Document:

Exhibit 4.1

                         FORM OF FIXED RATE SENIOR NOTE

REGISTERED                                                           REGISTERED
No. FXR-1                                                            U.S. $
                                                                     CUSIP:

     Unless this certificate is presented by an authorized representative of The
Depository Trust Company (55 Water Street, New York, New York) to the issuer or
its agent for registration of transfer, exchange or payment, and any certificate
issued is registered in the name of Cede & Co. or such other name as requested
by an authorized representative of The Depository Trust Company and any payment
is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof,
Cede & Co., has an interest herein.

<PAGE>

                                 MORGAN STANLEY
                    SENIOR GLOBAL MEDIUM-TERM NOTES, SERIES F
                                  (Fixed Rate)

                  % CAPITAL PROTECTED NOTE DUE OCTOBER 30, 2010
                BASED ON THE VALUE OF THE S&P MIDCAP 400(R) INDEX

<TABLE>
--------------------------------------------------------------------------------------------------------------------
<S>                           <C>                          <C>                         <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION DATE:     INTEREST RATE:               MATURITY DATE:
                                 N/A                               % per annum             See "Maturity Date"
                                                              (equivalent to               below.
                                                              $      per annum per
                                                              note)
--------------------------------------------------------------------------------------------------------------------
INTEREST ACCRUAL DATE:        INITIAL REDEMPTION           INTEREST PAYMENT DATE(S):    OPTIONAL
                                 PERCENTAGE: N/A              See "Interest Payment        REPAYMENT
                                                              Dates" below.                DATE(S):  N/A
--------------------------------------------------------------------------------------------------------------------
SPECIFIED CURRENCY: U.S.      ANNUAL REDEMPTION            INTEREST PAYMENT PERIOD:     APPLICABILITY OF MODIFIED
   dollars                       PERCENTAGE REDUCTION: N/A    Semiannually                 PAYMENT UPON
                                                                                           ACCELERATION OR
                                                                                           REDEMPTION: See
                                                                                           "Alternate Exchange
                                                                                           Calculation in Case of
                                                                                           an Event of Default"
                                                                                           below.
--------------------------------------------------------------------------------------------------------------------
IF SPECIFIED CURRENCY OTHER   REDEMPTION NOTICE PERIOD:    APPLICABILITY OF ANNUAL      If yes, state Issue Price:
   THAN U.S. DOLLARS, OPTION     N/A                          INTEREST PAYMENTS: N/A       N/A
   TO ELECT PAYMENT IN U.S.
   DOLLARS: N/A
--------------------------------------------------------------------------------------------------------------------
EXCHANGE RATE AGENT: N/A      TAX REDEMPTION AND PAYMENT   PRICE APPLICABLE UPON        ORIGINAL YIELD TO
                                 OF ADDITIONAL AMOUNTS:       OPTIONAL REPAYMENT: N/A      MATURITY: N/A
                                 N/A
--------------------------------------------------------------------------------------------------------------------
OTHER PROVISIONS:             IF YES, STATE INITIAL
   See below.                    OFFERING DATE: N/A
--------------------------------------------------------------------------------------------------------------------
</TABLE>

Maturity Date.................   October 30, 2010, subject to extension in
                                 accordance with the following paragraph in the
                                 event of a Market Disruption Event on the final
                                 Determination Date for calculating the Final
                                 Average Index Value.

                                 If, due to a Market Disruption Event or
                                 otherwise, the final Determination Date is
                                 postponed so that it falls less than two
                                 scheduled Trading Days prior to the scheduled
                                 Maturity Date, the Maturity Date shall be the
                                 second scheduled Trading Day following the
                                 final

                                      A-2
<PAGE>

                                 Determination Date as postponed. See
                                 "Determination Dates" below.

                                 In the event that the final Determination Date
                                 is postponed due to a Market Disruption Event
                                 or otherwise, the Issuer shall give notice of
                                 such postponement as promptly as possible, and
                                 in no case later than one Business Day
                                 following the scheduled final Determination
                                 Date, (i) to the holder of this Note by mailing
                                 notice of such postponement by first class
                                 mail, postage prepaid, to the holder's last
                                 address as it shall appear upon the registry
                                 books, (ii) to the Trustee by telephone or
                                 facsimile confirmed by mailing such notice to
                                 the Trustee by first class mail, postage
                                 prepaid, at its New York office and (iii) to
                                 The Depository Trust Company (the "Depositary")
                                 by telephone or facsimile confirmed by mailing
                                 such notice to the Depositary by first class
                                 mail, postage prepaid. Any notice that is
                                 mailed in the manner herein provided shall be
                                 conclusively presumed to have been duly given,
                                 whether or not the holder of this Note receives
                                 the notice.

Interest Payment Dates........   Each April 30 and October 30, commencing
                                 October 30, 2005 to and including the Maturity
                                 Date.

                                 If the scheduled Maturity Date is postponed due
                                 to a Market Disruption Event or otherwise, the
                                 Issuer shall pay interest on the Maturity Date
                                 as postponed rather than on October 30, 2010,
                                 but no interest shall accrue on this Note or on
                                 such payment during the period from or after
                                 the scheduled Maturity Date.

Record Date...................   Notwithstanding the definition of "Record Date"
                                 on page 13 hereof, the Record Date for each
                                 Interest Payment Date, including the Interest
                                 Payment Date scheduled to occur on the Maturity
                                 Date, shall be the date 15 calendar days prior
                                 to such scheduled Interest Payment Date,
                                 whether or not that date is a Business Day.

Minimum Denominations.........   $10

Issue Price...................   $10

                                      A-3
<PAGE>

Maturity Redemption Amount....   At maturity, upon delivery of this Note to the
                                 Trustee, the Issuer shall pay with respect to
                                 each $10 principal amount of this Note an
                                 amount in cash equal to the $10 principal
                                 amount of this Note plus the Supplemental
                                 Redemption Amount, if any, as determined by the
                                 Calculation Agent.

                                 The Issuer shall, or shall cause the
                                 Calculation Agent to, (i) provide written
                                 notice to the Trustee at its New York office,
                                 on which notice the Trustee may conclusively
                                 rely, and to the Depositary of the Maturity
                                 Redemption Amount on or prior to 10:30 a.m. on
                                 the Trading Day preceding the Maturity Date
                                 (but if such Trading Day is not a Business Day,
                                 prior to the close of business on the Business
                                 Day preceding the Maturity Date) and (ii)
                                 deliver the aggregate cash amount due with
                                 respect to this Note to the Trustee for
                                 delivery to the holder of this Note on the
                                 Maturity Date. See "Discontinuance of the S&P
                                 MidCap 400 Index; Alteration of Method of
                                 Calculation" below.

Supplemental Redemption
  Amount......................   The Supplemental Redemption Amount shall be
                                 equal to the amount, if any, by which (i) the
                                 Index-linked Performance Amount exceeds (ii)
                                 $           .

Index-linked Performance
  Amount......................   The Index-linked Performance Amount shall be
                                 equal to (i) $10 times (ii) the Index Percent
                                 Change. The Calculation Agent shall calculate
                                 the Index-linked Performance Amount on the
                                 final Determination Date.

Index Percent Change..........   The Index Percent Change is a fraction, the
                                 numerator of which shall be the Final Average
                                 Index Value minus the Initial Index Value and
                                 the denominator of which shall be the Initial
                                 Index Value. The Index Percent Change is
                                 described by the following formula:

<TABLE>
<S>                                                      <C>                        <C>
                                 Index Percent Change =  Final Average Index Value - Initial Index Value
                                                         -----------------------------------------------
                                                                     Initial Index Value
</TABLE>

Initial Index Value...........

                                      A-4
<PAGE>

Final Average Index Value.....   The arithmetic average of the Index Closing
                                 Values on the six Determination Dates, as
                                 calculated by the Calculation Agent on the
                                 final Determination Date.

Index Closing Value...........   The Index Closing Value on any Trading Day
                                 shall equal the closing value of the Index (as
                                 defined below) or any Successor Index (as
                                 defined under "Discontinuance of the S&P MidCap
                                 400 Index; Alteration of Method of Calculation"
                                 below) published at the regular weekday close
                                 of trading on that Trading Day. In certain
                                 circumstances, the Index Closing Value shall be
                                 based on the alternate calculation of the Index
                                 described under "Determination Dates" and
                                 "Discontinuance of the S&P MidCap Index;
                                 Alteration of Method of Calculation."

                                 In this Note, references to the Index shall
                                 include any Successor Index, unless the context
                                 requires otherwise.

Determination Dates...........   The Determination Dates shall be October 30,
                                 2005, October 30, 2006, October 30, 2007,
                                 October 30, 2008, October 30, 2009, and October
                                 28, 2010, in each such case subject to
                                 adjustment for non-Trading Days or Market
                                 Disruption Events as described in the following
                                 paragraphs in this section.

                                 If any of the first five scheduled
                                 Determination Dates is not a Trading Day or if
                                 a Market Disruption Event occurs on any such
                                 date, such Determination Date shall be the
                                 immediately succeeding Trading Day during which
                                 no Market Disruption Event shall have occurred;
                                 provided that if a Market Disruption Event has
                                 occurred on each of the five Trading Days
                                 immediately succeeding any of the first five
                                 scheduled Determination Dates, the Calculation
                                 Agent shall determine the applicable Index
                                 Closing Value on such fifth succeeding Trading
                                 Day in accordance with the formula for
                                 calculating the value of the Index last in
                                 effect prior to the commencement of the Market
                                 Disruption Event, without rebalancing or
                                 substitution, using the closing price (or, if
                                 trading in the relevant securities has been
                                 materially suspended or materially limited, its
                                 good faith estimate of the closing price that
                                 would have prevailed but for such suspension or

                                      A-5
<PAGE>

                                 limitation) on such fifth succeeding Trading
                                 Day of each security most recently comprising
                                 the Index.

                                 If October 28, 2010 (the final scheduled
                                 Determination Date) is not a Trading Day or if
                                 there is a Market Disruption Event on such day,
                                 the final Determination Date shall be the
                                 immediately succeeding Trading Day during which
                                 no Market Disruption Event shall have occurred.

Index.........................   The S&P MidCap 400 Index is published by
                                 Standard & Poor's Corporation ("S&P").

Trading Day...................   A day, as determined by the Calculation Agent,
                                 on which trading is generally conducted on the
                                 New York Stock Exchange, Inc. ("NYSE"), the
                                 American Stock Exchange LLC, the Nasdaq
                                 National Market, the Chicago Mercantile
                                 Exchange and the Chicago Board of Options
                                 Exchange and in the over-the-counter market for
                                 equity securities in the United States.

Market Disruption Event.......   Market Disruption Event means, with respect to
                                 the Index, the occurrence or existence of a
                                 suspension, absence or material limitation of
                                 trading of stocks then constituting 20 percent
                                 or more of the level of the Index (or the
                                 Successor Index) on the Relevant Exchange(s)
                                 for such securities for more than two hours of
                                 trading or during the one-half hour period
                                 preceding the close of the principal trading
                                 session on such Relevant Exchange(s); or a
                                 breakdown or failure in the price and trade
                                 reporting systems of any Relevant Exchange as a
                                 result of which the reported trading prices for
                                 stocks then constituting 20 percent or more of
                                 the level of the Index (or the Successor Index)
                                 during the last one-half hour preceding the
                                 close of the principal trading session on such
                                 Relevant Exchange(s) are materially inaccurate;
                                 or the suspension, material limitation or
                                 absence of trading on any major securities
                                 market for trading in futures or options
                                 contracts or exchange traded funds related to
                                 the Index (or the Successor Index) for more
                                 than two hours of trading or during the
                                 one-half hour period preceding the close of the
                                 principal trading session on such market, in
                                 each case as determined by the Calculation
                                 Agent in its sole discretion.

                                      A-6
<PAGE>

                                 For the purpose of determining whether a Market
                                 Disruption Event exists at any time, if trading
                                 in a security included in the Index is
                                 materially suspended or materially limited at
                                 that time, then the relevant percentage
                                 contribution of that security to the value of
                                 the Index shall be based on a comparison of (x)
                                 the portion of the value of the Index
                                 attributable to that security relative to (y)
                                 the overall value of the Index, in each case
                                 immediately before that suspension or
                                 limitation.

                                 For purposes of determining whether a Market
                                 Disruption Event has occurred: (1) a limitation
                                 on the hours or number of days of trading shall
                                 not constitute a Market Disruption Event if it
                                 results from an announced change in the regular
                                 business hours of the relevant exchange or
                                 market, (2) a decision to permanently
                                 discontinue trading in the relevant futures or
                                 options contract or exchange traded fund shall
                                 not constitute a Market Disruption Event, (3)
                                 limitations pursuant to the rules of any
                                 Relevant Exchange similar to NYSE Rule 80A (or
                                 any applicable rule or regulation enacted or
                                 promulgated by any other self-regulatory
                                 organization or any government agency of scope
                                 similar to NYSE Rule 80A as determined by the
                                 Calculation Agent) on trading during
                                 significant market fluctuations shall
                                 constitute a suspension, absence or material
                                 limitation of trading, (4) a suspension of
                                 trading in futures or options contracts on the
                                 Index by the primary securities market trading
                                 in such contracts by reason of (a) a price
                                 change exceeding limits set by such exchange or
                                 market, (b) an imbalance of orders relating to
                                 such contracts or (c) a disparity in bid and
                                 ask quotes relating to such contracts shall
                                 constitute a suspension, absence or material
                                 limitation of trading in futures or options
                                 contracts related to the Index and (5) a
                                 "suspension, absence or material limitation of
                                 trading" on any Relevant Exchange or on the
                                 primary market on which futures or options
                                 contracts related to the Index are traded shall
                                 not include any time when such market is itself
                                 closed for trading under ordinary
                                 circumstances.

                                      A-7
<PAGE>

Relevant Exchange.............   Relevant Exchange means the primary exchange or
                                 market of trading for any security then
                                 included in the Index or any Successor Index.

Alternate Exchange
  Calculation in Case of
  an Event of Default.........   In case an event of default with respect to
                                 this Note shall have occurred and be
                                 continuing, the amount declared due and payable
                                 for each $10 principal amount of this Note upon
                                 any acceleration of this Note (the
                                 "Acceleration Amount") shall be equal to (i)
                                 accrued but unpaid interest to but excluding
                                 the date of acceleration plus (ii) the Maturity
                                 Redemption Amount determined (A) as though the
                                 Index Closing Value for any Determination Date
                                 scheduled to occur on or after such date of
                                 acceleration were the Index Closing Value on
                                 the date of acceleration and (B) by subtracting
                                 $           from the Index-linked Performance
                                 Amount to derive the Supplemental Redemption
                                 Amount.

                                 If the maturity of this Note is accelerated
                                 because of an event of default as described
                                 above, the Issuer shall, or shall cause the
                                 Calculation Agent to, provide written notice to
                                 the Trustee at its New York office, on which
                                 notice the Trustee may conclusively rely, and
                                 to the Depositary of the Acceleration Amount
                                 and the aggregate cash amount due with respect
                                 to this Note as promptly as possible and in no
                                 event later than two Business Days after the
                                 date of acceleration.

Calculation Agent.............   Morgan Stanley & Co. Incorporated and its
                                 successors ("MS & Co.")

                                 All determinations made by the Calculation
                                 Agent shall be at the sole discretion of the
                                 Calculation Agent and shall, in the absence of
                                 manifest error, be conclusive for all purposes
                                 and binding on the holder of this Note, the
                                 Trustee and the Issuer.

                                 All calculations with respect to the Initial
                                 Index Value, the Index Closing Values, the
                                 Final Average Index Value, the Supplemental
                                 Redemption Amount, if any, and the Index-linked
                                 Performance Amount shall be made by the
                                 Calculation Agent and shall be rounded to the
                                 nearest one hundred-thousandth, with five
                                 one-millionths rounded upward (e.g., .876545
                                 would be

                                      A-8
<PAGE>

                                 rounded to .87655); all dollar amounts related
                                 to determination of the Supplemental Redemption
                                 Amount and the Maturity Redemption Amount
                                 payable per Note shall be rounded to the
                                 nearest ten-thousandth, with five one
                                 hundred-thousandths rounded upward (e.g.,
                                 .76545 would be rounded up to .7655); and all
                                 dollar amounts paid on the aggregate principal
                                 amount of this Note shall be rounded to the
                                 nearest cent, with one-half cent rounded
                                 upward.

Discontinuance of the S&P
  MidCap 400 Index;
  Alteration of Method
  of Calculation..............   If S&P discontinues publication of the Index
                                 and S&P or another entity publishes a successor
                                 or substitute index that the Calculation Agent
                                 determines, in its sole discretion, to be
                                 comparable to the discontinued index (such
                                 index being referred to herein as a "Successor
                                 Index"), then any subsequent Index Closing
                                 Value shall be determined by reference to the
                                 value of such Successor Index at the regular
                                 weekday close of trading on the Trading Day
                                 that any Index Closing Value is to be
                                 determined.

                                 Upon any selection by the Calculation Agent of
                                 a Successor Index, the Calculation Agent shall
                                 cause written notice thereof to be furnished to
                                 the Trustee, to the Issuer and to the
                                 Depositary, as holder of this Note, within
                                 three Trading Days of such selection.

                                 If S&P discontinues publication of the Index
                                 prior to, and such discontinuance is continuing
                                 on, the date that any Index Closing Value is to
                                 be determined and MS & Co., as the Calculation
                                 Agent, determines, in its sole discretion, that
                                 no Successor Index is available at such time,
                                 then the Calculation Agent shall determine the
                                 Index Closing Value for such date in accordance
                                 with the formula for calculating the Index last
                                 in effect prior to such discontinuance, without
                                 rebalancing or substitution, using the closing
                                 price (or, if trading in the relevant
                                 securities has been materially suspended or
                                 materially limited, its good faith estimate of
                                 the closing price that would have prevailed but
                                 for such suspension or limitation) at the close
                                 of the principal trading session on such date
                                 of each security most

                                      A-9
<PAGE>

                                 recently comprising such Index on the Relevant
                                 Exchange.

                                 If at any time the method of calculating the
                                 Index or a Successor Index, or the value
                                 thereof, is changed in a material respect, or
                                 if the Index or a Successor Index is in any
                                 other way modified so that such index does not,
                                 in the opinion of MS & Co., as the Calculation
                                 Agent, fairly represent the value of the Index
                                 or such Successor Index had such changes or
                                 modifications not been made, then, from and
                                 after such time, the Calculation Agent shall,
                                 at the close of business in New York City on
                                 each date on which the Index Closing Value is
                                 to be determined, make such calculations and
                                 adjustments as, in the good faith judgment of
                                 the Calculation Agent, may be necessary in
                                 order to arrive at a value of a stock index
                                 comparable to the Index or such Successor
                                 Index, as the case may be, as if such changes
                                 or modifications had not been made, and the
                                 Calculation Agent shall calculate the Index
                                 Closing Value and Index-linked Performance
                                 Amount with reference to the Index or such
                                 Successor Index, as adjusted. Accordingly, if
                                 the method of calculating the Index or a
                                 Successor Index is modified so that the value
                                 of such index is a fraction of what it would
                                 have been if it had not been modified (e.g.,
                                 due to a split in the index), then the
                                 Calculation Agent shall adjust such index in
                                 order to arrive at a value of the Index or such
                                 Successor Index as if it had not been modified
                                 (i.e., as if such split had not occurred).

                                      A-10
<PAGE>

     Morgan Stanley, a Delaware corporation (together with its successors and
assigns, the "Issuer"), for value received, hereby promises to pay to CEDE &
CO., or registered assignees, the amount of cash, as determined in accordance
with the provisions set forth under "Maturity Redemption Amount" above, due with
respect to the principal sum of U.S.$             (UNITED STATES DOLLARS
                                        ) on the Maturity Date specified above
(except to the extent redeemed or repaid prior to maturity) and to pay interest
thereon at the Interest Rate per annum specified above, from and including the
Interest Accrual Date specified above until the principal hereof is paid or duly
made available for payment weekly, monthly, quarterly, semiannually or annually
in arrears as specified above as the Interest Payment Period on each Interest
Payment Date (as specified above), commencing on the Interest Payment Date next
succeeding the Interest Accrual Date specified above, and at maturity (or on any
redemption or repayment date); provided, however, that if the Interest Accrual
Date occurs between a Record Date, as defined below, and the next succeeding
Interest Payment Date, interest payments will commence on the second Interest
Payment Date succeeding the Interest Accrual Date to the registered holder of
this Note on the Record Date with respect to such second Interest Payment Date;
and provided, further, that if this Note is subject to "Annual Interest
Payments," interest payments shall be made annually in arrears and the term
"Interest Payment Date" shall be deemed to mean the first day of March in each
year.

     Interest on this Note will accrue from and including the most recent date
to which interest has been paid or duly provided for, or, if no interest has
been paid or duly provided for, from and including the Interest Accrual Date,
until but excluding the date the principal hereof has been paid or duly made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, subject to certain exceptions
described herein, be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the date 15
calendar days prior to such Interest Payment Date (whether or not a Business Day
(as defined below)) (each such date, a "Record Date"); provided, however, that
interest payable at maturity (or any redemption or repayment date) will be
payable to the person to whom the principal hereof shall be payable. As used
herein, "Business Day" means any day, other than a Saturday or Sunday, (a) that
is neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulation to close (x) in The City of New York
or (y) if this Note is denominated in a Specified Currency other than U.S.
dollars, euro or Australian dollars, in the principal financial center of the
country of the Specified Currency, or (z) if this Note is denominated in
Australian dollars, in Sydney and (b) if this Note is denominated in euro, that
is also a day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer System ("TARGET") is operating (a "TARGET Settlement Day").

     Payment of the principal of this Note, any premium and the interest due at
maturity (or any redemption or repayment date), unless this Note is denominated
in a Specified Currency other than U.S. dollars and is to be paid in whole or in
part in such Specified Currency, will be made in immediately available funds
upon surrender of this Note at the office or agency of the Paying Agent, as
defined on the reverse hereof, maintained for that purpose in the Borough of
Manhattan, The City of New York, or at such other paying agency as the Issuer
may determine,

                                      A-11
<PAGE>

in U.S. dollars. U.S. dollar payments of interest, other than interest due at
maturity or on any date of redemption or repayment, will be made by U.S. dollar
check mailed to the address of the person entitled thereto as such address shall
appear in the Note register. A holder of U.S. $10,000,000 (or the equivalent in
a Specified Currency) or more in aggregate principal amount of Notes having the
same Interest Payment Date, the interest on which is payable in U.S. dollars,
shall be entitled to receive payments of interest, other than interest due at
maturity or on any date of redemption or repayment, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received by the Paying Agent in writing not less than 15 calendar days prior to
the applicable Interest Payment Date.

     If this Note is denominated in a Specified Currency other than U.S.
dollars, and the holder does not elect (in whole or in part) to receive payment
in U.S. dollars pursuant to the next succeeding paragraph, payments of interest,
principal or any premium with regard to this Note will be made by wire transfer
of immediately available funds to an account maintained by the holder hereof
with a bank located outside the United States if appropriate wire transfer
instructions have been received by the Paying Agent in writing, with respect to
payments of interest, on or prior to the fifth Business Day after the applicable
Record Date and, with respect to payments of principal or any premium, at least
ten Business Days prior to the Maturity Date or any redemption or repayment
date, as the case may be; provided that, if payment of interest, principal or
any premium with regard to this Note is payable in euro, the account must be a
euro account in a country for which the euro is the lawful currency, provided,
further, that if such wire transfer instructions are not received, such payments
will be made by check payable in such Specified Currency mailed to the address
of the person entitled thereto as such address shall appear in the Note
register; and provided, further, that payment of the principal of this Note, any
premium and the interest due at maturity (or on any redemption or repayment
date) will be made upon surrender of this Note at the office or agency referred
to in the preceding paragraph.

     If so indicated on the face hereof, the holder of this Note, if denominated
in a Specified Currency other than U.S. dollars, may elect to receive all or a
portion of payments on this Note in U.S. dollars by transmitting a written
request to the Paying Agent, on or prior to the fifth Business Day after such
Record Date or at least ten Business Days prior to the Maturity Date or any
redemption or repayment date, as the case may be. Such election shall remain in
effect unless such request is revoked by written notice to the Paying Agent as
to all or a portion of payments on this Note at least five Business Days prior
to such Record Date, for payments of interest, or at least ten calendar days
prior to the Maturity Date or any redemption or repayment date, for payments of
principal, as the case may be.

     If the holder elects to receive all or a portion of payments of principal
of, premium, if any, and interest on this Note, if denominated in a Specified
Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate Agent (as
defined on the reverse hereof) will convert such payments into U.S. dollars. In
the event of such an election, payment in respect of this Note will be based
upon the exchange rate as determined by the Exchange Rate Agent based on the
highest bid quotation in The City of New York received by such Exchange Rate
Agent at approximately 11:00 a.m., New York City time, on the second Business
Day preceding the applicable payment

                                      A-12
<PAGE>

date from three  recognized  foreign  exchange  dealers (one of which may be the
Exchange  Rate Agent  unless such  Exchange  Rate Agent is an  affiliate  of the
Issuer) for the  purchase by the quoting  dealer of the  Specified  Currency for
U.S.  dollars for settlement on such payment date in the amount of the Specified
Currency  payable in the absence of such an election to such holder and at which
the applicable dealer commits to execute a contract.  If such bid quotations are
not available, such payment will be made in the Specified Currency. All currency
exchange costs will be borne by the holder of this Note by deductions  from such
payments.

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

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall
not be entitled to any benefit under the Senior Indenture, as defined on the
reverse hereof, or be valid or obligatory for any purpose.

                                      A-13
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

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

TRUSTEE'S CERTIFICATE
  OF AUTHENTICATION

This is one of the Notes referred
   to in the within-mentioned
   Senior Indenture.

JPMORGAN CHASE BANK, N.A.,
   as Trustee

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

                                      A-14
<PAGE>

                               REVERSE OF SECURITY

     This Note is one of a duly authorized issue of Senior Global Medium-Term
Notes, Series F, having maturities more than nine months from the date of issue
(the "Notes") of the Issuer. The Notes are issuable under a Senior Indenture,
dated as of November 1, 2004, between the Issuer and JPMorgan Chase Bank, N.A.
(formerly known as JPMorgan Chase Bank), as Trustee (the "Trustee," which term
includes any successor trustee under the Senior Indenture) (as may be amended or
supplemented from time to time, the "Senior Indenture"), to which Senior
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities
of the Issuer, the Trustee and holders of the Notes and the terms upon which the
Notes are, and are to be, authenticated and delivered. The Issuer has appointed
JPMorgan Chase Bank, N.A. at its corporate trust office in The City of New York
as the paying agent (the "Paying Agent," which term includes any additional or
successor Paying Agent appointed by the Issuer) with respect to the Notes. The
terms of individual Notes may vary with respect to interest rates, interest rate
formulas, issue dates, maturity dates, or otherwise, all as provided in the
Senior Indenture. To the extent not inconsistent herewith, the terms of the
Senior Indenture are hereby incorporated by reference herein.

     Unless otherwise indicated on the face hereof, this Note will not be
subject to any sinking fund and, unless otherwise provided on the face hereof in
accordance with the provisions of the following two paragraphs, will not be
redeemable or subject to repayment at the option of the holder prior to
maturity.

     If so indicated on the face hereof, this Note may be redeemed in whole or
in part at the option of the Issuer on or after the Initial Redemption Date
specified on the face hereof on the terms set forth on the face hereof, together
with interest accrued and unpaid hereon to the date of redemption. If this Note
is subject to "Annual Redemption Percentage Reduction," the Initial Redemption
Percentage indicated on the face hereof will be reduced on each anniversary of
the Initial Redemption Date by the Annual Redemption Percentage Reduction
specified on the face hereof until the redemption price of this Note is 100% of
the principal amount hereof, together with interest accrued and unpaid hereon to
the date of redemption. Notice of redemption shall be mailed to the registered
holders of the Notes designated for redemption at their addresses as the same
shall appear on the Note register not less than 30 nor more than 60 calendar
days prior to the date fixed for redemption or within the Redemption Notice
Period specified on the face hereof, subject to all the conditions and
provisions of the Senior Indenture. In the event of redemption of this Note in
part only, a new Note or Notes for the amount of the unredeemed portion hereof
shall be issued in the name of the holder hereof upon the cancellation hereof.

     If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments of
$1,000 or, if this Note is denominated in a Specified Currency other than U.S.
dollars, in increments of 1,000 units of such Specified Currency (provided that
any remaining principal amount hereof shall not be less than the minimum
authorized denomination

                                      A-15
<PAGE>

hereof) at the option of the holder hereof at a price equal to 100% of the
principal amount to be repaid, together with interest accrued and unpaid hereon
to the date of repayment, provided that if this Note is issued with original
issue discount, this Note will be repayable on the applicable Optional Repayment
Date or Dates at the price(s) specified on the face hereof. For this Note to be
repaid at the option of the holder hereof, the Paying Agent must receive at its
corporate trust office in the Borough of Manhattan, The City of New York, at
least 15 but not more than 30 calendar days prior to the date of repayment, (i)
this Note with the form entitled "Option to Elect Repayment" below duly
completed or (ii) a telegram, telex, facsimile transmission or a letter from a
member of a national securities exchange or the National Association of
Securities Dealers, Inc. or a commercial bank or a trust company in the United
States setting forth the name of the holder of this Note, the principal amount
hereof, the certificate number of this Note or a description of this Note's
tenor and terms, the principal amount hereof to be repaid, a statement that the
option to elect repayment is being exercised thereby and a guarantee that this
Note, together with the form entitled "Option to Elect Repayment" duly
completed, will be received by the Paying Agent not later than the fifth
Business Day after the date of such telegram, telex, facsimile transmission or
letter; provided, that such telegram, telex, facsimile transmission or letter
shall only be effective if this Note and form duly completed are received by the
Paying Agent by such fifth Business Day. Exercise of such repayment option by
the holder hereof shall be irrevocable. In the event of repayment of this Note
in part only, a new Note or Notes for the amount of the unpaid portion hereof
shall be issued in the name of the holder hereof upon the cancellation hereof.

     Interest payments on this Note will include interest accrued to but
excluding the Interest Payment Dates or the Maturity Date (or any earlier
redemption or repayment date), as the case may be. Unless otherwise provided on
the face hereof, interest payments for this Note will be computed and paid on
the basis of a 360-day year of twelve 30-day months.

     In the case where the Interest Payment Date or the Maturity Date (or any
redemption or repayment date) does not fall on a Business Day, payment of
interest, premium, if any, or principal otherwise payable on such date need not
be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on the Interest Payment Date or on the
Maturity Date (or any redemption or repayment date), and no interest on such
payment shall accrue for the period from and after the Interest Payment Date or
the Maturity Date (or any redemption or repayment date) to such next succeeding
Business Day.

     This Note and all the obligations of the Issuer hereunder are direct,
unsecured obligations of the Issuer and rank without preference or priority
among themselves and pari passu with all other existing and future unsecured and
unsubordinated indebtedness of the Issuer, subject to certain statutory
exceptions in the event of liquidation upon insolvency.

     This Note, and any Note or Notes issued upon transfer or exchange hereof,
is issuable only in fully registered form, without coupons, and, if denominated
in U.S. dollars, unless otherwise stated above, is issuable only in
denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess
thereof. If this Note is denominated in a Specified Currency other than U.S.
dollars, then, unless a higher minimum denomination is required by applicable

                                      A-16
<PAGE>

law, it is issuable only in denominations of the equivalent of U.S. $1,000
(rounded to an integral multiple of 1,000 units of such Specified Currency), or
any amount in excess thereof which is an integral multiple of 1,000 units of
such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency
published by the Federal Reserve Bank of New York (the "Market Exchange Rate")
on the Business Day immediately preceding the date of issuance.

     The Trustee has been appointed registrar for the Notes, and the Trustee
will maintain at its office in The City of New York a register for the
registration and transfer of Notes. This Note may be transferred at the
aforesaid office of the Trustee by surrendering this Note for cancellation,
accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee and duly executed by the registered holder hereof in
person or by the holder's attorney duly authorized in writing, and thereupon the
Trustee shall issue in the name of the transferee or transferees, in exchange
herefor, a new Note or Notes having identical terms and provisions and having a
like aggregate principal amount in authorized denominations, subject to the
terms and conditions set forth herein; provided, however, that the Trustee will
not be required (i) to register the transfer of or exchange any Note that has
been called for redemption in whole or in part, except the unredeemed portion of
Notes being redeemed in part, (ii) to register the transfer of or exchange any
Note if the holder thereof has exercised his right, if any, to require the
Issuer to repurchase such Note in whole or in part, except the portion of such
Note not required to be repurchased, or (iii) to register the transfer of or
exchange Notes to the extent and during the period so provided in the Senior
Indenture with respect to the redemption of Notes. Notes are exchangeable at
said office for other Notes of other authorized denominations of equal aggregate
principal amount having identical terms and provisions. All such exchanges and
transfers of Notes will be free of charge, but the Issuer may require payment of
a sum sufficient to cover any tax or other governmental charge in connection
therewith. All Notes surrendered for exchange shall be accompanied by a written
instrument of transfer in form satisfactory to the Issuer and the Trustee and
executed by the registered holder in person or by the holder's attorney duly
authorized in writing. The date of registration of any Note delivered upon any
exchange or transfer of Notes shall be such that no gain or loss of interest
results from such exchange or transfer.

     In case this Note shall at any time become mutilated, defaced or be
destroyed, lost or stolen and this Note or evidence of the loss, theft or
destruction thereof (together with the indemnity hereinafter referred to and
such other documents or proof as may be required in the premises) shall be
delivered to the Trustee, the Issuer in its discretion may execute a new Note of
like tenor in exchange for this Note, but, if this Note is destroyed, lost or
stolen, only upon receipt of evidence satisfactory to the Trustee and the Issuer
that this Note was destroyed or lost or stolen and, if required, upon receipt
also of indemnity satisfactory to each of them. All expenses and reasonable
charges associated with procuring such indemnity and with the preparation,
authentication and delivery of a new Note shall be borne by the owner of the
Note mutilated, defaced, destroyed, lost or stolen.

                                      A-17
<PAGE>

     The Senior Indenture provides that (a) if an Event of Default (as defined
in the Senior Indenture) due to the default in payment of principal of, premium,
if any, or interest on, any series of debt securities issued under the Senior
Indenture, including the series of Senior Medium-Term Notes of which this Note
forms a part, or due to the default in the performance or breach of any other
covenant or warranty of the Issuer applicable to the debt securities of such
series but not applicable to all outstanding debt securities issued under the
Senior Indenture shall have occurred and be continuing, either the Trustee or
the holders of not less than 25% in aggregate principal amount of the
outstanding debt securities of each affected series, voting as one class, by
notice in writing to the Issuer and to the Trustee, if given by the
securityholders, may then declare the principal of all debt securities of all
such series and interest accrued thereon to be due and payable immediately and
(b) if an Event of Default due to a default in the performance of any other of
the covenants or agreements in the Senior Indenture applicable to all
outstanding debt securities issued thereunder, including this Note, or due to
certain events of bankruptcy, insolvency or reorganization of the Issuer, shall
have occurred and be continuing, either the Trustee or the holders of not less
than 25% in aggregate principal amount of all outstanding debt securities issued
under the Senior Indenture, voting as one class, by notice in writing to the
Issuer and to the Trustee, if given by the securityholders, may declare the
principal of all such debt securities and interest accrued thereon to be due and
payable immediately, but upon certain conditions such declarations may be
annulled and past defaults may be waived (except a continuing default in payment
of principal or premium, if any, or interest on such debt securities) by the
holders of a majority in aggregate principal amount of the debt securities of
all affected series then outstanding.

     If the face hereof indicates that this Note is subject to "Modified Payment
upon Acceleration or Redemption," then (i) if the principal hereof is declared
to be due and payable as described in the preceding paragraph, the amount of
principal due and payable with respect to this Note shall be limited to the
aggregate principal amount hereof multiplied by the sum of the Issue Price
specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of declaration, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of declaration), (ii) for the
purpose of any vote of securityholders taken pursuant to the Senior Indenture
prior to the acceleration of payment of this Note, the principal amount hereof
shall equal the amount that would be due and payable hereon, calculated as set
forth in clause (i) above, if this Note were declared to be due and payable on
the date of any such vote and (iii) for the purpose of any vote of
securityholders taken pursuant to the Senior Indenture following the
acceleration of payment of this Note, the principal amount hereof shall equal
the amount of principal due and payable with respect to this Note, calculated as
set forth in clause (i) above.

     If the face hereof indicates that this Note is subject to "Tax Redemption
and Payment of Additional Amounts," this Note may be redeemed, as a whole, at
the option of the Issuer at any time prior to maturity, upon the giving of a
notice of redemption as described below, at a redemption price equal to 100% of
the principal amount hereof, together with accrued interest to the date fixed
for redemption (except that if this Note is subject to "Modified Payment upon

                                      A-18
<PAGE>

Acceleration or Redemption," such redemption price would be limited to the
aggregate principal amount hereof multiplied by the sum of the Issue Price
specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of redemption, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of redemption) (the "Amortized
Amount")), if the Issuer determines that, as a result of any change in or
amendment to the laws, or any regulations or rulings promulgated thereunder, of
the United States or of any political subdivision or taxing authority thereof or
therein affecting taxation, or any change in official position regarding the
application or interpretation of such laws, regulations or rulings, which change
or amendment becomes effective on or after the Initial Offering Date hereof, the
Issuer has or will become obligated to pay Additional Amounts, as defined below,
with respect to this Note as described below. Prior to the giving of any notice
of redemption pursuant to this paragraph, the Issuer shall deliver to the
Trustee (i) a certificate stating that the Issuer is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions
precedent to the right of the Issuer to so redeem have occurred, and (ii) an
opinion of independent legal counsel satisfactory to the Trustee to such effect
based on such statement of facts; provided that no such notice of redemption
shall be given earlier than 60 calendar days prior to the earliest date on which
the Issuer would be obligated to pay such Additional Amounts if a payment in
respect of this Note were then due.

     Notice of redemption will be given not less than 30 nor more than 60
calendar days prior to the date fixed for redemption or within the Redemption
Notice Period specified on the face hereof, which date and the applicable
redemption price will be specified in the notice.

     If the face hereof indicates that this Note is subject to "Tax Redemption
and Payment of Additional Amounts," the Issuer will, subject to certain
exceptions and limitations set forth below, pay such additional amounts (the
"Additional Amounts") to the holder of this Note who is a United States Alien as
may be necessary in order that every net payment of the principal of and
interest on this Note and any other amounts payable on this Note, after
withholding or deduction for or on account of any present or future tax,
assessment or governmental charge imposed upon or as a result of such payment by
the United States, or any political subdivision or taxing authority thereof or
therein, will not be less than the amount provided for in this Note to be then
due and payable. The Issuer will not, however, make any payment of Additional
Amounts to any such holder who is a United States Alien for or on account of:

          (a) any present or future tax, assessment or other governmental charge
     that would not have been so imposed but for (i) the existence of any
     present or former connection between such holder, or between a fiduciary,
     settlor, beneficiary, member or shareholder of such holder, if such holder
     is an estate, a trust, a partnership or a corporation for United States
     federal income tax purposes, and the United States, including, without
     limitation, such holder, or such fiduciary, settlor, beneficiary, member or
     shareholder, being or having been a citizen or resident thereof or being or
     having been engaged in a trade or business or present therein or having, or
     having had, a permanent

                                      A-19
<PAGE>

     establishment therein or (ii) the presentation by or on behalf of the
     holder of this Note for payment on a date more than 15 calendar days after
     the date on which such payment became due and payable or the date on which
     payment thereof is duly provided for, whichever occurs later;

          (b) any estate, inheritance, gift, sales, transfer, excise or personal
     property tax or any similar tax, assessment or governmental charge;

          (c) any tax, assessment or other governmental charge imposed by reason
     of such holder's past or present status as a personal holding company or
     foreign personal holding company or controlled foreign corporation or
     passive foreign investment company with respect to the United States or as
     a corporation which accumulates earnings to avoid United States federal
     income tax or as a private foundation or other tax-exempt organization or a
     bank receiving interest under Section 881(c)(3)(A) of the Internal Revenue
     Code of 1986, as amended;

          (d) any tax, assessment or other governmental charge that is payable
     otherwise than by withholding or deduction from payments on or in respect
     of this Note;

          (e) any tax, assessment or other governmental charge required to be
     withheld by any Paying Agent from any payment of principal of, or interest
     on, this Note, if such payment can be made without such withholding by any
     other Paying Agent in a city in Western Europe;

          (f) any tax, assessment or other governmental charge that would not
     have been imposed but for the failure to comply with certification,
     information or other reporting requirements concerning the nationality,
     residence or identity of the holder or beneficial owner of this Note, if
     such compliance is required by statute or by regulation of the United
     States or of any political subdivision or taxing authority thereof or
     therein as a precondition to relief or exemption from such tax, assessment
     or other governmental charge;

          (g) any tax, assessment or other governmental charge imposed by reason
     of such holder's past or present status as the actual or constructive owner
     of 10% or more of the total combined voting power of all classes of stock
     entitled to vote of the Issuer or as a direct or indirect subsidiary of the
     Issuer; or

          (h) any combination of items (a), (b), (c), (d), (e), (f) or (g).

In addition, the Issuer shall not be required to make any payment of Additional
Amounts (i) to any such holder where such withholding or deduction is imposed on
a payment to an individual and is required to be made pursuant to any law
implementing or complying with, or introduced in order to conform to, any
European Union Directive on the taxation of savings; or (ii) by or on behalf of
a holder who would have been able to avoid such withholding or deduction by
presenting this Note or the relevant coupon to another Paying Agent in a member
state of the

                                      A-20
<PAGE>

European Union. Nor shall the Issuer pay Additional Amounts with respect to any
payment on this Note to a United States Alien who is a fiduciary or partnership
or other than the sole beneficial owner of such payment to the extent such
payment would be required by the laws of the United States (or any political
subdivision thereof) to be included in the income, for tax purposes, of a
beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been entitled to the
Additional Amounts had such beneficiary, settlor, member or beneficial owner
been the holder of this Note.

     The Senior Indenture permits the Issuer and the Trustee, with the consent
of the holders of not less than a majority in aggregate principal amount of the
debt securities of all series issued under the Senior Indenture then outstanding
and affected (voting as one class), to execute supplemental indentures adding
any provisions to or changing in any manner the rights of the holders of each
series so affected; provided that the Issuer and the Trustee may not, without
the consent of the holder of each outstanding debt security affected thereby,
(a) extend the final maturity of any such debt security, or reduce the principal
amount thereof, or reduce the rate or extend the time of payment of interest
thereon, or reduce any amount payable on redemption thereof, or change the
currency of payment thereof, or modify or amend the provisions for conversion of
any currency into any other currency, or modify or amend the provisions for
conversion or exchange of the debt security for securities of the Issuer or
other entities or for other property or the cash value of the property (other
than as provided in the antidilution provisions or other similar adjustment
provisions of the debt securities or otherwise in accordance with the terms
thereof), or impair or affect the rights of any holder to institute suit for the
payment thereof or (b) reduce the aforesaid percentage in principal amount of
debt securities the consent of the holders of which is required for any such
supplemental indenture.

     Except as set forth below, if the principal of, premium, if any, or
interest on this Note is payable in a Specified Currency other than U.S. dollars
and such Specified Currency is not available to the Issuer for making payments
hereon due to the imposition of exchange controls or other circumstances beyond
the control of the Issuer or is no longer used by the government of the country
issuing such currency or for the settlement of transactions by public
institutions within the international banking community, then the Issuer will be
entitled to satisfy its obligations to the holder of this Note by making such
payments in U.S. dollars on the basis of the Market Exchange Rate on the date of
such payment or, if the Market Exchange Rate is not available on such date, as
of the most recent practicable date; provided, however, that if the euro has
been substituted for such Specified Currency, the Issuer may at its option (or
shall, if so required by applicable law) without the consent of the holder of
this Note effect the payment of principal of, premium, if any, or interest on
any Note denominated in such Specified Currency in euro in lieu of such
Specified Currency in conformity with legally applicable measures taken pursuant
to, or by virtue of, the Treaty establishing the European Community, as amended.
Any payment made under such circumstances in U.S. dollars or euro where the
required payment is in an unavailable Specified Currency will not constitute an
Event of Default. If such Market Exchange Rate is not then available to the
Issuer or is not published for a particular Specified Currency, the Market
Exchange Rate will be based on the highest bid quotation in The City of New York
received by the Exchange Rate Agent at approximately 11:00 a.m., New York City

                                      A-21
<PAGE>

time, on the second Business Day preceding the date of such payment from three
recognized foreign exchange dealers (the "Exchange Dealers") for the purchase by
the quoting Exchange Dealer of the Specified Currency for U.S. dollars for
settlement on the payment date, in the aggregate amount of the Specified
Currency payable to those holders or beneficial owners of Notes and at which the
applicable Exchange Dealer commits to execute a contract. One of the Exchange
Dealers providing quotations may be the Exchange Rate Agent unless the Exchange
Rate Agent is an affiliate of the Issuer. If those bid quotations are not
available, the Exchange Rate Agent shall determine the market exchange rate at
its sole discretion.

     The "Exchange Rate Agent" shall be Morgan Stanley & Co. Incorporated,
unless otherwise indicated on the face hereof.

     All determinations referred to above made by, or on behalf of, the Issuer
or by, or on behalf of, the Exchange Rate Agent shall be at such entity's sole
discretion and shall, in the absence of manifest error, be conclusive for all
purposes and binding on holders of Notes and coupons.

     So long as this Note shall be outstanding, the Issuer will cause to be
maintained an office or agency for the payment of the principal of and premium,
if any, and interest on this Note as herein provided in the Borough of
Manhattan, The City of New York, and an office or agency in said Borough of
Manhattan for the registration, transfer and exchange as aforesaid of the Notes.
The Issuer may designate other agencies for the payment of said principal,
premium and interest at such place or places (subject to applicable laws and
regulations) as the Issuer may decide. So long as there shall be such an agency,
the Issuer shall keep the Trustee advised of the names and locations of such
agencies, if any are so designated. If any European Union Directive on the
taxation of savings comes into force, the Issuer will, to the extent possible as
a matter of law, maintain a Paying Agent in a member state of the European Union
that will not be obligated to withhold or deduct tax pursuant to any such
Directive or any law implementing or complying with, or introduced in order to
conform to, such Directive.

     With respect to moneys paid by the Issuer and held by the Trustee or any
Paying Agent for payment of the principal of or interest or premium, if any, on
any Notes that remain unclaimed at the end of two years after such principal,
interest or premium shall have become due and payable (whether at maturity or
upon call for redemption or otherwise), (i) the Trustee or such Paying Agent
shall notify the holders of such Notes that such moneys shall be repaid to the
Issuer and any person claiming such moneys shall thereafter look only to the
Issuer for payment thereof and (ii) such moneys shall be so repaid to the
Issuer. Upon such repayment all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease, without, however, limiting in
any way any obligation that the Issuer may have to pay the principal of or
interest or premium, if any, on this Note as the same shall become due.

     No provision of this Note or of the Senior Indenture shall alter or impair
the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Note at the time, place, and
rate, and in the coin or currency, herein prescribed unless otherwise agreed
between the Issuer and the registered holder of this Note.

                                      A-22
<PAGE>

     Prior to due presentment of this Note for registration of transfer, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
holder in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and none of the Issuer, the
Trustee or any such agent shall be affected by notice to the contrary.

     No recourse shall be had for the payment of the principal of, premium, if
any, or the interest on this Note, for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Senior Indenture or any
indenture supplemental thereto, against any incorporator, shareholder, officer
or director, as such, past, present or future, of the Issuer or of any successor
corporation, either directly or through the Issuer or any successor corporation,
whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability being,
by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

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

     As used herein, the term "United States Alien" means any person who is, for
United States federal income tax purposes, (i) a nonresident alien individual,
(ii) a foreign corporation, (iii) a nonresident alien fiduciary of a foreign
estate or trust or (iv) a foreign partnership one or more of the members of
which is, for United States federal income tax purposes, a nonresident alien
individual, a foreign corporation or a nonresident alien fiduciary of a foreign
estate or trust.

     All terms used in this Note which are defined in the Senior Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Senior Indenture.

                                      A-23
<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

                  TEN COM      -     as tenants in common
                  TEN ENT      -     as tenants by the entireties
                  JT TEN       -     as joint tenants with right of survivorship
                                     and not as tenants in common

     UNIF GIFT MIN ACT - ______________________________ Custodian ______________
                                     (Minor)                         (Cust)

     Under Uniform Gifts to Minors Act _________________________________________
                                                       (State)

    Additional abbreviations may also be used though not in the above list.

                               __________________

                                      A-24
<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

_______________________________________
[PLEASE INSERT SOCIAL SECURITY OR OTHER
 IDENTIFYING NUMBER OF ASSIGNEE]

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
    [PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing such person attorney to transfer such note on the books of the
Issuer, with full power of substitution in the premises.

Dated:_____________________

NOTICE: The signature to this assignment must correspond with the name as
        written upon the face of the within Note in every particular without
        alteration or enlargement or any change whatsoever.

                                      A-25
<PAGE>

                            OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably requests and instructs the Issuer to
repay the within Note (or portion thereof specified below) pursuant to its terms
at a price equal to the principal amount thereof, together with interest to the
Optional Repayment Date, to the undersigned at

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
         (Please print or typewrite name and address of the undersigned)

     If less than the entire principal amount of the within Note is to be
repaid, specify the portion thereof which the holder elects to have repaid:
_____________________; and specify the denomination or denominations (which
shall not be less than the minimum authorized denomination) of the Notes to be
issued to the holder for the portion of the within Note not being repaid (in the
absence of any such specification, one such Note will be issued for the portion
not being repaid): ________________________.

Dated:_____________________________         ____________________________________
                                            NOTICE: The signature on this Option
                                            to Elect Repayment must correspond
                                            with the name as written upon the
                                            face of the within instrument in
                                            every particular without alteration
                                            or enlargement.

                                      A-26
<PAGE>EXHIBIT 10.1

 

 

SIXTH AMENDMENT TO WAREHOUSING CREDIT

AND SECURITY AGREEMENT

 

SIXTH AMENDMENT TO WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Amendment”) dated
as of April 15, 2005, between MUNICIPAL MORTGAGE & EQUITY, LLC, a Delaware limited liability
company (“MuniMae”), MUNIMAE TEI HOLDINGS, LLC, a Maryland limited liability company
(“MTEI”), MMA MORTGAGE INVESTMENT CORPORATION, a Florida corporation, f/k/a MIDLAND
MORTGAGE INVESTMENT CORPORATION (“MMA Investment”), MMA CONSTRUCTION FINANCE, LLC fka
MUNIMAE MIDLAND CONSTRUCTION FINANCE, LLC, a Maryland limited liability company (“MMA
Construction”), and MMA CAPITAL CORPORATION, a Michigan corporation f/k/a MIDLAND CAPITAL
CORPORATION (“MMA Capital”) (MuniMae, MTEI, MMA Investment, MMA Construction and MMA Capital,
collectively, “Borrower”) and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation
(“Lender”).

	A.  	Borrower and Lender have entered into a revolving mortgage warehousing facility with a
present Warehousing Commitment Amount of $200,000,000 which is evidenced by a Warehousing
Promissory Note (“Note”), and by a Warehousing Credit and Security Agreement dated as
of May 23, 2003 (as the same may have been and may be amended or supplemented, the
“Agreement”).
	 
	B.  	Borrower and Lender have agreed to amend the Agreement, subject to the terms and conditions
of this Amendment.

NOW, THEREFORE, the parties to this Amendment agree as follows:

	1.  	Subject to Borrower’s satisfaction of the conditions set forth in Section 12, the effective
date of this Amendment is April 20, 2005 (“Effective Date”).
	 
	2.  	Unless otherwise defined in this Amendment, all capitalized terms have the meanings given to
those terms in the Agreement. Defined terms may be used in the singular or the plural, as the
context requires. The words “include,” “includes” and “including” are deemed to be followed
by the phrase “without limitation.” Unless the context in which it is used otherwise clearly
requires, the word “or” has the inclusive meaning represented by the phrase “and/or.”
References to Sections and Exhibits are to Sections and Exhibits of this Amendment unless
otherwise expressly provided.
	 
	3.  	The Agreement and each and every other Loan Document is hereby amended to read and reflect
that Midland Mortgage Investment Corporation, one of the Borrowers, has changed its legal name
to MMA Mortgage Investment Corporation, a Florida corporation, pursuant to the Articles of
Amendment to the Articles of Incorporation dated January 10, 2005, filed on January 11, 2005
with the Florida Department of State, Document Number F96680.
	 
	4.  	The Agreement and each and every other Loan Document is hereby amended to read and reflect
that the identifying term “Midland Mortgage” set forth in the first paragraph of the Agreement
for the Borrower now known as MMA Mortgage Investment Corporation is changed to “MMA
Investment.”
	 
	5.  	The Agreement and each and every other Loan Document is hereby amended to read and reflect
that the identifying term “MMA” set forth in the first paragraph of the Agreement for the
Borrower known as Municipal Mortgage & Equity, LLC is changed to “MuniMae.”

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	6.  	Article 1 of the Agreement is amended and restated in its entirety as set forth in
Article 1 attached to this Amendment. All references in the Agreement and other Loan
Documents to Article 1 (including each and every Section in Article 1) are
deemed to refer to the new Article 1.
	 
	7.  	Article 3 of the Agreement is amended and restated in its entirety as set forth in
Article 3 attached to this Amendment. All references in the Agreement and other Loan
Documents to Article 3 (including each and every Section in Article 3) are
deemed to refer to the new Article 3.
	 
	8.  	Article 4 of the Agreement is amended and restated in its entirety as set forth in
Article 4 attached to this Amendment. All references in the Agreement and other Loan
Documents to Article 4 (including each and every Section in Article 4) are
deemed to refer to the new Article 4.
	 
	9.  	Article 12 of the Agreement is amended and restated in its entirety as set forth in
Article 12 attached to this Amendment. All references in the Agreement and other Loan
Documents to Article 12 (including each and every Section in Article 12) are
deemed to refer to the new Article 12.
	 
	10.  	Exhibit H to the Agreement is amended and restated in its entirety as set forth in
Exhibit H to this Amendment. All references in the Agreement and the other Loan
Documents to Exhibit H are deemed to refer to the new Exhibit H.
	 
	11.  	Borrowers have paid all Non-Usage Fees (as defined in the Agreement prior to giving effect to
this Amendment) which have accrued and remain unpaid as of the Effective Date, it being
understood that no Non-Usage Fees will accrue or be payable for any period after the Effective
Date.
	 
	12.  	Borrower must deliver to Lender two executed copies of this Amendment.
	 
	13.  	Borrower represents, warrants and agrees that (a) there exists no Default or Event of Default
under the Loan Documents, (b) the Loan Documents continue to be the legal, valid and binding
agreements and obligations of Borrower, enforceable in accordance with their terms, as
modified by this Amendment, (c) Lender is not in default under any of the Loan Documents and
Borrower has no offset or defense to its performance or obligations under any of the Loan
Documents, (d) except for changes permitted by the terms of the Agreement, Borrower’s
representations and warranties contained in the Loan Documents are true, accurate and complete
in all respects as of the Effective Date and (e) there has been no material adverse change in
Borrower’s financial condition from the date of the Agreement to the Effective Date.
	 
	14.  	Except as expressly modified, the Agreement is unchanged and remains in full force and
effect, and Borrower ratifies and reaffirms all of its obligations under the Agreement and the
other Loan Documents.
	 
	15.  	This Amendment may be executed in any number of counterparts, each of which will be deemed an
original, but all of which shall together constitute but one and the same instrument.

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     IN WITNESS WHEREOF, Borrower and Lender have caused this Amendment to be duly executed on
their behalf by their duly authorized officers as of the day and year above written.

	 	 	 	 	 	 	 
	 	 	MUNICIPAL MORTGAGE & EQUITY, LLC,

a Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Sheila Gibson
	 	 	 	 	 
	 	 	Its:	 	Senior Vice President
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MUNIMAE TEI HOLDINGS, LLC,

a Maryland limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	Municipal Mortgage & Equity, LLC,

a Delaware limited liability company
	 	 	Its:	 	Sole Member
	

	 	 	 	By:
	 	/s/ Sheila Gibson
	

	 	 	 	 	 	 
	

	 	 	 	Its:
	 	Senior Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MMA MORTGAGE INVESTMENT CORPORATION,

a Florida corporation, f/k/a MIDLAND MORTGAGE

INVESTMENT CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Sheila Gibson
	 	 	 	 	 
	 	 	Its:	 	Senior Vice President
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MMA CONSTRUCTION FINANCE, LLC, a Maryland limited

liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	MuniMae Investment Services Corporation,

a Maryland corporation
	 	 	Its:	 	Sole Member
	

	 	 	 	By:
	 	/s/ Sheila Gibson
	

	 	 	 	 	 	 
	

	 	 	 	Its:
	 	Senior Vice President
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	MMA CAPITAL CORPORATION,

a Michigan corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Sheila Gibson
	 	 	 	 	 
	 	 	Its:	 	Senior Vice President
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RESIDENTIAL FUNDING CORPORATION,

a Delaware corporation
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Perry Rogers
	 	 	 	 	 
	 	 	Its:	 	Director
	 	 	 	 	 

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