Document:

FORM OF FIXED RATE SENIOR NOTE

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

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

                                        1
<PAGE>

                                                 MORGAN STANLEY
                                    SENIOR GLOBAL MEDIUM-TERM NOTES, SERIES F

                                PERFORMANCE LEVERAGED UPSIDE SECURITIES ("PLUS")

                                             PLUS DUE JANUARY 30, 2006
                                             MANDATORILY EXCHANGEABLE
                                       FOR AN AMOUNT PAYABLE IN U.S. DOLLARS
                                    BASED ON THE VALUE OF THE NIKKEI 225 INDEX

<TABLE>
---------------------------------------------------------------------------------------------------------------------
<S>                           <C>                          <C>                          <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION           INTEREST RATE: None          MATURITY DATE:
                                 DATE: N/A                                                 See "Maturity Date"
                                                                                           below.
---------------------------------------------------------------------------------------------------------------------
INTEREST ACCRUAL              INITIAL REDEMPTION           INTEREST PAYMENT             OPTIONAL
   DATE: N/A                     PERCENTAGE: N/A              DATES: N/A                   REPAYMENT
                                                                                           DATE(S):  N/A
---------------------------------------------------------------------------------------------------------------------
SPECIFIED CURRENCY:           ANNUAL REDEMPTION            INTEREST PAYMENT             APPLICABILITY OF
   U.S. dollars                  PERCENTAGE                   PERIOD: N/A                  MODIFIED
                                 REDUCTION: N/A                                            PAYMENT UPON
                                                                                           ACCELERATION: See
                                                                                           "Alternate Exchange
                                                                                           Calculation in Case of
                                                                                           an Event of Default"
                                                                                           below.
---------------------------------------------------------------------------------------------------------------------
IF SPECIFIED                  REDEMPTION NOTICE            APPLICABILITY OF             If yes, state Issue Price:
   CURRENCY OTHER                PERIOD: N/A                  ANNUAL INTEREST              N/A
   THAN U.S. DOLLARS,                                         PAYMENTS: N/A
   OPTION TO ELECT
   PAYMENT IN U.S.
   DOLLARS: N/A
---------------------------------------------------------------------------------------------------------------------
EXCHANGE RATE                 TAX REDEMPTION                                            ORIGINAL YIELD TO
   AGENT: N/A                    AND PAYMENT OF                                            MATURITY: N/A
                                 ADDITIONAL
                                 AMOUNTS: N/A
---------------------------------------------------------------------------------------------------------------------
OTHER PROVISIONS:             If yes, state Initial Offering
   See below                  Date: N/A
---------------------------------------------------------------------------------------------------------------------
</TABLE>

Maturity Date...........    January 30, 2006, subject to extension in accordance
                            with the following paragraph in the event of a
                            Market Disruption Event on the scheduled Index
                            Valuation Date (as defined below).

                            If due to a Market Disruption Event or otherwise,
                            the Index Valuation Date is postponed so that it
                            falls less than two scheduled Trading Days prior to
                            the scheduled

                                        2
<PAGE>

                            Maturity Date, the Maturity Date shall be the second
                            scheduled Trading Day that is also a New York
                            Trading Day following that Index Valuation Date as
                            postponed. See "Index Valuation Date" below.

                            In the event that the Maturity Date of the PLUS is
                            postponed due to postponement of the Index Valuation
                            Date 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 March 28, 2006, 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 for determining the Final Index Value (as
                            defined below).

Denominations...........    $10 and integral multiples thereof

Payment at Maturity.....    At maturity, upon delivery of this PLUS to the
                            Trustee, the Issuer shall pay with respect to each
                            $10 principal amount of this PLUS an amount in cash
                            equal to (i) if the Final Index Value is greater
                            than the Initial Index Value (as defined below), the
                            lesser of (a) $10 plus the Leveraged Upside Payment
                            (as defined below) and (b) the Maximum Payment at
                            Maturity (as defined below) or (ii) if the Final
                            Index Value is less than or equal to the Initial
                            Index Value, $10 times the Index Performance Factor
                            (as defined below).

                                        3
<PAGE>

                            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 $10 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.

Leveraged Upside Payment... The product of (i) $10 and (ii) 200% and (iii) the
                            Index Percent Increase (as defined below).

Maximum Payment at
Maturity................... $

Index Percent Increase..... A fraction, the numerator of which shall be the
                            Final Index Value minus the Initial Index Value and
                            the denominator of which shall be the Initial Index
                            Value.

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

Final Index Value.......... The Index Closing Value of the Nikkei 225 Index on
                            the Index Valuation Date.

Index Valuation Date....... The Index Valuation Date shall be the second
                            scheduled Trading Day prior to the Maturity Date,
                            subject to adjustment for Market Disruption Events
                            as described in the following paragraph.

                            If there is a Market Disruption Event on the
                            scheduled Index Valuation Date or if the scheduled
                            Index Valuation Date is not otherwise a Trading Day,
                            the Index Valuation Date shall be the immediately
                            succeeding Trading Day during which no Market
                            Disruption Event shall have occurred.

Initial Index Value........

Index Closing Value........ The Index Closing Value on any Trading Day shall
                            equal the closing value (2nd session) of the Nikkei
                            225 Index or any Successor Index (as defined under
                            "Discontinuance of the Nikkei 225 Index; Alteration
                            of Method of Calculation" below) published at the
                            regular weekday

                                        4
<PAGE>

                            close of trading on that Trading Day. In certain
                            circumstances, the Index Closing Value shall be
                            based on the alternate calculation of the Nikkei 225
                            Index described under "Discontinuance of the Nikkei
                            225 Index; Alteration of Method of Calculation."

Trading Day................ A day, as determined by the Calculation Agent, on
                            which trading is generally conducted on the Tokyo
                            Stock Exchange, Inc. ("TSE") and (ii) on any
                            exchange on which futures or options contracts
                            related to the Nikkei 225 Index are traded, other
                            than a day on which trading on any such exchange is
                            scheduled to close prior to its regular final
                            weekday closing time.

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

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
                            hundred-thousandth, with five one-millionths rounded
                            upward (e.g., .876545 would be rounded to .87655);
                            all dollar amounts related to determination of the
                            amount of cash payable for each $10 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
                            Nikkei 225 Index:

                                        5
<PAGE>

                                 (i) the occurrence or existence of a
                                 suspension, absence or material limitation of
                                 trading of stocks then constituting 20 percent
                                 or more of the level of the Nikkei 225 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 a
                                 breakdown or failure in the price and trade
                                 reporting systems of any Relevant Exchange as a
                                 result of which the reported trading prices for
                                 stocks then constituting 20 percent or more of
                                 the level of the Nikkei 225 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 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 Nikkei 225 Index (or the
                                 Successor Index) for more than two hours of
                                 trading or during the one-half hour period
                                 preceding the close of the principal trading
                                 session on such market, in each case as
                                 determined by the Calculation Agent in its sole
                                 discretion; 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 the PLUS due January 30, 2006,
                                 Mandatorily Exchangeable for an Amount Payable
                                 in U.S. Dollars Based on the Value of the
                                 Nikkei 225 Index.

                            For the purpose of determining whether a Market
                            Disruption Event exists at any time, if trading in a
                            security included in the Nikkei 225 Index is
                            materially suspended or materially limited at that
                            time, then the relevant percentage contribution of
                            that security to the level of the Nikkei 225 Index
                            shall be based on a comparison of (x) the portion of
                            the value of the Nikkei 225 Index attributable to
                            that security relative to (y) the overall value of
                            the Nikkei 225 Index, in

                                        6
<PAGE>

                            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 shall not
                            constitute a Market Disruption Event if it results
                            from an announced change in the regular business
                            hours of the relevant exchange or market, (2) a
                            decision to permanently discontinue trading in the
                            relevant futures or options contract or exchange
                            traded fund shall not constitute a Market Disruption
                            Event, (3) limitations pursuant to the rules of any
                            Relevant Exchange similar to NYSE Rule 80A (or any
                            applicable rule or regulation enacted or promulgated
                            by any other self-regulatory organization or any
                            government agency of scope similar to NYSE Rule 80A
                            as determined by the Calculation Agent) on trading
                            during significant market fluctuations shall
                            constitute a suspension, absence or material
                            limitation of trading, (4) a suspension of trading
                            in futures or options contracts on the Nikkei 225
                            Index by the primary securities market trading in
                            such contracts 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 (c) a disparity in bid and ask quotes
                            relating to such contracts shall constitute a
                            suspension, absence or material limitation of
                            trading in futures or options contracts related to
                            the Nikkei 225 Index and (5) a "suspension, absence
                            or material limitation of trading" on any Relevant
                            Exchange or on the primary market on which futures
                            or options contracts related to the Nikkei 225 Index
                            are traded shall not include any time when such
                            securities market is itself closed for trading under
                            ordinary circumstances.

Relevant Exchange.......... Relevant Exchange means the primary exchange or
                            market of trading for any security (or any
                            combination thereof) then included in the Nikkei 225
                            Index or any Successor Index.

Alternate Exchange
Calculation in 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 $10 principal
                            amount of this PLUS upon any acceleration of this

                                        7
<PAGE>

                            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.

                            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
                            aggregate cash amount due with respect to each $10
                            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
Nikkei 225 Index;
Alteration of Method
of Calculation............. If Nasdaq discontinues publication of the Nikkei 225
                            Index and Nasdaq or another entity publishes a
                            successor or substitute index that the Calculation
                            Agent, determines, in its sole discretion, to be
                            comparable to the discontinued Nikkei 225 Index
                            (such index being referred to herein as a "Successor
                            Index"), then any subsequent Index Closing Value
                            shall be determined by reference to the value of
                            such Successor Index at the regular official weekday
                            close of the TSE (2nd session) or the Relevant
                            Exchange or market for the Successor Index on the
                            date that any Index Closing Value is to be
                            determined.

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

                            If Nasdaq discontinues publication of the Nikkei 225
                            Index prior to, and such discontinuance is
                            continuing on, the 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 date. The Index Closing Value shall
                            be computed by the Calculation Agent in accordance
                            with the formula for calculating the Nikkei 225
                            Index last in effect

                                        8
<PAGE>

                            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 date of
                            each security most recently comprising the Nikkei
                            225 Index without any rebalancing or substitution of
                            such securities following such discontinuance.

                            If at any time the method of calculating the Nikkei
                            225 Index or a Successor Index, or the value
                            thereof, is changed in a material respect, or if the
                            Nikkei 225 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 the Nikkei 225 Index or such
                            Successor Index had such changes or modifications
                            not been made, then, from and after such time, the
                            Calculation Agent shall, at the close of business in
                            New York City on the 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
                            Nikkei 225 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 and, if applicable,
                            the Initial Index Value with reference to the Nikkei
                            225 Index or such Successor Index, as adjusted.
                            Accordingly, if the method of calculating the Nikkei
                            225 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 Nikkei 225 Index or such Successor
                            Index as if it had not been modified (e.g., as if
                            such split had not occurred).

Treatment of PLUS for
United States Federal
Income Tax Purposes........ The Issuer, by its sale of this PLUS, and the holder
                            of this PLUS (and any successor holder of, or holder
                            of a beneficial interest in, this PLUS), by its
                            respective

                                        9
<PAGE>

                            purchase hereof, agree (in the absence of an
                            administrative determination or judicial ruling to
                            the contrary) to characterize each $10 principal
                            amount of this PLUS for all tax purposes as a single
                            financial contract with respect to the Nikkei 225
                            Index that (i) requires the holder of this PLUS to
                            pay to the Issuer at inception an amount equal to
                            $10 and (ii) entitles the holder to receive at
                            maturity an amount in cash based upon the
                            performance of the Nikkei 225 Index.

                                       10
<PAGE>

     Morgan Stanley, a Delaware corporation (together with its successors and
assigns, the "Issuer"), for value received, hereby promises to pay to CEDE &
Co., or registered assignees, the 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. $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

                                       11
<PAGE>

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 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.

                                       12
<PAGE>

     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.

                                       13
<PAGE>

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

DATED:                                   MORGAN STANLEY

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

TRUSTEE'S CERTIFICATE
    OF AUTHENTICATION

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

JPMORGAN CHASE BANK, N.A.,
    as Trustee

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

                                       14
<PAGE>

                               REVERSE OF SECURITY

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

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

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

     If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments of
$1,000 or, if this Note is denominated in a Specified Currency other than U.S.
dollars, in increments of 1,000 units of such Specified Currency (provided that
any remaining principal amount hereof shall not be less than the minimum
authorized denomination hereof) at the option of the holder hereof at a price
equal to 100% of the principal amount to be repaid, together with interest
accrued and unpaid hereon to the date of repayment, provided that if this Note
is issued with original

                                       15
<PAGE>

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

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

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

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

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

                                       16
<PAGE>

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.

     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

                                       17
<PAGE>

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

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

     If the face hereof indicates that this Note is subject to "Tax Redemption
and Payment of Additional Amounts," this Note may be redeemed, as a whole, at
the option of the Issuer at any time prior to maturity, upon the giving of a
notice of redemption as described below, at a redemption price equal to 100% of
the principal amount hereof, together with accrued interest to the date fixed
for redemption (except that if this Note is subject to "Modified Payment upon
Acceleration or Redemption," such redemption price would be limited to the
aggregate principal amount hereof multiplied by the sum of the Issue Price
specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of redemption, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of redemption) (the "Amortized
Amount")), if the Issuer determines that, as a result of any change in or
amendment to the laws, or any regulations or rulings promulgated thereunder, of
the United States or of any political subdivision or taxing authority thereof or
therein affecting taxation, or any change in official position regarding the
application or interpretation of such laws, regulations or rulings, which change
or amendment becomes effective on or after the Initial Offering Date hereof, the
Issuer has or will become obligated to pay Additional Amounts, as defined below,
with respect to this Note as described below. Prior to the giving of any notice
of redemption pursuant to this paragraph, the Issuer shall deliver to the
Trustee (i) a certificate stating that the Issuer is entitled to effect such

                                       18
<PAGE>

redemption and setting forth a statement of facts showing that the conditions
precedent to the right of the Issuer to so redeem have occurred, and (ii) an
opinion of independent legal counsel satisfactory to the Trustee to such effect
based on such statement of facts; provided that no such notice of redemption
shall be given earlier than 60 calendar days prior to the earliest date on which
the Issuer would be obligated to pay such Additional Amounts if a payment in
respect of this Note were then due.

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

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

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

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

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

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

                                       19
<PAGE>

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

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

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

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

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

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

                                       20
<PAGE>

amount of debt securities the consent of the holders of which is required for
any such supplemental indenture.

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

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

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

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

                                       21
<PAGE>

pursuant to any such Directive or any law implementing or complying with, or
introduced in order to conform to, such Directive.

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

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

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

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

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

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

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

                                       22
<PAGE>

                                  ABBREVIATIONS

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

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

        UNIF GIFT MIN ACT - __________________ Custodian _______________________
                                  (Minor)                       (Cust)

        Under Uniform Gifts to Minors Act _____________________________
                                                     (State)

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

                             -----------------------

                                       23
<PAGE>

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

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

_______________________________________________________________________________

_______________________________________________________________________________

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

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

Dated: _____________________________

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

                                       24
<PAGE>

                            OPTION TO ELECT REPAYMENT

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

_______________________________________________________________________________

_______________________________________________________________________________

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

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

                                       25<PAGE>
                                                                    Exhibit 10.1

[CITIGROUP INC. LOGO]

January 18, 2005

Robert E. Rubin
399 Park Avenue
New York, NY 10022

Dear Bob:

I am writing on behalf of Citigroup Inc. ("Citigroup") to confirm certain
changes to your employment agreement dated October 26, 1999, as amended on
February 6, 2002, February 10, 2003 and March 10, 2004. With respect to the
incentive compensation awarded to you on January 18, 2005, 25% will be
delivered in the form of a Core CAP award and 15% will be delivered in the form
of a Supplemental CAP award under the Citigroup Capital Accumulation Program,
consistent with the guidelines in place for the other members of senior
management.  In accordance with the provisions of Section 409A of the Internal
Revenue Code, payment of the cash portion of your incentive compensation will
be deferred until the date that is six (6) months following the date that your
employment with Citigroup has terminated.

All of the other provisions of the employment agreement relating to such
incentive compensation (such as composition and manner of payment), including
those designed to avoid the loss of deduction under Section 162(m) of the
Internal Revenue Code, shall continue to apply.

If the foregoing is consistent with our discussions, please sign in the space
provided below.

Very truly yours,
Citigroup Inc.

By: /s/ Michael Schlein
    -------------------
    Michael Schlein,
    Senior Vice President,
    Global Corporate Affairs, Human Resources & Business practices

Accepted and agreed:

/s/ Robert E. Rubin
    ---------------
    Robert E. Rubin

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]