Document:

EXHIBIT 4-cc

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                                 MORGAN STANLEY

                                       and

                       JPMORGAN CHASE BANK, Warrant Agent

                             -----------------------

                            [FORM WARRANT AGREEMENT]

                          dated as of November 1, 2004

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                                TABLE OF CONTENTS
                                   ----------

                                                                          PAGE

                                    ARTICLE 1
                                    WARRANTS

Section 1.01.  Ranking......................................................1
Section 1.02.  Form, Execution and Delivery of Warrant Certificates.........1
Section 1.03.  Number Unlimited; Issuable in Series.........................3
Section 1.04.  Countersignature and Delivery of Warrant Certificates........5
Section 1.05.  Place of Exercise; Registration of
        Transfers and Exchanges.............................................9
Section 1.06.  Mutilated or Missing Warrant Certificates...................13
Section 1.07.  Registered Holders..........................................13
Section 1.08.  Cancellation................................................14
Section 1.09.  Additional Warrant Agents...................................15
Section 1.10.  Appointment of Calculation Agents...........................15

                                    ARTICLE 2
                        DURATION AND EXERCISE OF WARRANTS

Section 2.01.  Duration and Exercise of Warrants...........................15
Section 2.02.  Return of Money Held Unclaimed for Two Years................16

                                    ARTICLE 3
              OTHER PROVISIONS RELATING TO RIGHTS OF WARRANTHOLDERS

Section 3.01.  Warrantholder May Enforce Rights............................16
Section 3.02.  No Rights as Holder of Warrant Property Conferred by
        Warrants or Warrant Certificates...................................16
Section 3.03.   Merger, Consolidation, Conveyance or Transfer..............16

                                    ARTICLE 4
               WARRANTS ACQUIRED BY THE COMPANY; PAYMENT OF TAXES

Section 4.01.  Warrants Acquired by the Company............................17
Section 4.02.  Payment of Taxes............................................18

                                    ARTICLE 5
                          CONCERNING THE WARRANT AGENT

Section 5.01.  Warrant Agent...............................................18
Section 5.02.  Condition of Warrant Agent's Obligations....................18
Section 5.03.  Resignation and Appointment of Successor....................20

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                                    ARTICLE 6
                                  MISCELLANEOUS

Section 6.01.  Amendment...................................................22
Section 6.02.  Notices and Demands to the Company and the Warrant Agent....23
Section 6.03.  Addresses for Notices.......................................24
Section 6.04.  Notices to Warrantholders...................................24
Section 6.05.  Obtaining of Approvals......................................24
Section 6.06.  Persons Having Rights under this Agreement..................24
Section 6.07.  Inspection of Agreement.....................................25
Section 6.08.  Officer's Certificates and Opinions of Counsel;
        Statements to Be Contained Therein.................................25
Section 6.09.  Payments Due on Saturdays, Sundays and Holidays.............26
Section 6.10.  Judgment Currency...........................................26
Section 6.11.  Headings....................................................27
Section 6.12.  Counterparts................................................27
Section 6.13.  Applicable Law..............................................27

Exhibit I         -   Form of Registered Call Warrant Certificate

Exhibit II        -   Form of Registered Put Warrant Certificate

                                       ii

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                                WARRANT AGREEMENT

     THIS AGREEMENT, dated as of November 1, 2004, between MORGAN STANLEY, a
corporation organized and existing under the laws of the State of Delaware (the
"Company"), and JPMORGAN CHASE BANK, a New York banking corporation (the
"Warrant Agent").

     WHEREAS, the Company has entered into a Senior Indenture dated as of
November 1, 2004, between the Company and JPMorgan Chase Bank, as Trustee (the
"Trustee") (as amended or supplemented from time to time, the "Indenture"),
providing for the issuance from time to time of its unsecured debt securities to
be issued in one or more series as provided in the Indenture;

     WHEREAS, the Company has duly authorized the issue from time to time of
warrants (the "Warrants") to purchase or sell (i) securities issued by the
Company or by an entity affiliated or not affiliated with the Company, a basket
of such securities, an index or indices of such securities or any combination of
the above, (ii) currencies or (iii) commodities (the property described in
clauses (i), other than the Company's debt securities, (ii) and (iii), in
relation to a Warrant, being hereinafter referred to as the "Unaffiliated
Warrant Property" applicable to such Warrant, and the Company's debt securities
issued pursuant to the Indenture to be purchased or sold upon exercise of any
Warrant, being hereinafter referred to as the "Warrant Securities," and together
with the Unaffiliated Warrant Property, the "Warrant Property") to be issued in
one or more series and in such number and with such terms as may from time to
time be authorized in accordance with the terms of this Agreement;

     WHEREAS, the Company has duly authorized the execution and delivery of this
Agreement to provide, among other things, for the delivery and administration of
the Warrants; and

     WHEREAS, all things necessary to make this Agreement a valid agreement
according to its terms have been done;

     NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1
                                    WARRANTS

     Section 1.01. Ranking. The Warrants are unsecured contractual obligations
of the Company and will rank pari passu with the Company's other unsecured
contractual obligations and with the Company's unsecured and unsubordinated
debt.

     Section 1.02. Form, Execution and Delivery of Warrant Certificates. (a)
Certificates ("Warrant Certificates") evidencing the Warrants of each series

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shall be substantially in the form of Exhibits I and II hereto or in such form
(not inconsistent with this Agreement) as shall be established by or pursuant to
one or more Board Resolutions (as defined below) (as set forth in a Board
Resolution or, to the extent established pursuant to, rather than set forth in,
a Board Resolution, in an Officer's Certificate (as defined below) detailing
such establishment) or in one or more agreements supplemental hereto, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Agreement. The Warrant
Certificates may have imprinted or otherwise reproduced thereon such letters,
numbers or other marks of identification or designation and such legends or
endorsements as the officers of the Company executing the same may approve
(execution thereof to be conclusive evidence of such approval) and that are not
inconsistent with the provisions of this Agreement, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto, or
with any rule or regulation of any self-regulatory organization (an "SRO") on
which the Warrants of such series may be listed or quoted, or of any securities
depository, or to conform to usage. Warrant Certificates shall be signed on
behalf of the Company by the chief financial officer, the treasurer or any
assistant treasurer or such other person specifically designated by the Board of
Directors to execute Warrant Certificates, which signature may or may not be
attested by the secretary or an assistant secretary of the Company. The
signature of any of such officers may be either manual or facsimile.
Typographical and other minor errors or defects in any such signature shall not
affect the validity or enforceability of any Warrant Certificate that has been
duly countersigned and delivered by the Warrant Agent.

     "Board Resolution" means a copy of one or more resolutions, certified by
the secretary or an assistant secretary of the Company to have been duly adopted
or consented to by the Board of Directors and to be in full force and effect,
and delivered to the Warrant Agent.

     "Board of Directors" means either the Board of Directors of the Company or
any committee of such Board duly authorized to act on its behalf for the
purposes of this Agreement.

     "Officer's Certificate" means a certificate signed by the chairman of the
board, the president, the chief financial officer, the chief strategic and
administrative officer, the chief legal officer, the treasurer, any assistant
treasurer or such other person authorized by the Board of Directors to execute
any such certificate and delivered it to the Warrant Agent. Without limiting the
generality of the foregoing, if the Warrants of any series are to be issued as
components of a unit ("Unit") with one or more other securities of the Company,
an officer's certificate or similar certificate relating to the Warrants
delivered pursuant to an indenture or unit agreement or similar agreement
governing such Units or one or more other components thereof may also constitute
an Officer's Certificate under this Agreement.

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     (b) In case any officer of the Company who shall have signed a Warrant
Certificate, either manually or by facsimile signature, shall cease to be such
officer before such Warrant Certificate shall have been countersigned and
delivered by the Warrant Agent to the Company or delivered by the Company, such
Warrant Certificate nevertheless may be countersigned and delivered as though
the person who signed such Warrant Certificate had not ceased to be such officer
of the Company; and a Warrant Certificate may be signed on behalf of the Company
by any person who, at the actual date of the execution of such Warrant
Certificate, shall be a proper officer of the Company to sign such Warrant
Certificate, although at the date of the execution of this Warrant Agreement any
such person was not such officer.

     (c) Pending the preparation of final Warrant Certificates evidencing
Warrants of any series, the Company may execute and the Warrant Agent shall
countersign and deliver temporary Warrant Certificates evidencing such Warrants
(printed, lithographed, typewritten or otherwise produced, in each case in form
satisfactory to the Warrant Agent). Such temporary Warrant Certificates shall be
issuable substantially in the form of the final Warrant Certificates but with
such omissions, insertions and variations as may be appropriate for temporary
Warrant Certificates, all as may be determined by the Company with the
concurrence of the Warrant Agent. Such temporary Warrant Certificates may
contain such reference to any provisions of this Warrant Agreement as may be
appropriate. Every such temporary Warrant Certificate shall be executed by the
Company and shall be countersigned by the Warrant Agent upon the same conditions
and in substantially the same manner, and with like effect, as the final Warrant
Certificates. Without unreasonable delay, the Company shall execute and shall
furnish final Warrant Certificates and thereupon such temporary Warrant
Certificates may be surrendered in exchange therefor without charge, and the
Warrant Agent shall countersign and deliver in exchange for such temporary
Warrant Certificates final Warrant Certificates evidencing a like aggregate
number of Warrants of the same series and of like tenor as those evidenced by
such temporary Warrant Certificates. Until so exchanged, such temporary Warrant
Certificates and the Warrants evidenced thereby shall be entitled to the same
benefits under this Warrant Agreement as final Warrant Certificates and the
Warrants evidenced thereby.

     Section 1.03. Number Unlimited; Issuable in Series. (a) The aggregate
number of Warrants that may be delivered under this Agreement is unlimited.

     (b) The Warrants may be issued in one or more series. There shall be
established in or pursuant to one or more Board Resolutions (and to the extent
established pursuant to, rather than set forth in, a Board Resolution, in an
Officer's Certificate detailing such establishment) or established in one or
more agreements supplemental hereto, prior to the initial issuance of Warrants
of any series;

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          (i) the designation of the Warrants of the series, which shall
     distinguish the Warrants of the series from the Warrants of all other
     series;

          (ii) any limit upon the aggregate number of the Warrants of the series
     that may be countersigned and delivered under this Agreement (disregarding
     any Warrants countersigned and delivered upon registration of transfer of,
     or in exchange for, or in lieu of, other Warrants of the series);

          (iii) the specific Warrant Property purchasable or salable upon
     exercise of the Warrants of the series, and the amount thereof (or the
     method for determining the same);

          (iv) the price at which the Warrants of the series will be issued and,
     if other than U.S. dollars, the coin or currency or composite currency in
     which such issue price will be payable;

          (v) whether the Warrants of the series are warrants to purchase ("call
     warrants") or warrants to sell ("put warrants") the Warrant Property;

          (vi) the price at which and, if other than U.S. Dollars, the coin or
     currency or composite currency with which the Warrant Property may be
     purchased or sold upon exercise of the Warrants of the series (or the
     method for determining the same);

          (vii) whether the exercise price for the Warrants of the series may be
     paid in cash or by the exchange of any other security of the Company, or
     both, or otherwise, and the method of exercise of the Warrants of the
     series;

          (viii) whether the exercise of the Warrants of the series is to be
     settled in cash or by delivery of the Warrant Property or both, or
     otherwise;

          (ix) the terms by which (A) in the case of call warrants, the Warrant
     Agent shall deliver all funds received by it in payment for the exercise of
     Warrants to the Company and the Company shall deliver the Warrant Property
     or (B) in the case of put warrants, the Warrant Agent shall deliver the
     Warrant Property received to the Company in exchange for the funds
     delivered by the Company;

          (x) the date on which the right to exercise the Warrants of the series
     shall commence and the date (the "Expiration Date") on which such right
     shall expire or, if the Warrants of the series are not continuously
     exercisable throughout such period, the specific date or dates on which
     they will be exercisable;

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          (xi) whether the Warrant Certificates representing the Warrants of the
     series will be in registered form ("Registered Warrants") or bearer form
     ("Bearer Warrants") or both;

          (xii) whether the Warrant Certificates evidencing any Registered
     Warrants or Bearer Warrants of the series will be issued in global form
     ("Global Warrant Certificates") or definitive form ("Definitive Warrant
     Certificates") or both, and whether and on what terms (if different from
     those set forth herein) Warrant Certificates in one form may be converted
     into or exchanged for Warrant Certificates in the other form;

          (xiii) any warrant agents, depositaries, authenticating or paying
     agents, transfer agents or registrars or any determination or calculation
     agents or other agents with respect to Warrants of the series;

          (xiv) whether the Warrants of the series will be issued separately or
     together as a unit (a "Unit") with one or more other securities of the
     Company or any other person and, if the Warrants of the series are to be
     issued as components of Units, whether and on what terms the Warrants of
     the series may be separated from the other components of such Units prior
     to the Expiration Date of such Warrants; and

          (xv) any other terms of the Warrants of the series (which terms shall
     not be inconsistent with the provisions of this Agreement).

     (c) All Warrants of any one series shall be substantially identical, except
as may otherwise be provided by or pursuant to the Board Resolution or Officer's
Certificate referred to above or as set forth in any such agreement supplemental
hereto. All Warrants of any one series need not be issued at the same time and
may be issued from time to time, consistent with the terms of this Agreement, if
so provided by or pursuant to such Board Resolution, such Officer's Certificate
or in any such agreement supplemental hereto.

     Notwithstanding Section 1.03(b)(ii) hereof and unless otherwise expressly
provided with respect to a series of Warrants, the aggregate number of Warrants
of a series may be increased and additional Warrants of such series may be
issued up to a maximum limit upon the aggregate number authorized with respect
to such series as increased.

     Section 1.04. Countersignature and Delivery of Warrant Certificates. (a)
The Company may deliver Warrant Certificates evidencing Warrants of any series
executed by the Company to the Warrant Agent for countersignature together with
the applicable documents referred to below in this Section, and the Warrant
Agent shall thereupon countersign and deliver such Warrant Certificates to or
upon the order of the Company (contained in the Issuer Order (as defined below)
referred to below in this Section) or pursuant to such procedures acceptable to
the Warrant Agent as may be specified from time to time by an Issuer Order. Any

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terms of the Warrants evidenced by such Warrant Certificates may be determined
by or pursuant to such Issuer Order or such other procedures. If provided for in
such procedures, such Issuer Order may authorize countersignature and delivery
pursuant to oral instructions from the Company or its duly authorized agent,
which instructions shall be promptly confirmed in writing. In countersigning
such Warrant Certificates and accepting the responsibilities under this
Agreement in relation to the Warrants evidenced by such Warrant Certificates,
the Warrant Agent shall be entitled to receive (in the case of subparagraphs
1.04(a)(ii), 1.04(a)(iii) and 1.04(a)(iv) below, only at or before the time of
the first request of the Company to the Warrant Agent to countersign Warrant
Certificates in a particular form evidencing Warrants) and shall be fully
protected in relying upon, unless and until such documents have been superseded
or revoked:

          (i) an Issuer Order requesting such countersignature and setting forth
     delivery instructions if the Warrant Certificates are not to be delivered
     to the Company;

          (ii) any Board Resolution, Officer's Certificate and/or executed
     supplemental agreement pursuant to which the forms and terms of the
     Warrants evidenced by such Warrant Certificates were established;

          (iii) an Officer's Certificate setting forth the forms and terms of
     the Warrants evidenced by such Warrant Certificates stating that the form
     or forms and terms of the Warrants evidenced by such Warrant Certificates
     have been established pursuant to Sections 1.02 and 1.03 and comply with
     this Agreement, and covering such other matters as the Warrant Agent may
     reasonably request; and

          (iv) At the option of the Company, either an Opinion of Counsel (as
     defined below) or a letter addressed to the Warrant Agent permitting it to
     rely on an Opinion of Counsel, substantially to the effect that:

               (A) the forms of the Warrant Certificates have been duly
          authorized and established in conformity with the provisions of this
          Agreement;

               (B) in the case of an underwritten offering, the terms of the
          Warrants have been duly authorized and established in conformity with
          the provisions of this Agreement and, in the case of an offering that
          is not underwritten, certain terms of the Warrants have been
          established pursuant to a Board Resolution, an Officer's Certificate
          or a supplemental agreement in accordance with this Agreement, and
          when such other terms as are to be established pursuant to procedures
          set forth in an Issuer Order shall have been established, all terms
          will have been duly

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          authorized by the Company and will have been established in conformity
          with the provisions of this Agreement; and

               (C) when the Warrant Certificates have been executed by the
          Company and countersigned by the Warrant Agent in accordance with the
          provisions of this Agreement and delivered to and duly paid for by the
          purchasers thereof, subject to such other conditions as may be set
          forth in such opinion of counsel, they will have been duly issued
          under this Agreement and the Warrants evidenced thereby will be valid
          and legally binding obligations of the Company, enforceable in
          accordance with their respective terms, and will be entitled to the
          benefits of this Agreement.

     In rendering such opinions, such counsel may qualify any opinions as to
     enforceability by stating that such enforceability may be limited by
     bankruptcy, insolvency, reorganization, liquidation, moratorium and other
     similar laws affecting the rights and remedies of creditors and is subject
     to general principles of equity (regardless of whether such enforceability
     is considered in a proceeding in equity or at law). Such counsel may rely,
     as to all matters governed by the laws of jurisdictions other than the
     State of New York and the federal law of the United States, upon opinions
     of other counsel (copies of which shall be delivered to the Warrant Agent),
     who shall be counsel reasonably satisfactory to the Warrant Agent, in which
     case the opinion shall state that such counsel believes he and the Warrant
     Agent are entitled so to rely. Such counsel may also state that, insofar as
     such opinion involves factual matters, such counsel has relied, to the
     extent such counsel deems proper, upon certificates of officers of the
     Company and its subsidiaries and certificates of public officials.

     "Issuer Order" means a written statement, request or order of the Company
signed in its name by the chairman of the board, the president, the chief
financial officer, the chief strategic and administrative officer, the chief
legal officer, the treasurer, any assistant treasurer or such other person
specifically designated by the Board of Directors to execute any such written
instrument, request or order. Without limiting the generality of the foregoing,
if the Warrants of a series are issued as components of Units, an issuer order
or similar order relating to the Warrants delivered pursuant to an indenture or
unit or similar agreement governing such Units or one or more other components
thereof may also constitute an Issuer Order under this Agreement if addressed to
the Warrant Agent.

     "Opinion of Counsel" means an opinion in writing signed by Sidley Austin
Brown & Wood LLP or by such other legal counsel, who may be an employee of or
counsel to the Company, and who shall be satisfactory to the Warrant Agent.

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     (b) The Warrant Agent shall have the right to decline to countersign and
deliver any Warrant Certificates under this Section if the Warrant Agent, being
advised by counsel, determines that such action may not lawfully be taken by the
Company or if the Warrant Agent (i) in good faith by its board or directors or
board of trustees determines that such action would expose the Warrant Agent to
personal liability to existing registered or beneficial holders of Warrants
(each, a "Warrantholder") or would affect the Warrant Agent's own rights, duties
or immunities under the Warrant Certificates, the Warrants, this Agreement or
otherwise or (ii) in good faith determines that the terms of such Warrants are
administratively unacceptable to it.

     (c) If the Company shall establish pursuant to Section 1.03 that the
Warrants of a series are to be evidenced in whole or in part by one or more
Global Warrant Certificates, then the Company shall execute and the Warrant
Agent shall, in accordance with this Section and the Issuer Order with respect
to such series, countersign and deliver one or more Global Warrant Certificates
that (i) shall evidence all or part of the Warrants of such series issued in
such form and not yet canceled, (ii) shall be registered in the name of the
Depositary (as defined below) for such Warrants or the nominee of such
Depositary, (iii) shall be delivered by the Warrant Agent to such Depositary or
pursuant to such Depositary's instructions and (iv) shall bear a legend
substantially to the following effect: "Unless and until it is exchanged in
whole or in part for Warrants in definitive registered form, this Warrant
Certificate and the Warrants evidenced hereby may not be transferred except as a
whole by the Depositary to the nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary."

     "Depositary" means, with respect to the Warrants of any series that are or
may be evidenced by one or more Global Warrant Certificates, the person or
persons designated as Depositary by the Company pursuant to Section 1.03 hereof
until a successor Depositary shall have become such pursuant to the applicable
provisions of this Agreement, and thereafter "Depositary" shall mean or include
each person who is then a Depositary hereunder, and if at any time there is more
than one such person, "Depositary" as used with respect to the Warrants of any
such series shall mean the Depositary with respect to that series.

     (d) If so required by applicable law, each Depositary for a series of
Warrants must, at the time of its designation and at all times while it serves
as Depositary, be a clearing agency registered under the Securities Exchange Act
of 1934 and any other applicable statute or regulation.

     (e) Each Warrant Certificate shall be dated the date of its
countersignature. A Warrant Certificate shall not be valid for any purpose, and
no Warrant evidenced thereby shall be exercisable, unless and until such Warrant
Certificate has been countersigned by the manual signature of an authorized
officer of the Warrant Agent. Such countersignature by an authorized officer of

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the Warrant Agent upon any Warrant Certificate executed by the Company in
accordance with this Agreement shall be conclusive evidence that the Warrant
Certificate so countersigned and the Warrants evidenced thereby have been duly
issued hereunder.

     Section 1.05. Place of Exercise; Registration of Transfers and Exchanges.
(a) Except as otherwise established pursuant to Section 1.03 with respect to
Warrants of a series, Warrants may be presented for exercise at the Warrant
Agent's Window (as defined below) in accordance with procedures to be
established pursuant to Section 1.03.

     (b) Except as otherwise provided herein or as established pursuant to
Section 1.03 with respect to the Warrants of a series, the Warrant Agent shall
from time to time register the transfer of any outstanding Registered Definitive
Warrant Certificates upon the records to be maintained by it for that purpose
(the "Warrant Register") at the Warrant Agent's Office (as defined below),
subject to such reasonable regulations as the Company or the Warrant Agent may
prescribe with respect to the Warrants of such series, upon surrender thereof at
the Warrant Agent's Window (as defined below), Attention: Transfer Department,
duly endorsed by, or accompanied by a written instrument or instruments of
transfer in form satisfactory to the Warrant Agent and the Company duly executed
by, the Registered Holder(s) (as defined below) thereof or by the duly appointed
legal representative thereof or by a duly authorized attorney, such signature to
be guaranteed by a bank or trust company with a correspondent office in The City
of New York or by a broker or dealer that is a member of the National
Association of Securities Dealers, Inc. (the "NASD") or by a member of a
national securities exchange or in such other manner acceptable to the Warrant
Agent and the Company. Upon any such registration of transfer, one or more new
Warrant Certificates of the same series and like terms evidencing a like number
of unexercised Warrants shall be issued to the transferee(s) and the surrendered
Warrant Certificate shall be cancelled by the Warrant Agent.

     (c) Except as otherwise established for a series of Warrants pursuant to
Section 1.03, at the option of a Registered Holder, Definitive Warrant
Certificates may be exchanged for other Definitive Warrant Certificates
evidencing the same aggregate number of unexercised Warrants of the same series
and of like tenor upon surrender to the Warrant Agent of the Definitive Warrant
Certificates to be exchanged at the Warrant Agent's Window, Attention: Transfer
Department. The "Warrant Agent's Window" shall be the window of the Warrant
Agent maintained for purposes of transfer and tender in the Borough of
Manhattan, The City of New York (or at the address of any additional agency
established by the Company pursuant to Section 1.09 hereof, or at the address of
any successor Warrant Agent (as provided in Section 5.03)), which is, on the
date of this Agreement, JPMorgan Chase Bank, Corporate Trust Securities Window,
4 New York Plaza, Ground Floor, New York, New York 10004. If the Warrants of any
series are issued in both registered and unregistered form, except as otherwise
established for such series pursuant to Section 1.03, at the option of the
holder

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thereof, Warrant Certificates evidencing Bearer Warrants of any series
may be exchanged for Definitive Warrant Certificates evidencing an equal number
of unexercised Registered Warrants of the same series and of like tenor upon
surrender of such Warrant Certificates evidencing Bearer Warrants to be
exchanged at the Warrant Agent's Window, Attention: Transfer Department. Unless
otherwise established for such series pursuant to Section 1.03, Registered
Warrants of any series may not be exchanged for Bearer Warrants of such series.
Upon surrender of any unexercised Warrant Certificate for exchange, the Warrant
Agent shall cancel such Warrant Certificate, and the Company shall execute, and
the Warrant Agent shall countersign and deliver, one or more new Warrant
Certificates evidencing a like number of unexercised Warrants of the same series
and of like tenor.

     (d) Warrants evidenced by the Warrant Certificates issued upon transfer or
exchange pursuant to paragraph (b) or (c) of this Section shall be valid
obligations of the Company, constituting the same obligations of the Company as
the Warrants evidenced by the Warrant Certificates surrendered for transfer or
exchange, and entitled to the same benefits under this Agreement as were such
Warrants evidenced by the Warrant Certificates prior to such surrender.

     (e) Except as provided in Section 1.06, no service charge shall be made for
any registration of transfer or exchange of Warrant Certificates, but the
Company may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of
transfer or exchange of Warrant Certificates, other than exchanges pursuant to
this Section not involving any transfer.

     (f) In the event that upon any exercise of Warrants evidenced by a Warrant
Certificate the number of Warrants exercised shall be less than the total number
of Warrants evidenced by such Warrant Certificate, there shall be issued to the
Registered Holder thereof (or, in the case of Bearer Warrants, the holder
thereof) or his assignee a new Warrant Certificate evidencing the number of
Warrants of the same series and of like tenor not exercised.

     (g) Warrant Certificates evidencing Bearer Warrants shall be transferable
by delivery.

     (h) Notwithstanding any other provision of this Agreement, unless and until
it is exchanged in whole or in part for Definitive Warrant Certificates, a
Global Warrant Certificate evidencing all or a portion of the Warrants of a
series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

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     (i) If at any time the Depositary for any series of Warrants notifies the
Company that it is unwilling or unable to continue as Depositary for such series
or if at any time the Depositary for such series shall no longer be eligible
under this Agreement, the Company shall appoint a successor Depositary with
respect to such series. If a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such ineligibility, the Company's election pursuant to
Section 1.03 that such series be evidenced by one or more Global Warrant
Certificates shall no longer be effective and the Company will execute, and the
Warrant Agent, upon receipt of an Officer's Certificate for the countersignature
and delivery of Definitive Warrant Certificates evidencing Warrants of such
series, will countersign and deliver Definitive Warrant Certificates evidencing
Warrants of such series and of like tenor in an aggregate number equal to the
number of the unexercised Warrants represented by such Global Warrant
Certificate or Certificates in exchange for such Global Warrant Certificate or
Certificates.

     (j) If established pursuant to Section 1.03 with respect to a series of
Warrants evidenced in whole or in part by one or more Global Warrant
Certificates, the Depositary for such series may surrender such Global Warrant
Certificate or Certificates in exchange in whole or in part for Definitive
Warrant Certificates evidencing Warrants of the same series and of like tenor on
such terms as are acceptable to the Company and such Depositary. Thereupon, the
Company shall execute, and the Warrant Agent shall countersign and deliver,
without service charge,

          (i) to the person specified by such Depositary a new Definitive
     Warrant Certificate of the same series and of like tenor in an aggregate
     number equal to and in exchange for such person's beneficial interest in
     the Warrants evidenced by such Global Warrant Certificate or Certificates;
     and

          (ii) to such Depositary a new Global Warrant Certificate or
     Certificates evidencing Warrants of the same series and of like tenor in
     number equal to the difference, if any, between the number of unexercised
     Warrants evidenced by the surrendered Global Warrant Certificates and the
     number of unexercised Warrants evidenced by such Definitive Warrant
     Certificate countersigned and delivered pursuant to clause 1.05(j)(i)
     above.

Upon the exchange of a Global Warrant Certificate for Definitive Warrant
Certificates, such Global Warrant Certificate shall be canceled by the Warrant
Agent or an agent of the Company or the Warrant Agent. Registered Definitive
Warrant Certificates issued in exchange for a Registered Global Warrant
Certificate pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depositary for such series, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Warrant Agent or an agent of the Company or the Warrant Agent. The
Warrant

                                       11
<PAGE>

Agent or such agent shall deliver such Warrant Certificates to or as directed by
the persons in whose names such Warrant Certificates are so registered.
Definitive Bearer Warrant Certificates issued in exchange for a Global Bearer
Warrant Certificate pursuant to this Section shall be issued in such authorized
denominations as the Depositary for such series, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Warrant
Agent or an agent of the Company or the Warrant Agent. The Warrant Agent or such
agent shall deliver such Warrant Certificates to or as directed by the
Depositary for such series.

     (k) Notwithstanding anything herein or in the terms of any series of
Warrants to the contrary, none of the Company, the Warrant Agent or any agent of
the Company or the Warrant Agent (any of which, other than the Company, shall
rely on an Officer's Certificate and an Opinion of Counsel) shall be required to
exchange any Bearer Warrant for a Registered Warrant if such exchange would
result in adverse Federal income tax consequences to the Company under then
applicable United States Federal income tax laws.

     (l) The Company will maintain one or more offices or agencies in a city or
cities located outside the United States (including any city in which such an
agency is required to be maintained under the rules of any stock exchange on
which the Warrants of such series are listed) where the Bearer Warrants, if any,
of each series may be presented for exercise and payment. No payment on any
Bearer Warrants will be made upon presentation of such Bearer Warrant at an
agency of the Company within the United States nor will any payment be made by
transfer to an account in, or by mail to an address in, the United States unless
pursuant to applicable United States laws and regulations then in effect such
payment can be made without adverse tax consequences to the Company.
Notwithstanding the foregoing, payments in United States dollars with respect to
Bearer Warrants of any series which are payable in United States dollars may be
made at an agency of the Company maintained in the Borough of Manhattan, The
City of New York if such payment in United States dollars at each agency
maintained by the Company outside the United States for payment on such Bearer
Warrants is illegal or effectively precluded by exchange controls or other
similar restrictions.

     (m) The Company may from time to time designate one or more additional
offices or agencies where the Warrants of a series may be presented for exercise
and payment, where the Warrants of that series may be presented for exchange as
provided in this Agreement and where the Registered Warrants of that series may
be presented for registration of transfer as in this Agreement provided, and the
Company may from time to time rescind any such designation, as the Company may
deem desirable or expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
the agencies provided for in this Section. The Company will give to the Warrant
Agent prompt written notice of any such designation or rescission thereof.

                                       12
<PAGE>

     Section 1.06. Mutilated or Missing Warrant Certificates. (a) If any
Warrant Certificate evidencing Warrants of any series is mutilated, lost, stolen
or destroyed, the Company may in its discretion execute, and the Warrant Agent
may countersign and deliver, in exchange and substitution for the mutilated
Warrant Certificate, or in replacement for the Warrant Certificate lost, stolen
or destroyed, a new Warrant Certificate representing an equivalent number of
unexercised Warrants of the same series and of like tenor, bearing an
identification number, if applicable, not contemporaneously outstanding, but
only (in case of loss, theft or destruction) upon receipt of evidence
satisfactory to the Company and the Warrant Agent of such loss, theft or
destruction of such Warrant Certificate and security or indemnity, if requested,
also satisfactory to them. Applicants for such substitute Warrant Certificates
shall also comply with such other reasonable regulations and pay such other
reasonable charges as the Company or the Warrant Agent may prescribe.

     (b) In case the Warrants evidenced by any such mutilated, lost, stolen or
destroyed Warrant Certificate have been or are about to be exercised, or deemed
to be exercised, the Company in its absolute discretion may, instead of issuing
a new Warrant Certificate, and subject to the conditions set forth in clause
1.06(a) above, direct the Warrant Agent to treat the same as if it had received
the Warrant Certificate together with an irrevocable exercise notice in proper
form in respect thereof, as established with respect to the Warrants of such
series.

     (c) The Warrants evidenced by each new Warrant Certificate issued pursuant
to this Section in lieu of any lost, stolen or destroyed Warrant Certificate
shall be original, additional contractual obligations of the Company, and shall
be entitled to the same benefits under this Agreement as the Warrants evidenced
by the Warrant Certificate that was lost, stolen or destroyed.

     (d) Upon the issuance of any new Warrant Certificate in accordance with
this Section, the Company may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and
any other expenses (including the fees and expenses of the Warrant Agent)
connected therewith. (e) The provisions of this Section are exclusive and shall
preclude (to the extent lawful) any other rights and remedies with respect to
the replacement or payment of mutilated, lost, stolen or destroyed Warrant
Certificates.

     Section 1.07. Registered Holders. (a) Prior to due presentment for
registration of transfer, the Company, the Warrant Agent, and any agent of the
Company or the Warrant Agent may deem and treat the person in whose name a
Warrant Certificate shall be registered in the Warrant Register (a "Registered
Holder") as the absolute owner of the Registered Warrants evidenced thereby
(notwithstanding any notation of ownership or other writing on the Warrant
Certificate) for any purpose whatsoever, and as the person entitled to exercise
the rights represented by the Registered Warrants evidenced thereby, and neither
the

                                       13
<PAGE>

Company nor the Warrant Agent, nor any agent of the Company or the Warrant
Agent, shall be affected by any notice to the contrary. All payments on account
of any Registered Warrant to the Registered Holder, or upon his order, shall be
valid, and to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability of the Company for moneys paid upon such Registered
Warrant. This Section shall be without prejudice to the rights of Warrantholders
as described elsewhere herein.

     (b) The Company, the Warrant Agent and any agent of the Company or the
Warrant Agent may treat the holder of any Bearer Warrant as the absolute owner
of such Bearer Warrant for the purpose of exercising the rights represented
thereby and for all other purposes, and neither the Company, the Warrant Agent,
nor any agent of the Company or the Warrant Agent shall be affected by any
notice to the contrary. All payments on account of such Bearer Warrant made to
any such person, or upon his order, shall be valid, and, to the extent of the
sum or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon such Bearer Warrant. This Section shall be without prejudice to the
rights of Warrantholders as described elsewhere herein.

     Section 1.08. Cancellation. All Warrant Certificates surrendered to the
Warrant Agent for redemption or registration of transfer or exchange shall be
promptly cancelled by the Warrant Agent. The Company may at any time deliver to
the Warrant Agent for cancellation any Warrant Certificates previously
countersigned and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Warrant Certificates so delivered shall, upon receipt
by the Warrant Agent of an Issuer Order, be promptly cancelled by the Warrant
Agent. No Warrant Certificates shall be countersigned in lieu of or in exchange
for any Warrant Certificates cancelled as provided in this Section, except as
permitted by this Agreement. All cancelled Warrant Certificates held by the
Warrant Agent shall be disposed of in accordance with its customary procedures
and a certificate of their disposition shall be delivered by the Warrant Agent
to the Company, unless by Issuer Order the Company shall direct that cancelled
Warrant Certificates be returned to it.

     If the Company notifies the Trustee of its election to redeem Warrant
Securities pursuant to the Indenture or the terms thereof, the Company may
elect, and shall give notice to the Warrant Agent of its election, to cancel the
unexercised Warrants to purchase or sell such Warrant Securities, the Warrant
Certificates evidencing such Warrants and the rights evidenced thereby. Promptly
after receipt of such notice by the Warrant Agent, the Company shall, or, at the
Company's request, the Warrant Agent shall in the name of and at the expense of
the Company, give notice of such cancellation, as provided in Section 6.04, to
the Holders of such Warrant Certificates, such notice to be so given not less
than 30 nor more than 60 days (or within any other redemption notice period
specified in such Warrant Securities) prior to the date fixed for the redemption
of the Warrant Securities pursuant to the Indenture or the terms thereof. The
unexercised Warrants, the Warrant Certificates and the rights evidenced thereby
shall be

                                       14
<PAGE>

cancelled and become void on the 15th day prior to such date fixed for
redemption.

     If the Company or any affiliate of the Company shall acquire any Warrant
Certificate, such acquisition shall not operate as a cancellation of such
Warrant Certificate unless and until such Warrant Certificate is delivered to
the Warrant Agent for the purpose of cancellation.

     Section 1.09. Additional Warrant Agents. Whenever the Company shall
appoint a warrant agent other than the Warrant Agent with respect to the
Warrants of any series, it will cause such warrant agent to execute and deliver
to the Warrant Agent an instrument in which such agent shall agree with the
Warrant Agent, subject to the provisions of this Section,

     (a) that it will hold all Warrant Property received by it as such agent for
any payment with respect to the Warrants of such series in trust for the benefit
of the Warrantholders of such series if any, or of the Warrant Agent, and

     (b) that it will give the Warrant Agent notice of any failure by the
Company to make any payment with respect to the Warrants of such series when the
same shall be due and payable.

     The Company will, on or prior to each date of any payment of Warrants of
any such series, deposit with the Warrant Agent or any such additional warrant
agent a sum sufficient to make such payment, and the Company will promptly
notify the Warrant Agent of any failure to take such action with respect to any
such additional warrant agent.

     Section 1.10. Appointment of Calculation Agents. Pursuant to Section 1.03
hereof, the Company may, in connection with any series of Warrants appoint
Morgan Stanley & Co. Incorporated, Morgan Stanley & Co. International Limited or
any other person or entity as Calculation Agent to make any calculations as may
be required pursuant to the terms of any such series of Warrants. Any such
Calculation Agent shall act as an independent expert and, unless otherwise
provided by this Agreement, its calculations and determinations under this
Agreement shall, absent manifest error, be final and binding on the Company, the
Warrant Agent and the Warrantholders. Any such calculations will be made
available to a Warrantholder for inspection at the Warrant Agent's Office.

                                   ARTICLE 2
                        DURATION AND EXERCISE OF WARRANTS

     Section 2.01. Duration and Exercise of Warrants. All terms with respect to
duration and exercise of Warrants will be established pursuant to Section 1.03
for each series of Warrants.

                                       15
<PAGE>

     Section 2.02. Return of Money Held Unclaimed for Two Years. Except as
otherwise provided herein, any money or other assets deposited with or paid to
the Warrant Agent for the payment of any Warrants and not paid but remaining
unclaimed for two years after the date upon which such money or other assets
shall have become due and payable shall be repaid by the Warrant Agent to the
Company, at the Company's request pursuant to an Officer's Certificate, and the
holders of such Warrants shall thereafter look only to the Company for any
payment which such holders may be entitled to collect and all liability of the
Warrant Agent with respect to such money shall thereupon cease; provided that
the Warrant Agent, before making any such repayment, may (but shall not be
obligated to) at the expense of the Company notify (i) in the case of Registered
Warrants evidenced by Definitive Warrant Certificates, the Registered Holders,
(ii) in the case of Warrants evidenced by one or more Global Warrant
Certificates, the participants of the Depositary, and (iii) in the case of
Bearer Warrants evidenced by Definitive Warrant Certificates, the holders
thereof, in each case as provided in Section 6.04, that said money has not been
so applied and remains unclaimed and that after a date named in the notification
any unclaimed balance of said money then remaining will be returned to the
Company.

                                   ARTICLE 3
              OTHER PROVISIONS RELATING TO RIGHTS OF WARRANTHOLDERS

     Section 3.01. Warrantholder May Enforce Rights. Notwithstanding any of the
provisions of this Agreement, any Warrantholder may, without the consent of the
Warrant Agent, the Depositary, any participant of the Depositary, any other
Warrantholder, the holder of any Warrant Property or, if applicable, the common
depositary for Euroclear Bank S.A./N.V., or its successor, as operator of the
Euroclear System, and Clearstream Banking, societe anonyme, Luxembourg, or its
successor, in and for its own behalf, enforce, and may institute and maintain,
any suit, action or proceeding against the Company suitable to enforce, or
otherwise in respect of, its right to exercise its Warrants as provided in this
Agreement and established with respect to such Warrants pursuant to Section
1.03.

     Section 3.02. No Rights as Holder of Warrant Property Conferred by Warrants
or Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby
shall entitle the holder or any beneficial owner thereof to any of the rights of
a holder or beneficial owner of Warrant Property, including, without limitation,
the right to receive the payment of principal of (premium, if any) or interest,
if any, on Warrant Property or to vote or to enforce any rights under any
documents governing Warrant Property.

     Section 3.03. Merger, Consolidation, Conveyance or Transfer. (a) If at any
time there shall be a merger or consolidation of the Company or a conveyance or
transfer of its property and assets substantially as an entirety, then in any
such

                                       16
<PAGE>

event the successor or assuming corporation, if other than the Company, shall by
an instrument of assumption delivered to the Warrant Agent succeed to and be
substituted for the Company, with the same effect (subject to the Indenture, in
the case of Warrants to purchase or sell Warrant Securities) as if it had been
named herein and in the Warrant Certificates as the Company. The Company shall
thereupon, except in the case of a transfer by way of lease, be relieved of any
further obligation hereunder and under the Warrants and the Warrant
Certificates, and the Company, as the predecessor corporation, except in the
case of a transfer by way of lease, may thereupon or at any time thereafter be
dissolved, wound up or liquidated. Such successor or assuming corporation may
thereupon cause to be signed, and may issue either in its own name or in the
name of the Company, Warrant Certificates evidencing any or all of the Warrants
issuable hereunder that theretofore shall not have been signed by the Company
(and, in the case of Warrants to purchase or sell Warrant Securities, may
execute and deliver Warrant Securities in its own name pursuant to the
Indenture, in fulfillment of its obligations to deliver Warrant Securities upon
exercise of the Warrants). All the Warrants so issued shall in all respects have
the same legal rank and benefit under this Agreement as the Warrants theretofore
or thereafter issued in accordance with the terms of this Agreement as though
all of such Warrants had been issued at the date of the execution hereof. In any
case of any such merger, consolidation, conveyance or transfer, such changes in
phraseology and form (but not in substance) may be made in the Warrant
Certificates representing the Warrants thereafter to be issued as may be
appropriate.

     (b) The Warrant Agent may receive an Opinion of Counsel as conclusive
evidence that any such merger, consolidation, conveyance, transfer or assumption
complies with the provisions of this Section and the Indenture (in the case of
Warrants to purchase or sell Warrant Securities).

                                   ARTICLE 4
               WARRANTS ACQUIRED BY THE COMPANY; PAYMENT OF TAXES

     Section 4.01. Warrants Acquired by the Company. (a) In the event the
Company shall purchase or otherwise acquire Warrants, such Warrants may, at the
option of the Company, be (i) in the case of Bearer Warrants or Registered
Warrants evidenced by Definitive Warrant Certificates, delivered to the Warrant
Agent, and if so delivered, the Warrant Agent shall promptly cancel such
Warrants on the records of the Warrant Agent or (ii) in the case of Warrants
evidenced by one or more Global Warrant Certificates, surrendered free through a
participant of the Depositary to the Depositary for credit to the account of the
Warrant Agent maintained at the Depositary, and if so credited, the Warrant
Agent shall promptly note the cancellation of such Warrants by notation on the
records of the Warrant Agent and the Warrant Agent shall cause its records to be
marked to reflect the reduction in the number of Warrants evidenced by the
Global Warrant Certificate or Certificates by the number of Warrants so canceled

                                       17
<PAGE>

promptly after such account is credited. Warrants acquired by the Company may
also, at the option of the Company, be resold by the Company directly or to or
through any of its affiliates in lieu of being surrendered to the Warrant Agent
or credited to its account. No Warrant Certificate shall be countersigned in
lieu of or in exchange for any Warrant that is canceled as provided herein,
except as otherwise expressly permitted by this Agreement.

     (b) Any canceled Warrant Certificate held by the Warrant Agent under this
Agreement shall be disposed of by the Warrant Agent in accordance with its
customary procedures unless otherwise directed by the Company, and the Warrant
Agent shall deliver a certificate of disposition to the Company evidencing the
same.

     Section 4.02. Payment of Taxes. The Company will pay all stamp, withholding
and other duties, if any, attributable to the initial issuance of each series or
tranche of Warrants; provided, however, that, anything in this Agreement to the
contrary notwithstanding, the Company shall not be required to pay any tax or
other governmental charge that may be payable in respect of any transfer
involving any beneficial or record interest in, or ownership interest of, any
Warrants or Warrant Certificates.

                                   ARTICLE 5
                          CONCERNING THE WARRANT AGENT

     Section 5.01. Warrant Agent. The Company hereby appoints JPMorgan Chase
Bank as Warrant Agent of the Company in respect of the Warrants upon the terms
and subject to the conditions set forth herein; and JPMorgan Chase Bank hereby
accepts such appointment. The Warrant Agent shall have the powers and authority
granted to and conferred upon it in this Agreement and such further powers and
authority to act on behalf of the Company as the Company may hereafter grant to
or confer upon it with its consent. All of the terms and provisions with respect
to such powers and authority contained in any Warrant Certificate are subject to
and governed by the terms and provisions hereof.

     Section 5.02. Condition of Warrant Agent's Obligations. The Warrant Agent
accepts its obligations herein set forth upon the terms and conditions hereof,
including the following, to all of which the Company agrees and to all of which
the rights hereunder of the holders from time to time of the Warrants shall be
subject:

     (a) The Company agrees promptly to pay the Warrant Agent the compensation
to be agreed upon with the Company for all services rendered by the Warrant
Agent and to reimburse the Warrant Agent for its reasonable out-of-pocket
expenses (including attorneys' fees and expenses) incurred by the Warrant Agent
without negligence or bad faith on its part in connection with the services
rendered by it hereunder. The Company also agrees to indemnify the Warrant

                                       18
<PAGE>

Agent for, and to hold it harmless against, any loss, liability or expense
(including reasonable attorneys' fees and expenses) incurred without negligence
or bad faith on the part of the Warrant Agent, arising out of or in connection
with its acting as such Warrant Agent hereunder, as well as the reasonable costs
and expenses of defending against any claim of liability in the premises. The
obligations of the Company under this Section shall survive the expiration of
all Warrants issued under this Agreement.

     (b) In acting under this Agreement, the Warrant Agent is acting solely as
agent of the Company and does not assume any obligation or relationship of
agency or trust for or with any Warrantholders.

     (c) The Warrant Agent may consult with counsel satisfactory to it
(including counsel to the Company), and the opinion of such counsel shall be
full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the
opinion of such counsel.

     (d) The Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or thing suffered by it in reliance upon any
notice, direction, consent, certificate, affidavit, opinion, statement or other
paper or document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.

     (e) The Warrant Agent and its officers, directors and employees may become
the owner of, or acquire any interest in, any Warrants or other obligations of
the Company, with the same rights that it or they would have if it were not the
Warrant Agent hereunder and, to the extent permitted by applicable law, it or
they may engage or be interested in any financial or other transaction with the
Company and may act on behalf of, or as depositary, trustee or agent for, any
committee or body of owners or holders of Warrants or other obligations of the
Company as freely as if it were not the Warrant Agent hereunder. Nothing in this
Warrant Agreement shall be deemed to prevent the Warrant Agent from acting as
Trustee under the Indenture.

     (f) Money held by the Warrant Agent in trust hereunder need not be
segregated from other funds held by the Warrant Agent, except to the extent
required by law. The Warrant Agent shall be under no obligation to invest or pay
interest on any money received by it hereunder, except as otherwise agreed with
the Company. The Warrant Agent shall not be responsible for advancing funds on
behalf of the Company. Any interest accrued on funds deposited with the Warrant
Agent under this Agreement shall be paid to the Company from time to time and
the Holders of Warrants shall have no claim to any such interest.

     (g) The Warrant Agent shall not be under any responsibility with respect to
the validity or sufficiency of this Agreement or the execution and delivery
hereof (except the due authorization, execution and delivery hereof by

                                       19
<PAGE>

the Warrant Agent) or with respect to the validity or execution of the Warrant
Certificates (except its countersignature thereof).

     (h) The recitals contained herein and in the Warrant Certificates (except
as to the Warrant Agent's countersignature thereon) shall be taken as the
statements of the Company, and the Warrant Agent assumes no responsibility for
the correctness of the same.

     (i) The Warrant Agent shall be obligated to perform such duties as are
specifically set forth in this Agreement and no implied duties or obligations
shall be read into this Agreement against the Warrant Agent. The Warrant Agent
shall not be under any obligation to take any action hereunder likely to involve
it in any expense or liability, the payment of which is not, in its reasonable
opinion, assured to it. The Warrant Agent shall not be accountable or under any
duty or responsibility for the application by the Company of any proceeds of the
issuance of any Warrants. The Warrant Agent shall have no duty or responsibility
in case of any default by the Company in the performance of its covenants or
agreements contained in this Agreement or in any Warrant Certificate or in the
case of the receipt of any written demand from a holder of a Warrant with
respect to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.02, to make
any demand upon the Company.

     Section 5.03. Resignation and Appointment of Successor. (a) The Company
agrees, for the benefit of the holders from time to time of the Warrants, that
there shall at all times be a Warrant Agent hereunder with respect to each
series of Warrants until all the Warrants of such series are no longer
outstanding or until monies for the payment of all outstanding Warrants of such
series, if any, shall have been paid to the Warrant Agent and shall have been
returned to the Company as provided in Section 2.02, whichever occurs earlier.

     (b) The Warrant Agent may at any time resign as such agent with respect to
any series of Warrants by giving written notice to the Company of such intention
on its part, specifying the date on which its desired resignation shall become
effective, subject to the appointment of a successor Warrant Agent with respect
to such series and acceptance of such appointment by such successor Warrant
Agent as hereinafter provided. The Warrant Agent hereunder may be removed with
respect to any series of Warrants at any time by the filing with it of an
instrument in writing signed by or on behalf of the Company and specifying such
removal and the date when it shall become effective. Such resignation or removal
shall take effect upon the appointment by the Company, as hereinafter provided,
of a successor Warrant Agent with respect to such series (which shall be a
banking institution organized under the laws of the United States of America or
one of the states thereof, have a combined capital and surplus of at least
$50,000,000 (as set forth in its most recent reports of condition published
pursuant to law or to the requirements of any United States federal or state
regulatory or supervisory authority) and having an office in the Borough of

                                       20
<PAGE>

Manhattan, The City of New York) and the acceptance of such appointment by such
successor Warrant Agent. In the event a successor Warrant Agent has not been
appointed and accepted its duties within 90 days of the Warrant Agent's notice
of resignation, the Warrant Agent may apply to any court of competent
jurisdiction for the designation of a successor Warrant Agent with respect to
such series. The obligation of the Company under Section 5.02(a) shall continue
to the extent set forth therein notwithstanding the resignation or removal of
the Warrant Agent with respect to any series of Warrants.

     (c) In case at any time the Warrant Agent with respect to any series of
Warrants shall give notice of its intent to resign, or shall be removed, or
shall become incapable of acting, or shall be adjudged a bankrupt or insolvent,
or make an assignment for the benefit of its creditors, or consent to the
appointment of a receiver or custodian of all or any substantial part of its
property, or shall admit in writing its inability to pay or meet its debts as
they mature, or if a receiver or custodian of it or of all or any substantial
part of its property shall be appointed, or if any public officer shall have
taken charge or control of the Warrant Agent or of its property or affairs, for
the purpose of rehabilitation, conservation or liquidation, a successor Warrant
Agent, qualified as aforesaid, shall be promptly appointed by the Company by an
instrument in writing, filed with the successor Warrant Agent. Upon the
appointment as aforesaid of a successor Warrant Agent and acceptance by the
latter of such appointment, the Warrant Agent so superseded shall cease to be
Warrant Agent hereunder with respect to such series.

     (d) Any successor Warrant Agent appointed hereunder with respect to any
series of Warrants shall execute, acknowledge and deliver to its predecessor and
to the Company an instrument accepting such appointment hereunder, and thereupon
such successor Warrant Agent, without any further act, deed or conveyance, shall
become vested with all the authority, rights, powers, trusts, immunities, duties
and obligations of such predecessor with like effect as if originally named as
Warrant Agent with respect to such series hereunder, and such predecessor, upon
payment of its charges and disbursements then unpaid, shall thereupon become
obligated to transfer, deliver and pay over, and such successor Warrant Agent
shall be entitled to receive, all monies, securities and other property on
deposit with or held by such predecessor (including, without limitation, the
Warrant Register) as Warrant Agent with respect to such series hereunder.

     (e) If a successor Warrant Agent is appointed with respect to the Warrants
of one or more (but not all) series, the Company, the predecessor Warrant Agent
and each successor Warrant Agent with respect to the Warrants of any applicable
series shall execute and deliver an agreement supplemental hereto that shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers and duties of the predecessor Warrant Agent with
respect to the Warrants of any series as to which the predecessor Warrant Agent
is not retiring shall continue to be vested in the predecessor Warrant Agent,
and shall add to or change any of the provisions of this Agreement as shall be

                                       21
<PAGE>

necessary to provide for or facilitate the administration of the Warrants
hereunder by more than one Warrant Agent, it being understood that nothing
herein or in such supplemental agreement shall constitute such Warrant Agents
Co-Warrant Agents of the same Warrants and that each such Warrant Agent shall be
a Warrant Agent with respect to separate series of Warrants.

     (f) Any corporation into which the Warrant Agent hereunder may be merged or
converted or any corporation with which the Warrant Agent may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to
which the Warrant Agent shall be a party or any corporation to which the Warrant
Agent shall sell or otherwise transfer all or substantially all the corporate
agency assets and business of the Warrant Agent, provided that it shall be
qualified as aforesaid, shall be the successor Warrant Agent under this
Agreement without the execution or filing of any paper or any further act on the
part of any of the parties hereto.

                                   ARTICLE 6
                                  MISCELLANEOUS

     Section 6.01. Amendment. (a) This Agreement and the terms of the Warrants
of any series may be amended (by means of an agreement supplemental hereto or
otherwise) by the Company and the Warrant Agent, without the consent of the
Warrantholders of any series of Warrants, (i) for the purpose of curing any
ambiguity, or of curing, correcting or supplementing any defective or
inconsistent provision contained herein or therein, (ii) to establish the form
or terms of Warrant Certificates or Warrants of any series as permitted by
Sections 1.02 and 1.03, (iii) to evidence and provide for the acceptance of
appointment hereunder by a successor Warrant Agent with respect to the Warrants
of any series and to add to or change any of the provisions of this Agreement as
shall be necessary to provide for or facilitate the administration of the
Warrants hereunder by more than one Warrant Agent pursuant to Section 5.03, or
(iv) in any other manner which the Company may deem necessary or desirable and
which will not materially and adversely affect the interests of the
Warrantholders of such series.

     (b) The Company and the Warrant Agent may modify or amend this Agreement
(by means of an agreement supplemental hereto or otherwise) with the consent of
Warrantholders holding not less than a majority in number of the then
outstanding Warrants of all series affected by such modification or amendment,
for any purpose; provided, however, that no such modification or amendment that
changes the exercise price of the Warrants of any series, reduces the amount
receivable upon exercise, cancellation or expiration of the Warrants other than
in accordance with the antidilution provisions or other similar adjustment
provisions included in the terms of the Warrants, shortens the period of time
during which the Warrants of such series may be exercised, or otherwise
materially and adversely affects the exercise rights of the affected
Warrantholders or reduces the

                                       22
<PAGE>

percentage of the number of outstanding Warrants of such series, the consent of
whose holders is required for modification or amendment of this Agreement, may
be made without the consent of each Warrantholder affected thereby. In the case
of Warrants evidenced by one or more Global Warrant Certificates, the Company
and the Warrant Agent shall be entitled to rely upon certification in form
satisfactory to each of them that any requisite consent has been obtained from
holders of beneficial ownership interests in the relevant Global Warrant
Certificate. Such certification may be provided by participants of the
Depositary acting on behalf of such beneficial owners of Warrants, provided that
any such certification is accompanied by a certification from the Depositary as
to the Warrant holdings of such participants.

     (c) An amendment that changes or eliminates any provision of this Agreement
that has expressly been included solely for the benefit of one or more
particular series of Warrants, or that modifies the rights of Warrantholders of
such series with respect to such provision, shall be deemed not to affect the
rights under this Agreement of the Warrantholders of any other series.

     (d) Upon the request of the Company, accompanied by a copy of a Board
Resolution (which Board Resolution may provide general terms or parameters for
such action and may provide that the specific terms of such action may be
determined in accordance with or pursuant to an Issuer Order) authorizing the
execution of any such amendment, and upon the filing with the Warrant Agent of
evidence of the consent of Warrantholders as aforesaid, the Warrant Agent shall
join with the Company in the execution of such amendment unless such amendment
affects the Warrant Agent's own rights, duties or immunities under this
Agreement or otherwise, in which case the Warrant Agent may in its discretion,
but shall not be obligated to, enter into such amendment. In executing, or
accepting the additional duties created by, any amendment permitted by this
Article, the Warrant Agent shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such amendment is authorized or permitted by this Agreement. The fact and date
of the execution of any consent of Warrantholders, or the authority of the
Person executing the same, may be proved in any manner which the Warrant Agent
(with the approval of the Company) deems sufficient.

     (e) It shall not be necessary for the consent of the Warrantholders under
this Section to approve the particular form of any proposed amendment, but it
shall be sufficient if such consent shall approve the substance thereof.

     Section 6.02. Notices and Demands to the Company and the Warrant Agent. If
the Warrant Agent shall receive any notice or demand addressed to the Company by
any Warrantholder pursuant to the provisions of this Agreement or the terms of
the Warrants of any series, the Warrant Agent shall promptly forward such notice
or demand to the Company.

                                       23
<PAGE>

     Section 6.03. Addresses for Notices. Any communications to the Warrant
Agent with respect to this Agreement shall be in writing addressed to 4 New York
Plaza, Ground Floor, New York, New York 10004, Attention: Corporate and
Municipal Agency Department (the "Warrant Agent's Office") and any
communications to the Company with respect to this Agreement shall be addressed
to Morgan Stanley, 1585 Broadway, New York, New York 10036, Attention: Treasurer
(or in each case to such other address as shall be given in writing to the other
party hereto).

     Section 6.04. Notices to Warrantholders. The Company may cause to have
notice given to the Warrantholders of any series by providing the Warrant Agent
with a form of notice to be distributed by (i) in the case of Registered
Warrants evidenced by Definitive Warrant Certificates, the Warrant Agent to
Registered Holders by first class mail, (ii) in the case of Warrants evidenced
by one or more Global Warrant Certificates, the Depositary to be distributed by
the Depositary to its participants in accordance with the custom and practices
of the Depositary or (iii) in the case of Bearer Warrants evidenced by
Definitive Warrant Certificates, either (a) the customary notice provisions of
the clearing system or systems through which beneficial interests in such Bearer
Warrants are owned if such Bearer Warrants are held only in global form or (b)
publication at least once in an Authorized Newspaper (as defined below) in The
City of New York, and Western Europe.

     "Authorized Newspaper" means a newspaper (which, in the case of The City of
New York, will, if practicable, be The Wall Street Journal (Eastern Edition)
and, in the case of Western Europe, will, if practicable, be the Financial Times
(London Edition)) published in an official language of the country of
publication customarily published at least once a day for at least five days in
each calendar week and of general circulation in The City of New York, and
Western Europe, as applicable. If it shall be impractical in the opinion of the
Warrant Agent to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or other notice in lieu thereof that is
made or given with the approval of the Warrant Agent shall constitute a
sufficient publication of such notice.

     Section 6.05. Obtaining of Approvals. The Company will from time to time
take all action that may be necessary to obtain and keep effective any and all
filings or notices under applicable law, which may be or become required in
connection with the issuance, sale, trading, transfer or delivery of the Warrant
Certificates or the exercise of the Warrants.

     Section 6.06. Persons Having Rights under this Agreement. Nothing in this
Agreement expressed or implied and nothing that may be inferred from any of the
provisions hereof is intended, or shall be construed, to confer upon, or give
to, any person or corporation other than the Company, the Warrant Agent and the
Warrantholders any right, remedy or claim under or by reason of this Agreement
or of any covenant, condition, stipulation, promise or agreement hereof, and all

                                       24
<PAGE>

covenants, conditions, stipulations, promises and agreements contained in this
Agreement shall be for the sole and exclusive benefit of the Company, the
Warrant Agent, their respective successors and the Warrantholders.

     Section 6.07. Inspection of Agreement. A copy of this Agreement shall be
available at all reasonable times at the Warrant Agent's Office for inspection
by the Warrantholders, participants of the Depositary certified as such by the
Depositary or any person certified by any such participant to be an indirect
participant of the Depositary or any person certified by any such participant to
be a beneficial owner of a Warrant, in each case, on behalf of whom such
participant holds Warrants.

     Section 6.08. Officer's Certificates and Opinions of Counsel; Statements to
Be Contained Therein. (a) Each certificate or opinion provided for in this
Agreement and delivered to the Warrant Agent with respect to compliance with a
condition or covenant provided for in this Agreement shall include (i) a
statement that the person making such certificate or opinion has read such
covenant or condition, (ii) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based, (iii) a statement that, in the opinion of
such person, such person has made such examination or investigation as is
necessary to enable such person to express an informed opinion as to whether or
not such covenant or condition has been complied with and (iv) a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

     (b) Any certificate, statement or opinion of an officer of the Company may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of or representations by counsel, unless such officer knows that the certificate
or opinion or representations with respect to the matters upon which such
officer's certificate, statement or opinion may be based as aforesaid are
erroneous, or in the exercise of reasonable care should know that the same are
erroneous. Any certificate, statement or opinion of counsel may be based,
insofar as it relates to factual matters, information with respect to which is
in the possession of the Company, upon the certificate, statement or opinion of
or representations by an officer or officers of the Company, unless such counsel
knows that the certificate, statement or opinion or representations with respect
to the matters upon which such officer's certificate, statement or opinion may
be based as aforesaid are erroneous, or in the exercise of reasonable care
should know that the same are erroneous.

     (c) Any certificate, statement or opinion of an officer of the Company or
of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Company, unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which such officer's or counsel's, as the
case may be, certificate, statement or opinion may be based as aforesaid are
erroneous, or in the

                                       25
<PAGE>

exercise of reasonable care should know that the same are erroneous. Any
certificate or opinion of any independent firm of public accountants filed with
and directed to the Warrant Agent shall contain a statement that such firm is
independent.

     Section 6.09. Payments Due on Saturdays, Sundays and Holidays. If the date
fixed for any payment with respect to the Warrants of any series appertaining
thereto shall not be a Business Day (as defined below), then such payment need
not be made on such date, but may be made on the next succeeding Business Day
with same force and effect as if made on the date fixed, and no interest shall
accrue for the period after such date.

     "Business Day" means, with respect to any Warrant, a Business Day as
defined in any debt security included in any unit comprising such Warrant or as
otherwise established pursuant to Section 1.03 hereof or if the term Business
Day is not so specified, Business Day means any day that is not a Saturday or
Sunday or a legal holiday in The City of New York or a day on which banking
institutions in The City of New York are authorized or required by law,
regulation or executive order to be closed.

     Section 6.10. Judgment Currency. The Company agrees, to the fullest extent
that it may effectively do so under applicable law, that (a) if for the purpose
of obtaining judgment in any court it is necessary to convert the sum due in
respect of the Warrants of any series (the "Required Currency") into a currency
in which a judgment will be rendered (the "Judgment Currency"), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Warrant Agent could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day (as defined
below), in which event, to the extent permitted by applicable law, the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Warrant Agent could purchase in The City of New York the Required
Currency with the Judgment Currency on the last New York Banking Day preceding
the day on which final unappealable judgment is entered and (b) its obligations
under this Agreement and the terms of the Warrants of such series to make
payments in the Required Currency (i) shall not be discharged or satisfied by
any tender, or any recovery pursuant to any judgment (whether or not entered in
accordance with clause 6.10(a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be enforceable
as an alternative or additional cause of action for the purpose of recovering in
the Required Currency so expressed to be payable and (iii) shall not be affected
by judgment being obtained for any other sum due under this Agreement. For
purposes of the foregoing, "New York Banking Day" means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which

                                       26
<PAGE>

banking institutions in The City of New York are authorized or required by law
or executive order to close.

     Section 6.11. Headings. The descriptive headings of the several Articles
and Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

     Section 6.12. Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original; but
such counterparts shall together constitute but one and the same instrument.

     Section 6.13. Applicable Law. This Agreement and each Warrant shall be
deemed to be a contract under the laws of the State of New York, and for all
purposes shall be construed in accordance with the laws of said State, excluding
choice of law provisions.

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of the day and year first above written.

                               MORGAN STANLEY

                               By:
                                  --------------------------------------------
                                  Name:
                                  Title:

                               JPMORGAN CHASE BANK

                               By:
                                  --------------------------------------------
                                  Name:
                                  Title:

                                      27

<PAGE>

                                                                      EXHIBIT I

              [FORM OF FACE OF REGISTERED CALL WARRANT CERTIFICATE]

No. _____                                                  CUSIP No. __________

     [Unless and until it is exchanged in whole or in part for Warrants in
definitive registered form, this Warrant Certificate and the Warrants evidenced
hereby may not be transferred except as a whole by the Depositary to the nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

     Unless this Warrant Certificate is presented by an authorized
representative of the Depositary (55 Water Street, New York) to Morgan Stanley
or its agent for registration of transfer, exchange or payment, and any Warrant
issued is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of the Depositary and any payment hereon is made
to Cede & Co. or such other entity as is requested by an authorized
representative of the Depositary, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.](1)

                                 MORGAN STANLEY

                            [Designation of Warrants]

NUMBER OF WARRANTS EVIDENCED BY THIS CERTIFICATE: [UP TO _____](1)

WARRANT PROPERTY:

AMOUNT OF WARRANT PROPERTY
  PURCHASABLE PER WARRANT:

CALL PRICE PER WARRANT:

FORM OF PAYMENT OF
  CALL PRICE:

----------
(1)  Applies to global warrant certificates.

                                      I-1

<PAGE>

FORM OF SETTLEMENT:

DATES OF EXERCISE:

OTHER TERMS:

     This Warrant Certificate certifies that __________, or registered assigns,
is the Registered Holder of the number of [Designation of Warrants] (the
"Warrants") [specified above](2) [specified on Schedule A hereto](3). Upon
receipt by the Warrant Agent of this Warrant Certificate, the exercise notice on
the reverse hereof (or an exercise notice in substantially identical form
delivered herewith) (the "Exercise Notice"), duly completed and executed, and
the Call Price per Warrant set forth above, in the form set forth above, for
each Warrant to be exercised (the "Exercise Property") at the Warrant Agent's
Window, Attention: Tender Department, in the Borough of Manhattan, The City of
New York, each Warrant evidenced hereby entitles the Registered Holder hereof to
receive, subject to the terms and conditions set forth herein and in the Warrant
Agreement (as defined below), from Morgan Stanley (the "Company") the amount and
form of property (the "Warrant Property") specified above. Warrants will not
entitle the Warrantholder to any of the rights of the holders of any of the
Warrant Property.

     Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof, and such further provisions shall
for all purposes have the same effect as though fully set forth in this place.

     This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent.

----------
(2) Applies to definitive certificates.

(3) Applies to global warrant certificates

                                      I-2

<PAGE>

     IN WITNESS WHEREOF, Morgan Stanley has caused this instrument to be duly
executed.

Dated:
      ---------------------

                                        MORGAN STANLEY

                                        By:
                                           ------------------------------------
                                           Name:
                                           Title:

Attest:

By:
   ------------------------
         Secretary

Countersigned as of the date above written:

JPMORGAN CHASE BANK,
  as Warrant Agent

By:
   -------------------------
      Authorized Officer

                                      I-3
<PAGE>

            [FORM OF REVERSE OF REGISTERED CALL WARRANT CERTIFICATE]

                                 MORGAN STANLEY

     The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued by the Company pursuant to a Warrant
Agreement, dated as of November 1, 2004 (the "Warrant Agreement"), between the
Company and JPMorgan Chase Bank (the "Warrant Agent") and are subject to the
terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions each Warrantholder consents by acceptance of this Warrant
Certificate or a beneficial interest therein and which Warrant Agreement is
hereby incorporated by reference in and made a part of this Warrant Certificate.
Without limiting the foregoing, all capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Warrant Agreement. A
copy of the Warrant Agreement is on file at the Warrant Agent's Office. The
Warrants constitute a separate series of Warrants under the Warrant Agreement.

     The Warrants are unsecured contractual obligations of the Company and rank
pari passu with the Company's other unsecured contractual obligations and with
the Company's unsecured and unsubordinated debt.

     Subject to the provisions hereof and the Warrant Agreement, each Warrant
may be exercised during the dates of exercise set forth on the face hereof by
delivering or causing to be delivered this Warrant Certificate, the Exercise
Notice, duly completed and executed, and the Exercise Property to the Warrant
Agent's Window, in the Borough of Manhattan, The City of New York, which is, on
the date hereof (unless otherwise specified herein), JPMorgan Chase Bank,
Corporate Trust Securities Window, 4 New York Plaza, Ground Floor, New York, New
York 10004, Attention: Tender Department, or at such other address as the
Warrant Agent may specify from time to time.

     Each Warrant entitles the Warrantholder to receive, upon exercise, the
Warrant Property set forth on the face hereof.

     The Warrant Agreement and the terms of the Warrants are subject to
amendment as provided in the Warrant Agreement.

     This Warrant Certificate shall be governed by, and interpreted in
accordance with, the laws of the State of New York.

                                      I-4
<PAGE>

                            [Designation of Warrants]

                                 Exercise Notice

JPMorgan Chase Bank
Corporate Trust Securities Window
4 New York Plaza, Ground Floor
New York, New York 10004
Attention:  Tender Department

     The undersigned (the "Registered Holder") hereby irrevocably exercises
__________ Warrants (the "Exercised Warrants") and delivers to you herewith a
Warrant Certificate or Certificates, registered in the Registered Holder's name,
representing a number of Warrants at least equal to the number of Exercised
Warrants, and the Exercise Property with respect thereto.

     The Registered Holder hereby directs the Warrant Agent (a) to deliver the
Warrant Property as follows:

     and (b) if the number of Exercised Warrants is less than the number of
Warrants represented by the enclosed Warrant Certificate, to deliver a Warrant
Certificate representing the unexercised Warrants to:

Dated:
        ----------------------------------    ---------------------------------
                                                       (Registered Holder)

                                              By:
                                                 ------------------------------
                                                 Authorized Signature
                                                 Address:
                                                 Telephone:

                                      I-5
<PAGE>

           [If Warrant is a Global Warrant, insert this Schedule A.]

                                                                      SCHEDULE A

                            [Designation of Warrants]

                                     GLOBAL
                                     WARRANT
                              SCHEDULE OF EXCHANGES

     The initial number of Warrants represented by this Global Warrant is
__________. In accordance with the Warrant Agreement and the Unit Agreement
dated as of November 1, 2004 among the Issuer, JPMorgan Chase Bank, as Unit
Agent, as Warrant Agent, as Collateral Agent, and as Trustee under the Indenture
referred to therein and the Holders from time to time of the Units described
therein, the following (A) exchanges of [the number of Warrants indicated below
for a like number of Warrants to be represented by a Global Warrant that has
been separated from a Unit (a "Separated Warrant")](1) [the number of Warrants
that had been represented by a Global Warrant that is part of a Unit (an
"Attached Unit Warrant") for a like number of Warrants represented by this
Global Warrant](2) or (B) reductions as a result of the exercise of the number
of Warrants indicated below have been made:

<TABLE>

                                                    [Number of Attached    [Increased
                                                    Unit Warrants          Number                        Reduced         Notation
               [Number          [Reduced Number     Exchanged  for         Outstanding                   Number          Made by or
Date of        Exchanged for    Outstanding         Warrants represented   Following      Number of      Outstanding     on Behalf
Exchange or    Separated        Following Such      by this Separated      Such           Warrants       Following       of Warrant
Exercise       Warrants](1)     Exchange](1)        Warrant](2)            Exchange](2)   Exercised      Such Exercise   Agent
-----------    -------------    ---------------     --------------------   ------------   ----------     --------------  ----------
<S>                 <C>               <C>                 <C>                    <C>           <C>            <C>            <C>

</TABLE>
----------
(1) Applies only if this Global Warrant is part of a Unit.

(2) Applies only if this Global Warrant has been separated from a Unit.

                                      I-6

<PAGE>

                                                                      EXHIBIT II

              [FORM OF FACE OF REGISTERED PUT WARRANT CERTIFICATE]

No. _____                                                   CUSIP No. __________

     [Unless and until it is exchanged in whole or in part for Warrants in
definitive registered form, this Warrant Certificate and the Warrants evidenced
hereby may not be transferred except as a whole by the Depositary to the nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.

     Unless this Warrant Certificate is presented by an authorized
representative of the Depositary (55 Water Street, New York) to Morgan Stanley
or its agent for registration of transfer, exchange or payment, and any Warrant
issued is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of the Depositary and any payment hereon is made
to Cede & Co. or such other entity as is requested by an authorized
representative of the Depositary, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.](1)

                                 MORGAN STANLEY

                            [Designation of Warrants]

NUMBER OF WARRANTS EVIDENCED BY THIS CERTIFICATE: [UP TO ____](1)

CASH SETTLEMENT VALUE PER WARRANT (OR METHOD OF DETERMINING SAME):

[WARRANT PROPERTY:](2)

----------

(1) Applies to global warrant certificates.

(2) Only if the terms of the Warrants contemplate that the holder may deliver
    Warrant Property to exercise the warrants.

                                      II-1
<PAGE>

[AMOUNT OF WARRANT PROPERTY
     SALABLE PER WARRANT:](2)

[PUT PRICE FOR SUCH SPECIFIED AMOUNT OF WARRANT PROPERTY PER WARRANT:](2)

[METHOD OF DELIVERY OF ANY WARRANT PROPERTY TO BE DELIVERED FOR SALE UPON
EXERCISE OF WARRANTS:](2)

DATES OF EXERCISE:

OTHER TERMS:

     This Warrant Certificate certifies that __________, or registered assigns,
is the Registered Holder of the number of [Designation of Warrants] (the
"Warrants") [specified above](1)[specified on Schedule A hereto](2). Upon
receipt by the Warrant Agent of this Warrant Certificate, the exercise notice on
the reverse hereof (or an exercise notice in substantially identical form
delivered herewith)(the "Exercise Notice"), duly completed and executed, and the
Amount of Warrant Property saleable per Warrant set forth above, adjusted, if
applicable, as set forth above, for each Warrant to be exercised, delivered as
set forth above at the Warrant Agent's Window, Attention: Tender Department, in
the Borough of Manhattan, The City of New York (which is, on the date hereof,
Corporate Trust Securities Window, 4 New York Plaza, Ground Floor, New York, New
York 10004, Attention: Tender Department), each Warrant evidenced hereby
entitles the Registered Holder hereof to receive, subject to the terms and
conditions set forth herein and in the Warrant Agreement (as defined below),
from Morgan Stanley (the "Company") the [Cash Settlement Value] [Put Price](3)
per Warrant specified above.

     Unless otherwise indicated above, a Warrant will not require or entitle a
Warrantholder to sell or deliver to the Company, nor will the Company be under
any obligation to, nor will it, purchase or take delivery from any Warrantholder
of, any Warrant Property, and upon exercise of a Warrant, the Company will make
only a cash payment in the amount of the Cash Settlement Value or Put Price per
Warrant. Warrantholders will not receive any interest on any Cash Settlement
Value.

----------

(1) Applies to definitive warrant certificates.

(2) Applies to global warrant certificates.

(3) Only if the terms of the Warrants contemplate that the holder may deliver
    Warrant Property to exercise the Warrants.

                                      II-2
<PAGE>

     Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof and such further provisions shall
for all purposes have the same effect as though fully set forth in this place.

     This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent.

                                      II-3
<PAGE>

     IN WITNESS WHEREOF, Morgan Stanley has caused this instrument to be duly
executed.

Dated:
      ---------------------

                                       MORGAN STANLEY

                                       By:
                                          -------------------------------------
                                          Name:
                                          Title:

Attest:

By:
   --------------------------
         Secretary

Countersigned as of the date above written:

JPMORGAN CHASE BANK,
  as Warrant Agent

By:
   --------------------------
      Authorized Officer

                                      II-4
<PAGE>

             [FORM OF REVERSE OF REGISTERED PUT WARRANT CERTIFICATE]

                                 MORGAN STANLEY

     The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued by the Company pursuant to a Warrant
Agreement, dated as of November 1, 2004 (the "Warrant Agreement"), between the
Company and JPMorgan Chase Bank (the "Warrant Agent") and are subject to the
terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions each Warrantholder consents by acceptance of this Warrant
Certificate or a beneficial interest therein and which Warrant Agreement is
hereby incorporated by reference in and made a part of this Warrant Certificate.
Without limiting the foregoing, all capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Warrant Agreement. A
copy of the Warrant Agreement is on file at the Warrant Agent's Office. The
Warrants constitute a separate series of Warrants under the Warrant Agreement.

     The Warrants are unsecured contractual obligations of the Company and rank
pari passu with the Company's other unsecured contractual obligations and with
the Company's unsecured and unsubordinated debt.

     Subject to the provisions hereof and the Warrant Agreement, each Warrant
may be exercised during the dates of exercise set forth on the face hereof by
delivering or causing to be delivered this Warrant Certificate, the Exercise
Notice, duly completed and executed, and the Exercise Property for each such
Warrant to the Warrant Agent's Window, in the Borough of Manhattan, The City of
New York, which is, on the date hereof (unless otherwise specified herein),
JPMorgan Chase Bank, Corporate Trust Securities Window, 4 New York Plaza, Ground
Floor, New York, New York 10004, Attention: Tender Department, or at such other
address as the Warrant Agent may specify from time to time.

     Each Warrant entitles the Warrantholder to receive, upon exercise, the
[Cash Settlement Value] [Put Price](1) per Warrant set forth on the face hereof.

     The Warrant Agreement and the terms of the Warrants are subject to
amendment as provided in the Warrant Agreement.

     This Warrant Certificate shall be governed by, and interpreted in
accordance with, the laws of the State of New York.

----------

(1) Only if the terms of the Warrants contemplate that the holder may
    deliver Warrant Property to exercise the Warrants.

                                      II-5
<PAGE>

                            [Designation of Warrants]

                                 Exercise Notice

JPMorgan Chase Bank
Corporate Trust Securities Window
4 New York Plaza, Ground Floor
New York, New York 10004

Attention:  Tender Department

     The undersigned (the "Registered Holder") hereby irrevocably exercises
__________ Warrants (the "Exercised Warrants") and delivers to you herewith a
Warrant Certificate or Certificates, registered in the Registered Holder's name,
representing a number of Warrants at least equal to the number of Exercised
Warrants[, and the Warrant Property with respect thereto].(1)

     The Registered Holder hereby directs the Warrant Agent (a) to deliver the
[Cash Settlement Value][Put Price] 1 per Warrant as follows:

     and (b) if the number of Exercised Warrants is less than the number of
Warrants represented by the enclosed Warrant Certificate, to deliver a Warrant
Certificate representing the unexercised Warrants to:

Dated:
      --------------------------------    -------------------------------------
                                                    (Registered Holder)

                                          By:
                                             ----------------------------------
                                             Authorized Signature
                                             Address:
                                             Telephone:

----------

(1) Only if terms of the Warrants contemplate that the holder may deliver
    Warrant Property to exercise the Warrants.

                                      II-1
<PAGE>

            [If Warrant is a Global Warrant, insert this Schedule A.]

                                                                      SCHEDULE A

                            [Designation of Warrants]

                                     GLOBAL
                                     WARRANT
                              SCHEDULE OF EXCHANGES

     The initial number of Warrants represented by this Global Warrant is
__________. In accordance with the Warrant Agreement and the Unit Agreement
dated as of November 1, 2004 among the Issuer, JPMorgan Chase Bank, as Unit
Agent, as Warrant Agent, as Collateral Agent, and as Trustee under the Indenture
referred to therein and the Holders from time to time of the Units described
therein, the following (A) exchanges of [the number of Warrants indicated below
for a like number of Warrants to be represented by a Global Warrant that has
been separated from a Unit (a "Separated Warrant")](1) [the number of Warrants
that had been represented by a Global Warrant that is part of a Unit (an
"Attached Unit Warrant") for a like number of Warrants represented by this
Global Warrant](2) or (B) reductions as a result of the exercise of the number
of Warrants indicated below have been made:

<TABLE>
                                                   [Number of Attached    [Increased
                                                   Unit Warrants          Number                        Reduced         Notation
              [Number          [Reduced Number     Exchanged  for         Outstanding                   Number          Made by or
Date of       Exchanged for    Outstanding         Warrants represented   Following      Number of      Outstanding     on Behalf
Exchange or   Separated        Following Such      by this Separated      Such           Warrants       Following       of Warrant
Exercise      Warrants](13)    Exchange](1)        Warrant](14)           Exchange](2)   Exercised      Such Exercise   Agent
-----------   -------------    --------------      --------------------   ------------   ---------      -------------   ----------
<S>               <C>              <C>                    <C>                 <C>             <C>             <C>          <C>

----------
</TABLE>

(13) Applies only if this Global Warrant is part of a Unit.

(14) Applies only if this Global Warrant has been separated from a Unit.EXHIBIT 4-dd

--------------------------------------------------------------------------------

                                 MORGAN STANLEY,

                              JPMORGAN CHASE BANK,
                     as Unit Agent, as Collateral Agent, as
                       Trustee and Paying Agent under the
                      Indenture referred to herein, and as
                         Warrant Agent under the Warrant
                          Agreement referred to herein

                                       AND

                          THE HOLDERS FROM TIME TO TIME
                          OF THE UNITS DESCRIBED HEREIN

                               ------------------

                            [FORM OF UNIT AGREEMENT]

                               ------------------

                          Dated as of November 1, 2004

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS
                                -----------------

                                                                            PAGE
                                                                            ----

                                    ARTICLE 1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.01.  Definitions.....................................................2

                                    ARTICLE 2
                                      UNITS

Section 2.01.  Forms Generally................................................11
Section 2.02.  Form of Certificate of Authentication and Countersignature.....11
Section 2.03.  Amount Unlimited; Issuable in Series...........................12
Section 2.04.  Denominations..................................................13
Section 2.05.  Rights and Obligations Evidenced by the Units..................13
Section 2.06.  Execution, Authentication, Delivery and Dating.................14
Section 2.07.  Temporary Unit Certificates....................................14
Section 2.08.  Registration of Transfer and Exchange; Global Units............15
Section 2.09.  Mutilated, Destroyed, Lost and Stolen Unit Certificates........18
Section 2.10.  Persons Deemed Owners..........................................20
Section 2.11.  Cancellation...................................................20
Section 2.12.  Exchange of Global Units and Definitive Units..................21

                                    ARTICLE 3
                 THE PURCHASE CONTRACTS; SETTLEMENT OF WARRANTS

Section 3.01.  Form and Execution of Purchase Contracts; Temporary Purchase
        Contracts.............................................................22
Section 3.02.  Number Unlimited Issuable in Series............................23
Section 3.03.  Countersignature, Execution on Behalf of Holder and Delivery
        of Purchase Contracts.................................................26
Section 3.04.  Further Provisions Relating to Issuance of Purchase Contracts..28
Section 3.05.  Purchase of Purchase Contract Property; Optional Acceleration
        of Purchase Obligations; Authorization of Agent by Holder;
        Transferees Bound.....................................................28
Section 3.06.  Payment of Purchase Price......................................30
Section 3.07.  Delivery of Purchase Contract Property or Other Amounts........33
Section 3.08.  Charges and Taxes..............................................34

                                       i
<PAGE>

                                    ARTICLE 4
                                    REMEDIES

Section 4.01.  Acceleration of Obligations....................................34
Section 4.02.  Unconditional Rights Under Purchase Contracts; Limitation
        on Proceedings by Holders.............................................35
Section 4.03.  Restoration of Rights and Remedies.............................35
Section 4.04.  Rights and Remedies Cumulative.................................36
Section 4.05.  Delay or Omission Not Waiver...................................36
Section 4.06.  Waiver of Past Defaults........................................36
Section 4.07.  Undertaking for Costs..........................................37
Section 4.08.  Waiver of Stay or Extension Laws...............................37
Section 4.09.  Agent May File Proofs of Claims................................37
Section 4.10.  Suits for Enforcement..........................................38
Section 4.11.  Control by Holders.............................................38

                                    ARTICLE 5
                     SECURITY INTERESTS AND COLLATERAL AGENT

Section 5.01.  Granting of Security Interests; Rights and Remedies of
        Collateral Agent; Perfection..........................................39
Section 5.02.  Distribution of Principal and Interest; Release of Collateral..40
Section 5.03.  Certain Duties and Responsibilities of the Collateral Agent....41
Section 5.04.  Knowledge of the Collateral Agent..............................42
Section 5.05.  Certain Rights of Collateral Agent.............................42
Section 5.06.  Compensation and Reimbursements................................43
Section 5.07.  Corporate Collateral Agent Required Eligibility................44
Section 5.08.  Resignation and Removal; Appointment of Successor..............44
Section 5.09.  Acceptance of Appointment by Successor.........................45
Section 5.10.  Merger, Conversion, Consolidation or Succession to Business....46
Section 5.11.  Money Held in Trust............................................46

                                    ARTICLE 6
                                    THE AGENT

Section 6.01.  Certain Duties and Responsibilities............................46
Section 6.02.  Notice of Default..............................................48
Section 6.03.  Certain Rights of Agent........................................48
Section 6.04.  Not Responsible for Recitals or Issuance of Units..............49
Section 6.05.  May Hold Units.................................................49
Section 6.06.  Money Held in Trust............................................49
Section 6.07.  Compensation and Reimbursement.................................50
Section 6.08.  Corporate Agent Required: Eligibility..........................50
Section 6.09.  Resignation and Removal: Appointment of Successor..............51
Section 6.10.  Acceptance of Appointment by Successor.........................52

                                       ii
<PAGE>

Section 6.11.  Merger, Conversion, Consolidation or Succession to Business....53
Section 6.12.  Appointment of Authenticating Agent............................53
Section 6.13.  Corporation to Furnish Agent Names and Addresses of Holders....55
Section 6.14.  Preservation of Information; Communications to Holders.........55
Section 6.15.  No Obligation of Holder........................................56
Section 6.16.  Tax Compliance.................................................57

                                    ARTICLE 7
                             SUPPLEMENTAL AGREEMENTS

Section 7.01.  Supplemental Agreements Without Consent of Holders.............58
Section 7.02.  Supplemental Agreements with Consent of Holders................59
Section 7.03.  Execution of Supplemental Agreements...........................60
Section 7.04.  Effect of Supplemental Agreements..............................60
Section 7.05.  Reference to Supplemental Agreements...........................60

                                    ARTICLE 8
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

Section 8.01.  Covenant Not to Merge, Consolidate, Sell or Convey Property
        Except Under Certain Conditions.......................................61
Section 8.02.  Rights and Duties of Successor Corporation.....................61
Section 8.03.  Opinion of Counsel to Agent....................................62

                                   ARTICLE 9
                                   COVENANTS

Section 9.01.  Performance Under Purchase Contracts...........................62
Section 9.02.  Maintenance of Office or Agency................................62
Section 9.03.  Money for Payments to Be Held in Trust.........................63
Section 9.04.  Statements of Officers of the Corporation as to Default........64
Section 9.05.  Negative Pledge................................................64
Section 9.06.  Luxembourg Publications........................................65

                                  ARTICLE 10
                                  REDEMPTIONS

Section 10.01.  Optional Redemption of Purchase Contracts; Redemption Upon
        Redemption of Debt Securities.........................................65
Section 10.02.  Notice of Redemption; Partial Redemptions.....................66
Section 10.03.  Payment of Purchase Contracts Called for Redemption...........67
Section 10.04.  Exclusion of Certain Purchase Contracts from Eligibility
        for Selection for Redemption..........................................68

                                      iii
<PAGE>

                                   ARTICLE 11
                            MISCELLANEOUS PROVISIONS

Section 11.01.  Incorporators, Stockholders, Officers and Directors of the
        Corporation Immune from Liability.....................................68
Section 11.02.  Compliance Certificates and Opinions..........................68
Section 11.03.  Form of Documents Delivered to Agent or Collateral Agent......69
Section 11.04.  Acts of Holders...............................................70
Section 11.05.  Notices, Etc..................................................71
Section 11.06.  Notices to Holders; Waiver....................................71
Section 11.07.  Effect of Headings and Table of Contents......................72
Section 11.08.  Successors and Assigns........................................72
Section 11.09.  Separability Clause...........................................72
Section 11.10.  Benefits of Agreement.........................................72
Section 11.11.  Governing Law.................................................73
Section 11.12.  Legal Holidays................................................73
Section 11.13.  Counterparts..................................................73
Section 11.14.  Appointment of Certain Agents.................................73
Section 11.15.  Inspection of Agreement.......................................73

                                       iv
<PAGE>

         UNIT AGREEMENT, dated as of November 1, 2004, by and among MORGAN
STANLEY, a Delaware corporation (the "Corporation"), JPMORGAN CHASE BANK, a New
York banking corporation ("JPMorgan"), acting solely as unit agent and
collateral agent under this Agreement (in its capacity as unit agent, the
"Agent", and, in its capacity as collateral agent, the "Collateral Agent"),
except to the extent that this Agreement specifically states that the Agent is
acting in another capacity, JPMorgan, as trustee and paying agent under the
Indenture described below (in its capacity as trustee under the Indenture, the
"Trustee" and, in its capacity as paying agent under the Indenture, the "Paying
Agent"), and JPMorgan, as Warrant Agent under the Warrant Agreement described
below (in its capacity as Warrant Agent under the Warrant Agreement, the
"Warrant Agent"), and the holders from time to time of the Units described
herein.

         WHEREAS, the Corporation has entered into a Senior Indenture dated as
of November 1, 2004 with the Trustee (as may be amended and supplemented from
time to time, the "Indenture");

         WHEREAS, the Corporation has duly authorized the issuance, from time to
time, pursuant to the Indenture of senior debt securities ("Debt Securities");

         WHEREAS, the Corporation has entered into a Warrant Agreement (the
"Warrant Agreement") dated as of November 1, 2004 between the Corporation and
JPMorgan, as Warrant Agent;

         WHEREAS, the Corporation has duly authorized the issuance, from time to
time, pursuant to the Warrant Agreement of warrants ("Warrants") to purchase or
sell (i) securities issued by the Corporation or by an entity affiliated or not
affiliated with the Corporation, a basket of such securities, an index or
indices of such securities or any combination of the above, (ii) currencies or
(iii) commodities, in each case on terms to be determined at the time of sale;

         WHEREAS, the Corporation has duly authorized the issuance, from time to
time, of purchase contracts governed by this Agreement (including pre-paid
purchase contracts not treated as indebtedness) ("Purchase Contracts") requiring
the holder thereof to purchase or sell (i) securities issued by the Corporation
or by an entity affiliated or not affiliated with the Corporation, a basket of
such securities, an index or indices of such securities or any combination of
the above, (ii) currencies or (iii) commodities, in each case on terms to be
determined at the time of sale;

         WHEREAS, the Corporation has duly authorized the issuance, from time to
time, of purchase contracts that would be treated as indebtedness and be
governed by the Indenture and that require holders to satisfy their obligations

<PAGE>

thereunder upon issuance of such Purchase Contracts ("Prepaid Purchase Contracts
Issued under the Indenture");

         WHEREAS, the Corporation desires to provide for the issuance of units
("Units") consisting of Purchase Contracts, Prepaid Purchase Contracts Issued
under the Indenture, Warrants or Debt Securities, or any combination thereof;

         WHEREAS, the parties hereto wish to secure the performance by the
holders of Units consisting of Debt Securities and Purchase Contracts of their
obligations under such Purchase Contracts and the observance and performance of
the covenants and agreements contained herein and in such Purchase Contracts;

         NOW, THEREFORE, in consideration of the premises and the purchases of
the Units by the holders thereof, the Corporation, the Agent, the Warrant Agent,
the Collateral Agent and the Trustee and Paying Agent mutually covenant and
agree as follows:

                                   Article 1
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         Section 1.01. Definitions. For all purposes of this Agreement, except
as otherwise expressly provided or unless the context otherwise requires:

                  (i) the terms defined in this Article have the meanings
         assigned to them in this Article and include the plural as well as the
         singular;

                 (ii) all accounting terms not otherwise defined herein have the
         meanings assigned to them in accordance with generally accepted
         accounting principles in the United States in effect at the time of any
         computation; and

                (iii) the words "herein", "hereof" and "hereunder" and other
         words of similar import refer to this Agreement as a whole and not to
         any particular Article, Section or other subdivision.

         "Accelerated Settlement Date", with respect to a Purchase Contract of
any series, means any date to which the Corporation accelerates the obligations
of the Holder of the Units of which such Purchase Contract constitutes a part,
subject to any limitations as may be specified pursuant to Section 3.02.

         "Acceleration Notice" has the meaning specified in Section 3.05(b).

                                       2
<PAGE>

         "Act", with respect to any Holder, has the meaning specified in Section
11.04.

         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control", with respect to any specified Person, means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.

         "Agent" means the Person named as the "Agent" in the first paragraph of
this Agreement until a successor Agent shall have become such pursuant to the
applicable provisions of this Agreement, and thereafter "Agent" shall mean such
successor Person.

         "Agreement" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more agreements
supplemental hereto entered into pursuant to the applicable provisions hereof.

         "Authenticating Agent" means any Person authorized by the Agent to act
on behalf of the Agent to countersign and execute Purchase Contracts.

         "Bankruptcy Event" means any of the following events: (i) a court
having jurisdiction in the premises shall enter a decree or order for relief
with respect to the Corporation in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Corporation or for any substantial part of its
property or ordering the winding up or liquidation of its affairs, and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or (ii) the Corporation shall commence a voluntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or consent to the entry of an order for relief in an involuntary case
under any such law, or consent to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Corporation or for any substantial part of its property, or
make any general assignment for the benefit of creditors.

         "Board of Directors" means the board of directors of the Corporation or
any other committee duly authorized to act on its behalf with respect to this
Agreement.

         "Board Resolution" means one or more resolutions, certified by the
Secretary or an Assistant Secretary of the Corporation to have been duly adopted
or consented to by the Board of Directors and to be in full force and effect on
the

                                       3
<PAGE>

date of such certification and delivered to the Agent or the Collateral Agent,
as the case may be.

         "Business Day" means any day that is not a Saturday or Sunday or a
legal holiday in The City of New York or a day on which banking institutions in
The City of New York are authorized or required by law, regulation or executive
order to be closed.

         "Cash Settlement" has the meaning set forth in Section 3.06(a)(i).

         "Closed Purchase Contract" means any Purchase Contract with respect to
which a purchase or sale of, or other settlement with respect to, the Purchase
Contract Property has occurred pursuant to Article Three or that has been
redeemed or is otherwise not Outstanding.

         "Collateral" has the meaning specified in Section 5.01(a).

         "Collateral Agent" means the Person named as the "Collateral Agent" in
the first paragraph of this Agreement until a successor Collateral Agent shall
have become such pursuant to the applicable provisions of this Agreement, and
thereafter "Collateral Agent" shall mean such successor Person.

         "Corporate Trust Office" means the office of the Agent or the
Collateral Agent, as appropriate, at which at any particular time its corporate
trust business shall be principally administered, which office at the date
hereof is located at 4 New York Plaza, New York, New York 10004.

         "Corporation" means the Person named as the "Corporation" in the first
paragraph of this Agreement until a successor Person shall have become such
pursuant to the applicable provisions of this Agreement, and thereafter the
"Corporation" shall mean such successor Person.

         "Debt Securities" has the meaning stated in the second recital in this
Agreement and more particularly means any Debt Securities originally issued as
part of a Unit of any series.

         "Debt Security Register" with respect to any Debt Securities
constituting a part of the Units of any series means the security register of
the Corporation maintained by the Trustee pursuant to the Indenture.

         "Debt Security Settlement" has the meaning set forth in Section
3.06(a)(ii).

         "Default" means an Event of Default under the Indenture or a Purchase
Contract Default.

                                       4
<PAGE>

         "Definitive Securities" means any Security in definitive form.

         "Definitive Unit" means any Unit comprised of Definitive Securities.

         "Depositary" means, with respect to Registered Units, DTC, or any
successor, or, with respect to any Unregistered Units, a common depositary for
Euroclear Bank S.A./N.V., as operator of the Euroclear System, or Clearstream
Banking, societe anonyme, or any other relevant depositary named in an Issuer
Order, in each case, as the Holder of any Global Units.

         "DTC" means The Depository Trust Company or its nominee.

         "Event of Default", with respect to the Debt Securities, has the
meaning set forth in the Indenture.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Global Debt Security" means a global Debt Security in bearer or
registered form originally issued as part of a Global Unit of any series.

         "Global Prepaid Purchase Contract Issued under the Indenture" means a
global Prepaid Purchase Contract Issued under the Indenture in bearer or
registered form originally issued as part of a Global Unit of any series.

         "Global Purchase Contract" means a global Purchase Contract in bearer
or registered form originally issued as part of a Global Unit of any series.

         "Global Security" means any of a Global Debt Security, Global Warrant,
Global Purchase Contract or Global Prepaid Purchase Contract Issued under the
Indenture.

         "Global Unit" means any Unit that comprises one or more Global
Securities and is represented by a global Unit Certificate in bearer or
registered form.

         "Global Warrant" means a global Warrant in bearer or registered form
originally issued as part of a Global Unit of any series.

         "Holder" means (i) in the case of any Registered Security or
Registered Unit, the Person in whose name such Registered Security or the
Registered Securities constituting a part of such Registered Unit are
registered on the relevant Security Register and (ii) in the case of any
Unregistered Security or Unregistered Unit, the bearer of such Security or
Unit, provided that, in the case of (i) above, so long as the Registered
Securities constituting part of such Units are not separable, "Holder" shall
mean the Person in whose name a Registered Security constituting

                                       5
<PAGE>

a part of such Unit is registered on the Security Register specified pursuant
to Section 2.03.

         "Indenture" has the meaning specified in the first recital in this
Agreement.

         "Initial Acceleration Date" means, with respect to Purchase Contracts
of any series, the initial date, if any, specified pursuant to Section 3.02 on
which such Purchase Contracts may be accelerated pursuant to Section 3.05
hereof.

         "Interest Payment Date", with respect to any Debt Security, has the
meaning set forth in the Indenture or in any document executed pursuant to the
terms of the Indenture relating to such Debt Security.

         "Issuer Order" or "Issuer Request" means a written order or request
signed in the name of the Corporation by the Chairman of the Board of Directors,
the President, the Chief Financial Officer, the Chief Strategic and
Administrative Officer, the Chief Legal Officer, the Treasurer, any Assistant
Treasurer or any other person authorized by the Board of Directors and delivered
to the Agent or the Collateral Agent, as the case may be.

         "Letter of Representations" means, as of any date, the Letter of
Representations or Letters of Representations to DTC in effect as of such date
from the Agent relating to the Units covered by this Agreement.

         "Minimum Acceleration Amount" means the minimum number of Purchase
Contracts of any series as specified pursuant to Section 3.02 that may be
subject to acceleration pursuant to Section 3.05.

         "Minimum Remaining Amount" means the minimum number of Purchase
Contracts of any series as specified pursuant to Section 3.02 that must remain
Outstanding immediately following any acceleration pursuant to Section 3.05.

         "Officer's Certificate" means a certificate signed by the Chairman of
the Board of Directors, the President, the Chief Financial Officer, the Chief
Strategic and Administrative Officer, the Chief Legal Officer, the Treasurer,
any Assistant Treasurer of the Corporation or any other person authorized by the
Board of Directors and delivered to the Agent or the Collateral Agent, as the
case may be.

         "Opinion of Counsel" means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Corporation and who shall
otherwise be satisfactory to the Agent or the Collateral Agent, as the case may
be.

         "Optional Definitive Unit Request" has the meaning set forth in Section
2.12.

                                       6
<PAGE>

         "Outstanding", with respect to any Unit, Debt Security, Warrant,
Purchase Contract or Prepaid Purchase Contract Issued under the Indenture means,
as of the date of determination, all Units, Debt Securities, Warrants, Purchase
Contracts or Prepaid Purchase Contracts Issued under the Indenture, as the case
may be, evidenced by Units theretofore authenticated, countersigned, executed
and delivered under this Agreement, except:

                  (A) Units, Debt Securities, Warrants, Purchase Contracts or
         Prepaid Purchase Contracts Issued under the Indenture theretofore
         deemed cancelled, cancelled by the Agent, Warrant Agent or Trustee, as
         the case may be, or delivered to the Agent, Warrant Agent or Trustee,
         as the case may be, for cancellation, in each case pursuant to the
         provisions of this Agreement, the Warrant Agreement or the Indenture;

                  (B) Closed Purchase Contracts; and

                  (C) Units, Debt Securities, Warrants, Purchase Contracts or
         Prepaid Purchase Contracts Issued under the Indenture evidenced by Unit
         Certificates in exchange for or in lieu of which other Unit
         Certificates have been authenticated, countersigned, executed and
         delivered pursuant to this Agreement, other than any such Units, Debt
         Securities, Warrants, Purchase Contracts or Prepaid Purchase Contracts
         Issued under the Indenture, as the case may be, evidenced by a Unit
         Certificate in respect of which there shall have been presented to the
         Agent proof satisfactory to it that such Unit Certificate is held by a
         bona fide purchaser in whose hands the Units, Debt Securities,
         Warrants, Purchase Contracts or Prepaid Purchase Contracts Issued under
         the Indenture, as the case may be, evidenced by such Unit Certificate
         are valid obligations of the Corporation;

provided, however, that in determining whether the Holders of the requisite
number of Outstanding Units, Debt Securities, Warrants, Purchase Contracts and
Prepaid Purchase Contracts Issued under the Indenture, as the case may be, have
given any request, demand, authorization, direction, notice, consent or waiver
hereunder, Units, Debt Securities, Warrants, Purchase Contracts and Prepaid
Purchase Contracts Issued under the Indenture owned by the Corporation or any
Affiliate of the Corporation shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Agent shall be protected in
relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Units, Debt Securities, Warrants, Purchase Contracts and Prepaid
Purchase Contracts Issued under the Indenture which the Agent knows to be so
owned shall be so disregarded. Units, Debt Securities, Warrants, Purchase
Contracts and Prepaid Purchase Contracts Issued under the Indenture that are so
owned but that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Agent the pledgee's right so
to act

                                       7
<PAGE>

with respect to such Units, Debt Securities, Warrants, Purchase Contracts and
Prepaid Purchase Contracts Issued under the Indenture and that the pledgee is
not the Corporation or any Affiliate of the Corporation.

         "Paying Agent" means any Person authorized by the Corporation to pay
the Settlement Amount, redemption price or any other sums payable by the
Corporation with respect to any Purchase Contracts or Pre-paid Purchase
Contracts Issued under the Indenture; provided that such Person shall be a bank
or trust company organized and in good standing under the laws of the United
States or any state in the United States, having (together with its parent)
capital, surplus and undivided profits aggregating at least $50,000,000 or any
foreign branch or office of such a bank or trust company, and, subject to the
foregoing, may be an Affiliate of the Corporation.

         "Person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

         "Pledged Items" means, as of any date, any Debt Securities constituting
a part of the Units of any series or any and all other securities, instruments
or other property as may be specified pursuant to Section 3.02.

         "Prepaid Purchase Contracts Issued under the Indenture" has the meaning
stated in the sixth recital in this Agreement and more particularly means any
Prepaid Purchase Contracts Issued under the Indenture originally issued as part
of a Unit of any series.

         "Purchase Contract Default" with respect to Purchase Contracts of any
series means the occurrence of any of the following events: (i) failure of the
Corporation to deliver the Purchase Contract Property or the cash value thereof
for such Purchase Contracts against tender of payment therefor on any Settlement
Date, in the case of Purchase Contracts that obligate the Corporation to sell
the Purchase Contract Property, (ii) failure of the Corporation to pay the
Settlement Amount for such Purchase Contracts when the same becomes due and
payable, in the case of Purchase Contracts that obligate the Corporation to
purchase the Purchase Contract Property, (iii) failure on the part of the
Corporation duly to observe or perform any other of the covenants or agreements
on its part in such Purchase Contracts or in this Agreement with respect to such
Purchase Contracts and continuance of such failure for a period of 60 days after
the date on which written notice of such failure, requiring the Corporation to
remedy the same, shall have been given to the Corporation and the Agent by
Holders of at least 25% of the affected Purchase Contracts at the time
Outstanding, (iv) a Bankruptcy Event or (v) any other Purchase Contract Default
provided in any supplemental agreement under which such series of Purchase
Contracts is issued or in the form of such Purchase Contracts.

                                       8
<PAGE>

         "Purchase Contract Property" with respect to a Purchase Contract of any
series has the meaning specified pursuant to Section 3.02.

         "Purchase Contract Register" and "Purchase Contract Registrar" have the
respective meanings specified in Section 2.08.

         "Purchase Contracts" has the meaning stated in the fifth recital in
this Agreement and more particularly means any Purchase Contracts constituting a
part of the Units of any series countersigned, executed and delivered in
accordance with this Agreement, other than Prepaid Purchase Contracts Issued
under the Indenture.

         "Purchase Price" of any Purchase Contract that obligates the
Corporation to sell, and the Holder to purchase, the Purchase Contract Property
has the meaning specified pursuant to Section 3.02.

         "Registered Debt Security" means any Debt Security or Prepaid Purchase
Contract Issued under the Indenture registered on the Debt Security Register.

         "Registered Purchase Contract" means any Purchase Contract registered
on the Purchase Contract Register.

         "Registered Security" means any of a Registered Debt Security,
Registered Warrant or Registered Purchase Contract.

         "Registered Unit" means any Unit consisting of Registered Securities.

         "Registered Warrant" means any Warrant registered on the Warrant
Register.

         "Regular Record Date" has the meaning specified pursuant to Section
2.03 or, if no meaning is specified, Regular Record Date means the 15th day
prior to the date on which an Interest Payment Date occurs, whether or not such
date is a Business Day.

         "Responsible Officer", with respect to the Agent or Collateral Agent,
means the chairman or vice chairman of the board of directors, the chairman or
vice chairman of the executive committee of the board of directors, the
president, any vice president, the secretary, any assistant secretary, the
treasurer, any assistant treasurer, the cashier, any assistant cashier, any
senior trust officer, any trust officer or assistant trust officer, the
controller and any assistant controller or any other officer of the Agent or
Collateral Agent customarily performing functions similar to those performed by
any of the above designated officers and also means, with respect to a
particular corporate trust or agency matter, any other

                                       9
<PAGE>

officer to whom such matter is referred because of his knowledge and familiarity
with the particular subject.

         "Security" means any of a Debt Security, Warrant, Purchase Contract or
Prepaid Purchase Contract Issued under the Indenture.

         "Security Register" means any of the Debt Security Register, Purchase
Contract Register or Warrant Register.

         "Settlement Amount" of any Purchase Contract that obligates the
Corporation to purchase, and the Holder to sell, the Purchase Contract Property
has the meaning specified pursuant to Section 3.02.

         "Settlement Date" means the Stated Settlement Date and any Accelerated
Settlement Date.

         "SRO" has the meaning specified in Section 2.01.

         "Stated Settlement Date" of any Purchase Contract of any series has the
meaning specified pursuant to Section 3.02.

         "Trustee", with respect to any Debt Securities or Prepaid Purchase
Contracts Issued under the Indenture, means the Person acting as Trustee under
the Indenture until a successor Trustee shall have become such pursuant to the
applicable provisions of such Indenture, and thereafter "Trustee" shall mean
such successor Trustee.

         "Unit" has the meaning stated in the seventh recital to this Agreement
and more particularly the collective rights and obligations of the Corporation
and a Holder with respect to the Securities comprising such Unit, as specified
pursuant to Section 2.03.

         "Unit Certificate" means a certificate evidencing the rights and
obligations of the Corporation and a Holder with respect to the number of Units
specified on such certificate.

         "Unregistered Security" means any Security other than a Registered
Security.

         "Unregistered Unit" means any Unit other than a Registered Unit.

         "Unsettled Purchase Contract" means any Purchase Contract that has not
been redeemed or with respect to which settlement has not occurred pursuant to
Article Three.

                                       10
<PAGE>

         "Warrant Agreement" has the meaning stated in the third recital of this
Agreement.

         "Warrant Property" has the meaning specified in the Warrant Agreement.

         "Warrant Register" with respect to any Warrants constituting a part of
the Units of any series means the security register of the Corporation
maintained by the Warrant Agent pursuant to the Warrant Agreement.

         "Warrants" has the meaning stated in the fourth recital of this
Agreement and more particularly means any Warrants originally issued as part of
a Unit of any series.

                                   Article 2
                                      UNITS

         Section 2.01 . Forms Generally. The Units of each series shall be
substantially in the form of Exhibit A or in such form (not inconsistent with
this Agreement) as shall be established by or pursuant to one or more Board
Resolutions (as set forth in a Board Resolution or, to the extent established
pursuant to rather than set forth in a Board Resolution, an Officer's
Certificate detailing such establishment). The Unit Certificates may have
imprinted or otherwise reproduced thereon such letters, numbers or other marks
of identification or designation and such legends or endorsements as the
officers of the Corporation executing the Securities constituting a part thereof
may approve (execution thereof to be conclusive evidence of such approval) and
that are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto, or with any rule or regulation of any self-regulatory organization (an
"SRO") on which the Units of such series may be listed or quoted or of any
securities depository or to conform to general usage.

         The Unit Certificates shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Unit Certificates, as evidenced by their
execution of the Securities constituting a part of the Units evidenced by such
Unit Certificates.

         Section 2.02 . Form of Certificate of Authentication and
Countersignature. The form of the Trustee's certificate of authentication of any
Debt Securities or Prepaid Purchase Contracts Issued under the Indenture, the
form of any Warrant Agent's countersignature of any Warrants and the form of the
Agent's execution on behalf of the Holder and countersignature of any Purchase
Contracts, each constituting a part of the Units of any series, shall be
substantially in such form as

                                       11
<PAGE>

set forth in the Indenture, the Warrant Agreement or this Agreement, as
applicable.

         Section 2.03 . Amount Unlimited; Issuable in Series. (a) The aggregate
number of Units that may be authenticated, countersigned and delivered under
this Agreement is unlimited.

         The Units may be issued in one or more series. There shall be
established, upon the order of the Corporation (contained in an Issuer Order) or
pursuant to such procedures acceptable to the Agent as may be specified from
time to time by an Issuer Order, prior to the initial issuance of Units of any
series:

                  (i) the designation of the Units of the series, which shall
         distinguish the Units of the series from the Units of all other series;

                  (ii) any limit upon the aggregate number of Units of the
         series that may be authenticated and delivered under this Agreement
         (disregarding any Units authenticated and delivered upon registration
         of transfer of, or in exchange for, or in lieu of, other Units of the
         series pursuant to Section 2.07, 2.08, 2.09 or 2.12);

                  (iii) the designation of the Securities constituting a part of
         the Units of the series;

                  (iv) whether and on what terms any Securities constituting a
         part of the Units of the series may be separated from the Units of the
         series and the other Securities constituting a part of such Units;

                  (v) in the case of Units of a series consisting in any part of
         Purchase Contracts, the information specified pursuant to Section 3.02;

                  (vi) whether the Units of the series will be issuable as
         Registered Units (and if so, whether such Units will be issuable in
         global form) or Unregistered Units (and if so, whether such Units will
         be issuable in global form), or any combination of the foregoing, any
         restrictions applicable to the offer, sale or delivery of Unregistered
         Securities and, if other than as provided in Section 2.08, the terms
         upon which Unregistered Units of any series may be exchanged for
         Registered Units of such series and vice versa;

                  (vii) in the case of Units issued as Registered Units
         consisting of Registered Securities that may not be separated from the
         other Registered Securities constituting a part of such Units, the
         designation of the Security Register to be used to determine the Holder
         of such Units;

                                       12
<PAGE>

                  (viii) if the Units of such series are to be issuable in
         definitive form (whether upon original issue or upon exchange of a
         temporary Unit of such series) only upon receipt of certain
         certificates or other documents or satisfaction of other conditions,
         the form and terms of such certificates, documents or conditions;

                  (ix) any trustees, depositaries, authenticating or paying
         agents, transfer agents or registrars or any other agents with respect
         to the Units of such series;

                  (x) any other events of default or covenants with respect to
         the Units of such series; and

                  (xi) any other terms of the series (which terms shall not be
         inconsistent with the provisions of this Agreement).

         (b) All Units of any one series shall be substantially identical,
except as may otherwise be provided by or pursuant to the Issuer Order or
procedures referred to above. All Units of any one series need not be issued at
the same time and may be issued from time to time, consistent with the terms of
this Agreement, if so provided by or pursuant to such Board Resolution or such
Issuer Order.

         Notwithstanding Section 2.03(a)(ii) hereto and unless otherwise
expressly provided with respect to a series of Securities, the aggregate number
of Units of a series may be increased and additional Units of such series may be
issued up to a maximum aggregate number authorized with respect to such series
as increased.

         Section 2.04. Denominations. Units of any series shall be issuable
only in denominations of a single Unit and any integral multiple thereof.

         Section 2.05. Rights and Obligations Evidenced by the Units. Units of
any series shall evidence the ownership by the Holder thereof of (a) the
principal amount of Debt Securities, if any, specified on the face of a Unit
Certificate representing Definitive Units or in Schedule A attached to any Unit
Certificate representing Global Units, (b) the number of Warrants, if any,
specified on the face of a Unit Certificate representing Definitive Units or in
Schedule A attached to any Unit Certificate representing Global Units, (c) the
number of Prepaid Purchase Contracts Issued under the Indenture, if any,
specified on the face of a Unit Certificate representing Definitive Units or in
Schedule A attached to any Unit Certificate representing Global Units and (d)
the rights and obligations of the Corporation and the Holder under the number
of Purchase Contracts, if any, specified on the face of a Unit Certificate
representing Definitive Units or in Schedule A attached to any Unit Certificate
representing Global Units.

                                       13
<PAGE>

         Section 2.06. Execution, Authentication, Delivery and Dating. Upon the
execution and delivery of this Agreement, and at any time and from time to time
thereafter, the Corporation may deliver, subject to any limitation on the
aggregate principal amount of Debt Securities, if any, or the number of
Warrants, Purchase Contracts or Prepaid Purchase Contracts Issued under the
Indenture, if any, represented thereby, an unlimited number of Unit Certificates
(including the Securities executed by the Corporation constituting the Units
evidenced by such Unit Certificates) to the Trustee, Warrant Agent and/or the
Agent for authentication, countersignature or execution, as the case may be, of
the Securities comprised by such Units, together with its Issuer Orders for
authentication, countersignature or execution of such Securities, and the
Trustee in accordance with the Indenture and the Issuer Order of the Corporation
shall authenticate the Debt Securities and Prepaid Purchase Contracts Issued
under the Indenture, if any, constituting a part of the Units evidenced by such
Unit Certificates, the Warrant Agent in accordance with the Warrant Agreement
and the Issuer Order of the Corporation shall countersign the Warrants, if any,
constituting a part of the Units evidenced by such Unit Certificates and the
Agent in accordance with this Agreement and the Issuer Order of the Corporation
shall countersign and execute on behalf of the Holders thereof the Purchase
Contracts, if any, constituting a part of the Units evidenced by such Unit
Certificates, and each shall deliver such Unit Certificates upon the order of
the Corporation.

         Any Debt Securities or Prepaid Purchase Contracts Issued under the
Indenture constituting a part of the Units of any series shall be executed on
behalf of the Corporation in accordance with the terms of the Indenture. Any
Warrants constituting a part of the Units of any series shall be executed on
behalf of the Corporation in accordance with the terms of the Warrant Agreement.
Any Purchase Contracts constituting a part of the Units shall be executed on
behalf of the Corporation in accordance with Section 3.01.

         Section 2.07. Temporary Unit Certificates. Pending the preparation of
Unit Certificates for any series, the Corporation may execute and deliver to the
Trustee, the Warrant Agent and/or the Agent, as appropriate, and the Trustee,
the Warrant Agent and/or the Agent, as appropriate, shall authenticate,
countersign, execute on behalf of the Holder and deliver, as appropriate, in
lieu of such Unit Certificates, temporary Unit Certificates for such series.
Temporary Unit Certificates shall be in substantially the form of the Unit
Certificates of such series, but with such omissions, insertions and variations
as may be appropriate for temporary Unit Certificates, all as may be determined
by the Corporation with the concurrence of the Trustee, Warrant Agent and/or
Agent, as appropriate, as evidenced by the execution and authentication and/or
countersignature of the Securities constituting a part of the Units evidenced
thereby, as applicable.

         If temporary Unit Certificates for any series are issued, the
Corporation will cause definitive Unit Certificates for such series to be
prepared without

                                       14
<PAGE>

unreasonable delay. After the preparation of such definitive Unit Certificates,
the temporary Unit Certificates shall be exchangeable therefor upon surrender of
temporary Registered Units of such series at the Corporate Trust Office, at the
expense of the Corporation and without charge to any Holder and, in the case of
Unregistered Units, at any agency maintained for such purpose as specified
pursuant to Section 2.03. Upon surrender for cancellation of any one or more
temporary Unit Certificates, the Corporation shall execute and deliver to the
Trustee, the Warrant Agent and/or the Agent, and the Trustee, the Warrant Agent
and/or the Agent shall authenticate, countersign, execute on behalf of the
Holder and deliver, as appropriate, in exchange therefor definitive Unit
Certificates of the same series of like tenor, of authorized denominations and
evidencing a like number of Units as the temporary Unit Certificate or
Certificates so surrendered. Until so exchanged, the temporary Unit Certificates
of any series shall in all respects evidence the same benefits and the same
obligations under any Debt Securities, Prepaid Purchase Contracts Issued under
the Indenture, Warrants and Purchase Contracts constituting parts of such Units,
the Indenture, the Warrant Agreement and this Agreement as definitive Unit
Certificates of such series, unless otherwise specified pursuant to Section
2.03.

         Section 2.08. Registration of Transfer and Exchange; Global Units. The
Agent shall keep at its Corporate Trust Office for each series of Registered
Units a register (the register maintained in such office being herein referred
to as the "Purchase Contract Register") in which, subject to such reasonable
regulations as it may prescribe, the Agent shall provide for the registration of
Registered Purchase Contracts, if any, constituting a part of such series and of
transfers of such Purchase Contracts (the Agent, in such capacity, the "Purchase
Contract Registrar").

         At the option of the Holder thereof, Registered Units of any series
(other than a global Registered Unit, except as set forth below) may be
transferred or exchanged for a Registered Unit or Registered Units of such
series having authorized denominations evidencing the number of Units
transferred or exchanged, upon surrender of such Registered Units to be so
transferred or exchanged at the Corporate Trust Office of the Agent upon
payment, if the Corporation shall so require, of the charges hereinafter
provided. If the Units of any series are issued in both registered and
unregistered form, except as otherwise specified pursuant to Section 2.03, at
the option of the Holder thereof, Unregistered Units of such series may be
exchanged for Registered Units of such series having authorized denominations
and evidencing the number of Units transferred or exchanged, upon surrender of
such Unregistered Units to be so transferred or exchanged at the Corporate Trust
Office of the Agent and upon payment, if the Corporation shall so require, of
the charges hereinafter provided. At the option of the Holder thereof, if
Unregistered Units of any series are issued in more than one authorized
denomination, except as otherwise specified pursuant to Section 2.03, such
Unregistered Units may be exchanged for Unregistered

                                       15
<PAGE>

Units of such series having authorized denominations evidencing the number of
Units exchanged, upon surrender of such Unregistered Units to be so exchanged at
the Corporate Trust Office of the Agent or as specified pursuant to Section
2.03, and upon payment, if the Corporation shall so require, of the charges
hereinafter provided. Unless otherwise specified pursuant to Section 2.03,
Registered Units of any series may not be exchanged for Unregistered Units of
such series. Whenever any Units are so surrendered for transfer or exchange, the
Corporation shall execute, and the Trustee, Warrant Agent and/or the Agent, as
appropriate, shall authenticate, countersign or execute, as the case may be, and
deliver the Units which the Holder making the transfer or exchange is entitled
to receive. All Units (including the Securities constituting part of such Units)
surrendered upon any exchange or transfer provided for in this Agreement shall
be promptly cancelled and disposed of by the Agent and the Agent will deliver a
certificate of disposition thereof to the Corporation and to the Trustee and the
Warrant Agent, as applicable.

         Unregistered Units shall be transferable by delivery.

         Subject to Section 2.12, if the Corporation shall establish pursuant to
Section 2.03 that the Units of a series are to be evidenced by one or more
Global Units, then the Corporation shall execute and the Agent, Warrant Agent
and Trustee shall, in accordance with this Section and Section 2.06,
countersign, authenticate and execute, as appropriate, and deliver one or more
global Unit Certificates that (i) shall evidence all or a portion of the Units
of such series issued in such form and not yet cancelled, (ii) in the case of
Registered Units, shall be registered in the name of the Depositary for such
Units or the nominee of such Depositary, (iii) shall be delivered by the Agent
to the Depositary for such Units or pursuant to such Depositary's instructions
and (iv) in the case of Registered Units, shall bear a legend substantially to
the following effect: "Unless and until it is exchanged in whole or in part for
Units in definitive registered form, this Unit Certificate may not be
transferred except as a whole by the Depositary to the nominee of the Depositary
or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary or by the Depositary or any such nominee to a successor Depositary or
a nominee of such successor Depositary." Whenever Global Units of any series are
exchanged for Definitive Units of such series or whenever Definitive Units of
any series are exchanged for Global Units of such series, the Agent shall cause,
as applicable: (i) Schedule A of the Global Debt Security, if any, to be
endorsed to reflect any increase or decrease, as the case may be, in the
principal amount of Debt Securities, if any, that are comprised by Global Units
as a result of such exchange, (ii) Schedule A of the Global Warrant, if any, to
be endorsed to reflect any increase or decrease, as the case may be, in the
number of Warrants, if any, that are comprised by the Global Units as a result
of such exchange, (iii) Schedule A of the Global Purchase Contract, if any, to
be endorsed to reflect any increase or decrease, as the case may be, in the
number of Purchase Contracts, if any, that are comprised by Global Units as a

                                       16
<PAGE>

result of such exchange and (iv) Schedule A of the Global Prepaid Purchase
Contract Issued under the Indenture, if any, to be endorsed to reflect any
increase or decrease, as the case may be, in the number of Prepaid Purchase
Contracts Issued under the Indenture, if any, that are comprised by Global Units
as a result of such exchange, whereupon such number of Global Units shall be
decreased or increased for all purposes by the number so exchanged, as noted.

         All Unit Certificates authenticated, countersigned and executed upon
any registration of transfer or exchange of a Unit Certificate shall evidence
the ownership of the principal amount of Debt Securities, if any, specified on
the face thereof, the number of Warrants, if any, specified on the face thereof
and the number of Prepaid Purchase Contracts Issued under the Indenture, if any,
specified on the face thereof and the rights and obligations of the Holder and
the Corporation under the number of Purchase Contracts, if any, specified on the
face thereof and shall be entitled to the same benefits, and be subject to the
same obligations, under the Indenture, the Warrant Agreement and this Agreement
as the Units evidenced by the Unit Certificate surrendered upon such
registration of transfer or exchange.

         Every Unit Certificate presented or surrendered for registration of
transfer or for exchange shall (if so required by the Corporation or the Agent)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Corporation and the Agent, duly executed by the Holder
thereof or his attorney duly authorized in writing.

         No service charge shall be made for any transfer or exchange of a Unit,
but the Corporation and the Agent may require payment from the Holder of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Units, other than
any exchanges pursuant to Section 2.09 not involving any transfer.

         Notwithstanding the foregoing, and subject to Section 2.08 of the
Indenture, the Corporation shall not be obligated to execute and deliver to the
Trustee, the Warrant Agent or the Agent, and none of the Trustee, under the
terms of the Indenture, the Warrant Agent, under the terms of the Warrant
Agreement, or the Agent hereunder shall be obligated to authenticate,
countersign or execute on behalf of the Holder any Unit Certificate presented or
surrendered for registration of transfer or for exchange of any Debt Securities,
Prepaid Purchase Contracts Issued under the Indenture, Warrants or Purchase
Contracts evidenced thereby or any Unit Certificate evidencing a Definitive Unit
to be issued in exchange for interests in Global Units or to reflect any
increase or decrease in a Global Unit, Global Debt Security, Global Warrant,
Global Purchase Contract or Global Prepaid Purchase Contract Issued under the
Indenture (i) during the period beginning any time on or after the opening of
business 15 days before the day of mailing of a notice of redemption or of any
other exercise of any right held by the

                                       17
<PAGE>

Corporation with respect to the Unit (or any Security constituting a part of the
Units of such series) and ending at the close of business on the day of the
giving of such notice, (ii) that evidences or would evidence any such Unit or
Security selected or called for redemption or with respect to which such right
has been exercised or (iii) at any given date, if such date is on or after any
date that is after the Settlement Date or the date of redemption, as applicable,
with respect to the Purchase Contracts, if any, evidenced or to be evidenced by
such Unit Certificate (or at any time on or after the last exercise date with
respect to any Warrant constituting a part of such Unit), except with respect to
any Registered Debt Securities or portions thereof that remain or will remain
Outstanding following such Settlement Date or date of redemption (or such last
exercise date) or (iv) at any other date specified pursuant to Section 2.03.

         Section 2.09. Mutilated, Destroyed, Lost and Stolen Unit Certificates.
If any mutilated Unit Certificate is surrendered to the Agent, the Corporation
shall execute and deliver to the Trustee, the Warrant Agent and/or the Agent, as
appropriate, and the Trustee, the Warrant Agent and/or the Agent shall
authenticate, countersign, execute on behalf of the Holder and deliver, as
appropriate, in exchange therefor new Securities comprised by Units of the same
series, of like tenor, and evidenced by a new Unit Certificate evidencing the
same number of Units and bearing a number not contemporaneously outstanding.

         If there shall be delivered to the Corporation and the Trustee, the
Warrant Agent and/or the Agent, as appropriate, (i) evidence to their
satisfaction of the destruction, loss or theft of any Unit Certificate and (ii)
such security or indemnity as may be required by them to hold each of them and
any agent of any of them harmless, then, in the absence of notice to the
Corporation and the Trustee, the Warrant Agent and/or the Agent, as appropriate,
that such Unit Certificate has been acquired by a bona fide purchaser, the
Corporation shall execute and deliver to the Trustee, the Warrant Agent and/or
the Agent, as appropriate, and the Trustee (in accordance with the provisions of
the Indenture), the Warrant Agent (in accordance with the provisions of the
Warrant Agreement) and/or the Agent (in accordance with the provisions hereof)
shall authenticate, countersign, execute on behalf of the Holder and deliver to
the Holder, as appropriate, in lieu of any such destroyed, lost or stolen Unit
Certificate, new Securities comprised by Units of the same series, of like
tenor, and evidenced by a new Unit Certificate evidencing the same number of
Units and bearing a number not contemporaneously outstanding.

         Unless otherwise specified pursuant to Section 2.03, notwithstanding
the foregoing, the Corporation shall not be obligated to execute and deliver to
the Trustee, the Warrant Agent or the Agent, and none of the Trustee (under the
Indenture), the Warrant Agent (under the Warrant Agreement), or the Agent shall
be obligated to authenticate, countersign or execute on behalf of the Holder, or
deliver to the Holder, a new Unit Certificate (or any Security constituting a
part of

                                       18
<PAGE>

such Unit) (i) during the period beginning any time on or after the opening of
business 15 days before the day of mailing of a notice of redemption or of any
other exercise of any right held by the Corporation with respect to the Unit (or
any Security constituting a part of such Unit) and ending at the close of
business on the day of the giving of such notice, (ii) that evidences any Unit
or Security selected or called for redemption or with respect to which such
right has been exercised, (iii) at any given date, if such date is on or after
the Settlement Date or date of redemption, as applicable, with respect to any
Purchase Contracts evidenced by such Unit Certificate (or at any time on or
after the last exercise date with respect to any Warrant constituting a part of
such Unit), except with respect to any Registered Debt Security or portion
thereof evidenced by such Unit Certificate that remains or will remain
Outstanding following such Settlement Date or date of redemption (or such last
exercise date) or (iv) at any other date specified pursuant to Section 2.03. In
lieu of delivery of a new Unit Certificate, upon satisfaction of the applicable
conditions specified in clauses (i) and (ii) of the preceding paragraph, the
Agent shall deliver or cause to be delivered on the applicable Settlement Date,
redemption date or exercise date (i) in respect of Purchase Contracts, Warrants
or Debt Securities constituting a part of the Units evidenced by such Unit
Certificate that are selected or called for redemption, the redemption price of
such Purchase Contracts, Warrants or Debt Securities or (ii) in respect of
Purchase Contracts or Warrants constituting a part of the Units evidenced by
such Unit Certificate with respect to which a Cash Settlement or Debt Security
Settlement (or any equivalent manner of settlement) has taken place, (x) the
Purchase Contract Property or Warrant Property (or cash value thereof), purchase
price, cash settlement value, Settlement Amount or other amount, as the case may
be, deliverable with respect to such Purchase Contracts or Warrants (and, in the
case of an effective Cash Settlement (or any equivalent manner of settlement),
the related Debt Securities) or (y) if a Purchase Contract Default or any
default under the Warrant Agreement or Warrant has occurred by virtue of the
Corporation's having failed to deliver the Purchase Contract Property or Warrant
Property (or cash value thereof), purchase price, cash settlement value,
Settlement Amount or other amount, as the case may be, deliverable against
tender by the Agent of the purchase price, Purchase Contract Property (or the
cash value thereof) or other Settlement Amount, exercise price or other amount,
as the case may be, such purchase price, Purchase Contract Property (or cash
value thereof) or Settlement Amount or other amount, if any, received by the
Agent from the Holder in respect of the Settlement of such Purchase Contracts or
exercise of such Warrants or in respect of principal with respect to the related
Debt Securities received by the Agent.

         Upon the issuance of any new Unit Certificate under this Section, the
Corporation and the Agent may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto and

                                       19
<PAGE>

any other expenses (including the fees and expenses of the Agent) connected
therewith.

         Every new Unit Certificate executed pursuant to this Section in lieu of
any destroyed, lost or stolen Unit Certificate shall constitute an original
additional contractual obligation of the Corporation and of the Holder (with
respect to any Purchase Contracts constituting a part of the Units evidenced
thereby), whether or not the destroyed, lost or stolen Unit Certificate (and the
Securities evidenced thereby) shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Unit Certificates delivered hereunder.

         The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Unit Certificates.

         Section 2.10. Persons Deemed Owners. Prior to due presentment of a Unit
Certificate of any series for registration of transfer, the Corporation, the
Trustee, the Warrant Agent, the Collateral Agent and the Agent, as appropriate,
and any agent of the Corporation, the Trustee, the Warrant Agent, the Collateral
Agent or the Agent, as appropriate, may treat the Person in whose name any
Registered Security evidenced by such Unit Certificate is registered and, with
respect to any Unregistered Security constituting a part of the Units evidenced
by such Unit Certificate, the bearer thereof, as the owner of the Units
evidenced thereby for all purposes whatsoever, whether or not payment with
respect to any Security constituting a part of the Units evidenced thereby shall
be overdue and notwithstanding any notice to the contrary. None of the
Corporation, the Trustee, the Warrant Agent, the Agent, the Collateral Agent or
any agent of the Corporation, the Trustee, the Warrant Agent, the Collateral
Agent or the Agent shall be affected by notice to the contrary.

         Section 2.11. Cancellation. Subject to Section 3.07, all Unit
Certificates surrendered for payment, and all Unit Certificates surrendered for
redemption of any Debt Securities, Prepaid Purchase Contracts Issued under the
Indenture or Purchase Contracts evidenced thereby, exercise of any Warrants
evidenced thereby, termination or settlement of any Purchase Contracts evidenced
thereby, delivery of Purchase Contract Property or registration of transfer or
exchange shall, if surrendered to any Person other than the Trustee, the Warrant
Agent or the Agent, as appropriate, be delivered to the Trustee, the Warrant
Agent and/or the Agent, as appropriate, and, if not already cancelled, any Debt
Securities, Prepaid Purchase Contracts Issued under the Indenture, Warrants or
Purchase Contracts evidenced by such Units shall be promptly cancelled by the
Trustee, the Warrant Agent and/or the Agent, as appropriate. The Corporation may
at any time deliver to the Trustee, the Warrant Agent and/or the Agent, as
appropriate, for cancellation any Unit Certificates previously authenticated,
countersigned,

                                       20
<PAGE>

executed and delivered hereunder, under the Warrant Agreement and under the
Indenture, which the Corporation may have acquired in any manner whatsoever, and
all Unit Certificates so delivered shall, upon Issuer Order of the Corporation,
be promptly cancelled by the Trustee, Warrant Agent and/or the Agent, as
appropriate. No Unit Certificates shall be authenticated, countersigned and
executed in lieu of or in exchange for any Unit Certificates cancelled as
provided in this Section, except as permitted by this Agreement. All cancelled
Unit Certificates held by the Agent shall be disposed of in accordance with its
customary procedures and a certificate of their disposition shall be delivered
by the Agent to the Corporation, unless by Issuer Order the Corporation shall
direct that cancelled Unit Certificates be returned to it.

         If the Corporation or any Affiliate of the Corporation shall acquire
any Unit Certificate, such acquisition shall not operate as a cancellation of
such Unit Certificate unless and until such Unit Certificate is delivered to the
Trustee, the Warrant Agent and/or the Agent, as appropriate, for the purpose of
cancellation.

         Section 2.12. Exchange of Global Units and Definitive Units. In the
case of Registered Units, Holders of Global Units of any series shall receive
Definitive Units of such series in exchange for interests in such Global Units
if DTC notifies the Corporation that it is unwilling or unable to continue as
Depositary with respect to the Global Units of such series or if at any time it
ceases to be a clearing agency under the Exchange Act, and a successor
Depositary registered as a clearing agency under the Exchange Act is not
appointed by the Corporation within 90 days after receipt of such notice or
after it becomes aware that DTC has ceased to be such a clearing agency.

         If so provided pursuant to Section 2.03, interests in such Global Units
may also be transferred or exchanged for Definitive Units upon the request of
the Depositary to the Trustee, the Warrant Agent and/or the Agent, as
appropriate, to authenticate, countersign and execute, as the case may be, Unit
Certificates representing Definitive Units (such request being referred to
herein as an "Optional Definitive Unit Request").

         Definitive Units exchanged for interests in Global Units pursuant to
this Section 2.12 shall be denominated in the amounts and registered in the name
of such Person or Persons as the Depositary shall instruct the Agent, the
Warrant Agent and the Trustee, as appropriate.

         Whenever Global Units are exchanged for Definitive Units, the Agent
shall cause Schedule A of the Global Unit to be endorsed to reflect any decrease
in the Global Units as a result of such exchange, whereupon the Global Unit
Certificate or Certificates shall be canceled and disposed of in accordance with
Section 2.11.

                                       21
<PAGE>

         If so specified pursuant to Section 2.03, Holders of Definitive Units
may transfer or exchange such Definitive Units for interests in Global Units by
depositing the Unit Certificates evidencing such Definitive Units with the Agent
and requesting the Agent, the Warrant Agent and the Trustee, as appropriate, to
effect such exchange. The Agent shall notify the Depositary of any such exchange
and, upon delivery to the Agent, the Warrant Agent and the Trustee, as
appropriate, of the Unit Certificates evidencing the Definitive Units to be so
transferred or exchanged, the Agent shall take all actions required with respect
to any Global Securities evidenced by such Global Units and Unit Certificates
evidencing the remaining Definitive Units, if any, will be issued in accordance
with Section 2.08.

                                   Article 3
                 THE PURCHASE CONTRACTS; SETTLEMENT OF WARRANTS

         Section 3.01. Form and Execution of Purchase Contracts; Temporary
Purchase Contracts. (a) Purchase Contracts of each series shall be
substantially in the forms attached as Exhibit A, as appropriate, or in such
form (not inconsistent with this Agreement) as shall be established by or
pursuant to one or more Board Resolutions (as set forth in a Board Resolution
or, to the extent established pursuant to rather than set forth in a Board
Resolution, an Officer's Certificate detailing such establishment, in each
case, which may be included in any Board Resolution or Officer's Certificate
made pursuant to this Agreement) or in one or more agreements supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Agreement. The
Purchase Contracts may have imprinted or otherwise reproduced thereon such
letters, numbers or other marks of identification or designation and such
legends or endorsements as the officers of the Corporation executing the same
may approve (execution thereof to be conclusive evidence of such approval) and
that are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto, or with any rule or regulation of any SRO on which the Purchase
Contracts of such series may be listed or quoted, or of any securities
depository, or to conform to general usage. Purchase Contracts shall be signed
on behalf of the Corporation by the chairman of the Board of Directors, the
president, the chief financial officer, the chief strategic and administrative
officer, the chief legal officer, the treasurer or any assistant treasurer of
the Corporation or any other person authorized by the Board of Directors to
execute Purchase Contracts, which signature may or may not be attested by the
secretary or an assistant secretary of the Corporation. The signature of any of
such officers may be either manual or facsimile. Typographical and other minor
errors or defects in any such signature shall not

                                       22
<PAGE>

affect the validity or enforceability of any Purchase Contract that has been
duly countersigned and delivered by the Agent.

         (b) In case any officer of the Corporation who shall have signed a
Purchase Contract, either manually or by facsimile signature, shall cease to be
such officer before such Purchase Contract shall have been countersigned and
delivered by the Agent to the Corporation or delivered by the Corporation, such
Purchase Contract nevertheless may be countersigned and delivered as though the
person who signed such Purchase Contract had not ceased to be such officer of
the Corporation; and a Purchase Contract may be signed on behalf of the
Corporation by any person who, at the actual date of the execution of such
Purchase Contract, shall be a proper officer of the Corporation to sign such
Purchase Contract, although at the date of the execution of this Agreement any
such person was not such officer.

         (c) Pending the preparation of final Purchase Contracts of any series,
the Corporation may execute and the Agent shall countersign and deliver
temporary Purchase Contracts (printed, lithographed, typewritten or otherwise
produced, in each case in form satisfactory to the Agent). Such temporary
Purchase Contracts shall be issuable substantially in the form of the final
Purchase Contracts but with such omissions, insertions and variations as may be
appropriate for temporary Purchase Contracts, all as may be determined by the
Corporation with the concurrence of the Agent. Such temporary Purchase Contracts
may contain such reference to any provisions of this Agreement as may be
appropriate. Every such temporary Purchase Contract shall be executed by the
Corporation and shall be countersigned by the Agent upon the same conditions and
in substantially the same manner, and with like effect, as the final Purchase
Contracts. Without unreasonable delay, the Corporation shall execute and shall
furnish final Purchase Contracts and thereupon such temporary Purchase Contracts
may be surrendered in exchange therefor without charge, and the Agent shall
countersign and deliver in exchange for such temporary Purchase Contracts final
Purchase Contracts evidencing a like aggregate number of Purchase Contracts of
the same series and of like tenor as those evidenced by such temporary Purchase
Contracts. Until so exchanged, such temporary Purchase Contracts shall be
entitled to the same benefits under this Agreement as final Purchase Contracts.

         Section 3.02. Number Unlimited Issuable in Series. (a) The aggregate
number of Purchase Contracts that may be delivered under this Agreement is
unlimited.

         (b) The Purchase Contracts may be issued in one or more series. There
shall be established in or pursuant to one or more Board Resolutions (and to the
extent established pursuant to rather than set forth in a Board Resolution, in
an Officer's Certificate detailing such establishment) or established in one or
more

                                       23
<PAGE>

agreements supplemental hereto, prior to the initial issuance of Purchase
Contracts of such series:

                  (i) the designation of the Purchase Contracts of the series,
         which shall distinguish the Purchase Contracts of the series from the
         Purchase Contracts of all other series;

                  (ii) any limit upon the aggregate number of the Purchase
         Contracts of the series that may be countersigned and delivered under
         this Agreement (disregarding any Purchase Contracts countersigned and
         delivered upon registration of transfer of, or in exchange for, or in
         lieu of, other Purchase Contracts of the series);

                  (iii) the specific property (the "Purchase Contract Property")
         used to determine the amount payable upon settlement of the Purchase
         Contracts of the series, and the amount of such property (or the method
         for determining the same);

                  (iv) whether the Purchase Contracts of the series provide for
         the purchase by the Corporation and the sale by the Holder or the sale
         by the Corporation and the purchase by the Holder of the Purchase
         Contract Property;

                  (v) in the case of Purchase Contracts that obligate the
         Corporation to sell, and the Holder to purchase, Purchase Contract
         Property, the Purchase Price at which and, if other than U.S. dollars,
         the coin or currency with which the Purchase Contract Property is to be
         purchased by the Holder upon settlement of the Purchase Contracts of
         the series (or the method for determining the same) and whether the
         Purchase Price for such Purchase Contracts may be paid in cash or by
         the exchange of any other security of the Corporation, or both, or
         otherwise, and the time at which such Purchase Price shall be paid (if
         different from the settlement date);

                  (vi) in the case of Purchase Contracts that obligate the
         Corporation to purchase, and the Holders to sell, Purchase Contract
         Property, the Settlement Amount for the Purchase Contracts of the
         series (or the method for determining the same) and, if other than U.S.
         dollars, the coin or currency in which such Settlement Amount is to be
         paid;

                  (vii) whether the settlement of the Purchase Contracts of the
         series is to be in cash or by delivery of the Purchase Contract
         Property, or otherwise, and the method of settlement of the Purchase
         Contracts of the series;

                                       24
<PAGE>

                  (viii) the specific date or dates on which the Purchase
         Contracts will be settled, whether the settlement may be accelerated by
         the Corporation or the Holders thereof and, if so, the initial
         accelerated settlement date, the minimum number of Purchase Contracts
         that may be accelerated and the minimum number of Purchase Contracts
         greater than zero that must remain Outstanding immediately following
         such acceleration;

                  (ix) whether the Purchase Contracts of the series will be in
         registered form ("Registered Purchase Contracts") or bearer form
         ("Bearer Purchase Contracts") or both;

                  (x) whether any Purchase Contracts of the series will be
         issued in global form or definitive form or both, and whether and on
         what terms (if different from those set forth herein) Purchase
         Contracts in one form may be converted into or exchanged for Purchase
         Contracts in the other form;

                  (xi) any agents, depositaries, authenticating or paying
         agents, transfer agents or registrars or any determination or
         calculation agents or other agents with respect to Purchase Contracts
         of the series;

                  (xii) whether and on what terms the Purchase Contracts of the
         series may be separated from the other components of the Units of which
         the Purchase Contracts are a component;

                  (xiii) whether the Purchase Contracts of such series will be
         subject to redemption by the Corporation and, if so, the initial
         redemption date, the minimum number of Purchase Contracts that may be
         redeemed and the minimum number of Purchase Contracts greater than zero
         that must remain Outstanding immediately following such redemption; and

                  (xiv) any other terms of the Purchase Contracts of the series
         (which terms shall not be inconsistent with the provisions of this
         Agreement).

         (c) All Purchase Contracts of any one series shall be substantially
identical, except as may otherwise be provided by or pursuant to the Board
Resolution or Officer's Certificate referred to above or as set forth in any
such agreement supplemental hereto. All Purchase Contracts of any one series
need not be issued at the same time and may be issued from time to time,
consistent with the terms of this Agreement, if so provided by or pursuant to
such Board Resolution, such Officer's Certificate or in any such agreement
supplemental hereto.

                                       25
<PAGE>

         Section 3.03. Countersignature, Execution on Behalf of Holder and
Delivery of Purchase Contracts. (a) The Corporation may deliver Purchase
Contracts of any series executed by the Corporation to the Agent for
countersignature and execution on behalf of the Holders, together with the
applicable documents referred to below in this Section, and the Agent shall
thereupon countersign, execute on behalf of the Holders and deliver such
Purchase Contracts to or upon the order of the Corporation (contained in the
Issuer Order referred to below in this Section) or pursuant to such procedures
acceptable to the Agent as may be specified from time to time by an Issuer
Order. If provided for in such procedures, such Issuer Order may authorize
countersignature, execution on behalf of the Holders and delivery pursuant to
oral instructions from the Corporation or its duly authorized agent, which
instructions shall be promptly confirmed in writing. In countersigning such
Purchase Contracts, executing such Purchase Contracts on behalf of the Holders
and accepting the responsibilities under this Agreement in relation to the
Purchase Contracts, the Agent shall be entitled to receive (in the case of
subparagraphs (ii), (iii) and (iv) below only at or before the time of the
first request of the Corporation to the Agent to countersign and execute on
behalf of the Holders Purchase Contracts in a particular form) and shall be
fully protected in relying upon, unless and until such documents have been
superseded or revoked:

                  (i) an Issuer Order requesting such countersignature and
         execution and setting forth delivery instructions if the Purchase
         Contracts are not to be delivered to the Corporation;

                  (ii) any Board Resolution, Officer's Certificate and/or
         executed supplemental agreement pursuant to which the forms and terms
         of the Purchase Contracts were established;

                  (iii) an Officer's Certificate setting forth the forms and
         terms of the Purchase Contracts, stating that the form or forms and
         terms of such Purchase Contracts have been established pursuant to
         Sections 3.01 and 3.02 and comply with this Agreement, and covering
         such other matters as the Agent may reasonably request; and

                  (iv) At the option of the Corporation, either an Opinion of
         Counsel or a letter addressed to the Agent permitting it to rely on an
         Opinion of Counsel, substantially to the effect that:

                           (A) the forms of the Purchase Contracts have been
                  duly authorized and established in conformity with the
                  provisions of this Agreement;

                           (B) the terms of the Purchase Contracts have been
                  duly authorized and established in conformity with the
                  provisions

                                       26
<PAGE>

                  of this Agreement and certain terms of the Purchase Contracts
                  have been established pursuant to a Board Resolution, an
                  Officer's Certificate or a supplemental agreement in
                  accordance with this Agreement, and when such other terms as
                  are to be established pursuant to procedures set forth in an
                  Issuer Order shall have been established, all terms will have
                  been duly authorized by the Corporation and will have been
                  established in conformity with the provisions of this
                  Agreement; and

                           (C) when the Purchase Contracts have been executed by
                  the Corporation and by the Agent on behalf of the Holders and
                  countersigned by the Agent in accordance with the provisions
                  of this Agreement and delivered to and duly paid for by the
                  purchasers thereof, subject to such other conditions as may be
                  set forth in such opinion of counsel, they will have been duly
                  issued under this Agreement and will be valid and legally
                  binding obligations of the Corporation, enforceable in
                  accordance with their respective terms, and will be entitled
                  to the benefits of this Agreement.

         In rendering such opinions, such counsel may qualify any opinions as to
enforceability by stating that such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium and other similar laws
affecting the rights and remedies of creditors and is subject to general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law). Such counsel may rely, as to all matters
governed by the laws of jurisdictions other than the State of New York and the
federal law of the United States, upon opinions of other counsel (copies of
which shall be delivered to the Agent), who shall be counsel reasonably
satisfactory to the Agent, in which case the opinion shall state that such
counsel believes he and the Agent are entitled so to rely. Such counsel may also
state that, insofar as such opinion involves factual matters, he has relied, to
the extent he deems proper, upon certificates of officers of the Corporation and
its subsidiaries and certificates of public officials.

         (b) The Agent shall have the right to decline to countersign, execute
on behalf of the Holders and deliver any Purchase Contract under this Section if
the Agent, being advised by counsel, determines that such action may not
lawfully be taken by the Corporation or if the Agent in good faith by its board
of directors or board of trustees determines that such action would expose the
Agent to personal liability to existing registered or beneficial holders of
Purchase Contracts or would affect the Agent's own rights, duties or immunities
under the Purchase Contracts, this Agreement or otherwise.

         (c) If the Corporation shall establish pursuant to Section 3.02 that
the Purchase Contracts of a series are to be evidenced by one or more Global

                                       27
<PAGE>

Purchase Contracts, then unless otherwise agreed between the Corporation and the
Agent the Corporation shall execute and the Agent shall, in accordance with this
Section and the Issuer Order with respect to such series, countersign, execute
on behalf of the Holders and deliver one or more Global Purchase Contracts that
(i) shall evidence all or a portion of the Purchase Contracts of such series
issued in such form and not yet cancelled, (ii) in the case of Registered
Purchase Contracts, shall be registered in the name of the Depositary for such
Purchase Contracts or the nominee of such Depositary, (iii) shall be delivered
by the Agent to such Depositary or pursuant to such Depositary's instructions
and (iv) in the case of Registered Purchase Contracts, shall bear a legend
substantially to the following effect: "Unless and until it is exchanged in
whole or in part for Purchase Contracts in definitive registered form, this
Purchase Contract may not be transferred except as a whole by the Depositary to
the nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such successor Depositary.

         (d) If so required by applicable law, each Depositary for a series of
Registered Purchase Contracts must, at the time of its designation and at all
times while it serves as Depositary, be a clearing agency registered under the
Securities Exchange Act of 1934, as amended, and any other applicable statute or
regulation.

         (e) Each Purchase Contract shall be dated the date of its
countersignature. A Purchase Contract shall not be valid for any purpose, unless
and until such Purchase Contract has been executed by the Agent on behalf of the
Holder and countersigned by the manual signature of an authorized officer of the
Agent. Such countersignature by an authorized officer of the Agent upon any
Purchase Contract executed by the Corporation in accordance with this Agreement
shall be conclusive evidence that the Purchase Contract so countersigned has
been duly delivered and issued hereunder.

         Section 3.04. Further Provisions Relating to Issuance of Purchase
Contracts. Purchase Contracts may be executed by the Corporation and delivered
to the Agent upon the execution of this Agreement or from time to time
thereafter and in connection with exchanges, substitutions and transfers of
Units of any series. Subsequent to the original issuance of the Purchase
Contracts, the Agent shall, subject to the conditions set forth in this Article
and Article Two, countersign and execute on behalf of the Holder Purchase
Contracts issued in exchange or substitution for or upon transfer of Unit
Certificates evidencing one or more previously countersigned and executed
Unsettled Purchase Contracts evidenced by the Unit Certificates to be exchanged,
substituted for or transferred.

         Section 3.05. Purchase of Purchase Contract Property; Optional
Acceleration of Purchase Obligations; Authorization of Agent by Holder;
Transferees Bound. (a) Unless otherwise specified pursuant to Section 3.02, the

                                       28
<PAGE>

Unsettled Purchase Contracts of any series will either (i) obligate the Holders
thereof to purchase, and the Corporation to sell or deliver the cash value of,
Purchase Contract Property or (ii) obligate the Corporation to purchase, and
the Holders thereof to sell or deliver the cash value of, Purchase Contract
Property, in each case specified pursuant to Section 3.02 (or a quantity
calculated by a method specified pursuant to Section 3.02) on the Stated
Settlement Date at the Purchase Price specified pursuant to Section 3.02.

         (b) If this Section is specified as applicable pursuant to Section
3.02, the Corporation may, subject to paragraph (c) of this Section, at its sole
option and in its sole discretion at any time or from time to time (unless
otherwise specified pursuant to Section 3.02) on not less than 30 nor more than
60 days' written notice (an "Acceleration Notice") to the Agent and the Holders,
in the manner provided in Section 11.05 and Section 11.06, respectively,
accelerate the obligations of the Holders of at least the Minimum Acceleration
Amount of Unsettled Purchase Contracts to purchase or sell, as the case may be,
and of the Corporation to sell or purchase, as the case may be, on any
Accelerated Settlement Date (provided that such Accelerated Settlement Date may
not be prior to the Initial Acceleration Date), the quantity of Purchase
Contract Property specified pursuant to Section 3.02 for each Unsettled Purchase
Contract subject to such acceleration; provided that no such acceleration with
respect to fewer than all Unsettled Purchase Contracts shall (unless otherwise
specified pursuant to Section 3.02) result in fewer than the Minimum Remaining
Amount of Unsettled Purchase Contracts remaining Outstanding after such
Accelerated Settlement Date; and provided further that the Corporation shall
have the right, in its sole discretion, on or before the 10th day prior to such
Accelerated Settlement Date, to rescind any Acceleration Notice by written
notice to the Agent and written notice to the Holders pursuant to Section 11.05
and 11.06 (whereupon all rights and obligations of the Corporation and the
Holders that would have arisen as a result of such Acceleration Notice shall be
of no force and effect), without prejudice to the rights of the Corporation,
including without limitation its rights to deliver an Acceleration Notice in the
future. If fewer than all Unsettled Purchase Contracts of such series are to be
accelerated to a particular Accelerated Settlement Date, the Agent shall select
from among the Unsettled Purchase Contracts such number thereof as are being
accelerated on a pro rata basis, by lot or by such other means reasonably
acceptable to the Agent, with appropriate adjustment being made to prevent the
fractional acceleration of the settlement of Purchase Contracts, such that the
settlement of Purchase Contracts are accelerated only in whole and not in part.

         (c) Each Holder of a Unit, by his acceptance thereof, authorizes and
directs the Agent to enter into, deliver and perform any Purchase Contracts that
are part of such Unit on his behalf, agrees to be bound by the terms and
provisions thereof, covenants and agrees to perform its obligations under the
Purchase Contracts evidenced by such Unit, and consents and agrees to the
provisions

                                       29
<PAGE>

hereof. If the provisions of Section 3.06 are applicable to the Units of any
series, each Holder of a Unit of such series, by his acceptance thereof, further
covenants and agrees that, to the extent such Holder is deemed to have elected
to satisfy its obligations under any Purchase Contracts that are part of such
Unit or to pay the exercise price of any Warrants that are part of such Unit, in
either case by effecting a Debt Security Settlement as provided in Section 3.06,
and subject to the terms thereof, redemption payments with respect to principal
of any Debt Securities that are part of such Unit shall be applied by the Agent
in satisfaction of such Holder's obligations under such Purchase Contract on the
applicable Settlement Date or in payment of such exercise price on the
applicable exercise date.

         (d) Upon registration of transfer of a Purchase Contract of any series,
the transferee shall be bound (without the necessity of any other action on the
part of such transferee, except as may be required by the Agent pursuant to this
Article Three) under the terms of this Agreement and such Purchase Contract, and
the transferor shall be released from the obligations under the Purchase
Contract so transferred.

         (e) Each Holder of a Unit of any series, by his acceptance thereof,
authorizes the Agent to execute on his behalf any Purchase Contracts that are
part of such Unit, authorizes and directs the Agent on his behalf to take such
other action (including without limitation any actions required under Article
Five), and covenants and agrees to take such other action as may be necessary or
appropriate, or as may be required by the Agent, to effect the provisions of
this Agreement, the Units and the Purchase Contracts and appoints the Agent as
his attorney in fact for any and all such purposes.

         Section 3.06. Payment of Purchase Price. Unless otherwise specified
pursuant to Section 3.02 (in the case of a Unit of any series consisting of a
Debt Security and a Purchase Contract that obligates the Corporation to sell,
and the Holder to purchase, Purchase Contract Property) or Section 1.03 of the
Warrant Agreement (in the case of a Unit of any series consisting of a Debt
Security and a Warrant that is a "call warrant" (as defined in the Warrant
Agreement)), the Purchase Price for any Purchase Contract Property purchased by
a Holder pursuant to such Purchase Contract shall be payable at the Corporate
Trust Office of the Agent and the exercise price for any Warrant Property
purchased by a Holder pursuant to such Warrant shall be payable at the place or
places specified in or pursuant to the Warrant Agreement:

                  (i) at the option of the Holder of the Unit of which such
         Purchase Contract or Warrant is part, after receipt by the Agent, in
         the case of the Purchase Contract, of written notice from the Holder
         not less than 10 days nor more than 20 days prior to the applicable
         Settlement Date or, in the case of the Warrant, after receipt by the
         Warrant Agent of the

                                       30
<PAGE>

         written exercise notice on the exercise date indicating the Holder's
         choice of cash settlement, by delivery by such Holder not later than
         11:00 a.m., New York City time, on the Business Day immediately
         preceding the Settlement Date, in the case of the Purchase Contract, or
         on the exercise date, in the case of the Warrant, of the Purchase Price
         or exercise price, as the case may be (a "Cash Settlement"), to the
         Agent, in the case of the Purchase Contract, or the Warrant Agent, in
         the case of Warrant, in immediately available funds payable to or upon
         the order of the Corporation; or

                  (ii) by application of any payment received by the Agent
         (whether in its capacity as Agent, Collateral Agent, Trustee or Paying
         Agent) with respect to the principal of any Debt Security included in
         the Unit of which such Purchase Contract or Warrant constitutes a part,
         as provided in paragraph (f) of this Section (a "Debt Security
         Settlement").

         A Holder of such Units who fails to provide notice to the Agent or the
Warrant Agent, as the case may be, as provided above that it will make a Cash
Settlement with respect to the settlement of a Purchase Contract or Warrants, or
a Holder of such Units who provides such notice but does not effect a Cash
Settlement in accordance with the terms of this Section 3.06, will be deemed to
have elected to have the Purchase Price for the Purchase Contract Property, or
the exercise price for the Warrant, paid pursuant to a Debt Security Settlement.

         (b) Notwithstanding paragraph (a) of this Section, in the case of
Purchase Contracts of any series that obligate the Corporation to sell, and the
Holders to purchase, Purchase Contract Property or in the case of Warrants that
are "call warrants", the Corporation shall not be entitled to sell any Purchase
Contract Property or Warrant Property, or receive any payment of the Purchase
Price or exercise price therefor, if the Corporation fails to deliver such
Purchase Contract Property or Warrant Property or the cash value thereof (if
specified pursuant to Section 3.02 or the Warrant Agreement or the applicable
Warrants) against tender by the Agent of payment therefor.

         (c) Unless otherwise specified pursuant to Section 3.02, to be
effective, payment with respect to a Purchase Contract or Warrant pursuant to a
Cash Settlement must be deposited with the Agent or the Warrant Agent by 11:00
a.m., New York City time, in the case of the Purchase Contract, on the Business
Day immediately preceding the Settlement Date or, in the case of a Warrant, on
the exercise date and must be made with respect to all (and not fewer than all)
of the Purchase Contracts or Warrants to be settled on such Settlement Date or
exercise date (i) included in the Definitive Units that are registered in the
name of the Person effecting Cash Settlement in the Purchase Contract Register
or Warrant Register, as the case may be, (ii) included in the Global Units that
are beneficially owned by the Person effecting Cash Settlement as specified in
the records of the

                                       31
<PAGE>

direct and indirect participants of the Depositary or (iii) in the case of
Purchase Contracts or Warrants included in Unregistered Definitive Units, owned
by the Person effecting Cash Settlement, and, in the case of (ii) and (iii)
above, as certified in writing by such Person, which certification shall be
collected, in the case of (ii) above, on behalf of such Person by the direct
and indirect participants in the Depositary through which such Person holds
interests in the Global Units, and which will be provided to the Agent or the
Warrant Agent, in the case of (iii) above, by such Person or, in the case of
(ii) above, by the Depositary or any direct participant of such Depositary, at
the time payment pursuant to a Cash Settlement is deposited with the Agent or
the Warrant Agent. Any attempted Cash Settlement other than in accordance with
this Section 3.06 shall be deemed to have not been made and any payments made
to the Agent or the Warrant Agent by a Holder not complying with this Section
3.06 shall be returned by the Agent or the Warrant Agent to such Holder.

         (d) The Corporation shall not be obligated to deliver any Purchase
Contract Property (or the cash value thereof) with respect to a Purchase
Contract of any series that obligates the Corporation to sell, and the Holder to
purchase, Purchase Contract Property unless it shall have received payment in
full of the applicable Purchase Price for any Purchase Contract Property to be
purchased thereunder in the manner set forth herein or in any Issuer Order
relating to the issuance of the Purchase Contracts of such series. The
Corporation shall not be obligated to pay the Purchase Price or any other
Settlement Amount for any Purchase Contract Property to be purchased by the
Corporation pursuant to any Purchase Contract that obligates the Corporation to
purchase, and the Holder to sell, Purchase Contract Property unless it shall
have received such Purchase Contract Property (or the cash value thereof) or any
other Settlement Amount in the manner set forth herein or as specified pursuant
to Section 3.02.

         (e) In the case of Purchase Contracts that obligate the Corporation to
sell, and the Holders to purchase, Purchase Contract Property or Warrants that
are call warrants evidencing the Holder's right to purchase Warrant Property, in
each case consisting of securities in registered form, the Agent shall cause
such securities deliverable in respect of such Purchase Contracts or Warrants,
as the case may be, to be registered, in the case of Registered Units, in the
name of the Holder of such Units as set forth in the appropriate Securities
Register.

         (f) Unless a Holder of a Unit of any series has pre-paid his
obligations or has effected a Cash Settlement in satisfaction of his obligations
under any Purchase Contracts or Warrants constituting a part of such Unit that
obligate the Holder, or represent the Holder's right, to purchase Purchase
Contract Property or Warrant Property, respectively, any payment with respect to
principal of any Debt Security evidenced by such Unit that is received by the
Agent (whether in its capacity as Agent, Collateral Agent, Trustee or Paying
Agent) in connection with any Debt Security Settlement shall be paid by the
Agent to the Collateral Agent

                                       32
<PAGE>

for delivery to the Corporation in satisfaction of the Holder's obligations
under the Global Purchase Contract or Purchase Contracts or Global Warrant or
Warrants constituting a part of such Units. Any payment that is received by the
Agent (whether in its capacity as Agent, Collateral Agent, Trustee or Paying
Agent) with respect to interest on a Debt Security related to a Purchase
Contract or Warrant that has been settled in accordance with Section 3.06(a)(ii)
shall be distributed to the Holders of Units upon surrender of the appropriate
Unit Certificate.

         (g) Except as otherwise specified pursuant to Section 3.02, all
payments to be made by the Holders or by the Agent (whether in its capacity as
Agent, Collateral Agent, Trustee or Paying Agent) shall be made in lawful money
of the United States of America, by certified check or wire transfer in
immediately available funds in accordance with such regulations as the Agent may
reasonably establish consistent with the provisions of this Agreement.

         (h) Any payment of the applicable Purchase Price or exercise price
deposited by a Holder hereunder with respect to a Purchase Contract or Warrant
shall be held by the Agent or Warrant Agent, as the case may be, in custody for
the benefit of the Holder and applied in satisfaction of such Holder's
obligations under such Purchase Contract or Warrant, or released and delivered
to the Holder upon the failure of the Corporation to satisfy its settlement
obligations against tender by the Agent or Warrant Agent, as the case may be, of
such payment of the applicable Purchase Price or the exercise price.

         Section 3.07. Delivery of Purchase Contract Property or Other Amounts.
Unless otherwise specified pursuant to Section 3.02, (i) in the case of
Purchase Contracts obligating the Corporation to sell, and the Holders to
purchase, Purchase Contract Property or Warrants that are call warrants, upon
its receipt of payment in full of the Purchase Price or exercise price for the
Purchase Contract Property or Warrant Property purchased by any Holder pursuant
to the foregoing provisions of this Article or the Warrant Agreement, the
Corporation shall cause such Purchase Contract Property or Warrant Property to
be delivered to the Holders; and (ii) in the case of Purchase Contracts
obligating the Corporation to purchase, and the Holders to sell, Purchase
Contract Property or Warrants that are "put warrants" (as defined in the
Warrant Agreement), upon its receipt of the Purchase Contract Property, Warrant
Property, Settlement Amount or other amount, the Corporation shall cause the
Purchase Price, exercise price, Settlement Amount or other amount, as
applicable, to be delivered to the Holders, provided that in each case such
delivery shall be made only upon delivery to the Agent of the related Unit
Certificate.

         Upon receipt of any Unit Certificate, the Agent shall cancel such Unit
Certificate in accordance with Section 2.11 as a result of the delivery referred
to in the preceding paragraph. If any Debt Securities relating to Closed
Purchase

                                       33
<PAGE>

Contracts or exercised Warrants constituting a part of Units evidenced by such
Unit Certificate remain Outstanding as a result of Cash Settlement, the
Corporation shall execute and the Trustee shall authenticate and deliver (i) in
the case of Definitive Units, to the Holder thereof, in accordance with the
terms of the Indenture, a new certificate or certificates representing solely
the principal amount of Debt Securities still Outstanding (ii) in the case of
Global Units, if a Global Debt Security not constituting part of a Global Unit
has not previously been issued by the Corporation, a second Global Debt Security
representing Debt Securities still Outstanding that are not part of Units. If a
second Global Debt Security referred to in clause (ii) of the immediately
preceding sentence has already been issued, the Agent shall note thereon an
appropriate increase in the number of Debt Securities represented by such Global
Debt Security.

         Section 3.08. Charges and Taxes. The Corporation shall not be required
to pay any tax or taxes that may be payable with respect to any exchange of or
substitution for a Unit Certificate or Security and the Corporation shall not be
required to issue or deliver such Unit Certificate or such Security unless or
until the Person or Persons requesting the transfer or issuance thereof shall
have paid to the Corporation the amount of such tax or shall have established to
the satisfaction of the Corporation that such tax has been paid. The Agent shall
be under no obligation to pay any such tax.

                                   Article 4
                                   REMEDIES

         Section 4.01. Acceleration of Obligations. If at any time there shall
have occurred an Event of Default with respect to any Debt Securities
constituting a part of any Units that has resulted in the principal of any Debt
Securities being declared due and payable immediately pursuant to Section 5.1
of the Indenture, then the Holders of not less than 25% of all Unsettled
Purchase Contracts constituting a part of any Units comprising Debt Securities
subject to such declaration may on behalf of all Holders of such Unsettled
Purchase Contracts by notice in writing to the Corporation and Agent declare
the obligations of such Holders to purchase or sell, as the case may be, and of
the Corporation to sell or purchase, as the case may be, the quantity of
Purchase Contract Property specified pursuant to Section 3.02 under each such
Unsettled Purchase Contract to be accelerated to the date of such declaration
and, upon any such declaration, such obligations shall be so accelerated. The
foregoing provision is subject to the condition that if, at any time prior to
settlement of such Purchase Contracts, the declaration with respect to Debt
Securities referred to in the immediately preceding sentence and its
consequences are rescinded and annulled in accordance with Section 5.1 of the
Indenture, the acceleration of the obligations with respect to Unsettled
Purchase Contracts referred to in the immediately preceding sentence

                                       34
<PAGE>

and its consequences may be annulled and rescinded by vote of the Holders of
not less than 25% of all affected Unsettled Purchase Contracts Outstanding.

         Section 4.02. Unconditional Rights Under Purchase Contracts;
Limitation on Proceedings by Holders. (a) The Holder of any Unit shall have the
right, which is absolute and unconditional, to purchase or sell, as the case
may be, Purchase Contract Property pursuant to such Purchase Contract and to
institute suit for the enforcement of such right, and such right shall not be
impaired without the consent of such Holder.

         (b) No Holder of any Unit shall have any right by virtue of or by
availing itself of any provision of this Agreement to institute any action or
proceeding at law or in equity or in bankruptcy or otherwise upon or under or
with respect to this Agreement, or for the appointment of a trustee, receiver,
liquidator, custodian or other similar official or for any other remedy
hereunder, unless such Holder previously shall have given written notice to the
Agent and the Corporation of a Default and of the continuance thereof and, (i)
in the case of an Event of Default under Debt Securities, Prepaid Purchase
Contracts Issued under the Indenture or the Indenture, the procedures
(including notice to the Trustee and the Corporation) described in Article Five
of the Indenture have been complied with and (i) in the case of a Purchase
Contract Default specified in clause (ii) of the definition thereof, unless the
Holders of not less than 25% of all affected Purchase Contracts comprised by
all Units then Outstanding shall have made written request upon the Agent to
institute such action or proceedings in its own name as Agent hereunder and
shall have offered to the Agent such reasonable indemnity as it may require
pursuant to Article Six, and the Agent for 60 days after its receipt of such
notice, request and offer of indemnity shall have failed to institute such
action or proceedings and no direction inconsistent with such request shall
have been given to the Agent in writing by holders of a majority of all
affected Purchase Contracts constituting parts of Units then Outstanding. Any
Holder of a Unit may then (but only then) seek to enforce the performance of
the covenant or agreement with respect to which such Purchase Contract Default
exists; it being intended and expressly covenanted by the Holder of each Unit
with every other Holder and the Agent that no Holder shall have any right by
virtue of or by availing itself of any provision of this Agreement to affect,
disturb or prejudice the rights of any other Holder, or to obtain or seek to
obtain priority over or preference to any other Holder, or to enforce any right
under this Agreement, except in accordance with this Section or the Indenture
and for the equal, ratable and common benefit of all Holders. For the
protection and enforcement of the provisions of this Section, each and every
Holder of a Unit and the Agent shall be entitled to such relief as can be given
either at law or in equity.

         Section 4.03. Restoration of Rights and Remedies. If any Holder of
Units has instituted any proceeding to enforce any right or remedy under this

                                       35
<PAGE>

Agreement and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to such Holder, then and in every such case,
subject to any determination in such proceeding the Corporation, the Agent, the
Trustee and such Holder shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies the
Corporation, the Agent, the Trustee and such Holder shall continue as though no
such proceeding had been instituted.

         Section 4.04. Rights and Remedies Cumulative. Subject to Section 4.02,
and except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Unit Certificates, no right or remedy
herein conferred upon or reserved to the Holders of Units is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

         Section 4.05. Delay or Omission Not Waiver. No delay or omission of any
Holder to exercise any right or remedy accruing upon any Default shall impair
any such right or remedy or constitute a waiver of any such Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Holders.

         Section 4.06. Waiver of Past Defaults. The Holders of not less than a
majority of all affected Purchase Contracts at the time Outstanding may on
behalf of the Holders of all affected Units waive any past Purchase Contract
Default hereunder and its consequences, except, unless theretofore cured (i) a
Purchase Contract Default resulting from the failure of the Corporation to
deliver (A) in the case of Purchase Contracts obligating the Corporation to
sell, and the Holders to purchase, Purchase Contract Property (or the cash value
specified pursuant to Section 3.02), Purchase Contract Property (or the cash
value thereof) against tender of payment therefor or (B) in the case of Purchase
Contracts obligating the Corporation to purchase, and the Holders to sell,
Purchase Contract Property (or the cash value specified pursuant to Section
3.02), the applicable Purchase Price or other Settlement Amount specified
pursuant to Section 3.02 against tender of Purchase Contract Property or other
amount specified pursuant to Section 3.02 therefor or (ii) a Purchase Contract
Default with respect to a covenant or provision hereof which under Article Seven
cannot be modified or amended without approval of the Holder of each affected
Purchase Contract that is a part of an Outstanding Unit of any series. In the
case of any such waiver, the Holders, the Agent and the Corporation shall be
restored to their former positions and rights hereunder, respectively.

                                       36
<PAGE>

         Upon any such waiver, such Purchase Contract Default shall cease to
exist, for every purpose of this Agreement, but no such waiver shall extend to
any subsequent or other Purchase Contract Default or impair any right consequent
thereon unless so expressly therein provided.

         Section 4.07. Undertaking for Costs. All parties to this Agreement
agree, and each Holder of any Unit by his acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Agreement, or in any suit against
the Agent for any action taken, suffered or omitted by it as Agent, the filing
by any party litigant in such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; provided that the provisions of this Section shall not
apply to any suit instituted by the Agent, to any suit instituted by any Holder
of Units, or group of Holders, holding in the aggregate more than 10% of the
Outstanding Units, or to any suit instituted by any Holder for enforcement of
the right to purchase or sell Purchase Contract Property under the Purchase
Contracts constituting a part of the Units held by such Holder or to receive
payment of the applicable Purchase Price (or other Settlement Amount that may be
specified pursuant to Section 3.02) with respect thereto.

         Section 4.08. Waiver of Stay or Extension Laws. The Corporation
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law wherever enacted, now or at
any time hereafter in force, that may affect the covenants or the performance of
this Agreement; and the Corporation (to the extent that it may lawfully do so)
each hereby expressly waives all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Agent, or the Holders, but will suffer and permit the
execution of every such power as though no such law had been enacted.

         Section 4.09. Agent May File Proofs of Claims. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy or other judicial
proceeding relating to the Corporation or the property of the Corporation or its
creditors, the Agent shall be entitled and empowered, by intervention in such
proceeding or otherwise,

                  (i) to file and prove a claim and to file such other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Agent (including any claim for the reasonable compensation,
         expenses, disbursements and advances of the Agent, its agents and
         counsel) and of the Holders allowed in such judicial proceeding; and

                                       37
<PAGE>

                  (ii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, liquidator or other similar official in any
such proceeding is hereby authorized by each Holder to make such payments to the
Agent, and in the event that the Agent shall consent to the making of such
payments directly to the Holders, to pay to the Agent any amount due to it
hereunder; provided, however, that nothing herein shall be deemed to authorize
the Agent to authorize or consent to or vote for or accept or adopt on behalf of
any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Units or the rights of any Holder thereof, or to authorize the
Agent to vote in respect of the claim of any Holder of Units in any such
proceeding.

         Section 4.10. Suits for Enforcement. In case a Purchase Contract
Default has occurred, has not been waived and is continuing, and subject to
receipt by the Agent of the request referred to in Section 4.02 or the direction
referred to in Section 4.11 and the security or indemnity referred to in Section
6.03(f), the Agent shall have the right to enforce, on behalf of the Holders,
the Purchase Contracts and the covenants and agreements of the Corporation
contained in the Purchase Contracts and in this Agreement with respect to the
Purchase Contracts and to proceed to protect and enforce such rights by
appropriate judicial proceedings to protect and enforce any of such rights,
either at law or in equity or in bankruptcy or otherwise, whether for the
specific enforcement of any such covenant or agreement contained in this
Agreement or in the Purchase Contracts or in aid of the exercise of any power
granted in this Agreement or to enforce any other legal or equitable right
vested in the Agent by this Agreement or by law.

         All rights of action and of asserting claims under this Agreement, or
under the Units or any Securities comprised by the Units, may be enforced by the
Agent without the possession of the Units or any of the Securities comprised by
the Units or the production thereof on any trial or other proceedings relative
thereto, and any such actions or proceedings instituted by the Agent shall be
brought in its own name as agent and any recovery of judgment, subject to the
payment of the expenses, disbursements and compensation of the Agent, each
predecessor Agent and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Units or Securities in respect of which
such action was taken.

         Section 4.11. Control by Holders. The Holders of a majority of affected
Outstanding Purchase Contracts constituting a part of any Outstanding Units
shall have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Agent, or exercising any power
conferred on the Agent with respect to such Purchase Contracts by this
Agreement; provided that such direction shall not be otherwise than in
accordance with law and the provisions of this Agreement and provided further
that (subject to the provisions of Section 6.01) the Agent shall have the right
to decline to follow any such

                                       38
<PAGE>

direction if the Agent, being advised by counsel, shall determine that the
action or proceeding so directed may not lawfully be taken or if the Agent in
good faith by its board of directors or board of trustees or a committee of its
Responsible Officers, shall determine that the action or proceedings so directed
could involve the Agent in personal liability or if the Agent in good faith
shall so determine that the actions or forebearances specified in or pursuant to
such direction would be unduly prejudicial to the interests of Holders of Units
not joining in the giving of said direction, it being understood that (subject
to Section 6.01) the Agent shall have no duty to ascertain whether or not such
actions or forebearances are unduly prejudicial to such Holders.

         Nothing in this Agreement shall impair the right of the Agent in its
discretion (but subject to Section 4.10) to take any action deemed proper by the
Agent and which is not inconsistent with such direction or directions by
Holders.

                                   Article 5
                     SECURITY INTERESTS AND COLLATERAL AGENT

         Section 5.01. Granting of Security Interests; Rights and Remedies of
Collateral Agent; Perfection. In order to secure the observance and performance
of the covenants and agreements of the Holders of Purchase Contracts contained
herein and in such Purchase Contracts, unless otherwise specified pursuant to
Section 2.03:

         (a) Effective upon issuance of Units of any series consisting of Debt
Securities and Purchase Contracts, and in order to secure the performance when
due by the Holders thereof of their respective obligations hereunder and under
the Purchase Contracts constituting a part of such Units, the Holders thereof
acting through the Agent, as their attorney-in-fact, shall be deemed to assign
and pledge unto the Collateral Agent, as agent of and for the benefit of the
Corporation, and grant to the Collateral Agent, as agent of and for the benefit
of the Corporation, a security interest in and to, and a lien upon (the
"Pledge"), all of their right, title and interest in and to (i) the Pledged
Items now or hereafter owned by such Holder; (ii) all additions to and
substitutions for such Pledged Items as may be permissible, if so specified
pursuant to Section 3.02; (iii) all income, proceeds and collections received
or to be received, or derived or to be derived, now or any time hereafter from
or in connection with (i) and (ii) above, and (iv) all powers and rights now
owned or hereafter acquired under or with respect to the Pledged Items (such
Pledged Items, additions, substitutions, proceeds, collections, powers and
rights being herein collectively called the "Collateral"). The Pledge is
granted as security only and shall not subject the Collateral Agent or the
Corporation to, or transfer or in any way modify, any obligation or liability
of any Holder with respect to any Pledged Item.

                                       39
<PAGE>

         (b) Prior to or concurrently with the issuance of Global Units of any
series of which Debt Securities and Purchase Contracts constitute a part, the
initial Holders and the Agent shall cause the Debt Securities constituting a
part of such Global Units to be delivered to the Collateral Agent, and
accompanied by an instrument of transfer executed in blank.

         (c) The Collateral Agent shall have all of the rights, remedies and
recourse with respect to the Collateral afforded a secured party by the Uniform
Commercial Code as in effect in the State of New York (whether or not said Code
is in effect in the jurisdiction where the rights and remedies are asserted), in
addition to, and not in limitation of, the other rights, remedies and recourse
(including rights of set off) afforded to the Collateral Agent by this
Agreement.

         (d) Each Holder, to the extent permitted by applicable law, by
accepting Units of any series issued hereunder authorizes the Collateral Agent
to file Uniform Commercial Code financing or continuation statements naming such
Holder as "debtor" (which may be carbon, photographic, photostatic or other
reproductions of this Agreement or of a financing statement relating to this
Agreement) which the Collateral Agent in its sole discretion (but subject to
Section 5.03(f)) may deem necessary or appropriate to further perfect, or
maintain the perfection of the security interests granted hereby.

         Section 5.02. Distribution of Principal and Interest; Release of
Collateral. Unless otherwise specified pursuant to Section 2.03:

         (a) All payments of principal of, or interest on, any Pledged Items
received by the Collateral Agent pursuant to Section 3.06(f) shall be paid by
the Collateral Agent in same day funds no later than 2:00 p.m., New York City
time, on the Business Day such payments are received by the Collateral Agent or,
if received on a day that is not a Business Day or after 12:00 noon, New York
City time, on a Business Day, then such payment shall be made no later than 9:00
a.m., New York City time, on the next succeeding Business Day to the
Corporation, in full satisfaction of the respective obligations of the Holders
of the Units of which such Pledged Items are a part under the Purchase Contracts
forming a part of such Units. Any such payments in excess of such obligations of
the Holders shall be promptly paid to the Agent to the account designated by it
for such purpose. All such payments received by the Agent as provided herein
shall be applied by the Agent pursuant to the provisions hereof.

         (b) Upon notice to the Collateral Agent by the Agent that one or more
Holders of Units have elected to effect Cash Settlement of their respective
obligations under the Purchase Contracts forming a part of such Units in
accordance with the terms hereof, and that either the Agent has received from
such Holders, and paid to the Corporation, the related amounts pursuant to the
terms of the Purchase Contracts and this Agreement or no such payment is

                                       40
<PAGE>

required, and that all other conditions to such Cash Settlement have been
satisfied, then the Collateral Agent shall release from the Pledge the Pledged
Items relating to such Purchase Contracts.

         Section 5.03. Certain Duties and Responsibilities of the Collateral
Agent. The Collateral Agent accepts its duties and responsibilities hereunder as
agent for the Corporation, on and subject to the following terms and conditions:

         (a) The Collateral Agent undertakes to perform such duties and only
such duties as are specifically set forth in this Agreement. No provision of
this Agreement shall be construed to relieve the Collateral Agent from liability
for its own negligent action, its own negligent failure to act, or its own
wilful misconduct, except that

                  (i) the duties and obligations of the Collateral Agent with
         respect to the Units shall be determined solely by the express
         provisions of this Agreement and the Collateral Agent shall not be
         liable except for the performance of such duties and obligations as are
         specifically set forth in this Agreement, and no implied covenants or
         obligations shall be read into this Agreement against the Collateral
         Agent; and

                  (ii) in the absence of bad faith on its part, the Collateral
         Agent may conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon any statements,
         certificates or opinions furnished to the Collateral Agent and
         conforming to the requirements of this Agreement, but in the case of
         any such statements, certificates or opinions that by any provision
         hereof are specifically required to be furnished to the Collateral
         Agent, the Collateral Agent shall be under a duty to examine the same
         to determine whether or not they conform to the requirements of this
         Agreement.

         (b) The Collateral Agent shall not be liable for any error of judgment
made in good faith by a Responsible Officer of the Collateral Agent, unless it
shall be proved that the Collateral Agent was negligent in ascertaining the
pertinent facts.

         (c) No provision of this Agreement shall require the Collateral Agent
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

         (d) Whether or not therein expressly so provided, every provision of
this Agreement relating to the conduct or affecting the liability of or
affording

                                       41
<PAGE>

protection to the Collateral Agent shall be subject to the provisions of this
Section.

         (e) The Collateral Agent is acting solely as agent for the Corporation
hereunder and owes no fiduciary duties to any Person by virtue of this
Agreement.

         (f) Except as specifically provided herein, the Collateral Agent shall
not be responsible for the validity, sufficiency, collectibility or
marketability of any Collateral given to or held by it hereunder or for the
validity or sufficiency of the lien on the Collateral purported to be created
hereby and shall have no obligation to file any financing or continuation
statement with respect to the Collateral in any public office at any time or
time.

         Section 5.04. Knowledge of the Collateral Agent. The Collateral Agent
shall not be deemed to have knowledge of any default by any person under any
Purchase Contract, unless and until a Responsible Officer of the Collateral
Agent assigned to its Corporate Trustee Administration Department shall have
actual knowledge thereof or shall have received written notice thereof from the
Corporation or any Holder.

         Section 5.05. Certain Rights of Collateral Agent. Subject to the
provisions of Section 5.03:

         (a) the Collateral Agent may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon, security or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties;

         (b) any request, direction, order or demand of the Corporation
mentioned herein shall be sufficiently evidenced by an Officer's Certificate,
Issuer Order or Issuer Request, and any resolution of the Board of Directors of
the Corporation, as the case may be, may be sufficiently evidenced by a Board
Resolution;

         (c) the Collateral Agent may consult with counsel and the written
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection with respect to any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon in accordance with
such advice or Opinion of Counsel;

         (d) the Collateral Agent shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval,
appraisal, bond, debenture, note, coupon, security or other paper or document;

                                       42
<PAGE>

         (e) the Collateral Agent may execute any of the powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Collateral Agent shall not be responsible for any misconduct
or negligence on the part of any such agent or attorney appointed with due care
by it hereunder; and

         (f) the Collateral Agent shall not be liable for any action taken or
omitted by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Agreement.

         Section 5.06. Compensation and Reimbursements. The Corporation agrees:

         (a) to pay to the Collateral Agent from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall
not be limited by any provision of law with regard to the compensation of a
trustee of an express trust),

         (b) except as otherwise expressly provided herein, to reimburse the
Collateral Agent and any predecessor Collateral Agent upon its request for all
reasonable expenses, disbursements and advances incurred or made by the
Collateral Agent in accordance with any provision of this Agreement (including
the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and

         (c) to indemnify the Collateral Agent and any predecessor Collateral
Agent for, and to hold it harmless against, any loss, liability or expense
incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of this Agreement and its
duties hereunder, including the costs and expenses of defending itself against
or investigating any claim of liability in connection with the exercise or
performance of any of its powers or duties hereunder.

         The obligations of the Corporation under this Section to compensate and
indemnify the Collateral Agent and any predecessor Collateral Agent and to pay
or reimburse the Collateral Agent and any predecessor Collateral Agent for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder and shall survive the resignation or removal of such Collateral Agent
or predecessor Collateral Agent or the termination hereof or of any Purchase
Contract. Such additional indebtedness shall be a senior claim to that of the
Units upon all property and funds held or collected by the Collateral Agent as
such, except funds held in trust for the benefit of the Holders of Units, and
the Units are hereby subordinated to such senior claim.

                                       43
<PAGE>

         Section 5.07. Corporate Collateral Agent Required Eligibility. There
shall at all times be a Collateral Agent hereunder which shall be a corporation
organized and doing business under the laws of the United States of America, any
State thereof or the District of Columbia, having, together with its parent, a
combined capital and surplus of at least $50,000,000, subject to supervision or
examination by Federal, State or District of Columbia authority and willing to
act on reasonable terms. If such corporation, or its parent, publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such corporation shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. The Collateral Agent hereunder shall at all times be the
Agent hereunder, the Trustee and a Paying Agent under the Indenture and the
Warrant Agent under the Warrant Agreement, subject to receipt of an Opinion of
Counsel that the same Person is not precluded by law from acting in such
capacities. If at any time the Collateral Agent shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article. The
Collateral Agent may appoint one or more sub collateral agents with offices or
agencies in a city or cities outside the United States.

         Section 5.08. Resignation and Removal; Appointment of Successor. (a)
No resignation or removal of the Collateral Agent and no appointment of a
successor Collateral Agent pursuant to this Article shall become effective
until the acceptance of appointment by the successor Collateral Agent in
accordance with the applicable requirements of Section 5.09.

         (b) The Collateral Agent may resign by giving written notice thereof to
the Corporation and the Holders, in accordance with Section 11.05 and Section
11.06, 60 days prior to the effective date of such resignation. The Collateral
Agent may be removed at any time upon 60 days' notice by the filing with it of
an instrument in writing signed on behalf of the Corporation and specifying such
removal and the date when it is intended to become effective. If the instrument
of acceptance by a successor Collateral Agent required by Section 5.09 shall not
have been delivered to the Collateral Agent within 30 days after the giving of
such notice of resignation, the resigning Collateral Agent may petition any
court of competent jurisdiction for the appointment of a successor Collateral
Agent.

         (c) If at any time

                  (i) the Collateral Agent shall cease to be eligible under
         Section 5.07, or shall cease to be eligible as Agent hereunder, as
         Trustee under the Indenture or as Warrant Agent under the Warrant
         Agreement, and shall fail to resign after written request therefor by
         the Corporation, or

                                       44
<PAGE>

                  (ii) the Collateral Agent shall become incapable of acting
         with respect to the Collateral or shall be adjudged a bankrupt or
         insolvent, or a receiver or liquidator of the Collateral Agent or of
         its property shall be appointed or any public officer shall take charge
         or control of the Collateral Agent or of its property or affairs for
         the purpose of rehabilitation, conservation or liquidation,

then, in any such case, the Corporation, by Board Resolution or Officer's
Certificate, may remove the Collateral Agent and appoint a successor Collateral
Agent.

         (d) If the Collateral Agent shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of Collateral
Agent for any cause, the Corporation, by Board Resolution or Officer's
Certificate, shall promptly appoint a successor Collateral Agent or Collateral
Agents (other than the Corporation) and shall comply with the applicable
requirements of Section 5.09.

         (e) The Corporation shall give, or shall cause such successor
Collateral Agent to give, notice of each resignation and each removal of the
Collateral Agent and each appointment of a successor Collateral Agent to all
Holders of Units in accordance with Section 11.06. Each notice shall include the
name of the successor Collateral Agent and the address of its Corporate Trust
Office.

         Section 5.09. Acceptance of Appointment by Successor. (a) In case of
the appointment hereunder of a successor Collateral Agent, every such successor
Collateral Agent so appointed shall execute, acknowledge and deliver to the
Corporation and to the retiring Collateral Agent an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring
Collateral Agent shall become effective and such successor Collateral Agent,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, agencies and duties of the retiring Collateral Agent, with like
effect as if originally named as Collateral Agent hereunder; but, on the
request of the Corporation or the successor Collateral Agent, such retiring
Collateral Agent shall, upon payment of all amounts due and payable to it
pursuant to Section 5.06, execute and deliver an instrument transferring to
such successor Collateral Agent all the rights and powers of the retiring
Collateral Agent and shall duly assign, transfer and deliver to such successor
Collateral Agent all property and money held by such retiring Collateral Agent
hereunder. Any retiring Collateral Agent shall, nonetheless, retain a prior
claim upon all property or funds held or collected by such Collateral Agent to
secure any amounts then due it pursuant to Section 5.06.

         (b) Upon request of any such successor Collateral Agent, the
Corporation shall execute any and all instruments for more fully and certainly

                                       45
<PAGE>

vesting in and confirming to such successor Collateral Agent all such rights,
powers and agencies referred to in paragraph (a) of this Section.

         (c) No successor Collateral Agent shall accept its appointment unless
at the time of such acceptance such successor Collateral Agent shall be eligible
under this Article.

         (d) Upon acceptance of appointment by any successor Collateral Agent as
provided in this Section, the Corporation shall give notice thereof to the
Holders of Units in accordance with Section 11.06. If the acceptance of
appointment is substantially contemporaneous with the resignation of the
Collateral Agent, then the notice called for by the preceding sentence may be
combined with the notice called for by Section 5.08. If the Corporation fails to
give such notice within ten days after acceptance of appointment by the
successor Collateral Agent, the successor Collateral Agent shall cause such
notice to be given at the expense of the Corporation.

         Section 5.10. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Collateral Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Collateral Agent shall
be a party, or any corporation succeeding to all or substantially all the agency
business of the Collateral Agent, shall be the successor of the Collateral Agent
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, provided that such corporation shall be
otherwise eligible under this Article.

         Section 5.11. Money Held in Trust. Money held by the Collateral Agent
in trust hereunder need not be segregated from other funds held by the
Collateral Agent, except to the extent required by law. The Collateral Agent
shall be under no obligation to invest or pay interest on any money received by
it hereunder, except as otherwise agreed with the Corporation. Any interest
accrued on funds deposited with the Collateral Agent or any Paying Agent under
this Agreement shall be paid to the Corporation from time to time and the
Holders of Units (whether or not any Purchase Contracts are to be redeemed with
such funds) shall have no claim to any such interest.

                                   Article 6
                                   THE AGENT

         Section 6.01. Certain Duties and Responsibilities. (a) The Agent
undertakes to perform such duties and only such duties as are specifically set
forth in this Agreement.

                                       46
<PAGE>

         (b) No provision of this Agreement shall be construed to relieve the
Agent from liability for its own negligent action, its own negligent failure to
act, or its own wilful misconduct, except that

                  (i) the duties and obligations of the Agent with respect to
         the Units shall be determined solely by the express provisions of this
         Agreement and the Agent shall not be liable except for the performance
         of such duties and obligations as are specifically set forth in this
         Agreement, and no implied covenants or obligations shall be read into
         this Agreement against the Agent; and

                  (ii) in the absence of bad faith on its part, the Agent may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon any statements,
         certificates or opinions furnished to the Agent and conforming to the
         requirements of this Agreement, but in the case of any such statements,
         certificates or opinions that by any provision hereof are specifically
         required to be furnished to the Agent, the Agent shall be under a duty
         to examine the same to determine whether or not they conform to the
         requirements of this Agreement.

         (c) The Agent shall not be liable for any error of judgment made in
good faith by a Responsible Officer of the Agent, unless it shall be proved that
the Agent was negligent in ascertaining the pertinent facts.

         (d) The Agent shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of a majority in number of affected Outstanding Purchase Contracts
relating to the time, method and place of conducting any proceeding for any
remedy available to the Agent, or exercising any power conferred upon the Agent,
under this Agreement.

         (e) No provision of this Agreement shall require the Agent to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

         (f) Whether or not therein expressly so provided, every provision of
this Agreement relating to the conduct or affecting the liability of or
affording protection to the Agent shall be subject to the provisions of this
Section.

         (g) The Agent is acting solely as agent for the Corporation hereunder
and owes no fiduciary duties to any person by virtue of this Agreement.

                                       47
<PAGE>

         Section 6.02. Notice of Default. Within 90 days after the occurrence of
any Purchase Contract Default of which a Responsible Officer of the Agent
assigned to its Corporate Trustee Administration Department has actual knowledge
(and except with respect to a Purchase Contract Default under the Purchase
Contracts existing on the Settlement Date, in which event, as promptly as
practicable thereafter) the Agent shall provide to all Holders of Units, in the
manner provided in Section 11.06, notice of such Purchase Contract Default
hereunder, unless such Purchase Contract Default shall have been cured or
waived.

         Section 6.03. Certain Rights of Agent. Subject to the provisions of
Section 6.01:

         (a) the Agent may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note,
coupon, security or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

         (b) any request, direction, order or demand of the Corporation
mentioned herein shall be sufficiently evidenced by an Officer's Certificate or
Issuer Order or Issuer Request and any resolution of the Board of Directors of
the Corporation, as the case may be, may be sufficiently evidenced by a Board
Resolution;

         (c) the Agent may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection with respect to any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon in accordance with such advice or Opinion
of Counsel;

         (d) the Agent shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, appraisal, bond,
debenture, note, coupon, security or other paper or document, but the Agent, in
its discretion, may make reasonable further inquiry or investigation into such
facts or matters related to the issuance of the Debt Securities, Prepaid
Purchase Contracts Issued under the Indenture or Warrants, as the case may be,
and the execution, delivery and performance of the Purchase Contracts as it may
see fit, and, if the Agent shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Corporation, at reasonable times during normal business hours, personally
or by agent or attorney;

         (e) the Agent may execute any of the powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys and the
Agent

                                       48
<PAGE>

shall not be responsible for any misconduct or negligence on the part of any
such agent or attorney appointed with due care by it hereunder;

         (f) the Agent shall be under no obligation to exercise any of the
rights or powers vested in it by this Agreement at the request, order or
direction of any of the Holders pursuant to this Agreement, unless such Holders
shall have offered to the Agent reasonable security or indemnity against the
costs, expenses and liabilities that might be incurred by it in compliance with
such request or direction;

         (g) the Agent shall not be liable for any action taken or omitted by it
in good faith and believed by it to be authorized or within the discretion,
rights or powers conferred upon it by this Agreement; and

         (h) the Agent shall not be charged with notice or knowledge of a
Purchase Contract Default unless a Responsible Officer of the Agent assigned to
its Corporate Trustee Administration Department shall have actual knowledge
thereof.

         Section 6.04. Not Responsible for Recitals or Issuance of Units. The
recitals contained herein, in the Indenture, in the Warrant Agreement and in the
Units, except the Trustee's, Warrant Agent's and Agent's certificates of
authentication or countersignature, shall be taken as the statements of the
Corporation, and none of the Trustee, Agent, the Warrant Agent or any
Authenticating Agent assumes any responsibility for their correctness. The Agent
makes no representations as to the validity or sufficiency of this Agreement or
of the Units. None of the Trustee, Agent, the Warrant Agent or any
Authenticating Agent shall be accountable for the use or application by the
Corporation of the proceeds with respect to Units or be responsible for
exercising any remedy hereunder on behalf of the Holders, except as expressly
provided in this Agreement.

         Section 6.05. May Hold Units. The Agent, the Collateral Agent, the
Trustee, the Warrant Agent, any Authenticating Agent, any Purchase Contract
Registrar or any other agent of the Corporation, the Trustee, the Warrant Agent,
or the Agent, in its individual or any other capacity, may become the owner or
pledgee of Units and may otherwise deal with the Corporation and receive,
collect, hold and retain collections from the Corporation with the same rights
it would have if it were not Authenticating Agent, Purchase Contract Registrar
or such other agent, the Trustee, the Warrant Agent, the Collateral Agent or the
Agent.

         Section 6.06. Money Held in Trust. Money held by the Agent in trust
hereunder need not be segregated from other funds held by the Agent, except to
the extent required by law. The Agent shall be under no obligation to invest or

                                       49
<PAGE>

pay interest on any money received by it hereunder, except as otherwise agreed
with the Corporation. Any interest accrued on funds deposited with the Agent or
any Paying Agent under this Agreement shall be paid to the Corporation from time
to time and the Holders of Units (whether or not any Purchase Contracts are to
be redeemed with such funds) shall have no claim to any such interest.

         Section 6.07. Compensation and Reimbursement. The Corporation agrees:

         (a) to pay to the Agent from time to time reasonable compensation for
all services rendered by it hereunder (which compensation shall not be limited
by any provision of law with regard to the compensation of a trustee of an
express trust);

         (b) except as otherwise expressly provided herein, to reimburse the
Agent and any predecessor Agent upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Agent in accordance with any
provision of this Agreement (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or bad faith;
and

         (c) to indemnify the Agent and any predecessor Agent for, and to hold
it harmless against, any loss, liability or expense incurred without negligence
or bad faith on its part, arising out of or in connection with the acceptance or
administration of this Agreement and its duties hereunder, including the costs
and expenses of defending itself against or investigating any claim of liability
in connection with the exercise or performance of any of its powers or duties
hereunder.

         The obligations of the Corporation under this Section to compensate and
indemnify the Agent and any predecessor Agent and to pay or reimburse the Agent
and any predecessor Agent for expenses, disbursements and advances shall
constitute additional indebtedness hereunder and shall survive the resignation
or removal of such Agent or predecessor Agent or the termination hereof or any
Purchase Contract. Such additional indebtedness shall be a senior claim to that
of the Units upon all property and funds held or collected by the Agent as such,
except funds held in trust for the benefit of the Holders of particular Units,
and the Units are hereby subordinated to such senior claim.

         Section 6.08. Corporate Agent Required: Eligibility. There shall at all
times be an Agent hereunder which shall be a corporation organized and doing
business under the laws of the United States of America, any State thereof or
the District of Columbia, having, together with its parent, a combined capital
and surplus of at least $50,000,000, subject to supervision or examination by
Federal, State or District of Columbia authority and willing to act on
reasonable terms. If

                                       50
<PAGE>

such corporation, or its parent, publishes reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. The
Agent hereunder shall at all times be the Collateral Agent hereunder, the
Trustee under the Indenture and the Warrant Agent under the Warrant Agreement,
subject to receipt of an Opinion of Counsel that the same Person is precluded by
law from acting in such capacities. If at any time the Agent shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article. The Agent may appoint one or more sub-agents with offices or agencies
in a city or cities outside the United States.

         Section 6.09. Resignation and Removal: Appointment of Successor. (a)
No resignation or removal of the Agent and no appointment of a successor Agent
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Agent in accordance with the applicable
requirements of Section 6.10.

         (b) The Agent may resign by giving written notice thereof to the
Corporation and the Holders, in accordance with Section 11.05 and Section 11.06,
60 days prior to the effective date of such resignation. The Agent may be
removed at any time upon 60 days' notice by the filing with it of an instrument
in writing signed on behalf of the Corporation and specifying such removal and
the date when it is intended to become effective. If the instrument of
acceptance by a successor Agent required by Section 6.10 shall not have been
delivered to the Agent within 30 days after the giving of such notice of
resignation, the resigning Agent may petition any court of competent
jurisdiction for the appointment of a successor Agent.

         (c) If at any time

                  (i) the Agent shall cease to be eligible under Section 6.08,
         or shall cease to be eligible as Collateral Agent hereunder, Trustee
         under the Indenture or as Warrant Agent under the Warrant Agreement,
         and shall fail to resign after written request therefor by the
         Corporation or by any Holder, or

                  (ii) the Agent shall become incapable of acting with respect
         to the Units or shall be adjudged a bankrupt or insolvent, or a
         receiver or liquidator of the Agent or of its property shall be
         appointed or any public officer shall take charge or control of the
         Agent or of its property or affairs for the purpose of rehabilitation,
         conservation or liquidation,

                                       51
<PAGE>

then, in any such case, (A) the Corporation, by Board Resolution or Officer's
Certificate, may remove the Agent and appoint a successor Agent, or (B) any
Holder who has been a bona fide Holder of a Unit for at least six months may,
on behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Agent and the appointment of a
successor Agent or Agents. Such court may thereupon, after such notice, if any,
as it may deem proper and prescribe, remove the Agent and appoint a successor
Agent.

         (d) If the Agent shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Agent for any cause, the
Corporation, by Board Resolution, shall promptly appoint a successor Agent or
Agents (other than the Corporation) and shall comply with the applicable
requirements of Section 6.10. If no successor Agent shall have been so appointed
by the Corporation and accepted appointment in the manner required by Section
6.10, any Holder who has been a bona fide Holder of a Unit for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the appointment of a successor Agent.

         (e) The Corporation shall give, or shall cause such successor Agent to
give, notice of each resignation and each removal of the Agent and each
appointment of a successor Agent to all Holders of Units in accordance with
Section 11.06. Each notice shall include the name of the successor Agent and the
address of its Corporate Trust Office.

         Section 6.10. Acceptance of Appointment by Successor. (a) In case of
the appointment hereunder of a successor Agent, every such successor Agent so
appointed shall execute, acknowledge and deliver to the Corporation and to the
retiring Agent an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Agent shall become effective and such
successor Agent, without any further act, deed or conveyance, shall become
vested with all the rights, powers, agencies and duties of the retiring Agent,
with like effect as if originally named as Agent hereunder; but, on the request
of the Corporation or the successor Agent, such retiring Agent shall, upon
payment of all amounts due and payable to it pursuant to Section 6.07, execute
and deliver an instrument transferring to such successor Agent all the rights
and powers of the retiring Agent and shall duly assign, transfer and deliver to
such successor Agent all property and money held by such retiring Agent
hereunder. Any retiring Agent shall, nonetheless, retain a prior claim upon all
property or funds held or collected by such Agent to secure any amounts then
due it pursuant to Section 6.07.

         (b) Upon request of any such successor Agent, the Corporation shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Agent all such rights, powers and agencies referred
to in paragraph (a) of this Section.

                                       52
<PAGE>

         (c) No successor Agent shall accept its appointment unless at the time
of such acceptance such successor Agent shall be eligible under this Article.

         (d) Upon acceptance of appointment by any successor Agent as provided
in this Section, the Corporation shall give notice thereof to the Holders of
Units in accordance with Section 11.06. If the acceptance of appointment is
substantially contemporaneous with the resignation of the Agent, then the notice
called for by the preceding sentence may be combined with the notice called for
by Section 6.09. If the Corporation fails to give such notice within ten days
after acceptance of appointment by the successor Agent, the successor Agent
shall cause such notice to be given at the expense of the Corporation.

         Section 6.11. Merger, Conversion, Consolidation or Succession to
Business. Any corporation into which the Agent may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Agent shall be a party, or any
corporation succeeding to all or substantially all the agency business of the
Agent, shall be the successor of the Agent hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
provided that such corporation shall be otherwise eligible under this Article.
In case any Purchase Contracts shall have been countersigned and executed, but
not delivered, by the Agent then in office, any successor by merger, conversion
or consolidation to such Agent may adopt such countersignature and execution and
deliver the Purchase Contracts so countersigned and executed with the same
effect as if such successor Agent had itself countersigned and executed such
Purchase Contracts.

         Section 6.12. Appointment of Authenticating Agent. At any time when any
of the Units remain Outstanding the Agent may, by an instrument in writing,
appoint an Authenticating Agent or Agents with respect to the Purchase Contracts
to be authorized to act on behalf of the Agent to countersign, execute and
deliver the Purchase Contracts issued upon exchange, registration of transfer or
pursuant to Section 2.09 and Purchase Contracts so countersigned, executed and
delivered shall be entitled to the benefits of this Agreement and shall be valid
and obligatory for all purposes as if countersigned by the Agent hereunder.
Wherever reference is made in this Agreement to the countersignature, execution
and delivery of Purchase Contracts by the Agent or the Agent's countersignature
or execution, such references shall be deemed to include countersignature,
execution and delivery on behalf of the Agent by an Authenticating Agent and a
countersignature and execution executed on behalf of the Agent by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Corporation and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as Authenticating Agent,
subject to supervision or examination by Federal or State or District of
Columbia authority and having, together with its parent, a combined capital and
surplus of not less

                                       53
<PAGE>

than $50,000,000. If such Authenticating Agent, or its parent, publishes reports
of condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section. The Agent may also appoint one or more Authenticating
Agents with offices or agencies in a city or cities outside the United States.

         Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all the
agency business of an Authenticating Agent, shall continue to be an
Authenticating Agent, without the execution or filing of any paper or any
further act on the part of the Agent or the Authenticating Agent, provided that
such corporation shall be otherwise eligible under this Section.

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Agent and to the Corporation. The Agent may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Corporation. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Agent may appoint a successor Authenticating
Agent which shall be acceptable to the Corporation and shall provide written
notice of such appointment to all Holders of Units in the manner and to the
extent provided in Section 11.06. Any successor Authenticating Agent upon
acceptance of its appointment hereunder shall become vested with all the rights,
powers and duties of its predecessor hereunder, with like effect as if
originally named as an Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section. No
Authenticating Agent shall have any responsibility or liability for any action
taken by it as such at the direction of the Agent.

         The provisions of Sections 2.10, 6.04 and 6.05 shall be applicable to
each Authenticating Agent.

         Pursuant to each appointment made under this Section, the Purchase
Contracts covered by such appointment may have endorsed thereon, in addition to
the form of Agent's countersignature and execution of the Purchase Contracts
evidenced thereby, an alternative countersignature and execution of the Purchase
Contracts contained therein in the following forms:

                                       54
<PAGE>

                                 JPMORGAN CHASE BANK, as Agent,
                                     as attorney in fact of the Holder hereof

                                 By [NAME OF AUTHENTICATING
                                     AGENT], as Authenticating Agent

                                 By:
                                      ------------------------------------------
                                      [Authorized Officer]
                                      Title:

                                 Countersigned

                                 JPMORGAN CHASE BANK, as Agent

                                 By [NAME OF AUTHENTICATING
                                     AGENT], as Authenticating Agent

                                 By:
                                      ------------------------------------------
                                      [Authorized Officer]
                                      Title:

         Section 6.13. Corporation to Furnish Agent Names and Addresses of
Holders. The Corporation will furnish or cause to be furnished to the Agent

         (a) not later than 15 days after each Regular Record Date in each year,
a list, in such form as the Agent may reasonably require, of the names and
addresses of the Holders of Registered Units as of such Regular Record Date, and

         (b) at such other times as the Agent may request in writing, within 30
days after the receipt by the Corporation of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished;

provided that no such list need be furnished if the Agent shall be the Purchase
Contract Registrar, the registrar under the Warrant Agreement and the registrar
under the Indenture.

         Section 6.14. Preservation of Information; Communications to Holders.
(a) The Agent shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders of Registered Units contained
in the most recent list furnished to the Agent as provided in Section 6.13 and
the names and

                                       55
<PAGE>

addresses of Holders of Registered Units received by the Agent in its capacity
as Purchase Contract Registrar, the registrar under the Warrant Agreement and
the registrar under the Indenture. The Agent may destroy any list furnished to
it as provided in Section 6.13 upon receipt of a new list so furnished.

         (b) If three or more Holders (herein referred to as "applicants")
apply in writing to the Agent, and furnish to the Agent reasonable proof that
each such applicant has owned a Unit for a period of at least six months
preceding the date of such application, and such application states that the
applicants desire to communicate with other Holders with respect to their
rights under this Agreement or under the Units and is accompanied by a copy of
the form of proxy or other communication that such applicants propose to
transmit, then the Agent shall, within five Business Days after the receipt of
such application, at its election either (i) afford such applicants access to
the information preserved at the time by the Agent in accordance with Section
6.14(a) or (ii) inform such applicants as to the approximate number of Holders
whose names and addresses appear in the information preserved at the time by
the Agent, and as to the approximate cost of mailing to such Holders the form
of proxy or other communication, if any, specified in such application.

         If the Agent shall elect not to afford such applicants access to such
information, the Agent shall, upon the written request of such applicants, mail
to each Holder whose name and address appears in the information preserved at
the time by the Agent, a copy of the form of proxy or other communication that
is specified in such application, with reasonable promptness after a tender to
the Agent of the material to be mailed and of payment, or provision for payment,
of the reasonable expenses of mailing, unless within five days after such
tender, the Agent shall mail to such applicants a written statement to the
effect that in the opinion of the Agent, such mailing would be contrary to the
best interests of the Holders or would be in violation of applicable law.
Thereafter, the Agent shall be relieved of any obligation or duty to such
applicants with respect to their application.

         (c) Every Holder of Units, by his acceptance thereof, agrees with the
Corporation and the Agent that neither the Corporation nor the Agent nor any
agent of any of them shall be held accountable by reason of the disclosure of
any such information as to the names and addresses of the Holders in accordance
with Section 6.14(b), regardless of the source from which such information was
derived, and that the Agent shall not be held accountable by reason of mailing
any material pursuant to a request made under Section 6.14(b).

         Section 6.15. No Obligation of Holder. Except to the extent otherwise
provided in this Agreement, the Agent assumes no obligations and shall not be
subject to any liability under this Agreement or any Purchase Contract with
respect to the obligations of the Holder of a Unit thereunder. The Corporation

                                       56
<PAGE>

agrees, and each Holder of a Unit Certificate, by his acceptance thereof, shall
be deemed to have agreed, that the Agent's execution of the Purchase Contracts
evidenced by the Unit Certificates shall be solely as agent and attorney in fact
for the Holders, and that the Agent shall have no obligation to perform such
Purchase Contracts on behalf of the Holders, except to the extent provided in
this Article.

         Section 6.16. Tax Compliance. (a) The Agent, on its own behalf and on
behalf of the Corporation, will comply with all applicable certification,
information reporting and withholding (including "backup" withholding)
requirements imposed by applicable United States, federal and New York State
tax laws, regulations or administrative practice (i) with respect to payments
on, or transfer or redemption of the Debt Securities, the Prepaid Purchase
Contracts Issued under the Indenture, the Warrants or the Purchase Contracts or
(ii) if specifically instructed by the Corporation, with respect to the
issuance, delivery, holding, or exercise of rights (other than by payment,
transfer or redemption) under the Debt Securities, the Prepaid Purchase
Contracts Issued under the Indenture, the Warrants or the Purchase Contracts.
Such compliance shall include, without limitation, the preparation and timely
filing of required returns with respect to, and the timely payment of, all
amounts required to be withheld to the appropriate taxing authority or its
designated agent. The Corporation will provide to the Agent such information as
it may reasonably request in order to comply with this Section.

         (b) The Agent shall comply with any direction received from the
Corporation with respect to the application of such requirements to particular
payments or holders or in other particular circumstances, and may for purposes
of this Agreement rely on any such direction in accordance with the provisions
of Section 6.01(b)(ii) hereof.

         (c) The Agent shall maintain all appropriate records documenting
compliance with such requirements, and shall make such records available on
request at reasonable times during normal business hours to the Corporation or
to their authorized representatives duly authorized in writing.

         (d) Unless otherwise specified pursuant to Section 2.03, the portion of
the issue price of any Units of any series consisting of Debt Securities and
Purchase Contracts allocable to such Debt Securities shall equal the principal
amount payable at maturity of such Debt Securities. Unless otherwise specified
pursuant to Section 2.03, the portion of the issue price of any Units of any
series consisting of Debt Securities and Warrants allocable to such Debt
Securities shall equal the portion of the issue price that is in the same
proportion to such issue price as the fair market value of such Debt Securities
bears to the aggregate fair market value of such Debt Securities and Warrants,
taken as a whole. The Corporation and the Holders agree not to file any tax
returns, or take a position

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with any tax authority, that is inconsistent with the characterization of the
Debt Securities as debt.

         (e) Unless otherwise specified pursuant to Section 2.03, the
Corporation by the issuance and sale of any Unit and any Holder of a Unit by his
acceptance thereof agree to (in the absence of any applicable administrative
ruling or judicial determination to the contrary) treat the Securities that
constitute any Unit as separate securities and to file all United States
federal, state and local tax returns consistent with the treatment of such Unit
as constituted by separate securities.

                                   Article 7
                             SUPPLEMENTAL AGREEMENTS

         Section 7.01. Supplemental Agreements Without Consent of Holders.
Without the consent of any Holders, the Corporation, when authorized by a Board
Resolution or Officer's Certificate, the Agent and the Collateral Agent, at any
time and from time to time, may enter into one or more agreements supplemental
hereto, in form satisfactory to the Agent, for any of the following purposes:

                  (i) to evidence the succession of another Person to the
         Corporation and the assumption by any such successor of the covenants
         of the Corporation herein and in the Purchase Contracts; or

                  (ii) to evidence and provide for the acceptance of appointment
         hereunder by a successor Agent or Collateral Agent with respect to the
         Units; or

                  (iii) to add to the covenants of the Corporation, Collateral
         Agent or Agent such further covenants, restrictions, conditions or
         provisions as the Corporation, Collateral Agent and Agent shall
         consider to be for the protection of the Holders, and to make the
         occurrence, or the occurrence and continuance, of a default in any such
         additional covenants, restrictions, conditions or provisions of the
         Corporation a Purchase Contract Default permitting the enforcement of
         all or any of the several remedies provided in this Agreement as herein
         set forth; provided that in respect of any such additional covenant,
         restriction, condition or provision such supplemental agreement may
         provide for a particular period of grace after default (which period
         may be shorter or longer than that allowed in the case of other
         defaults) or may provide for an immediate enforcement upon such a
         Purchase Contract Default or may limit the remedies available to the
         Holders upon such a Purchase Contract Default or may limit the right of
         the Holders to waive such Purchase Default; or

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<PAGE>

                  (iv) to comply with the Securities Act of 1933, as amended,
         the Exchange Act or the Investment Company Act of 1940, as amended; or

                  (v) to cure any ambiguity, to correct or supplement any
         provision herein or in the Purchase Contracts of any series that may be
         inconsistent with any other provision herein or therein, or to modify,
         alter, amend or supplement any other provisions with respect to matters
         or questions arising under this Agreement or under such Purchase
         Contracts; provided that such action shall not adversely affect the
         interests of the Holders in any material respect.

         Section 7.02. Supplemental Agreements with Consent of Holders. With
the consent of the Holders of not less than a majority of affected Unsettled
Purchase Contracts Outstanding, in the case of clause (A) below, and with the
consent of the Holders of not less than a majority of affected Units
Outstanding, in the case of clause (B) below, by Act of said Holders delivered
to the Corporation and the Agent, the Corporation, when authorized by a Board
Resolution or Officer's Certificate, the Agent and the Collateral Agent may
enter into an agreement or agreements supplemental hereto for the purpose of
(A) modifying in any manner the terms of the Purchase Contracts or this
Agreement with respect to the Purchase Contracts or the rights of the Holders
of Units with respect to the Purchase Contracts or (B) modifying in any manner
the other terms of this Agreement or the other rights of Holders of Units;
provided, however, that no such supplemental agreement shall (i) without the
consent of the Holder of each Outstanding Purchase Contract affected thereby in
the case of clauses (1), (2) and (3) below and (ii) without the consent of the
Holder of each Unit affected thereby, in the case of clauses (4) and (5) below:

                           (1) impair the right to institute suit for the
                  enforcement of any Purchase Contract, or

                           (2) reduce the percentage of the Purchase Contracts
                  Outstanding, the consent of whose Holders is required for any
                  modification or amendment of the provisions of this Agreement
                  relating to the Purchase Contracts or for any waiver of any
                  Purchase Contract Defaults hereunder and their consequences
                  provided for in this Agreement relating to the Purchase
                  Contracts, or

                           (3) modify or affect (in any manner materially
                  adverse to the Holders) the Holders' rights and obligations
                  under the Purchase Contracts; or

                           (4) modify or affect (in any manner materially
                  adverse to the Holders) the terms of this

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<PAGE>

                  Agreement or such Holder's Units (other than the terms
                  referred to in clause (1), (2) or (3) above); or

                           (5) reduce the percentage of Holders of Units whose
                  consent is required for any modification or amendment of the
                  provisions of this Agreement (other than the terms referred to
                  in clause (1), (2) or (3) above).

         It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental agreement, but it shall
be sufficient if such Act shall approve the substance thereof.

         Section 7.03. Execution of Supplemental Agreements. In exchange for
accepting the additional agencies or duties created by, any supplemental
agreement permitted by this Article or the modifications thereby of the agencies
or duties created by this Agreement, each of the Agent and the Collateral Agent
shall be entitled to receive and (subject to Sections 6.01 and 5.03,
respectively) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental agreement is authorized or
permitted by this Agreement. Each of the Agent and the Collateral Agent may, but
shall not be obligated to, enter into any such supplemental agreement that
affects the Agent's or the Collateral Agent's rights, duties or immunities under
this Agreement or otherwise.

         Section 7.04. Effect of Supplemental Agreements. Upon the execution of
any supplemental agreement under this Article, this Agreement shall be modified
in accordance therewith, and such supplemental agreement shall form a part of
this Agreement for all purposes; and every Holder of Units, theretofore or
thereafter authenticated, countersigned, executed and delivered hereunder, under
the Warrant Agreement and/or under the Indenture shall be bound thereby.

         Section 7.05. Reference to Supplemental Agreements. Unit Certificates,
Debt Securities, Warrants, Purchase Contracts and Prepaid Purchase Contracts
Issued under the Indenture authenticated, countersigned, executed and delivered
after the execution of any supplemental agreement pursuant to this Article may,
and shall if required by the Agent, bear a notation in form approved by the
Agent as to any matter provided for in such supplemental agreement. If the
Corporation shall so determine, new Unit Certificates, Debt Securities,
Warrants, Purchase Contracts and Prepaid Purchase Contracts Issued under the
Indenture so modified as to conform, in the opinion of the Agent, and the
Corporation, to any such supplemental agreement may be prepared and executed by
the Corporation and authenticated, executed, countersigned and delivered by the
Trustee, the Warrant Agent and the Agent, as applicable, in exchange for
Outstanding Unit Certificates, Debt Securities, Warrants, Purchase Contracts and
Prepaid Purchase Contracts Issued under the Indenture.

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<PAGE>

                                   Article 8
                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

         Section 8.01. Covenant Not to Merge, Consolidate, Sell or Convey
Property Except Under Certain Conditions. The Corporation covenants that it
will not merge or consolidate with any other corporation or sell, convey or
lease all or substantially all of its assets to any Person, firm or
corporation, except that the Corporation may merge or consolidate with, or
sell, convey or lease all or substantially all of its assets to, any other
corporation, provided that (i) the Corporation shall be the continuing
corporation, or the successor corporation (if other than the Corporation) shall
be a corporation organized and existing under the laws of the United States of
America or a state thereof or the District of Columbia and such corporation
shall assume the due and punctual performance and observance of all of the
covenants and conditions of this Agreement to be performed by the Corporation
by supplemental agreement in form satisfactory to the Agent and the Collateral
Agent, executed and delivered to the Agent and the Collateral Agent by such
corporation, and (ii) neither the Corporation nor such successor corporation
immediately after such merger or consolidation, or such sale, conveyance or
lease shall be in default in the performance of any such covenant or condition.

         Section 8.02. Rights and Duties of Successor Corporation. In case of
any such consolidation, merger, sale or conveyance and upon any such assumption
by the successor corporation, such successor corporation shall succeed to and be
substituted for the Corporation with the same effect as if it had been named
herein as the Corporation. Such successor corporation thereupon may cause to be
signed, and may issue (subject to the provisions of the Indenture and the
Warrant Agreement) either in its own name or in the name of Morgan Stanley any
or all of the Unit Certificates, Debt Securities, Warrants, Prepaid Purchase
Contracts Issued under the Indenture and Purchase Contracts issuable hereunder
which theretofore shall not have been signed by the Corporation and delivered to
the Agent; and, upon the order of such successor corporation, instead of the
Corporation, and subject to all the terms, conditions and limitations in this
Agreement prescribed, the Trustee, the Warrant Agent and the Agent shall
authenticate, countersign, execute and deliver, as applicable, any Unit
Certificates, Debt Securities, Warrants, Prepaid Purchase Contracts Issued under
the Indenture and Purchase Contracts that previously shall have been signed and
delivered by the officers of the Corporation to the Trustee, the Warrant Agent
and the Agent for authentication, execution and countersignature, and any Unit
Certificate, Debt Securities, Warrants, Prepaid Purchase Contracts Issued under
the Indenture and Purchase Contracts evidencing Units which such successor
corporation thereafter shall cause to be signed and delivered to the Trustee,
the Warrant Agent and the Agent for such purpose. All the Purchase Contracts so
issued shall in all respects have the same legal rank and benefit under this
Agreement as the Purchase Contracts theretofore or thereafter issued in

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<PAGE>

accordance with the terms of this Agreement as though all of such Purchase
Contracts had been issued at the date of the execution hereof.

         In case of any such consolidation, merger, sale, conveyance or lease
such change in phraseology and form (but not in substance) may be made in the
Unit Certificates and Purchase Contracts thereafter to be issued as may be
appropriate.

         Section 8.03. Opinion of Counsel to Agent. The Agent and the Collateral
Agent, subject to Sections 6.01 and 6.03 and Sections 5.03 and 5.05,
respectively, may receive an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance or lease, and any such assumption,
complies with the provisions of this Article.

                                    Article 9
                                    COVENANTS

         Section 9.01. Performance Under Purchase Contracts. The Corporation
covenants and agrees for the benefit of the Holders of the Units that it will
duly and punctually perform its obligations under the Purchase Contracts in
accordance with the terms of the Purchase Contracts and this Agreement.

         Section 9.02. Maintenance of Office or Agency. So long as Units or
Purchase Contracts are authorized for issuance pursuant to this Agreement or are
Outstanding hereunder, the Corporation will maintain in the Borough of
Manhattan, The City of New York, an office or agency where Registered Units may
be presented or surrendered for payment or acquisition of Purchase Contract
Property or where Purchase Contract Property or other property may be tendered
for delivery, where Registered Units may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Corporation in
respect of Units and this Agreement may be served. The Corporation hereby
initially designates the Agent as its office or agency in the Borough of
Manhattan, The City of New York, for each of said purposes. The Corporation will
give prompt written notice to the Agent of the location, and any change in the
location, of such office or agency. The Corporation will maintain one or more
offices or agencies in a city or cities located outside the United States
(including any city in which such an agency is required to be maintained under
the rules of any stock exchange on which the Units of such series, or the
Securities constituting such Units, are listed) where the Unregistered Units, if
any, of each series may be presented or surrendered for payment or acquisition
of Purchase Contract Property or where Purchase Contract Property or other
property may be tendered for delivery. No payment or delivery of Purchase
Contract Property on any Unregistered Unit will be made upon presentation of
such Unregistered Unit at an agency of the Corporation within the United States
nor will any payment or delivery of Purchase Contract Property be made by
transfer to an account in, or by

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<PAGE>

mail to an address in, the United States unless pursuant to applicable United
States laws and regulations then in effect such payment can be made without
adverse tax consequences to the Corporation. Notwithstanding the foregoing,
payments in U.S. dollars of Unregistered Units of any series appertaining
thereto which are payable in U.S. dollars may be made at an agency of the
Corporation maintained in the Borough of Manhattan, The City of New York if such
payment in U.S. dollars at each agency maintained by the Corporation outside the
United States for payment on such Unregistered Units is illegal or effectively
precluded by exchange controls or other similar restrictions. If at any time the
Corporation shall fail to maintain any such required office or agency or shall
fail to furnish the Agent with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Agent, and the Corporation hereby appoints the Agent as its agent
to receive all such presentations, surrenders, notices and demands.

         The Corporation may also from time to time designate one or more other
offices or agencies where Debt Securities, Warrants, Prepaid Purchase Contracts
Issued under the Indenture, Purchase Contracts and Unit Certificates may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Corporation of its obligations to
maintain offices or agencies provided for in this Section. The Corporation will
give prompt written notice to the Agent of any such designation or rescission
and of any change in the location of any such other office or agency.

         Section 9.03. Money for Payments to Be Held in Trust. Any money or
other property deposited with the Agent, in trust for payment with respect to
any Unit, remaining unclaimed for two years after such payment has become due
and payable shall be paid to the Corporation on request of the Corporation
pursuant to an Officer's Certificate; and the Holder of such Unit shall
thereafter, as an unsecured general creditor, look only to the Corporation for
payment thereof, and all liability of the Agent with respect to such trust money
or other property shall thereupon cease; provided that the Agent, before making
any such repayment, may (but shall not be obligated to) at the expense of the
Company notify (i) in the case of Registered Units evidenced by Unit
Certificates, the Holders, (ii) in the case of Units evidenced by one or more
global Unit Certificates, the participants of the Depositary, and (iii) in the
case of Bearer Units evidenced by Unit Certificates, the holders thereof, in
each case pursuant to Section 11.06, that said money has not been so applied and
remains unclaimed and that after a date named in the notification any unclaimed
balance of said money then remaining will be returned to the Company.

         In the event that (i) the Corporation has delivered Purchase Contract
Property (or the cash value thereof) to the Agent against tender of payment for
such Purchase Contract Property or Warrant Property (or the cash value thereof)

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<PAGE>

to the Warrant Agent against tender of payment for such Warrant Property (or,
in the case of Purchase Contracts or Warrants calling for the purchase of
Purchase Contract Property or Warrant Property, as the case may be, by the
Corporation, the Corporation has tendered payment) and (ii) a Holder of a Unit
Certificate fails to present and surrender the appropriate Unit Certificate to
the Agent or Warrant Agent, as appropriate, the Purchase Contract Property, the
Warrant Property or the cash value thereof or the Corporation's payment for
Purchase Contract Property or Warrant Property, as the case may be, deliverable
upon settlement of the Purchase Contracts or Warrants, as the case may be,
evidenced by such Unit Certificate, together with any distributions thereon
(and, if an effective Cash Settlement with respect to the obligations under
such Purchase Contracts or Warrants has been made, payments in respect of
principal of any Debt Securities that are part of such Units), shall be held by
the Agent, in trust, for the benefit of such Holder, until such Unit
Certificate is presented and surrendered or such Holder delivers to the Agent,
the Warrant Agent, the Trustee, and the Corporation (A) evidence to their
satisfaction that such certificate has been destroyed, lost or stolen and (B)
such security or indemnity as may be required by them to hold each of them and
any agent of any of them harmless. In the event such Unit Certificate is not
presented and surrendered or such Holder does not satisfy the applicable
conditions specified in the preceding sentence on or prior to the date two
years after the date of settlement of the related Purchase Contract or Warrant,
as the case may be, any distributions received by the Agent with respect to the
Purchase Contract Property delivered in respect of the Unit Certificates shall
be paid to the Corporation, on the request of the Corporation pursuant to an
Officer's Certificate, and the Holders of such Unit shall thereafter, as
unsecured general creditors, look only to the Corporation for payment thereof
and all liability of the Agent with respect to such trust assets shall
thereafter cease.

         Section 9.04. Statements of Officers of the Corporation as to Default.
The Corporation will deliver to the Agent, on or before March 31 in each year,
an Officer's Certificate stating whether or not to the best knowledge of the
signers thereof the Corporation is in default in the performance and observance
of any of the terms, provisions and conditions hereof or of any Purchase
Contracts, and, if the Corporation shall be in default, specifying all such
defaults and the nature and status thereof of which they may have knowledge.

         Section 9.05. Negative Pledge. Neither the Corporation nor any
successor corporation will, or will permit any Subsidiary (as hereinafter
defined) to, create, assume, incur or guarantee any indebtedness for borrowed
money secured by a pledge, lien or other encumbrance (except for Permitted
Liens, as hereinafter defined) on the (i) Voting Securities (as hereinafter
defined) of Morgan Stanley & Co. Incorporated, a Delaware corporation and a
wholly owned subsidiary of the Corporation, or Morgan Stanley & Co.
International Limited, an English company and an indirect wholly owned
subsidiary of the Corporation, Discover Bank, a Delaware chartered bank and an
indirect wholly owned subsidiary of the

                                       64
<PAGE>

Corporation, Morgan Stanley DW Inc., a Delaware corporation and a wholly owned
subsidiary of the Corporation, or any Subsidiary succeeding to any substantial
part of the business now conducted by any of such corporations (collectively,
the "Principal Subsidiaries") or (ii) Voting Securities of a Subsidiary that
owns, directly or indirectly, Voting Securities of any of the Principal
Subsidiaries (other than directors' qualifying shares) unless the Corporation
shall cause the Units and the Securities constituting the Units to be secured
equally and ratably with (or, at the Corporation's option, prior to) any
indebtedness secured thereby. "Subsidiary" means any corporation, partnership or
other entity of which at the time of determination the Corporation owns or
controls directly or indirectly more than 50% of the shares of voting stock or
equivalent interest. "Permitted Liens" means liens for taxes or assessments or
governmental charges or levies not then due and delinquent or the validity of
which is being contested in good faith or which are less than $1,000,000 in
amount, liens created by or resulting from any litigation or legal proceeding
which is currently being contested in good faith by appropriate proceedings or
which involves claims of less than $1,000,000, deposits to secure (or in lieu
of) surety, stay, appeal or customs bonds and such other liens as the Board of
Directors of the Corporation determines do not materially detract from or
interfere with the present value or control of the Voting Securities subject
thereto or affected thereby. "Voting Securities" means stock of any class or
classes having general voting power under ordinary circumstances to elect a
majority of the board of directors, managers or trustees of the Subsidiary in
question, provided that, for the purposes hereof, stock which carries only the
right to vote conditionally on the happening of an event shall not be considered
voting stock whether or not such event shall have happened.

         Section 9.06. Luxembourg Publications. In the event of the publication
of any notice pursuant to this Agreement, the party making such publication in
the Borough of Manhattan, The City of New York, and London shall also, to the
extent that notice is required to be given to Holders of Units of any series or
Securities constituting such Units by applicable Luxembourg law or stock
exchange regulation, as evidenced by an Officer's Certificate delivered to such
party, make a similar publication in Luxembourg.

                                   Article 10
                                   REDEMPTIONS

         Section 10.01. Optional Redemption of Purchase Contracts; Redemption
Upon Redemption of Debt Securities. If this Article is specified as applicable
pursuant to Section 3.02 in connection with the issuance of the Purchase
Contracts of a series, any or all of such Purchase Contracts may be redeemed at
the option of the Corporation, or from time to time in part, on such date or
dates

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<PAGE>

and at a redemption price per Purchase Contract as shall be specified pursuant
to Section 3.02; provided that no redemption shall result in there being more
than zero but fewer than the minimum amount of Unsettled Purchase Contracts
that may remain Outstanding after such redemption, as specified pursuant to
Section 3.02.

         Unless otherwise specified pursuant to Section 2.03, in the event that
the Corporation shall redeem any Debt Security constituting part of a Unit of
any series pursuant to the provisions of the Indenture or such Debt Security,
the Corporation shall redeem any Purchase Contract or, to the extent permitted
under or pursuant to the Warrant Agreement, Warrant constituting part of the
same Unit on the redemption date of such related Debt Security.

         Section 10.02. Notice of Redemption; Partial Redemptions. Unless
otherwise specified pursuant to Section 3.02, the Corporation or, upon Issuer
Order of the Corporation, the Agent in the name and at the expense of the
Corporation, shall give notice of redemption to the Holders of Purchase
Contracts in the manner and to the extent provided in Section 11.06, at least 30
days and not more than 60 days prior to the date fixed for redemption. Any
notice which is given in the manner herein provided shall be conclusively
presumed to have been duly given, whether or not the Holder receives the notice.
Failure to give notice by mail, or any defect in the notice to the Holder of any
Purchase Contract, shall not affect the validity of the proceedings for the
redemption of any other Purchase Contract.

         The notice of redemption to each Holder of Registered Purchase
Contracts shall specify the number of Registered Purchase Contracts held by such
Holder to be redeemed, the date fixed for redemption, the redemption price, the
place or places of payment and that payment will be made upon presentation and
surrender of Unit Certificates with respect to such Registered Purchase
Contracts evidenced by Unit Certificates.

         The Corporation's obligation to provide funds for redemption shall be
deemed fulfilled if, on or before 12:00 noon, local time in the place of
payment, on the redemption date specified in the notice of redemption given as
provided in this Section, the Corporation shall deposit with the Agent or with
one or more paying agents an amount of money sufficient to redeem on the
redemption date all the Purchase Contracts called for redemption at the
appropriate redemption price, together with irrevocable instructions and
authorization that such funds be applied to the redemption of the Purchase
Contracts called for redemption upon surrender of Unit Certificates representing
such Purchase Contracts, properly endorsed and assigned for transfer, in
accordance with this Article.

         The Corporation will deliver to the Agent at least 15 days prior to the
mailing of the notice of redemption an Officer's Certificate stating the
aggregate

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<PAGE>

number of Purchase Contracts to be redeemed on such date and that the
Corporation has complied with the provisions of Section 10.01 and of said
Purchase Contracts subject to said redemption.

         If fewer than all the Purchase Contracts are to be redeemed, the Agent,
prior to the mailing of the redemption notice, shall select the Purchase
Contracts to be redeemed on a pro rata basis, by lot or by such other means as
shall be acceptable to the Agent. Appropriate adjustment shall be made to
prevent the fractional redemption of Purchase Contracts, such that Purchase
Contracts are redeemed only in whole and not in part.

         The Agent shall promptly notify the Corporation in writing of the
Purchase Contracts so selected for redemption.

         Section 10.03. Payment of Purchase Contracts Called for Redemption. If
notice of redemption has been given as above provided, (i) the Purchase
Contracts specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, and (ii)
on and after the date fixed for redemption (unless the Corporation shall default
in the payment of such Purchase Contracts at the redemption price) such Purchase
Contracts shall cease from and after the date fixed for redemption to be
entitled to any benefit under this Agreement, the Holders thereof shall have no
right or obligation in respect of such Purchase Contracts except the right to
receive the redemption price thereof and the Purchase Contracts shall terminate
and shall no longer be deemed to be Outstanding.

         If so specified pursuant to Section 3.02, on presentation and surrender
of Unit Certificates representing such Purchase Contracts, properly endorsed and
assigned for transfer, at a place of payment specified in said notice, said
Purchase Contracts shall be paid and redeemed by the Corporation at the
applicable redemption price. Following such redemption, the Unit Certificates
evidencing such Closed Purchase Contracts shall be cancelled in accordance with
Section 2.11. In the case of (i) Definitive Units, certificates evidencing any
Outstanding Debt Securities relating to such redeemed Purchase Contracts shall
be executed, authenticated and delivered in accordance with the terms of the
Indenture and (ii) Global Units, if a Global Debt Security not constituting part
of a Global Unit has not previously been issued by the Corporation, a second
Global Debenture evidencing any Outstanding Debt Security relating to such
redeemed Purchase Contracts shall be executed, authenticated and delivered in
accordance with the Indenture. If a second Global Debt Security referred to in
clause (ii) of the immediately preceding sentence has already been issued, the
Agent shall note thereon an appropriate increase in the number of Debt
Securities represented by such Global Debt Security.

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<PAGE>

         Any interest accrued on funds deposited with the Agent or any Paying
Agent in connection with this Article Ten shall be paid to the Corporation from
time to time and the Holders of Purchase Contracts (whether or not such Purchase
Contracts are to be redeemed with such funds) shall have no claim to any such
interest. Any funds deposited and unclaimed at the end of two years from any
redemption date shall be repaid or released to the Corporation, on the request
of the Corporation pursuant to an Officer's Certificate, after which the
Holder(s) of Purchase Contracts so called for redemption shall look only to the
Corporation for payment of the redemption price, without any interest thereon
and all liability of the Agent with respect to the redemption price shall cease.

         Section 10.04. Exclusion of Certain Purchase Contracts from
Eligibility for Selection for Redemption. Purchase Contracts shall be excluded
from eligibility for selection for a partial redemption if they are identified
by registration and certificate number in an Officer's Certificate delivered by
the Corporation to the Agent at least 10 days prior to the date of the mailing
of a notice of redemption as being owned of record and beneficially by, and not
pledged or hypothecated by (a) the Corporation or (b) an Affiliate of the
Corporation. Purchase Contracts shall also be excluded from eligibility for
selection for a partial redemption if they are the subject of an Acceleration
Notice.

                                   Article 11
                            MISCELLANEOUS PROVISIONS

         Section 11.01. Incorporators, Stockholders, Officers and Directors of
the Corporation Immune from Liability. No recourse under or upon any obligation,
covenant or agreement contained in this Agreement, or in any Debt Security,
Prepaid Purchase Contract Issued under the Indenture, Warrant Agreement or any
Purchase Contract, or because of any indebtedness evidenced thereby, shall be
had against any incorporator, or against any past, present or future
stockholder, officer, attorney-in-fact or director, as such, of the Corporation
or of any successor corporation, either directly or through the Corporation or
any successor corporation, under any rule of law, statute or constitutional
provision or by the enforcement of any assessment or penalty or by any legal or
equitable proceeding or otherwise, all such liability being expressly waived and
released by the acceptance of the Units by the Holders thereof and as part of
the consideration for the issue thereof, provided that nothing in this Article
shall impair the obligations, covenants and agreements of the Corporation
contained in this Agreement and in any Debt Securities, Prepaid Purchase
Contracts Issued under the Indenture, Warrants or Purchase Contracts
constituting a part of the Units of any series.

         Section 11.02. Compliance Certificates and Opinions. Except as
otherwise expressly provided by this Agreement, upon any application or request
by the Corporation to the Agent or Collateral Agent to take any action under any

                                       68
<PAGE>

provision of this Agreement, the Corporation, as applicable, shall furnish to
the Agent or Collateral Agent an Officer's Certificate stating that all
conditions precedent, if any, provided for in this Agreement relating to the
proposed action have been complied with and an Opinion of Counsel stating that,
in the opinion of such counsel, all such conditions precedent, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Agreement relating to such particular application or request, no
additional certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Agreement shall include:

                  (i) a statement that each individual signing such certificate
         or opinion has read such covenant or condition and the definitions
         herein relating thereto;

                  (ii) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (iii) a statement that, in the opinion of each such
         individual, he has made such examination or investigation as is
         necessary to enable him to express an informed opinion as to whether or
         not such covenant or condition has been complied with; and

                  (iv) a statement as to whether, in the opinion of each such
         individual, such condition or covenant has been complied with.

         Section 11.03. Form of Documents Delivered to Agent or Collateral
Agent. In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

         Any certificate, statement or opinion of an officer or counsel of or
for the Corporation may be based, insofar as it relates to legal matters, upon
a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to the matters upon
which his certificate, statement or opinion is based are erroneous. Any such
certificate, statement or opinion may be based, insofar as it relates to
factual matters, upon a certificate, statement or

                                       69
<PAGE>

opinion of, or representations by, an officer or officers of the Corporation,
as applicable, stating that the information with respect to such factual
matters is in the possession of the Corporation, unless such counsel knows, or
in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to such matters are erroneous.

         Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Agreement, they may, but need not, be consolidated and
form one instrument.

         Section 11.04. Acts of Holders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Agreement to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such
Holders in person or by an agent duly appointed in writing and, except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments are delivered to the Agent and, where it is
hereby expressly required, to the Corporation. Such instrument or instruments
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such
agent shall be sufficient for any purpose of this Agreement and (subject to
Section 6.01) conclusive in favor of the Agent and the Corporation, if made in
the manner provided in this Section.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Agent deems
sufficient.

         (c) Subject to Section 2.03(a)(vii), the ownership (i) of Registered
Units of any series shall be proved by the Purchase Contract Register for such
series, with respect to any Purchase Contracts constituting a part of such
Units, the Warrant Register for such series with respect to any Warrants
constituting a part of such Units and the Debt Security Register for such
series, with respect to any Debt Securities or Prepaid Purchase Contracts
Issued under the Indenture constituting a part of such Units, and (ii) of
Unregistered Units shall be proved by possession of the Unit Certificates
evidencing such Units or by the appropriate records of the depositary for such
Units.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Unit Certificate shall bind every
future Holder of the same Unit Certificate and the Holder of every Unit
Certificate issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof with respect to anything done, omitted or suffered
to be done by the Agent

                                       70
<PAGE>

or the Corporation in reliance thereon, whether or not notation of such action
is made upon such Unit Certificate.

         (e) The Corporation may set a record date for purposes of determining
the identity of Holders of Units entitled to consent to any action by consent
authorized or permitted hereby. Unless otherwise specified pursuant to Section
2.03, such record date shall be the later of 30 days prior to the first
solicitation of such consent or the date of the most recent list of Holders of
Units furnished to the Agent, pursuant hereto.

         Section 11.05. Notices, Etc. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided
or permitted by this Agreement to be made upon, given or furnished to, or filed
with,

         (a) the Agent or the Collateral Agent, as the case may be, by any
Holder or by the Corporation shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if made, given, furnished or filed
in writing and personally delivered or mailed, first class postage prepaid, to
the Agent at its Corporate Trust Office, Attention: Institutional Trust
Services, or at any other address previously furnished in writing by the Agent
or the Collateral Agent, as the case may be, to the Holders and the Corporation,
or

         (b) the Corporation by the Agent, the Collateral Agent or by any Holder
shall be sufficient for every purpose hereunder (unless otherwise herein
expressly provided) if made, given, furnished or filed in writing and personally
delivered or mailed, first class postage prepaid, addressed to the Corporation
at 1585 Broadway, New York, New York 10036, Attention: Treasurer, or at any
other address previously furnished in writing to the Agent and the Collateral
Agent by the Corporation.

         Section 11.06. Notices to Holders; Waiver. Where this Agreement
provides for notice to Holders of Registered Securities or Registered Units of
any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided or as provided in the Letter of Representations) if in
writing and mailed, first-class postage prepaid, to each such Holder affected by
such event, at such Holder's address as it appears in the relevant Security
Registers, with respect to the Securities constituting such Unit, not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Where this Agreement provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the

                                       71
<PAGE>

Agent, but such filing shall not be a condition precedent to the validity of any
action taken in reliance upon such waiver.

         In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Agent shall
constitute a sufficient notification for every purpose hereunder.

         Where this Agreement provides for notice to Holders of Unregistered
Securities or Unregistered Units of any event, such notice shall be sufficiently
given (unless otherwise specified herein or pursuant to Section 2.03 or 3.02)
either (i) through the customary notice provisions of the clearing system or
systems through which beneficial interests in such Unregistered Securities or
Unregistered Units are owned or (b) by publication in a newspaper in the English
language of general circulation in the Borough of Manhattan, The City of New
York, and in The City of London or, if publication in London is not practical,
in an English language newspaper with general circulation in Western Europe.
Such notices will be deemed to have been given on the date of such publication,
or if published in such newspapers on different dates, on the date of the first
such publication.

         Section 11.07. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

         Section 11.08. Successors and Assigns. All covenants and agreements in
this Agreement, the Units, the Purchase Contracts and the Unit Certificates by
the Corporation shall bind its successors and assigns, whether so expressed or
not.

         Section 11.09. Separability Clause. In case any provision in this
Agreement or in the Units, Unit Certificates or the Purchase Contracts shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions hereof and thereof shall not in any way be affected or
impaired thereby.

         Section 11.10. Benefits of Agreement. Nothing in this Agreement or in
the Units, Unit Certificates, the Indenture, the Debt Securities, the Prepaid
Purchase Contracts Issued under the Indenture, the Warrants or the Purchase
Contracts, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, any benefits or any legal or equitable
right, remedy or claim under this Agreement. The Holders from time to time shall
be parties to this Agreement and shall be bound by all of the terms and
conditions hereof and of the Indenture, the Warrant Agreement, the Units, the
Debt Securities, the Prepaid Purchase Contracts Issued under the Indenture, the

                                       72
<PAGE>

Warrants and the Purchase Contracts evidenced by the Units, as applicable, by
their acceptance of delivery of such Units.

         Section 11.11. Governing Law. This Agreement, the Units, the Unit
Certificates and the Purchase Contracts shall be governed and construed in
accordance with the laws of the State of New York.

         Section 11.12. Legal Holidays. Unless otherwise specified pursuant to
Section 3.02, in any case where any Settlement Date shall not be a Business Day,
then (notwithstanding any other provisions of this Agreement or the Purchase
Contracts) the Purchase Contracts shall not be performed on such date, but shall
be performed on the next succeeding Business Day with the same force and effect
as if performed on such Settlement Date; provided that no interest or other
amounts shall accrue or be payable by the Corporation or any Holder for the
period from and after any such Settlement Date.

         Section 11.13. Counterparts. This Agreement may be executed in any
number of counterparts by the parties hereto on separate counterparts, each of
which, when so executed and delivered, shall be deemed an original, but all such
counterparts shall together constitute one and the same instrument.

         Section 11.14. Appointment of Certain Agents. (a) Pursuant to Section
2.03 hereof, the Corporation may, in connection with any series of Purchase
Contracts appoint Morgan Stanley & Co. Incorporated, Morgan Stanley & Co.
International Limited or any other Person as Calculation Agent to make any
calculations as may be required pursuant to the terms of any such series of
Purchase Contracts. Any such Calculation Agent shall act as an independent
expert and, unless otherwise provided by this Agreement, its calculations and
determinations under this Agreement shall, absent manifest error, be final and
binding on the Corporation, the Agent and the Holders. Any such calculations
will be made available to the Holders for inspection at the Agent's Office.

         (b) Unless otherwise specified pursuant to Section 2.03, the
Corporation hereby appoints JPMorgan as the Paying Agent under the Indenture
with respect to each Debt Security comprised by any Unit issued hereunder.

         Section 11.15. Inspection of Agreement. A copy of this Agreement shall
be available at all reasonable times during normal business hours at the
Corporate Trust Office of the Agent for inspection by any Holder.

                                       73
<PAGE>

         IN WITNESS WHEREOF, the Corporation, the Agent, the Collateral Agent,
the Trustee and the Warrant Agent have duly executed this Agreement as of the
day and year first above set forth, and all Holders of Units shall become
parties hereto by and upon acceptance by them of delivery of Units issued in
accordance with the terms hereof.

                                   MORGAN STANLEY

                                   By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                   JPMORGAN CHASE BANK,
                                        as Agent

                                   By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                   JPMORGAN CHASE BANK,
                                        as Collateral Agent

                                   By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                   JPMORGAN CHASE BANK,
                                        as Trustee and Paying Agent under the
                                        Indenture

                                   By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                   JPMORGAN CHASE BANK,
                                        as Warrant Agent under the Warrant
                                        Agreement

                                   By:
                                        ----------------------------------------
                                        Name:
                                        Title:

<PAGE>

                                                                       EXHIBIT A

                           [FORM OF UNIT CERTIFICATE]

                                     [FACE]

         [IF THE UNIT CERTIFICATE IS TO BE A GLOBAL REGISTERED UNIT CERTIFICATE,
INSERT--This Unit Certificate is a global Unit Certificate within the meaning of
the Unit Agreement hereinafter referred to and is registered in the name of the
Depository Trust Company (the "Depositary") or a nominee of the Depositary.
Unless and until it is exchanged in whole or in part for Units in definitive
registered form, this Unit Certificate may not be transferred except as a whole
by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary).

         Unless this Unit Certificate is presented by an authorized
representative of The Depositary (55 Water Street, New York) to Morgan Stanley
or its agent for registration of transfer, exchange or payment, and any Unit
issued is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of the Depositary and any payment hereon is made
to Cede & Co. or such other entity as is requested by an authorized
representative of the Depositary, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY A PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.]

                                      A-1
<PAGE>

                                UNIT CERTIFICATE

                 (issuable in integral multiples of whole Units)

             Evidencing the Ownership of, or Rights and Obligations
                       of the Holder Under, the Securities
                                 Specified Below

              [Specify Securities Constituting Part of these Units]

                                                            CUSIP No. __________

Certificate No.:_____
Number of Units: [Up To](1)

         This Unit Certificate certifies that ______________________ (the
"Holder"), or [registered assigns](2), is the [registered](2) owner of [ ( )
Units](3) [the number of Units specified in Schedule A hereto.](1)

         Each Unit represents ownership by the Holder of [specify Securities
constituting parts of the Unit] [, subject to the pledge of such Debt Securities
by such Holder pursuant to the Unit Agreement (the "Unit Agreement") dated as of
November 1, 2004 among the Corporation, JPMorgan Chase Bank, as Agent and
Collateral Agent, as Trustee and Paying Agent under the Indenture referred to
therein, and as Warrant Agent under the Warrant Agreement referred to therein,
and the Holders from time to time of the Units described therein. Pursuant to
the Unit Agreement, the Debt Securities constituting part of the Units evidenced
hereby have been pledged to the Collateral Agent to secure the obligations of
the Holder under the Purchase Contract constituting part of such Units.](4)

         [For so long as the [Warrant] [Purchase Contract] underlying each Unit
represented hereby remains in effect such Unit shall not be separable into its
constituent parts and the rights and obligations of the Holder of such Unit in

-------------------------
         (1)  Insert in Global Unit Certificates.

         (2)  Insert in Registered Units.

         (3)  Insert in Definitive Unit Certificates.

         (4)  Insert in Registered Units consisting of Non-Separable Debt
Securities and Purchase Contracts.

                                      A-2
<PAGE>

respect of such constituent parts may be transferred and exchanged only as a
Unit.](5)

                        [Designated Security Register:](6)

                             [Other Terms of Units:]

            [INSERT APPROPRIATE DEBT SECURITY CERTIFICATE OR WARRANT
                           CERTIFICATE, AS APPLICABLE]

--------------------------------------------------------------------------------
|   Reference is hereby made to the further provisions of this certificate     |
|   set forth on the succeeding pages hereof, which further provisions         |
|   shall for all purposes have the same effect as if set forth at this        |
|   place.                                                                     |
--------------------------------------------------------------------------------

-------------------------
         (5)  Insert in non-separable Units.

         (6)  Insert in non-separable Registered Units.

                                      A-3
<PAGE>

                           [FORM OF PURCHASE CONTRACT
                      CONTEMPLATING SALE BY MORGAN STANLEY]

                                 MORGAN STANLEY

                   [Insert Designation of Purchase Contracts]

                              PURCHASE CONTRACT(S)

                           Purchase Contracts between

                                 Morgan Stanley

                                       and

                                ----------------
                             or registered assigns,
                       as holder hereunder (the "Holder")

         All capitalized terms used but not defined herein that are defined in
the Unit Agreement (described below) have the meanings set forth therein, and if
not defined therein, have the meaning set forth below.

<TABLE>
<S>                                                 <C>
=================================================== =================================================

                       Purchase Contract Property:
--------------------------------------------------- -------------------------------------------------

                                    Quantity:
--------------------------------------------------- -------------------------------------------------

                                   Purchase Price:
--------------------------------------------------- -------------------------------------------------

                                  Settlement Date:
--------------------------------------------------- -------------------------------------------------

   Date of Payment of Purchase Price, if different
                             from Settlement Date:
--------------------------------------------------- -------------------------------------------------

                                 Payment Location:
--------------------------------------------------- -------------------------------------------------

                             Method of Settlement:
--------------------------------------------------- -------------------------------------------------

                   Currency of Settlement Payment:
--------------------------------------------------- -------------------------------------------------

                     Authorized Number of Purchase
=================================================== =================================================
</TABLE>

                                      A-4
<PAGE>

<TABLE>
<S>                                                 <C>
=================================================== =================================================
                                        Contracts:
--------------------------------------------------- -------------------------------------------------

                         Aggregate Purchase Price:
--------------------------------------------------- -------------------------------------------------

                    Aggregate Quantity of Purchase
                                 Contract Property:
--------------------------------------------------- -------------------------------------------------

                                    Contract Fees:
--------------------------------------------------- -------------------------------------------------

                         Corporation Acceleration:
--------------------------------------------------- -------------------------------------------------

                            Holders' Acceleration:
--------------------------------------------------- -------------------------------------------------

                            Redemption Provisions:
--------------------------------------------------- -------------------------------------------------

                                      Other Terms:
=================================================== =================================================
</TABLE>

         Subject to the conditions hereinafter set forth, the Holder agrees to
purchase and Morgan Stanley, a corporation duly incorporated and existing under
the laws of the State of Delaware (the "Corporation"), agrees to sell, subject
to the terms of the Unit Agreement referred to below and as set forth herein, on
the Settlement Date, the Aggregate Quantity of Purchase Contract Property, for
the Purchase Price. The Purchase Contract(s) evidenced hereby shall not entitle
the Holder to purchase the Purchase Contract Property prior to the Settlement
Date.

         The Purchase Price for the Purchase Contract Property purchased
pursuant to the Purchase Contracts evidenced hereby shall be payable at the
Payment Location on the Settlement Date pursuant to the Method of Settlement in
the Currency of Settlement Payment.

         Each Purchase Contract evidenced hereby is one of a duly authorized
issue of not more than the Authorized Number of Purchase Contracts of the
Corporation relating to the purchase by holders of not more than the Aggregate
Quantity of Purchase Contract Property issued under the Unit Agreement, dated as
of November 1, 2004 (the "Unit Agreement"), among the Corporation, JPMorgan
Chase Bank, as Agent (the "Agent") and as Collateral Agent thereunder, as
Warrant Agent (the "Warrant Agent") under the Warrant Agreement referred to
therein, as Trustee (the "Trustee") and Paying Agent under the Indenture
referred to therein, and the holders from time to time of Units, to which Unit
Agreement and supplemental agreements thereto reference is hereby made for a
description of the respective rights, limitations of rights, obligations, duties
and immunities thereunder of the Agent, the Collateral Agent, the Corporation
and the Holders and of the terms upon which the Purchase Contracts are, and are
to be, executed, countersigned, executed on behalf of the Holder and delivered.

                                      A-5
<PAGE>

         The Agent may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents in connection with any transfer
or exchange of each Purchase Contract evidenced hereby. No service charge shall
be required for any such registration of transfer or exchange, but the
Corporation and the Agent may require payment of a sum sufficient to cover any
tax or other governmental charge imposed in connection with any registration of
transfer or exchange of Units.

         Upon registration of transfer of this Purchase Contract, the transferee
shall be bound (without the necessity of any other action on the part of such
transferee, except as may be required by the Agent pursuant to the Unit
Agreement), under the terms of the Unit Agreement and the Purchase Contracts
evidenced hereby and the transferor shall be released from the obligations under
the Purchase Contracts hereby. The Corporation covenants and agrees, and the
Holder, by his acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

         The extent to which, and the terms upon which, any cash or other
property (other than the Purchase Contract Property) is payable or deliverable
with respect to the Purchase Contracts evidenced hereby is described above under
"Contract Fees". The extent to which, and the terms upon which, the Corporation
may accelerate the obligations of the Corporation and the Holders of the
Purchase Contracts evidenced hereby is described above under "Corporation
Acceleration". The extent to which, and the terms upon which, the Holders of
such Purchase Contracts may accelerate the obligations of the Corporation and
the Holders of the Purchase Contracts is described above under "Holders'
Acceleration". The extent to which, and the terms upon which, the Corporation
may redeem the Purchase Contracts evidenced hereby is described above under
"Redemption Provisions".

         Subject to certain exceptions, the terms of the Purchase Contracts and
the provisions of the Unit Agreement may be amended with the consent of the
Holders of not less than a majority of the affected Outstanding Purchase
Contracts and certain Purchase Contract Defaults may be waived with the consent
of the Holders of a majority of the affected Outstanding Purchase Contracts.
Without the consent of any Holder of Units, the terms of the Unit Agreement the
Purchase Contracts may be amended to, among other things, cure any ambiguity, to
correct or supplement any provision in the Unit Agreement or Purchase Contract,
to add to covenants of the Corporation, Collateral Agent or Agent or to make any
other provisions with respect to matters or questions arising under the Unit
Agreement or the Purchase Contracts that do not adversely affect the interests
of the Holders in any material respect.

         Holders of the Purchase Contracts may not enforce the Unit Agreement or
such Purchase Contracts except as provided in the Unit Agreement.

                                      A-6
<PAGE>

         Any incorporator, or past, present or future stockholder, officer,
attorney-in-fact or director, as such, of the Corporation or of any successor
corporation shall not have any liability for any obligations of the Corporation
under the Purchase Contracts or the Unit Agreement or for any claim based on,
with respect to or by reason of such obligations or their creation. The Holder
by his acceptance hereof waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Purchase Contracts.

         The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

         Prior to due presentment of a Unit Certificate or Purchase Contract for
registration of transfer, the Corporation, the Trustee, the Agent, the Warrant
Agent and the Collateral Agent, and any agent of the Corporation, the Trustee,
the Agent, the Warrant Agent and the Collateral Agent may treat the Person in
whose name this Purchase Contract is registered as a party to the Purchase
Contracts evidenced hereby for the purpose of performance of such Purchase
Contracts and for all other purposes whatsoever, and neither the Corporation,
the Trustee, the Agent, the Warrant Agent and the Collateral Agent nor any such
agent shall be affected by notice to the contrary.

         The Holder, by his acceptance hereof, authorizes the Agent to execute
the Purchase Contracts evidenced hereby on his behalf, authorizes and directs
the Agent on his behalf to take such other action, and covenants and agrees to
take such other action, as may be necessary or appropriate, or as may be
required by the Agent, to effectuate the provisions of the Unit Agreement
relating to the purchase of the Purchase Contract Property [and the pledge of
the Debt Securities constituting part of the Unit of which this Purchase
Contract forms a part to the Collateral Agent on the Holder's behalf(7),]
appoints the agent as his attorney-in-fact for any and all such purposes, and
agrees to be bound by the terms thereof.

         The Purchase Contracts shall not, prior to the performance thereof,
entitle the Holder to any of the rights of a holder of the Purchase Contract
Property.

         No Purchase Contract evidenced hereby shall be valid or obligatory for
any purpose until countersigned and executed on behalf of the Holder by the
Agent, pursuant to the Unit Agreement.

--------------------------
         (7)   Insert in Registered Units consisting of Non-Separable Debt
Securities and Purchase Contracts.

                                      A-7
<PAGE>

         IN WITNESS WHEREOF, Morgan Stanley has caused this instrument to be
duly executed.

                                      MORGAN STANLEY

                                      By:
                                           -------------------------------------
                                           Name:
                                           Title:

JPMORGAN CHASE BANK,
     as Agent, and as attorney-in-fact of the
     Holder hereof

By:
    -------------------------------
    Authorized Officer

Countersigned

JPMORGAN CHASE BANK,
   as Agent
By:
    --------------------------------------------
    Authorized Officer

                                      A-8
<PAGE>

                           [FORM OF PURCHASE CONTRACT
                    CONTEMPLATING PURCHASE BY MORGAN STANLEY]

                                 MORGAN STANLEY

                   [Insert Designation of Purchase Contracts]

                              PURCHASE CONTRACT(S)

                           Purchase Contracts between
                                 Morgan Stanley
                                       and

                                ----------------
                             or registered assigns,
                       as holder hereunder (the "Holder")

All capitalized terms used but not defined herein that are defined in the Unit
Agreement (described below) have the meanings set forth therein, and if not
defined therein, have the meaning set forth below.

<TABLE>
<S>                                                 <C>
=================================================== =================================================

                       Purchase Contract Property:
--------------------------------------------------- -------------------------------------------------

                                         Quantity:
--------------------------------------------------- -------------------------------------------------

                                   Purchase Price:
--------------------------------------------------- -------------------------------------------------

                                  Settlement Date:
--------------------------------------------------- -------------------------------------------------

                                 Payment Location:
--------------------------------------------------- -------------------------------------------------

                             Method of Settlement:
--------------------------------------------------- -------------------------------------------------

            Method of Computing Settlement Amount:
--------------------------------------------------- -------------------------------------------------

                   Currency of Settlement Payment:
--------------------------------------------------- -------------------------------------------------

          Authorized Number of Purchase Contracts:
--------------------------------------------------- -------------------------------------------------

                         Aggregate Purchase Price:
--------------------------------------------------- -------------------------------------------------

                    Aggregate Quantity of Purchase
                                 Contract Property
=================================================== =================================================
</TABLE>

                                      A-9
<PAGE>

<TABLE>
<S>                                                 <C>
=================================================== =================================================

                                    Contract Fees:
--------------------------------------------------- -------------------------------------------------

                         Corporation Acceleration:
--------------------------------------------------- -------------------------------------------------

                            Holders' Acceleration:
--------------------------------------------------- -------------------------------------------------

                            Redemption Provisions:
--------------------------------------------------- -------------------------------------------------

                                      Other Terms:
=================================================== =================================================
</TABLE>

         Subject to the conditions hereinafter set forth, the Holder agrees to
sell and Morgan Stanley, a corporation duly incorporated and existing under the
laws of the State of Delaware (the "Corporation"), agrees to purchase, subject
to the terms of the Unit Agreement referred to below and as set forth herein, on
the Settlement Date, the Aggregate Quantity of Purchase Contract Property, for
the Purchase Price. The Purchase Contract(s) evidenced hereby shall not entitle
the Corporation to purchase the Purchase Contract Property, or the Holder to
receive the Purchase Price, prior to the Settlement Date.

         If so indicated under Method of Settlement above, the parties'
obligations under the Purchase Contracts evidenced hereby may be settled by
payment of the Settlement Amount by the Corporation or the Holder, as the case
may be. The Settlement Amount payable pursuant to the Purchase Contracts
evidenced hereby, as determined in accordance with the Method of Computing
Settlement Amount, shall be payable on the Settlement Date in the Currency of
Settlement Payment pursuant to the Method of Settlement at the Payment Location;
provided that any Settlement Amount payable by Holders pursuant to the Purchase
Contracts evidenced hereby may be deducted from the principal payment that may
be payable by the Corporation with respect to any Debt Securities comprised by
the Units of which such Purchase Contacts are a part. If the Corporation instead
elects to pay the Purchase Price, the Purchase Price for the Purchase Contract
Property purchased pursuant to the Purchase Contracts evidenced hereby shall be
payable at the Payment Location on the Settlement Date pursuant to the Method of
Settlement in the Currency of Settlement Payment.

         Each Purchase Contract evidenced hereby is one of a duly authorized
issue of not more than the Authorized Number of Purchase Contracts of the
Corporation issued under the Unit Agreement, dated as of November 1, 2004 (the
"Unit Agreement"), among the Corporation, JPMorgan Chase Bank, as Agent (the
"Agent") and as Collateral Agent thereunder, as Warrant Agent (the "Warrant
Agent") under the Warrant Agreement referred to therein, as Trustee (the
"Trustee") and Paying Agent under the Indenture referred to therein, and the
holders from time to time of Units, to which Unit Agreement and supplemental
agreements thereto reference is hereby made for a description of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of
the

                                      A-10
<PAGE>

Agent, the Corporation and the Holders and of the terms upon which the Purchase
Contracts are, and are to be, executed, countersigned, executed on behalf of the
Holder and delivered.

         The Agent may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents in connection with any transfer
or exchange of each Purchase Contract evidenced hereby. No service charge shall
be required for any such registration of transfer or exchange, but the
Corporation and the Agent may require payment of a sum sufficient to cover any
tax or other governmental charge imposed in connection with any registration of
transfer or exchange of Units.

         Upon registration of transfer of this Purchase Contract, the transferee
shall be bound (without the necessity of any other action on the part of such
transferee, except as may be required by the Agent pursuant to the Unit
Agreement), under the terms of the Unit Agreement and the Purchase Contracts
evidenced hereby and the transferor shall be released from the obligations under
the Purchase Contracts hereby. The Corporation covenants and agrees, and the
Holder, by his acceptance hereof, likewise covenants and agrees, to be bound by
the provisions of this paragraph.

         The extent to which, and the terms upon which, any cash or other
property (other than the Purchase Contract Property) is payable or deliverable
with respect to the Purchase Contracts evidenced hereby is described above under
"Contract Fees". The extent to which, and the terms upon which, the Corporation
may accelerate the obligations of the Corporation and the Holders of the
Purchase Contracts evidenced hereby is described above under "Corporation
Acceleration". The extent to which, and the terms upon which, the Holders of
such Purchase Contracts may accelerate the obligations of the Corporation and
the Holders of the Purchase Contracts is described above under "Holders'
Acceleration". The extent to which, and the terms upon which, the Corporation
may redeem the Purchase Contracts evidenced hereby is described above under
"Redemption Provisions".

         Subject to certain exceptions, the terms of the Purchase Contracts and
the provisions of the Unit Agreement may be amended with the consent of the
Holders of not less than a majority of the affected Outstanding Purchase
Contracts and certain Purchase Contract Defaults may be waived with the consent
of the Holders of a majority of the affected Outstanding Purchase Contracts.
Without the consent of any Holder of Units, the terms of the Unit Agreement or
the Purchase Contracts may be amended to, among other things, cure any
ambiguity, to correct or supplement any provision in the Unit Agreement or
Purchase Contract, to add to the covenants of the Corporation, Collateral Agent
or Agent or to make any other provisions with respect to matters or questions
arising under

                                      A-11
<PAGE>

the Unit Agreement or the Purchase Contracts that do not adversely affect the
interests of the Holders in any material respect.

         Holders of the Purchase Contracts may not enforce the Unit Agreement or
such Purchase Contracts except as provided in the Unit Agreement.

         Any incorporator, or past, present or future stockholder, officer,
attorney-in-fact or director, as such, of the Corporation or any successor
corporation shall not have any liability for any obligations of the Corporation
under the Purchase Contracts or the Unit Agreement or for any claim based on,
with respect to or by reason of such obligations or their creation. The Holder
by his acceptance hereof waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Purchase Contracts.

         The Purchase Contracts shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.

         Prior to due presentment of a Unit Certificate or Purchase Contract for
registration of transfer, the Corporation, the Agent, the Trustee, the Warrant
Agent and the Collateral Agent, and any agent of the Corporation, the Agent, the
Trustee, the Warrant Agent and the Collateral Agent may treat the Person in
whose name this Purchase Contract is registered as a party to the Purchase
Contracts evidenced hereby for the purpose of performance of such Purchase
Contracts and for all other purposes whatsoever, and neither the Corporation,
the Agent, the Trustee, the Warrant Agent and the Collateral Agent nor any such
agent shall be affected by notice to the contrary.

         The Holder, by his acceptance hereof, authorizes the Agent to execute
the Purchase Contracts evidenced hereby on his behalf, authorizes and directs
the Agent on his behalf to take such other action, and covenants and agrees to
take such other action, as may be necessary or appropriate, or as may be
required by the Agent, to effectuate the provisions of the Unit Agreement
relating to the purchase of the Purchase Contract Property [and the pledge of
the Debt Securities constituting part of the Unit of which this Purchase
Contract forms a part to the Collateral Agent on the Holder's behalf,](8)
appoints the agent as his attorney-in-fact for any and all such purposes, and
agrees to be bound by the terms thereof.

         No Purchase Contract evidenced hereby shall be valid or obligatory for
any purpose until countersigned and executed on behalf of the Holder by the
Agent, pursuant to the Unit Agreement.

---------------------------
         (8)    Insert in Registered Units consisting of Debt Securities and
Purchase Contracts.

                                      A-12
<PAGE>

         IN WITNESS WHEREOF, Morgan Stanley has caused this instrument to be
duly executed.

                                        MORGAN STANLEY
                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

JPMORGAN CHASE BANK,
     as Agent, and as attorney-in-fact of the
     Holder hereof

By:
    --------------------------------------------
    Authorized Officer

Countersigned

JPMORGAN CHASE BANK,
   as Agent

By:
    --------------------------------------------
    Authorized Officer

                                      A-13
<PAGE>

              [IF PURCHASE CONTRACT IS A GLOBAL PURCHASE CONTRACT,
                                    INSERT]

                                                                      SCHEDULE A

                                     GLOBAL
                                PURCHASE CONTRACT
                              SCHEDULE OF EXCHANGES

         The initial number of Purchase Contracts represented by this Global
Purchase Contract is __________. In accordance with the Unit Agreement pursuant
to which this Global Purchase Contract has been issued, the following (A)
exchanges of [the number of Purchase Contracts indicated below for a like number
of Purchase Contracts represented by a Global Purchase Contract that has been
separated from a Unit (a "Separated Purchase Contract")](1) [the number of
Purchase Contracts that had been represented by a Global Purchase Contract that
is part of a Unit (an "Attached Unit Purchase Contract") for a like number of
Purchase Contracts represented by this Purchase Contract](2) and (B)
settlements of the number of Purchase Contracts indicated below have been made:

<TABLE>
============== =========== ============ =========== =========== ============ =========== ============
                                        Number of
                                        Attached
                                        Unit
                                        Purchase
                                        Contracts
                                        Exchanged
                                        for
                                        Purchase
               Number      Reduced      Contracts   Increased                Reduced
               Exchanged   Number       represented Number                   Number
               for         Outstanding  by this     Outstanding Number of    Outstanding Notation
Date of        Separated   Following    Separated   Following   Purchase     Following   Made by or
Exchange or    Purchase    Such         Purchase    Such        Contracts    Such        on Behalf
Settlement     Contract(1) Exchange(1)  Contract(2) Exchange(2) Settled      Settlement  of Agent
-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------
<S>            <C>         <C>          <C>         <C>         <C>          <C>         <C>

-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------

-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------

-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------

-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------

-------------- ----------- ------------ ----------- ----------- ------------ ----------- ------------

============== =========== ============ =========== =========== ============ =========== ============
</TABLE>

------------------------------
         (1)   Applies only if this Purchase Contract is part of a Unit.

         (2)   Applies only if this Purchase Contract has been separated from a
Unit.

                                      A-14
<PAGE>

              [IF PURCHASE CONTRACT IS SEPARATED FROM UNIT, INSERT]

                              [FORM OF ASSIGNMENT]

FOR VALUE RECEIVED, the undersigned assigns and transfers the Purchase
Contract(s) represented by this Certificate to:

_________________ (Insert assignee's social security or tax identification
number)

_________________  (Insert address and zip code of assignee)

and irrevocably appoints _________________

agent to transfer this Certificate on the books of the Corporation. The agent
may substitute another to act for him or her.

Date:

Signature(s):

  ----------------------------------------------------------------------------

  ----------------------------------------------------------------------------
    (Sign exactly as your name appears on the other side of this Certificate)

NOTICE: The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.]

                                      A-15
<PAGE>

           [IF UNIT CERTIFICATE IS A GLOBAL UNIT CERTIFICATE, INSERT]

                                                                      SCHEDULE A

                                     GLOBAL
                                UNIT CERTIFICATE
                              SCHEDULE OF EXCHANGES

         The initial number of Units represented by this Global Unit Certificate
is _________. In accordance with the Unit Agreement pursuant to which this
Global Unit Certificate has been issued, the following reductions of the number
of Units represented by this Global Unit Certificate have occurred:

<TABLE>
================== ================ =============== ================ =============== ================

                   Number Reduced
                   by Separation                                     Number of
                   of the           Number          Number Reduced   Units           Notation Made
                   Component        Reduced by      by Settlement    Outstanding     by or on
                   Parts of this    Exercise of     of Purchase      Following any   Behalf of
Date of Reduction  Unit             Warrants        Contracts        such Reduction  Paying Agent
------------------ ---------------- --------------- ---------------- --------------- ----------------
<S>                <C>              <C>             <C>              <C>             <C>

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

------------------ ---------------- --------------- ---------------- --------------- ----------------

================== ================ =============== ================ =============== ================
</TABLE>

                                      A-16
<PAGE>

                     [IF UNIT IS A DEFINITIVE UNIT, INSERT -

                              [FORM OF ASSIGNMENT]

FOR VALUE RECEIVED, the undersigned assigns and transfers the Unit(s)
represented by this Certificate to:

_________________ (Insert assignee's social security or tax identification
number)

_________________ (Insert address and zip code of assignee)

and irrevocably appoints _________________

agent to transfer this Unit Certificate on the books of the Corporation. The
agent may substitute another to act for him or her.

Date:

Signature(s):

  ----------------------------------------------------------------------------

  ----------------------------------------------------------------------------
   (Sign exactly as your name appears on the other side of this Certificate)

NOTICE: The signature(s) should be guaranteed by an eligible guarantor
institution (banks, stockbrokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program),
pursuant to S.E.C. Rule 17Ad-15.]

                                      A-17

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