Document:

Exhibit
        4.1

      FORM
        OF FIXED RATE SENIOR NOTE

       

      
        	
                REGISTERED

              	
                REGISTERED

              
	
                No.
                  FXR-1

              	
                U.S.
                  $

              
	 	
                CUSIP:
                  61747W489

              

      

    

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY

    SENIOR
      GLOBAL MEDIUM-TERM NOTE, SERIES F

    (Fixed
      Rate)

     

    STOCK
      PARTICIPATION ACCRETING

    REDEMPTION
      QUARTERLY-PAY SECURITIESSM
      (“SPARQS”)

     

    %
      SPARQS® DUE
      MARCH 20, 2009

    MANDATORILY
      EXCHANGEABLE

    FOR
      SHARES OF COMMON STOCK OF

    APPLE
      INC.

     

    
      	
              ORIGINAL
                ISSUE DATE:

            	
              INITIAL
                REDEMPTION DATE: See “Morgan Stanley Call Right” below.

            	
              INTEREST
                RATE:  % per annum

            	
              MATURITY
                DATE: See “Maturity Date” below.

            
	
              INTEREST
                ACCRUAL DATE:

            	
              INITIAL
                REDEMPTION PERCENTAGE: See “Morgan Stanley Call Right” and “Call Price”
                below.

            	
              INTEREST
                PAYMENT DATE(S): See “Interest Payment Dates” below.

            	
              OPTIONAL
                REPAYMENT DATE(S):  N/A

            
	
              SPECIFIED
                CURRENCY: U.S. dollars

            	
              ANNUAL
                REDEMPTION PERCENTAGE REDUCTION: N/A

            	
              INTEREST
                PAYMENT PERIOD: Quarterly

            	
              APPLICABILITY
                OF 

                    
                MODIFIED PAYMENT
                UPON ACCELERATION OR REDEMPTION: See “Alternate Exchange Calculation in
                Case of an Event of Default” below.

            
	
              IF
                SPECIFIED CURRENCY OTHER THAN U.S. DOLLARS, OPTION TO ELECT PAYMENT
                IN
                U.S. DOLLARS: N/A

            	
              REDEMPTION
                NOTICE PERIOD: At least 10 days but no more than 30 days.  See
                “Morgan Stanley Call Right” and “Morgan Stanley Notice Date”
                below.

            	
              APPLICABILITY
                OF ANNUAL INTEREST PAYMENTS: N/A

            	
              If
                yes, state Issue Price: N/A

            
	
              EXCHANGE
                RATE AGENT: N/A

            	
              TAX
                REDEMPTION AND PAYMENT OF ADDITIONAL AMOUNTS: NO

            	
              PRICE
                APPLICABLE UPON OPTIONAL REPAYMENT: N/A

            	
              ORIGINAL
                YIELD TO MATURITY: N/A

            
	
              OTHER
                PROVISIONS: See below.

            	
              IF
                YES, STATE INITIAL OFFERING DATE: N/A

            	 	 

    

     

     

    
      	
              Stated
                Principal Amount

            	 	
              $

            
	 	 	 
	
              Underlying
                Company

            	 	
              Apple
                Inc. (“AAPL”)

            

    

     

    
      
        
        

      

      
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              Underlying
                Stock

            	 	
              The
                common stock of AAPL

            
	 	 	 
	
              Pricing
                Date

            	 	 
	 	 	 
	
              Issue
                Price

            	 	
              $             per
                SPARQS

            
	 	 	 
	
              Denominations

            	 	
              $             and
                integral multiples thereof

            
	 	 	 
	
              Acceleration
                Trigger Price

            	 	
              The
                product of $2.00 and the Exchange Ratio as of the Original Issue
                Date.

            
	 	 	 
	
              Exchange
                Ratio

            	 	
                  ,
                subject to adjustment for corporate events relating to the Underlying
                Stock described under “Antidilution Adjustments” below.

            
	 	 	 
	
              Yield
                to Call

            	 	
                   %
                per annum

            
	 	 	 
	
              First
                Call Date

            	 	
              September
                20, 2008

            
	 	 	 
	
              Maturity
                Date

            	 	
              March
                20, 2009, subject to acceleration as described below in “Price Event
                Acceleration” and “Alternate Exchange Calculation in Case of an Event of
                Default” and subject to extension if the Final Call Notice Date is
                postponed in accordance with the definition thereof.  If the
                Final Call Notice Date is postponed because it is not a Trading Day
                or due
                to a Market Disruption Event and the Issuer exercises the Morgan
                Stanley
                Call Right, the scheduled Maturity Date shall be postponed so that
                the
                Maturity Date is the tenth calendar day following the Final Call
                Notice
                Date.  See “Final Call Notice Date” below.

               

              In
                the event that the Final Call Notice Date is postponed because it
                is not a
                Trading Day or due to a Market Disruption Event or otherwise, the
                Issuer
                shall give notice of such postponement as promptly as possible, and
                in no
                case later than two Business Days following the scheduled Final Call
                Notice Date, (i) to the holder of this SPARQS by mailing notice of
                such
                postponement by first class mail, postage prepaid, to the holder’s last
                address as it shall appear upon the registry books, (ii) to the Trustee
                by
                telephone or facsimile confirmed by mailing such notice to the Trustee
                by
                first class mail, postage prepaid, at its New York office and (iii)
                to The
                Depository Trust Company 

            

    

     

    
      
        
        

      

      
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      	 	 	(the
              “Depositary”) by telephone or facsimile confirmed by mailing such notice
              to the Depositary by first class mail, postage prepaid.  Any
              notice that is mailed in the manner herein provided shall be conclusively
              presumed to have been duly given, whether or not the holder of this
              SPARQS
              receives the notice.  Notice of the date to which the Maturity
              Date has been rescheduled as a result of postponement of the Final
              Call
              Notice Date, if applicable, shall be included in the Issuer’s notice of
              exercise of the Morgan Stanley Call Right.
	 	 	 
	
              Interest
                Payment Dates

            	 	
              June
                20, 2008, September
                20, 2008, December 20,
                2008 and
                the Maturity Date.

               

              If
                the scheduled Maturity Date is postponed, the Issuer shall pay interest
                on
                the Maturity Date as postponed rather than on the scheduled Maturity
                Date,
                but no interest shall accrue on this SPARQS or on such payment during
                the
                period from or after the scheduled Maturity Date.

            
	 	 	 
	
              Record
                Date

            	 	
              Notwithstanding
                the definition of “Record Date” below, the Record Date for each Interest
                Payment Date, including the Interest Payment Date scheduled to occur
                on
                the Maturity Date, shall be the date 5 calendar days prior to such
                scheduled Interest Payment Date, whether or not that date is a Business
                Day; provided, however, that in the event that the Issuer
                exercises the Morgan Stanley Call Right, no Interest Payment Date
                shall
                occur after the Morgan Stanley Notice Date, except for any Interest
                Payment Date for which the Morgan Stanley Notice Date falls on or
                after
                the “ex-interest” date for the related interest payment, in which case the
                related interest payment shall be made on such Interest Payment Date;
                and provided, further, that accrued but unpaid interest payable
                on the Call Date, if any, shall be payable to the person to whom
                the Call
                Price is payable.  The “ex-interest” date for any interest
                payment is the date on which purchase transactions in the SPARQS
                no longer
                carry the right to receive such interest payment. 

               

              In
                the event that the Issuer exercises the Morgan Stanley Call Right
                and the
                Morgan Stanley Notice

            

    

     

    
      
        
        

      

      
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              Date
                falls before the “ex-interest” date for an interest payment, so that as a
                result a scheduled Interest Payment Date does not occur, the Issuer
                shall
                cause the Calculation Agent to give notice to the Trustee and to
                the
                Depositary, in each case in the manner and at the time described
                in the
                second and third paragraphs under “Morgan Stanley Call Right” below, that
                no Interest Payment Date shall occur after such Morgan Stanley Notice
                Date.

            
	 	 	 
	
              Morgan
                Stanley Call Right

            	 	
              On
                any scheduled Trading Day on or after the First Call Date or on the
                Maturity Date (including the Maturity Date as it may be extended
                and
                regardless of whether the Maturity Date is a Trading Day), the Issuer
                may
                call the SPARQS, in whole but not in part, for mandatory exchange
                for the
                Call Price paid in cash (together with accrued but unpaid interest)
                on the
                Call Date.

               

              On
                the Morgan Stanley Notice Date, the Issuer shall give notice of the
                Issuer’s exercise of the Morgan Stanley Call Right (i) to the holder of
                this SPARQS by mailing notice of such exercise, specifying the Call
                Date
                on which the Issuer shall effect such exchange, by first class mail,
                postage prepaid, to the holder’s last address as it shall appear upon the
                registry books, (ii) to the Trustee by telephone or facsimile confirmed
                by
                mailing such notice to the Trustee by first class mail, postage prepaid,
                at its New York office and (iii) to the Depositary in accordance
                with the
                applicable procedures set forth in the Blanket Letter of Representations
                prepared by the Issuer.  Any notice which is mailed in the
                manner herein provided shall be conclusively presumed to have been
                duly
                given, whether or not the holder of this SPARQS receives the
                notice.  Failure to give notice by mail or any defect in the
                notice to the holder of any SPARQS shall not affect the validity
                of the
                proceedings for the exercise of the Morgan Stanley Call Right with
                respect
                to any other SPARQS.

               

              The
                notice of the Issuer’s exercise of the Morgan Stanley Call Right shall
                specify (i) the Call Date, (ii) the Call Price payable per SPARQS,
                (iii)
                the amount of accrued but unpaid interest payable per SPARQS on
                

            

    

     

    
      
        
        

      

      
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              the
                Call Date, (iv) whether any subsequently scheduled Interest Payment
                Date
                shall no longer be an Interest Payment Date as a result of the exercise
                of
                the Morgan Stanley Call Right, (v) the place or places of payment
                of such
                Call Price, (vi) that such delivery shall be made upon presentation
                and
                surrender of this SPARQS, (vii) that such exchange is pursuant to
                the
                Morgan Stanley Call Right and (viii) if applicable, the date to which
                the
                Maturity Date has been extended due to a Market Disruption Event
                as
                described under “Maturity Date” above.

               

              The
                notice of the Issuer’s exercise of the Morgan Stanley Call Right shall be
                given by the Issuer or, at the Issuer’s request, by the Trustee in the
                name and at the expense of the Issuer.

               

              If
                this SPARQS is so called for mandatory exchange by the Issuer, then
                the
                cash Call Price and any accrued but unpaid interest on this SPARQS
                to be
                delivered to the holder of this SPARQS shall be delivered on the
                Call Date
                fixed by the Issuer and set forth in its notice of its exercise of
                the
                Morgan Stanley Call Right, upon delivery of this SPARQS to the
                Trustee.  The Issuer shall, or shall cause the Calculation Agent
                to, deliver such cash to the Trustee for delivery to the holder of
                this
                SPARQS.

               

              If
                this SPARQS is not surrendered for exchange on the Call Date, it
                shall be
                deemed to be no longer Outstanding under, and as defined in, the
                Senior
                Indenture after the Call Date, except with respect to the holder’s right
                to receive cash due in connection with the Morgan Stanley Call
                Right.

            
	 	 	 
	
              Morgan
                Stanley Notice Date

            	 	
              The
                scheduled Trading Day on which the Issuer issues its notice of mandatory
                exchange, which must be at least 10 but not more than 30 calendar
                days
                prior to the Call Date.

            
	 	 	 
	
              Final
                Call Notice Date

            	 	
              March
                10, 2009; provided that if such date is not a Trading Day or if a
                Market Disruption Event occurs on such day, the Final Call Notice
                Date
                shall be the immediately succeeding Trading Day on which no Market
                Disruption Event occurs.

            

    

     

    
      
        
        

      

      
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              Call
                Date

            	 	
              The
                day specified in the Issuer’s notice of mandatory exchange, on which the
                Issuer shall deliver cash to the holder of this SPARQS, for mandatory
                exchange, which day may be any scheduled Trading Day on or after
                the First
                Call Date or the Maturity Date (including the Maturity Date as it
                may be
                extended and regardless of whether the Maturity Date is a scheduled
                Trading Day).  See “Maturity Date” above.

            
	 	 	 
	
              Call
                Price

            	 	
              The
                Call Price with respect to any Call Date is an amount of cash per
                each
                Stated Principal Amount of this SPARQS, as calculated by the Calculation
                Agent,  such that the sum of the present values of all cash
                flows on each Stated Principal Amount of this SPARQS to and including
                the
                Call Date (i.e., the Call Price and all of the interest payments,
                including accrued and unpaid interest payable on the Call Date),
                discounted to the Original Issue Date from the applicable payment
                date at
                the Yield to Call rate computed on the basis of a 360-day year of
                twelve
                30-day months, equals the Stated Principal Amount, as determined
                by the
                Calculation Agent.

            
	 	 	 
	
              Exchange
                at Maturity

            	 	
              At
                maturity, subject to a prior call of this SPARQS for cash in an amount
                equal to the Call Price by the Issuer as described under “Morgan Stanley
                Call Right” above or any acceleration of the SPARQS, upon delivery of this
                SPARQS to the Trustee, each Stated Principal Amount of this SPARQS
                shall
                be applied by the Issuer as payment for a number of shares of the
                Underlying Stock at the Exchange Ratio, and the Issuer shall deliver
                with
                respect to each Stated Principal Amount of this SPARQS an amount
                of the
                Underlying Stock equal to the Exchange Ratio.

               

              The
                amount of Underlying Stock to be delivered at maturity shall be subject
                to
                any applicable adjustments (i) to the Exchange Ratio (including,
                as
                applicable, any New Stock Exchange Ratio or any Basket Stock Exchange
                Ratio, each as defined in paragraph 5 under “Antidilution Adjustments”
                below) and (ii) in the Exchange Property, as defined in paragraph
                5 under
                “Antidilution
                Adjustments” below, to be delivered instead of, or in addition to, such
                Underlying Stock as a result of any corporate event described
                under

            

    

     

    
      
        
        

      

      
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              “Antidilution
                Adjustments” below, in each case, required to be made through the close of
                business on the third Trading Day prior to the scheduled Maturity
                Date.

            
	 	 	 
	 	 	
              The
                Issuer shall, or shall cause the Calculation Agent to, provide written
                notice to the Trustee at its New York Office and to the Depositary,
                on
                which notice the Trustee and Depositary may conclusively rely, on
                or prior
                to 10:30 a.m. on the Trading Day immediately prior to maturity of
                this
                SPARQS (but if such Trading Day is not a Business Day, prior to the
                close
                of business on the Business Day preceding the maturity of this SPARQS),
                of
                the amount of Underlying Stock (or the amount of Exchange Property)
                or
                cash to be delivered with respect to each Stated Principal Amount
                of this
                SPARQS and of the amount of any cash to be paid in lieu of any fractional
                share of the Underlying Stock (or of any other securities included
                in
                Exchange Property, if applicable); provided that if the maturity
                date of this SPARQS is accelerated (x) because of a Price Event
                Acceleration (as described under “Price Event Acceleration” below) or (y)
                because of an Event of Default Acceleration (as defined under “Alternate
                Exchange Calculation in Case of an Event of Default” below), the Issuer
                shall give notice of such acceleration as promptly as possible, and
                in no
                case later than (A) in the case of an Event of Default Acceleration,
                two
                Trading Days following such deemed maturity date or (B) in the case
                of a
                Price Event Acceleration, 10:30 a.m. on the Trading Day immediately
                prior
                to the date of acceleration (as defined under “Price Event Acceleration”
                below), (i) to the holder of this SPARQS by mailing notice of such
                acceleration by first class mail, postage prepaid, to the holder’s last
                address as it shall appear upon the registry books, (ii) to the Trustee
                by
                telephone or facsimile confirmed by mailing such notice to the Trustee
                by
                first class mail, postage prepaid, at its New York office and (iii)
                to the
                Depositary by telephone or facsimile confirmed by mailing such notice
                to
                the Depositary by first class mail, postage prepaid.  Any notice
                that is mailed in the manner herein provided shall be conclusively
                presumed to have been duly given, whether or not
                the

            

    

     

    
      
        
        

      

      
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                holder
                  of this SPARQS receives the notice.  If the maturity of this
                  SPARQS is accelerated, no interest on the amounts payable with
                  respect to
                  this SPARQS shall accrue for the period from and after such accelerated
                  maturity date; provided that the Issuer has deposited with the
                  Trustee the Underlying Stock, the Exchange Property or any cash
                  due with
                  respect to such acceleration by such accelerated maturity
                  date.

                 

                The
                  Issuer shall, or shall cause the Calculation Agent to, deliver
                  any such
                  shares of the Underlying Stock (or any Exchange Property) and cash
                  in
                  respect of interest and any fractional share of the Underlying
                  Stock (or
                  any Exchange Property) and cash otherwise due upon any acceleration
                  described above to the Trustee for delivery to the holder of this
                  Note.  References to payment “per SPARQS” refer to each Stated
                  Principal Amount of this SPARQS.

                 
If
                this SPARQS is not surrendered for exchange at maturity, it shall
                be
                deemed to be no longer Outstanding under, and as defined in, the
                Senior
                Indenture, except with respect to the holder’s right to receive Underlying
                Stock (and, if applicable, any Exchange Property) and any cash in
                respect
                of interest and any fractional share of the Underlying Stock (or
                any
                Exchange Property) and any other cash due at maturity as described
                in the
                preceding paragraph under this heading.

            
	 	 	 
	
              Price
                Event Acceleration

            	 	
              If
                on any two consecutive Trading Days during the period prior to and
                ending
                on the third Business Day immediately preceding the Maturity Date,
                the
                product of the Closing Price of the Underlying Stock and the Exchange
                Ratio is less than the Acceleration Trigger Price, the Maturity Date
                of
                this SPARQS shall be deemed to be accelerated to the third Business
                Day
                immediately following such second Trading Day (the “date of
                acceleration”).  Upon such acceleration, the holder of each
                Stated Principal Amount of this SPARQS shall receive per SPARQS on
                the
                date of acceleration:

               

              (i)
                a number of shares of the Underlying Stock at the then current Exchange
                Ratio;

            

    

     

    
      
        
        

      

      
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              (ii)
                accrued but unpaid interest on each Stated Principal Amount of this
                SPARQS
                to but excluding the date of acceleration; and

               

              (iii)
                an amount of cash as determined by the Calculation Agent equal to
                the sum
                of the present values of the remaining scheduled payments of interest
                on
                each Stated Principal Amount of this SPARQS (excluding the amounts
                included in clause (ii) above) discounted to the date of
                acceleration.  The present value of each remaining scheduled
                payment shall be based on the comparable yield that the Issuer would
                pay
                on a non-interest bearing, senior unsecured debt obligation of the
                Issuer
                having a maturity equal to the term of each such remaining scheduled
                payment, as determined by the Calculation Agent.

               

              The
                holder of this SPARQS shall not be entitled to receive the return
                of each
                Stated Principal Amount of this SPARQS upon a Price Event
                Acceleration.

            
	 	 	 
	
              No
                Fractional Shares

            	 	
              Upon
                delivery of this SPARQS to the Trustee at maturity, the Issuer shall
                deliver the aggregate number of shares of the Underlying Stock due
                with
                respect to this SPARQS, as described above, but the Issuer shall
                pay cash
                in lieu of delivering any fractional share of the Underlying Stock
                in an
                amount equal to the corresponding fractional Closing Price of such
                fraction of a share of the Underlying Stock as determined by the
                Calculation Agent as of the second scheduled Trading Day prior to
                maturity
                of this SPARQS.

            
	 	 	 
	
              Closing
                Price

            	 	
              The
                Closing Price for one share of the Underlying Stock (or one unit
                of any
                other security for which a Closing Price must be determined) on any
                Trading Day means:

            

    

    

    
      	 	 	•	
              if
                the Underlying Stock (or any such other security) is listed or admitted
                to
                trading on a national securities exchange (other than The NASDAQ
                Stock
                Market LLC (the “NASDAQ”)), the last reported sale price, regular way, of
                the principal trading session on such day on the principal national
                securities exchange registered under the

            

    

     

    
      
        
        

      

      
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      	 	 	 	Securities
              Exchange Act of 1934, as amended (the “Exchange Act”), on which the
              Underlying Stock (or any such other security) is listed or admitted
              to
              trading,
	 	 	 	 
	 	 	.•	
              if
                the Underlying Stock (or any such other security) is a security of
                the
                NASDAQ, the official closing price published by the NASDAQ on such
                day,
                or

            
	 	 	 	 
	 	 	.•	
              if
                the Underlying Stock (or any such other security) is not listed or
                admitted to trading on any national securities exchange but is included
                in
                the OTC Bulletin Board Service (the “OTC Bulletin Board”) operated by the
                National Association of Securities Dealers, Inc., the last reported
                sale
                price of the principal trading session on the OTC Bulletin Board
                on such
                day.

            
	 	 	 	 
	 	 	
              If
                the Underlying Stock (or any such other security) is listed or admitted
                to
                trading on any national securities exchange but the last reported
                sale
                price or the official closing price published by NASDAQ, as applicable,
                is
                not available pursuant to the preceding sentence, then the Closing
                Price
                for one share of the Underlying Stock (or one unit of any such other
                security) on any Trading Day shall mean the last reported sale price
                of
                the principal trading session on the over-the-counter market as reported
                on the NASDAQ or the OTC Bulletin Board on such day.  If a
                Market Disruption Event occurs with respect to the Underlying Stock
                (or
                any such other security) or the last reported sale price or the official
                closing price published by NASDAQ, as applicable, for the Underlying
                Stock
                (or any such other security) is not available pursuant to either
                of the
                two preceding sentences, then the Closing Price for any Trading Day
                shall
                be the mean, as determined by the Calculation Agent, of the bid prices
                for
                the Underlying Stock (or any such other security) for such Trading
                Day
                obtained from as many recognized dealers in such security, but not
                exceeding three, as shall make such bid prices available to the
                Calculation Agent.  Bids of MS & Co. or any of its
                affiliates may be included in the calculation of such mean, but only
                to
                the extent that any such bid is the highest of the bids
                obtained.  The

            

    

     

    
      
        
        

      

      
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      	 	 	term
              “OTC Bulletin Board Service” shall include any successor service
              thereto.
	 	 	 
	
              Trading
                Day

            	 	
              A
                day, as determined by the Calculation Agent, on which trading is
                generally
                conducted on the New York Stock Exchange LLC (“NYSE”), the American Stock
                Exchange LLC, the NASDAQ, the Chicago Mercantile Exchange, the Chicago
                Board of Options Exchange and in the over-the-counter market for
                equity
                securities in the United States and, if the principal trading market
                of
                the Underlying Stock is outside the United States, in such principal
                trading market.

            
	 	 	 
	
              Calculation
                Agent

            	 	
              Morgan
                Stanley & Co. Incorporated (“MS & Co.”) and its
                successors.

               

              All
                calculations with respect to the Exchange Ratio and Call Price for
                the
                SPARQS shall be made by the Calculation Agent and shall be rounded
                to the
                nearest one hundred-thousandth, with five one-millionths rounded
                upward
                (e.g., .876545 would be rounded to .87655); all dollar amounts
                related to the Call Price resulting from such calculations shall
                be
                rounded to the nearest ten-thousandth, with five one hundred-thousandths
                rounded upward (e.g., .76545 would be rounded to .7655); and all
                dollar amounts paid with respect to the Call Price on the aggregate
                number
                of SPARQS shall be rounded to the nearest cent, with one-half cent
                rounded
                upward.

               

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

            
	 	 	 
	
              Antidilution
                Adjustments

            	 	
              The
                Exchange Ratio shall be adjusted as follows:

            
	 	 	 
	 	 	
              1.
                If the Underlying Stock is subject to a stock split or reverse stock
                split, then once such split has become effective, the Exchange Ratio
                shall
                be adjusted to equal the product of the prior Exchange Ratio and
                the
                number of shares issued in such stock split or reverse stock split
                with
                respect to one share of the Underlying
                Stock.

            

    

     

    
      
        
        

      

      
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              2.
                If the Underlying Stock is subject (i) to a stock dividend (issuance
                of
                additional shares of the Underlying Stock) that is given ratably
                to all
                holders of shares of the Underlying Stock or (ii) to a distribution
                of the
                Underlying Stock as a result of the triggering of any provision of
                the
                corporate charter of the Underlying Company, then once the dividend
                has
                become effective and the Underlying Stock is trading ex-dividend,
                the
                Exchange Ratio shall be adjusted so that the new Exchange Ratio shall
                equal the prior Exchange Ratio plus the product of (i) the number
                of
                shares issued with respect to one share of  the Underlying Stock
                and (ii) the prior Exchange Ratio.

               

              3. If
                the Underlying Company issues rights or warrants to all holders of
                the
                Underlying Stock to subscribe for or purchase Underlying Stock at
                an
                exercise price per share less than the Closing Price of the Underlying
                Stock on both (i) the date the exercise price of such rights or warrants
                is determined and (ii) the expiration date of such rights or warrants,
                and
                if the expiration date of such rights or warrants precedes the maturity
                of
                this SPARQS, then the Exchange Ratio shall be adjusted to equal the
                product of the prior Exchange Ratio and a fraction, the numerator
                of which
                shall be the number of shares of the Underlying Stock outstanding
                immediately prior to the issuance of such rights or warrants plus
                the
                number of additional shares of Underlying Stock offered for subscription
                or purchase pursuant to such rights or warrants and the denominator
                of
                which shall be the number of shares of Underlying Stock outstanding
                immediately prior to the issuance of such rights or warrants plus
                the
                number of additional shares of Underlying Stock which the aggregate
                offering price of the total number of shares of Underlying Stock
                so
                offered for subscription or purchase pursuant to such rights or warrants
                would purchase at the Closing Price on the expiration date of such
                rights
                or warrants, which shall be determined by multiplying such total
                number of
                shares offered by the exercise price of such rights or warrants and
                dividing the product so obtained by such Closing
                Price.

            

    

     

    
      
        
        

      

      
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              4.
                There shall be no adjustments to the Exchange Ratio to reflect cash
                dividends or other distributions paid with respect to the Underlying
                Stock
                other than distributions described in paragraph 2, paragraph 3 and
                clauses
                (i), (iv) and (v) of the first sentence of paragraph 5 and Extraordinary
                Dividends as described below.  A cash dividend or other
                distribution with respect to the Underlying Stock shall be deemed
                to be an
                “Extraordinary Dividend” if such cash dividend or distribution exceeds the
                immediately preceding non-Extraordinary Dividend for the Underlying
                Stock
                by an amount equal to at least 10% of the Closing Price of the Underlying
                Stock (as adjusted for any subsequent corporate event requiring an
                adjustment hereunder, such as a stock split or reverse stock split)
                on the
                Trading Day preceding the ex-dividend date (that is, the day on and
                after
                which transactions in the Underlying Stock on the primary U.S. organized
                securities exchange or trading system on which the Underlying Stock
                is
                traded or trading system no longer carry the right to receive that
                cash
                dividend or that cash distribution) for the payment of such Extraordinary
                Dividend (such closing price, the “Base Closing
                Price”).  Subject to the following sentence, if an Extraordinary
                Dividend occurs with respect to the Underlying Stock, the Exchange
                Ratio
                with respect to the Underlying Stock shall be adjusted on the ex-dividend
                date with respect to such Extraordinary Dividend so that the new
                Exchange
                Ratio shall equal the product of (i) the then current Exchange Ratio
                and
                (ii) a fraction, the numerator of which is the Base Closing Price,
                and the
                denominator of which is the amount by which the Base Closing Price
                exceeds
                the Extraordinary Dividend Amount.  If any Extraordinary
                Dividend Amount is at least 35% of the Base Closing Price, then,
                instead
                of adjusting the Exchange Ratio, the amount payable upon exchange
                at
                maturity shall be determined as described in paragraph 5 below, and
                the
                Extraordinary Dividend shall be allocated to Reference Basket Stocks
                in
                accordance with the procedures for a Reference Basket Event as described
                in clause (c)(ii) of paragraph 5 below.  The “Extraordinary
                Dividend Amount” with respect to an Extraordinary Dividend for the
                Underlying Stock shall equal (i) in the case of

            

    

     

    
      
        
        

      

      
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              cash
                dividends or other distributions that constitute regular dividends,
                the
                amount per share of such Extraordinary Dividend minus the amount
                per share
                of the immediately preceding non-Extraordinary Dividend for the Underlying
                Stock or (ii) in the case of cash dividends or other distributions
                that do
                not constitute regular dividends, the amount per share of such
                Extraordinary Dividend.  The value of the non-cash component of
                an Extraordinary Dividend shall be determined on the ex-dividend
                date for
                such distribution by the Calculation Agent, whose determination shall
                be
                conclusive in the absence of manifest error.  A distribution on
                the Underlying Stock described in clause (i), (iv) or (v) of the
                first
                sentence of paragraph 5 below shall cause an adjustment to the Exchange
                Ratio pursuant only to clause (i), (iv) or (v) of the first sentence
                of
                paragraph 5, as applicable.

               

              5. Any
                of the following shall constitute a Reorganization Event:  (i)
                the Underlying Stock is reclassified or changed, including, without
                limitation, as a result of the issuance of any tracking stock by
                the
                Underlying Company, (ii) the Underlying Company has been subject
                to any
                merger, combination or consolidation and is not the surviving entity,
                (iii) the Underlying Company completes a statutory exchange of securities
                with another corporation (other than pursuant to clause (ii) above),
                (iv)
                the Underlying Company is liquidated, (v) the Underlying Company
                issues to
                all of its shareholders equity securities of an issuer other than
                the
                Underlying Company (other than in a transaction described in clause
                (ii),
                (iii) or (iv) above) (a “spinoff stock”) or (vi) the Underlying Stock is
                the subject of a tender or exchange offer or going private transaction
                on
                all of the outstanding shares.  If any Reorganization Event
                occurs, in each case as a result of which the holders of the Underlying
                Stock receive any equity security listed on a national securities
                exchange
                or traded on NASDAQ (a “Marketable Security”), other securities or other
                property, assets or cash (collectively “Exchange Property”), the amount
                payable upon exchange at maturity with respect to each Stated Principal
                Amount of this SPARQS following the effective date for such
                

            

    

     

    
      
        
        

      

      
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              Reorganization
                Event (or, if applicable, in the case of spinoff stock, the ex-dividend
                date for the distribution of such spinoff stock) and any required
                adjustment to the Exchange Ratio shall be determined in accordance
                with
                the following:

               

              (a) if
                the Underlying Stock continues to be outstanding, the Underlying
                Stock (if
                applicable, as reclassified upon the issuance of any tracking stock)
                at
                the Exchange Ratio in effect on the third Trading Day prior to the
                scheduled Maturity Date (taking into account any adjustments for
                any
                distributions described under clause (c)(i) below); and

               

              (b) for
                each Marketable Security received in such Reorganization Event (each
                a
                “New Stock”), including the issuance of any tracking stock or spinoff
                stock or the receipt of any stock received in exchange for the Underlying
                Stock, the number of shares of the New Stock received with respect
                to one
                share of Underlying Stock multiplied by the Exchange Ratio for Underlying
                Stock on the Trading Day immediately prior to the effective date
                of the
                Reorganization Event (the “New Stock Exchange Ratio”), as adjusted to the
                third Trading Day prior to the scheduled Maturity Date (taking into
                account any adjustments for distributions described under clause
                (c)(i)
                below); and

               

              (c) for
                any cash and any other property or securities other than Marketable
                Securities received in such Reorganization Event (the “Non-Stock Exchange
                Property”),

               

              (i) if
                the combined value of the amount of Non-Stock Exchange Property received
                per share of Underlying Stock, as determined by the Calculation Agent
                in
                its sole discretion on the effective date of such Reorganization
                Event
                (the “Non-Stock Exchange Property Value”), by holders of the Underlying
                Stock is less than 25% of the Closing Price of the Underlying Stock
                on the
                Trading Day immediately prior to the effective date of such Reorganization
                

            

    

     

    
      
        
        

      

      
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              Event,
                a number of shares of the Underlying Stock, if applicable, and of
                any New
                Stock received in connection with such Reorganization Event, if
                applicable, in proportion to the relative Closing Prices of the Underlying
                Stock and any such New Stock, and with an aggregate value equal to
                the
                Non-Stock Exchange Property Value multiplied by the Exchange Ratio
                in
                effect for the Underlying Stock on the Trading Day immediately prior
                to
                the effective date of such Reorganization Event, based on such Closing
                Prices, in each case as determined by the Calculation Agent in its
                sole
                discretion on the effective date of such Reorganization Event; and
                the
                number of such shares of Underlying Stock or any New Stock determined
                in
                accordance with this clause (c)(i) shall be added at the time of
                such
                adjustment to the Exchange Ratio in subparagraph (a) above and/or
                the New
                Stock Exchange Ratio in subparagraph (b) above, as applicable,
                or

               

              (ii) if
                the Non-Stock Exchange Property Value is equal to or exceeds 25%
                of the
                Closing Price of Underlying Stock on the Trading Day immediately
                prior to
                the effective date relating to such Reorganization Event or, if the
                Underlying Stock is surrendered exclusively for Non-Stock Exchange
                Property (in each case, a “Reference Basket Event”), an initially
                equal-dollar weighted basket of three Reference Basket Stocks (as
                defined
                below) with an aggregate value on the effective date of such
                Reorganization Event equal to the Non-Stock Exchange Property Value
                multiplied by the Exchange Ratio in effect for the Underlying Stock
                on the
                Trading Day immediately prior to the effective date of such Reorganization
                Event.  The “Reference Basket Stocks” shall be the three stocks
                with the largest market capitalization among the stocks that then
                constitute the S&P 500 Index (or, if publication of such index is
                discontinued, any successor or substitute index selected by the
                Calculation 

            

    

     

    
      
        
        

      

      
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              Agent
                in its sole discretion) with the same primary Standard Industrial
                Classification Code (“SIC Code”) as the Underlying Company; provided,
                however, that a Reference Basket Stock shall not include any stock
                that is subject to a trading restriction under the trading restriction
                policies of Morgan Stanley or any of its affiliates that would materially
                limit the ability of Morgan Stanley or any of its affiliates to hedge
                the
                SPARQS with respect to such stock (a “Hedging Restriction”); provided
                further that if three Reference Basket Stocks cannot be identified
                from the S&P 500 Index by primary SIC Code for which a Hedging
                Restriction does not exist, the remaining Reference Basket Stock(s)
                shall
                be selected by the Calculation Agent from the largest market
                capitalization stock(s) within the same Division and Major Group
                classification (as defined by the Office of Management and Budget)
                as the
                primary SIC Code for the Underlying Company.  Each Reference
                Basket Stock shall be assigned a Basket Stock Exchange Ratio equal
                to the
                number of shares of such Reference Basket Stock with a Closing Price
                on
                the effective date of such Reorganization Event equal to the product
                of
                (a) the Non-Stock Exchange Property Value, (b) the Exchange Ratio
                in
                effect for the Underlying Stock on the Trading Day immediately prior
                to
                the effective date of such Reorganization Event and (c)
                0.3333333.

            
	 	 	 
	 	 	
              Following
                the allocation of any Extraordinary Dividend to Reference Basket
                Stocks
                pursuant to paragraph 4 above or any Reorganization Event described
                in
                this paragraph 5, the amount payable upon exchange at maturity with
                respect to each Stated Principal Amount of this SPARQS shall be the
                sum
                of:

               

              (x)   
                if applicable, the Underlying Stock at the Exchange Ratio then in
                effect;
                and

            

    

     

    
      
        
        

      

      
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              (y)   
                if applicable, for each New Stock, such New Stock at the New Stock
                Exchange Ratio then in effect for such New Stock; and 
                 

                (z)   
                  if applicable, for each Reference Basket Stock,   such
                  Reference Basket Stock at the Basket Stock  Exchange Ratio then
                  in effect for such Reference Basket Stock.

              

            
	 	 	 
	 	 	
              In
                each case, the applicable Exchange Ratio (including for this purpose,
                any
                New Stock Exchange Ratio or Basket Stock Exchange Ratio) shall be
                determined by the Calculation Agent on the third Trading Day prior
                to the
                scheduled Maturity Date.

               

              For
                purposes of paragraph 5 above, in the case of a consummated tender
                or
                exchange offer or going-private transaction involving consideration
                of
                particular types, Exchange Property shall be deemed to include the
                amount
                of cash or other property delivered by the offeror in the tender
                or
                exchange offer (in an amount determined on the basis of the rate
                of
                exchange in such tender or exchange offer or going-private
                transaction).  In the event of a tender or exchange offer or a
                going-private transaction with respect to Exchange Property in which
                an
                offeree may elect to receive cash or other property, Exchange Property
                shall be deemed to include the kind and amount of cash and other
                property
                received by offerees who elect to receive cash.

               

              Following
                the occurrence of any Reorganization Event referred to in paragraphs
                4 or
                5 above, (i) references to “Underlying Stock” under “No Fractional
                Shares,” “Closing Price” and “Market Disruption Event” shall be deemed to
                also refer to any New Stock or Reference Basket Stock, and (ii) all
                other
                references in this SPARQS to “Underlying Stock” shall be deemed to refer
                to the Exchange Property into which this SPARQS is thereafter exchangeable
                and references to a “share” or “shares” of Underlying Stock shall be
                deemed to refer to the applicable unit or units of such Exchange
                Property,
                including any New Stock or Reference Basket Stock, unless the context
                otherwise requires.  The New Stock Exchange Ratio(s) or Basket
                

            

    

     

    
      
        
        

      

      
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              Stock
                Exchange Ratios resulting from any Reorganization Event described
                in
                paragraph 5 above or similar adjustment under paragraph 4 above shall
                be
                subject to the adjustments set forth in paragraphs 1 through 5 hereof.
                
                 

                If
                  a
                  Reference Basket Event occurs, the Issuer shall, or shall cause
                  the
                  Calculation Agent to, provide written notice to the Trustee at
                  its New
                  York office, on which notice the Trustee may conclusively rely,
                  and to DTC
                  of the occurrence of such Reference Basket Event and of the three
                  Reference Basket Stocks selected as promptly as possible and in
                  no event
                  later than five Business Days after the date of the Reference Basket
                  Event.

                 

                
                  No
                    adjustment to any Exchange Ratio (including for this purpose,
                    any New
                    Stock Exchange Ratio or Basket Stock Exchange Ratio) shall be
                    required
                    unless such adjustment would require a change of at least 0.1%
                    in the
                    Exchange Ratio then in effect.  The Exchange Ratio resulting
                    from any of the adjustments specified above shall be rounded
                    to the
                    nearest one hundred-thousandth, with five one-millionths rounded
                    upward.  Adjustments to the Exchange Ratios shall be made up to
                    the close of business on the third Trading Day prior to the scheduled
                    Maturity Date.

                   

                

                No
                  adjustments to the Exchange Ratio or method of calculating the
                  Exchange
                  Ratio shall be made other than those specified above.

                 

                The
                  Calculation Agent shall be solely responsible for the determination
                  and
                  calculation of any adjustments to the Exchange Ratio, any New Stock
                  Exchange Ratio or Basket Stock Exchange Ratio or method of calculating
                  the
                  Exchange Property Value and of any related determinations and calculations
                  with respect to any distributions of stock, other securities or
                  other
                  property or assets (including cash) in connection with any corporate
                  event
                  described in paragraphs 1 through 5 above, and its determinations
                  and
                  calculations with respect thereto shall be conclusive in the absence
                  of
                  manifest error.

              

            

    

     

    
      
        
        

      

      
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              The
                Calculation Agent shall provide information as to any adjustments
                to the
                Exchange Ratio, or to the method of calculating the amount payable
                upon
                exchange at maturity of the SPARQS made pursuant to paragraph 5 above,
                upon written request by the holder of this SPARQS.

            
	 	 	 
	
              Market
                Disruption Event

            	 	
              Market
                Disruption Event means, with respect to the Underlying
                Stock:

            
	 	 	 
	 	 	
              (i) a
                suspension, absence or material limitation of trading of the Underlying
                Stock on the primary market for the Underlying Stock for more than
                two
                hours of trading or during the one-half hour period preceding the
                close of
                the principal trading session in such market; or a breakdown or failure
                in
                the price and trade reporting systems of the primary market for the
                Underlying Stock as a result of which the reported trading prices
                for the
                Underlying Stock during the last one-half hour preceding the close
                of the
                principal trading session in such market are materially inaccurate;
                or the
                suspension, absence or material limitation of trading on the primary
                market for trading in options contracts related to the Underlying
                Stock,
                if available, during the one-half hour period preceding the close
                of the
                principal trading session in the applicable market, in each case
                as
                determined by the Calculation Agent in its sole discretion;
                and

               

              (ii) a
                determination by the Calculation Agent in its sole discretion that
                any
                event described in clause (i) above materially interfered with the
                ability
                of the Issuer or any of its affiliates to unwind or adjust all or
                a
                material portion of the hedge with respect to this issuance of
                SPARQS.

               

              For
                purposes of determining whether a Market Disruption Event has occurred:
                (1) a limitation on the hours or number of days of trading shall
                not
                constitute a Market Disruption Event if it results from an announced
                change in the regular business hours of the primary market, (2) a
                decision
                to permanently discontinue trading in the relevant options contract
                

            

    

     

    
      
        
        

      

      
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              shall
                not constitute a Market Disruption Event, (3) limitations pursuant
                to NYSE
                Rule 80A (or any applicable rule or regulation enacted or promulgated
                by
                the NYSE, any other self-regulatory organization or  the
                Securities and Exchange Commission of scope similar to NYSE Rule
                80A as
                determined by the Calculation Agent) on trading during significant
                market
                fluctuations shall constitute a suspension, absence or material limitation
                of trading, (4) a suspension of trading in options contracts on the
                Underlying Stock by the primary securities market trading in such
                options,
                if available, by reason of (x) a price change exceeding limits set
                by such
                securities exchange or market, (y) an imbalance of orders relating
                to such
                contracts or (z) a disparity in bid and ask quotes relating to such
                contracts shall constitute a suspension, absence or material limitation
                of
                trading in options contracts related to the Underlying Stock and
                (5) a
                suspension, absence or material limitation of trading on the primary
                securities market on which options contracts related to the Underlying
                Stock are traded shall not include any time when such securities
                market is
                itself closed for trading under ordinary circumstances.

            
	 	 	 
	
              Alternate
                Exchange Calculation

            	 	 
	
              in
                Case of an Event of Default

            	 	
              In
                case an event of default with respect to the SPARQS shall have occurred
                and be continuing, the amount declared due and payable per each Stated
                Principal Amount of this SPARQS upon any acceleration of this SPARQS
                (an
                “Event of Default Acceleration”) shall be determined by the Calculation
                Agent and shall be an amount in cash equal to the lesser of (i) the
                product of (x) the Closing Price of the Underlying Stock (and/or
                the value
                of any Exchange Property) as of the date of such acceleration and
                (y) the
                then current Exchange Ratio and (ii) the Call Price calculated as
                though
                the date of acceleration were the Call Date (but in no event less
                than the
                Call Price for the first Call Date), in each case plus accrued but
                unpaid
                interest to but excluding the date of acceleration; provided that
                if the Issuer has called the SPARQS in accordance with the Morgan
                Stanley
                Call Right, the amount declared due and payable upon any such acceleration
                shall be an amount 

            

    

     

    
      
        
        

      

      
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      	 	 	in
              cash for each Stated Principal Amount of this SPARQS equal to the Call
              Price for the Call Date specified in the Issuer’s notice of mandatory
              exchange, plus accrued but unpaid interest to but excluding the date
              of
              acceleration.

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

    
      
        
        

      

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

    
       

      
        	
                DATED:

              	
                MORGAN
                  STANLEY

              	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:

              	 	 
	 	 	
                Name:

              	 	 
	 	 	
                Title:

              	 	 

      

       

    

     

    
      	
              TRUSTEE’S
                CERTIFICATE

              OF
                AUTHENTICATION

            	 
	
              This
                is one of the Notes referred

              to
                in the within-mentioned

              Senior
                Indenture.

            	 
	
              THE
                BANK OF NEW YORK,
                as
                

              Trustee

            	 
	
              By:

            	 	 
	 	
              Authorized
                Signatory

            	 

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
 

    FORM
      OF REVERSE OF SECURITY

     

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

    

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

     

    If
      so indicated on the face hereof,
      this Note may be redeemed in whole or in part at the option of the Issuer on
      or
      after the Initial Redemption Date specified on the face hereof on the terms
      set
      forth on the face hereof, together with interest accrued and unpaid hereon
      to
      the date of redemption.  If this Note is subject to “Annual Redemption
      Percentage Reduction,” the Initial Redemption Percentage indicated on the face
      hereof will be reduced on each anniversary of the Initial Redemption Date by
      the
      Annual Redemption Percentage Reduction specified on the face hereof until the
      redemption price of this Note is 100% of the principal amount hereof, together
      with interest accrued and unpaid hereon to the date of redemption.  If
      the face hereof indicates that this Note is subject to “Modified Payment upon
      Acceleration or Redemption”, the amount of principal payable upon redemption
      will be limited to the aggregate principal amount hereof multiplied by the
      sum
      of the Issue Price specified on the face hereof (expressed as a percentage
      of
      the aggregate principal amount) plus the original issue discount accrued from
      the Interest Accrual Date to the date of redemption (expressed as a percentage
      of the aggregate principal amount), with the amount of original issue discount
      accrued being calculated using a constant yield method (as described
      below).  Notice of redemption shall be mailed to the registered
      holders of the Notes designated for redemption at their addresses as the same
      shall appear on the Note register not less than 30 nor more than 60 calendar
      days prior to the date fixed for redemption or within the Redemption Notice
      Period specified on the face hereof, subject to all the conditions and
      provisions of the Senior Indenture.  In the event of redemption of
      this Note in 

     

    
      
        
        

      

      
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    part
      only,
      a new Note or Notes for the amount of the unredeemed portion hereof shall be
      issued in the name of the holder hereof upon the cancellation
      hereof.

    

     

    If
      so indicated on the face of this
      Note, this Note will be subject to repayment at the option of the holder on
      the
      Optional Repayment Date or Dates specified on the face hereof on the terms
      set
      forth herein.  On any Optional Repayment Date, this Note will be
      repayable in whole or in part in increments of $1,000 or, if this Note is
      denominated in a Specified Currency other than U.S. dollars, in increments
      of
      1,000 units of such Specified Currency (provided that any remaining principal
      amount hereof shall not be less than the minimum authorized denomination hereof)
      at the option of the holder hereof at a price equal to 100% of the principal
      amount to be repaid, together with interest accrued and unpaid hereon to the
      date of repayment, provided that if the face hereof indicates that this
      Note is subject to “Modified Payment upon Acceleration or Redemption”, the
      amount of principal payable upon repayment will be limited to the aggregate
      principal amount hereof multiplied by the sum of the Issue Price specified
      on
      the face hereof (expressed as a percentage of the aggregate principal amount)
      plus the original issue discount accrued from the Interest Accrual Date to
      the
      date of repayment  (expressed as a percentage of the aggregate
      principal amount), with the amount of original issue discount accrued being
      calculated using a constant yield method (as described below).  For
      this Note to be repaid at the option of the holder hereof, the Paying Agent
      must
      receive at its corporate trust office in the Borough of Manhattan, The City
      of
      New York, at least 15 but not more than 30 calendar days prior to the date
      of
      repayment, (i) this Note with the form entitled “Option to Elect Repayment”
below duly completed or (ii) a telegram, telex, facsimile transmission or a
      letter from a member of a national securities exchange or the National
      Association of Securities Dealers, Inc. or a commercial bank or a trust company
      in the United States setting forth the name of the holder of this Note, the
      principal amount hereof, the certificate number of this Note or a description
      of
      this Note’s tenor and terms, the principal amount hereof to be repaid, a
      statement that the option to elect repayment is being exercised thereby and
      a
      guarantee that this Note, together with the form entitled “Option to Elect
      Repayment” duly completed, will be received by the Paying Agent not later than
      the fifth Business Day after the date of such telegram, telex, facsimile
      transmission or letter; provided, that such telegram, telex, facsimile
      transmission or letter shall only be effective if this Note and form duly
      completed are received by the Paying Agent by such fifth Business
      Day.  Exercise of such repayment option by the holder hereof shall be
      irrevocable.  In the event of repayment of this Note in part only, a
      new Note or Notes for the amount of the unpaid portion hereof shall be issued
      in
      the name of the holder hereof upon the cancellation hereof.

     

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

     

    In
      the
      case where the Interest Payment Date or the Maturity Date (or any redemption
      or
      repayment date) does not fall on a Business Day, payment of interest, premium,
      if any, or principal otherwise payable on such date need not be made on such
      date, but may be made on the 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    next
      succeeding Business Day with the same force and effect as if made on the
      Interest Payment Date or on the Maturity Date (or any redemption or repayment
      date), and no interest on such payment shall accrue for the period from and
      after the Interest Payment Date or the Maturity Date (or any redemption or
      repayment date) to such next succeeding Business Day.

     

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

     

    This
      Note,
      and any Note or Notes issued upon transfer or exchange hereof, is issuable
      only
      in fully registered form, without coupons, and, if denominated in U.S. dollars,
      unless otherwise stated above, is issuable only in denominations of U.S. $1,000
      and any integral multiple of U.S. $1,000 in excess thereof.  If this
      Note is denominated in a Specified Currency other than U.S. dollars, then,
      unless a higher minimum denomination is required by applicable law, it is
      issuable only in denominations of the equivalent of U.S. $1,000 (rounded to
      an
      integral multiple of 1,000 units of such Specified Currency), or any amount
      in
      excess thereof which is an integral multiple of 1,000 units of such Specified
      Currency, as determined by reference to the noon dollar buying rate in The
      City
      of New York for cable transfers of such Specified Currency published by the
      Federal Reserve Bank of New York (the “Market Exchange Rate”)
      on the Business Day immediately preceding the date of issuance.

     

    The
      Trustee has been appointed registrar for the Notes, and the Trustee will
      maintain at its office in The City of New York a register for the registration
      and transfer of Notes.  This Note may be transferred at the aforesaid
      office of the Trustee by surrendering this Note for cancellation, accompanied
      by
      a written instrument of transfer in form satisfactory to the Issuer and the
      Trustee and duly executed by the registered holder hereof in person or by the
      holder’s attorney duly authorized in writing, and thereupon the Trustee shall
      issue in the name of the transferee or transferees, in exchange herefor, a
      new
      Note or Notes having identical terms and provisions and having a like aggregate
      principal amount in authorized denominations, subject to the terms and
      conditions set forth herein; provided, however, that the Trustee will
      not be required (i) to register the transfer of or exchange any Note that has
      been called for redemption in whole or in part, except the unredeemed portion
      of
      Notes being redeemed in part, (ii) to register the transfer of or exchange
      any Note if the holder thereof has exercised his right, if any, to require
      the
      Issuer to repurchase such Note in whole or in part, except the portion of such
      Note not required to be repurchased, or (iii) to register the transfer of or
      exchange Notes to the extent and during the period so provided in the Senior
      Indenture with respect to the redemption of Notes.  Notes are
      exchangeable at said office for other Notes of other authorized denominations
      of
      equal aggregate principal amount having identical terms and
      provisions.  All such exchanges and transfers of Notes will be free of
      charge, but the Issuer may require payment of a sum sufficient to cover any
      tax
      or other governmental charge in connection therewith.  All Notes
      surrendered for exchange shall be accompanied by a written instrument of
      transfer in form satisfactory to the 

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Issuer
      and
      the Trustee and executed by the registered holder in person or by the holder’s
      attorney duly authorized in writing.  The date of registration of any
      Note delivered upon any exchange or transfer of Notes shall be such that no
      gain
      or loss of interest results from such exchange or transfer.

     

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

     

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

     

    If
      the face hereof indicates that this
      Note is subject to “Modified Payment upon Acceleration or Redemption,” then (i)
      if the principal hereof is declared to be due and payable as described in the
      preceding paragraph, the amount of principal due and payable with respect to
      this Note shall be limited to the aggregate principal amount hereof multiplied
      by the sum of the 

     

    
      
        
        

      

      
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    Issue
      Price specified on the face hereof (expressed as a percentage of the aggregate
      principal amount) plus the original issue discount accrued from the Interest
      Accrual Date to the date of declaration (expressed as a percentage of the
      aggregate principal amount), with the amount of original issue discount accrued
      being calculated using a constant yield method (as described in the next
      paragraph), (ii) for the purpose of any vote of securityholders taken pursuant
      to the Senior Indenture prior to the acceleration of payment of this Note,
      the
      principal amount hereof shall equal the amount that would be due and payable
      hereon, calculated as set forth in clause (i) above, if this Note were declared
      to be due and payable on the date of any such vote and (iii) for the purpose
      of
      any vote of securityholders taken pursuant to the Senior Indenture following
      the
      acceleration of payment of this Note, the principal amount hereof shall equal
      the amount of principal due and payable with respect to this Note, calculated
      as
      set forth in clause (i) above.

     

    The
      constant yield shall be calculated
      using a 30-day month, 360-day year convention, a compounding period that, except
      for the initial period (as defined below), corresponds to the shortest period
      between Interest Payment Dates (with ratable accruals within a compounding
      period), and an assumption that the maturity will not be
      accelerated.  If the period from the Original Issue Date to the first
      Interest Payment Date (the “initial period”) is shorter than the compounding
      period for this Note, a proportionate amount of the yield for an entire
      compounding period will be accrued.  If the initial period is longer
      than the compounding period, then the period will be divided into a regular
      compounding period and a short period with the short period being treated as
      provided in the preceding sentence.

     

    If
      the face hereof indicates that this
      Note is subject to “Tax Redemption and Payment of Additional Amounts,” this Note
      may be redeemed, as a whole, at the option of the Issuer at any time prior
      to
      maturity, upon the giving of a notice of redemption as described below, at
      a
      redemption price equal to 100% of the principal amount hereof, together with
      accrued interest to the date fixed for redemption (except that if this Note
      is
      subject to “Modified Payment upon Acceleration or Redemption,” the amount of
      principal so payable will be limited to the aggregate principal amount hereof
      multiplied by the sum of the Issue Price specified on the face hereof (expressed
      as a percentage of the aggregate principal amount) plus the original issue
      discount accrued from the Interest Accrual Date to the date of redemption
      (expressed as a percentage of the aggregate principal amount), with the amount
      of original issue discount accrued being calculated using a constant yield
      method (as described above)), if the Issuer determines that, as a result of
      any
      change in or amendment to the laws (including a holding, judgment or as ordered
      by a court of competent jurisdiction), or any regulations or rulings promulgated
      thereunder, of the United States or of any political subdivision or taxing
      authority thereof or therein affecting taxation, or any change in official
      position regarding the application or interpretation of such laws, regulations
      or rulings, which change or amendment occurs, becomes effective or, in the
      case
      of a change in official position, is announced on or after the Initial Offering
      Date hereof, the Issuer has or will become obligated to pay Additional Amounts,
      as defined below, with respect to this Note as described below.  Prior
      to the giving of any notice of redemption pursuant to this paragraph, the Issuer
      shall deliver to the Trustee (i) a certificate stating that the Issuer is
      entitled to effect such redemption and setting forth a statement of facts
      showing that the conditions precedent to the right of the Issuer to so redeem
      have occurred, and (ii) an opinion of 

     

    
      
        
        

      

      
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    independent
      legal counsel satisfactory to the Trustee to such effect based on such statement
      of facts; provided that no such notice of redemption shall be given
      earlier than 60 calendar days prior to the earliest date on which the Issuer
      would be obligated to pay such Additional Amounts if a payment in respect of
      this Note were then due.

     

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

     

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

     

    (a)           any
      present or future tax, assessment or other governmental charge that would not
      have been so imposed but for (i) the existence of any present or former
      connection between such holder, or between a fiduciary, settlor, beneficiary,
      member or shareholder of such holder, if such holder is an estate, a trust,
      a
      partnership or a corporation for U.S. federal income tax purposes, and the
      United States, including, without limitation, such holder, or such fiduciary,
      settlor, beneficiary, member or shareholder, being or having been a citizen
      or
      resident thereof or being or having been engaged in a trade or business or
      present therein or having, or having had, a permanent establishment therein
      or
      (ii) the presentation by or on behalf of the holder of this Note for
      payment on a date more than 15 calendar days after the date on which such
      payment became due and payable or the date on which payment thereof is duly
      provided for, whichever occurs later;

     

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

     

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

     

    
      
        
        

      

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

     

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

     

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

     

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

     

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

     

    In
      addition, the Issuer shall not be required to make any payment of Additional
      Amounts (i) to any such holder where such withholding or deduction is imposed
      on
      a payment to an individual and is required to be made pursuant to any law
      implementing or complying with, or introduced in order to conform to, any
      European Union Directive on the taxation of savings; or (ii) by or on behalf
      of
      a holder who would have been able to avoid such withholding or deduction by
      presenting this Note or the relevant coupon to another Paying Agent in a member
      state of the European Union. Nor shall the Issuer pay Additional Amounts with
      respect to any payment on this Note to a U.S. Alien who is a fiduciary or
      partnership or other than the sole beneficial owner of such payment to the
      extent such payment would be required by the laws of the United States (or
      any
      political subdivision thereof) to be included in the income, for tax purposes,
      of a beneficiary or settlor with respect to such fiduciary or a member of such
      partnership or a beneficial owner who would not have been entitled to the
      Additional Amounts had such beneficiary, settlor, member or beneficial owner
      been the holder of this Note.

     

    The
      Senior
      Indenture permits the Issuer and the Trustee, with the consent of the holders
      of
      not less than a majority in aggregate principal amount of the debt securities
      of
      all series issued under the Senior Indenture then outstanding and affected
      (voting as one class), to execute supplemental indentures adding any provisions
      to or changing in any manner the rights of the holders of each series so
      affected; provided that the Issuer and the Trustee may not, without the
      consent of the holder of each outstanding debt security affected thereby, (a)
      extend the final maturity of any such debt security, or reduce the principal
      amount thereof, or reduce the rate or extend the time of payment of interest
      thereon, or reduce any amount payable on redemption thereof, or change the
      currency of payment thereof, or modify or amend the provisions for 

     

    
      
        
        

      

      
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    conversion
      of any currency into any other currency, or modify or amend the provisions
      for
      conversion or exchange of the debt security for securities of the Issuer or
      other entities or for other property or the cash value of the property (other
      than as provided in the antidilution provisions or other similar adjustment
      provisions of the debt securities or otherwise in accordance with the terms
      thereof), or impair or affect the rights of any holder to institute suit for
      the
      payment thereof or (b) reduce the aforesaid percentage in principal amount
      of
      debt securities the consent of the holders of which is required for any such
      supplemental indenture.

     

    Except
      as
      set forth below, if the principal of, premium, if any, or interest on this
      Note
      is payable in a Specified Currency other than U.S. dollars and such Specified
      Currency is not available to the Issuer for making payments hereon due to the
      imposition of exchange controls or other circumstances beyond the control of
      the
      Issuer or is no longer used by the government of the country issuing such
      currency or for the settlement of transactions by public institutions within
      the
      international banking community, then the Issuer will be entitled to satisfy
      its
      obligations to the holder of this Note by making such payments in U.S. dollars
      on the basis of the Market Exchange Rate on the date of such payment or, if
      the
      Market Exchange Rate is not available on such date, as of the most recent
      practicable date; provided, however, that if the euro has been
      substituted for such Specified Currency, the Issuer may at its option (or shall,
      if so required by applicable law) without the consent of the holder of this
      Note
      effect the payment of principal of, premium, if any, or interest on any Note
      denominated in such Specified Currency in euro in lieu of such Specified
      Currency in conformity with legally applicable measures taken pursuant to,
      or by
      virtue of, the Treaty establishing the European Community, as
      amended.  Any payment made under such circumstances in U.S. dollars or
      euro where the required payment is in an unavailable Specified Currency will
      not
      constitute an Event of Default.  If such Market Exchange Rate is not
      then available to the Issuer or is not published for a particular Specified
      Currency, the Market Exchange Rate will be based on the highest bid quotation
      in
      The City of New York received by the Exchange Rate Agent at approximately 11:00
      a.m., New York City time, on the second Business Day preceding the date of
      such
      payment from three recognized foreign exchange dealers (the “Exchange
      Dealers”) for the purchase by the quoting Exchange Dealer of the
      Specified Currency for U.S. dollars for settlement on the payment date, in
      the
      aggregate amount of the Specified Currency payable to those holders or
      beneficial owners of Notes and at which the applicable Exchange Dealer commits
      to execute a contract.  One of the Exchange Dealers providing
      quotations may be the Exchange Rate Agent unless the Exchange Rate Agent is
      an
      affiliate of the Issuer.  If those bid quotations are not available,
      the Exchange Rate Agent shall determine the market exchange rate at its sole
      discretion.

     

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

     

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

     

    So
      long as
      this Note shall be outstanding, the Issuer will cause to be maintained an office
      or agency for the payment of the principal of and premium, if any, and interest
      on this Note as 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

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

     

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

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

     

    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.

    

    _______________________

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

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

     

    ____________________________________________

    [PLEASE
      INSERT SOCIAL SECURITY OR OTHER

    IDENTIFYING
      NUMBER OF ASSIGNEE]

    
       

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

                
	 

        

      

    

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

     

    Dated:_______________________

     

    
      	
              NOTICE:

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

            

    

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

     

    OPTION
      TO ELECT REPAYMENT

     

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

     

    
       

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

                  

          

        

      

    

     

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

    
       

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

        

      

    

     

    40EX-10.F

 

Exhibit 10f

HUBBELL INCORPORATED

AMENDED AND RESTATED

DEFERRED COMPENSATION PLAN FOR DIRECTORS

As Amended and Restated Effective as of January 1, 2005.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II. ELECTION TO DEFER
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III. DEFERRED COMPENSATION ACCOUNTS
	 	 	3	 
	 
	 	 	 	 
	ARTICLE IV. PAYMENT OF DEFERRED COMPENSATION
	 	 	5	 
	 
	 	 	 	 
	ARTICLE V. ADMINISTRATION
	 	 	7	 
	 
	 	 	 	 
	ARTICLE VI. AMENDMENT OF PLAN
	 	 	7	 
	 
	 	 	 	 
	ARTICLE VII. CHANGE OF CONTROL
	 	 	8	 
	 
	 	 	 	 
	ARTICLE VIII. EFFECTIVE DATE
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IX. MISCELLANEOUS PROVISIONS
	 	 	9	 

i

 

HUBBELL INCORPORATED

DEFERRED COMPENSATION PLAN FOR DIRECTORS

ARTICLE I.

DEFINITIONS

     1.1 “Accounts” shall mean collectively the Director’s Cash Account and Stock Unit Account.

     1.2 “Board” shall mean the Board of Directors of Hubbell Incorporated.

     1.3 “Cash Account” shall mean the account created by Hubbell pursuant to Article III of this
Plan in accordance with an election by a Director to receive deferred cash compensation under
Article II hereof.

     1.4 “Change of Control” shall mean the first to occur of any one of the following:

          (a) Continuing Directors during any 12 month period no longer constitute a majority of the
Directors;

          (b) Any person or persons acting as a group (within the meaning of Treas. Reg.
§1.409A-3(i)(5)(vi)(D)), acquires (or has acquired within the 12 month period ending on the date of
the last acquisition by such person or persons) directly or indirectly, thirty percent (30%) or
more of the voting power of the then outstanding securities of Hubbell entitled to vote for the
election of Hubbell’s directors; provided that this Section 1.4(b) shall not apply with respect to
any acquisition of securities by (i) the trust under a Trust Indenture dated September 2, 1957 made
by Louie E. Roche, (ii) the trust under a Trust Indenture dated August 23, 1957 made by Harvey
Hubbell, and (iii) any employee benefit plan (within the meaning of Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended) maintained by Hubbell or any affiliate of
Hubbell;

          (c) Any person or persons acting as a group (within the meaning of Treas. Reg.
§1.409A-3(i)(5)(v)(B)), acquires ownership (including any previously owned securities) of more than
fifty percent (50%) of either (i) the voting power value of the then outstanding securities of
Hubbell entitled to vote for the election of Hubbell’s directors or (ii) the fair market value of
Hubbell; provided that this Section 1.4(c) shall not apply with respect to any acquisition of
securities by (i) the trust under a Trust Indenture dated September 2, 1957 made by Louie E. Roche,
(ii) the trust under a Trust Indenture dated August 23, 1957 made by Harvey Hubbell, and (iii) any
employee benefit plan (within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended) maintained by Hubbell or any affiliate of Hubbell; or

          (d) A sale of substantially all of Hubbell’s assets.

     Provided, that the transaction or event described in subsection (a), (b), (c) or (d)
constitutes a “change in control event,” as defined in Treas. Reg. §1.409A-3(i)(5).

 

 

     1.5 “Code” shall mean the Internal Revenue Code of 1986, as amended and any successor statute
thereto.

     1.6 “Compensation Committee” shall mean the Compensation Committee of the Board.

     1.7 “Continuing Director” shall mean any individual who is a member of Hubbell’s Board of
Directors on December 9, 1986 or was designated (before such person’s initial election as a
Director) as a Continuing Director by 2/3 of the then Continuing Directors.

     1.8 “Director” shall mean a member of the Board of Directors of Hubbell who is not an employee
of Hubbell or any of its subsidiaries.

     1.9 “Directors’ Retirement Plan” shall mean the Hubbell Incorporated Retirement Plan for
Directors.

     1.10 “Fees” shall mean amounts earned for serving as a member of the Board, including any
Committees of the Board.

     1.11 “He”, “Him” or “His” shall apply equally to male and female members of the Board.

     1.12 “Hubbell” shall mean Hubbell Incorporated and any corporate successors.

     1.13 “Plan” shall mean this Deferred Compensation Plan for Directors as it may be amended from
time to time.

     1.14 “Retirement Benefit Account” shall mean the amount, if any, transferred from the
Directors’ Retirement Plan to this Plan in accordance with Section 2.4.

     1.15 “Year” shall mean calendar year.

     1.16 “Separation from Service” shall mean termination of service as a Director; provided that
the individual is not or does not as a result thereof become an employee or maintain an independent
contractor relationship with Hubbell. All determinations of whether an individual has had a
Separation from Service shall be made applying the definition contained in Treas. Reg.
§1.409A-1(h).

     1.17 “Stock Unit” shall mean one share of Hubbell Class A Common Stock and one share of
Hubbell Class B Common Stock.

     1.18 “Stock Unit Account” shall mean the account created by Hubbell pursuant Article III of
this Plan in accordance with an election by a Director to receive deferred stock compensation under
Article II hereof.

2

 

ARTICLE II.

ELECTION TO DEFER

     2.1 A Director may elect, on or before December 31 of any Year, to defer payment of all or a
specified part of all Fees earned during the Year following such election and succeeding Years
(until the Director ceases to be a Director). Any person who shall become a Director during any
Year, and who was not a Director of Hubbell on the preceding December 31, may elect, before the
Director’s term begins, to defer payment of all or a specified part of such Fees earned during the
remainder of such Year and for succeeding Years. Any Fees deferred pursuant to this Section shall
be paid to the Director at the time(s) and in the manner specified in Article IV hereof, in the
form of cash or Hubbell Common Stock, or any combination thereof, as designated by the Director.

     2.2 The election to participate and manner of payment shall be designated by submitting a
letter in the form attached hereto as Appendix A to the Secretary of Hubbell.

     2.3 The election shall continue from Year to Year unless the Director terminates it by written
request delivered to the Secretary of Hubbell prior to the commencement of the Year for which the
termination is first effective.

     2.4 A Director who is a participant in the Directors’ Retirement Plan shall have the actuarial
lump sum equivalent of his retirement benefit accrued under the Directors’ Retirement Plan as of
December 31, 2007 contributed to this Plan, with such amount allocated to his Retirement Benefit
Account. In accordance therewith, such Director shall elect prior to December 31, 2007, (i) the
time and form of payment of such Retirement Benefit Account in accordance with Sections 4.1 or 4.5
and (ii) the investment of the Retirement Benefit Account in either the Cash Account or a Stock
Unit Account as elected under Sections 3.2 or 3.4; provided, however, that if the investment of the
Retirement Benefit Account in the Stock Unit Account would violate any federal or state securities
laws, as determined by Hubbell’s outside legal counsel, then the Retirement Benefit Account shall
be invested in the Cash Account. Notwithstanding anything in Sections 3.4 or 4.1 to the contrary,
if it is subsequently determined by Hubbell’s outside legal counsel that the Retirement Benefit
Account may be invested in the Stock Unit Account without violating the federal or state securities
laws, then each Director shall have a one time election to have the balance of his Retirement
Benefit Account that is held in the Cash Account transferred to the Stock Unit Account. The number
of Stock Units to be credited to the Director’s Stock Unit Account shall be determined under the
methodology set forth in Section 3.4, but with the date of transfer being the date the Fees would
have been paid, and the value of the Retirement Benefit Account on the date of the transfer being
the value of the Fees paid.

ARTICLE III.

DEFERRED COMPENSATION ACCOUNTS

     3.1 Hubbell shall maintain separate memorandum accounts for the Fees deferred by each
Director.

     3.2 Hubbell shall credit, on the date Fees become payable, to the Cash Account of each
Director the deferred portion of any Fees due the Director as to which an election to receive cash
has been made. Fees deferred in the form of cash (and interest thereon) shall be held in the
general funds of Hubbell. On the first business day of 2008, Hubbell shall credit to the Cash

3

 

Account of a Director the amount of his Retirement Benefit Account to which such Director
elected to have invested in the Cash Account.

     3.3 Hubbell shall credit the Cash Account of each Director on a quarterly basis with interest
at the prime rate in effect at Hubbell’s principal commercial bank on the date of the next
immediately following regular quarterly Directors’ meeting. A Director’s Cash Account shall
continue to accrue interest in the foregoing manner during the period beginning on the Director’s
Separation from Service and ending two days prior to the date on which the balance of the
Director’s Cash Account will be paid (whether the Director has elected to receive the distribution
of his or her Cash Account in a lump sum or in installment payments), in accordance with the terms
of Article IV hereof, in satisfaction of all payments owed to the Director under the Plan.

     3.4 Hubbell shall credit, on the date Fees become payable, the Stock Unit Account of each
Director with the number of Stock Units which is equal to: the deferred portion of any Fees due the
Director as to which an election to receive Hubbell Common Stock has been made, divided by the sum
of the closing prices of Hubbell’s Class A Common Stock and Class B Common Stock as reported on the
New York Stock Exchange (the “NYSE”) on the date such Fees would otherwise have been paid (the
“Stock Unit Value”). If closing prices are not available from the NYSE for both the Class A Common
Stock and the Class B Common Stock on the date such Fees would otherwise have been paid, then the
next preceding practicable date for which such closing prices are available shall be used. On the
first business day of 2008, Hubbell shall credit the Stock Unit Account of a Director who has
elected to have all or a portion of his Retirement Benefit Account invested in the Stock Unit
Account with Stock Units equal to the balance of such Retirement Benefit Account as to which the
Director elected to invest in Stock Units divided by the Stock Unit Value on the first business day
of 2008.

     3.5 Hubbell shall credit the Stock Unit Account of each Director who has elected to receive
deferred compensation in the form of Stock Units with the number of Stock Units equal to any cash
dividends (or the fair market value of dividends paid in property other than dividends payable in
Common Stock of Hubbell) payable on the number of shares of Class A Common Stock or Class B Common
Stock represented by the number of Stock Units in each Director’s Stock Unit Account divided by the
Stock Unit Value on the dividend payment date. Dividends payable in Common Stock on both Class A
and Class B Common Stock of Hubbell and in respect of each class in shares of such class will be
credited to each Director’s Stock Unit Account in the form of Stock Units. Dividends payable on
both Class A and Class B Common Stock in shares of Class B Common Stock will be credited to each
Director’s Stock Unit Account in the form of Stock Units in an amount determined by multiplying the
number of Class B dividend shares payable to such Director by the closing price of the Class B
Common Stock on the dividend payment date and dividing that product by the Stock Unit Value on such
dividend payment date. A Director’s Stock Unit Account shall continue to be credited with
dividends in the foregoing manner during the period beginning on the date of the Director’s
Separation from Service and ending two days prior to the date on which the balance of the
Director’s Stock Unit Account will be paid (whether the Director has elected to receive the
distribution of his or her Stock Unit Account in a lump sum or in installment payments), in
accordance with the terms of Article IV hereof, in satisfaction of all payments owed to the
Director under the Plan. If adjustments are made to the outstanding shares of Hubbell Common Stock
as a result of split-

4

 

ups, recapitalizations, mergers, consolidations and the like, an appropriate adjustment also
will be made in the number of Stock Units credited to the Director’s Stock Unit Account.

     3.6 Stock Units shall be computed to three decimal places.

     3.7 Stock Units shall not entitle any person to rights of a stock holder with respect to such
Stock Units unless and until shares of Hubbell Class A Common Stock or Class B Common Stock have
been issued to such person in respect of such Stock Units pursuant to Article IV hereof.
Notwithstanding the foregoing, no more than 2,431 shares of Class A Common Stock and 300,000 shares
of Class B Common Stock may be issued as payment under the Plan.

     3.8 Hubbell shall not be required to acquire, reserve, segregate, or otherwise set aside
shares of its Class A Common Stock or Class B Common Stock for the payment of its obligations under
the Plan, but shall make available as and when required a sufficient number of its Class A Common
Stock and Class B Common Stock to meet the needs of the Plan.

     3.9 Nothing contained herein shall be deemed to create a trust of any kind or any fiduciary
relationship. To the extent that any person acquires a right to receive payments from Hubbell
under the Plan, such right shall be no greater than the right of any unsecured general creditor of
Hubbell.

ARTICLE IV.

PAYMENT OF DEFERRED COMPENSATION

     4.1 Unless otherwise provided for in this Plan, amounts contained in a Director’s Accounts
will be distributed in a lump sum or in installment payments as the Director’s election (made
pursuant to Sections 2.2 or 2.4) shall provide. Unless otherwise provided in Section 4.5,
distributions shall begin with the first business day of the Year following the Director’s
Separation from Service. Amounts credited to a Director’s Cash Account shall be paid in cash.
Amounts credited to a Director’s Stock Unit Account prior to July 7, 1988 (the “Cutoff Date”) shall
be paid in the form of one share of Hubbell Class A Common Stock and one share of Class B Common
Stock for each Stock Unit. Amounts credited to a Director’s Stock Unit Account on or after the
Cutoff Date shall be paid in the form of (x) one share of Class B Common Stock for each Stock Unit,
plus (y) the aggregate number of shares of Class B Common Stock equal to the total number of Stock
Units in such Director’s Stock Unit Account, multiplied by the closing price of the Class A Common
Stock as reported on the third business day preceding the date of payment, divided by the closing
price of the Class B Common Stock as reported on NYSE on the third business day preceding the date
of payment. A cash payment will be made with any final installment for any fractions of a Stock
Unit remaining in the Director’s Stock Unit Account. Such fractional share will be valued at the
Stock Unit Value on the date of settlement. Notwithstanding the foregoing to the contrary, in the
event that payment of a Directors Stock Unit Account in the form of Class A Common Stock or Class B
Common Stock would cause the limits on the maximum number of shares which may be issued under the
Plan under Section 3.8 to be exceeded, then the Director’s Stock Unit Account shall be distributed
first up to the maximum number of shares of Class A Common Stock and Class B Common Stock which
would not exceed the limit, and the balance thereof shall be distributed in cash.

5

 

     4.2 Each Director shall have the right to designate a beneficiary who is to succeed to his
right to receive payments hereunder in the event of death. Any designated beneficiary will receive
payments in the same manner as the Director if he had lived. In case of a failure of designation
or the death of a designated beneficiary without a designated successor, the balance of the amounts
contained in the Director’s Accounts shall be payable in accordance with Section 4.1 to the
Director’s or former Director’s estate in full on the first day of the Year following the Year in
which the Director or his designated beneficiary dies. No designation of beneficiary or change in
beneficiary shall be valid unless in writing signed by the Director and filed with the Secretary of
Hubbell. Any beneficiary may be changed without the consent of any prior beneficiary.

     4.3 Notwithstanding Section 4.1, all or a portion of a Director’s Accounts may be paid prior
to Separation of Service with the approval of the Board upon the following events:

          (a) To comply with a domestic relations order (as defined in Code Section 414(p)(1)(B));

          (b) If the Internal Revenue Service, makes a determination that a Director is required to
include in gross income the value of his Accounts, as soon as practicable following such
determination Hubbell shall pay to the Director in a lump sum, the amount required to be included
in the Director’s gross income.

          (c) If the distributable balance of the Director’s Accounts is less than the amount applicable
under Code Section 402(g) for the year in question, then notwithstanding any prior installment
election, the balance of such Accounts shall be distributed in a lump sum.

          (d) Upon the termination and liquidation of the Plan, the balance of the Directors Accounts
shall be distributed in a lump sum twelve months following such termination and liquidation;
provided that such termination or liquidation is not in connection with a downturn in the financial
health of Hubbell and shall conform to the requirements of Treas. Reg. Section 1.409A-3(j)(4)(ix).

     4.4 Notwithstanding Sections 4.1, 4.5 or 7.3 to the contrary, if a Director is deemed at the
time of his Separation from Service to be a “specified employee” for purposes of Section
409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of payment of the Director’s
Accounts is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of
the Code, such portion of Director’s Accounts shall not be payable to the Director prior to the
earlier of (a) the expiration of the six-month period measured from the date of the Director’s
Separation from Service or (b) death. Upon the expiration of the applicable Code Section
409A(a)(2)(B)(i) deferral period, all payments deferred pursuant to this Section 4.4 shall be paid
in a lump sum to the Director, plus interest thereon from the date of the Executive’s Separation
from Service through the payment date at a rate equal to the prime rate of interest as reported in
the Wall Street Journal from time to time. Any remaining payments shall be paid as
otherwise provided under Section 4.1, 4.5 or 7.3.

     4.5 A Director may elect to commence receiving his Retirement Benefit Account in a lump sum or
in installments as elected by the Director under Section 2.4 on the first business day

6

 

of the Year following the Year in which the Director attains age 70, regardless of whether or
not such Director has incurred a Separation from Service; provided, however, that if a Director has
attained age 70 on or before December 31, 2007, then such Retirement Benefit Account shall not
commence prior to the first day of 2008. That portion of the Director’s Retirement Benefit Account
that is invested in Stock Units shall be valued as provided in Section 4.1.

ARTICLE V.

ADMINISTRATION

     5.1 The general administration of this Plan and the responsibility for carrying out the
provisions hereof shall be vested in the Compensation Committee. The Compensation Committee may
adopt, subject to the approval of the Board, such rules and regulations as it may deem necessary
for the proper administration of this Plan, and its decision in all matters shall be final,
conclusive and binding.

     5.2 The books and records to be maintained for the purpose of the Plan shall be maintained by
Hubbell at its expense. All expenses of administering the Plan shall be paid by Hubbell.

     5.3 Except to the extent required by law, the right of any Director or any beneficiary to any
benefit or to any payment hereunder shall not be subject in any manner to attachment or other legal
process for the debts of such Director or beneficiary; and any such benefit or payment shall not be
subject to alienation, sale, transfer, assignment or encumbrance.

     5.4 No member of the Board and no officer or employee of Hubbell shall be liable to any person
for any action taken or omitted in connection with the administration of the Plan unless
attributable to his own fraud or willful misconduct, and Hubbell shall not be liable to any person
for any such action unless attributable to fraud or willful misconduct on the part of a Director,
officer or employee of Hubbell.

     5.5 To the extent applicable, this Plan shall be interpreted in accordance with Code Section
409A and Department of Treasury regulations and other interpretive guidance issued thereunder. If
the Compensation Committee determines that any compensation or benefits payable under this Plan do
not comply with Code Section 409A and related Department of Treasury guidance, the Board may amend
this Plan or adopt other policies or procedures (including amendments, policies and procedures with
retroactive effect), or take such other actions as the Board deems necessary or appropriate to
comply with the requirements of Code Section 409A and related Department of Treasury guidance;
provided that no such amendment shall be effective without the Director’s consent unless it
preserves the Director’s economic benefit prior to such amendment.

ARTICLE VI.

AMENDMENT OF PLAN

     6.1 Subject to any shareholder approval which may be required by law or the requirements of
any stock exchange on which Hubbell’s Class A or Class B Common Stock is then listed, the Plan may
be amended, suspended or terminated in whole or in part from time to time by the Board, except no
amendment, suspension, or termination shall apply to the payment

7

 

to any Director or beneficiary of a deceased Director of an amount previously credited to a
Director’s Accounts, without the Director’s consent.

     6.2 Notice of every such amendment shall be given in writing to each Director and beneficiary
of a deceased director.

     6.3 Notwithstanding any other provision of the Plan to the contrary:

          (a) no amendment or action by the Board which adversely affects any Director under the Plan
will be valid and enforceable without the prior written consent of such Director;

          (b) no termination of the Plan shall have the effect of reducing any amounts credited to a
Director’s Accounts.

ARTICLE VII.

CHANGE OF CONTROL

     7.1 Notwithstanding any election under Section 2.2 to the contrary, upon the occurrence of a
Change of Control the amounts credited to a Director’s Accounts shall be paid in cash lump sum,
with the Director’s Stock Unit Account being converted into cash on the date of the Change of
Control.

     7.2 A Director’s Stock Unit Account shall be converted into cash by converting each Stock Unit
into the right to receive an amount of cash equal to the highest of the product of (a) the number
of Units held in the Stock Unit Account multiplied by (b) (i) per share amount payable to a
shareholder of Hubbell holding one share of Hubbell Class A Common Stock and one share of Hubbell
Class B Common Stock in the Change of Control or (ii) the sum of the closing prices of one share of
Hubbell Class A Common Stock and one share of Hubbell Class B Common Stock, applicable, on the NYSE
on that day on which the aggregate of such closing prices was the highest, during the 60 days
preceding the date on which the Change of Control occurs.

     7.3 If the Board, in its discretion, determines that a Change in Control is likely to occur,
then Hubbell shall deposit the estimated cash equivalent of the Directors’ Accounts into an
irrevocable grantor trust to be held for the benefit of the Directors under this Plan. In
determining the cash value of Director’s Stock Unit Accounts, for this purpose, the value of a
Stock Unit shall be estimated in accordance with Section 7.2 assuming that the Change of Control
occurred on such date and using a per share amount which the Board estimates is likely to be paid
to shareholders in the Change of Control for purposes of Section 7.2(b)(i). Any assets of such
trust shall be subject to the claims of creditors of Hubbell to the extent set forth in the trust,
and Directors’ interests in benefits under this Plan shall only be those of unsecured creditors of
Hubbell. To the extent the actual value of the Stock Unit Account upon the Change of Control is
less than estimated by the Board, then such excess shall be returned to Hubbell, or used to pay
expenses of such trust. Notwithstanding the foregoing, the Company is not required to fund any
trust for the benefit of the Eligible Directors if such funding would result in taxation to the
Eligible Directors under Section 409A of the Code.

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     7.4 Following a Change of Control all references to “Compensation Committee” in Section 9.3
are deleted and in lieu thereof is inserted the phrase “trustee under the trust, created pursuant
to Section 7.3.”

     7.5 A Director’s Accounts shall be paid within thirty (30) days following the Change of
Control.

ARTICLE VIII.

EFFECTIVE DATE

     8.1 This Plan was originally adopted by the Board of Directors on December 12, 1978 and
amended on December 14, 1982, December 9, 1986, June 14, 1989, June 20, 1991 and December 8, 1999.
The provisions of this Plan as set forth in this document are effective as of January 1, 2005 and
apply to Directors who were or become members of the Board of Directors on and after January 1,
2005, and all fees deferred under this Plan, whether occurring prior to, on or after January 1,
2005. Directors who had a Separation from Service prior to January 1, 2005 shall have their
Accounts paid in accordance with the provisions of the Plan as in effect on the date of their
Separation from Service.

ARTICLE IX.

MISCELLANEOUS PROVISIONS 

     9.1 This Plan does not in any way obligate Hubbell to continue to retain a Director on the
Board, nor does this Plan limit the right of Hubbell to terminate a Director’s service on the
Board.

     9.2 No amounts payable hereunder may be assigned, pledged, mortgaged or hypothecated and to
the extent permitted by law, no such amounts shall be subject to legal process or attachment for
the payment of any claims against any person entitled to receive the same.

     9.3 If a Director entitled to receive any payments of his Accounts under the terms of this
Plan is deemed by the Compensation Committee or is adjudged by a court of competent jurisdiction to
be legally incapable of giving valid receipt and discharge for such retirement benefit, such
payments shall be paid to such person or persons as the Compensation Committee shall designate or
to the duly appointed guardian of such Eligible Director. Such payments shall, to the extent made,
be deemed a complete discharge for such payments under this Plan.

     9.4 Payments made by Hubbell under this Plan to any Eligible Director shall be subject to
withholding as shall, at the time for such payment, be required under any income tax or other laws,
whether of the United States or any other jurisdiction.

     9.5 The provisions of this Plan will be construed according to the laws of the State of
Connecticut, excluding the provisions of any such laws that would require the application of the
laws of another jurisdiction.

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     9.6 The masculine pronoun wherever used herein shall include the feminine gender and the
feminine the masculine and the singular number as used herein shall include the plural and the
plural the singular unless the context clearly indicates a different meaning.

     9.7 The titles to articles and headings of sections of this Plan are for convenience of
reference only and in case of any conflict, the text of the Plan, rather than such titles and
headings, shall control.

     9.8 Directors and their beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interests or claims in any property or assets of Hubbell. For purposes of the
payment of benefits under this Plan, any and all of Hubbell’s assets shall be, and remain, the
general, unpledged unrestricted assets of Hubbell. Hubbell’s obligation under the Plan shall be
merely that of an unfunded and unsecured promise to pay money in the future.

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