Document:

Unassociated Document

     

      Exhibit
        4.1

       

      FORM
        OF FIXED RATE SENIOR NOTE

    

     

    
      
        	REGISTERED 	REGISTERED
	No.
                FXR-1  	U.S.
                $
	 	CUSIP:
                61747S256

      

    

     

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

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY

    SENIOR
      GLOBAL MEDIUM-TERM NOTE, SERIES F

    

    PERFORMANCE
      LEVERAGED UPSIDE SECURITIES (“PLUS”)

    

    BEAR
      MARKET PLUS DUE JULY 20, 2008

    BASED
      INVERSELY ON THE VALUE OF

    THE
      S&P 500® INDEX

     

    
      
        	
                ORIGINAL
                  ISSUE DATE:

                 

              	
                INITIAL
                  REDEMPTION DATE: N/A

              	
                INTEREST
                  RATE: None

              	
                MATURITY
                  DATE: See “Maturity Date” below.

              
	
                INTEREST
                  ACCRUAL DATE: N/A

              	
                INITIAL
                  REDEMPTION PERCENTAGE: N/A

              	
                INTEREST
                  PAYMENT 

                DATE(S):
                  N/A

              	
                OPTIONAL
                  REPAYMENT DATE(S): N/A

              
	
                SPECIFIED
                  CURRENCY: 

                U.S.
                  dollars

              	
                ANNUAL
                  REDEMPTION PERCENTAGE REDUCTION: N/A

              	
                INTEREST
                  PAYMENT PERIOD: N/A

              	
                APPLICABILITY
                  OF MODIFIED

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

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

              	
                REDEMPTION
                  NOTICE PERIOD: N/A

              	
                APPLICABILITY
                  OF ANNUAL INTEREST PAYMENTS: N/A

              	
                If
                  yes, state Issue Price: N/A

              
	
                EXCHANGE
                  RATE AGENT: N/A

              	
                TAX
                  REDEMPTION AND PAYMENT OF ADDITIONAL AMOUNTS: NO

              	
                PRICE
                  APPLICABLE UPON OPTIONAL REPAYMENT: N/A

              	
                ORIGINAL
                  YIELD TO MATURITY: N/A

              
	
                OTHER
                  PROVISIONS: See below

              	
                IF
                  YES, STATE INITIAL OFFERING DATE: N/A

              	 	 

      

       

    

    
      
        	
                Stated
                  Principal Amount

              	 	
                $10

              
	 	 	 
	
                Underlying
                  Index

              	 	
                The
                  S&P 500®
                  Index

              
	 	 	 
	
                Underlying
                  Index Publisher

              	 	
                Standard
                  & Poor’s®
                  Corporation

              
	 	 	 
	
                Initial
                  Index Value

              	 	 
	 	 	 
	
                Pricing
                  Date

              	 	 
	 	 	 
	
                Denominations

              	 	
                $10
                  and integral multiples
                  thereof

              

      

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Bull
                  Market or Bear Market PLUS

              	 	
                Bear
                  Market PLUS

              
	 	 	 
	
                Maximum
                  Payment at Maturity

              	 	
                $           per
                  Stated Principal Amount

              
	 	 	 
	Minimum
                Payment at Maturity	 	 
	
                if
                  Bear Market PLUS

              	 	
                $           per
                  Stated Principal Amount

              
	 	 	 
	
                Leverage
                  Factor

              	 	
                        %

              
	 	 	 
	
                Index
                  Valuation Date(s)

              	 	
                July
                  17, 2008.

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

              

      

    

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Maturity
                  Date

              	 	
                July
                  20, 2008, subject to extension if the scheduled Index Valuation
                  Date or
                  Final Index Valuation Date, as applicable, is postponed in accordance
                  with
                  the definition thereof.  If the scheduled Index Valuation Date
                  or Final Index Valuation Date, as applicable, is postponed so that
                  it
                  falls less than two scheduled Trading Days prior to the scheduled
                  Maturity
                  Date, the Maturity Date shall be the second scheduled Trading Day
                  following the Index Valuation Date or Final Index Valuation Date,
                  as
                  applicable, as postponed.  See “Index Valuation
                  Date(s).”

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

      

       

       

      
        
          
          

        

        
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                Payment
                  at Maturity

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

              
	 	 	 
	
              	 	1.  For
                a Bull Market PLUS, (i) if the Final Index Value, or Final
                Average Index Value, as applicable, is greater than the Initial Index
                Value, the lesser of (a) the Stated Principal Amount plus the Leveraged
                Upside Payment and (b) the Maximum Payment at Maturity or (ii) if
                the
                Final Index Value or Final Average Index Value, as applicable, is
                less
                than or equal to the Initial Index Value, the Stated Principal Amount
                times the Index Performance Factor.
	 	 	 
	
              	 	2.  For
                a Bear Market PLUS, (i) if the Final Index Value or Final Average
                Index Value, as applicable, is less than the Initial Index Value,
                the
                lesser of (a) the Stated Principal Amount plus the Enhanced Downside
                Payment and (b) the Maximum Payment at Maturity or (ii) if the Final
                Index
                Value or Final Average Index Value, as applicable, is greater than
                or
                equal to the Initial Index Value, the Stated Principal Amount minus
                the
                Upside Reduction Amount, subject to the Minimum Payment at
                Maturity.
	 	 	 
	
              	 	
                The
                  Issuer shall, or shall cause the Calculation Agent to, (i) provide
                  written
                  notice to the Trustee and to the Depositary of the amount of cash
                  to be
                  delivered with respect to each Stated Principal Amount of this
                  PLUS, on or
                  prior to 10:30 a.m. on the Trading Day preceding the Maturity Date
                  (but if
                  such Trading Day is not a Business Day, prior to the close of business
                  on
                  the Business Day preceding the Maturity Date), and (ii) deliver
                  the
                  aggregate cash amount due with respect to this PLUS to the Trustee
                  for
                  delivery to the holder of this PLUS on the Maturity
                  Date.

              
	 	 	 
	
                Applicable
                  only for BULL MARKET PLUS

              	 	 
	 	 	 
	
                Leveraged
                  Upside Payment

              	 	
                The
                  product of (i) the Stated Principal Amount and (ii) the Leverage
                  Factor
                  and (iii) the Index Percent
                  Increase.

              

      

       

       

      
        
          
          

        

        
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                Index
                  Performance Factor

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

              
	 	 	 
	
                Applicable
                  only for BEAR MARKET PLUS

              	 	 
	 	 	 
	
                Enhanced
                  Downside Payment

              	 	
                The
                  product of (i) the Stated Principal Amount and (ii) the Leverage
                  Factor
                  and (iii) the Index Percent Decrease.

              
	 	 	 
	
                Upside
                  Reduction Amount

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

              
	 	 	 
	
                Index
                  Percent Decrease

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

              
	 	 	 
	
                Applicable
                  for all PLUS

              	 	 
	 	 	 
	
                Index
                  Percent Increase

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

              
	 	 	 
	
                Final
                  Index Value

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

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

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

              

      

       

      
 

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      
        	 	 	Underlying
                Index; Alteration of Method of Calculation.”
	 	 	 
	
                Price
                  Source

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

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

              
	 	 	 
	
                Trading
                  Day

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

              
	 	 	 
	
                Index
                  Business Day

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

              
	 	 	 
	
                Relevant
                  Exchange

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

              
	 	 	 
	
                Calculation
                  Agent

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

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

      

       

      
 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

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

              
	 	 	 
	
                Market
                  Disruption Event

              	 	
                Market
                  Disruption Event means, with respect to the Underlying Index, the
                  occurrence or existence of any of the following events, as determined
                  by
                  the Calculation Agent in its sole discretion:

              
	 	 	 
	
              	 	(i)(a)
                a suspension, absence or material limitation of trading of stocks
                then
                constituting 20 percent or more of the value of the Underlying Index
                (or
                the Successor Index) on the Relevant Exchanges for such securities
                for
                more than two hours of trading or during the one-half hour period
                preceding the close of the principal trading session on such Relevant
                Exchange; or
	 	 	 
	
              	 	(b)
                a breakdown or failure in the price and trade reporting systems of
                any
                Relevant Exchange as a result of which the reported trading prices
                for
                stocks then constituting 20 percent or more of the value of the Underlying
                Index (or the Successor Index) during the last one-half hour preceding
                the
                close of the principal trading session on such Relevant Exchange
                are
                materially inaccurate; or
	 	 	 
	
              	 	(c)
                the suspension, material limitation or absence of trading on any
                major
                U.S. securities market for trading in futures or options contracts
                or
                exchange traded funds related to the Underlying Index (or the Successor
                Index) for more than two hours of trading or during the one-half
                hour
                period preceding the close of the principal trading session on such
                market; and

      

       

      
 

      
        
          
          

        

        
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              	 	(ii)
                a determination by the Calculation Agent in its sole discretion that
                any
                event described in clause (i) above materially interfered with the
                ability
                of the Issuer or any of its affiliates to unwind or adjust all or
                a
                material portion of the hedge position with respect to this issuance
                of
                PLUS.
	 	 	 
	
              	 	For
                the purpose of determining whether a Market Disruption Event exists
                at any
                time, if trading in a security included in the Underlying Index is
                materially suspended or materially limited at that time, then the
                relevant
                percentage contribution of that security to the value of the Underlying
                Index shall be based on a comparison of (x) the portion of the value
                of
                the Underlying Index attributable to that security relative to (y)
                the
                overall value of the Underlying Index, in each case immediately before
                that suspension or limitation.
	 	 	 
	
              	 	For
                the purpose of determining whether a Market Disruption Event has
                occurred:  (1) a limitation on the hours or number of days of
                trading shall not constitute a Market Disruption Event if it results
                from
                an announced change in the regular business hours of the Relevant
                Exchange
                or market, (2) a decision to permanently discontinue trading in the
                relevant futures or options contract or exchange traded fund shall
                not
                constitute a Market Disruption Event, (3) limitations pursuant to
                the
                rules of any Relevant Exchange similar to NYSE Rule 80A (or any applicable
                rule or regulation enacted or promulgated by any other self-regulatory
                organization or any government agency of scope similar to NYSE Rule
                80A as
                determined by the Calculation Agent) on trading during significant
                market
                fluctuations shall constitute a suspension, absence or material limitation
                of trading, (4) a suspension of trading in futures or options contracts
                or
                exchange traded funds on the Underlying Index by the primary securities
                market trading in such contracts or funds by reason of (a) a price
                change
                exceeding limits set by such securities exchange or market, (b) an
                imbalance of orders relating to such contracts or funds, or (c) a
                disparity in bid and ask quotes relating to such contracts or funds
                shall
                constitute a suspension, absence or material limitation of trading
                in
                futures or 

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
 

      
        	 	 	options
                contracts or exchange traded funds related to the Underlying Index
                and (5)
                a “suspension, absence or material limitation of trading” on any Relevant
                Exchange or on the primary market on which futures or options contracts
                or
                exchange traded funds related to the Underlying Index are traded
                shall not
                include any time when such securities market is itself closed for
                trading
                under ordinary circumstances.
	 	 	 
	
                Alternate
                  Exchange Calculation

              	 	 
	
                in
                  the Case of an Event of Default

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

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

              	 	 
	
                Underlying
                  Index;

              	 	 
	
                Alteration
                  of  Method of

              	 	 
	
                Calculation

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

              

      

       

       

      
        
          
          

        

        
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        	 	 	Index
                at the regular weekday close of trading on any Index Business Day
                that the
                Index Closing Value is to be determined.
	 	 	 
	
              	 	Upon
                any selection by the Calculation Agent of a Successor Index, the
                Calculation Agent shall cause written notice thereof to be furnished
                to
                the Trustee, to the Issuer and to the Depositary, as holder of the
                PLUS,
                within three Trading Days of such selection.
	 	 	 
	
              	 	If
                the Underlying Index Publisher discontinues publication of the Underlying
                Index prior to, and such discontinuance is continuing on, any Index
                Valuation Date or the date of acceleration and the Calculation Agent
                determines, in its sole discretion, that no Successor Index is available
                at such time, then the Calculation Agent shall determine the Index
                Closing
                Value for such Index Valuation Date or date of
                acceleration.  The Index Closing Value shall be computed by the
                Calculation Agent in accordance with the formula for and method of
                calculating the Underlying Index last in effect prior to such
                discontinuance, using the closing price (or, if trading in the relevant
                securities has been materially suspended or materially limited, its
                good
                faith estimate of the closing price that would have prevailed but
                for such
                suspension or limitation) at the close of the principal trading session
                of
                the Relevant Exchange on such Index Valuation Date or date of acceleration
                of each security most recently constituting the Underlying Index
                without
                any rebalancing or substitution of such securities following such
                discontinuance.
	 	 	 
	 	 	If
                at any time the method of calculating the Underlying Index or a Successor
                Index, or the value thereof, is changed in a material respect, or
                if the
                Underlying Index or a Successor Index is in any other way modified
                so that
                such index does not, in the opinion of the Calculation Agent, fairly
                represent the value of such index had such changes or modifications
                not
                been made, then, from and after such time, the Calculation Agent
                shall, at
                the close of business in New York City on each date on which the
                Index
                Closing Value is to be determined, make such calculations and adjustments
                as, in the good faith judgment of the Calculation

      

       

      
 

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      
        	 	 	 
	
              	 	
                Agent,
                  may be necessary in order to arrive at a value of a stock index
                  comparable
                  to the Underlying Index or such Successor Index, as the case may
                  be, as if
                  such changes or modifications had not been made, and the Calculation
                  Agent
                  shall calculate the Final Index Value or Final Average Index Value,
                  as
                  applicable, with reference to the Underlying Index or such Successor
                  Index, as adjusted.  Accordingly, if the method of calculating
                  the Underlying Index or a Successor Index is modified so that the
                  value of
                  such index is a fraction of what it would have been if it had not
                  been
                  modified (e.g., due to a split in the index), then the Calculation
                  Agent
                  shall adjust such index in order to arrive at a value of the Underlying
                  Index or such Successor Index as if it had not been modified (e.g.,
                  as if
                  such split had not occurred).

              

      

    

     

     

     

    
      
        
        

      

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

       

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

       

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

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

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

       

      
        	
                DATED:

              	 	 
	 	
                By:

              	 	 
	 	 	 
	 	 	 

      

      

       

      
        	
                TRUSTEE’S
                  CERTIFICATE

                OF
                  AUTHENTICATION

              
	 
	
                This
                  is one of the Notes referred

                to
                  in the within-mentioned

                Senior
                  Indenture.

              
	 
	
                THE
                  BANK OF NEW YORK, as

                Trustee

              
	 
	 
	
                By:

              	 
	
                Authorized
                  Signatory

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      REVERSE
        OF
        SECURITY

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      payment
        shall accrue for the period from and after the Interest Payment Date or the
        Maturity Date (or any redemption or repayment date) to such next succeeding
        Business Day.

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      transfer
        of Notes shall be such that no gain or loss of interest results from such
        exchange or transfer.

       

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

       

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

       

      If
        the
        face hereof indicates that this Note is subject to “Modified Payment upon
        Acceleration or Redemption,” then (i) if the principal hereof is declared to be
        due and payable as described in the preceding paragraph, the amount of principal
        due and payable with respect to this Note shall be limited to the aggregate
        principal amount hereof multiplied by the sum of the Issue Price specified
        on
        the face hereof (expressed as a percentage of the aggregate principal amount)
        plus the original issue discount accrued from the Interest Accrual Date to
        the
        date of declaration (expressed as a percentage of the aggregate principal
        amount), with the amount of

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

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

       

      (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;

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      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,

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      maintain
        a
        Paying Agent in a member state of the European Union that will not be obligated
        to withhold or deduct tax pursuant to any such Directive or any law implementing
        or complying with, or introduced in order to conform to, such
        Directive.

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      
        

         

        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.

         

        _______________________

         

         

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

        

         

        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.

          

        

                            

         

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

         

        OPTION
          TO ELECT REPAYMENT

         

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

         

        
          	 
	 
	 

        

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

         

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

         

        
          	
                  Dated:

                	 	 	 	 
	 	 	 	
                  NOTICE:

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

                	 

        

        

        28Unassociated Document

     

    Exhibit
      4.1

     

    FORM
      OF FIXED RATE SENIOR NOTE

     

    
      
        	
                REGISTERED

              	
                REGISTERED

              
	
                No.
                  FXR-1

              	
                U.S.
                  $

              
	 	
                CUSIP:
                  617475801

              

      

    

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    MORGAN
      STANLEY

    SENIOR
      GLOBAL MEDIUM-TERM NOTE, SERIES F

    (Fixed
      Rate)

     

    STOCK
      PARTICIPATION ACCRETING

    REDEMPTION
      QUARTERLY-PAY SECURITIESSM
      (“SPARQS”)

     

    %
      SPARQS® DUE JULY
      20, 2008

    MANDATORILY
      EXCHANGEABLE

    FOR
      SHARES OF COMMON STOCK OF

    MONSANTO
      COMPANY

     

    
      	
              ORIGINAL
                ISSUE DATE:

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

            	
              INTEREST
                RATE: % per annum

            	
              MATURITY
                DATE: See “Maturity Date” below.

            
	
              INTEREST
                ACCRUAL DATE:

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

            	
              INTEREST
                PAYMENT DATE(S): 

              See
                “Interest Payment Dates” below.

            	
              OPTIONAL
                REPAYMENT DATE(S): N/A

            
	
              SPECIFIED
                CURRENCY: U.S. dollars

            	
              ANNUAL
                REDEMPTION PERCENTAGE REDUCTION: N/A

            	
              INTEREST
                PAYMENT PERIOD: Quarterly

            	
              APPLICABILITY
                OF MODIFIED

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

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

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

            	
              APPLICABILITY
                OF ANNUAL INTEREST PAYMENTS: N/A

            	
              If
                yes, state Issue Price: N/A

            
	
              EXCHANGE
                RATE AGENT: N/A

            	
              TAX
                REDEMPTION AND PAYMENT OF ADDITIONAL AMOUNTS: NO

            	
              PRICE
                APPLICABLE UPON OPTIONAL REPAYMENT: N/A

            	
              ORIGINAL
                YIELD TO MATURITY: N/A

            
	
              OTHER
                PROVISIONS: See below.

            	
              IF
                YES, STATE INITIAL OFFERING DATE: N/A

            	 	 

    

     

    
      
        	
                Stated
                  Principal Amount

              	 	
                $

              
	 	 	 
	
                Underlying
                  Company

              	 	
                Monsanto
                  Company (“MON”)

              
	 	 	 
	
                Underlying
                  Stock

              	 	
                The
                  common stock of MON

              

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      
        	
                Pricing
                  Date

              	 	 
	 	 	 
	
                Issue
                  Price

              	 	
                $             per
                  SPARQS

              
	 	 	 
	
                Denominations

              	 	
                $             and
                  integral multiples thereof

              
	 	 	 
	
                Acceleration
                  Trigger Price

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

              
	 	 	 
	
                Exchange
                  Ratio

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

              
	 	 	 
	
                Yield
                  to Call

              	 	
                     %
                  per annum

              
	 	 	 
	
                First
                  Call Date

              	 	
                January
                  20, 2008

              
	 	 	 
	
                Maturity
                  Date

              	 	
                July
                  20, 2008, subject to acceleration as described below in “Price Event
                  Acceleration” and “Alternate Exchange Calculation in Case of an Event of
                  Default” and subject to extension if the Final Call Notice Date is
                  postponed in accordance with the definition thereof.  If the
                  Final Call Notice Date is postponed because it is not a Trading
                  Day or due
                  to a Market Disruption Event and the Issuer exercises the Morgan
                  Stanley
                  Call Right, the scheduled Maturity Date shall be postponed so that
                  the
                  Maturity Date is the tenth calendar day following the Final Call
                  Notice
                  Date.  See “Final Call Notice Date” below.

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

              

      

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                presumed
                  to have been duly given, whether or not the holder of this SPARQS
                  receives
                  the notice.  Notice of the date to which the Maturity Date has
                  been rescheduled as a result of postponement of the Final Call
                  Notice
                  Date, if applicable, shall be included in the Issuer’s notice of exercise
                  of the Morgan Stanley Call Right.

              
	 	 	 
	
                Interest
                  Payment Dates

              	 	
                October
                  20, 2007, January 20, 2008, April 20, 2008 and the Maturity
                  Date.

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

              
	 	 	 
	
                Record
                  Date

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

              
	 	 	 
	 	 	
                In
                  the event that the Issuer exercises the Morgan Stanley Call Right
                  and the
                  Morgan Stanley Notice Date falls before the “ex-interest” date for an
                  interest payment, so that as a result a scheduled Interest Payment
                  Date
                  does not occur, the Issuer shall cause the Calculation Agent to
                  give
                  notice to the Trustee and to the Depositary, in each case in the
                  manner
                  and at the time described in the second and third
                  paragraphs

              

      

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                under
                  “Morgan Stanley Call Right” below, that no Interest Payment Date shall
                  occur after such Morgan Stanley Notice Date.

              
	 	 	 
	
                Morgan
                  Stanley Call Right

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

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

              
	 	 	 
	 	 	
                The
                  notice of the Issuer’s exercise of the Morgan Stanley Call Right shall
                  specify (i) the Call Date, (ii) the Call Price payable per SPARQS,
                  (iii)
                  the amount of accrued but unpaid interest payable per SPARQS on
                  the Call
                  Date, (iv) whether any subsequently scheduled Interest Payment
                  Date shall
                  no longer be an Interest Payment Date as a result of the exercise
                  of the
                  Morgan Stanley Call Right, (v) the place or places of payment of
                  such Call
                  Price, (vi) that such delivery shall be made upon presentation
                  and
                  surrender of this SPARQS, (vii) that such exchange is pursuant
                  to the
                  Morgan Stanley

              

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                Call
                  Right and (viii) if applicable, the date to which the Maturity
                  Date has
                  been extended due to a Market Disruption Event as described under
                  “Maturity Date” above.

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

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

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

              
	 	 	 
	
                Morgan
                  Stanley Notice Date

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

              
	 	 	 
	
                Final
                  Call Notice Date

              	 	
                July
                  10, 2008; provided that if such date is not a Trading Day or if a
                  Market Disruption Event occurs on such day, the Final Call Notice
                  Date
                  shall be the immediately succeeding Trading Day on which no Market
                  Disruption Event occurs.

              
	 	 	 
	
                Call
                  Date

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

              

      

    

     

    
      
        
        

      

      
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                Call
                  Price

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

              
	 	 	 
	
                Exchange
                  at Maturity

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

              
	 	 	 
	 	 	
                The
                  amount of Underlying Stock to be delivered at maturity shall be
                  subject to
                  any applicable adjustments (i) to the Exchange Ratio (including,
                  as
                  applicable, any New Stock Exchange Ratio or any Basket Stock Exchange
                  Ratio, each as defined in paragraph 5 under “Antidilution Adjustments”
                  below) and (ii) in the Exchange Property, as defined in paragraph
                  5 under
                  “Antidilution Adjustments” below, to be delivered instead of, or in
                  addition to, such Underlying Stock as a result of any corporate
                  event
                  described under “Antidilution Adjustments” below, in each case, required
                  to be made through the close of business on the third Trading Day
                  prior to
                  the scheduled Maturity Date.

              
	 	 	 
	 	 	
                The
                  Issuer shall, or shall cause the Calculation Agent to, provide
                  written
                  notice to the Trustee at its New York Office and to the Depositary,
                  on
                  which notice the Trustee and Depositary may conclusively rely,
                  on or prior
                  to 10:30 a.m. on the Trading Day
                  immediately

              

      

    

     

    
      
        
        

      

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

              
	 	 	 
	 	 	
                The
                  Issuer shall, or shall cause the Calculation Agent to, deliver
                  any such
                  shares of the Underlying Stock (or any Exchange Property) and cash
                  in
                  respect of interest

              

      

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	and
                any fractional share of the Underlying Stock (or any Exchange Property)
                and cash otherwise due upon any acceleration described above to the
                Trustee for delivery to the holder of this Note.  References to
                payment “per SPARQS” refer to each Stated Principal Amount of this
                SPARQS.
	 	 	 
	 	 	If
                this SPARQS is not surrendered for exchange at maturity, it shall
                be
                deemed to be no longer Outstanding under, and as defined in, the
                Senior
                Indenture, except with respect to the holder’s right to receive Underlying
                Stock (and, if applicable, any Exchange Property) and any cash in
                respect
                of interest and any fractional share of the Underlying Stock (or
                any
                Exchange Property) and any other cash due at maturity as described
                in the
                preceding paragraph under this heading.
	 	 	 
	
                Price
                  Event Acceleration

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

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

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

              

      

    

     

    
      
        
        

      

      
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                non-interest
                  bearing, senior unsecured debt obligation of the Issuer having
                  a maturity
                  equal to the term of each such remaining scheduled payment, as
                  determined
                  by the Calculation Agent.

              
	 	 	 
	 	 	The
                holder of this SPARQS shall not be entitled to receive the return
                of each
                Stated Principal Amount of this SPARQS upon a Price Event
                Acceleration.
	 	 	 
	
                No
                  Fractional Shares

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

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

              	
                if
                  the Underlying Stock (or any such other security) is listed or
                  admitted to
                  trading on a national securities exchange (other than The NASDAQ
                  Stock
                  Market LLC (the “NASDAQ”)), the last reported sale price, regular way, of
                  the principal trading session on such day on the principal national
                  securities exchange registered under the Securities Exchange Act
                  of 1934,
                  as amended (the “Exchange Act”), on which the Underlying Stock (or any
                  such other security) is listed or admitted to trading,

              
	 	 	 	 
	 	 	
                ·

              	
                if
                  the Underlying Stock (or any such other security) is a security
                  of the
                  NASDAQ, the official closing price published by the NASDAQ on such
                  day,
                  or

              
	 	 	 	 
	 	 	
                ·

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

              

      

    

     

    
      
        
        

      

      
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                principal
                  trading session on the OTC Bulletin Board on such day.

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

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

              	 	Morgan
                Stanley & Co. Incorporated (“MS & Co.”) and its
                successors.
	 	 	 
	 	 	All
                calculations with respect to the Exchange Ratio and Call Price for
                the
                SPARQS shall be made by the

      

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

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

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

              
	 	 	 
	
                Antidilution
                  Adjustments

              	 	
                The
                  Exchange Ratio shall be adjusted as follows:

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

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

              
	 	 	 
	 	 	
                3.  If
                  the Underlying Company issues rights or warrants to all holders
                  of the
                  Underlying Stock to subscribe for or purchase Underlying Stock
                  at an
                  exercise price per share less than the Closing Price of the Underlying
                  Stock on both (i) the date the
                  exercise

              

      

    

     

    
      
        
        

      

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

              
	 	 	 
	 	 	
                4.  There
                  shall be no adjustments to the Exchange Ratio to reflect cash dividends
                  or
                  other distributions paid with respect to the Underlying Stock other
                  than
                  distributions described in paragraph 2, paragraph 3 and clauses
                  (i), (iv)
                  and (v) of the first sentence of paragraph 5 and Extraordinary
                  Dividends
                  as described below.  A cash dividend or other distribution with
                  respect to the Underlying Stock shall be deemed to be an “Extraordinary
                  Dividend” if such cash dividend or distribution exceeds the immediately
                  preceding non-Extraordinary Dividend for the Underlying Stock by
                  an amount
                  equal to at least 10% of the Closing Price of the Underlying Stock
                  (as
                  adjusted for any subsequent corporate event requiring an adjustment
                  hereunder, such as a stock split or reverse stock split) on the
                  Trading
                  Day preceding the ex-dividend date (that is, the day on and after
                  which
                  transactions in the Underlying Stock on the primary U.S. organized
                  securities exchange or trading system on which the Underlying Stock
                  is
                  traded or trading system no longer carry the right to receive that
                  cash
                  dividend or that cash distribution) for the payment of
                  such

              

      

    

     

    
      
        
        

      

      
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                Extraordinary
                  Dividend (such closing price, the “Base Closing
                  Price”).  Subject to the following sentence, if an Extraordinary
                  Dividend occurs with respect to the Underlying Stock, the Exchange
                  Ratio
                  with respect to the Underlying Stock shall be adjusted on the ex-dividend
                  date with respect to such Extraordinary Dividend so that the new
                  Exchange
                  Ratio shall equal the product of (i) the then current Exchange
                  Ratio and
                  (ii) a fraction, the numerator of which is the Base Closing Price,
                  and the
                  denominator of which is the amount by which the Base Closing Price
                  exceeds
                  the Extraordinary Dividend Amount.  If any Extraordinary
                  Dividend Amount is at least 35% of the Base Closing Price, then,
                  instead
                  of adjusting the Exchange Ratio, the amount payable upon exchange
                  at
                  maturity shall be determined as described in paragraph 5 below,
                  and the
                  Extraordinary Dividend shall be allocated to Reference Basket Stocks
                  in
                  accordance with the procedures for a Reference Basket Event as
                  described
                  in clause (c)(ii) of paragraph 5 below.  The “Extraordinary
                  Dividend Amount” with respect to an Extraordinary Dividend for the
                  Underlying Stock shall equal (i) in the case of cash dividends
                  or other
                  distributions that constitute regular dividends, the amount per
                  share of
                  such Extraordinary Dividend minus the amount per share of the immediately
                  preceding non-Extraordinary Dividend for the Underlying Stock or
                  (ii) in
                  the case of cash dividends or other distributions that do not constitute
                  regular dividends, the amount per share of such Extraordinary
                  Dividend.  The value of the non-cash component of an
                  Extraordinary Dividend shall be determined on the ex-dividend date
                  for
                  such distribution by the Calculation Agent, whose determination
                  shall be
                  conclusive in the absence of manifest error.  A distribution on
                  the Underlying Stock described in clause (i), (iv) or (v) of the
                  first
                  sentence of paragraph 5 below shall cause an adjustment to the
                  Exchange
                  Ratio pursuant only to clause (i), (iv) or (v) of the first sentence
                  of
                  paragraph 5, as applicable.

              
	 	 	 
	
              	 	
                
                  5. 
                    Any of the following shall constitute a Reorganization
                    Event:  (i) the Underlying Stock is reclassified or changed,
                    including, without limitation, as a result of the issuance of
                    any tracking
                    stock by the Underlying Company, (ii) the Underlying Company
                    has been
                    subject to any merger, combination
                    or

                

              

      

    

     

    
      
        
        

      

      
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        	 	 	 consolidation
                and is not the surviving entity, (iii) the Underlying Company completes
                a
                statutory exchange of securities with another corporation (other
                than
                pursuant to clause (ii) above), (iv) the Underlying Company is liquidated,
                (v) the Underlying Company issues to all of its shareholders equity
                securities of an issuer other than the Underlying Company (other
                than in a
                transaction described in clause (ii), (iii) or (iv) above) (a “spinoff
                stock”) or (vi) the Underlying Stock is the subject of a tender or
                exchange offer or going private transaction on all of the outstanding
                shares.  If any Reorganization Event occurs, in each case as a
                result of which the holders of the Underlying Stock receive any equity
                security listed on a national securities exchange or traded on NASDAQ
                (a
                “Marketable Security”), other securities or other property, assets or cash
                (collectively “Exchange Property”), the amount payable upon exchange at
                maturity with respect to each Stated Principal Amount of this SPARQS
                following the effective date for such Reorganization Event (or, if
                applicable, in the case of spinoff stock, the ex-dividend date for
                the
                distribution of such spinoff stock) and any required adjustment to
                the
                Exchange Ratio shall be determined in accordance with the
                following:
	 	 	 	 
	 	 	 	
                (a)  if
                  the Underlying Stock continues to be outstanding, the Underlying
                  Stock (if
                  applicable, as reclassified upon the issuance of any tracking stock)
                  at
                  the Exchange Ratio in effect on the third Trading Day prior to
                  the
                  scheduled Maturity Date (taking into account any adjustments for
                  any
                  distributions described under clause (c)(i) below); and

              
	 	 	 	 
	 	 	 	
                (b)  for
                  each Marketable Security received in such Reorganization Event
                  (each a
                  “New Stock”), including the issuance of any tracking stock or spinoff
                  stock or the receipt of any stock received in exchange for the
                  Underlying
                  Stock, the number of shares of the New Stock received with respect
                  to one
                  share of Underlying Stock multiplied by the Exchange Ratio for
                  Underlying
                  Stock on the Trading Day immediately prior to the effective date
                  of the
                  Reorganization Event (the “New Stock Exchange Ratio”), as adjusted to the
                  third Trading

              

      

    

     

    
      
        
        

      

      
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        	 	 	 	 Day
                prior to the scheduled Maturity Date (taking into account any adjustments
                for distributions described under clause (c)(i) below); and
	 	 	 	 
	 	 	 	 (c)  for
                any cash and any other property or securities other than Marketable
                Securities received in such Reorganization Event (the “Non-Stock Exchange
                Property”),
	 	 	 	 	 
	 	 	 	 	
                (i)  if
                  the combined value of the amount of Non-Stock Exchange Property
                  received
                  per share of Underlying Stock, as determined by the Calculation
                  Agent in
                  its sole discretion on the effective date of such Reorganization
                  Event
                  (the “Non-Stock Exchange Property Value”), by holders of the Underlying
                  Stock is less than 25% of the Closing Price of the Underlying Stock
                  on the
                  Trading Day immediately prior to the effective date of such Reorganization
                  Event, a number of shares of the Underlying Stock, if applicable,
                  and of
                  any New Stock received in connection with such Reorganization Event,
                  if
                  applicable, in proportion to the relative Closing Prices of the
                  Underlying
                  Stock and any such New Stock, and with an aggregate value equal
                  to the
                  Non-Stock Exchange Property Value multiplied by the Exchange Ratio
                  in
                  effect for the Underlying Stock on the Trading Day immediately
                  prior to
                  the effective date of such Reorganization Event, based on such
                  Closing
                  Prices, in each case as determined by the Calculation Agent in
                  its sole
                  discretion on the effective date of such Reorganization Event;
                  and the
                  number of such shares of Underlying Stock or any New Stock determined
                  in
                  accordance with this clause (c)(i) shall be added at the time of
                  such
                  adjustment to the Exchange Ratio in subparagraph (a) above and/or
                  the New
                  Stock Exchange Ratio in subparagraph (b) above, as applicable,
                  or

              
	 	 	 	 	 
	 	 	 	 	
                (ii)  if
                  the Non-Stock Exchange Property Value is equal to or exceeds 25%
                  of the
                  Closing Price of Underlying Stock on the Trading Day immediately
                  prior to
                  the effective date relating to such Reorganization Event or, if
                  the

              

      

    

     

    
      
        
        

      

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

              

      

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	 	 	
                Trading
                  Day immediately prior to the effective date of such Reorganization
                  Event
                  and (c) 0.3333333.

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

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

              
	 	 	 	 	 
	 	 	 	
                (y)

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

              
	 	 	 	 	 
	 	 	 	
                (z)

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

              
	 	 	 	 
	 	 	In
                each case, the applicable Exchange Ratio (including for this purpose,
                any
                New Stock Exchange Ratio or Basket Stock Exchange Ratio) shall be
                determined by the Calculation Agent on the third Trading Day prior
                to the
                scheduled Maturity Date. 
	 	 	 	 
	 	 	For
                purposes of paragraph 5 above, in the case of a consummated tender
                or
                exchange offer or going-private transaction involving consideration
                of
                particular types, Exchange Property shall be deemed to include the
                amount
                of cash or other property delivered by the offeror in the tender
                or
                exchange offer (in an amount determined on the basis of the rate
                of
                exchange in such tender or exchange offer or going-private
                transaction).  In the event of a tender or exchange offer or a
                going-private transaction with respect to Exchange Property in which
                an
                offeree may elect to receive cash or other property, Exchange Property
                shall be deemed to include the kind and amount of cash and other
                property
                received by offerees who elect to receive cash. 
	 	 	 	 
	 	 	Following
                the occurrence of any Reorganization Event referred to in paragraphs
                4 or
                5 above, (i) references to 

      

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	“Underlying
                Stock” under “No Fractional Shares,” “Closing Price” and “Market
                Disruption Event” shall be deemed to also refer to any New Stock or
                Reference Basket Stock, and (ii) all other references in this SPARQS
                to
                “Underlying Stock” shall be deemed to refer to the Exchange Property into
                which this SPARQS is thereafter exchangeable and references to a
“share”
                or “shares” of Underlying Stock shall be deemed to refer to the applicable
                unit or units of such Exchange Property, including any New Stock
                or
                Reference Basket Stock, unless the context otherwise
                requires.  The New Stock Exchange Ratio(s) or Basket Stock
                Exchange Ratios resulting from any Reorganization Event described
                in
                paragraph 5 above or similar adjustment under paragraph 4 above shall
                be
                subject to the adjustments set forth in paragraphs 1 through 5
                hereof.
	 	 	 	 
	 	 	If
                a
                Reference Basket Event occurs, the Issuer shall, or shall cause the
                Calculation Agent to, provide written notice to the Trustee at its
                New
                York office, on which notice the Trustee may conclusively rely, and
                to DTC
                of the occurrence of such Reference Basket Event and of the three
                Reference Basket Stocks selected as promptly as possible and in no
                event
                later than five Business Days after the date of the Reference Basket
                Event.
	 	 	 	 
	 	 	No
                adjustment to any Exchange Ratio (including for this purpose, any
                New
                Stock Exchange Ratio or Basket Stock Exchange Ratio) shall be required
                unless such adjustment would require a change of at least 0.1% in
                the
                Exchange Ratio then in effect.  The Exchange Ratio resulting
                from any of the adjustments specified above shall be rounded to the
                nearest one hundred-thousandth, with five one-millionths rounded
                upward.  Adjustments to the Exchange Ratios shall be made up to
                the close of business on the third Trading Day prior to the scheduled
                Maturity Date.
	 	 	 	 
	 	 	No
                adjustments to the Exchange Ratio or method of calculating the Exchange
                Ratio shall be made other than those specified above.
	 	 	 	 
	 	 	The
                Calculation Agent shall be solely responsible for the determination
                and
                calculation of any adjustments to the Exchange Ratio, any New Stock
                Exchange Ratio or

      

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	Basket
                Stock Exchange Ratio or method of calculating the Exchange Property
                Value
                and of any related determinations and calculations with respect to
                any
                distributions of stock, other securities or other property or assets
                (including cash) in connection with any corporate event described
                in
                paragraphs 1 through 5 above, and its determinations and calculations
                with
                respect thereto shall be conclusive in the absence of manifest
                error.
	 	 	 	 
	 	 	The
                Calculation Agent shall provide information as to any adjustments
                to the
                Exchange Ratio, or to the method of calculating the amount payable
                upon
                exchange at maturity of the SPARQS made pursuant to paragraph 5 above,
                upon written request by the holder of this SPARQS.
	 	 	 	 
	
                Market
                  Disruption Event

              	 	Market
                Disruption Event means, with respect to the Underlying Stock:
	 	 	 	 	 
	 	 	 	(i)  a
                suspension, absence or material limitation of trading of the Underlying
                Stock on the primary market for the Underlying Stock for more than
                two
                hours of trading or during the one-half hour period preceding the
                close of
                the principal trading session in such market; or a breakdown or failure
                in
                the price and trade reporting systems of the primary market for the
                Underlying Stock as a result of which the reported trading prices
                for the
                Underlying Stock during the last one-half hour preceding the close
                of the
                principal trading session in such market are materially inaccurate;
                or the
                suspension, absence or material limitation of trading on the primary
                market for trading in options contracts related to the Underlying
                Stock,
                if available, during the one-half hour period preceding the close
                of the
                principal trading session in the applicable market, in each case
                as
                determined by the Calculation Agent in its sole discretion;
                and
	 	 	 	 	 
	 	 	 	(ii)  a
                determination by the Calculation Agent in its sole discretion that
                any
                event described in clause (i) above materially interfered with the
                ability
                of the Issuer or any of its affiliates to unwind or adjust all or
                a
                material portion of the hedge with respect to this issuance of
                SPARQS.

      

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

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

              
	 	 	 
	
                Alternate
                  Exchange Calculation

              	 	 
	
                 
                  in Case of an Event of Default

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

              

      

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      
        	 	 	
                case
                  plus accrued but unpaid interest to but excluding the date of
                  acceleration; provided that if the Issuer has called the SPARQS
                  in accordance with the Morgan Stanley Call Right, the amount declared
                  due
                  and payable upon any such acceleration shall be an amount in cash
                  for each
                  Stated Principal Amount of this SPARQS equal to the Call Price
                  for the
                  Call Date specified in the Issuer’s notice of mandatory exchange, plus
                  accrued but unpaid interest to but excluding the date of
                  acceleration.

              

      

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

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

       

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

       

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

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      and
        at
        which the applicable dealer commits to execute a contract.  If such
        bid quotations are not available, such payment will be made in the Specified
        Currency.  All currency exchange costs will be borne by the holder of
        this Note by deductions from such payments.

       

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

       

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

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

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

       

      
        	
                DATED:

              	
                MORGAN
                  STANLEY

              
	 	 	 
	 	 	 
	 	
                By:

              	 
	 	 	Name:
	 	 	Title:

      

       

      
        	
                TRUSTEE’S
                  CERTIFICATE 

                    
                  OF AUTHENTICATION

              	 
	 	 
	
                This
                  is one of the Notes referred 

                    
                  to in the within-mentioned 

                    
                  Senior Indenture.

              	 
	 	 
	
                THE
                  BANK OF NEW YORK,
                  as
                  

                    
                  Trustee

              	 
	 	 	 
	 	 	 
	
                By:

              	 	 
	 	Authorized
                Signatory	 
	
              	 

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      FORM
        OF REVERSE OF SECURITY

       

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

      

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

       

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

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

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

       

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

       

      If
        the face hereof indicates that this
        Note is subject to “Modified Payment upon Acceleration or Redemption,” then (i)
        if the principal hereof is declared to be due and payable as described in
        the
        preceding paragraph, the amount of principal due and payable with respect
        to
        this Note shall be limited to the aggregate principal amount hereof multiplied
        by the sum of the Issue Price specified on the face hereof (expressed as
        a
        percentage of the aggregate principal amount) plus the original issue discount
        accrued from the Interest Accrual Date to the date of declaration (expressed
        as
        a percentage of the aggregate principal amount), with the amount of original
        issue discount accrued being calculated using a constant yield method (as
        described in the next paragraph), (ii) for the purpose of any vote of
        securityholders taken pursuant to the Senior Indenture prior to the acceleration
        of payment of this Note, the principal amount hereof shall equal the amount
        that
        would be due and payable hereon, calculated as set forth in clause (i) 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 

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      acceleration
        of payment of this Note, the principal amount hereof shall equal the amount
        of
        principal due and payable with respect to this Note, calculated as set forth
        in
        clause (i) above.

       

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

       

      If
        the face hereof indicates that this
        Note is subject to “Tax Redemption and Payment of Additional Amounts,” this Note
        may be redeemed, as a whole, at the option of the Issuer at any time prior
        to
        maturity, upon the giving of a notice of redemption as described below, at
        a
        redemption price equal to 100% of the principal amount hereof, together with
        accrued interest to the date fixed for redemption (except that if this Note
        is
        subject to “Modified Payment upon Acceleration or Redemption,” the amount of
        principal so payable will be limited to the aggregate principal amount hereof
        multiplied by the sum of the Issue Price specified on the face hereof (expressed
        as a percentage of the aggregate principal amount) plus the original issue
        discount accrued from the Interest Accrual Date to the date of redemption
        (expressed as a percentage of the aggregate principal amount), with the amount
        of original issue discount accrued being calculated using a constant yield
        method (as described above)), if the Issuer determines that, as a result
        of any
        change in or amendment to the laws (including a holding, judgment or as ordered
        by a court of competent jurisdiction), or any regulations or rulings promulgated
        thereunder, of the United States or of any political subdivision or taxing
        authority thereof or therein affecting taxation, or any change in official
        position regarding the application or interpretation of such laws, regulations
        or rulings, which change or amendment occurs, becomes effective or, in the
        case
        of a change in official position, is announced on or after the Initial Offering
        Date hereof, the Issuer has or will become obligated to pay Additional Amounts,
        as defined below, with respect to this Note as described below.  Prior
        to the giving of any notice of redemption pursuant to this paragraph, the
        Issuer
        shall deliver to the Trustee (i) a certificate stating that the Issuer is
        entitled to effect such redemption and setting forth a statement of facts
        showing that the conditions precedent to the right of the Issuer to so redeem
        have occurred, and (ii) an opinion of independent legal counsel
        satisfactory to the Trustee to such effect based on such statement of facts;
        provided that no such notice of redemption shall be given earlier than
        60 calendar days prior to the earliest date on which the Issuer would be
        obligated to pay such Additional Amounts if a payment in respect of this
        Note
        were then due.

       

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

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

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

       

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

       

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

       

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

       

      Except
        as
        set forth below, if the principal of, premium, if any, or interest on this
        Note
        is payable in a Specified Currency other than U.S. dollars and such Specified
        Currency is not available to the Issuer for making payments hereon due to
        the
        imposition of exchange controls or other circumstances beyond the control
        of the
        Issuer or is no longer used by the government of the country issuing such
        currency or for the settlement of transactions by public institutions within
        the
        international banking community, then the Issuer will be entitled to satisfy
        its
        obligations to the holder of this Note by making such payments in U.S. dollars
        on the basis of the Market Exchange Rate on the date of such payment or,
        if the
        Market Exchange Rate is not available on such date, as of the most recent
        practicable date; provided, however, that if the euro

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      has
        been
        substituted for such Specified Currency, the Issuer may at its option (or
        shall,
        if so required by applicable law) without the consent of the holder of this
        Note
        effect the payment of principal of, premium, if any, or interest on any Note
        denominated in such Specified Currency in euro in lieu of such Specified
        Currency in conformity with legally applicable measures taken pursuant to,
        or by
        virtue of, the Treaty establishing the European Community, as
        amended.  Any payment made under such circumstances in U.S. dollars or
        euro where the required payment is in an unavailable Specified Currency will
        not
        constitute an Event of Default.  If such Market Exchange Rate is not
        then available to the Issuer or is not published for a particular Specified
        Currency, the Market Exchange Rate will be based on the highest bid quotation
        in
        The City of New York received by the Exchange Rate Agent at approximately
        11:00
        a.m., New York City time, on the second Business Day preceding the date of
        such
        payment from three recognized foreign exchange dealers (the “Exchange
        Dealers”) for the purchase by the quoting Exchange Dealer of the
        Specified Currency for U.S. dollars for settlement on the payment date, in
        the
        aggregate amount of the Specified Currency payable to those holders or
        beneficial owners of Notes and at which the applicable Exchange Dealer commits
        to execute a contract.  One of the Exchange Dealers providing
        quotations may be the Exchange Rate Agent unless the Exchange Rate Agent
        is an
        affiliate of the Issuer.  If those bid quotations are not available,
        the Exchange Rate Agent shall determine the market exchange rate at its sole
        discretion.

       

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

       

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

       

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

       

      With
        respect to moneys paid by the Issuer and held by the Trustee or any Paying
        Agent
        for payment of the principal of or interest or premium, if any, on any Notes
        that remain unclaimed at the end of two years after such principal, interest
        or
        premium shall have become due and payable (whether at maturity or upon call
        for
        redemption or otherwise), (i) the Trustee or such Paying Agent shall notify
        the
        holders of such Notes that such moneys shall be repaid to the 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 

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      of
        the
        Trustee or such Paying Agent with respect to such moneys shall thereupon
        cease,
        without, however, limiting in any way any obligation that the Issuer may
        have to
        pay the principal of or interest or premium, if any, on this Note as the
        same
        shall become due.

       

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

       

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

       

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

       

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

       

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

       

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

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        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.  

        

         

         
          
            

          

        

         

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

                                                              

        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.

                

        

         

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

         

        OPTION
          TO ELECT REPAYMENT

         

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

        
           

          
            
              
                

              

               

              
                
 

              
                

              

            

          

        

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

         

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

         

         

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

        

         

         

         

        38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]