Document:

Exhibit 10.5

                              HC INNOVATIONS, INC.

              SUBSCRIPTION AGREEMENT FOR THE PURCHASE OF SECURITIES

         HC  INNOVATIONS,  INC.,  a Delaware  corporation  (the  "COMPANY"),  is
offering  (the  "OFFERING")  for sale to  "ACCREDITED  INVESTORS" as the term is
defined under  Regulation D  promulgated  under the  Securities  Act of 1933, as
amended  (the  "ACT"),  up to  $1,000,000  principal  amount  of  the  Company's
Convertible  Debentures  ("DEBENTURES")  for a purchase price of $1,000 for each
$1,000 principal amount of the Debentures.

         The minimum  investment  by any one investor  will be for a purchase of
Debentures in the principal  amount of $100,000,  upon the terms and  conditions
described herein, except that a lesser principal amount of the Debentures may be
sold at the discretion of the Company.

         The  undersigned  hereby  subscribes  to  purchase  Debentures  in  the
prinicpal  amount of $________  and agrees to pay an aggregate of $______ as the
subscription   amount  for  such  Debentures  being  purchased   hereunder  (the
"SUBSCRIPTION  AMOUNT"). The entire  Subscription Amount is due and payable upon
the execution and delivery of this Subscription Agreement,  and shall be paid by
check,  subject to collection (or by wire transfer according to the instructions
provided by the Company), made payable to the order of "HC INNOVATIONS,  INC.").
The Company has the right to reject this subscription in whole or in part.

         The  Company  retains the right to utilize a NASD member firm to act as
placement  agent in  connection  with the Offering in which event the  placement
agent may receive a cash  commission from the gross proceeds from the Debentures
sold by such placement  agent.  Any such  commission is expected to be at a rate
that is compatible with industry standards.

         Unless terminated sooner, by the Company,  in its sole discretion,  the
Offering is scheduled to terminate on ____ 15, 2005, 5:00 p.m., Eastern Daylight
Savings Time and in the Company's sole discretion may be extended until ____ 15,
2005, 5:00 p.m., Eastern Daylight Savings Time (the "OFFERING PERIOD").

         The Company  will hold a closing on and issue the  Debentures  upon the
receipt and acceptance of the Subscription  Agreement and the Subcription Amount
(the  "CLOSING").  The date of such Closing is referred to herein as the Closing
Date.

         Prospective  Investors should retain their own professional advisors to
review and evaluate the economic, tax and other consequences of an investment in
the Company.

THE  SECURITIES  OFFERED  HEREBY,  HAVE NOT BEEN  FILED  OR  REGISTERED  WITH OR
APPROVED BY THE SECURITIES AND EXCHANGE COMMISSION (THE  "COMMISSION"),  NOR HAS
THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THE

<PAGE>

OFFERING  MATERIALS.  NO STATE  SECURITIES  LAW  ADMINISTRATOR  HAS PASSED ON OR
ENDORSED  THE MERITS OF THIS  OFFERING OR THE  ACCURACY  OR THE  ADEQUACY OF THE
OFFERING MATERIALS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

IT IS INTENDED  THAT THE  SECURITIES  OFFERED  HEREBY WILL BE MADE  AVAILABLE TO
ACCREDITED INVESTORS,  AS DEFINED IN REGULATION D AND RULE 501 PROMULGATED UNDER
THE  SECURITIES  ACT OF 1933,  AS  AMENDED  (THE  "ACT")  AND UP TO  THIRTY-FIVE
NON-ACCREDITED  INVESTORS.  THE  SECURITIES  OFFERED  HEREBY  ARE BEING  OFFERED
PURSUANT  TO AN  EXEMPTION  FROM THE  REGISTRATION  REQUIREMENTS  OF THE ACT AND
APPLICABLE STATE SECURITIES LAWS FOR NONPUBLIC OFFERINGS.  SUCH EXEMPTIONS LIMIT
THE  NUMBER  AND  TYPES OF  INVESTORS  TO WHICH  THE  OFFERING  WILL BE MADE AND
RESTRICT SUBSEQUENT TRANSFERS OF THE INTERESTS.

THE  SECURITIES  OFFERED  HEREBY  SHOULD BE  CONSIDERED  ONLY BY PERSONS WHO CAN
AFFORD TO SUSTAIN A LOSS OF THEIR ENTIRE INVESTMENT.  INVESTORS WILL BE REQUIRED
TO  REPRESENT  THAT  THEY ARE  FAMILIAR  WITH AND  UNDERSTAND  THE TERMS OF THIS
OFFERING.

NO SECURITIES MAY BE RESOLD OR OTHERWISE  DISPOSED OF BY AN INVESTOR UNLESS,  IN
THE  OPINION OF COUNSEL  SATISFACTORY  TO THE  COMPANY,  REGISTRATION  UNDER THE
APPLICABLE  FEDERAL OR STATE  SECURITIES  LAWS IS NOT REQUIRED OR  COMPLIANCE IS
MADE WITH SUCH REGISTRATION REQUIREMENTS.

THE OFFEREE, BY ACCEPTING DELIVERY OF THE OFFERING  MATERIALS,  AGREES TO RETURN
THE OFFERING  MATERIALS AND ALL ACCOMPANYING OR RELATED DOCUMENTS TO THE COMPANY
UPON  REQUEST IF THE OFFEREE  DOES NOT AGREE TO PURCHASE  ANY OF THE  SECURITIES
OFFERED HEREBY.

ANY OFFERING MATERIALS SUBMITTED IN CONNECTION WITH THE PRIVATE PLACEMENT OF THE
SECURITIES  DO  NOT  CONSTITUTE  AN  OFFER  OR  SOLICITATION  BY  ANYONE  IN ANY
JURISDICTION  IN WHICH  SUCH AN OFFER OR  SOLICITATION  IS NOT  AUTHORIZED.  ANY
REPRODUCTION OR  DISTRIBUTION OF ANY OFFERING  MATERIALS IN WHOLE OR IN PART, OR
THE DIVULGENCE OF ANY OF THEIR  CONTENTS,  WITHOUT THE PRIOR WRITTEN  CONSENT OF
THE  COMPANY,  IS  PROHIBITED.  ANY  PERSON  ACTING  CONTRARY  TO THE  FOREGOING
RESTRICTIONS  MAY PLACE  HIM/HERSELF  AND THE COMPANY IN VIOLATION OF FEDERAL OR
STATE SECURITIES LAWS.

<PAGE>

                              NASAA UNIFORM LEGEND

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF
THE  COMPANY  AND THE TERMS OF THE  OFFERING,  INCLUDING  THE  MERITS  AND RISKS
INVOLVED.  THESE  SECURITIES  HAVE NOT BEEN  RECOMMENDED BY ANY FEDERAL OR STATE
SECURITIES  COMMISSION  OR  REGULATORY  AUTHORITY.  FURTHERMORE,  THE  FOREGOING
AUTHORITIES  HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED  THE ADEQUACY OF THIS
DOCUMENT.  ANY  REPRESENTATION  TO THE  CONTRARY  IS A CRIMINAL  OFFENSE.  THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE TRANSFERRED  OR RESOLD EXCEPT AS PERMITTED  UNDER THE ACT, AND THE APPLICABLE
STATE  SECURITIES  LAWS,  PURSUANT  TO  REGISTRATION  OR  EXEMPTION   THEREFROM.
INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS
OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

         The undersigned  acknowledges  that neither (a) the Debentures  offered
hereby nor (b) the common stock  issuable upon the  conversion of the Debentures
will be  registered  under the Act, or the  securities  laws of any State,  that
absent an exemption from registration  contained in those laws, the issuance and
sale  of  such  Debentures  or  common  stock,  as  applicable,   would  require
registration,  and that the Company's reliance upon such exemption is based upon
the undersigned's  representations,  warranties, and agreements contained in the
Offering Materials (as defined below).

         1.       The undersigned represents, warrants, and agrees as follows:

         (a)      The undersigned agrees that this Subscription Agreement is and
shall be irrevocable.

         (b)      The   undersigned   has  carefully   read  this   Subscription
Agreement,  the Confidential Private Placement Memorandum,  and the Confidential
Prospective Purchaser Questionnaire (collectively the "OFFERING MATERIALS"), all
of which the undersigned acknowledges have been provided to the undersigned. The
undersigned  has been given the  opportunity  to ask  questions  of, and receive
answers from the Company  concerning  the terms and  conditions of this Offering
and the Offering Materials and to obtain such additional written information, to
the extent the  Company  possesses  such  information  or can acquire it without
unreasonable effort or expense,  necessary to verify the accuracy of the same as
the  undersigned  desires in order to evaluate the  investment.  The undersigned
further  acknowledges  that  the  undersigned  fully  understands  the  Offering
Materials,  and the undersigned has had the opportunity to discuss any questions
regarding any of the Offering Materials with the undersigned's  counsel or other
advisor.  Notwithstanding  the foregoing,  the only  information  upon which the
undersigned  has  relied is that set  forth in the  Offering  Materials  and the
undersigned's own independent  investigation.  The undersigned acknowledges that
the undersigned has received no representations or warranties from

<PAGE>

the  Company or its  employees,  director  or agents in making  this  investment
decision other than as set forth in the Offering Materials.

         (c)      The  undersigned  is aware that the purchase of the Debentures
is a speculative investment involving a high degree of risk and that there is no
guarantee that the undersigned will realize any gain from this  investment,  and
that  the  undersigned   could  lose  the  total  amount  of  the  undersigned's
investment.

         (d)      The  undersigned  understands  that no federal or state agency
has made any finding or determination regarding the fairness of this Offering of
the  Debentures for  investment,  or any  recommendation  or endorsement of this
Offering of the Debentures.

         (e)      The   undersigned   is  purchasing   the  Debentures  for  the
undersigned's own account, with the intention of holding the Debentures, with no
present  intention  of  dividing  or  allowing  others  to  participate  in this
investment or of reselling or otherwise  participating,  directly or indirectly,
in a distribution of the Debentures,  and shall not make any sale, transfer,  or
pledge thereof without registration under the Act and any applicable  securities
laws of any state or unless an exemption from  registration  is available  under
those laws.

         (f)      The  undersigned  represents  that  the  undersigned,   if  an
individual,  has adequate  means of providing  for his or her current  needs and
personal  and  family  contingencies  and  has no  need  for  liquidity  in this
investment in the  Debentures.  The  undersigned has no reason to anticipate any
material change in his or her personal  financial  condition for the foreseeable
future.

         (g)      The undersigned is financially  able to bear the economic risk
of this investment, including the ability to hold the Debentures indefinitely or
to afford a complete loss of the undersigned's investment in the Debentures.

         (h)      The  undersigned  represents  that the  undersigned's  overall
commitment to this investment is not  disproportionate  to the undersigned's net
worth,  and the  undersigned's  investment in the Debentures will not cause such
overall  commitment to become  excessive.  The undersigned  understands that the
statutory  basis on which the Debentures are being sold to the  undersigned  and
others would not be available if the  undersigned's  present  intention  were to
hold the  Debentures  for a fixed  period or until the  occurrence  of a certain
event. The undersigned  realizes that in the view of the Commission,  a purchase
now with a  present  intent  to  resell  by  reason  of a  foreseeable  specific
contingency or any  anticipated  change in the market value, or in the condition
of the Company,  or that of the industry in which the business of the Company is
engaged or in connection with a contemplated  liquidation,  or settlement of any
loan obtained by the undersigned for the acquisition of the Debentures,  and for
which such Debentures may be pledged as security or as donations to religious or
charitable institutions for the purpose of securing a deduction on an income tax
return,  would, in fact,  represent a purchase with an intent  inconsistent with
the undersigned's  representations  to the Company and the Commission would then
regard such sale as a

<PAGE>

sale for which the exemption from registration is not available. The undersigned
will not pledge, transfer or assign this Subscription Agreement.

         (i)      The  undersigned  represents  that the funds provided for this
investment are either separate property of the undersigned,  community  property
over which the undersigned  has the right of control,  or are otherwise funds as
to which the undersigned has the sole right of management.

         (j)      FOR  PARTNERSHIPS,  CORPORATIONS,  TRUSTS,  OR OTHER  ENTITIES
ONLY: If the undersigned is a partnership,  corporation,  trust or other entity,
(i) the undersigned has enclosed with this  Subscription  Agreement  appropriate
evidence  of  the  authority  of  the  individual  executing  this  Subscription
Agreement to act on its behalf (e.g.,  if a trust, a certified copy of the trust
agreement;  if a corporation,  a certified corporate resolution  authorizing the
signature  and a  certified  copy  of the  articles  of  incorporation;  or if a
partnership,   a  certified  copy  of  the  partnership  agreement),   (ii)  the
undersigned represents and warrants that it was not organized or reorganized for
the specific purpose of acquiring the Debentures,  (iii) the undersigned has the
full power and  authority  to execute this  Subscription  Agreement on behalf of
such entity and to make the  representations  and warranties  made herein on its
behalf,  and  (iv)  this  investment  in  the  Company  has  been  affirmatively
authorized,  if  required,  by the  governing  board of such  entity  and is not
prohibited by the governing documents of the entity.

         (k)      The address shown under the undersigned's signature at the end
of this Subscription Agreement is the undersigned's principal residence if he or
she is an  individual,  or its principal  business  address if a corporation  or
other entity.

         (l)      The undersigned has such knowledge and experience in financial
and business  matters as to be capable of evaluating  the merits and risks of an
investment in the Debentures.

         (m)      The undersigned  acknowledges  that the  certificates  for the
securities  comprising the Debentures  which the  undersigned  will receive will
contain a legend substantially as follows:

         "THE SECURITIES  WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE
         NOT BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT OF  1933,  AS
         AMENDED,  AND MAY NOT BE  SOLD,  TRANSFERRED,  HYPOTHECATED  OR
         OTHERWISE  DISPOSED  OF  UNTIL A  REGISTRATION  STATEMENT  WITH
         RESPECT  THERETO IS DECLARED  EFFECTIVE  UNDER SUCH ACT, OR THE
         COMPANY  RECEIVES AN OPINION OF COUNSEL FOR THE COMPANY THAT AN
         EXEMPTION  FROM THE  REGISTRATION  REQUIREMENTS  OF SUCH ACT IS
         AVAILABLE."

<PAGE>

         The  undersigned  further   acknowledges  that  (i)  if  the  Company's
Debentures  become publicly  traded,  any necessary stop transfer orders will be
placed upon the Company's  Debentures  in accordance  with the Act, and (ii) the
Company is under no obligation to aid the undersigned in obtaining any exemption
from the registration requirements.

         2.       The  undersigned  expressly  acknowledges  and agrees that the
Company is  relying  upon the  undersigned's  representations  contained  in the
Offering Materials.

         3.       The undersigned  subscriber  acknowledges that the undersigned
understands  the  meaning  and legal  consequences  of the  representations  and
warranties which are contained  herein and hereby agrees to indemnify,  save and
hold  harmless the Company and its  officers,  directors  and counsel,  from and
against  any  and  all  claims  or  actions  arising  out  of a  breach  of  any
representation,  warranty or acknowledgment of the undersigned  contained in any
of the Offering Materials.  Such indemnification  shall be deemed to include not
only the  specific  liabilities  or  obligations  with  respect  to  which  such
indemnity is provided, but also all reasonable costs, expenses, counsel fees and
expenses of settlement  relating  thereto,  whether or not any such liability or
obligation shall have been reduced to judgment.  In addition,  the undersigned's
representations,  warranties and indemnification  contained herein shall survive
the  undersigned's  purchase  of  the  Debentures  hereunder.   The  undersigned
specifically  acknowledges  that he has  reviewed  the  risks  set  forth in the
Offering Materials, as well as the financial statements included therein.

         4.       The  Company  represents  that it has been  duly  and  validly
incorporated and is validly existing and in good standing as a corporation under
the laws of the  State  of  Delaware.  The  Company  represents  that it has all
requisite power and authority, and all necessary  authorizations,  approvals and
orders  required  as of the date  hereof to own its  properties  and conduct its
business and to enter into this  Subscription  Agreement and the other  Offering
Materials and to be bound by the provisions  and  conditions  hereof or therein.
The Company  further  represents  that the  securities  offered hereby are being
offered pursuant to an exemption from the  registration  requirements of the Act
and applicable state securities laws for nonpublic offerings.

         5.       The undersigned  agrees and acknowledges  that the Company has
the right to utilize  the  services of a placement  agent and if  utilized,  may
receive a cash commission, at a rate that is compatible with industry standards,
from the Debentures sold by such placement agent.

         6.       The  undersigned's  rights  to have the  shares  of  Company's
common stock issuable upon the  conversion of the Debentures  registered are set
forth in a separate  Registration  Rights Agreement of even date herewith by and
among the Company and the holders of the Debentures.

         7.       Except as otherwise  specifically  provided for hereunder,  no
party shall be deemed to have  waived any of his or her or its rights  hereunder
or under any other

<PAGE>

agreement,  instrument  or  papers  signed by any of them  with  respect  to the
subject  matter  hereof unless such waiver is in writing and signed by the party
waiving said right. Except as otherwise specifically provided for hereunder,  no
delay or  omission  by any party in  exercising  any right  with  respect to the
subject  matter  hereof  shall  operate as a waiver of such right or of any such
other  right.  A waiver on any one occasion  with respect to the subject  matter
hereof  shall not be construed as a bar to, or waiver of, any right or remedy on
any future occasion.  All rights and remedies with respect to the subject matter
hereof,  whether  evidenced  hereby or by any other  agreement,  instrument,  or
paper, will be cumulative, and may be exercised separately or concurrently.

         8.       The parties have not made any  representations  or  warranties
with  respect  to the  subject  matter  hereof  not set forth  herein,  and this
Subscription  Agreement,  together with any instruments executed  simultaneously
herewith,  constitutes  the entire  agreement  between  them with respect to the
subject matter hereof.  All understandings  and agreements  heretofore  existing
between the parties with respect to the subject matter hereof are merged in this
Subscription Agreement and any such instrument, which alone fully and completely
express their agreement.

         9.       This  Subscription  Agreement  may not be  changed,  modified,
extended,  terminated or discharged orally, but only by an agreement in writing,
which is signed by all of the parties to this Subscription Agreement.

         10.      The  parties  agree  to  execute  any and all such  other  and
further instruments and documents,  and to take any and all such further actions
reasonably required to effectuate this Subscription Agreement and the intent and
purposes hereof.

         11.      If any  provision  or any  portion  of any  provision  of this
Subscription  Agreement or the  application of any such provision or any portion
thereof to any person or circumstance,  shall be held invalid or  unenforceable,
the  remaining  portion  of such  provision  and the  remaining  portion of such
provision as is held invalid or unenforceable to persons or circumstances  other
than  those  as to which  it is held  invalid  or  unenforceable,  shall  not be
affected thereby.

         12.      This Subscription Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware and the undersigned  hereby
consents to the  jurisdiction  of the courts of the State of New York and/or the
United States District Court for the Southern District of New York.

<PAGE>

                ALL SUBSCRIBERS MUST COMPLETE A COPY OF THIS PAGE

                           --------------------------
                           (Print Name of Subscriber)

                  IN  WITNESS   WHEREOF,   the  undersigned  has  executed  this
Subscription Agreement on this ____ day of ________, 2005.

                  Debenture Subscription Amount $______

         1.       |__|     Individual

         2.       |__|     Joint Tenants with Right of Survivorship

         3.       |__|     Community Property

         4.       |__|     Tenants in Common

         5.       |__|     Corporation/Partnership

         6.       |__|     IRA of________________

         7.       |__|     Trust

                           Date Opened ___________

         8.       |__|     As A Custodian For________________

                           Under the Uniform Transfer to Minors Act of the

                           State of ___________

         9.       |__|     Married with Separate

                           Property

         10.      |__|     Keogh of ____________

<PAGE>

                 EXECUTION BY SUBSCRIBER WHO IS A NATURAL PERSON

--------------------------------------------------------------------------------
                     Exact Name in Which Title is to be Held

--------------------------------------------------------------------------------
                                   (Signature)

--------------------------------------------------------------------------------
                               Name (Please Print)

--------------------------------------------------------------------------------
                       Title of Person Executing Agreement

--------------------------------------------------------------------------------
                           Address: Number and Street

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                      City               State         Zip Code

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                             Social Security Number

         Accepted this ___ day of _______,  2005,  on behalf of HC  INNOVATIONS,
INC.

                                                 By: ___________________________
                                                     Name:
                                                     Title:

<PAGE>

                 EXECUTION BY SUBSCRIBER WHICH IS A CORPORATION,

                              PARTNER, TRUST, ETC.

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                     Exact Name in Which Title is to be Held

--------------------------------------------------------------------------------
                                   (Signature)

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                                    Name (Please Print)

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                            Title of Person Executing Agreement

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                                  Address: Number and Street

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                City                            State    Zip Code

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                                        Tax Identification Number

         Accepted this ___ day of _______, 2005on behalf of HC INNOVATIONS, INC.

                                                    By: ________________________
                                                        Name:
                                                        Title:Exhibit 4.1

FORM OF FIXED RATE SENIOR NOTE

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

        	 	
CUSIP:
        

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

  

	
MORGAN STANLEY
        
	
SENIOR GLOBAL MEDIUM-TERM NOTE, SERIES F
        
	
(Fixed Rate)
        
	 
	
STOCK PARTICIPATION ACCRETING
        
	
      REDEMPTION QUARTERLY-PAY SECURITIESSM (“SPARQS”)
          
	 
	
      % SPARQS® DUE SEPTEMBER 20, 2007
          
	
MANDATORILY EXCHANGEABLE
        
	
FOR SHARES OF COMMON STOCK OF
        
	
INTEL CORPORATION
        

	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
	 	 

 

2

 

	Stated Principal
    Amount	 	$                  per SPARQS
	 	 	 
	Underlying Company 	 	 Intel Corporation
    (“Intel”)
	 	 	 
	Underlying Stock 	 	 The common stock
    of Intel
	 	 	 
	Pricing Date	 	 
	 	 	 
	Issue Price 	 	 $                  per each
    Stated Principal Amount of this SPARQS
	 	 	 
	Denominations	 	 $                  and integral
    multiples thereof
	 	 	 
	Acceleration Trigger Price 	 	 The product of $           and the Exchange Ratio
	 	 	 
	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 	 	 March 20,
    2007
	 	 	 
	Maturity Date 	 	September
          20, 2007, 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 or otherwise and the Issuer
          exercises the Morgan Stanley Call Right, the scheduled Maturity Date
          shall be postponed so that the Maturity Date will be 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 

3

	 	 	Trustee by first
        class mail, postage prepaid, at its New York office and (iii) to The
        Depository Trust Company (the “Depositary”) by telephone or
        facsimile confirmed by mailing such notice to the Depositary by first
        class mail, postage prepaid. Any notice that is mailed in the manner
        herein provided shall be conclusively presumed to have been duly given,
        whether or not the holder of this 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 	 	 December 20,
    2006, March 20, 2007, June 20, 2007 and the Maturity Date.

     If the scheduled Maturity
        Date is postponed due to a Market Disruption Event or otherwise, the
        Issuer shall pay interest on the Maturity Date as postponed rather than
        on the scheduled Maturity Date, but no interest will 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” on page 24 hereof, the Record
        Date for each Interest Payment Date, including the Interest Payment Date
        scheduled to occur on the Maturity Date, shall be the date 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.

4

	 	 	In the event that
        the Issuer exercises the Morgan Stanley Call Right and the Morgan Stanley
        Notice Date falls before the “ex-interest” date for an interest
        payment, so that as a result a scheduled Interest Payment Date will 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 will 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.

5

 

	 	 	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 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 will
          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.

6

 

	Final Call Notice
    Date 	 	September 10,
        2007; 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 will be the immediately succeeding
    Trading Day on which no Market Disruption Event occurs.
	 	 	 
	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 Issue Price, 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 

 

7

 

	 	 	“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 “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

8

	 	 	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. 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:

9

 

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

      (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 will 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.

    

	 	 	 
	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 (as defined below) means:

      	if the Underlying
              Stock (or any such other security) is listed or admitted to trading
              on a national securities exchange, the last reported sale price, regular
              way, of the principal trading session on such day on the principal
              United States securities exchange registered under the 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,

10

 

	 	 		if
              the Underlying Stock (or any such other security) is a security of
              the Nasdaq National Market (and provided that
              the Nasdaq National Market is not then a national securities exchange),
              the Nasdaq official closing price published by The Nasdaq Stock Market,
              Inc. on such day, or 

              

              
	 if the Underlying
              Stock (or any such other security) is neither listed or admitted to
              trading on any national securities exchange nor a security of the Nasdaq
              National Market but is included in the OTC Bulletin Board Service (the “OTC
              Bulletin Board”) operated by the National Association of Securities
              Dealers, Inc. (the “NASD”), 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 or is a security of the Nasdaq National
        Market but the last reported sale price or Nasdaq official closing price,
        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 will mean the last reported
        sale price of the principal trading session on the over-the-counter market
        as reported on the Nasdaq National Market or the OTC Bulletin Board on
        such day. If, because of a Market Disruption Event (as defined below)
        or otherwise, the last reported sale price or Nasdaq official closing
        price, 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 will be the mean, as determined
        by the Calculation Agent, of the bid prices for the Underlying Stock
        (or any such other security) obtained from as many recognized dealers
        in such security, but not exceeding three, as will 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 term “security of the Nasdaq National Market” will include
    a security included in any successor to such

11

 

	 	 	system, and the
    term OTC Bulletin Board Service will 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, Inc. (“NYSE”), the
        American Stock Exchange LLC, the Nasdaq National Market, the Chicago
        Mercantile Exchange, the Chicago Board of Options Exchange and in the
    over-the-counter market for equity securities in the United States.
	 	 	 
	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.

12

	 	 	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.

       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

 

13

 

	 	 	distributions
        described in paragraph 2, paragraph 3 and clauses (i), (iv) and (v) of
        the first sentence of paragraph 5 and Extraordinary Dividends. “Extraordinary
        Dividend” means each of (a) the full amount per share of Underlying
        Stock of any cash dividend or special dividend or distribution that is
        identified by the Underlying Company as an extraordinary or special dividend
        or distribution, (b) the excess of any cash dividend or other cash distribution
        (that is not otherwise identified by the Underlying Company as an extraordinary
        or special dividend or distribution) distributed per share of Underlying
        Stock over the immediately preceding cash dividend or other cash distribution,
        if any, per share of Underlying Stock that did not include an Extraordinary
        Dividend (as adjusted for any subsequent corporate event requiring an
        adjustment hereunder, such as a stock split or reverse stock split) if
        such excess portion of the dividend or distribution is more than 5% of
        the Closing Price of the Underlying Stock on the Trading Day preceding
        the “ex-dividend date” (that is, the day on and after which
        transactions in the Underlying Stock on an organized securities exchange
        or trading system no longer carry the right to receive that cash dividend
        or other cash distribution) for the payment of such cash dividend or
        other cash distribution (such Closing Price, the “Base Closing Price”)
        and (c) the full cash value of any non-cash dividend or distribution
        per share of Underlying Stock (excluding Marketable Securities, as defined
        in paragraph 5 below). Subject to the following sentence, if any cash
        dividend or distribution of such other property with respect to the Underlying
        Stock includes an Extraordinary Dividend, the Exchange Ratio with respect
        to the Underlying Stock shall be adjusted on the ex-dividend date so
        that the new Exchange Ratio shall equal the product of (i) the prior
        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. If any Extraordinary
        Dividend 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

 

14

	 	 	Reference
          Basket Stocks in accordance with the procedures for a Reference Basket
          Event as described in clause (c)(ii) of paragraph 5 below. 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 The Nasdaq National Market (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 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:

 

15

	 	 	(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 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 

    

 

16

 

	 	 	
      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 comprise
              the S&P 500 Index (or, if publication of such index is discontinued,
              any successor or substitute index selected by the Calculation 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

    

17

 

	 	 	
      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
	 	 	 
	 	(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.
	 	 	 

18

 

	 	 	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 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

19

 

	 	 	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 will be rounded to the nearest one hundred-thousandth,
          with five one-millionths rounded upward. Adjustments to the Exchange
          Ratios will 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.

       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.

 

20

	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 relevant exchange, (2) a decision to permanently
        discontinue trading in the relevant options contract 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,

21

	 	 	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 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.

 

22

	Treatment of SPARQS
    for United States 	 	 
	   Federal Income
    Tax Purposes	 	 The Issuer, by
        its sale of this SPARQS, and the holder of this SPARQS (and any successor
        holder of, or holder of a beneficial interest in, this SPARQS), by its
        respective purchase hereof, agree (in the absence of an administrative
        determination or judicial ruling to the contrary) to characterize each
        Stated Principal Amount of this SPARQS for all tax purposes as a unit
        consisting of (A) a terminable contract (the “Terminable Forward
        Contract”) that (i) requires the holder of this SPARQS (subject
        to the Morgan Stanley Call Right) to purchase, and the Issuer to sell,
        for an amount equal to $           (the “Forward Price”), the Underlying
        Stock at maturity and (ii) allows the Issuer, upon exercise of the Morgan
        Stanley Call Right, to terminate the Terminable Forward Contract by returning
        to such holder the Deposit (as defined below) and paying to such holder
        an amount of cash equal to the difference between the Deposit and the
        Call Price and (B) a deposit with the Issuer of a fixed amount of cash,
        equal to the Issue Price per each Stated Principal Amount of this SPARQS,
        to secure the holder’s obligation to purchase the Underlying Stock
        pursuant to the Terminable Forward Contract (the “Deposit”),
        which Deposit bears a quarterly compounded yield of     % per annum, provided,
        however, that any interest payments on this SPARQS made to non-U.S. investors
    will generally be withheld upon at a rate of 30%.

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, 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

24

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 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

25

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.

26

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

	 DATED: 	 MORGAN STANLEY 
	 	 	 	 	 
	 	By:	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

 

  	 TRUSTEE’S
      CERTIFICATE 
	          OF
      AUTHENTICATION 
	 	 	 
	 This is one
      of the Notes referred 
	          to
      in the within-mentioned 
	          Senior
      Indenture. 
	 
	 JPMORGAN CHASE
      BANK, N.A., 
	          as
      Trustee 
	 	 	 
	 	 	 
	By:	 
	 	

	 	Authorized Officer 

  

  
27

FORM OF REVERSE OF SECURITY

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

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

     If so indicated on the face hereof, this Note may be redeemed in whole or in part at the option of the Issuer on or after the Initial Redemption Date specified on the face hereof on
the terms set forth on the face hereof, together with interest accrued and unpaid hereon to the date of redemption. If this Note is subject to “Annual Redemption Percentage Reduction,” the Initial Redemption Percentage indicated on the
face hereof will be reduced on each anniversary of the Initial Redemption Date by the Annual Redemption Percentage Reduction specified on the face hereof until the redemption price of this Note is 100% of the principal amount hereof, together with
interest accrued and unpaid hereon to the date of redemption. 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 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.

28

     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 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.

29

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

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

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

30

     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 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) 

31

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 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.

32

     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;

     (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;

33

     (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 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

34

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 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

35

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.

     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.

36

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.

  ______________________________

37

  

     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.

38

  

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.

39

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