Document:

Exhibit 4-vv

     THIS OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY, OR OTHERWISE
PROTECTED BY, ANY FEDERAL AGENCY OR THE SECURITIES INVESTOR PROTECTION
CORPORATION. THIS OBLIGATION IS SUBORDINATED TO THE SENIOR INDEBTEDNESS OF THE
ISSUER AS SET FORTH HEREIN AND IS NOT SECURED.

                JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE

REGISTERED                                                   REGISTERED
No. [   ]                                                    [Principal Amount]
                                                             CUSIP:

                                 MORGAN STANLEY
                JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURE

     Morgan Stanley, a Delaware corporation (together with its successors and
assigns, the "Issuer"), for value received, hereby promises to pay to The Bank
of New York, as Property Trustee (the "Property Trustee," which term includes
any successor Property Trustee for Morgan Stanley Capital Trust [  ]) for Morgan
Stanley Capital Trust [  ], a statutory trust formed under the laws of the State
of Delaware (the "Issuer Trust"), or registered assignees, the principal sum of
$[               ] (UNITED STATES DOLLARS [                                ]) on
[   ], the "Stated Maturity." The Issuer further promises to pay interest on
said principal sum at the annual rate of    % from and including        , to but
   excluding the date the principal hereof is paid or duly made available for
payment (except as provided below). Interest is payable quarterly in arrears
on                ,         ,    and     of each year (each an "Interest Payment
Date"), commencing            ,             .

     Interest on this Debenture will accrue from and including the most recent
Interest Payment 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   ,    to
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 Debenture (or one or more
predecessor Debentures) is registered at the close of business on the 15th
calendar day (whether or not a Business Day) next preceding such Interest
Payment Date (each such date a "Record Date"). "Business Day" means any day,
other than a Saturday or Sunday, that is not a day on which banking institutions
in the City of New York are authorized or required by law or executive order to
remain closed.

<PAGE>

A Holder of U.S. $1,000,000 or more in aggregate principal amount of Debentures
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.

     Reference is hereby made to the further provisions of this Debenture set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place, including, without
limitation, the provisions relating to the subordination of this Debenture to
the Issuer's Senior Indebtedness, as defined on the reverse hereof.

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

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<PAGE>

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

DATED:                     ,
                                              MORGAN STANLEY

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

                                       3
<PAGE>

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Debentures referred to in the within-mentioned Junior
Subordinated Indenture.

DATED:                  ,

THE BANK OF NEW YORK,
  as Trustee

By:
     ------------------------------------
     Authorized Signatory

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<PAGE>

                               REVERSE OF SECURITY

     This debenture is one of a duly authorized issue of   % Junior Subordinated
Debentures due           ,      (the "Debentures") of the Issuer. The Debentures
are issuable under the [   ] Junior Subordinated Indenture, dated as of       ,
         , between Morgan Stanley (the "Issuer") and The Bank of New York, as
Trustee (the "Trustee," which term includes any successor trustee under the
Junior Subordinated Indenture) (the "Junior Subordinated Indenture"), to which
Junior Subordinated Indenture 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 Debentures and the terms upon which the
Debentures are, and are to be, authenticated and delivered. The Issuer has
appointed The Bank of New York 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
Debentures. To the extent not inconsistent herewith, the terms of the Junior
Subordinated Indenture are hereby incorporated by reference herein. Capitalized
terms not otherwise defined herein have the meaning given to such terms in the
Junior Subordinated Indenture.

     This Debenture will not be subject to any sinking fund and, except as
provided below, will not be redeemable or subject to repayment at the option of
the holder prior to its Stated Maturity.

     This Debenture may be redeemed at the option of the Issuer (i) on or after
    ,      in whole at any time or in part from time to time, (ii) prior to    ,
     , in whole (but not in part) at any time within 90 days following the
occurrence and continuation of a Tax Event or an Investment Company Event (the
"90-Day Period") or (iii) in whole or in part upon the occurrence of a
Regulatory Capital Event, in each case at a redemption price equal to the
accrued and unpaid interest on the Debentures so redeemed to but excluding the
date fixed for redemption, plus 100% of the principal amount thereof (the
"Redemption Price"). Notice of redemption shall be mailed to the registered
holders of the Debentures designated for redemption at their addresses as the
same shall appear on the Debenture register not less than 30 nor more than 60
days prior to the date fixed for redemption (the "Redemption Notice Period"),
subject to all the conditions and provisions of the Junior Subordinated
Indenture. In the event of redemption of this Debenture in part only, a new
Debenture or Debentures for the amount of the unredeemed portion hereof shall be
issued in the name of the holder hereof upon the cancellation hereof.

         The Issuer's right to redeem the Debentures under clause (ii) of the
preceding paragraph shall be subject to the condition that if at the time there
is available to the Issuer or Morgan Stanley Capital Trust [   ] (the "Issuer
Trust," the terms of which have been established pursuant to the Amended and
Restated

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<PAGE>

Trust Agreement dated as of          ,     , among the Issuer, as depositor, The
Bank of New York, as Property Trustee, The Bank of New York (Delaware), as
Delaware Trustee, the Administrators and the several Holders party thereto, the
"Trust Agreement") the opportunity to eliminate, within the 90-Day Period, the
Tax Event or Investment Company Event by taking some ministerial action
("Ministerial Action"), such as filing a form or making an election, or pursuing
some other similar reasonable measure that will have no adverse effect on the
Issuer, the Issuer Trust or the holders of the securities issued by the Issuer
Trust and will involve no material cost, the Issuer shall pursue such measures
in lieu of redemption; provided further, that the Issuer shall have no right to
redeem the Debentures while the Issuer Trust is pursuing any Ministerial Action
pursuant to the Trust Agreement. The Redemption Price shall be paid prior to
12:00 noon, New York time, on the date of such redemption or such earlier time
as the Issuer determines; provided, that the Issuer shall deposit with the
Trustee an amount sufficient to pay the Redemption Price prior to the redemption
date.

     The term "Tax Event" means the receipt by the Issuer Trust of an opinion of
counsel to the Issuer experienced in such matters, who shall not be an officer
or employee of the Issuer or any of its affiliates, to the effect that, as a
result of any amendment to, or change (including any announced prospective
change) in, the laws (or any regulations thereunder) of the United States or any
political subdivision or taxing authority thereof or therein, or as a result of
any official or administrative pronouncement or action or judicial decision
interpreting or applying such laws or regulations, which amendment or change is
effective or which pronouncement, action or decision is announced on or
after           ,          , the date of the initial offering of the Capital
Securities of the Issuer Trust to the public, there is more than an
insubstantial risk that (i) the Issuer Trust is, or will be within 90 days of
the delivery of such opinion, subject to United States federal income tax with
respect to income received or accrued on the Debentures, (ii) interest payable
by the Issuer on the Debentures is not, or within 90 days of the delivery of
such opinion will not be, deductible by the Issuer, in whole or in part, for
United States federal income tax purposes or (iii) the Issuer Trust is, or will
be within 90 days of the delivery of the opinion, subject to more than a de
minimis amount of other taxes, duties or other governmental charges.

     "Investment Company Event" means the receipt by the Issuer Trust of an
opinion of counsel to the Issuer experienced in such matters, who shall not be
an officer or employee of the Issuer or any of its affiliates, to the effect
that, as a result of the occurrence of a change in law or regulation or a
written change (including any announced prospective change) in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that
the Issuer Trust is or will be considered an "investment company" that is
required to be registered under the Investment Company Act of 1940, as amended
(the "Investment Company Act"), which change or prospective change becomes
effective or would

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<PAGE>

 become effective, as the case may be, on or after           ,      , the date
of the initial offering of the Capital Securities of the Issuer Trust to the
public.

     "Regulatory Capital Event" means the determination, based on the opinion of
counsel experienced in such matters, who may be an employee of the Issuer or any
of its affiliates, that as a result of: (i) any amendment to, clarification of
or change (including any announced prospective change) in applicable laws or
regulations or official interpretations thereof or policies with respect thereto
or (ii) any official administrative pronouncement or judicial decision
interpreting or applying such laws or regulations, which amendment,
clarification, change, pronouncement or decision is effective or announced on or
after          ,          , there is more than an insubstantial risk that the
Capital Securities of the Issuer Trust will no longer constitute allowable
capital of the Issuer or any holding company of which the Issuer is a subsidiary
for the purposes of the capital adequacy guidelines or policies of the
Securities and Exchange Commission or any applicable regulatory body or
governmental authority.

     Interest payments on this Debenture will include interest accrued to but
excluding the Interest Payment Dates or the Stated Maturity (or any earlier
redemption or repayment date), as the case may be. Interest payments for this
Debenture will be computed and paid on the basis of a 360-day year of twelve
30-day months and the actual days elapsed in a partial month in such period.
Accrued interest that is not paid on the applicable Interest Payment Date will
bear additional interest on the amount thereof at the rate per annum of   % (the
"Coupon Rate"), compounded quarterly and computed on the basis of a 360-day year
of twelve 30-day months and the actual days elapsed in a partial month in such
period. The amount of any interest payable for any full interest period will be
computed by dividing the rate per annum by four. The term "interest" as used
herein includes quarterly interest payments, interest on quarterly interest
payments not paid on the applicable Interest Payment Date and Additional Sums
(as defined below), as applicable.

     If any Interest Payment Date or the Stated Maturity (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 at the Stated Maturity (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 Stated Maturity
(or any redemption or repayment date) to such next succeeding Business Day.

         The Junior Subordinated Indenture provides that, (i) if an Event of
Default due to the default in payment of interest on any series of debt
securities issued under the Junior Subordinated Indenture, including the series
of Debentures of which this Debenture forms a part, shall have occurred and be
continuing, either

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<PAGE>

the Trustee or the holders of not less than 25% in principal amount of the debt
securities of each affected series (voting as a single class) may then declare
the principal of all debt securities of all such series and interest accrued
thereon to be due and payable immediately, and (ii) if an Event of Default due
to certain events of bankruptcy, insolvency and reorganization of the Issuer,
shall have occurred and be continuing, either the Trustee or the holders of not
less than 25% in principal amount of all debt securities issued under the Junior
Subordinated Indenture then outstanding (treated as one class) 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 interest on such debt securities) by the holders of a majority
in principal amount of the debt securities of all affected series then
outstanding. Deferral of any due date for the payment of interest in connection
with an Extension Period (as defined herein) does not constitute an Event of
Default or Default.

     So long as no Event of Default has occurred and is continuing, the Issuer
shall have the right at any time, and from time to time, during the term of the
Debentures to defer payments of interest by extending the interest payment
period of this Debenture for a period not exceeding             (the "Extension
Period"), during which Extension Period no interest shall be due and payable;
provided, that no Extension Period may extend beyond the Stated Maturity.
Interest, the payment of which has been deferred because of the extension of the
interest payment period pursuant to this paragraph, will bear interest thereon
at the Coupon Rate compounded quarterly for each quarter of the Extension Period
and computed on the basis of a 360-day year of twelve 30-day months and the
actual days elapsed in a partial month in such period ("Additional Interest").
The Coupon Rate payable for any full interest period will be computed by
dividing the rate per annum by four. At the end of the Extension Period, the
Issuer shall pay all interest accrued and unpaid on this Debenture, including
any Additional Sums and Additional Interest (together, "Deferred Interest") that
shall be payable to the Holders of this Debenture in whose names this Debenture
is registered in the Securities Register on the Record Date with respect to the
first Interest Payment Date after the end of the Extension Period. Before the
termination of any Extension Period, the Issuer may further extend such period;
provided, that such period together with all such further extensions thereof
shall not exceed , or extend beyond the Stated Maturity. In the event that any
Debentures are called for redemption on a date prior to the end of an Extension
Period, with respect to such Debentures, such Extension Period shall be deemed
to end on such date or such earlier date as may be determined by the Issuer.
Upon the termination of any Extension Period and upon the payment of all
Deferred Interest then due, the Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest shall be due and payable
during an Extension

                                       8
<PAGE>

Period, except at the end thereof, but the Issuer may prepay at any time all or
any portion of the interest accrued during an Extension Period.

     If the Property Trustee (as defined in the Trust Agreement) is the only
Holder of the Debentures at the time the Issuer selects an Extension Period, the
Issuer shall give written notice to the Issuer Trustees (as defined in the Trust
Agreement) of its selection of such Extension Period at least 15 Business Days
prior to the date the Distributions (as defined in the Trust Agreement) on the
Trust Securities (as defined in the Trust Agreement) would have been payable but
for the election to begin such Extension Period.

     If the Property Trustee is not the only Holder, or is not itself the
Holder, of the Debentures at the time the Issuer selects an Extension Period,
the Issuer shall give the Holders of the Debentures and the Trustee written
notice of its selection of such Extension Period at least 10 Business Days
before the earlier of the next succeeding Interest Payment Date or the date the
Issuer is required to give notice of the record or payment date of such interest
payment to Holders of the Debentures.

     The Issuer covenants that it will not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Issuer's capital stock or (ii) make any payment of
principal of or interest or premium, if any, on or repay, repurchase or redeem
any debt securities of the Issuer that rank pari passu in all respects with or
junior in interest to the Debentures (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Issuer (1) in connection
with any employment contract, benefit plan or other similar arrangement with or
for the benefit of any one or more employees, officers, directors or
consultants, (2) in connection with a dividend reinvestment or stockholder stock
purchase plan or (3) in connection with the issuance of capital stock of the
Issuer (or securities convertible into or exercisable for such capital stock) as
consideration in an acquisition transaction entered into prior to the applicable
Extension Period (b) as a result of an exchange, redemption or conversion of any
class or series of the Issuer's capital stock (or any capital stock of a
subsidiary of the Issuer) for any class or series of the Issuer's capital stock
or of any class or series of the Issuer's indebtedness for any class or series
of the Issuer's capital stock, (c) the purchase of fractional interests in
shares of the Issuer's capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any stockholder's rights
plan, or the issuance of rights, stock or other property under any stockholder's
rights plan, or the redemption or repurchase of rights pursuant thereto, (e)
payments under the Guarantee executed and delivered by the Issuer and The Bank
of New York, as trustee, for the benefit of the holders of any Capital
Securities (as defined in the Trust Agreement), as amended from time to time
(the "Guarantee") or (f) any dividend in the form of stock, warrants, options

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<PAGE>

or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock), if at
such time (i) there has occurred any event (a) of which the Issuer has actual
knowledge that with the giving of notice or the lapse of time, or both, would
constitute a Default and (b) that the Issuer has not taken reasonable steps to
cure, (ii) if the Debentures are held by the Issuer Trust, the Issuer is in
default with respect to its payment of any obligations under the Guarantee or
(iii) the Issuer has given notice of its election of an Extension Period as
provided in the Junior Subordinated Indenture and has not rescinded such notice,
or such Extension Period, or any extension thereof, is continuing.

     [If an Event of Default or a Default attributable to the failure of the
Issuer to pay any amounts payable in respect of the Debentures on the date such
amounts are otherwise payable has occurred and is continuing], a registered
holder of Capital Securities may institute a legal proceeding directly against
the Issuer for enforcement of payment to such registered holder of an amount
equal to the amount payable in respect of Debentures having a principal amount
equal to the aggregate Liquidation Amount (as defined in the Trust Agreement) of
the Capital Securities held by such registered holder (a "Direct Action"). The
Issuer shall have the right to set off any payment made to such registered
holder of Capital Securities by the Issuer in connection with a Direct Action.

     As long as any Debentures are held by the Issuer Trust, the Issuer
covenants (i) to continue to hold, directly or indirectly, 100% of the Common
Securities (as defined in the Trust Agreement), provided that certain successors
that are permitted pursuant to the Junior Subordinated Indenture may succeed to
the Issuer's ownership of the Common Securities, (ii) as holder of the Common
Securities, not to voluntarily dissolve, windup or liquidate the Issuer Trust,
other than (a) in connection with a distribution of Debentures to the holders of
the Capital Securities in liquidation of the Issuer Trust or (b) in connection
with certain mergers, consolidations or amalgamations permitted by the Trust
Agreement and (iii) to use its reasonable efforts, consistent with the terms and
provisions of the Trust Agreement, to cause the Issuer Trust to continue not to
be taxable as a corporation for United States federal income tax purposes.

     If, and for so long as, (i) the Issuer Trust is the holder of all the
Debentures and (ii) the Issuer Trust is required to pay any additional taxes,
duties or other governmental charges as a result of a Tax Event, the Issuer will
pay as additional sums on the Debentures ("Additional Sums") such amounts as may
be required so that the Distributions (as defined in the Trust Agreement) paid
by the Issuer Trust will not be reduced as a result of any such additional
taxes, duties or other governmental charges.

                                       10
<PAGE>

     The Issuer, as borrower, agrees to pay all debts and other obligations
(other than with respect to the Capital Securities issued by the Issuer Trust)
and all costs and expenses of the Issuer Trust (including costs and expenses
relating to the organization of the Issuer Trust, the fees and expenses of the
Issuer Trustees (as defined in the Trust Agreement) for the Issuer Trust and the
costs and expenses relating to the operation of the Issuer Trust) and to pay any
and all taxes and all costs and expenses with respect thereto (other than United
States withholding taxes) to which the Issuer Trust might become subject. The
foregoing obligations of the Issuer under the Debentures owned by the Issuer
Trust are for the benefit of, and shall be enforceable by, any Person to whom
any such debts, obligations, costs, expenses and taxes are owed (a "Creditor")
whether or not such Creditor has received notice thereof. Any such Creditor may
enforce such obligations of the Issuer directly against the Issuer, and the
Issuer irrevocably waives any right or remedy to require that any such Creditor
take any action against the Issuer Trust or any other Person before proceeding
against the Issuer. The Issuer agrees to execute any additional agreements as
may be necessary or desirable to give full effect to the foregoing.

     The provisions of Section 3.04 and Section 10.01 of the Junior Subordinated
Indenture relating to discharge, defeasance and covenant defeasance are not
applicable to this Debenture.

     This Debenture and all other obligations of the Issuer hereunder will
constitute part of the junior subordinated debt of the Issuer, will be issued
under the Junior Subordinated Indenture and will be subordinate and junior in
right of payment, to the extent and in the manner set forth in the Junior
Subordinated Indenture, to all Senior Indebtedness of the Issuer. For the
purposes of this Debenture, "Senior Indebtedness" means (i) obligations (other
than non-recourse obligations, the Securities, including this Debenture, issued
under the Junior Subordinated Indenture or any other obligations specifically
designated as being subordinate in right of payment to Senior Indebtedness) of,
or guaranteed or assumed by, the Issuer for borrowed money or evidenced by
bonds, debentures, notes or similar instruments, including obligations with
respect to securities issued under the Issuer's Senior Indentures, Senior
Subordinated Indentures, 1998 Junior Subordinated Indenture or 2004 Junior
Subordinated Indenture, and amendments, renewals, extensions, modifications and
refundings of any of such indebtedness or of such obligations, (ii) capitalized
lease obligations of the Issuer, (iii) obligations of the Issuer issued or
assumed as the deferred purchase price of property, (iv) obligations of the
Issuer in respect of interest rate, foreign exchange rate and commodity forward
contracts, options and swaps and similar arrangements and (v) all obligations of
the type referred to in clauses (i) through (iv) of other Persons which the
Issuer has guaranteed or is responsible or liable for as obligor or otherwise
[to be modified if permitted by the applicable Junior Subordinated Indenture

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<PAGE>

and if provided in the supplemental indenture under which a series of Securities
is issued or in the form of Security for such series, including this Debenture,
and modifications to this definition of Senior Indebtedness, including
additional obligations that the Issuer may determine to include within this
definition and obligations that may be excluded from this definition].

     This Debenture, and any Debenture or Debentures issued upon transfer or
exchange hereof, is issuable only in fully registered form, without coupons, and
is issuable only in denominations of U.S. $25 and any integral multiple of U.S.
$25 in excess thereof, unless otherwise indicated on the face thereof.

     The Bank of New York has been appointed registrar for the Debentures (the
"Registrar," which term includes any successor registrar appointed by the
Issuer), and the Registrar will maintain at its office in The City of New York a
register for the registration and transfer of Debentures. This Debenture may be
transferred at the aforesaid office of the Registrar by surrendering this
Debenture for cancellation, accompanied by a written instrument of transfer in
form satisfactory to the Registrar and duly executed by the registered holder
hereof in person or by the holder's attorney duly authorized in writing, and
thereupon the Registrar shall issue in the name of the transferee or
transferees, in exchange herefor, a new Debenture or Debentures 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 Registrar will not be required (i) to register the transfer of
or exchange any Debenture that has been called for redemption in whole or in
part, except the unredeemed portion of Debentures being redeemed in part or (ii)
to register the transfer of or exchange Debentures to the extent and during the
period so provided in the Junior Subordinated Indenture with respect to the
redemption of Debentures. Debentures are exchangeable at said office for other
Debentures of other authorized denominations of equal aggregate principal amount
having identical terms and provisions. All such exchanges and transfers of
Debentures 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 Debentures surrendered for exchange shall be accompanied by a
written instrument of transfer in form satisfactory to the Registrar and
executed by the registered holder in person or by the holder's attorney duly
authorized in writing. The date of registration of any Debenture delivered upon
any exchange or transfer of Debentures shall be such that no gain or loss of
interest results from such exchange or transfer.

     In case this Debenture shall at any time become mutilated, defaced or be
destroyed, lost or stolen and this Debenture 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 Registrar, a new Debenture of like tenor will be issued by the
Issuer in exchange for this Debenture, but, if this Debenture has been
destroyed, lost or stolen, only upon receipt of evidence satisfactory to the
Registrar and the Issuer that such Debenture was destroyed or lost or stolen
and, if required, upon receipt also of indemnity satisfactory to each of them.
All expenses and reasonable

                                       12
<PAGE>

charges associated with procuring such indemnity and with the preparation,
authentication and delivery of a new Debenture shall be borne by the owner of
the Debenture mutilated, defaced, destroyed, lost or stolen.

     The Junior Subordinated 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 Junior Subordinated
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 and the prior written consent of each registered
holder of Capital Securities, to the extent that the Debentures are held by any
Morgan Stanley Capital Trust (including Morgan Stanley Capital Trust [ ]), (i)
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, except as otherwise provided herein or in the Junior Subordinated
Indenture, or reduce any amount payable on redemption or repayment thereof, or
change the currency of payment thereof, or impair or affect the rights of any
holder to institute suit for the payment thereof without the consent of the
holder of each debt security so affected or (ii) reduce the aforesaid percentage
in principal amount of debt securities the consent of the holders of which is
required for any such supplemental indenture; provided, however, that neither
this Debenture nor the Junior Subordinated Indenture may be amended to alter the
subordination provisions hereof or thereof without the written consent of each
holder of Senior Indebtedness then outstanding that would be adversely affected
thereby. In addition, so long as any of the Capital Securities remain
outstanding, no such modification may be made that adversely affects the holders
of such Capital Securities in any material respect, and no termination of the
Junior Subordinated Indenture may occur, and no waiver of any Event of Default
or Default may be effective, without the prior consent of the holders of at
least a majority of the aggregate Liquidation Amount of the outstanding Capital
Securities unless and until the principal of (and premium, if any, on) the
Debentures and all accrued and unpaid interest thereon have been paid in full
and certain other conditions are satisfied. So long as the Issuer acts in
accordance with the terms of the Debentures, the Issuer may defer interest
payable on the Debentures in accordance with the terms hereof without the
consent of the Issuer Trust or the holders of Capital Securities. However, the
Issuer may not amend this Debenture or the Junior Subordinated Indenture to
remove the rights of registered holders of Capital Securities to institute a
Direct Action without the prior written consent of all the registered holders of
Capital Securities of the Trust.

     So long as this Debenture 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 Debenture as herein provided in the Borough of

                                       13
<PAGE>

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
Debentures. Under Section 3.02 of the Junior Subordinated Indenture, the Issuer
has initially appointed the Corporate Trust Office of the Trustee in the Borough
of Manhattan, The City of New York, as its agency for the foregoing purposes.
The Issuer may subsequently 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 other than that of the Trustee.

     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 Debentures 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 Debentures 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 Debenture as the same shall
become due.

     No provision of this Debenture or of the Junior Subordinated 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
Debenture 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 Debenture.

     Prior to due presentment of this Debenture 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 Debenture is registered as the owner hereof for all
purposes, whether or not this Debenture 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 Debenture, for any claim based hereon, or otherwise
in respect hereof, or based on or in respect of the Junior Subordinated
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

                                       14
<PAGE>

acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

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

                                       15
<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.

                                       16
<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 Debenture and all rights thereunder, hereby irrevocably constituting
and appointing such person attorney to transfer such Debenture 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 Debenture in every particular
          without alteration or enlargement or any change whatsoever.

Signature Guaranty: ____________________________________

     Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                       17EXHIBIT 4-ww

                        MORGAN STANLEY CAPITAL TRUST [ ]

                     CAPITAL SECURITIES GUARANTEE AGREEMENT

                                     Between

                                 MORGAN STANLEY
                                 (as Guarantor)

                                       and

                              THE BANK OF NEW YORK
                             (as Guarantee Trustee)

      , 200

<PAGE>

             Certain Sections of this Guarantee Agreement relating
                       to Sections 310 through 318 of the
                           Trust Indenture Act of 1939

Trust Indenture Act                                        Guarantee Agreement
Section                                                                Section
-------------------                                        -------------------
(ss.) 310(a)(1).........................................................4.1(a)
(a)(2)..................................................................4.1(a)
(a)(3)..........................................................Not applicable
(a)(4)..........................................................Not applicable
(b).................................................................2,8,4.1(c)
(ss.) 311(a)....................................................Not applicable
(b).............................................................Not applicable
(ss.) 312(a)............................................................2.2(a)
(b).....................................................................2.2(b)
(c).............................................................Not applicable
(ss.) 313(a)...............................................................2.3
(a)(4).....................................................................2.3
(b)........................................................................2.3
(c)........................................................................2.3
(d)........................................................................2.3
(ss.) 314(a)...............................................................2.4
(b)........................................................................2.4
(c)(1).....................................................................2.5
(c)(2).....................................................................2.5
(c)(3).....................................................................2.5
(e)..............................................................1.1, 2.5, 3.2
(ss.) 315(a)............................................................3.1(d)
(b)........................................................................2.7
(c).....................................................................3.1(c)
(d).....................................................................3.1(d)
(e).............................................................Not applicable
(ss.) 316(a).....................................................1.1, 2.6, 5.4
(a)(1)(A)..................................................................5.4
(a)(1)(B)..................................................................5.4
(a)(2)..........................................................Not applicable
(b)........................................................................5.3
(c).............................................................Not applicable
(ss.) 317(a)(1).................................................Not applicable
(a)(2)..........................................................Not applicable
(b).............................................................Not applicable
(ss.) 318(a)...............................................................2.1

Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
      part of the Guarantee Agreement

                                      (i)
<PAGE>

                               TABLE OF CONTENTS

                                                                            Page
                                                                            ----

                                   ARTICLE I.
                                   DEFINITIONS

Section 1.1. Definitions.......................................................2

                                  ARTICLE II.
                              TRUST INDENTURE ACT

Section 2.1. Trust Indenture Act; Application..................................5
Section 2.2. List of Holders...................................................5
Section 2.3. Reports by the Guarantee Trustee..................................6
Section 2.4. Periodic Reports to the Guarantee Trustee.........................6
Section 2.5. Evidence of Compliance with Conditions Precedent..................6
Section 2.6. Events of Default; Waiver.........................................6
Section 2.7. Event of Default; Notice..........................................6
Section 2.8. Conflicting Interests.............................................7

                                  ARTICLE III.
               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

Section 3.1. Powers and Duties of the Guarantee Trustee........................7
Section 3.2. Certain Rights of Guarantee Trustee...............................8
Section 3.3. Indemnity........................................................10
Section 3.4. Expenses.........................................................10

                                  ARTICLE IV.
                               GUARANTEE TRUSTEE

Section 4.1. Guarantee Trustee; Eligibility...................................10
Section 4.2. Appointment, Removal and Resignation of the Guarantee Trustee....11

                                   ARTICLE V.
                                   GUARANTEE

Section 5.1. Guarantee........................................................12
Section 5.2. Waiver of Notice and Demand......................................12
Section 5.3. Obligations Not Affected.........................................12
Section 5.4. Rights of Holders................................................13
Section 5.5. Guarantee of Payment.............................................14
Section 5.6. Subrogation......................................................14
Section 5.7. Independent Obligations..........................................14

                                      (ii)
<PAGE>

                                 ARTICLE VI.
                         COVENANTS AND SUBORDINATION

Section 6.1. Subordination....................................................14
Section 6.2. Pari Passu Guarantees............................................15

                                  ARTICLE VII.
                                  TERMINATION

Section 7.1. Termination......................................................15

                                 ARTICLE VIII.
                                 MISCELLANEOUS

Section 8.1. Successors and Assigns...........................................15
Section 8.2. Amendments.......................................................15
Section 8.3. Notices..........................................................16
Section 8.4. Benefit..........................................................17
Section 8.5. Interpretation...................................................17
Section 8.6. Governing Law....................................................17
Section 8.7. Counterparts.....................................................18

                                      iii
<PAGE>

     This GUARANTEE AGREEMENT, dated as of       , 200 is executed and
delivered by MORGAN STANLEY, a Delaware corporation (the "Guarantor"), having
its principal office at 1585 Broadway, New York, New York 10036, and The Bank
of New York, a New York banking corporation, as trustee (the "Guarantee
Trustee"), for the benefit of the Holders (as defined herein) from time to time
of the Capital Securities (as defined herein) of Morgan Stanley Capital Trust
[  ], a Delaware statutory trust (the "Issuer Trust").

     WHEREAS, pursuant to an Amended and Restated Trust Agreement (the "Trust
Agreement"), dated as of    ,    200 , among Morgan Stanley, as Depositor, The
Bank of New York, as Property Trustee (the "Property Trustee"), The Bank of New
York (Delaware), as Delaware trustee (the "Delaware Trustee") (collectively, the
"Issuer Trustees"), two individuals selected by the holders of the Common
Securities to act as administrators with respect to the Issuer Trust (the
"Administrators"), and the Holders from time to time of preferred undivided
beneficial ownership interests in the assets of the Issuer Trust, the Issuer
Trust is issuing $   aggregate Liquidation Amount (as defined herein) of its   %
Capital Securities, Liquidation Amount $25 per capital security (the "Capital
Securities") (and may issue up to $   in aggregate Liquidation Amount of
additional Capital Securities pursuant to an over-allotment option granted to
the underwriters of the Capital Securities), representing preferred undivided
beneficial ownership interests in the assets of the Issuer Trust and having the
terms set forth in the Trust Agreement;

     WHEREAS, the Capital Securities will be issued by the Issuer Trust and the
proceeds thereof, together with the proceeds from the issuance of the Issuer
Trust's Common Securities (as defined herein), will be used to purchase the
Junior Subordinated Debentures (as defined in the Trust Agreement) of the
Guarantor which will be deposited with the Property Trustee under the Trust
Agreement, as trust assets; and

     WHEREAS, as incentive for the Holders to purchase the Capital Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth herein, to pay to the Holders of the Capital Securities the Guarantee
Payments (as defined herein) and to make certain other payments on the terms and
conditions set forth herein.

     NOW, THEREFORE, in consideration of the purchase of the Capital Securities
by each Holder, which purchase the Guarantor hereby acknowledges shall benefit
the Guarantor, and intending to be legally bound hereby, the Guarantor executes
and delivers this Guarantee Agreement for the benefit of the Holders from time
to time of the Capital Securities.

<PAGE>

                                   ARTICLE I.

                                  DEFINITIONS

     Section 1.1.  Definitions.

     As used in this Guarantee Agreement, the terms set forth below shall,
unless the context otherwise requires, have the following meanings. Capitalized
terms used but not otherwise defined herein shall have the meanings assigned to
such terms in the Trust Agreement as in effect on the date hereof.

     "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" when used 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.

     "Capital Securities" shall have the meaning specified in the first recital
of this Guarantee Agreement.

     "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer Trust.

     "Distributions" means preferential cumulative cash distributions
accumulating from and including       , 200 and payable quarterly in arrears on
      ,       , and of each year, commencing       , 200 , at the annual rate
of     % of the Liquidation Amount.

     "Event of Default" means (i) a default by the Guarantor in any of its
payment obligations under this Guarantee Agreement or (ii) a default by the
Guarantor in any other obligation hereunder that remains unremedied for 30 days.

     "Guarantee Agreement" means this Guarantee Agreement, as modified, amended
or supplemented from time to time.

     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the Capital Securities, to the extent not paid or
made by or on behalf of the Issuer Trust: (i) any accumulated and unpaid
Distributions required to be paid on the Capital Securities, to the extent the
Issuer Trust shall have funds on hand available therefor at such time, (ii) the
Redemption Price, with respect to the Capital Securities called for redemption
by the Issuer Trust, to the extent that the Issuer Trust shall have funds on
hand available therefor at such time, and (iii) upon a voluntary or involuntary
dissolution, winding-up or liquidation of

                                       2
<PAGE>

the Issuer Trust, unless Junior Subordinated Debentures are distributed to the
Holders, the lesser of (a) the aggregate of the Liquidation Amount and all
accumulated and unpaid Distributions to but excluding the date of payment, to
the extent that the Issuer Trust shall have funds on hand available therefor at
such time, and (b) the amount of assets of the Issuer Trust remaining available
for distribution to Holders on liquidation of the Issuer Trust (in either case,
the "Liquidation Distribution").

     "Guarantee Trustee" means The Bank of New York, until a Successor Guarantee
Trustee has been appointed and has accepted such appointment pursuant to the
terms of this Guarantee Agreement and thereafter means each such Successor
Guarantee Trustee.

     "Guarantor" shall have the meaning specified in the first paragraph of this
Guarantee Agreement.

     "Holder" means any holder, as registered on the books and records of the
Issuer Trust, of any Capital Securities; provided, however, that, in determining
whether the holders of the requisite percentage of Capital Securities have given
any request, notice, consent or waiver hereunder, "Holder" shall not include the
Guarantor, the Guarantee Trustee, or any Affiliate of the Guarantor or the
Guarantee Trustee.

     "Indenture" means the [                   ] Junior Subordinated Indenture
dated as of [               ], between Morgan Stanley and The Bank of New York,
as trustee, as may be modified, amended or supplemented from time to time.

     "Issuer Trust" shall have the meaning specified in the first paragraph of
this Guarantee Agreement.

     "Liquidation Amount" means the stated amount of $25 per Capital Security.

     "Majority in Liquidation Amount of the Capital Securities" means, except as
provided by the Trust Indenture Act, Capital Securities representing more than
50% of the aggregate Liquidation Amount of all then outstanding Capital
Securities issued by the Issuer Trust.

     "Like Amount" means (i) with respect to a redemption of Trust Securities,
Trust Securities having a Liquidation Amount equal to that portion of the
principal amount of Junior Subordinated Debentures to be contemporaneously
redeemed in accordance with the Junior Subordinated Indenture, allocated to the
Common Securities and to the Capital Securities based upon the relative
Liquidation Amounts of such classes and (ii) with respect to a distribution of
Junior Subordinated Debentures to Holders of Trust Securities in connection with
a dissolution or liquidation of the Issuer Trust, Junior Subordinated Debentures
having a principal amount equal to the Liquidation Amount of the Trust
Securities of the Holder to whom such Junior Subordinated Debentures are
distributed.

                                       3
<PAGE>

     "Officer's Certificate" means a certificate signed by any one of the
following: 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 of the Company or any other
person authorized by the Board of Directors to execute any such certificate, and
delivered to the Guarantee Trustee. Any Officer's Certificate delivered with
respect to compliance with a condition or covenant provided for in this
Guarantee Agreement shall include:

          (a) a statement by the officer signing the Officer's Certificate that
such officer has read the covenant or condition and the definitions relating
thereto;

          (b) a brief statement of the nature and scope of the examination or
investigation undertaken by such officer in rendering the Officer's Certificate;

          (c) a statement that such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

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

     "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "Redemption Date" means, with respect to any Capital Security to be
redeemed, the date fixed for such redemption by or pursuant to the Trust
Agreement; provided that each Junior Subordinated Debenture Redemption Date and
the stated maturity of the Junior Subordinated Debentures shall be a Redemption
Date for a Like Amount of Capital Securities.

     "Redemption Price" shall have the meaning specified in the Trust Agreement.

     "Responsible Officer" means, when used with respect to the Guarantee
Trustee, any officer assigned to the Corporate Trust Office, including any
managing director, vice president, assistant vice president, assistant
treasurer, assistant secretary or any other officer of the Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and having direct responsibility for the administration of
this Guarantee Agreement, and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer's
knowledge of and familiarity with the particular subject.

     "Senior Indebtedness" shall have the meaning specified in the Indenture.

                                       4
<PAGE>

     "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.

     "Trust Agreement" means the Amended and Restated Trust Agreement, dated as
of , 200. executed by Morgan Stanley, as Depositor, The Bank of New York
(Delaware), as Delaware Trustee, The Bank of New York, as Property Trustee, and
the Administrators named therein.

     "Trust Indenture Act" means the Trust Indenture Act of 1939 (15 U.S.C.
ss.ss. 77aaa-77bbbb), as amended.

     "Trust Securities" means the Common Securities and the Capital Securities.

                                  ARTICLE II.

                              TRUST INDENTURE ACT

     Section 2.1.  Trust Indenture Act; Application.

     If any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act that is required under such Act to be apart of and
govern this Guarantee Agreement, the provision of the Trust Indenture Act shall
control. If any provision of this Guarantee Agreement modifies or excludes any
provision of the Trust Indenture Act that may be so modified or excluded, the
latter provision shall be deemed to apply to this Guarantee Agreement as so
modified or to be excluded, as the case may be.

     Section 2.2.  List of Holders.

          (a) The Guarantor will furnish or cause to be furnished to the
Guarantee Trustee a list of Holders at the following times:

          (i) quarterly, not more than 15 days after , , and in each year, a
          list, in such form as the Guarantee Trustee may reasonably require, of
          the names and addresses of the Holders as of such , , and ; and

          (ii) at such other times as the Guarantee Trustee may request in
          writing, within 30 days after the receipt by the Guarantor 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.

          (b) The Guarantee Trustee shall comply with the requirements of
Section 312(b) of the Trust Indenture Act.

                                       5
<PAGE>

     Section 2.3.  Reports by the Guarantee Trustee.

     Not later than        of each year, commencing       , 200 , the Guarantee
Trustee shall  provide to the Holders such  reports,  if any, as are required by
Section 313 of the Trust Indenture Act in the form and in the manner provided by
Section 313 of the Trust Indenture Act. The Guarantee  Trustee shall also comply
with the requirements of Section 313(d) of the Trust Indenture Act.

     Section 2.4.  Periodic Reports to the Guarantee Trustee.

     The Guarantor shall provide to the Guarantee Trustee, and the Holders such
documents, reports and information, if any, as required by Section 314 of the
Trust Indenture Act and the compliance certificate required by Section 314 of
the Trust Indenture Act, in the form, in the manner and at the times required by
Section 314 of the Trust Indenture Act.

     Section 2.5.  Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with such conditions precedent, if any, provided for in this
Guarantee Agreement that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officer's Certificate.

     Section 2.6.  Events of Default; Waiver.

     The Holders of a Majority in Liquidation Amount of the Capital Securities
may, by vote, on behalf of the Holders, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Guarantee Agreement, but no such waiver shall extend
to any subsequent or other default or Event of Default or impair any right
consequent therefrom.

     Section 2.7.  Event of Default; Notice.

          (a) The Guarantee Trustee shall, within 90 days after the occurrence
of an Event of Default, transmit by mail, first class postage prepaid, to the
Holders, notices of all Events of Default known to the Guarantee Trustee, unless
such Events of Default have been cured before the giving of such notice;
provided that, except in the case of a default in the payment of a Guarantee
Payment, the Guarantee Trustee shall be protected in withholding such notice if
and so long as the Board of Directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Guarantee Trustee in
good faith determines that the withholding of such notice is in the interests of
the Holders.

                                       6
<PAGE>

          (b) The Guarantee Trustee shall not be deemed to have knowledge of any
Event of Default unless a Responsible Officer charged with the administration of
this Guarantee Agreement shall have received written notice of such Event of
Default.

     Section 2.8.  Conflicting Interests.

     The Trust Agreement shall be deemed to be specifically described in this
Guarantee Agreement for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

                                  ARTICLE III.

               POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE

     Section 3.1.  Powers and Duties of the Guarantee Trustee.

          (a) This Guarantee Agreement shall be held by the Guarantee Trustee
for the benefit of the Holders, and the Guarantee Trustee shall not transfer
this Guarantee Agreement to any Person except a Holder exercising his or her
rights pursuant to Section 5.4(iv) or to a Successor Guarantee Trustee on
acceptance by such Successor Guarantee Trustee of its appointment to act as
Successor Guarantee Trustee hereunder. The right, title and interest of the
Guarantee Trustee, as such, hereunder shall automatically vest in any Successor
Guarantee Trustee, upon acceptance by such Successor Guarantee Trustee of its
appointment hereunder, and such vesting and cessation of title shall be
effective whether or not conveyancing documents have been executed and delivered
pursuant to the appointment of such Successor Guarantee Trustee.

          (b) If an Event of Default has occurred and is continuing, the
Guarantee Trustee shall enforce this Guarantee Agreement for the benefit of the
Holders.

          (c) The Guarantee Trustee, before the occurrence of any Event of
Default and after the curing of all Events of Default that may have occurred,
shall be obligated to perform only such duties as are specifically set forth in
this Guarantee Agreement (including pursuant to Section 2.1), and no implied
covenants shall be read into this Guarantee Agreement against the Guarantee
Trustee. If an Event of Default has occurred (that has not been cured or waived
pursuant to Section 2.6), the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee Agreement, and use the same
degree of care and skill in its exercise thereof, as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

          (d) No provision of this Guarantee Agreement shall be construed to
relieve the Guarantee Trustee from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

                                       7
<PAGE>

               (i) Prior to the occurrence of any Event of Default and after the
curing or waiving of all such Events of Default that may have occurred:

                    (A) the duties and obligations of the Guarantee Trustee
          shall be determined solely by the express provisions of this Guarantee
          Agreement (including pursuant to Section 2.1), and the Guarantee
          Trustee shall not be liable except for the performance of such duties
          and obligations as are specifically set forth in this Guarantee
          Agreement (including pursuant to Section 2.1); and

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

               (ii) The Guarantee Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Guarantee Trustee,
unless it shall be proved that the Guarantee Trustee was negligent in
ascertaining the pertinent facts upon which such judgment was made;

               (iii) The Guarantee Trustee 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 not less than a Majority in Liquidation Amount
of the Capital Securities relating to the time, method and place of conducting
any proceeding for any remedy available to the Guarantee Trustee, or exercising
any trust or power conferred upon the Guarantee Trustee under this Guarantee
Agreement; and

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

     Section 3.2.  Certain Rights of Guarantee Trustee.

          (a) Subject to the provisions of Section 3.1:

                                       8
<PAGE>

               (i) The Guarantee Trustee may conclusively rely and shall be
fully protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document reasonably believed by it to be genuine and to have been
signed, sent or presented by the proper party or parties.

               (ii) Any direction or act of the Guarantor contemplated by this
Guarantee Agreement shall be sufficiently evidenced by an Officer's Certificate
unless otherwise prescribed herein.

               (iii) Whenever, in the administration of this Guarantee
Agreement, the Guarantee Trustee shall deem it desirable that a matter be proved
or established before taking, suffering or omitting to take any action
hereunder, the Guarantee Trustee (unless other evidence is herein specifically
prescribed) may, in the absence of bad faith on its part, request and
conclusively rely upon an Officer's Certificate which, upon receipt of such
request from the Guarantee Trustee, shall be promptly delivered by the
Guarantor.

               (iv) The Guarantee Trustee may consult with legal counsel, and
the advice or written opinion of such legal counsel with respect to legal
matters shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted to be taken by it hereunder in good faith
and in accordance with such advice or opinion. Such legal counsel may be legal
counsel to the Guarantor or any of its Affiliates and may be one of its
employees. The Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Guarantee Agreement from any
court of competent jurisdiction.

               (v) The Guarantee Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Guarantee Agreement at
the request or direction of any Holder, unless such Holder shall have provided
to the Guarantee Trustee such security and indemnity as would satisfy a
reasonable person in the position of the Guarantee Trustee, against the costs,
expenses (including attorneys' fees and expenses) and liabilities that might be
incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Guarantee Trustee.

               (vi) The Guarantee Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Guarantee Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit.

               (vii) The Guarantee Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through its agents or attorneys,

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<PAGE>

and the Guarantee Trustee shall not be responsible for any negligence or willful
misconduct on the part of any such agent or attorney appointed with due care by
it hereunder.

               (viii) Whenever in the administration of this Guarantee Agreement
the Guarantee Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action hereunder,
the Guarantee Trustee (A) may request instructions from the Holders, (B) may
refrain from enforcing such remedy or right or taking such other action until
such instructions are received and (C) shall be fully protected in acting in
accordance with such instructions.

          (b) No provision of this Guarantee Agreement shall be deemed to impose
any duty or obligation on the Guarantee Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it in any
jurisdiction in which it shall be illegal, or in which the Guarantee Trustee
shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Guarantee Trustee
shall be construed to be a duty to act in accordance with such power and
authority.

     Section 3.3.  Indemnity.

     The Guarantor agrees to indemnify the Guarantee Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence,
willful misconduct or bad faith on the part of the Guarantee Trustee, arising
out of or in connection with the acceptance or administration of this Guarantee
Agreement, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder. The Guarantee Trustee will not claim or exact any
lien or charge on any Guarantee Payments as a result of any amount due to it
under this Guarantee Agreement.

     Section 3.4.  Expenses.

     The Guarantor shall from time to time reimburse the Guarantee Trustee for
its expenses and costs (including reasonable attorneys' or agents' fees)
incurred in connection with the performance of its duties hereunder.

                                  ARTICLE IV.

                                GUARANTEE TRUSTEE

     Section 4.1.  Guarantee Trustee; Eligibility.

          (a) There shall at all times be a Guarantee Trustee which shall:

               (i) not be an Affiliate of the Guarantor; and

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<PAGE>

               (ii) be a Person that is eligible pursuant to the Trust Indenture
Act to act as such and has a combined capital and surplus of at least
$50,000,000, and shall be a corporation meeting the requirements of Section
310(a) of the Trust Indenture Act. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
supervising or examining authority, then, for the purposes of this Section and
to the extent permitted by the Trust Indenture Act, 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.

          (b) If at any time the Guarantee Trustee shall cease to be eligible to
so act under Section 4.1(a), the Guarantee Trustee shall immediately resign in
the manner and with the effect set out in Section 4.2.

          (c) If the Guarantee Trustee has or shall acquire any "conflicting
interest" within the meaning of Section 310(b) of the Trust Indenture Act, the
Guarantee Trustee and Guarantor shall in all respects comply with the provisions
of Section 310(b) of the Trust Indenture Act.

     Section 4.2.  Appointment, Removal and Resignation of the Guarantee
Trustee.

          (a) No resignation or removal of the Guarantee Trustee and no
appointment of a Successor Guarantee Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the Successor Guarantee
Trustee by written instrument executed by the Successor Guarantee Trustee and
delivered to the Holders and the Guarantee Trustee.

          (b) Subject to the immediately preceding paragraph, a Guarantee
Trustee may resign at any time by giving written notice thereof to the Holders.
The Guarantee Trustee shall appoint a successor by requesting from at least
three Persons meeting the eligibility requirements such Person's expenses and
charges to serve as the Guarantee Trustee, and selecting the Person who agrees
to the lowest expenses and charges. If the instrument of acceptance by the
Successor Guarantee Trustee shall not have been delivered to the Guarantee
Trustee within 60 days after the giving of such notice of resignation, the
Guarantee Trustee may petition, at the expense of the Guarantor, any court of
competent jurisdiction for the appointment of a Successor Guarantee Trustee.

          (c) The Guarantee Trustee may be removed for cause at any time by Act
(within the meaning of Section 6.8 of the Trust Agreement) of the Holders of at
least a Majority in Liquidation Amount of the Capital Securities, delivered to
the Guarantee Trustee.

          (d) If a resigning Guarantee Trustee shall fail to appoint a
successor, or if a Guarantee Trustee shall be removed or become incapable of
acting as Guarantee Trustee, or if any vacancy shall occur in the office of any
Guarantee Trustee for any cause, the Holders of the Capital Securities, by Act
of the Holders of record of not less than 25% in aggregate Liquidation

                                       11
<PAGE>

Amount of the Capital Securities then outstanding delivered to such Guarantee
Trustee, shall promptly appoint a successor Guarantee Trustee. If no Successor
Guarantee Trustee shall have been so appointed by the Holders of the Capital
Securities and such appointment accepted by the Successor Guarantee Trustee, any
Holder, on behalf of himself and all others similarly situated, may petition any
court of competent jurisdiction for the appointment of a Successor Guarantee
Trustee.

                                   ARTICLE V.

                                   GUARANTEE

     Section 5.1.  Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full, on a
subordinated basis as set forth in Article VI, to the Holders the Guarantee
Payments (without duplication of amounts theretofore paid by or on behalf of the
Issuer Trust), as and when due, regardless of any defense, right of set-off or
counterclaim which the Issuer Trust may have or assert, except the defense of
payment. The Guarantor's obligation to make a Guarantee Payment may be satisfied
by direct payment of the required amounts by the Guarantor to the Holders or by
causing the Issuer Trust to pay such amounts to the Holders. The Guarantor shall
give prompt written notice to the Guarantee Trustee in the event it makes any
direct payment hereunder.

     Section 5.2.  Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of the Guarantee Agreement
and of any liability to which it applies or may apply, presentment, demand for
payment, any right to require a proceeding first against the Guarantee Trustee,
the Issuer Trust or any other Person before proceeding against the Guarantor,
protest, notice of nonpayment, notice of dishonor, notice of redemption and all
other notices and demands.

     Section 5.3.  Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under
this Guarantee Agreement shall in no way be affected or impaired by reason of
the happening from time to time of any of the following:

          (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer Trust of any express or implied
agreement, covenant, term or condition relating to the Capital Securities to be
performed or observed by the Issuer Trust;

          (b) the extension of time for the payment by the Issuer Trust of all
or any portion of the Distributions (other than an extension of time for payment
of Distributions that results from the extension of any interest payment period
on the Junior Subordinated Debentures

                                       12
<PAGE>

as so provided in the Indenture), Redemption Price, Liquidation Distribution or
any other sums payable under the terms of the Capital Securities or the
extension of time for the performance of any other obligation under, arising out
of, or in connection with, the Capital Securities;

          (c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Capital Securities, or any
action on the part of the Issuer Trust granting indulgence or extension of any
kind;

          (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer Trust or any of the assets of
the Issuer Trust;

          (e) any invalidity of, or defect or deficiency in, the Capital
Securities;

          (f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or

          (g) any other circumstance whatsoever that might otherwise constitute
a legal or equitable discharge or defense of a guarantor (other than payment of
the underlying obligation), it being the intent of this Section 5.3 that the
obligations of the Guarantor hereunder shall be absolute and unconditional under
any and all circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain
the consent of, the Guarantor with respect to the happening of any of the
foregoing.

     Section 5.4.  Rights of Holders.

     The Guarantor expressly acknowledges that: (i) this Guarantee Agreement
will be deposited with the Guarantee Trustee to be held for the benefit of the
Holders; (ii) the Guarantee Trustee has the right to enforce this Guarantee
Agreement on behalf of the Holders; (iii) the Holders of a Majority in
Liquidation Amount of the Capital Securities have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee Agreement or exercising any trust
or power conferred upon the Guarantee Trustee under this Guarantee Agreement;
and (iv) any Holder may institute a legal proceeding directly against the
Guarantor to enforce its rights under this Guarantee Agreement, without first
instituting a legal proceeding against the Guarantee Trustee, the Issuer Trust
or any other Person.

                                       13
<PAGE>

     Section 5.5.  Guarantee of Payment.

     This Guarantee Agreement creates a guarantee of payment and not of
collection. This Guarantee Agreement will not be discharged except by payment of
the Guarantee Payments in full (without duplication of amounts theretofore paid
by the Issuer Trust) or upon the distribution of Junior Subordinated Debentures
to Holders as provided in the Trust Agreement.

     Section 5.6.  Subrogation.

     The Guarantor shall be subrogated to all rights (if any) of the Holders
against the Issuer Trust in respect of any amounts paid to the Holders by the
Guarantor under this Guarantee Agreement; provided, however, that the Guarantor
shall not (except to the extent required by mandatory provisions of law) be
entitled to enforce or exercise any rights which it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Guarantee Agreement, at the time of any such
payment, any amounts are due and unpaid under this Guarantee Agreement or any
payments are due to the holders of Capital Securities under the Trust Agreement.
If any amount shall be paid to the Guarantor in violation of the preceding
sentence, the Guarantor agrees to hold such amount in trust for the Holders and
to pay over such amount to the Holders.

     Section 5.7.  Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Issuer Trust with respect to the Capital Securities
and that the Guarantor shall be liable as principal and as debtor hereunder to
make Guarantee Payments pursuant to the terms of this Guarantee Agreement
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.

                                  ARTICLE VI.

                          COVENANTS AND SUBORDINATION

     Section 6.1.  Subordination.

     This Guarantee Agreement will constitute an unsecured obligation of the
Guarantor and will rank subordinate and junior in right of payment to all Senior
Indebtedness of the Guarantor to the extent and in the manner set forth in the
Indenture with respect to the Junior Subordinated Debentures, and the provisions
of Article XIII of the Indenture will apply, mutatis mutandis, to the
obligations of the Guarantor hereunder. The obligations of the Guarantor
hereunder do not constitute Senior Indebtedness of the Guarantor.

                                       14
<PAGE>

     Section 6.2.  Pari Passu Guarantees.

     The obligations of the Guarantor under this Guarantee Agreement shall rank
pari passu with any similar guarantee agreements issued by the Guarantor on
behalf of the holders of preferred or capital securities issued by the Issuer
Trust and with any other security, guarantee or other obligation that is
expressly stated to rank pari passu with the obligations of the Guarantor under
this Guarantee Agreement.

                                  ARTICLE VII.

                                  TERMINATION

     Section 7.1.  Termination.

     This Guarantee Agreement shall terminate and be of no further force and
effect upon (i) full payment of the Redemption Price of all Capital Securities,
(ii) the distribution of Junior Subordinated Debentures to the Holders in
exchange for all of the Capital Securities or (iii) full payment of the amounts
payable in accordance with Article IX of the Trust Agreement upon liquidation of
the Issuer Trust. Notwithstanding the foregoing, this Guarantee Agreement will
continue to be effective or will be reinstated, as the case maybe, if at any
time any Holder is required to repay any sums paid with respect to Capital
Securities or this Guarantee Agreement.

                                 ARTICLE VIII.

                                 MISCELLANEOUS

     Section 8.1.  Successors and Assigns.

     All guarantees and agreements contained in this Guarantee Agreement shall
bind the successors, assigns, receivers, trustees and representatives of the
Guarantor and shall inure to the benefit of the Holders of the Capital
Securities then outstanding. Except in connection with a consolidation, merger
or sale involving the Guarantor that is permitted under Article IX of the
Indenture and pursuant to which the assignee agrees in writing to perform the
Guarantor's obligations hereunder, the Guarantor shall not assign its
obligations hereunder, and any purported assignment that is not in accordance
with these provisions shall be void.

     Section 8.2.  Amendments.

     Except with respect to any changes that do not materially adversely affect
the rights of the Holders (in which case no consent of the Holders will be
required), this Guarantee Agreement may only be amended with the prior approval
of the Holders of not less than a Majority in Liquidation Amount of the Capital
Securities. The provisions of Article VI of the Trust Agreement concerning
meetings of the Holders shall apply to the giving of such approval.

                                       15
<PAGE>

     Section 8.3.  Notices.

     Any notice, request or other communication required or permitted to be
given hereunder shall be in writing, duly signed by the party giving such
notice, and delivered, telecopied (confirmed by delivery of the original) or
mailed by first class mail as follows:

          (a) if given to the Guarantor, to the address or telecopy number set
forth below or such other address or telecopy number or to the attention of such
other Person as the Guarantor may give notice to the Holders:

          Morgan Stanley
          1585 Broadway
          New York, NY 10036
          Facsimile No.: (212)
          Attention: Office of the Secretary

          (b) if given to the Issuer Trust, in care of the Guarantee Trustee, at
the Issuer Trust's (and the Guarantee Trustee's) address set forth below or such
other address or telecopy number or to the attention of such other Person as the
Guarantee Trustee on behalf of the Issuer Trust may give notice to the Holders:

          c/o The Bank of New York
          101 Barclay Street, Floor 8 West
          New York, NY 10286
          Facsimile No.: (212)
          Attention: Corporate Trust Administration

          with a copy to:

          Morgan Stanley
          1585 Broadway
          New York, NY 10036
          Facsimile No.: (212)
          Attention: Office of the Secretary

          (c) if given to the Guarantee Trustee:

          The Bank of New York
          101 Barclay Street, Floor 8 West
          New York, NY 10286
          Facsimile No.: (212)
          Attention: Corporate Trust Administration

                                       16
<PAGE>

          (d) if given to any Holder, at the address set forth on the books and
records of the Issuer Trust.

     All notices hereunder shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid, except that if a notice or other document is refused delivery
or cannot be delivered because of a changed address of which no notice was
given, such notice or other document shall be deemed to have been delivered on
the date of such refusal or inability to deliver.

     Section 8.4.  Benefit.

     This Guarantee Agreement is solely for the benefit of the Holders and is
not separately transferable from the Capital Securities.

     Section 8.5.  Interpretation.

     In this Guarantee Agreement, unless the context otherwise requires:

          (a) capitalized terms used in this Guarantee Agreement but not defined
in the preamble hereto have the respective meanings assigned to them in Section
1.1;

          (b) a term defined anywhere in this Guarantee Agreement has the same
meaning throughout;

          (c) all references to "the Guarantee Agreement" or "this Guarantee
Agreement" are to this Guarantee Agreement as modified, supplemented or amended
from time to time;

          (d) all references in this Guarantee Agreement to Articles and
Sections are to Articles and Sections of this Guarantee Agreement unless
otherwise specified;

          (e) a term defined in the Trust Indenture Act has the same meaning
when used in this Guarantee Agreement unless otherwise defined in this Guarantee
Agreement or unless the context otherwise requires;

          (f) a reference to the singular includes the plural and vice versa;
and

          (g) the masculine, feminine or neuter genders used herein shall
include the masculine, feminine and neuter genders.

     Section 8.6.  Governing Law.

     THIS GUARANTEE AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE

                                       17
<PAGE>

STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

     Section 8.7.  Counterparts.

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

                                       18
<PAGE>

     THIS GUARANTEE AGREEMENT is executed as of the day and year first above
written.

                                    MORGAN STANLEY,
                                    as Guarantor

                                    By:____________________________________

                                    Name:
                                    Title:

                                    The Bank of New York,
                                    as Guarantee Trustee, and not
                                    in its individual capacity

                                    By:____________________________________

                                    Name:
                                    Title:

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