Document:

EXHIBIT 4.1

                         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.

                                      A-1
<PAGE>

                                 MORGAN STANLEY
                   SENIOR GLOBAL MEDIUM-TERM NOTES, SERIES F
                                  (Fixed Rate)

                  CAPITAL PROTECTED NOTE DUE DECEMBER 30, 2011
                   BASED ON THE VALUE OF THE S&P 500(R) INDEX

<TABLE>
---------------------------------------------------------------------------------------------------------------
<S>                           <C>                          <C>                          <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION           INTEREST RATE: N/A           MATURITY DATE:
                                 DATE: N/A                                                 See "Maturity Date"
                                                                                           below.
---------------------------------------------------------------------------------------------------------------
INTEREST ACCRUAL              INITIAL REDEMPTION           INTEREST PAYMENT             OPTIONAL
   DATE: N/A                     PERCENTAGE: N/A              DATE(S): 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 OR
                                                                                           REDEMPTION: 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 AND           PRICE APPLICABLE             ORIGINAL YIELD TO
   AGENT: N/A                    PAYMENT OF                UPON OPTIONAL                   MATURITY: N/A
                                 ADDITIONAL                REPAYMENT: N/A
                                 AMOUNTS: N/A
---------------------------------------------------------------------------------------------------------------
OTHER PROVISIONS:             IF YES, STATE INITIAL
   See below.                 OFFERING DATE: N/A
---------------------------------------------------------------------------------------------------------------
</TABLE>

Maturity Date...............  December 30, 2011, subject to extension in
                              accordance with the following paragraph in the
                              event of a Market Disruption Event on the
                              Determination Date for calculating the Final
                              Index Value.

                              If, due to a Market Disruption Event or
                              otherwise, the Determination Date is postponed so
                              that it falls less than

                                      A-2
<PAGE>

                              two scheduled Trading Days prior to the scheduled
                              Maturity Date, the Maturity Date shall be the
                              second scheduled Trading Day following the
                              Determination Date as postponed. See
                              "Determination Date" below.

                              In the event that the Determination Date is
                              postponed due to a Market Disruption Event or
                              otherwise, the Issuer shall give notice of such
                              postponement as promptly as possible, and in no
                              case later than one Business Day following the
                              scheduled Determination Date, (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.

Minimum Denominations.......  $10

Issue Price.................  $10

Maturity Redemption Amount..  At maturity, upon delivery of this Note to the
                              Trustee, the Issuer shall pay with respect to
                              each $10 principal amount of this Note an amount
                              in cash equal to the $10 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 Maturity Redemption Amount, 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 delivery to the holder of this Note

                                      A-3
<PAGE>

                              on the Maturity Date. See "Discontinuance of the
                              Index; Alteration of Method of Calculation"
                              below.

Supplemental Redemption
Amount......................  The Supplemental Redemption Amount shall be equal
                              to the product of (i) $10 times (ii) the S&P 500
                              Index Percent Change times (iii) the
                              Participation Rate; provided that the
                              Supplemental Redemption Amount will not be less
                              than zero. The Calculation Agent shall calculate
                              the Supplemental Redemption Amount on the
                              Determination Date.

S&P 500 Index Percent
Change......................  The S&P 500 Index Percent Change is 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. The Index Percent Change is described by
                              the following formula:

<TABLE>
<S>                             <C>
                                                       Final Index Value - Initial Index Value
                                Index Percent Change = ---------------------------------------
                                                                 Initial Index Value
</TABLE>

Participation Rate..........  %

Initial Index Value.........

Final Index Value...........  The Index Closing Value on the Determination
                              Date.

Index Closing Value.........  The Index Closing Value on any Trading Day shall
                              equal the closing value of the S&P 500 Index or
                              any Successor Index (as defined under
                              "Discontinuance of the S&P 500 Index; Alteration
                              of Method of Calculation" below) published at the
                              regular weekday close of trading on that Trading
                              Day. In certain circumstances, the Index Closing
                              Value shall be based on the alternate calculation
                              of the S&P 500 Index described under
                              "Discontinuance of the Index; Alteration of
                              Method of Calculation."

                              In this Note, references to the S&P 500 Index
                              shall include any Successor Index, unless the
                              context requires otherwise.

Determination Date..........  The Determination 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 in
                              this section.

                                      A-4
<PAGE>

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

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

Market Disruption Event.....  Market Disruption Event means, with respect to
                              the S&P 500 Index 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 S&P 500 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 Component
                              Stocks then constituting 20 percent or more of
                              the level of the S&P 500 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 S&P 500
                              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.

                              For the purpose of determining whether a Market
                              Disruption Event exists at any time, if trading
                              in a security included in the S&P 500 Index is
                              materially suspended or materially limited at
                              that time, then the relevant percentage
                              contribution of that security to the value of the
                              S&P 500 Index shall be based on a comparison of
                              (x) the

                                      A-5
<PAGE>

                              portion of the value of the S&P 500 Index
                              attributable to that security relative to (y) the
                              overall value of the S&P 500 Index, in each case
                              immediately before that suspension or limitation.

                              For purposes of determining whether a Market
                              Disruption Event has occurred: (1) a limitation
                              on the hours or number of days of trading shall
                              not constitute a Market Disruption Event if it
                              results from an announced change in the regular
                              business hours of the relevant exchange 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 S&P 500 Index by the
                              primary securities market trading in such
                              contracts by reason of (a) a price change
                              exceeding limits set by such 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 S&P 500 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 S&P 500 Index are traded
                              shall not include any time when such market is
                              itself closed for trading under ordinary
                              circumstances.

Relevant Exchange...........  Relevant Exchange means the primary exchange or
                              market of trading for any security then included
                              in the S&P 500 Index or any Successor Index.

Alternate Exchange
Calculation in Case of an
Event of Default............  In case an event of default with respect to this
                              Note shall have occurred and be continuing, the
                              amount declared due and payable for each $10
                              principal amount of this Note upon any
                              acceleration of the Notes (the "Acceleration

                                      A-6
<PAGE>

                              Amount") shall be equal to the $10 principal
                              amount of this Note plus the Supplemental
                              Redemption Amount, if any, determined as though
                              the Index Closing Value on the date of such
                              acceleration were the Final Index Value.

                              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 and the
                              aggregate cash amount due with respect to this
                              Note as promptly as possible and in no event
                              later than two Business Days after the date of
                              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 the Final Index
                              Value and the Supplemental Redemption Amount, if
                              any, shall be made by the Calculation Agent and
                              shall be rounded to the nearest one
                              hundred-thousandth, with five one- millionths
                              rounded upward (e.g., .876545 would be rounded to
                              .87655); all dollar amounts related to
                              determination of the amount of cash payable per
                              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 related to
                              payouts at maturity shall be rounded to the
                              nearest cent, with one-half cent rounded upward.

Discontinuance of the
S&P 500 Index; Alteration
of Method of Calculation....  If S&P discontinues publication of the S&P 500
                              Index and S&P or another entity publishes a
                              successor or substitute index that MS & Co., as
                              the Calculation Agent, determines, in its sole
                              discretion, to be comparable to the discontinued
                              S&P 500 Index (such index being referred to
                              herein as a "Successor Index"), then any
                              subsequent Index

                                      A-7
<PAGE>

                              Closing Value shall be determined by reference to
                              the value of such Successor Index at the regular
                              official weekday close of the principal trading
                              session of the NYSE, the AMEX, the Nasdaq
                              National Market 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 Depository,
                              as holder of the PLUS, within three Trading Days
                              of such selection.

                              If S&P discontinues publication of the S&P 500
                              Index prior to, and such discontinuance is
                              continuing on, the Determination Date 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 for
                              such date. The Index Closing Value shall be
                              computed by the Calculation Agent in accordance
                              with the formula for calculating the S&P 500
                              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 date of
                              each security most recently comprising the S&P
                              500 Index without any rebalancing or substitution
                              of such securities following such discontinuance.

                              If at any time the method of calculating the S&P
                              500 Index or a Successor Index, or the value
                              thereof, is changed in a material respect, or if
                              the S&P 500 Index or a 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 the S&P 500
                              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-8
<PAGE>

                              a value of a stock index comparable to the S&P
                              500 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 the Initial
                              Index Value with reference to the S&P 500 Index
                              or such Successor Index, as adjusted.
                              Accordingly, if the method of calculating the S&P
                              500 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 S&P
                              500 Index or such Successor Index as if it had
                              not been modified (e.g., as if such split had not
                              occurred).

                                      A-9
<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 amount of cash, as determined in accordance
with the provisions set forth under "Maturity Redemption Amount" 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. $10,000,000
(or the equivalent in

                                      A-10
<PAGE>

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

                                      A-11
<PAGE>

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.

                                      A-12
<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

                                      A-13
<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

                                      A-14
<PAGE>

accrued and unpaid hereon to the date of repayment, provided that if this Note
is issued with original 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

                                      A-15
<PAGE>

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.

     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

                                     A-16
<PAGE>

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 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

                                      A-17
<PAGE>

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 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

                                      A-18
<PAGE>

     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;

          (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

                                      A-19
<PAGE>

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 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.

                                      A-20
<PAGE>

     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.

     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,

                                      A-21
<PAGE>

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.

                                      A-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.

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

                                      A-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.

                                      A-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.

                                      A-25EXHIBIT 4.1

                         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.

                                      A-1

<PAGE>

                                 MORGAN STANLEY
                   SENIOR GLOBAL MEDIUM-TERM NOTES, SERIES F

                PERFORMANCE LEVERAGED UPSIDE SECURITIES ("PLUS")

                            PLUS DUE MARCH 30, 2006
                            MANDATORILY EXCHANGEABLE
                     FOR AN AMOUNT PAYABLE IN U.S. DOLLARS
                 BASED ON THE VALUE OF THE NASDAQ-100 INDEX(R)

<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 AND                                          ORIGINAL YIELD TO
     AGENT: N/A                  PAYMENT OF                                                  MATURITY: N/A
                                 ADDITIONAL
                                 AMOUNTS: N/A
OTHER PROVISIONS:           If yes, state Initial Offering
     See below              Date: N/A
</TABLE>

Maturity Date.................   March 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, the Maturity Date shall be the
                                 second scheduled Trading Day following the

                                      A-2

<PAGE>

                                 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).

                                 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

                                       A-3

<PAGE>

                                 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 Nasdaq-100
                                 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 of the
                                 Nasdaq-100 Index or any Successor Index (as
                                 defined under "Discontinuance of the
                                 Nasdaq-100 Index; Alteration of Method of
                                 Calculation" below) published at the regular
                                 weekday close of trading on that Trading Day.
                                 In certain circumstances, the Index Closing
                                 Value shall be based on the alternate
                                 calculation of the Nasdaq-100 Index described
                                 under

                                       A-4

<PAGE>

                                 "Discontinuance of the Nasdaq-100 Index;
                                 Alteration of Method of Calculation."

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 per 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 Nasdaq-100 Index:

                                    (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
                                    Nasdaq-100 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

                                       A-5

<PAGE>

                                    more of the level of the Nasdaq-100 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 Nasdaq- 100 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
                                    March 30, 2006, Mandatorily Exchangeable
                                    for an Amount Payable in U.S. Dollars based
                                    on the Value of the Nasdaq-100 Index.

                                 For the purpose of determining whether a
                                 Market Disruption Event exists at any time, if
                                 trading in a security included in the
                                 Nasdaq-100 Index is materially suspended or
                                 materially limited at that time, then the
                                 relevant percentage contribution of that
                                 security to the level of the Nasdaq-100 Index
                                 shall be based on a comparison of (x) the
                                 portion of the value of the Nasdaq-100 Index
                                 attributable to that security relative to (y)
                                 the overall value of the Nasdaq-100 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 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

                                      A-6

<PAGE>

                                 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 Nasdaq-100 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
                                 Nasdaq-100 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 Nasdaq-100 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
                                 Nasdaq-100 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 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.

                                       A-7

<PAGE>

Discontinuance of the
Nasdaq-100 Index; Alteration
of Method of Calculation......   If Nasdaq discontinues publication of the
                                 Nasdaq-100 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 Nasdaq-100 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 principal
                                 trading session of the NYSE, the AMEX, the
                                 Nasdaq National Market 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
                                 Nasdaq-100 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 Nasdaq-100 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 date of each
                                 security most recently comprising the
                                 Nasdaq-100 Index without any rebalancing or
                                 substitution of such securities following such
                                 discontinuance.

                                 If at any time the method of calculating the
                                 Nasdaq-100 Index or a Successor Index, or the
                                 value thereof, is changed in a material
                                 respect, or if the Nasdaq-100 Index or a
                                 Successor Index is in any other way

                                       A-8

<PAGE>

                                 modified so that such index does not, in the
                                 opinion of the Calculation Agent, fairly
                                 represent the value of the Nasdaq-100 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 Nasdaq-100 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 the
                                 Initial Index Value with reference to the
                                 Nasdaq-100 Index or such Successor Index, as
                                 adjusted. Accordingly, if the method of
                                 calculating the Nasdaq-100 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 Nasdaq-100
                                 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 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
                                 Nasdaq-100 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
                                 Nasdaq-100 Index.

                                      A-9

<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

                                      A-10

<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.

                                      A-11

<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.

                                      A-12

<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

                                      A-13

<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

                                      A-14

<PAGE>

issue discount, this Note will be repayable on the applicable Optional
Repayment Date or Dates atthe 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

                                      A-15

<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

                                      A-16

<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

                                      A-17

<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;

                                      A-18

<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

                                      A-19

<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

                                      A-20

<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.

                                      A-21

<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.

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

                                      A-22

<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.

                                      A-23

<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.

                                      A-24

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