) the Pro Ration Fraction, and (B) if your Full Career Retirement termination occurs following [January 1 of the year following the Date of the Award], the number of
shares that would have been delivered to you, based on the performance measures set forth in Section 2, had you remained in Employment through the Scheduled Conversion Date. The cancellation and withholding provisions set forth in this Award
Certificate will continue to apply until the Scheduled Conversion Date. 
  

	7.	Involuntary termination by the Firm. 

 If the Firm terminates your employment under circumstances not involving any cancellation event set forth in Section 11(c) and you sign an agreement and release satisfactory to the Firm, then,
subject to any transfer restrictions and the cancellation provisions described herein, you will vest in a number of PSUs, and receive a number of shares of Morgan Stanley common stock on the Scheduled Conversion Date, determined by multiplying
(i) the number of shares that would have been delivered to you, based on the performance measures set forth in Section 2, had you remained in Employment through the Scheduled Conversion Date, by (ii) the Pro Ration Fraction. If you do
not sign such an agreement and release satisfactory to the Firm within the timeframe set by the Firm in connection with your involuntary termination as described in this Section 7, any PSUs that were unvested immediately prior to your
termination shall be canceled. The cancellation and withholding provisions set forth in this Award Certificate will continue to apply until the Scheduled Conversion Date. 

 

	8.	Governmental Service. 

 (a) General treatment of awards upon Governmental Service Termination. If your Employment terminates in a Governmental Service Termination and not involving a cancellation
event set forth in Section 11(c), then, provided that you sign an agreement satisfactory to the Firm relating to your obligations pursuant to Section 8(c), you will vest in a number of PSUs, and receive as of the date of your Governmental
Service Termination a number of shares of Morgan Stanley common stock, determined by multiplying (i) the number of shares earned based on the performance measures set forth in Section 2 but applied as though the Performance Period ended
with the last Morgan Stanley quarter ending simultaneously with or before the effective date of your Governmental Service Termination, for which earnings information for Morgan Stanley has been released as of the date of your Governmental Service
Termination by (ii) the Pro Ration Fraction. 

  
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 (b) General treatment of vested awards upon acceptance of
employment at a Governmental Employer following termination of Employment. If (i) your Employment terminates other than in a Governmental Service Termination and not involving a cancellation event set forth in Section 11(c),
(ii) your [year] PSU award was not canceled in connection with your termination or thereafter, (iii) following your termination of Employment, you accept employment with a Governmental Employer, and (iv) you present the Firm with
satisfactory evidence demonstrating that as a result of such employment the divestiture of your continued interest in Morgan Stanley equity awards or continued ownership of Morgan Stanley common stock is reasonably necessary to avoid the violation
of U.S. federal, state or local or foreign ethics law or conflicts of interest law applicable to you at such Governmental Employer, then, provided that you sign an agreement satisfactory to the Firm relating to your obligations pursuant to
Section 8(c), you will receive, upon your commencement of employment with such Governmental Employer, the number of shares determined by multiplying (x) the number of shares of Morgan Stanley common stock earned based on the performance
measures set forth in Section 2 but applied as though the Performance Period ended with the last Morgan Stanley quarter ending simultaneously with or before your acceptance of employment at a Governmental Employer, for which earnings
information for Morgan Stanley has been released as of such date by (y) the Pro Ration Fraction. 
 (c)
Repayment obligation. Shares delivered upon conversion of PSUs pursuant to Section 8(a) or 8(b) will not be subject to any transfer restrictions (other than those that may arise under the securities laws or the
Firm’s policies) but will be subject to repayment as set forth in Section 3(c). Moreover, if any activity or event constituting a cancellation event set forth in Section 11(c) occurs within the applicable period of time that would
have resulted in cancellation of all or a portion of your PSUs had they not converted to shares pursuant to Section 8(a) or 8(b), you will be required to pay to Morgan Stanley an amount equal to: 

(1) the number of PSUs that would have been canceled upon the occurrence of such cancellation event multiplied by
the fair market value, determined using a valuation methodology established by Morgan Stanley, of Morgan Stanley common stock on the date your PSUs converted to shares of Morgan Stanley common stock; plus 

(2) any dividend equivalents that were paid to you on the number of PSUs described in the foregoing clause
(1) when your PSUs converted to shares pursuant to Section 8(a) or 8(b); plus 

  
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 (3) interest on the amounts described in the preceding clauses
(1) and (2) at the average rate of interest Morgan Stanley paid to borrow money from financial institutions during the period from the date of such conversion through the date preceding the payment date. 

 

	9.	Change in Control. 

In the event of a Change in Control, you will receive on the Scheduled Conversion Date (subject to earlier payment as described in
Section 6 upon death and in Section 8 in connection with “Governmental Service” and subject to any transfer restrictions and the cancellation provisions set forth herein) the number of shares earned based on the performance
measures in Section 2 but applied as though the Performance Period ended with the last quarter of Morgan Stanley ending simultaneously with or before the effective date of the Change in Control; provided, however, that no such payment
shall be made if your Employment terminates following the Change in Control, but prior to the Scheduled Vesting Date, for any reason other than for death, Disability, Full Career Retirement, Governmental Service Termination or an involuntary
termination not involving any cancellation event. For the avoidance of doubt, following a Change in Control, the provisions of this Award Certificate setting forth the consequences of a termination of employment shall continue to apply (including
all provisions governing the timing of payment), except that whenever this Award Certificate provides for you to receive upon or following a termination of employment a number of shares determined by applying the Pro Ration Fraction, the Pro Ration
Fraction shall be applied to the number of shares calculated pursuant to the immediately preceding sentence (e.g., applying the performance measures described herein as though the Performance Period ended with the last quarter of Morgan Stanley
ending simultaneously with or before the effective date of the Change in Control). 
  

	10.	Specified employees. 

 Notwithstanding any other terms of this Award Certificate, if Morgan Stanley considers you to be one of its “specified employees” as defined in Section 409A at the time of your Separation
from Service, any conversion of your PSUs and payment of your accrued dividend equivalents that otherwise would occur upon your Separation from Service (including, without limitation, PSUs whose conversion was delayed due to Section 162(m) of
the Internal Revenue Code, as provided in Section 4) will be delayed until the first business day following the date that is six months after your Separation from Service; provided, however, that in the event that your death, your
Governmental Service Termination or your employment at a Governmental Employer following your termination of employment with the Firm under circumstances set forth in Section 8(b) occurs at any time after the Date of the Award, conversion and
payment will be made in accordance with Section 6 or 8, as applicable. 
  

	11.	Cancellation of awards under certain circumstances. 

 (a) Cancellation of unvested awards. Your unvested PSUs, including any dividend equivalents credited on your PSUs, will be canceled if your
Employment terminates for any reason other than death, Disability, a Full Career Retirement, an involuntary termination by the Firm described in Section 7 or a Governmental Service Termination. 

  
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 (b) General treatment of vested awards. Except
as otherwise provided in this Award Certificate, your PSUs, to the extent earned and vested, including any dividend equivalents credited on your PSUs, will convert to shares of Morgan Stanley common stock or be paid, as applicable, on the Scheduled
Conversion Date. The cancellation and withholding provisions set forth in this Award Certificate will continue to apply until the Scheduled Conversion Date. 
 (c) Cancellation of awards under certain circumstances. The cancellation events set forth in this Section 11(c) are designed, among other things, to incentivize compliance
with the Firm’s policies (including the Code of Conduct), to protect the Firm’s interests in non-public, confidential and/or proprietary information, products, trade secrets, customer relationships, and other legitimate business interests,
and to ensure an orderly transition of responsibilities. This Section 11(c) shall apply notwithstanding any other terms of this Award Certificate (except where sections in this Award Certificate specifically provide that the cancellation events
set forth in this Section 11(c) no longer apply). 
 Notwithstanding Morgan Stanley’s performance based on the
measures set forth in Section 2 or your satisfaction of the vesting conditions of this Award Certificate, PSUs (and any dividend equivalents credited thereon) are not earned until the Scheduled Conversion Date (and until you satisfy all
obligations you owe to the Firm as set forth in Section 13 below) and, unless prohibited by applicable law, will be canceled prior to the Scheduled Conversion Date in any of the circumstances set forth below in Section 11(c)(1),
(2) or (2). Although you will become the beneficial owner of shares of Morgan Stanley common stock following conversion of your PSUs, the Firm may retain custody of your shares following conversion of your PSUs (and any dividend equivalents
credited thereon) pending any investigation or other review that impacts the determination as to whether the PSUs (and any dividend equivalents credited thereon) are cancellable under the circumstances set forth below and, in such an instance, the
shares underlying such PSUs (and any dividend equivalents credited thereon) shall be forfeited in the event the Firm determines that the PSUs (and any dividend equivalents credited thereon) were cancellable under the circumstances set forth below.

 (1) Competitive Activity. If you resign Employment and engage in Competitive Activity prior to
the Scheduled Conversion Date, your [year] PSU award, whether or not vested and irrespective of Morgan Stanley’s performance based on the measures set forth in Section 2, including any dividend equivalents credited on your PSUs, will be
canceled immediately, subject to applicable law. 
 (2) Other Events. If any of the following
events occur at any time before the Scheduled Conversion Date, your [year] PSU award, whether or not vested and irrespective of Morgan Stanley’s performance based on the measures set forth in Section 2, including any dividend equivalents
credited on your PSUs, will be canceled immediately, subject to applicable law: 
 (i) Your Employment is
terminated for Cause or you engage in conduct constituting Cause (either during or following Employment and whether or not your Employment has been terminated as of the Scheduled Conversion Date); 

  
 12 

 (ii) Following the termination of your Employment, the Firm determines that
your Employment could have been terminated for Cause (for these purposes, “Cause” will be determined without giving consideration to any “cure” period included in the definition of “Cause”); 

(iii) You disclose Confidential and Proprietary Information to any unauthorized person outside the Firm, or use or
attempt to use Confidential and Proprietary Information other than in connection with the business of the Firm; or you fail to comply with your obligations (either during or after your Employment) under the Firm’s Code of Conduct (and any
applicable supplements) or otherwise existing between you and the Firm, relating to Confidential and Proprietary Information or an assignment, procurement or enforcement of rights in Confidential and Proprietary Information; 

(iv) You engage in a Wrongful Solicitation; 

(v) You make any Unauthorized Comments; 

(vi) You fail or refuse, following your termination of Employment, to cooperate with or assist the Firm in a timely
manner in connection with any investigation, regulatory matter, lawsuit or arbitration in which the Firm is a subject, target or party and as to which you may have pertinent information; or 

(vii) You resign from your employment with the Firm without having provided the Firm prior written notice of your
resignation consistent with the notice period requirements undertaken by you in connection with your employment offer letter, Sign-On or Notice & Non-Solicitation Agreement or any other contractual obligation in connection with the terms
and conditions of your employment, or, in the event no such prior contractual notice period requirements exist, you resign from your employment with the Firm without having provided the Firm prior written notice of your resignation of at least
thirty (30) days. 
 (3) Clawback Cancellation Event. Your [year] PSU award, whether or not
vested and irrespective of Morgan Stanley’s performance based on the measures set forth in Section 2, including any dividend equivalents credited on your PSUs, will be cancelled immediately, subject to applicable law, if, before the
Scheduled Conversion Date, you take any action, or omit to take any action (including with respect to supervisory responsibilities), where such action or omission: (i) causes a restatement of the Firm’s consolidated financial results or
(ii) constitutes a violation by you of the Firm’s risk policies and standards (where prior authorization and approval of appropriate senior management was not obtained) whether such action results in a favorable or unfavorable impact to
the Firm’s consolidated financial results. 
  

	12.	Tax and other withholding obligations. 

 Any vesting, whether on a Scheduled Vesting Date or some other date, of your PSU award (including dividend equivalents that have been credited in respect of your PSUs), and

  
 13 

 
any conversion of PSUs or crediting or payment of dividend equivalents, shall be subject to the Firm’s withholding of all required United States federal, state, local and foreign income
and employment/payroll taxes (including Federal Insurance Contributions Act taxes). You authorize the Firm to withhold such taxes from any payroll or other payment or compensation to you, including by canceling or accelerating payment of a portion
of this award (including any dividend equivalents that have been credited on your PSUs) in an amount not to exceed such taxes imposed upon such vesting, conversion, crediting or payment and any additional taxes imposed as a result of such
cancellation or acceleration, and to take such other action as the Firm may deem advisable to enable it and you to satisfy obligations for the payment of withholding taxes and other tax obligations, assessments, or other governmental charges,
whether of the United States or any other jurisdiction, relating to the vesting or conversion of your PSUs or the crediting, vesting or payment of dividend equivalents. However, the Firm may not deduct or withhold such sum from any payroll or any
other payment or compensation (including from your PSU award), except to the extent it is not prohibited by Section 409A and would not cause you to recognize income for United States federal income tax purposes before your PSUs convert to
shares of Morgan Stanley common stock (or your dividend equivalents are paid) or to incur interest or additional tax under Section 409A. 
 Pursuant to rules and procedures that Morgan Stanley establishes, you may elect to satisfy the tax or other withholding obligations arising upon conversion of your PSUs by having Morgan Stanley withhold
shares of Morgan Stanley common stock in an amount sufficient to satisfy the tax or other withholding obligations. Shares withheld will be valued using the fair market value of Morgan Stanley common stock on the date your PSUs convert (or
such other appropriate date determined by Morgan Stanley based on local legal, tax or accounting rules and practices) using a valuation methodology established by Morgan Stanley. In order to comply with applicable accounting standards
or the Firm’s policies in effect from time to time, Morgan Stanley may limit the amount of shares that you may have withheld. 
  

	13.	Obligations you owe to the Firm. 

 As a condition to the earning, payment, conversion or distribution of your award, the Firm may require you to pay such sum to the Firm as may be necessary to satisfy any obligation that you owe to the
Firm. Notwithstanding any other provision of this Award Certificate, your award, even if vested, converted or paid, is not earned until after such obligations and any tax withholdings or other deductions required by law are
satisfied. Notwithstanding the foregoing, Morgan Stanley may not reduce the number of shares to be delivered upon conversion of your PSUs or the amount of dividend equivalents to be paid in respect of your award or delay the payment
of your award to satisfy obligations that you owe to the Firm except (i) to the extent authorized under Section 12, relating to tax and other withholding obligations or (ii) to the extent such reduction or delay is not prohibited
by Section 409A and would not cause you to recognize income for United States federal income tax purposes before your PSUs convert to shares of Morgan Stanley common stock (or your dividend equivalents are paid) or to incur additional tax or
interest under Section 409A. 
 Morgan Stanley’s determination of any amount that you owe the Firm shall be
conclusive. The fair market value of Morgan Stanley common stock for purposes of the foregoing provisions shall be determined using a valuation methodology established by Morgan Stanley. 

  
 14 

	14.	Nontransferability. 

You may not sell, pledge, hypothecate, assign or otherwise transfer your award, other than as provided in Section 15 (which allows
you to designate a beneficiary or beneficiaries in the event of your death) or by will or the laws of descent and distribution. This prohibition includes any assignment or other transfer that purports to occur by operation of law or otherwise.
During your lifetime, payments relating to your award will be made only to you. 
 Your personal representatives, heirs,
legatees, beneficiaries, successors and assigns, and those of Morgan Stanley, shall all be bound by, and shall benefit from, the terms and conditions of your award. 
  

	15.	Designation of a beneficiary. 

 You may make a written designation of beneficiary or beneficiaries to receive all or part of your award to be delivered or paid under this Award Certificate in the event of your death. To make a
beneficiary designation, you must complete and submit the Beneficiary Designation form on the Executive Compensation website at [website redacted]. 
 Any shares or dividend equivalents that become deliverable upon your death, and as to which a designation of beneficiary is not in effect, will be distributed to your estate. 

If you previously filed a designation of beneficiary form for your equity awards with the Executive Compensation Department, such form
will also apply to all of your equity awards, including this award. You may replace or revoke your beneficiary designation at any time. If there is any question as to the legal right of any beneficiary to receive shares or payments under this award,
Morgan Stanley may determine in its sole discretion to deliver the shares or make the payments in question to your estate. Morgan Stanley’s determination shall be binding and conclusive on all persons and it will have no further liability to
anyone with respect to this award. 
  

	16.	Ownership and possession. 

 (a) Before conversion. Generally, you will not have any rights as a stockholder in the shares of Morgan Stanley common stock corresponding to your [year]
PSU award unless and until your PSUs convert to shares. Without limiting the generality of the preceding sentence, you will not have any voting rights with respect to shares corresponding to your PSU award until PSUs convert to shares. 

(b) Following conversion. Subject to Sections 3(c) and 11(c), following
conversion of your PSUs you will be the beneficial owner of the shares of Morgan Stanley common stock issued to you, and you will be entitled to all rights of ownership, including voting rights and the right to receive cash or stock dividends or
other distributions paid on the shares. 

  
 15 

 (c) Custody of shares. Morgan Stanley may maintain
possession of the shares subject to your award until such time as your shares are no longer subject to restrictions on transfer. 
  

	17.	Securities law compliance matters. 

 Morgan Stanley may affix a legend to any stock certificates representing shares of Morgan Stanley common stock issued upon conversion of your PSUs (and any stock certificates that may subsequently be
issued in substitution for the original certificates). The legend will read substantially as follows: 
 THE SHARES
REPRESENTED BY THIS STOCK CERTIFICATE WERE ISSUED PURSUANT TO THE MORGAN STANLEY 2007 EQUITY INCENTIVE COMPENSATION PLAN AND ARE SUBJECT TO THE TERMS AND CONDITIONS THEREOF AND OF AN AWARD CERTIFICATE FOR PERFORMANCE STOCK UNITS AND ANY SUPPLEMENT
THERETO. 
 THE SECURITIES REPRESENTED BY THIS STOCK CERTIFICATE MAY BE SUBJECT TO RESTRICTIONS ON TRANSFER BY VIRTUE OF
THE SECURITIES ACT OF 1933. 
 COPIES OF THE PLAN, THE AWARD CERTIFICATE FOR PERFORMANCE STOCK UNITS AND ANY SUPPLEMENT
THERETO ARE AVAILABLE THROUGH THE EXECUTIVE COMPENSATION DEPARTMENT. 
 Morgan Stanley may advise the transfer agent to
place a stop order against such shares if it determines that such an order is necessary or advisable. 
  

	18.	Compliance with laws and regulation. 

 Any sale, assignment, transfer, pledge, mortgage, encumbrance or other disposition of shares issued upon conversion of your PSUs (whether directly or indirectly, whether or not for value, and whether or
not voluntary) must be made in compliance with any applicable constitution, rule, regulation or policy of any of the exchanges or associations or other institutions with which the Firm or a Related Employer has membership or other privileges, and
any applicable law or applicable rule or regulation of any governmental agency, self-regulatory organization or state or federal regulatory body. 
  

	19.	No entitlements. 

 (a) No right to continued Employment. This award is not an employment agreement, and nothing in this Award Certificate, the International Supplement, if applicable, or the Plan shall
alter your status as an “at-will” employee of the Firm or your employment status at a Related Employer. None of this Award Certificate, the International Supplement, if applicable, or the Plan shall be construed as guaranteeing your
employment by the Firm or a 

  
 16 

 
Related Employer, or as giving you any right to continue in the employ of the Firm or a Related Employer, during any period (including without limitation the period between the Date of the Award
and any of the Scheduled Vesting Date, the Scheduled Conversion Date, or any portion of any of these periods), nor shall they be construed as giving you any right to be reemployed by the Firm or a Related Employer following any termination of
Employment. 
 (b) No right to future awards. This award, and all other awards of
PSUs and other equity-based awards, are discretionary. This award does not confer on you any right or entitlement to receive another award of PSUs or any other equity-based award at any time in the future or in respect of any future period.

 (c) No effect on future employment compensation. Morgan Stanley has made this award to
you in its sole discretion. This award does not confer on you any right or entitlement to receive compensation in any specific amount for any future year, and does not diminish in any way the Firm’s discretion to determine the amount, if any,
of your compensation. This award is not part of your base salary or wages and will not be taken into account in determining any other employment-related rights you may have, such as rights to pension or severance pay. 

(d) Award terms control. In the event of any conflict between any terms applicable to equity awards
in any employment agreement, offer letter or other arrangement that you have entered into with the Firm and the terms set forth in this Award Certificate, the latter shall control. 

 

	20.	Consents under local law. 

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

 

	21.	Award modification. 

Morgan Stanley reserves the right to modify or amend unilaterally the terms and conditions of your award, without first asking your
consent, or to waive any terms and conditions that operate in favor of Morgan Stanley. These amendments may include (but are not limited to) changes that Morgan Stanley considers necessary or advisable as a result of changes in any, or the adoption
of any new, Legal Requirement. Morgan Stanley may not modify your award in a manner that would materially impair your rights in your award without your consent; provided, however, that Morgan Stanley may, but is not required to,
without your consent, amend or modify your award in any manner that Morgan Stanley considers necessary or advisable to (i) comply with any Legal Requirement, (ii) ensure that your award does not result in an excise or other supplemental
tax on the Firm under any Legal Requirement, or (iii) ensure that your award is not subject to United States federal, state or local income tax or any equivalent taxes in territories outside the United States prior to conversion of your PSUs to
shares or delivery of such shares following conversion or the crediting or payment of dividend equivalents. Morgan Stanley will notify you of any amendment of your award that affects your rights. Any amendment or waiver of a provision of this Award
Certificate (other than any amendment or 

  
 17 

 
waiver applicable to all recipients generally), which amendment or waiver operates in your favor or confers a benefit on you, must be in writing and signed by the Global Head of Human Resources
or the Chief Operating Officer (or if such positions no longer exist, by the holder of an equivalent position) to be effective. 
  

	22.	Governing law. 

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

 

	23.	Defined terms. 

For purposes of this Award Certificate, the following terms shall have the meanings set forth below: 

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

 (b) “Cause” means: 

(1) any act or omission which constitutes a breach of your obligations to the Firm, including, without limitation,
(A) your failure to comply with any notice or non-solicitation restrictions that may be applicable to you or (B) your failure to comply with the Firm’s compliance, ethics or risk management standards, or your failure or refusal to
perform satisfactorily any duties reasonably required of you, which breach, failure or refusal (if susceptible to cure) is not corrected (other than failure to correct by reason of your incapacity due to physical or mental illness) within ten
(10) business days after written notification thereof to you by the Firm; 
 (2) your commission of
any dishonest or fraudulent act, or any other act or omission, which has caused or may reasonably be expected to cause injury to the interest or business reputation of the Firm; or 

(3) your violation of any securities, commodities or banking laws, any rules or regulations issued pursuant to
such laws, or rules or regulations of any securities or commodities exchange or association of which the Firm is a member or of any policy of the Firm relating to compliance with any of the foregoing. 

(c) A “Change in Control” shall be deemed to have
occurred if any of the following conditions shall have been satisfied: 
 (1) any one person or more than
one person acting as a group (as determined under Section 409A), other than (A) any employee plan established by Morgan Stanley or any of its Subsidiaries, (B) Morgan Stanley or any of its affiliates (as defined in Rule 12b-2
promulgated under the Exchange Act), (C) an underwriter temporarily holding securities pursuant to an offering of such securities, or (D) a corporation owned, directly or indirectly, by stockholders of Morgan Stanley in

  
 18 

 
substantially the same proportions as their ownership of Morgan Stanley, is or becomes, during any 12-month period, the beneficial owner, directly or indirectly, of securities of Morgan Stanley
(not including in the securities beneficially owned by such person(s) any securities acquired directly from Morgan Stanley or its affiliates other than in connection with the acquisition by Morgan Stanley or its affiliates of a business)
representing 50% or more of the total voting power of the stock of Morgan Stanley; provided, however, that the provisions of this subsection (1) are not intended to apply to or include as a Change in Control any transaction that
is specifically excepted from the definition of Change in Control under subsection (3) below; 
 (2)
a change in the composition of the Board such that, during any 12-month period, the individuals who, as of the beginning of such period, constitute the Board (the “Existing Board”) cease for any reason to constitute at
least 50% of the Board; provided, however, that any individual becoming a member of the Board subsequent to the beginning of such period whose election, or nomination for election by Morgan Stanley’s stockholders, was approved by
a vote of at least a majority of the directors immediately prior to the date of such appointment or election shall be considered as though such individual were a member of the Existing Board; 

(3) the consummation of a merger or consolidation of Morgan Stanley with any other corporation or other entity, or
the issuance of voting securities in connection with a merger or consolidation of Morgan Stanley (or any direct or indirect subsidiary of Morgan Stanley) pursuant to applicable stock exchange requirements; provided that immediately following
such merger or consolidation the voting securities of Morgan Stanley outstanding immediately prior thereto do not continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity of such
merger or consolidation or parent entity thereof) 50% or more of the total voting power of Morgan Stanley stock (or if Morgan Stanley is not the surviving entity of such merger or consolidation, 50% or more of the total voting power of the stock of
such surviving entity or parent entity thereof); and provided further that a merger or consolidation effected to implement a recapitalization of Morgan Stanley (or similar transaction) in which no person (as determined under
Section 409A) is or becomes the beneficial owner, directly or indirectly, of securities of Morgan Stanley (not including in the securities beneficially owned by such person any securities acquired directly from Morgan Stanley or its affiliates
other than in connection with the acquisition by Morgan Stanley or its affiliates of a business) representing 50% or more of either the then outstanding shares of Morgan Stanley common stock or the combined voting power of Morgan Stanley’s then
outstanding voting securities shall not be considered a Change in Control; or 
 (4) the complete
liquidation of Morgan Stanley or the sale or disposition by Morgan Stanley of all or substantially all of Morgan Stanley’s assets in which any one person or more than one person acting as a group (as determined under Section 409A) acquires
(or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from Morgan Stanley that have a total gross fair market value equal to more than 50% of the total gross fair market value
of all of the assets of Morgan Stanley immediately prior to such acquisition or acquisitions. 

  
 19 

 Notwithstanding the foregoing, (x) no Change in Control shall be deemed to have
occurred if there is consummated any transaction or series of integrated transactions immediately following which the record holders of Morgan Stanley common stock immediately prior to such transaction or series of transactions continue to have
substantially the same proportionate ownership in an entity which owns substantially all of the assets of Morgan Stanley immediately prior to such transaction or series of transactions and (y) no event or circumstances described in any of
clauses (1) through (4) above shall constitute a Change in Control unless such event or circumstances also constitute a change in the ownership or effective control of Morgan Stanley, or in the ownership of a substantial portion of Morgan
Stanley’s assets, as defined in Section 409A. In addition, no Change in Control shall be deemed to have occurred upon the acquisition of additional control of Morgan Stanley by any one person or more than one person acting as a group that
is considered to effectively control Morgan Stanley. 
 For purposes of the provisions of this Award Certificate, terms used in
the definition of a Change in Control shall be as defined or interpreted pursuant to Section 409A. 

(d) “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. 

(e) “Competitive Activity” means: 

(1) becoming, or entering into any arrangement as, an employee, officer, partner, member, proprietor, director,
independent contractor, consultant, advisor, representative or agent of, or serving in any similar position or capacity with, a Competitor, where you will be responsible for providing, or managing or supervising others who are providing, services
(x) that are similar or substantially related to the services that you provided to the Firm, or (y) that you had direct or indirect managerial or supervisory responsibility for at the Firm, or (z) that call for the application of the
same or similar specialized knowledge or skills as those utilized by you in your services for the Firm, in each such case, at any time during the year preceding the termination of your employment with the Firm; or 

(2) either alone or in concert with others, forming, or acquiring a 5% or greater equity ownership, voting
interest or profit participation in, a Competitor. 
 (f)
“Competitor” means any corporation, partnership or other entity that competes, or that owns a significant interest in any corporation, partnership or other entity that competes, with any business
activity the Firm engages in, or that you reasonably knew or should have known that the Firm was planning to engage in, at the time of the termination of your Employment. 

  
 20 

 (g) “Confidential and Proprietary
Information” means any information that is classified as confidential in the Firm’s Global Policy on Confidential Information or that may have intrinsic value to the Firm, the Firm’s clients or other parties with
which the Firm has a relationship, or that may provide the Firm with a competitive advantage, including, without limitation, any trade secrets; inventions (whether or not patentable); formulas; flow charts; computer programs; access codes or other
systems information; algorithms; technology and business processes; business, product or marketing plans; sales and other forecasts; financial information; client lists or other intellectual property; information relating to compensation and
benefits; and public information that becomes proprietary as a result of the Firm’s compilation of that information for use in its business, provided that such Confidential and Proprietary Information does not include any information which is
available for use by the general public or is generally available for use within the relevant business or industry other than as a result of your action. Confidential and Proprietary Information may be in any medium or form, including, without
limitation, physical documents, computer files or discs, electronic communications, videotapes, audiotapes, and oral communications. 
 (h) “Date of the Award” means [insert grant date, which typically will coincide approximately with the end of the year in respect of which the
award is made]. 
 (i) “Disability” means any
condition that would qualify for a benefit under any group long-term disability plan maintained by the Firm and applicable to you. 
 (j) “Employed” and “Employment” refer to employment with the Firm and/or Related Employment.

 (k) The “Firm” means Morgan Stanley (including any
successor thereto) together with its subsidiaries and affiliates. For purposes of the definitions of “Cause,” “Confidential and Proprietary Information,” “Unauthorized Comments” and “Wrongful Solicitation” set
forth in this Award Certificate and Section 11(c)(2)(vi) of this Award Certificate, references to the “Firm” shall refer severally to the Firm as defined in the preceding sentence and your Related Employer, if any. For purposes of the
cancellation provisions set forth in this Award Certificate relating to disclosure or use of Confidential and Proprietary Information, references to the “Firm” shall refer to the Firm as defined in the second preceding sentence or your
Related Employer, as applicable. 
 (l) “Full Career
Retirement” has the meaning attributed to such term in your employment agreement or offer letter with the Firm or, if you are not party to an employment agreement or offer letter with the Firm (or if such agreement or
letter does not include a definition of “Full Career Retirement”), means the termination of your Employment by you or by the Firm for any reason other than under circumstances involving any cancellation event described in
Section 11(c), and other than due to your death or Governmental Service Termination, on or after the date on which: 
 (1) you have attained age 50 and completed at least 12 years of service as a [    ]4 of the Firm or equivalent officer title; or 
  

 

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

  
 21 

 (2) you have attained age 50 and completed at
least 15 years of service as an officer of the Firm at the level of [    ]5 or above; or 

(3) you have completed at least 20 years of service with the Firm; or 

(4) you have attained age 55 and have completed at least 5 years of service with the Firm and
the sum of your age and years of service equals or exceeds 65.6 

For the purposes of the foregoing definition, service with the Firm will include any period of service with the following entities and
any of their predecessors: 
 (i) AB Asesores (“ABS”) prior to its acquisition by
the Firm (provided that only years of service as a partner of ABS shall count towards years of service as an officer); 
 (ii) Morgan Stanley Group Inc. and its subsidiaries (“MS Group”) prior to the merger with and into Dean Witter, Discover & Co.; 

(iii) Miller Anderson & Sherrerd, L.L.P. prior to its acquisition by MS Group; 

(iv) Van Kampen Investments Inc. and its subsidiaries prior to its acquisition by MS Group; 

(v) FrontPoint Partners LLC and its subsidiaries prior to its acquisition by the Firm; and 

(vi) Dean Witter, Discover & Co. and its subsidiaries (“DWD”) prior to the merger
of Morgan Stanley Group Inc. with and into Dean Witter, Discover & Co.; 
 provided that, in the case of an employee who has
transferred employment from DWD to MS Group or vice versa, a former employee of DWD will receive credit for employment with DWD only if he or she transferred directly from DWD to Morgan Stanley & Co. Incorporated or its affiliates
subsequent to February 5, 1997, and a former employee of MS Group will receive credit for employment with MS Group only if he or she transferred directly from MS Group to Morgan Stanley DW Inc. or its affiliates subsequent to February 5,
1997. 
 (m) “Governmental Employer” means a
governmental department or agency, self-regulatory agency or other public service employer. 

	 	

  

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

	6 	Age and service conditions specified in clauses (1) through (4) may vary from year to year. 

  
 22 

 (n) “Governmental Service
Termination” means the termination of your Employment due to your commencement of employment at a Governmental Employer; provided that you have presented the Firm with satisfactory evidence demonstrating that as a
result of such new employment, the divestiture of your continued interest in Morgan Stanley equity awards or continued ownership of Morgan Stanley common stock is reasonably necessary to avoid the violation of U.S. federal, state or local or foreign
ethics law or conflicts of interest law applicable to you at such Governmental Employer. 
 (o)
“Index Group” means the S&P 500 Financial Sectors Index. 

(p) “Internal Revenue Code” means the United States Internal
Revenue Code of 1986, as amended, and the rules, regulations and guidance thereunder. 
 (q)
“Legal Requirement” means any law, regulation, ruling, judicial decision, accounting standard, regulatory guidance or other legal requirement. 

(r) “Management Committee” means the Morgan Stanley Management
Committee and any successor or equivalent committee. 
 (s) “MS
ROE” means Morgan Stanley’s return on average common shareholders’ equity, including discontinued operations and extraordinary items, for each fiscal year during the Performance Period, adjusted to eliminate the
impact of the following items with respect to each such fiscal year: (a) debt valuation adjustments, (b) any gain or loss associated with the sale of any Disposal Group at the time of, or subsequent to, it being classified as Held for
Sale, (c) any goodwill impairment recognized in a fiscal year within a Reporting Unit if an acquisition by Morgan Stanley (or a subsidiary) of a Non-Controlling Interest in an entity in which Morgan Stanley (or a subsidiary)
already has a Controlling Interest is made within the same period and same Reporting Unit, (d) any gain or loss associated with legal settlements and/or accruals related to legal settlements recognized in the fiscal year and relating to
business activities conducted prior to January 1, 2011 and (e) any impacts for changes in accounting principles that are not applied on a full retrospective basis in the year of adoption and result in a cumulative catch-up adjustment
(recorded either as a gain or a loss, or as an adjustment to equity) in the applicable fiscal year. For purposes of clauses (b) through (e) above, adjustments shall only be made to MS ROE if the pre-tax amounts equal or exceed $100 million
during the applicable fiscal year; 
  

	 	•	 	 For purposes of clauses (b) and (c) above, “Disposal Group,” “Held for Sale,” “Controlling Interest,”
“Non-Controlling Interest,” and “Reporting Unit” shall be defined in accordance with US generally accepted accounting principles; 

  

	 	•	 	 For purposes of clause (b) above, any gain or loss associated with the sale of a Disposal Group shall include any transaction costs, severance
costs, and/or acceleration of unvested deferred compensation awards; and 

  

	 	•	 	 For purposes of clause (d) above, such gain or loss shall include any expense (or reversal of expense) recognized during the fiscal year
associated with legal proceedings and/or legal settlements. 

  
 23 

 (t) “Performance
Period” means the three-year period consisting of the reporting years of Morgan Stanley of [year of the Date of the Award, first year following the Date of the Award and second year following the Date of the Award].

 (u) “Plan” means the 2007 Equity Incentive
Compensation Plan, as amended. 
 (v) “Pro Ration Fraction” means a
fraction, the numerator of which is the number of days starting with and inclusive of [January 1 immediately preceding the Date of the Award] and ending on the effective date of your termination of Employment and the denominator of which is the
number of days in the period beginning on [January 1 immediately preceding the Date of the Award] and ending on the Scheduled Vesting Date. 
 (w) “Related Employment” means your employment with an employer other than the Firm (such employer, herein referred to as a “Related
Employer”), provided that: (i) you undertake such employment at the written request or with the written consent of Morgan Stanley’s Global Head of Human Resources (or if such position no longer exists, the holder of an
equivalent position); (ii) immediately prior to undertaking such employment you were an employee of the Firm or were engaged in Related Employment (as defined herein); and (iii) such employment is recognized by the Firm in its discretion
as Related Employment; and, provided further that the Firm may (1) determine at any time in its sole discretion that employment that was recognized by the Firm as Related Employment no longer qualifies as Related Employment, and
(2) condition the designation and benefits of Related Employment on such terms and conditions as the Firm may determine in its sole discretion; provided further, the Firm will not provide for Related Employment except to the extent such
treatment is not prohibited by Section 409A and would not cause you to recognize income for United States federal income tax purposes before your performance stock units convert to shares (or your dividend equivalents are paid) or to incur
additional tax or interest under Section 409A. The designation of employment as Related Employment does not give rise to an employment relationship between you and the Firm, or otherwise modify your and the Firm’s respective rights and
obligations. 
 (x) “Scheduled Conversion Date” means a date during
[third year following the Date of the Award] determined by the Committee. 
 (y)
“Scheduled Vesting Date” means [January 1 of the third year following the Date of the Award]. 
 (z) “Section 409A” means Section 409A of the Internal Revenue Code and any regulations thereunder. 

(aa) “Separation from Service” means a separation from service with the Firm for purposes
of Section 409A determined using the default provisions set forth in Treasury Regulation §1.409A-1(h) or any successor regulation thereto. For purposes of this definition, Morgan Stanley’s subsidiaries and affiliates include (and are
limited to) any corporation that is in the same controlled group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as Morgan Stanley and any trade or business that is under common control with Morgan Stanley
(within the meaning of Section 414(c) of the Internal Revenue Code), determined in each case in accordance with the default provisions set forth in Treasury Regulation §1.409A-1(h)(3). 

  
 24 

 (bb) “Target Award” means the
number of PSUs that has been communicated to you separately and that will be earned, subject to the other terms and conditions of this Award Certificate, if each of the multipliers set forth in Section 2(a) and 2(b) equals 1. 

(cc) “Total Shareholder Return” or
“TSR”, as it applies to 
 (1) Morgan Stanley’s
common stock, means the percentage change in value (positive or negative) over the Performance Period as measured by dividing (i) the sum of (A) the cumulative value of dividends and other distributions in respect of the common stock for
the Performance Period, assuming dividend reinvestment, and (B) the difference (positive or negative) between the common stock price on the first and last days of the Performance Period (calculated on the basis of the average of the adjusted
closing prices over the 30-day trading period immediately prior to the first day of the Performance Period and the average of the adjusted closing prices over the 30-day trading period ending on the last day of the Performance Period), by
(ii) the common stock price on the first day of the Performance Period, calculated on the basis of the average of the adjusted closing prices over the 30-day trading period immediately prior to the first day of the Performance Period; and

 (2) the Index Group, means the percentage change in value (positive or negative) over the Performance
Period as measured by dividing (i) the difference (positive or negative) between the closing price of the Index Group on the first and last days of the Performance Period (calculated on the basis of the average of the adjusted closing prices
over the 30-day trading period immediately prior to the first day of the Performance Period and the average of the adjusted closing prices over the 30-day trading period ending on the last day of the Performance Period), by (ii) the closing
price of the Index Group on the first day of the Performance Period, calculated on the basis of the average of the adjusted closing prices over the 30-day trading period immediately prior to the first day of the Performance Period. The adjusted
closing price of the Index Group on any given date shall be the closing price of the S&P 500 Financial Sectors Index as reported by the Bloomberg Professional Service. 

(dd) You will be deemed to have made “Unauthorized Comments”
about the Firm if, while Employed or following the termination of your Employment, you make, directly or indirectly, any negative, derogatory, disparaging or defamatory comment, whether written, oral or in electronic format, to any reporter, author,
producer or similar person or entity or to any general public media in any form (including, without limitation, books, articles or writings of any other kind, as well as film, videotape, audio tape, computer/Internet format or any other medium) that
concerns directly or indirectly the Firm, its business or operations, or any of its current or former agents, employees, officers, directors, customers or clients. 

(ee) A “Wrongful Solicitation” occurs upon either of the
following events: 
 (1) while Employed, including during any notice period applicable to you in
connection with the termination of your Employment, or within 180 days after the termination of your Employment, directly or indirectly in any capacity (including through 

  
 25 

 
any person, corporation, partnership or other business entity of any kind), you hire or solicit, recruit, induce, entice, influence or encourage any Firm employee to leave the Firm or become
hired or engaged by another firm; provided, however, that this clause shall apply only to employees with whom you worked or had professional or business contact, or who worked in or with your business unit, during any notice period
applicable to you in connection with the termination of your Employment or during the 180 days preceding notice of the termination of your Employment; or 
 (2) while Employed, including during any notice period applicable to you in connection with the termination of your Employment, or within 90 days (180 days if you are a member of the Management
Committee at the time of notice of termination) after the termination of your Employment, directly or indirectly in any capacity (including through any person, corporation, partnership or other business entity of any kind), you solicit or entice
away or in any manner attempt to persuade any client or customer, or prospective client or customer, of the Firm (i) to discontinue or diminish his, her or its relationship or prospective relationship with the Firm or (ii) to otherwise
provide his, her or its business to any person, corporation, partnership or other business entity which engages in any line of business in which the Firm is engaged (other than the Firm); provided, however, that this clause shall apply
only to clients or customers, or prospective clients or customers, that you worked for on an actual or prospective project or assignment during any notice period applicable to you in connection with the termination of your Employment or during the
180 days preceding notice of the termination of your Employment. 
 IN WITNESS WHEREOF, Morgan Stanley has duly executed
and delivered this Award Certificate as of the Date of the Award. 
  

	
	MORGAN STANLEY
	
	 /s/

	[Name]
	[Title]

  
 26Memorandum to Colm Kelleher Regarding Repatriation to London

 EXHIBIT 10.4 
  

 
  
  

							
				
	TO:	  	Colm Kelleher	  		  	
				
	FROM:	  	[Names redacted]	  	DEPT:	  	Human Resources
				
	SUBJECT:	  	Repatriation to London1	  		  	

  
  

As you complete your expatriate assignment there are a number of items that will impact your relocation to London. 

Your International Services contact in the assignment location is [name, telephone number and email address redacted]. 

Your International Services contact in the UK is [name, telephone number and email address redacted]. 

Your repatriation arrangements are as follows: 
  

	•	 	 Base Salary: During the time that you remain in New York you will continue to be paid as an expatriate. Upon
returning to the London office your annual base salary will continue to be £490,000. You will continue to have your monthly salary deposited into your UK bank account. You must, however, sign and return to London Payroll (LN-CW/08) a
Form P46 to ensure that you pay the correct UK tax. A copy of the form is enclosed. 

  

	•	 	 Compliance: The Financial Services Authority (FSA) is the Firm’s lead Regulator in the United Kingdom. All employees of Morgan
Stanley UK Limited who, as part of their duties, advise clients, commit the Firm’s capital in transactions, engage in corporate finance activities or work in related business areas (such as Research) are required to be registered with the FSA
and must agree in writing to be bound by and be subject to such of the FSA’s Rules as the FSA may prescribe. Please ensure that you familiarise yourself with the accompanying documentation by reviewing the FSA Memorandum and completing the FSA
Registration Questionnaire. The questionnaire must be returned to [name and address redacted]. 

  

	•	 	 Tax Equalisation/Taxes: Tax equalisation continues for the tax year of repatriation and may extend to the following
tax year, with the exception of executive compensation payouts. A further copy of the tax equalisation policy is enclosed for your information. Please contact [email address redacted] if you have any questions in this regard.

 The Firm has engaged PricewaterhouseCoopers (PwC) on a worldwide basis to prepare the expatriate’s
foreign individual income tax returns and tax equalisation calculation. Reasonable fees associated with these services will be borne by the Firm. 

 

	1 	 In addition to the items described herein, in connection with Mr. Kelleher’s repatriation from New York to London and given the global nature
of his position, Morgan Stanley agreed to provide Mr. Kelleher with a monthly housing allowance of $15,000 beginning in May 2011 (subject to a 5% increase each April) to maintain a residence in New York City and the right to continue
participation in one of the Company’s international medical insurance plans. 

	

 [Name, telephone number and email address redacted] will be in contact in due course to
arrange a meeting. 
  

	•	 	 Relocation Allowance: Upon your arrival in London, you will receive an after-tax miscellaneous relocation allowance
of one half of one month’s base salary to a maximum of £1,650, plus 25% of one half of one month’s capped base salary for each accompanying family member to an overall maximum of £3,300. Miscellaneous expenses would include the
purchase of small household appliances, curtain and carpet refitting, etc. 

 The relocation allowance is
considered taxable income in most countries however, the Firm will protect you from any tax liability on the relocation allowance through the tax equalisation process. 
 Your miscellaneous relocation allowance based on a family size of two will be £2,062.50. 
 [Name redacted] will arrange payment of the allowance when you arrive in the UK. The allowance will be paid approximately 14 working days after it has been requested. 

 

	•	 	 Assignment Accommodation: The Firm will reimburse you for any customary lease breakage fees incurred as a result of
your relocation. Please contact your local International Services representative to make arrangements for terminating the lease. If it becomes necessary for you to live in temporary accommodation in the assignment location due to the expiration of
your current lease, this will be arranged by your International Services contact. Please note that you will continue to receive your cost of living allowance and therefore no personal expenses incurred whilst in temporary accommodation will be
reimbursed. 

  

	•	 	 Schooling: Morgan Stanley will cover school fees relating to the current academic year. With effect from the start of the next academic
year you will be personally responsible for all school fees. 

  

	•	 	 Shipment and Storage of Household Goods: Morgan Stanley will also pay for one air shipment of urgently required personal effects to a
maximum of 500 lbs plus an additional 100 lbs for each accompanying family member. If you rented furniture whilst on assignment, you will not be entitled to a sea shipment. If you did not rent furniture, you will be entitled to one surface shipment
of household goods to the maximum capacity of a 40 foot container (approx 10,000 - 12,000 lbs). Please contact [name, telephone number and email address redacted]. You will also be entitled to storage of household goods in London for the time you
are in temporary living. Please refer to the Worldwide Expatriate Staff Policy for details of the Firm’s shipping policy. 

  

	•	 	 Transfer from Assignment Location: The Firm will provide you and your family with flights to London in business
class and transportation to and from airports. 

 Please use job number [redacted] and your new location cost
centre when booking your flight. 
  

	•	 	 House Hunting Trip: Since you have maintained a vacant home in the UK, you will not be entitled to a home search trip.

  

	•	 	 Sale of Car: If you have bought a private car in your assignment location, Morgan Stanley will reimburse the loss on sale of up to 2 cars
per household. The loss is 

	 	 
calculated as the differential between the sale price obtainable by a car dealer (retail sale value as determined using an independent car trade publication and, the amount actually received on
disposal of the car(s) to an independent third party. The maximum amount reimbursable is USD 4,000 or 25% of the retail sale value, whichever is the lower amount. 

 

	•	 	 Benefits: You will continue to be enrolled in the UK Benefits Programmes and international medical cover will
continue until your return to the UK. You should submit any outstanding medical expenses from your assignment period as quickly as possible on your return to the UK. Any medical treatment required on return to the UK should be claimed via the
domestic medical insurance policy. Should you prefer to retain international medical cover, then please contact [name, telephone number and email address redacted]. 

 

	•	 	 Relocation Expenses: All relocation expenses must be submitted on a properly completed relocation expense form, copies of which are
enclosed. Completed forms should be submitted to [name redacted] for authorisation. Expenses are reimbursed in sterling by Accounts Payable by direct deposit to your UK bank account within approximately 14 working days of receipt (bank account
notification form enclosed which should be sent directly to Accounts Payable). 

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

Corporate credit cards may not be used for relocation expenses. Relocation expenses charged on corporate cards will not be
processed. 
 Please refer all questions regarding the UK elements of the relocation package to [name redacted].

  

	cc:	[Names redacted] 

  

	Enc:	Form P46 & Guidelines 

FSA Registration & Memo 
 European Tax Equalisation Policy 
 Worldwide Expat Policy 

Relocation Expense Forms 
 Bank details for AP Form

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