Document:

Exhibit 4.1 

FORM OF FIXED RATE SENIOR NOTE

	 REGISTERED 	 REGISTERED 
	 No. FXR-1 	 U.S. $ 
	  	 CUSIP: 61750V592 

      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

 PERFORMANCE LEVERAGED UPSIDE SECURITIES
      (“PLUS”)

      PLUS
      DUE MARCH 20, 2008

  MANDATORILY EXCHANGEABLE

FOR AN AMOUNT PAYABLE IN U.S. DOLLARS

BASED ON THE VALUE OF THE PHLX OIL SERVICE
SECTORSM

	 ORIGINAL
    ISSUE DATE:
	INITIAL
    REDEMPTION DATE: N/A
	INTEREST
    RATE: None
	MATURITY
    DATE: See “Maturity Date” below. 

	 INTEREST
    ACCRUAL DATE: N/A
	 INITIAL
    REDEMPTION PERCENTAGE: N/A
	 INTEREST
    PAYMENT DATE(S): N/A
	OPTIONAL REPAYMENT
    DATE(S): N/A

	SPECIFIED
    CURRENCY: U.S. dollars
	ANNUAL
    REDEMPTION PERCENTAGE REDUCTION: N/A
	INTEREST
    PAYMENT PERIOD: N/A
	APPLICABILITY
          OF MODIFIED PAYMENT UPON ACCELERATION
          OR REDEMPTION: See “Alternate Exchange Calculation in the 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: N/A
	APPLICABILITY
    OF ANNUAL INTEREST PAYMENTS: N/A
	 If
    yes, state Issue Price: N/A

	EXCHANGE
    RATE AGENT: N/A
	TAX
          REDEMPTION AND PAYMENT OF ADDITIONAL
    AMOUNTS: NO
	 PRICE
          APPLICABLE UPON OPTIONAL REPAYMENT:
    N/A
	 ORIGINAL
    YIELD TO MATURITY: N/A 

	OTHER
    PROVISIONS: See below
	IF
    YES, STATE INITIAL OFFERING DATE: N/A
	 	 

	Stated Principal Amount
      	  	                        per
          Plus
    
	 	 	 
	Underlying Index	 	PHLX Oil Service SectorSM Index
	 	 	 
	Underlying Index Publisher	 	Philadelphia Stock Exchange, Inc.
	 	 	 
	Initial Index Value	 	 
	 	 	 
	Pricing Date	 	 
	 	 	 
	Denominations	 	                Plus and integral multiples thereof
	 	 	 
	Bull Market or Bear Market PLUS	 	Bull MarketPLUS

 2

	 Maximum Payment at Maturity 	  	                             per Stated Principal Amount 
	  
	 Minimum Payment at Maturity 	  	  
	    if Bear Market PLUS 	  	 N/A 
	  
	Leverage Factor

      Index Valuation Date(s)
	  	          %

      March 18, 2008.

      If there is only one Index Valuation Date, the Final
          Index Value shall be determined on that Index Valuation Date. If there
          are multiple Index Valuation Dates, then the Final Average Index Value
          shall be determined on the last Index Valuation Date, which is referred
          to as the “Final Index Valuation Date.”

      If a Market Disruption Event with respect to the
          Underlying Index occurs on any scheduled Index Valuation Date, or if
          any such Index Valuation Date is not an Index Business Day, the Index
          Closing Value for such date shall be determined on the immediately
          succeeding Index Business Day on which no Market Disruption Event shall
          have occurred; provided that
          the Final Index Value or the Final Average Index Value, as applicable,
          shall not be determined on a date later than the fifth scheduled Index
          Business Day after the scheduled Index Valuation Date or Final Index
          Valuation Date, as applicable, and if such date is not an Index Business
          Day or if there is a Market Disruption Event on such date, the Calculation
          Agent shall determine the Index Closing Value of the Underlying Index
          on such date in accordance with the formula for calculating such index
          last in effect prior to the commencement of the Market Disruption Event
          (or prior to the non-Index Business Day), without rebalancing or
          substitution, using the closing price (or, if trading in the relevant
          securities has been materially suspended or materially limited, its
          good faith estimate of the closing price that would have prevailed
          but for such suspension, limitation or non-Index Business Day)
          on such date of each security most recently constituting the Underlying
          Index.

	  
	Maturity Date
	  	March 20, 2008, subject to
          extension if the scheduled Index Valuation Date or Final Index Valuation
          Date, as applicable, is postponed in accordance with the definition
          thereof. If the scheduled Index Valuation Date or Final Index Valuation
          Date, as applicable, is postponed so that it falls less than two scheduled

 3

	 	  	Trading Days prior to the scheduled
          Maturity Date, the Maturity Date shall be the second scheduled Trading
          Day following the Index Valuation Date or Final Index Valuation Date,
          as applicable, as postponed. See “Index Valuation Date(s).”

      In the event that the Maturity Date of the PLUS is
          postponed due to postponement of the Index Valuation Date or the Final
          Index Valuation Date, as applicable, as described in the immediately
          preceding paragraph, the Issuer shall give notice of such postponement
          and, once it has been determined, of the date to which the Maturity
          Date has been rescheduled (i) to the holder of this PLUS by mailing
          notice of such postponement by first class mail, postage prepaid, to
          the holder’s last address as it shall appear upon the registry
          books, (ii) to the Trustee by telephone or facsimile confirmed by mailing
          such notice to the Trustee by first class mail, postage prepaid, at
          its New York office and (iii) to The Depository Trust Company (the “Depositary”)
          by telephone or facsimile confirmed by mailing such notice to the Depositary
          by first class mail, postage prepaid. Any notice that is mailed in
          the manner herein provided shall be conclusively presumed to have been
          duly given, whether or not the holder of this PLUS receives the notice.
          The Issuer shall give such notice as promptly as possible, and in no
          case later than (i) with respect to notice of postponement of the Maturity
          Date, the Business Day immediately following the scheduled Index Valuation
          Date or Final Index Valuation Date, as applicable, and (ii) with respect
          to notice of the date to which the Maturity Date has been rescheduled,
          the Business Day immediately following the actual Index Valuation Date
          or Final Index Valuation Date, as applicable, for determining the Final
          Index Value (as defined below) or Final Average Index Value (as defined
          below), as applicable.

	  
	Payment at Maturity
	  	At maturity, upon delivery
          of this PLUS to the Trustee, the Issuer shall pay with respect to each
          Stated Principal Amount of this PLUS an amount in cash equal to:

      1. For a Bull Market
            PLUS, (i) if the Final Index Value,
            or Final Average Index Value, as applicable, is greater than the
            Initial Index Value, the lesser of (a) the Stated Principal Amount
            plus the Leveraged Upside

 4

	 	  	Payment and (b) the Maximum
          Payment at Maturity or (ii) if the Final Index Value or Final Average
          Index Value, as applicable, is less than or equal to the Initial Index
          Value, the Stated Principal Amount times the Index Performance Factor.

      2. For a Bear Market
            PLUS, (i) if the Final Index Value
            or Final Average Index Value, as applicable, is less than the Initial
            Index Value, the lesser of (a) the Stated Principal Amount plus the
            Enhanced Downside Payment and (b) the Maximum Payment at Maturity
            or (ii) if the Final Index Value or Final Average Index Value, as
            applicable, is greater than or equal to the Initial Index Value,
            the Stated Principal Amount minus the Upside Reduction Amount, subject
            to the Minimum Payment at Maturity.

      The Issuer shall, or shall cause the Calculation
          Agent to, (i) provide written notice to the Trustee and to the Depositary
          of the amount of cash to be delivered with respect to each Stated Principal
          Amount of this PLUS, on or prior to 10:30 a.m. on the Trading Day preceding
          the Maturity Date (but if such Trading Day is not a Business Day, prior
          to the close of business on the Business Day preceding the Maturity
          Date), and (ii) deliver the aggregate cash amount due with respect
          to this PLUS to the Trustee for delivery to the holder of this PLUS
          on the Maturity Date.

	  
	 Applicable only
          for BULL MARKET PLUS 
	  
	      Leveraged Upside Payment
	  	The product of (i) the Stated
          Principal Amount and (ii) the Leverage Factor and (iii) the Index Percent
          Increase.

	  
	      Index Performance Factor
	  	A fraction, the numerator of
          which shall be the Final Index Value or Final Average Index Value,
          as applicable, and the denominator of which shall be the Initial Index
          Value.

	  
	 Applicable only
          for BEAR MARKET PLUS 
	  
	      Enhanced Downside Payment
	  	The product of (i) the Stated
          Principal Amount and (ii) the Leverage Factor and (iii) the Index Percent
          Decrease.

	  
	      Upside Reduction Amount
	  	The product of (i) the Stated
          Principal Amount and (ii) the Index Percent Increase.

 5

	Index Percent Decrease
	  	A fraction, the numerator of
          which shall be the Initial Index Value minus the Final Index Value
          or Final Average Index Value, as applicable, and the denominator of
          which shall be the Initial Index Value.

	  
	Applicable for all PLUS	 	 
	 	 	 
	Index Percent Increase
      	  	A fraction, the numerator of
          which shall be the Final Index Value or Final Average Index Value,
          as applicable, minus the Initial Index Value and the denominator of
          which shall be the Initial Index Value.

	  
	Final Index Value
	  	For PLUS with a single Index
          Valuation Date, the Index Closing Value of the Underlying Index on
          the Index Valuation Date, as determined by the Calculation Agent; and

      for PLUS with multiple Index Valuation Dates, the
          arithmetic average of the Index Closing Values of the Underlying Index
          on the Index Valuation Dates, as calculated by the Calculation Agent,
          which is referred to as the “Final Average Index Value.”

	  
	Index Closing Value
	  	The Index Closing Value on
          any Index Business Day shall equal the closing value of the Underlying
          Index or any Successor Index (as defined under “Discontinuance
          of the Underlying Index; Alteration of Method of Calculation” below)
          published at the regular weekday close of trading on that Index Business
          Day, as determined by the Calculation Agent. In certain circumstances,
          the Index Closing Value shall be based on the alternate calculation
          of the Underlying Index described under “Discontinuance of the
          Underlying Index; Alteration of Method of Calculation.”

	  
	Price Source
	  	Bloomberg page “OSX,” which
          shall be used by the Calculation Agent to determine the Index Closing
          Value of the Underlying Index.

      If such service or any successor service no longer
          displays the Index Closing Value of the Underlying Index, then the
          Calculation Agent shall designate an alternate source of such Index
          Closing Value, which shall be the publisher of the Underlying Index,
          unless the Calculation Agent, in its sole discretion, determines that
          an alternate service has become the market standard for transactions
          related to such index.

 6

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

	  
	Index Business Day
	  	A day, as determined by the
          Calculation Agent, on which trading is generally conducted on each
          of the Relevant Exchange(s) for the Underlying Index, other than a
          day on which trading on such exchange(s) is scheduled to close prior
          to the time of the posting of its regular final weekday closing price.

	  
	Relevant Exchange
	  	Relevant Exchange means the
          primary exchange(s) or market(s) of trading for (i) any security then
          included in the Underlying Index, or any Successor Index, and (ii)
          any futures or options contracts related to the Underlying Index or
          to any security then included in the Underlying Index.

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

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

      All calculations with respect to the Payment at Maturity
          shall be rounded to the nearest one billionth, with five ten-billionths
          rounded upward (e.g.,
          .9876543215 would be rounded to .987654322); all dollar amounts related
          to determination of the amount of cash payable for each Stated Principal
          Amount of this PLUS shall be rounded to the nearest ten- thousandth,
          with five one hundred-thousandths rounded upward (e.g.,
          .76545 would be rounded up to .7655); and all dollar amounts paid on
          the aggregate number of PLUS shall be rounded to the nearest cent,
          with one-half cent rounded upward.

	  
	Market Disruption Event
	  	Market Disruption Event means,
          with respect to the Underlying Index, the occurrence or existence of
          any

 7

	 	  	of the following events, as
          determined by the Calculation Agent in its sole discretion:

      (i)(a) a suspension, absence or material limitation
          of trading of stocks then constituting 20 percent or more of the value
          of the Underlying Index (or the Successor Index) on the Relevant Exchanges
          for such securities for more than two hours of trading or during the
          one- half hour period preceding the close of the principal trading
          session on such Relevant Exchange; or

      (b) a breakdown or failure in the price and trade
          reporting systems of any Relevant Exchange as a result of which the
          reported trading prices for stocks then constituting 20 percent or
          more of the value of the Underlying Index (or the Successor Index)
          during the last one-half hour preceding the close of the principal
          trading session on such Relevant Exchange are materially inaccurate;
          or

      (c) the suspension, material limitation or absence
          of trading on any major U.S. securities market for trading in futures
          or options contracts or exchange traded funds related to the Underlying
          Index (or the Successor Index) for more than two hours of trading or
          during the one-half hour period preceding the close of the principal
          trading session on such market; 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 position
          with respect to this issuance of PLUS.

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

 8

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

	  
	Alternate Exchange Calculation	 	 
	  in the Case of an Event of Default
      	  	In case an event of default
          with respect to the PLUS shall have occurred and be continuing, the
          amount declared due and payable for each Stated Principal Amount of
          this PLUS upon any acceleration of this PLUS shall be determined by
          the Calculation Agent and shall be an amount in cash equal to the Payment
          at Maturity calculated using the Index Closing Value as of the date
          of such acceleration as the Final Index Value or Final Average Index
          Value, as applicable, plus, if applicable, any accrued but unpaid interest
          as of the date of such acceleration.

 9

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

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

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

      If the Underlying Index Publisher discontinues publication
          of the Underlying Index prior to, and such discontinuance is continuing
          on, any Index Valuation Date or the date of acceleration and the Calculation
          Agent determines, in its sole discretion, that no Successor Index is
          available at such time, then the Calculation Agent shall determine
          the Index Closing Value for such Index Valuation Date or date of acceleration.
          The Index Closing Value shall be computed by the Calculation Agent
          in accordance with the formula for and method of calculating the Underlying
          Index last in effect prior to such discontinuance, using the closing
          price (or, if trading in the relevant securities has been materially
          suspended

 10

	 	  	or materially limited, its
          good faith estimate of the closing price that would have prevailed
          but for such suspension or limitation) at the close of the principal
          trading session of the Relevant Exchange on such Index Valuation Date
          or date of acceleration of each security most recently constituting
          the Underlying Index without any rebalancing or substitution of such
          securities following such discontinuance.

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

 11

      Morgan
    Stanley, a Delaware corporation (together with its successors and assigns,
    the “Issuer”),
    for value received, hereby promises to pay to CEDE & Co., or registered
    assignees, the amount of cash, as determined in accordance with the provisions
    set forth under “Payment 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 person entitled
    thereto as such address shall appear in the Note register. A holder of U.S.

 12

 $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 and at which the applicable dealer
    commits to execute a contract. If such bid quotations are not

 13

 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.

 14

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

	 DATED:	MORGAN STANLEY
	 	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

  	 TRUSTEE’S CERTIFICATE 
	       OF
      AUTHENTICATION 
	 
	 This is one of the Notes referred 
	       to
      in the within-mentioned 
	      Senior
      Indenture.
	 
	 THE BANK OF NEW YORK, as 
	       Trustee 
	 	 	 
	 	 	 
	 	 	 
	By:	  
	 	

	 	 Authorized Signatory 

 

 15

 REVERSE OF SECURITY

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

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

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

 16

      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.

 17

      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.

      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

 18

 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) 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.

 19

      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.

      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

 20

 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;

      (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

 21

     (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 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

 22

 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
    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.

 23

      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.

 24

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.
	 
	

 

25

     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. 

 26

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.

27Exhibit 4.1 

FORM OF FLOATING RATE SENIOR NOTE

	REGISTERED 	U.S. $
	No. FLR-1 	CUSIP: 61750V642

     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 NOTES, SERIES F (Floating Rate)

  CAPITAL PROTECTED NOTE DUE FEBRUARY 20, 2011 BASED ON A GLOBAL BASKET OF INDICES

	
      BASE RATE: None 	
      ORIGINAL ISSUE DATE: 	
      MATURITY DATE:

   See “Maturity
Date” below.
	
      INDEX MATURITY: N/A 	
      INTEREST ACCRUAL DATE: N/A 	
      INTEREST PAYMENT DATE(S):

   N/A
	
      SPREAD (PLUS OR MINUS):

   N/A	
      INITIAL INTEREST RATE: N/A 	
      INTEREST PAYMENT PERIOD:

   N/A
	
      SPREAD MULTIPLIER: N/A 	
      INITIAL INTEREST RESET DATE:

   N/A	
      INTEREST RESET PERIOD: N/A 
	
      REPORTING SERVICE: N/A 	
      MAXIMUM INTEREST RATE: N/A 	
      INTEREST RESET DATE(S): N/A 
	
      INDEX CURRENCY: N/A 	
      MINIMUM INTEREST RATE: N/A 	
      CALCULATION AGENT: See

   “Calculation Agent” below.
	
      EXCHANGE RATE AGENT: N/A 	
      INITIAL REDEMPTION DATE: N/A 	
      SPECIFIED CURRENCY:

   U.S.
dollars 
	 		
      INITIAL REDEMPTION

   PERCENTAGE:
N/A	
      IF SPECIFIED CURRENCY OTHER

   THAN
U.S. DOLLARS, OPTION

   TO ELECT PAYMENT IN U.S.

   DOLLARS: N/A 
	 		
      ANNUAL REDEMPTION

   PERCENTAGE REDUCTION: N/A	
      DESIGNATED CMT TELERATE

   PAGE:
N/A 
	 		
      OPTIONAL REPAYMENT DATE(S):

   N/A	
      DESIGNATED CMT MATURITY

   INDEX:
N/A
	 		
      REDEMPTION NOTICE PERIOD:

   N/A	 	
	 		
      TAX REDEMPTION AND

   PAYMENT
OF ADDITIONAL

   AMOUNTS: NO 	 	
	 		
      IF YES, STATE INITIAL OFFERING

   DATE:
N/A	
      OTHER PROVISIONS: See below. 

	Denominations

Stated Principal Amount 

 Pricing Date
	 		and integral multiples thereof
	

  2

	Listed or Not Listed

Basket Setting Date
		 		Listed

For the S&P 500 Index, the Pricing Date. For
    the Dow Jones EURO STOXX 50 Index and the Nikkei 225 Index, the Index Business
    Day for such Basket Index (as defined below) immediately following the Pricing
    Date.
	
	 	 	 
	Maturity Date
		 		February 20, 2011, subject to extension if the scheduled Determination Date or final Determination Date, as applicable, is postponed in accordance with the definition thereof.

If the Determination Date or final Determination Date, as applicable, is postponed so that it falls less than two scheduled Trading Days prior to the scheduled Maturity Date, the Maturity Date shall be the second scheduled
Trading Day following the Determination Date or final Determination Date, as applicable, as postponed. See the definition of Determination Date below.

In the event that the Maturity Date of this Note
    is postponed due to a postponement of the Determination Date or final Determination
    Date, as applicable, as described above, the Issuer shall give notice of
    such postponement and, once it has been determined, of the date to which
    the Maturity Date has been rescheduled (i) to the holder of this Note by
    mailing notice of such postponement by first class mail, postage prepaid,
    to the holder’s last address as it shall
appear upon the registry books, (ii) to the Trustee by telephone or facsimile confirmed by mailing such notice to the Trustee by first class mail, postage prepaid, at its New York office and (iii) to The Depository Trust Company (the
“Depositary”) by telephone or facsimile confirmed by mailing such notice
to the Depositary by first class mail, postage prepaid. Any notice that is mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the holder of this Note receives the notice. The Issuer
shall give such notice as promptly as possible, and in no case later than (i)
with respect to notice of postponement of the Maturity Date, the Business Day
immediately following the scheduled Determination
	

  3

	 		 		Date or final Determination Date, as applicable, and (ii) with respect to notice of the date to which Maturity Date has been rescheduled, the Business Day immediately following the scheduled
Determination Date or the final Determination Date, as applicable, as postponed.
	
	 	 	 
	Basket Indices
		 		The Basket Indices (also
	      referred to as the “Underlying Indices”) and their respective
    Price Sources, Weightings and Multipliers are set forth in the table below.
	

	 	
      Basket Indices 	  	
      Bloomberg Page 	  	
      Weighting 	  	
      Multiplier 
	 	
      Dow Jones EURO STOXX 50 SM Index:	  	
      SX5E 	  	
      33.3333% 	  	  
	 	
      S&P 500® Index: 	  	
      SPX 	  	
      33.3333% 	  	  
	 	
      Nikkei 225® Index: 	  	
      NKY 	  	
      33.3333% 	  	  

	 		 		References to Basket
	      Indices shall include any Successor Indices (as defined under “Discontinuance of any Underlying Index; Alteration of Method of Calculation” below),
    unless the context requires otherwise.
	
	 	 	 
	Underlying Index Publishers
		 		For the S&P 500 Index, Standard & Poor’s® Corporation, for the Dow Jones EURO STOXX 50 Index, STOXX Limited, and for the
Nikkei 225 Index, Nikkei Inc.
	
	 	 	 
	Payment at Maturity
		 		At maturity, upon delivery of this Note to the Trustee, the Issuer shall pay with respect to each Stated Principal Amount of this Note an amount in cash equal to the Stated Principal Amount of this Note
plus the Supplemental Redemption Amount, if any.

The Issuer shall, or shall cause the Calculation Agent to, (i) provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, and to the Depositary of the Payment at Maturity on
or prior to 10:30 a.m. on the Trading Day preceding the Maturity Date (but if such Trading Day is not a Business Day, prior to the close of business on the Business Day preceding the Maturity Date) and (ii) deliver the aggregate cash amount due with
respect to this Note to the Trustee for
	

  4

	 		 		delivery to the holder of this Note on the Maturity Date.
	
	 	 	 
	Supplemental Redemption	 	 
	Amount
	 		The Supplemental Redemption Amount shall be equal to (i) the Stated Principal Amount times (ii) the Participation Rate times (iii) the Index Percent Change; provided that the Supplemental Redemption Amount shall not be less than zero.

The Calculation Agent shall calculate the supplemental
    redemption amount for this Note on the Determination Date, or, in the case
    of multiple Determination Dates, on the final Determination Date. The Issuer
    shall, or shall cause the Calculation Agent to provide written notice to
    the Trustee at its New York office, on which notice the Trustee may conclusively
    rely, and to the Depositary of the Supplemental Redemption Amount and the
    Payment at Maturity, on or prior to 10:30 a.m. on the Trading Day preceding
    the Maturity Date (but if such Trading day is not a Business Day, prior to
    the close of business on the Business Day preceding the Maturity Date) See “Discontinuance of a Basket Index; Alteration of
Method of Calculation” below.
	
	 	 	 
	Participation Rate

Index Percent Change
		 		%

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

	 	
      Final Index Value – Initial Index Value 	 
	 	

		 
	 	
      Initial Index Value 	 

	Final Index Value
		 		1. For a Note with a single Determination Date:

The Final Index Value for the basket of indices shall be the Basket Closing Value on the Determination Date or the final Determination Date, as applicable.

2. For a Note with multiple Determination Dates:
	

  5

			 		The arithmetic average
	      of the Index Closing Values or Basket Closing Values, as applicable, of
	      the Underlying Indices on the Determination Dates as calculated by the
	      Calculation Agent (the “Final
Average Index Value”).

The Calculation Agent will take into account Market
    Disruption Events and non-Index Business Days in any calculation of the Final
    Index Value or Final Average Index Value, as described under “Determination Date”
below.
	
	 	 	 
	Initial Index Value	 	 
	 	 	 
	Basket Closing Value
	 		On any date is the sum
	      of the products of the Index Closing Value of each of the Basket Indices
	      and the applicable multiplier for each of the Basket Indices, specified
	      above under “Basket
Indices”. In certain circumstances, the Basket Closing Value shall be based on the alternate calculation of the Basket Indices described under “Discontinuance
of any Underlying Index; Alteration of Method of Calculation.”
	
	 	 	 
	Index Closing Value of each	 	 
	Basket Index
	 		On any Index Business
	      Day for the relevant Basket Index, the closing value of the Basket Index,
	      or any Successor Index (as defined under “Discontinuance of any Underlying Index; Alteration of
Method of Calculation” below) published at the regular weekday close of trading on that Index Business Day in the specified Price Source. In certain circumstances, the Index Closing Value shall be based on the alternate calculation of the
Basket Index as described under “Discontinuance of any Underlying Index;
Alteration of Method of Calculation.”

In this Note, references to a Basket Index shall include any Successor Index of such Basket Index, unless the context requires otherwise.
	
	 	 	 
	Price Source
		 		Price Source means, with
	      respect to each Basket Index, the display page for such Basket Index,
	      or any successor page, specified under “Basket Indices” above,
	      which shall be used by the Calculation Agent to determine the Index Closing
    Value of each Basket
	

  6

	 		 		Index. If such service or any successor service no longer displays the Index Closing Value of any Basket Index, then the Calculation Agent shall designate an alternate source of such Index Closing
Value, which shall be the Underlying Index Publisher of such index, unless the Calculation Agent, in its sole discretion, determines that an alternate service has become the market standard for transactions related to such index.
	
	 	 	 
	Determination Date
		 		The Determination Date shall be February 16, 2011, subject to adjustment for non-Index Business Days or Market Disruption Events with respect to a Basket Index as described in the following
paragraph.

If any scheduled Determination Date is not an Index Business Day with respect to any Basket Index, such Determination Date for that Basket Index shall be the immediately succeeding Index Business Day for that Basket Index. If a
Market Disruption Event with respect to a Basket Index occurs on any scheduled Determination Date, the Basket Closing Value solely with respect to such affected Basket Index shall be determined on the immediately succeeding Index Business Day on
which no Market Disruption Event shall have occurred with respect to such affected Basket Index, and the Basket Closing Value shall be determined on the later of such date as so postponed and the date on which the Index Closing Value for each of the
Basket Indices is available; provided that the Final Index Value or Final Average Index Value, as applicable, shall not be determined on a date later than the fifth scheduled Index Business
Day after the scheduled Determination Date or final Determination Date, as applicable, and if such date is not an Index Business Day, or if there is a Market Disruption Event on such date, the Calculation Agent shall determine the Final Index Value
or the Final Average Index Value, as applicable, using the Index Closing Value of the affected Basket Index as determined by the Calculation Agent in accordance with the formula for calculating such index last in effect prior to the commencement of
the Market Disruption Event (or prior to the non-Index Business Day), without rebalancing or substitution, using the closing price (or, if trading in the relevant
	

  7

	 		 		securities has been materially suspended or materially limited, its good faith estimate of the closing price that would have prevailed but for such suspension, limitation or non-Index Business Day) on
such date of each security most recently constituting the affected Basket Index.
	
	 	 	 
	Trading Day
		 		Trading Day means a day,
	      as determined by the Calculation Agent, on which trading is generally
	      conducted on the New York Stock Exchange LLC (“NYSE”), the American
	      Stock Exchange LLC, The NASDAQ Stock Market LLC, the Chicago Mercantile
	      Exchange and the Chicago Board of Options Exchange and in the over-the-counter
    market for equity securities in the United States.
	
	 	 	 
	Index Business Day
		 		Index Business Day means a day, for each Basket Index separately, as determined by the Calculation Agent, on which trading is generally conducted on each of the Relevant Exchange(s) for such Basket
Index, other than a day on which trading on such exchange(s) is scheduled to close prior to the time of the posting of its regular final weekday closing price.
	
	 	 	 
	Market Disruption Event
		 		Market Disruption Event means, with respect to any Basket Index, the occurrence or existence of any of the following events, as determined by the Calculation Agent in its sole discretion:

(i) (a) a suspension, absence or material limitation of trading of stocks then constituting 20 percent or more of the value of such Basket Index (or the Successor Index) on the Relevant Exchange(s) for such securities for more
than two hours of trading or during the one- half hour period preceding the close of the principal trading session on such Relevant Exchange(s); or

(b) a breakdown or failure in the price and trade reporting systems of any Relevant Exchange as a result of which the reported trading prices for stocks then constituting 20 percent or more of the value of such Basket Index (or
the Successor Index) during the last one-half hour preceding the close of the principal trading session on such Relevant Exchange are materially inaccurate; or
	

  8

			 		(c) the suspension, material limitation or absence of trading on any major U.S. securities market for trading in futures or options contracts or exchange traded funds related to such Basket Index (or
the Successor Index) for more than two hours of trading or during the one-half hour period preceding the close of the principal trading session on such market; 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 the Issuer or the ability of any of its affiliates to unwind or adjust all
or a material portion of the hedge with respect to this Note, provided that
this clause (ii) shall not apply to this Note if it is listed on a securities
exchange, unless otherwise noted under “Listed or not Listed” above.

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

For the purpose of determining whether a Market Disruption Event has occurred: (1) a limitation on the hours or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in
the regular business hours of the Relevant Exchange(s) or market, (2) a decision to permanently discontinue trading in the relevant futures or options contract or exchange traded fund will not constitute a Market Disruption Event, (3) limitations
pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80A (or any applicable rule or regulation enacted or promulgated by any other self- regulatory organization or any government agency of scope similar to NYSE Rule 80A as determined
by the Calculation Agent) on trading during significant market fluctuations will constitute a suspension, absence or material limitation of trading, (4) a
	

  9

	 		 		suspension of trading
	      in futures or options contracts or exchange traded funds on any Basket
	      Index by the primary securities market trading in such contracts or funds
	      by reason of (a) a price change exceeding limits set by such securities
	      exchange or market, (b) an imbalance of orders relating to such contracts
	      or funds, or (c) a disparity in bid and ask quotes relating to such contracts
	      or funds will constitute a suspension, absence or material limitation
	      of trading in futures or options contracts or exchange traded funds related
	      to such Basket Index and (5) a “suspension, absence or material limitation of trading” on
	      any Relevant Exchange or on the primary market on which futures or options
	      contracts or exchange traded funds related to any Basket Index are traded
	      will not include any time when such securities market is itself closed
    for trading under ordinary circumstances.
	
	 	 	 
	Relevant Exchange
		 		Relevant Exchange means with respect to each Basket Index separately, the primary exchange(s) or market(s) of trading for (i) any security then included in such Basket Index, or any Successor Index, and
(ii) any futures or options contracts related to such Basket Index or to any security then included in such Basket Index.
	
	 	 	 
	Alternate Exchange Calculation	 	 
	in Case of an Event of Default
	 		If an event of default
	      with respect to this Note shall have occurred and be continuing, the Calculation
	      Agent shall determine the amount declared due and payable for each Stated
	      Principal Amount of this Note upon any acceleration of this Note (the “Acceleration Amount”),
	      which shall be equal to the Stated Principal Amount, plus the Supplemental
	      Redemption Amount, if any, determined as though the Index Closing Value
	      for any Determination Date scheduled to occur on or after the date of
	      such acceleration were the Index Closing Value on the date of acceleration.

If the maturity of this Note is accelerated because of an event of default as described above, the Issuer shall, or shall cause the Calculation Agent to, provide written notice to the Trustee at its New York office, on which
notice the Trustee may conclusively rely, and to the Depositary of the Acceleration Amount due with
	

  10

	 		 		respect to this Note as promptly as possible and in no event later than two Business Days after the date of such acceleration.
	
	 	 	 
	Calculation Agent
		 		Morgan Stanley & Co. Incorporated and its successors (“MS & Co.”)

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

All calculations with respect to this Note shall
    be made by the Calculation Agent and shall be rounded to the nearest one
    billionth, with five ten-billionths rounded upward (e.g., .9876543215 would
    be rounded to.987654322);
    all dollar amounts related to determination
    of the amount of cash payable per each Stated Principal Amount of this Note
    shall be rounded to the nearest ten-thousandth, with five one hundred- thousandths
    rounded upward (e.g., .76545 would be rounded up to .7655); and all dollar
    amounts paid on the aggregate principal amount of this Note shall be rounded
    to the nearest cent, with one-half cent rounded upward.
	
	 	 	 
	Discontinuance of any Underlying Index; Alteration of
    Method of	 	 
	Calculation 	 		 If
an Underlying Index Publisher discontinues publication of a Basket Index and
such Underlying Index Publisher or another entity (including MS & Co.) publishes
a successor or substitute index that MS & Co., as the Calculation Agent,
determines, in its sole discretion, to be comparable to the discontinued Basket
Index (such index being referred to herein as a “Successor Index”),
then any subsequent Index Closing Value shall be determined by reference to the
published value of such Successor Index at the regular weekday close of trading
on any Index Business Day that the Index Closing Value is to be determined.
	
	 	 	 
	 
	 		Upon any selection by the Calculation Agent of a Successor Index, the Calculation Agent shall cause written notice thereof to be furnished to the Trustee, to

  11

			 		the Issuer and to the Depositary, as holder of this Note, within three Trading Days of such selection.

If an Underlying Index Publisher discontinues
    publication of a Basket Index prior to, and such discontinuance is continuing
    on, any Determination Date or the date of acceleration and MS & Co.,
    as the Calculation Agent, determines, in its sole discretion, that no Successor
    Index is available at such time, then the Calculation Agent shall determine
    the Index Closing Value and/or Basket Closing Value for such Determination
    Date or date of acceleration. The Index Closing Value shall be computed by
    the Calculation Agent in accordance with the formula for and method of calculating
    the Basket Index last in effect prior to such discontinuance, using the closing
    price (or, if trading in the relevant securities has been materially suspended
    or materially limited, its good faith estimate of the closing price that
    would have prevailed but for such suspension or limitation) at the close
    of the principal trading session of the Relevant Exchange on such Determination
    Date or date of acceleration of each security most recently constituting
    such Basket Index without any rebalancing or substitution of such securities
    following such discontinuance.

If at any time the method of calculating a Basket
    Index or Successor Index, or the value thereof, is changed in a material
    respect, or if the Basket Index or Successor Index is in any other way modified
    so that such index does not, in the opinion of MS & Co., as the Calculation
    Agent, fairly represent the value of such index had such changes or modifications
    not been made, then, from and after such time, the Calculation Agent shall,
    at the close of business in New York City on each date on which the Index
    Closing Value and/or Basket Closing Value is to be determined, make such
    calculations and adjustments as, in the good faith judgment of the Calculation
    Agent, may be necessary in order to arrive at a value of a stock index comparable
    to the Basket Index or Successor Index, as the case may be, as if such changes
    or modifications had not been made, and the Calculation Agent shall calculate
    the Final Index Value or Final Average Index
	

  12

	 		 		Value, as applicable, with reference to the Basket Index or Successor Index, as adjusted. Accordingly, if the method of calculating the Basket Index or Successor Index is modified so that the value of
such index is a fraction of what it would have been if it had not been modified (e.g., due to a split in the index), then the Calculation Agent shall adjust such index in order to arrive at
a value of the Basket Index or Successor Index as if it had not been modified (e.g., as if such split had not occurred).
	

  13

       Morgan Stanley,
  a Delaware corporation (together with its successors and assigns, the “Issuer”), for value received, hereby promises to pay to CEDE & CO., or registered assignees, the
amount of cash, as determined in accordance with the provisions set forth under “Payment 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 the maturity) and to pay interest thereon from and including the Interest
Accrual Date specified above at a rate per annum equal to the Initial Interest
Rate specified above or determined in accordance with the provisions specified
on the reverse hereof until the Initial Interest Reset Date specified above,
and thereafter at a rate per annum determined in accordance with the provisions
specified on the reverse hereof until the principal hereof is paid or duly made
available for payment. Unless such rate is otherwise specified on the face hereof,
the Calculation Agent shall determine the Initial Interest Rate for this Note
in accordance with the provisions specified on the reverse hereof. The Issuer
will pay interest in arrears weekly, monthly, quarterly, semiannually or annually
as specified above as the Interest Payment Period on each Interest Payment Date
(as specified above), commencing with the first Interest Payment Date next succeeding
the Interest Accrual Date specified above, and on the Maturity Date (or 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 an Interest Payment Date (other than the Maturity Date or redemption or repayment date) would fall on a day that is not a
Business Day, as defined on the reverse hereof, such Interest Payment Date shall be the following day that is a Business Day, except that if the Base Rate specified above is LIBOR or EURIBOR and such next Business Day falls in the next calendar
month, such Interest Payment Date shall be the immediately preceding day that is a Business Day; and provided, further, that if the Maturity Date or redemption or repayment date would fall
on a day that is not a Business Day, such payment shall be made on the following day that is a Business Day and no interest shall accrue for the period from and after such Maturity Date or redemption or repayment date.

       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) (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.

       Payment of the principal of and premium, if any, and interest on this Note 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

  14

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

       If this Note is denominated in a Specified Currency other than U.S. dollars, and the holder does not elect (in whole or in part) to receive payment in U.S. dollars pursuant to the next succeeding
paragraph, payments of principal, premium, if any, and interest 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

  15

  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 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.

  16

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

	DATED:	MORGAN STANLEY
	 	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

	TRUSTEE’S CERTIFICATE 
	      OF
        AUTHENTICATION 
	 
	This is one of the Notes referred 
	      to
        in the within-mentioned 
	      Senior
        Indenture.
	 
	THE BANK OF NEW YORK, as 
	      Trustee 
	 	 	 
	 	 	 
	 	 	 
	By:	 
	 	

	 	Authorized Signatory 

  17

  REVERSE OF SECURITY

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

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

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

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

  18

  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. 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.

       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, 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.

  19

       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;

  20

       (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.

       This Note will
  bear interest at the rate determined in accordance with the applicable provisions
  below by reference to the Base Rate shown on the face hereof based on the Index
  Maturity, if any, shown on the face hereof (i) plus or minus the Spread, if
  any, and/or (ii) multiplied by the Spread Multiplier, if any, specified on
  the face hereof. Commencing with the Initial Interest Reset Date specified
  on the face hereof, the rate at which interest on this Note is payable shall
  be reset as of each Interest Reset Date specified on the face hereof (as used
  herein, the term “Interest Reset Date” shall include the Initial
Interest Reset Date). For the purpose of determining the Initial Interest Rate, references in this paragraph, the next succeeding paragraph and, if applicable, clauses (i) and (ii) under “Determination of EURIBOR” below
to Interest Reset Date shall be deemed to mean the Original Issue Date. The determination
of the rate of interest at which this Note will be reset on any Interest Reset
Date shall be made on the Interest Determination Date (as defined below) pertaining
to such Interest Reset Dates. The Interest Reset Dates will be the Interest Reset
Dates specified on the face hereof; provided, however,
that (a) the interest rate in effect for the period from the Interest Accrual
Date to the Initial Interest Reset Date will be the Initial Interest Rate and
(b) unless otherwise specified on the face hereof, the interest rate in effect
for the ten calendar days immediately prior to maturity, redemption or repayment
will be that in effect on the tenth calendar day preceding such maturity, redemption
or repayment date. If any Interest Reset Date would otherwise be a day that is
not a Business Day, such Interest Reset Date shall be postponed to the next succeeding
day that is a Business Day, except that if the Base Rate specified on the face
hereof is LIBOR or EURIBOR and such Business Day is in the next succeeding calendar
month, such Interest Reset Date shall be the immediately preceding Business Day.
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 

  21

  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”).

       The Interest
  Determination Date pertaining to an Interest Reset Date for Notes bearing interest
  calculated by reference to the Federal Funds Rate, Federal Funds (Open) Rate
  and Prime Rate shall be on the Business Day prior to the Interest Reset Date.
  The Interest Determination Date pertaining to an Interest Reset Date for Notes
  bearing interest calculated by reference to the CD Rate, Commercial Paper Rate
  and CMT Rate will be the second Business Day prior to such Interest Reset Date.
  The Interest Determination Date pertaining to an Interest Reset Date for Notes
  bearing interest calculated by reference to EURIBOR (or to LIBOR when the Index
  Currency is euros) shall be the second TARGET Settlement Day prior such Interest
  Reset Date. The Interest Determination Date pertaining to an Interest Reset
  Date for Notes bearing interest calculated by reference to LIBOR (other than
  for LIBOR Notes for which the Index Currency is euros) shall be the second
  London Banking Day prior such Interest Reset Date, except that the Interest
  Determination Date pertaining to an Interest Reset Date for a LIBOR Note for
  which the Index Currency is pounds sterling will be such Interest Reset Date.
  As used herein, “London Banking Day” means any day on which
  dealings in deposits in the Index Currency (as defined herein) are transacted
  in the London interbank market. The Interest Determination Date pertaining
  to an Interest Reset Date for Notes bearing interest calculated by reference
  to the Treasury Rate shall be the day of the week in which such Interest Reset
  Date falls on which Treasury bills normally would be auctioned. Treasury Bills
  are normally sold at auction on Monday of each week, unless that day is a legal
  holiday, in which case the auction is normally held on the following Tuesday,
  except that the auction may be held on the preceding Friday; provided, however, that if an auction is held on the Friday of the week preceding such Interest Reset Date, the Interest Determination Date shall
be such preceding Friday; and provided, further, that if an auction shall fall on any Interest Reset Date, then the Interest Reset
Date shall instead be the first Business Day following the date of such auction. The Interest Determination Date pertaining to an Interest Reset Date for Notes bearing interest calculated by reference to two or more base rates will be the latest
Business Day that is at least two Business Days before the Interest Reset Date for the applicable Note on which each base rate is determinable.

       Unless otherwise
  specified on the face hereof, the “Calculation Date” pertaining
  to an Interest Determination Date, including the Interest Determination Date
  as of which the Initial Interest Rate is determined, will be the earlier of
  (i) the tenth calendar day after such Interest Determination Date or, if such
  day is not a Business Day, the next succeeding Business Day, or (ii) the Business
  Day immediately preceding the applicable Interest Payment Date or Maturity
  Date (or, with respect to any principal amount to be redeemed or repaid, any
redemption or repayment date), as the case may be.

       Determination of CD Rate. If
  the Base Rate specified on the face hereof is the “CD Rate,” for
  any Interest Determination Date, the CD Rate with respect to this Note shall
be the rate on 

  22

  that date for negotiable U.S. dollar certificates
  of deposit having the Index Maturity specified on the face hereof as published
  by the Board of Governors of the Federal Reserve System in “Statistical Release H.15(519),
Selected Interest Rates,” or any successor publication of the Board of Governors
of the Federal Reserve System (“H.15(519)”) under the heading “CDs
(Secondary Market).”

      The following procedures shall be followed
    if the CD Rate cannot be determined as described above: 

     (i)
      If the above rate is not published in H.15(519) by 3:00 p.m., New York
      City time, on the Calculation Date, the CD Rate shall be the rate on that
      Interest Determination Date set forth in the daily update of H.15(519),
      available through the world wide website of the Board of Governors of the
      Federal Reserve System at http://www.federalreserve.gov/releases/h15/update,
  or any successor site or publication (“H.15 Daily Update”) for the Interest Determination Date for certificates of deposit having the Index Maturity specified on the face hereof, under
    the caption “CDs (Secondary Market).” 

     (ii) If the above rate is not yet published
    in either H.15(519) or the H.15 Daily Update by 3:00 p.m., New York City
    time, on the Calculation Date, the Calculation Agent shall determine the
    CD Rate to be the arithmetic mean of the secondary market offered rates as
    of 10:00 a.m., New York City time, on that Interest Determination Date of
    three leading nonbank dealers in negotiable U.S. dollar certificates of deposit
    in The City of New York, which may include the initial dealer and its affiliates,
    selected by the Calculation Agent (after consultation with the Issuer), for
    negotiable U.S. dollar certificates of deposit of major U.S. money center
    banks of the highest credit standing in the market for negotiable certificates
    of deposit with a remaining maturity closest to the Index Maturity specified
    on the face hereof in an amount that is representative for a single transaction
    in that market at that time.

       “Initial dealer” with respect to this Note means either Morgan Stanley & Co.
Incorporated or Morgan Stanley DW Inc., as applicable.

       (iii) If the dealers selected by the Calculation Agent are not quoting as set forth above, the CD Rate for that Interest Determination Date shall remain the CD Rate for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       Determination of Commercial Paper Rate. If
  the Base Rate specified on the face hereof is the “Commercial Paper Rate,” for any Interest Determination Date, the Commercial Paper Rate with respect to this Note shall be the Money Market Yield (as defined herein), calculated as described below, of the rate on that date for U.S. dollar commercial
paper having the Index Maturity specified on the face hereof, as that rate is published in H.15(519), under the heading “Commercial
Paper Nonfinancial.” 

     The following procedures shall be followed if the Commercial Paper
    Rate cannot be determined as described above:

  23

       (i) If the
  above rate is not published by 3:00 p.m., New York City time, on the Calculation
  Date, then the Commercial Paper Rate shall be the Money Market Yield of the
  rate on that Interest Determination Date for commercial paper of the Index
  Maturity specified on the face hereof as published in the H.15 Daily Update,
  or other recognized electronic source used for the purpose of displaying the
  applicable rate, under the heading
“Commercial Paper Nonfinancial.” 

     (ii) If by 3:00 p.m., New York
  City time, on that Calculation Date the rate is not yet published in either
  H.15(519) or the H.15 Daily Update, or other recognized electronic source
  used for the purpose of displaying the applicable rate, then the Calculation
  Agent shall determine the Commercial Paper Rate to be the Money Market
  Yield of the arithmetic mean of the offered rates as of 11:00 a.m., New
  York City time, on that Interest Determination Date of three leading dealers
  of U.S. dollar commercial paper in The City of New York, which may include
  the initial dealer and its affiliates, selected by the Calculation Agent
  (after consultation with the Issuer), for commercial paper of the Index
  Maturity specified on the face hereof, placed for an industrial issuer
  whose bond rating is “Aa,” or
  the equivalent, from a nationally recognized statistical rating agency.

       (iii) If the dealers selected by the Calculation Agent are not quoting as set forth in (ii) above, the Commercial Paper Rate for that Interest Determination Date shall remain the Commercial Paper Rate
for the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       The “Money Market Yield” shall
be a yield calculated in accordance with the following formula:

	 	 		 		
      D x 360 	 		 	
	 	
      Money Market Yield = 	 		
	 		
      x 100 
	 	 		 		
      360– (D x M) 	 		 	

  where “D” refers to the applicable per year rate for commercial paper quoted on a bank discount basis and expressed as a decimal and “M” refers
  to the actual number of days in the interest period for which interest is being
calculated.

       Determination of EURIBOR. If
  the Base Rate specified on the face hereof is “EURIBOR,” for
  any Interest Determination Date, EURIBOR with respect to this Note shall be
  the rate for deposits in euros as sponsored, calculated and published jointly
  by the European Banking Federation and ACI - The Financial Market Association,
  or any company established by the joint sponsors for purposes of compiling
  and publishing those rates, for the Index Maturity specified on the face hereof
  as that rate appears on the display on Moneyline Telerate, or any successor
  service, on page 248 or any other page as may replace page 248 on that service
(“Telerate Page 248”) as of 11:00 a.m., Brussels time.

       The following procedures shall be followed if the rate cannot be determined as described above:

  24

       (i) If the
  above rate does not appear, the Calculation Agent shall request the principal
  Euro-zone office of each of four major banks in the Euro-zone interbank market,
  as selected by the Calculation Agent (after consultation with the Issuer),
  to provide the Calculation Agent with its offered rate for deposits in euros,
  at approximately 11:00 a.m., Brussels time, on the Interest Determination Date,
  to prime banks in the Euro-zone interbank market for the Index Maturity specified
  on the face hereof commencing on the applicable Interest Reset Date, and in
  a principal amount not less than the equivalent of U.S.$1 million in euro
  that is representative of a single transaction in euro, in that market at that
  time. If at least two quotations are provided, EURIBOR shall be the arithmetic
mean of those quotations.

       (ii) If fewer
  than two quotations are provided, EURIBOR shall be the arithmetic mean of the
  rates quoted by four major banks in the Euro-zone interbank market, as selected
  by the Calculation Agent (after consultation with the Issuer), at approximately
  11:00 a.m., Brussels time, on the applicable Interest Reset Date for loans
  in euro to leading European banks for a period of time equivalent to the Index
  Maturity specified on the face hereof commencing on that Interest Reset Date
  in a principal amount not less than the equivalent of U.S.$1 million in
euro.

       (iii) If the banks so selected by the Calculation Agent are not quoting as set forth above, the EURIBOR rate for that Interest Determination Date shall remain the EURIBOR for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       “Euro-zone” means
  the region comprised of member states of the European Union that adopt the
  single currency in accordance with the relevant treaty of the European Union,
as amended.

       Determination of the Federal Funds Rate. If
  the Base Rate specified on the face hereof is the “Federal Funds Rate,” for any Interest Determination Date, the Federal Funds Rate with respect to this Note shall be the rate on that date for U.S. dollar federal funds as published in H.15(519) under the heading “Federal Funds (Effective)”
as displayed on Moneyline Telerate, or any successor service, on page 120 or
any other page as may replace page 120 on that service (“Telerate Page 120”).

       The following procedures shall be followed if the Federal Funds Rate cannot be determined as described above: 

     (i)
      If the above rate is not published by 3:00 p.m., New York City time, on
      the Calculation Date, the Federal Funds Rate shall be the rate on that
      Interest Determination Date as published in the H.15 Daily Update, or other
      recognized electronic source used for the purpose of displaying the applicable
      rate, under the heading
  “Federal Funds (Effective).” 

     (ii) If the above rate is not yet published
    in either H.15(519) or the H.15 Daily Update, or other recognized electronic
    source used for the purpose of displaying the applicable rate, by 3:00 p.m.,
    New York City time, on the Calculation Date, the Calculation Agent shall
    determine the Federal Funds Rate to be the arithmetic mean of the rates for
    the last transaction in overnight U.S. dollar federal funds prior to 9:00
    a.m., New York City time, on that Interest Determination 

  25

  Date, by each of three leading brokers of U.S. dollar federal funds transactions in The City of New York, which may include the initial dealer and its affiliates, selected by the Calculation Agent (after consultation with the
Issuer).

       (iii) If the brokers selected by the Calculation Agent are not quoting as set forth in (ii) above, the Federal Funds Rate for that Interest Determination Date shall remain the Federal Funds Rate for
the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       Determination of Federal Funds (Open) Rate.
  If the Base Rate specified on the face hereof is the “Federal Funds (Open)
Rate”, for any Interest Determination Date, the Federal Funds (Open) Rate with respect to this Note shall be the rate on that date for U.S. dollar federal funds as published in H.15(519) under the heading
“Federal Funds (Open)” as displayed on Moneyline Telerate, or any successor
service, on page 5 or any other page as may replace page 5 on that service, (“Telerate Page 5”).

       The following procedures shall be followed if the Federal Funds (Open) Rate cannot be determined as described above:

	
  If the above rate is not published by 3:00 p.m., New York City time, on the Calculation Date, the Federal Funds (Open) Rate will be the rate on that Interest Determination Date
as published in the H.15 Daily Update, or other recognized electronic source used for the purpose of displaying the applicable rate, under the heading “Federal
Funds (Open).”

	
  If the above rate is not yet published in either H.15(519) or the H.15 Daily Update, or other recognized electronic source used for the purpose of displaying the applicable rate,
by 3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent will determine the Federal Funds (Open) Rate to be the arithmetic mean of the rates for the last transaction in
overnight U.S. dollar federal funds (based on the Federal Funds (Open) Rate) prior to 9:00 a.m., New York City time, on that Interest Determination Date, by each of three leading brokers of U.S.
dollar federal funds transactions in the City of New York, which may include the agent and its affiliates, selected by the Calculation Agent, after consultation with the Issuer.

	
  If the brokers selected by the Calculation Agent are not quoting as set forth above, the Federal Funds (Open) Rate for that Interest Determination Date shall remain the Federal
Funds (Open) Rate for the immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable will be the Initial Interest Rate.

       Determination of LIBOR. If
  the Base Rate specified on the face hereof is “LIBOR,” LIBOR
  with respect to this Note shall be based on London Interbank Offered Rate.
  The Calculation Agent shall determine LIBOR for each Interest Determination
Date as follows:

  26

       (i) As of the
  Interest Determination Date, LIBOR shall be either (a) if “LIBOR Reuters” is
  specified as the Reporting Service on the face hereof, the arithmetic mean
  of the offered rates for deposits in the Index Currency having the Index Maturity
  designated on the face hereof, commencing on the second London Banking Day
  immediately following that Interest Determination Date, that appear on the
  Designated LIBOR Page, as defined below, as of 11:00 a.m., London time, on
  that Interest Determination Date, if at least two offered rates appear on the
  Designated LIBOR Page; except that if the specified Designated LIBOR Page,
  by its terms provides only for a single rate, that single rate shall be used;
  or (b) if “LIBOR Telerate” is specified as the Reporting Service
  on the face hereof, the rate for deposits in the Index Currency having the
  Index Maturity designated on the face hereof, commencing on the second London
  Banking Day immediately following that Interest Determination Date or, if pounds
  sterling is the Index Currency, commencing on that Interest Determination Date,
  that appears on the Designated LIBOR Page at approximately 11:00 a.m., London
time, on that Interest Determination Date. 

       (ii) If (a) fewer than two offered rates appear and LIBOR Reuters is specified on the face hereof, or (b) no rate appears and the face hereof specifies either (x) LIBOR Telerate or (y) LIBOR Reuters
and the Designated LIBOR Page by its terms provides only for a single rate, then the Calculation Agent shall request the principal London offices of each of four major reference banks in the London interbank market, as selected by the Calculation
Agent (after consultation with the Issuer), to provide the Calculation Agent with its offered quotation for deposits in the Index Currency for the period of the Index Maturity specified on the face hereof commencing on the second London Banking Day
immediately following the Interest Determination Date or, if pounds sterling is the Index Currency, commencing on that Interest Determination Date, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that
Interest Determination Date and in a principal amount that is representative of a single transaction in that Index Currency in that market at that time.

       (iii) If at least two quotations are provided, LIBOR determined on that Interest Determination Date shall be the arithmetic mean of those quotations. If fewer than two quotations are provided, LIBOR
shall be determined for the applicable Interest Reset Date as the arithmetic mean of the rates quoted at approximately 11:00 a.m., London time, or some other time specified on the face hereof, in the applicable principal financial center for the
country of the Index Currency on that Interest Reset Date, by three major banks in that principal financial center selected by the Calculation Agent (after consultation with the Issuer) for loans in the Index Currency to leading European banks,
having the Index Maturity specified on the face hereof and in a principal amount that is representative of a single transaction in that Index Currency in that market at that time. 

       (iv) If the banks so selected by the Calculation Agent are not quoting as set forth above, the LIBOR rate for that Interest Determination Date shall remain the LIBOR for the immediately preceding
Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

  27

       The “Index Currency” means
  the currency specified on the face hereof as the currency for which LIBOR shall
  be calculated, or, if the euro is substituted for that currency, the Index
  Currency shall be the euro. If that currency is not specified on the face hereof,
the Index Currency shall be U.S. dollars.

       “Designated LIBOR Page” means
  either: (a) if LIBOR Reuters is designated as the Reporting Service on the
  face hereof, the display on the Reuters Money 3000 Service for the purpose
  of displaying the London interbank rates of major banks for the applicable
  Index Currency or its designated successor, or (b) if LIBOR Telerate is designated
  as the Reporting Service on the face hereof, the display on Moneyline Telerate,
  or any successor service, on the page specified on the face hereof, or any
  other page as may replace that page on that service, for the purpose of displaying
the London interbank rates of major banks for the applicable Index Currency.

       If neither LIBOR Reuters nor LIBOR Telerate is specified on the face hereof, LIBOR for the applicable Index Currency shall be determined as if LIBOR Telerate were specified, and, if the U.S. dollar is
the Index Currency, as if Page 3750 had been specified.

       Determination of Prime Rate. If
  the Base Rate specified on the face hereof is “Prime Rate,” for
any Interest Determination Date, the Prime Rate with respect to this Note shall be the rate on that date as published in H.15(519) under the heading “Bank Prime Loan.” 

      The
      following procedures shall be followed if the Prime Rate cannot be determined
      as described above:

      (i)
      If the above rate is not published prior to 3:00 p.m., New York City time,
      on the Calculation Date, then the Prime Rate shall be the rate on that
      Interest Determination Date as published in the H.15 Daily Update under
      the heading “Bank Prime Loan.” 

      (ii)
      If the above rate is not published in either H.15(519) or the H.15 Daily
      Update by 3:00 p.m., New York City time, on the Calculation Date, then
      the Calculation Agent shall determine the Prime Rate to be the arithmetic
      mean of the rates of interest publicly announced by each bank that appears
      on the Reuters Screen USPRIME 1 Page, as defined below, as that bank’s
  Prime Rate or base lending rate as in effect for that Interest Determination
  Date.

       (iii) If fewer than four rates for that Interest Determination Date appear on the Reuters Screen USPRIME 1 Page by 3:00 p.m., New York City time, on the Calculation Date, the Calculation Agent shall
determine the Prime Rate to be the arithmetic mean of the Prime Rates quoted on the basis of the actual number of days in the year divided by 360 as of the close of business on that Interest Determination Date by at least three major banks in The
City of New York, which may include affiliates of the initial dealer, selected by the Calculation Agent (after consultation with the Issuer).

       (iv) If the banks selected by the Calculation Agent are not quoting as set forth above, the Prime Rate for that Interest Determination Date shall remain the Prime Rate for the immediately 

  28

  preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       “Reuters Screen USPRIME 1 Page” means the display designated as page “USPRIME 1” on
  the Reuters Money 3000 Service, or any successor service, or any other page
  as may replace the USPRIME 1 Page on that service for the purpose of displaying
prime rates or base lending rates of major U.S. banks.

       Determination of Treasury Rate. If
  the Base Rate specified on the face hereof is “Treasury Rate,”
the Treasury Rate with respect to this Note shall be 

     (i)
      the rate from the Auction held on the applicable Interest Determination
      Date (the “Auction”) of direct obligations of the
  United States (“Treasury Bills”) having the Index Maturity specified on the face hereof as that rate appears under the caption “INVESTMENT RATE” on
  the display on Moneyline Telerate, or any successor service, on page 56 or
  any other page as may replace page 56 on that service (“Telerate Page 56”)
  or page 57 or any other page as may replace page 57 on that service (“Telerate Page 57”);
  or 

     (ii)
      if the rate described in (i) above is not published by 3:00 p.m., New York
      City time, on the Calculation Date, the Bond Equivalent Yield of the rate
      for the applicable Treasury Bills as published in the H.15 Daily Update,
      or other recognized electronic source used for the purpose of displaying
      the applicable rate, under the caption “U.S. Government
  Securities/Treasury Bills/Auction High”; or 

     (iii) if the rate described in (ii) above
    is not published by 3:00 p.m., New York City time, on the related Calculation
    Date, the Bond Equivalent Yield of the Auction rate of the applicable Treasury
  Bills, announced by the United States Department of the Treasury; or 

     (iv)
  if the rate described in (iii) above is not announced by the United States
  Department of the Treasury, or if the Auction is not held, the Bond Equivalent
  Yield of the rate on the applicable Interest Determination Date of Treasury
  Bills having the Index Maturity specified on the face hereof published in
  H.15(519) under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”;
  or 

     (v)
      if the rate described in (iv) above is not so published by 3:00 p.m., New
      York City time, on the related Calculation Date, the rate on the applicable
      Interest Determination Date of the applicable Treasury Bills as published
      in the H.15 Daily Update, or other recognized electronic source used for
      the purpose of displaying the applicable rate, under the caption “U.S. Government Securities/Treasury Bills/Secondary Market”;
  or 

     (vi) if the rate described in (v) above is
    not so published by 3:00 p.m., New York City time, on the related Calculation
    Date, the rate on the applicable Interest Determination Date calculated by
    the Calculation Agent as the Bond Equivalent Yield of the arithmetic mean
    of the secondary market bid rates, as of approximately 3:30 p.m., New York
    City time, on the applicable Interest Determination Date, of three primary
    U.S. government securities dealers, which may include the

  29

initial dealer and its affiliates, selected by the Calculation Agent, for the issue of Treasury Bills with a remaining maturity closest to the Index Maturity specified on the face hereof; or 

      (vii) if
    the dealers selected by the Calculation Agent are not quoting as described
    in (vi), the Treasury Rate for the immediately preceding Interest Reset Period,
    or, if there was no Interest Reset Period, the rate of interest payable shall
    be the Initial Interest Rate.

       The “Bond Equivalent Yield” means
  a yield calculated in accordance with the following formula and expressed as
a percentage:

	 	 	 	D x N	 	 
	 	Bond Equivalent Yield
    = 	 	
	 	x 100 
	 	 	 	360– (D x M) 	 	 

  where “D” refers to the applicable per annum rate for Treasury Bills quoted on a bank discount basis, “N” refers to 365 or 366, as the case may be, and “M” refers
  to the actual number of days in the interest period for which interest is being
calculated.

       Determination of CMT Rate. If
  the Base Rate specified on the face hereof is the “CMT Rate,” for
any Interest Determination Date, the CMT Rate with respect to this Note shall be the rate displayed on the Designated CMT Telerate Page (as defined below) under the caption “... Treasury Constant Maturities ... Federal Reserve Board Release
H.15... Mondays Approximately 3:45 p.m.,” under the column for the Designated
CMT Maturity Index, as defined below, for: 

     (1) the rate on that Interest Determination
    Date, if the Designated CMT Telerate Page is 7051; and 

     (2) the week or the
  month, as applicable, ended immediately preceding the week in which the related
  Interest Determination Date occurs, if the Designated CMT Telerate Page is
  7052.

       The following procedures shall be followed if the CMT Rate cannot be determined as described above: 

     (i) If the above rate is no longer displayed
    on the relevant page, or if not displayed by 3:00 p.m., New York City time,
    on the related Calculation Date, then the CMT Rate shall be the Treasury
    Constant Maturity rate for the Designated CMT Maturity Index as published
    in the relevant H.15(519).

       (ii) If the above rate is no longer published, or if not published by 3:00 p.m., New York City time, on the related Calculation Date, then the CMT Rate shall be the Treasury Constant Maturity Rate for
the Designated CMT Maturity Index or other U.S. Treasury rate for the Designated CMT Maturity Index on the Interest Determination Date as may then be published by either the Board of Governors of the Federal Reserve System or the United States
Department of the Treasury that the Calculation Agent determines to be comparable to the rate formerly displayed on the Designated CMT Telerate Page and published in the relevant H.15(519).

  30

       (iii) If the
  information set forth above is not provided by 3:00 p.m., New York City time,
  on the related Calculation Date, then the Calculation Agent shall determine
  the CMT Rate to be a yield to maturity, based on the arithmetic mean of the
  secondary market closing offer side prices as of approximately 3:30 p.m., New
  York City time, on the Interest Determination Date, reported, according to
  their written records, by three leading primary U.S. government securities
  dealers (“Reference Dealers”) in The City of New York, which
  may include the initial dealer or its affiliates, selected by the Calculation
  Agent as described in the following sentence. The Calculation Agent shall select
  five reference dealers (after consultation with the Issuer) and shall eliminate
  the highest quotation or, in the event of equality, one of the highest, and
  the lowest quotation or, in the event of equality, one of the lowest, for the
  most recently issued direct noncallable fixed rate obligations of the United
  States (“Treasury Notes”) with an original
maturity of approximately the Designated CMT Maturity Index, a remaining term
  to maturity of no more than 1 year shorter than that Designated CMT Maturity
  Index and in a principal amount that is representative for a single transaction
  in the securities in that market at that time. If two Treasury Notes with an
  original maturity as described above have remaining terms to maturity equally
  close to the Designated CMT Maturity Index, the quotes for the Treasury Note
with the shorter remaining term to maturity shall be used.

       (iv) If the Calculation Agent cannot obtain three Treasury Notes quotations as described in (iii) above, the Calculation Agent shall determine the CMT Rate to be a yield to maturity based on the
arithmetic mean of the secondary market offer side prices as of approximately 3:30 p.m., New York City time, on the Interest Determination Date of three reference dealers in The City of New York, selected using the same method described in (iii)
above, for Treasury Notes with an original maturity equal to the number of years closest to but not less than the Designated CMT Maturity Index and a remaining term to maturity closest to the Designated CMT Maturity Index and in a principal amount
that is representative for a single transaction in the securities in that market at that time.

       (v) If three or four, and not five, of the reference dealers are quoting as described in (iv) above, then the CMT Rate for that Interest Determination Date shall be based on the arithmetic mean of the
offer prices obtained and neither the highest nor the lowest of those quotes shall be eliminated.

       (vi) If fewer than three reference dealers selected by the Calculation Agent are quoting as described in (iv) above, the CMT Rate for that Interest Determination Date shall remain the CMT Rate for the
immediately preceding Interest Reset Period, or, if there was no Interest Reset Period, the rate of interest payable shall be the Initial Interest Rate.

       “Designated CMT Telerate Page” means
  the display on Moneyline Telerate, or any successor service, on the page designated
  on the face hereof or any other page as may replace that page on that service
  for the purpose of displaying Treasury Constant Maturities as reported in H.15(519).
  If no page is specified on the face hereof, the Designated CMT Telerate Page
shall be 7052, for the most recent week.

       “Designated CMT Maturity Index” means
  the original period to maturity of the U.S. Treasury securities, which is either
1, 2, 3, 5, 7, 10, 20 or 30 years, as specified in the applicable 

  31

  pricing supplement for which the CMT Rate shall be calculated. If no maturity is specified on the face hereof, the Designated CMT Maturity Index shall be two years.

       Notwithstanding the foregoing, the interest rate hereon shall not be greater than the Maximum Interest Rate, if any, or less than the Minimum Interest Rate, if any, specified on the face hereof. The
Calculation Agent shall calculate the interest rate hereon in accordance with the foregoing on or before each Calculation Date. The interest rate on this Note will in no event be higher than the maximum rate permitted by New York law, as the same
may be modified by United States Federal law of general application.

       At the request of the holder hereof, the Calculation Agent will provide to the holder hereof the interest rate hereon then in effect and, if determined, the interest rate that will become effective as
of the next Interest Reset Date.

       Unless otherwise
  indicated on the face hereof, interest payments on this Note shall be the amount
  of interest accrued from and including the Interest Accrual Date or from and
  including the last date to which interest has been paid or duly provided for
  to but excluding the Interest Payment Dates or the Maturity Date (or any earlier
  redemption or repayment date), as the case may be. Accrued interest hereon
  shall be an amount calculated by multiplying the face amount hereof by an accrued
  interest factor. Such accrued interest factor shall be computed by adding the
  interest factor calculated for each day in the period for which interest is
  being paid. The interest factor for each such date shall be computed by dividing
  the interest rate applicable to such day (i) by 360 if the Base Rate is CD
  Rate, Commercial Paper Rate, EURIBOR, Federal Funds Rate, Federal Funds (Open)
  Rate, Prime Rate or LIBOR (except if the Index Currency is pounds sterling);
  (ii) by 365 if the Base Rate is LIBOR and the Index Currency is pounds sterling;
  or (iii) by the actual number of days in the year if the Base Rate is the Treasury
  Rate or the CMT Rate. All percentages resulting from any calculation of the
  rate of interest on this Note will be rounded, if necessary, to the nearest
  one hundred-thousandth of a percentage point with (.000005% being rounded up
  to .00001%) and all U.S. dollar amounts used in or resulting from such calculation
  on this Note will be rounded to the nearest cent, with one-half cent rounded
  upward. All Japanese Yen amounts used in or resulting from such calculations
  will be rounded downwards to the next lower whole Japanese Yen amount. All
  amounts denominated in any other currency used in or resulting from such calculations
  will be rounded to the nearest two decimal places in such currency, with .005
  being rounded up to .01. The interest rate in effect on any Interest Reset
  Date will be the applicable rate as reset on such date. The interest rate applicable
  to any other day is the interest rate from the immediately preceding Interest
Reset Date (or, if none, the Initial Interest Rate).

       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. 

  32

  $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.

       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.

  33

       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 or premium, if any, or interest on, any series of debt
securities issued under the Senior Indenture, including the series of 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.

       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, (i) extend the final maturity of any such debt security, or reduce the
principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, 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 (ii) reduce the
aforesaid percentage in principal amount of debt securities the consent of the holders of which is required for any such supplemental indenture.

       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 

  34

  within the international banking community, then
  the Issuer will be entitled to satisfy its obligations to the holder of this
  Note by making such payments in U.S. dollars on the basis of the Market Exchange
  Rate on the date of such payment or, if the Market Exchange Rate is not available
  on such date, as of the most recent practicable date; provided, however, that
  if the euro has been substituted for such Specified Currency, the Issuer may
  at its option (or shall, if so required by applicable law) without the consent
  of the holder of this Note effect the payment of principal of or 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.

       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

  35

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

       No provision of this Note or of the Senior Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and 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 or 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 non-resident alien individual, (ii) a foreign corporation,
  (iii) a non-resident alien fiduciary or a foreign estate or trust or (iv) a
  foreign partnership one or more members of which is, for U.S. federal income
  tax purposes, a non-resident alien individual, a foreign corporation or a non-resident
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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]