FINAL TERMS KONDITIONENBLATT. No. G362. dated 3 July 2012

Transkript

1 EXECUTION VERSION FINAL TERMS KONDITIONENBLATT No. G362 dated 3 July 2012 in connection with the Base Prospectus dated 27 June 2012, as supplemented by a supplement from time to time, regarding the Euro 2,000,000,000 German Structured Securities Programme of Morgan Stanley B.V. (incorporated with limited liability in the Netherlands) as issuer and Morgan Stanley (incorporated under the laws of the State of Delaware in the United States of America) as guarantor KONDITIONENBLATT Nr. G362 vom 3. Juli 2012 im Zusammenhang mit dem Basisprospekt vom 27. Juni 2012, wie durch einen Nachtrag von Zeit zu Zeit ergänzt, für das Euro German Structured Securities Programme der Morgan Stanley B.V. (eingetragen mit beschränkter Haftung in den Niederlanden) als Emittentin und Morgan Stanley (gegründet nach dem Recht des Staates Delaware in den Vereinigten Staaten von Amerika) als Garantin

2 - 2-3 July 2012 ISIN: DE000MS0KHG4 Common Code: Other securities code (WKN): MS0KHG Issue of up to Euro 30,000,000 Fixed Rate Notes due 2 August 2017 (Series G362) (the "Notes") under the Euro 2,000,000,000 German Structured Securities Programme Emission von bis zu Euro festverzinsliche Schuldverschreibungen fällig am 2. August 2017 (Serie G362) (die "Schuldverschreibungen") unter dem Euro German Structured Securities Programme The Final Terms are issued to give details of an issue of Notes under the Euro 2,000,000,000 German Structured Securities Programme of Morgan Stanley B.V. (the "Programme") and are to be read in conjunction with the Base Prospectus dated 27 June 2012, as supplemented by a supplement from time to time. The terms and conditions applicable to the Notes (the "Conditions") and the English or the German language translation thereof, as the case may be, if any, are attached to these Final Terms. They replace in full the Terms and Conditions of the Notes as set out in the Base Prospectus and take precedence over any conflicting provisions of these Final Terms. Das Konditionenblatt enthält Angaben zur Begebung von Schuldverschreibungen unter dem Euro German Structured Securities Programme der Morgan Stanley B.V. (das "Programm") und ist in Verbindung mit dem Basisprospekt vom 27. Juni 2012, wie durch einen Nachtrag von Zeit zu Zeit ergänzt, zu lesen. Die für die Schuldverschreibungen geltenden Emissionsbedingungen (die "Bedingungen") sowie eine etwaige englischsprachige bzw. deutschsprachige Übersetzung sind diesem Konditionenblatt beigefügt. Die Bedingungen ersetzen in Gänze die im Basisprospekt abgedruckten Emissionsbedingungen und gehen etwaigen abweichenden Bestimmungen dieses Konditionenblattes vor. Save as disclosed in item 17 below, so far as the Issuer is aware, no person involved in the offer of the Notes has an interest material to the offer. Mit Ausnahme des unter dem nachfolgenden Punkt 17 Dargelegten, ist, soweit es der Emittentin bekannt ist, keine weitere Person beteiligt, welche an dem Angebot Interessen hat, die von ausschlaggebender Bedeutung sind. Capitalised terms used in the section relating to Index Linked Notes, Equity Linked Notes and Commodity Linked Notes and not otherwise defined herein or in the Conditions shall have the meaning set out in the 2002 ISDA Equity Derivatives Definitions, the 2005 ISDA Commodity Definitions and, as the case may be, in the 2003 ISDA Credit Derivatives Definitions published by the International Swaps and Derivatives Association, Inc., save that any references to the 'Related Confirmation' shall be deemed to refer to the 'relevant Final Terms. In den Abschnitten über Index-, Aktien- und Warenbezogene Schuldverschreibungen haben groß geschriebene Begriffe, soweit sie hier nicht anders definiert sind und soweit sich aus diesem Konditionenblatt nichts anders ergibt, dieselbe Bedeutung wie in den 2002 ISDA Equity Derivatives Definitions, den 2005 ISDA Commodity Definitions bzw. den 2003 ISDA Credit Derivatives Definitions, veröffentlicht durch die International Swap and Derivatives Association, Inc. Bezugnahmen in den 2003 ISDA Credit Derivatives Definitions auf die "Related Confirmation" gelten als Bezugnahmen auf das jeweilige "Konditionenblatt". The Issuer accepts responsibility for the information contained in these Final Terms and declares, that having taken all reasonable care to ensure that such is the case, the information contained in these Final Terms is, to the best knowledge, in accordance with the facts and contains no omission likely to affect its import, save for the information regarding (the issuer(s) of) the relevant underlying(s). The information included herein with respect to (the issuer(s) of) the relevant underlying(s) consists of extracts from, or summaries of, annual reports and other publicly available information. The Issuer makes no representation

3 - 3- that any publicly available information or any other publicly available documents regarding (the issuer(s) of) the relevant underlying(s) are accurate and complete and does not accept any responsibility in respect of such information. There can be no assurance that all events occurring prior to the date of these Final Terms that would affect the trading price of the relevant underlying(s) (and therefore the trading price and value of the Notes) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure or failure to disclose material future events concerning the relevant underlying(s) could affect the trading price and value of the Notes. Die Emittentin übernimmt die Verantwortung für die Angaben in diesem Konditionenblatt und bestätigt, dass sie mit angemessener Sorgfalt überprüft hat, dass die in diesem Konditionenblatt enthaltenen Angaben nach bestem Wissen richtig sind und keine Angaben ausgelassen wurden, deren Auslassung die hierin enthaltenen Angaben irreführend erscheinen lassen könnte, mit Ausnahme der Informationen, die (den) (die) (Emittenten (der) (des)) maßgebliche(n) Basiswert(e) betreffen. Die hierhin enthaltenen Informationen, die (den) (die) (Emittenten (der) (des)) maßgebliche(n) Basiswert(e) betreffen, wurden Auszügen oder Zusammenfassungen von Geschäftsberichten oder anderen öffentlich verfügbaren Informationsquellen entnommen. Die Emittentin übernimmt keine Gewährleistung dahingehend, dass jegliche öffentlich zugänglichen Informationen oder anderweitige Dokumente betreffend den Emittenten der maßgebliche(n) Basiswert(e) richtig und vollständig sind und übernimmt hinsichtlich solcher Informationen keine Verantwortung. Es kann nicht zugesichert werden, dass alle Ereignisse, die vor dem Datum dieses Konditionenblatts eingetreten sind, die den Marktpreis (der) (des)) maßgebliche(n) Basiswert(e) (und somit den Marktpreis und den Wert der Schuldverschreibungen) beeinträchtigen können, veröffentlicht worden sind. Eine nachträgliche Veröffentlichung solcher Ereignisse oder die Veröffentlichung oder das Unterlassen der Veröffentlichung von wesentlichen zukünftigen Ereignissen, welche die (der) (des)) maßgebliche(n) Basiswert(e) betreffen, können sich negativ auf den Marktpreis oder den Wert der Schuldverschreibungen auswirken. These Final Terms do not constitute an offer to sell or the solicitation of an offer to buy any Notes or an investment recommendation. Neither the delivery of these Final Terms nor any sale hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Issuer or the issuer(s) of the Underlying Securities since the date hereof or that the information contained herein is correct as of any date subsequent to this date. Any significant new factor, material mistake or inaccuracy relating to the information contained herein which is capable of affecting the assessment of the Notes and which arises or is noted since the date hereof and prior to the end of the public offer period or, as the case may be, the time when trading on a regulated market begins shall be published in a supplement hereto. Dieses Konditionenblatt stellt kein Angebot oder eine Einladung dar, Schuldverschreibungen zu verkaufen oder zu kaufen und ist auch nicht als Anlageempfehlung zu betrachten. Weder die Übergabe dieses Konditionenblatts bzw. der Verkauf von Schuldverschreibungen hierunter bedeutet, dass keine Verschlechterung der Finanzlage der Emittentin oder der Emittenten der Basiswerte seit dem Datum dieses Konditionenblatts eingetreten ist oder dass die hierin enthaltenen Informationen auch nach diesem Datum zutreffend sind. Jeder wichtige neue Umstand oder jede wesentliche Unrichtigkeit oder Ungenauigkeit in Bezug auf hierhin enthaltene Angaben, die die Beurteilung der Schuldverschreibungen beeinflussen können und die nach diesem Datum und vor dem Schluss des öffentlichen Angebots oder, sofern einschlägig, der Einführung oder Eröffnung des Handels an einem geregelten Markt auftreten oder festgestellt werden, müssen in einem Nachtrag hierzu genannt werden. The distribution of these Final Terms and the offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Issuer to inform themselves about and to observe any such restrictions. For a further description of certain restrictions on the offering and sale of the Series, see Part F "Subscription and Sale" of the Base Prospectus as supplemented or amended by these Final Terms. The Final Terms will be published on the following website: Der Vertrieb dieses Konditionenblatts sowie das Angebot, der Verkauf und die Lieferung von Schuldverschreibungen kann in bestimmten Ländern gesetzlich beschränkt sein. Personen, die in den Besitz dieses Konditionenblatts gelangen, sind von der Emittentin aufgefordert, sich selbst über solche

4 - 4- Beschränkungen zu unterrichten und diese zu beachten. Wegen der Darstellung bestimmter Beschränkungen betreffend Angebot und Verkauf von Serien wird auf den im Basisprospekt enthaltenen Abschnitt F "Subscription and Sale" verwiesen, der durch dieses Konditionenblatt ergänzt wird. Das Konditionenblatt wird auf der folgenden website veröffentlicht: 1. (i) Issuer: Emittentin: (ii) Guarantor: Garantin: 2. Series Number: Nummer der Serie von Schuldverschreibungen: 3. Language of Conditions: Sprache der Bedingungen: 4. Specified Currency or Currencies: Währung(en): 5. Aggregate Principal Amount: Gesamtnennbetrag: Series: der Serie: 6. Issue Price: Emissionspreis: 7. Specified Denomination(s): Nennbetrag/-beträge: 8. Issue Date: Begebungstag 9. Maturity Date: Fälligkeitstag: 10. (i) Interest Basis: Zinsmodalität: (ii) Day Count Fraction: Zinstagequotient: 11. (i) Redemption/Payment Basis: Rückzahlungsmodalität: Morgan Stanley B.V. Morgan Stanley B.V. Morgan Stanley Morgan Stanley G362 G362 German and English (German controlling) Deutsch und Englisch (deutscher Text maßgeblich) Euro ("EUR") Euro ("EUR") Up to EUR 30,000,000 Bis zu EUR Up to EUR 30,000,000 Bis zu EUR per cent. of the Specified Denomination (fees paid to a distribution partner (if any) will be disclosed upon request) 100 % des Nennbetrags (etwaige an eine Vertriebsstelle zu zahlende Gebühren werden auf Anfrage offengelegt) EUR 100 EUR August August August August 2017 Fixed Rate Notes (further details see item 18 and Appendix A). Fest verzinsliche Schuldverschreibungen (weitere Einzelheiten siehe Ziffer 18 sowie Anhang A). 30/360 (unadjusted) 30/360 (unadjusted) Redemption at par Rückzahlung zum Nennbetrag

5 - 5- (ii) Protection Amount: Kapitalschutz: 12. Change of Interest or Redemption/Payment Basis: Wechsel der Zins- oder Rückzahlungsmodalität: 13. Put/Call Options: Gläubigerkündigungsrechte/ Kündigungsrechte der Emittentin: 14. (i) Listing: Börsenzulassung: Application will be made for admission to trading of the Notes as of 2 August 2012 on the unregulated market (Freiverkehr) of the Frankfurt Stock Exchange (Scoach Premium) and on the unregulated market (Freiverkehr) of the Stuttgart Stock Exchange (EUWAX). Die Zulassung der Schuldverschreibungen zum Handel ab dem 2. August 2012 im Freiverkehr der Frankfurter Wertpapierbörse (Scoach Premium) und der Stuttgarter Börse (EUWAX) wird beantragt. (ii) Last Trading Date: Letzter Handelstag: Three Business Days prior to the Maturity Date Drei Geschäftstage vor dem Fälligkeitstag 15. Estimated Expenses: Geschätzte Gesamtkosten: 16. Use of Proceeds: Verwendung der Erträge: 17. Material Interest: Interessen von ausschlaggebender Bedeutung: PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE BESTIMMUNGEN ZUR VERZINSUNG 18. Fixed Rate Note Provisions: Festzinsmodalitäten: Applicable (further details see in Appendix A) Anwendbar (weitere Einzelheiten siehe Anhang A) (i) Rate(s) of Interest: Zinssatz (Zinssätze): See Appendix A Siehe Anhang A (ii) Interest Payment Date(s): Zinszahlungstag(e): (iii) Fixed Coupon Amount(s): Festzinsbetrag (Festzinsbeträge): (iv) Broken Amount(s): Stückzins(en): 2 August in each year 2. August in jedem Jahr

6 - 6- (v) Other terms relating to the method of calculating interest: Sonstige Bestimmungen zur Zinsberechnung: (vi) Yield: Emissionsrendite: (vii) Method of calculating the yield: Berechnungsmethode der Emissionsrendite: 19. Floating Rate Note Provisions: Modalitäten bei variabler Verzinsung: 20. Constant Maturity Swap Floating Rate Notes / Constant Maturity Swap Spread-Linked Notes: Constant Maturity Swap variabel verzinsliche Schuldverschreibungen / Schuldverschreibungen abhängig von einer Constant Maturity Swap Spanne: 21. Zero Coupon Note Provisions: Null-Kupon Modalitäten: 22. Interest Bearing Equity Linked Notes: Bestimmungen über die Verzinsung von Aktienbezogenen Schuldverschreibungen: PROVISIONS RELATING TO REDEMPTION RÜCKZAHLUNGSMODALITÄTEN 23. Automatic Exercise of the Note Right ( 1(1)): Automatische Ausübung des Schuldverschreibungsrechts ( 1(1)): 24a. Call Option [( 4(3))]: Vorzeitige Rückzahlung nach Wahl der Emittentin [( 4(3))]: 24b. Tax Call ( 4(2)): Vorzeitige Rückzahlung aus steuerlichen Gründen ( 4(2)): 25. Put Option [( 4([3][4]))]: Vorzeitige Rückzahlung nach Wahl der Gläubiger [( 4 ([3][4]))]: Applicable Anwendbar Applicable Anwendbar 26. 4(3) Early Redemption following the occurrence of: 4(3) Vorzeitige Rückzahlung bei Vorliegen von:

7 - 7- (i) Change in Law: Rechtsänderung: (ii) Hedging Disruption: Hedging-Störung: (iii) Increased Cost of Hedging: Gestiegene Hedging Kosten: (iv) Insolvency Filing: Insolvenzantrag: (v) Further Events: Weitere Ereignisse: 27. Final Redemption Amount of each Note: Rückzahlungsbetrag: 28. Optional / Early Redemption Amount of each Note payable on redemption on an Event of Default or Tax Call and/ or the method of calculating the same (if required or if different from that set out in 4): Wahlrückzahlungsbetrag / Vorzeitige(r) Rückzahlungsbetrag (-beträge) bei Kündigungen oder Vorzeitiger Rückzahlung aus steuerlichen Gründen und Methode zu dessen (deren) Berechnung (falls erforderlich oder falls abweichend von 4): Specified Denomination Nennbetrag See Appendix A Siehe Anhang A PROVISIONS RELATING TO INDEX LINKED NOTES BESTIMMUNGEN FÜR INDEXBEZOGENE SCHULDVERSCHREIBUNGEN 29. Index Linked Note Provisions: Indexbezogene Modalitäten: PROVISIONS RELATING TO CURRENCY LINKED NOTES BESTIMMUNGEN FÜR WÄHRUNGSBEZOGENE SCHULDVERSCHREIBUNGEN 30. Currency Linked Note Provisions: Währungsbezogene Modalitäten: PROVISIONS RELATING TO COMMODITY LINKED NOTES BESTIMMUNGEN FÜR WARENBEZOGENE SCHULDVERSCHREIBUNGEN 31. Commodity Linked Note Provisions: Warenbezogene Modalitäten:

8 - 8- PROVISIONS RELATING TO EQUITY LINKED NOTES BESTIMMUNGEN FÜR AKTIENBEZOGENE SCHULDVERSCHREIBUNGEN 32. Equity Linked Note Provisions: Aktien-Modalitäten: PROVISIONS RELATING TO BOND LINKED NOTES BESTIMMUNGEN FÜR ANLEIHEBEZOGENEN SCHULDVERSCHREIBUNGEN 33. Bond Linked Note Provisions: Anleihe-Modalitäten: PROVISIONS RELATING TO FUTURES LINKED NOTES BESTIMMUNGEN FÜR FUTURESBEZOGENEN SCHULDVERSCHREIBUNGEN 34. Futures Linked Note Provisions: Futures-Modalitäten: PROVISIONS RELATING TO EXCHANGEABLE NOTES BESTIMMUNGEN FÜR UMTAUSCH-SCHULDVERSCHREIBUNGEN 35. Exchangeable Note Provisions: Umtauschmodalitäten: PROVISIONS RELATING TO CREDIT LINKED NOTES BESTIMMUNGEN FÜR KREDITBEZOGENE SCHULDVERSCHREIBUNGEN 36. Credit Linked Note Provisions: Kreditbezogene Modalitäten: PROVISIONS RELATING TO DUAL CURRENCY NOTES BESTIMMUNGEN FÜR DOPPELWÄHRUNGS-SCHULDVERSCHREIBUNGEN 37. Dual Currency Provisions: Doppelwährungs-Modalitäten: GENERAL PROVISIONS APPLICABLE TO THE NOTES ALLGEMEINE BESTIMMUNGEN 38. Form of Notes: Verbriefung: 39. Relevant Financial Centre(s) or other special provisions relating to Payment Days ( 5(2)): Finanzzentrum (-zentren) oder andere spezielle Vereinbarungen in bezug auf Zahltage( 5(2)): 40. Details relating to Partly Paid Notes: Einzelheiten in bezug auf Teileingezahlte Schuldverschreibungen: 41. Rebalancing: Rebalancing: Global Note Globalurkunde TARGET, London and Frankfurt am Main TARGET, London und Frankfurt am Main

9 Redenomination, renominalisation and reconventioning provisions: Währungsumstellung, Nennwertumstellung und Umstellungsbestimmungen: 43. Consolidation Provisions: Konsolidierungsbestimmungen: 44. Additional Provisions: Weitere Bestimmungen: Post-Issuance Information: Informationen nach erfolgter Emission: 45. Tax Gross-up (payment of Additional Amounts) ( 6): Steuer Gross-up (Zahlung von Zusätzlichen Beträgen) ( 6): 46. Rating: Rating: Applicable Anwendbar DISTRIBUTION ANGABEN ZUR PLATZIERUNG 47. Method of Distribution: Vertriebsmethode: 48. (i) If syndicated, names of Managers: Falls syndiziert, Namen der Manager: Non-Syndicated Nicht syndiziert (ii) Firm commitment: Feste Zusage: (iii) No firm commitment/best efforts arrangement: Keine feste Zusage/zu den bestmöglichen Bedingungen: 49. Intermediaries in Secondary Trading: Intermediäre im Sekundärhandel: 50. Entity accepting subscriptions: Stelle, die Zeichnungen entgegennimmt: None Keine Morgan Stanley & Co. International plc Morgan Stanley & Co. International plc 51. Non-exempt Offer: An offer of Notes may be made other than pursuant to Article 3(2) of the Prospectus Directive in Germany, Austria and Luxembourg (the "Public Offer Jurisdictions") during the period from, and including, 3 July 2012 to, and including, 30 July 2012 (the "Offer Period").

10 - 10- Prospektpflichtiges Angebot: Ein Angebot kann außerhalb des Ausnahmebereichs gemäß 3(2) der Prospektrichtlinie in Deutschland, Österreich und Luxemburg (die "Öffentlichen Angebotsstaaten") innerhalb des Zeitraumes vom 3. Juli 2012 (einschließlich) bis zum 30. Juli 2012 (einschließlich) (die "Angebotsfrist") durchgeführt werden. 52. Subscription period: Zeitraum für die Zeichnung: The Notes may be subscribed from, and including, 3 July 2012 up to, and including, 1 p.m. (Frankfurt time) on 30 July 2012, subject to early termination and extension within the discretion of the Issuer. In der Zeit vom 3. Juli 2012 bis 13:00 Uhr (Frankfurter Zeit) (einschließlich) am 30. Juli 2012 können die Schuldverschreibungen gezeichnet werden, vorbehaltlich einer Verkürzung oder Verlängerung des Vertriebszeitraumes im Ermessen der Emittentin. 53. Consent to use the Base Prospectus: Einwilligung zur Verwendung des Basisprospektes: Morgan Stanley & Co. International plc and each financial intermediary appointed by Morgan Stanley & Co. International plc and each financial intermediary appointed by such financial intermediary placing or subsequently reselling the Notes is entitled to use and to rely upon the Base Prospectus (including any supplements thereto and these Final Terms). The Base Prospectus may only be delivered to potential investors together with all supplements published before the respective date of such delivery. Any supplement to the Base Prospectus is available for viewing in electronic form on the website of the Luxembourg Stock Exchange ( When using the Base Prospectus, each relevant financial intermediary must ensure that it complies with all applicable laws and regulations in force in the respective jurisdiction at the time and any relevant selling restrictions. Morgan Stanley & Co. International plc und jeder Finanzintermediär, der von Morgan Stanley & Co. International plc beauftragt wurde und jeder Finanzintermediär, der von Yes, during the period from, and including, 3 July 2012 up to, and including, 1 p.m. (Frankfurt time) on 30 July 2012 in the Public Offer Jurisdictions only. Ja, im Zeitraum vom 3. Juli 2012 bis 13:00 Uhr (Frankfurter Zeit) (einschließlich) am 30. Juli 2012 in den Öffentlichen Angebotsstaaten.

11 - 11- diesem Finanzintermediär beauftragt wurde, die die Schuldverschreibungen plaziereren oder nachfolgend weiter verkaufen, ist berechtigt, den Basisprospekt (einschließlich etwaiger Nachträge dazu und dieses Konditionenblatt) zu nutzen und sich darauf zu berufen. Der Basisprospekt darf potentiellen Investoren nur zusammen mit sämtlichen bis zum Datum der jeweiligen Übergabe veröffentlichten Nachträgen übergeben werden. Jeder Nachtrag zum Basisprospekt kann in elektronischer Form auf der Internetseite der Wertpapierbörse Luxemburg ( eingesehen werden. Bei der Nutzung des Basisprospektes hat jeder maßgebliche Finanzintermediär sicherzustellen, dass er alle anwendbaren, in der jeweiligen Jurisdiktion zum betreffenden Zeitpunkt geltenden Gesetze und Rechtsvorschriften und jede maßgebliche Verkaufsbeschränkungen beachtet. 54. Subscription Agreement (if any): Übernahmevertrags (soweit vorhanden): 55. Commissions: Provisionen: (i) (ii) Management/Underwriting Commission: Management- und Übernahmeprovision: Selling Commission (specify): Verkaufsprovision (angeben): (iii) Listing Commission: Börsenzulassungsprovision: (iv) Other: Sonstige: 56. Application Process: Zuteilungsverfahren: 1.00 per cent. of the Issue Price (subscription surcharge) and 1.00 per cent. of the Specified Denomination (Upfront Fee). 1,00 % des Emissionspreises (Zeichnungsgebühr) und 1,00 % des Nennbetrages (Vorabgebühr).

12 Minimum and/or maximum amount of application: Mindest- und/oder Höchstbetrag der Zeichnung: 58. Ordinary subscription rights and preemptive rights: Bezugs- und Vorwegszeichnungsrechte: 59. Process for notification: Verfahren zur Meldung zugeteilter Beträge: 60. Categories of potential investors: Kategorien potenzieller Investoren: 61. Information with regard to the manner and date of the offer: Informationen zu der Art und Weise und des Termins des Angebots: 62. Minimum Trading Lot: Minimale Handelsmenge: 63. If non-syndicated, name of Manager: Falls nicht syndiziert, Name des Platzeurs: 64. TEFRA rules: TEFRA-Regelung: 65. Additional selling restrictions: Zusätzliche Verkaufsbeschränkungen: 66. Third Party Information Informationen von Seiten Dritter TEFRA not applicable TEFRA nicht anwendbar Where information has been sourced from a third party, confirmation that this information has been accurately reproduced and that as far as the Issuer is aware and is able to ascertain from information published by that third party, no facts have been omitted which would render the reproduced information inaccurate or misleading. The source of information is set out where the relevant information is given. The Issuer has neither independently verified any such information, nor accepts any responsibility for error or omission made in the source itself. Sofern Informationen von Seiten Dritter übernommen wurden, ist zu bestätigen, dass diese Informationen korrekt wiedergegeben wurden und dass soweit es dem Emittenten bekannt ist und er aus den von dieser dritten Partei übermittelten Informationen ableiten konnte keine Fakten unterschlagen wurden, die die reproduzierten Informationen

13 - 13- inkorrekt oder irreführend gestalten würden. Die Quelle der Information ist bei der entsprechenden Information angegeben. Die Emittentin hat die Informationen nicht selbstständig überprüft und übernimmt keine Verantwortung für Fehler oder Auslassungen in der Quelle selbst. OPERATIONAL INFORMATION ANGABEN ZUR ABWICKLUNG 67. ISIN: DE000MS0KHG4 68. Common Code: Common Code: 69. German Securities Code: WKN: 70. (i) Clearing System(s): Clearingsystem(e): MS0KHG MS0KHG Clearstream Banking AG Mergenthalerallee 61 D Eschborn Clearstream Banking AG Mergenthalerallee 61 D Eschborn (ii) Clearing System for delivery of the Underlying Securities: Clearing System zur Lieferung der Basiswerte: (iii) Physical Delivery: Lieferung effektiver Stücke: 71. Delivery: Lieferung: 72. Fiscal Agent: Hauptzahlstelle: 73. Additional Paying Agent(s) (if any): Weitere Zahlstelle(n) (soweit vorhanden): Delivery free of payment Lieferung frei von Zahlung Deutsche Bank Aktiengesellschaft Grosse Gallusstrasse Frankfurt am Main Germany Deutsche Bank Aktiengesellschaft Große Gallusstraße Frankfurt am Main Deutschland

14 - 14- APPLICABLE LAW AND JURISDICTION ANWENDBARES RECHT UND GERICHTSSTAND 74. Applicable law: Anwendbares Recht: 75. Place of jurisdiction: Gerichtsstand: German law Deutsches Recht Frankfurt am Main Frankfurt am Main Signed on behalf of the Issuer: By: Duly authorised By: Duly authorised

15 - 15- APPENDIX A TO THE FINAL TERMS English version of the Provisions regarding the Interest and the Optional and Early Redemption Amount 1. Interest (1) Interest Payment Dates. (a) (b) The Notes bear interest at the relevant Rate of Interest (as defined below) on their Specified Denomination from, and including, the Issue Date (the "Interest Commencement Date") to, but excluding, the first Interest Payment Date (as defined below) and thereafter from, and including, each Interest Payment Date to, but excluding, the next following Interest Payment Date. Interest on the Notes shall be payable in arrear on each Interest Payment Date. There will be no payment of accrued interest for any secondary market trades as accrued interest will be reflected in the on-going trading price of the Notes. "Interest Payment Date(s)" means each date which is set out under the column "Interest Payment Date (t) " of the following table: t Interest Payment Date (t) Rate of Interest 1 2 August 2013 (the "first Interest Payment Date") 3.00 per cent. p.a. 2 2 August per cent. p.a. 3 2 August per cent. p.a. 4 2 August per cent. p.a. 5 Maturity Date 4.50 per cent. p.a. If any Interest Payment Date would fall on a day which is not a Business Day (as defined in 5(2)), the payment date shall be postponed to the next day which is a Business Day and the Noteholder shall not be entitled to further interest or other payment in respect of such delay. (2) Rate of Interest. The rate of interest (the "Rate of Interest") shall be in respect of an Interest Payment Date the percentage relating to the relevant Interest Payment Date as set out in the column "Rate of Interest" of the table set out in the previous sub-paragraph. (3) "Day Count Fraction" means, in respect of the calculation of an amount for any period of time (the "Calculation Period"), the number of days in the Calculation Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with twelve 30-day months (unless (i) the last day of the Calculation Period is the 31st day of a month but the first day of the Calculation Period is a day other than the 30th or 31st day of a month, in which case the month that includes that last day shall not be considered to be shortened to a 30-day month, or (ii) the last day of the Calculation Period is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month)). (4) If the Issuer for any reason fails to render any payment in respect of the Notes when due, interest shall continue to accrue at the default rate established by statutory law on the outstanding amount from, and including, the due date to, but excluding, the day on which such payment is received by or on behalf of the Noteholders.

16 Optional and Early Redemption Amount "Optional Redemption Amount" shall be an amount in EUR which the Determination Agent, in its sole and absolute discretion, determines is equal to the fair value of a Note, on such day as is selected by the Determination Agent in its sole and absolute discretion (provided that such day is not more than 15 days before the date fixed for redemption of the Notes), less the proportion attributable to that Note of the reasonable cost to the Issuer and/or any affiliate of, or the loss realised by the Issuer and/or any affiliate on, unwinding any related underlying hedging arrangements, the amount of such cost or loss being as determined by the Determination Agent in its sole and absolute discretion. The "Early Redemption Amount" in respect of each Note shall be its principal amount.

17 - 17- ANHANG A ZUM KONDITIONENBLATT Deutsche Fassung der Bestimmungen für die Verzinsung und den Wahlrückzahlungsbetrag und den Vorzeitigen Rückzahlungsbetrag 1. Verzinsung (1) Zinszahlungstage. (a) (b) Die Schuldverschreibungen werden bezogen auf ihren Nennbetrag vom Begebungstag (der "Verzinsungsbeginn") (einschließlich) bis zum ersten Zinszahlungstag (wie nachstehend definiert) (ausschließlich) und anschließend von jedem Zinszahlungstag (einschließlich) bis zum unmittelbar folgenden Zinszahlungstag (ausschließlich) mit dem maßgeblichen Zinssatz (wie nachstehend definiert) verzinst. Die Zinsen sind an jedem Zinszahlungstag nachträglich zahlbar. Es wird bei etwaigen Sekundärmarktgeschäften keine Zahlung im Hinblick auf aufgelaufene Zinsen erfolgen. Diese werden im laufenden Handelspreis der Schuldverschreibungen reflektiert. "Zinszahlungstag(e)" bedeutet jedes Datum, welches unter der Spalte mit der Überschrift "Zinszahlungstag (t) " der nachstehenden Tabelle aufgeführt ist: t Zinszahlungstag (t) Zinssatz 1 2. August 2013 (der "erste Zinszahlungstag") 3,00% p.a August ,25% p.a August ,50% p.a August ,00% p.a. 5 Fälligkeitstag 4,50% p.a. Fällt ein Zinszahlungstag auf einen Tag, der kein Geschäftstag (wie in 5(2)) ist, wird der Zahlungstermin auf den nächstfolgenden Geschäftstag verschoben und der Gläubiger ist nicht berechtigt, zusätzliche Zinsen oder sonstige Zahlungen auf Grund dieser Verspätung zu verlangen. (2) Zinssatz. Der Zinssatz (der "Zinssatz") ist im Hinblick auf einen Zinszahlungstag der Prozentsatz, der in der Spalte mit der Überschrift "Zinssatz" der vorstehenden Tabelle für den jeweiligen Zinszahlungstag angegeben ist. (3) "Zinstagequotient" bezeichnet im Hinblick auf die Berechnung eines Betrages für einen beliebigen Zeitraum (der "Zinsberechnungszeitraum") die Anzahl von Tagen im Zinsberechnungszeitraum dividiert durch 360 (wobei die Anzahl der Tage auf der Grundlage eines Jahres von 360 mit zwölf Monaten zu 30 Tagen zu ermitteln ist (es sei denn, (i) der letzte Tag des Zinsberechnungszeitraumes fällt auf den 31. Tag eines Monats, während der erste Tag des Zinsberechnungszeitraumes weder auf den 30. noch auf den 31. Tag eines Monats fällt, wobei in diesem Fall der diesen Tag enthaltende Monat nicht als ein auf 30 Tage gekürzter Monat zu behandeln ist, oder (ii) der letzte Tag des Zinsberechnungszeitraumes fällt auf den letzten Tag des Monats Februar, wobei in diesem Fall der Monat Februar nicht als ein auf 30 Tage verlängerter Monat zu behandeln ist)). (4) Wenn die Emittentin eine fällige Zahlung auf die Schuldverschreibungen aus irgendeinem Grund nicht leistet, wird der ausstehende Betrag von dem Fälligkeitstag (einschließlich) bis zum Tag der vollständigen Zahlung an die Gläubiger (ausschließlich) mit dem gesetzlich bestimmten Verzugzins verzinst.

18 Wahlrückzahlungsbetrag und Vorzeitiger Rückzahlungsbetrag Der "Wahlrückzahlungsbetrag" ist ein Betrag in EUR, den die Festlegungsstelle nach eigenem Ermessen als Wert festlegt, der dem fairen Wert der Schuldverschreibung an einem Tag entspricht, den die Festlegungsstelle nach freiem Ermessen festlegt, der aber nicht mehr als 15 Tage vor dem Tag, der für die Rückzahlung der Schuldverschreibungen festgelegt wurde, liegen darf. Hiervon abgezogen werden die proportionalen Kosten, die mit der Schuldverschreibung in Verbindung stehen und bei der Emittentin bzw. bei einer ihrer verbundenen Unternehmen angefallen sind und die Verluste der Emittentin oder einer ihrer verbundenen Unternehmen im Zusammenhang mit der Auflösung von im Zusammenhang stehenden Hedging Vereinbarungen, wobei die Beträge für die zuvor bezeichneten Kosten und Verluste von der Festlegungsstelle nach freiem Ermessen festgelegt werden. Der "Vorzeitige Rückzahlungsbetrag" jeder Schuldverschreibung ist ihr Nennbetrag.

19 - 19- GENERAL TERMS AND CONDITIONS OF THE NOTES This Series of Notes is issued pursuant to an Agency Agreement relating to the Euro 2,000,000,000 German Structured Securities Programme of Morgan Stanley Bank AG, Morgan Stanley & Co. International plc, Morgan Stanley B.V. (as Issuers) and Morgan Stanley (as Guarantor) (as amended or supplemented from time to time, the "Agency Agreement") between Morgan Stanley Bank AG, Junghofstrasse 13-15, Frankfurt am Main, Germany, Morgan Stanley & Co. International plc, 25 Cabot Square, Canary Wharf, London E14 4QA, United Kingdom, and Morgan Stanley B.V., Luna Arena, Herikerbergweg 238, 1101 CM, Amsterdam Zuidoost, The Netherlands, each in its capacity as Issuer under the Programme, and Morgan Stanley, 1585 Broadway, New York, New York 10036, U.S.A., in its capacity as Guarantor for Notes issued by Morgan Stanley B.V., and Deutsche Bank Aktiengesellschaft, Grosse Gallusstrasse 10-14, Frankfurt am Main, Germany (in its capacity as Fiscal Agent with regard to Notes for which CBF is not the relevant Clearing System), and Morgan Stanley & Co. International plc, 25 Cabot Square, Canary Wharf, London E14 4QA, United Kingdom (in its capacity as Fiscal Agent with regard to Notes for which CBF is the relevant Clearing System) (each a "Fiscal Agent"). Copies of the Agency Agreement and the ISDA Equity, Commodity and Credit Derivative Definitions are available for inspection during normal business hours by the holders of the Notes (the "Noteholders") at the specified offices of the Fiscal Agent. 1 (Currency. Denomination. Form. Note Right. Clearing System) (1) Currency. Denomination. Form. Note Right. This Series of Notes (the "Notes") of Morgan Stanley B.V. (the "Issuer") is issued in an aggregate principal amount of up to Euro (the "Currency" or "EUR") 30,000,000 (in words: up to thirty million) on 2 August 2012 (the "Issue Date") and is divided in denominations of EUR 100 (the "Specified Denomination"). In accordance with these Conditions, Noteholders have the right to demand from the Issuer on or after the Maturity Date (as defined below) payment of the Final Redemption Amount (as defined below). Subject to early termination in accordance with 4 and 8, the aforementioned right of Noteholders will be deemed to be automatically exercised on the Maturity Date without the requirement of an exercise notice or the performance of other qualifications. (2) Global Note. The Notes are represented by a global note (the "Global Note") without coupons which shall be signed manually by one or more authorised signatory/ies of the Issuer and shall be authenticated by or on behalf of the Fiscal Agent. The Noteholders will not have the right to demand or to receive definitive notes under any circumstances. (3) Clearing System. Each Global Note will be kept in custody by or on behalf of the Clearing System until all obligations of the Issuer under the Notes have been satisfied. "Clearing System" means the following: Clearstream Banking AG, Frankfurt am Main ("CBF") or any successor in this capacity. The Noteholders have claims to co-ownership shares of the respective Global Note which may be transferred in accordance with the rules and regulations of the respective Clearing System. 2 (Status, Guarantee) (1) Status. The obligations under the Notes constitute unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, save for such obligations as may be preferred by mandatory provisions of law. (2) Guarantee. Morgan Stanley (the "Guarantor") has given its unconditional and irrevocable guarantee (the "Guarantee") for the due payment of principal of, and interest on, and any other amounts expressed to be payable under the Notes. Under the Guarantee, each Noteholder may require performance of the Guarantee directly from the Guarantor and to enforce the Guarantee directly against the Guarantor. The Guarantee constitutes a direct, unconditional, unsubordinated

20 - 20- and unsecured obligation of the Guarantor which rank and will at all times rank at least pari passu with all other present and future direct, unconditional, unsubordinated and unsecured obligations of the Guarantor, save for such obligations as may be preferred by mandatory provisions of law. Copies of the Guarantee may be obtained free of charge at the office of the Fiscal Agent set forth in Interest (1) Interest Payment Dates. 3 (Interest) (a) (b) The Notes bear interest at the relevant Rate of Interest (as defined below) on their Specified Denomination from, and including, the Issue Date (the "Interest Commencement Date") to, but excluding, the first Interest Payment Date (as defined below) and thereafter from, and including, each Interest Payment Date to, but excluding, the next following Interest Payment Date. Interest on the Notes shall be payable in arrear on each Interest Payment Date. There will be no payment of accrued interest for any secondary market trades as accrued interest will be reflected in the on-going trading price of the Notes. "Interest Payment Date(s)" means each date which is set out under the column "Interest Payment Date (t) " of the following table: t Interest Payment Date (t) Rate of Interest 1 2 August 2013 (the "first Interest Payment Date") 3.00 per cent. p.a. 2 2 August per cent. p.a. 3 2 August per cent. p.a. 4 2 August per cent. p.a. 5 Maturity Date 4.50 per cent. p.a. If any Interest Payment Date would fall on a day which is not a Business Day (as defined in 5(2)), the payment date shall be postponed to the next day which is a Business Day and the Noteholder shall not be entitled to further interest or other payment in respect of such delay. (2) Rate of Interest. The rate of interest (the "Rate of Interest") shall be in respect of an Interest Payment Date the percentage relating to the relevant Interest Payment Date as set out in the column "Rate of Interest" of the table set out in the previous sub-paragraph. (3) "Day Count Fraction" means, in respect of the calculation of an amount for any period of time (the "Calculation Period"), the number of days in the Calculation Period divided by 360 (the number of days to be calculated on the basis of a year of 360 days with twelve 30-day months (unless (i) the last day of the Calculation Period is the 31st day of a month but the first day of the Calculation Period is a day other than the 30th or 31st day of a month, in which case the month that includes that last day shall not be considered to be shortened to a 30-day month, or (ii) the last day of the Calculation Period is the last day of the month of February, in which case the month of February shall not be considered to be lengthened to a 30-day month)). (4) If the Issuer for any reason fails to render any payment in respect of the Notes when due, interest shall continue to accrue at the default rate established by statutory law on the outstanding amount from, and including, the due date to, but excluding, the day on which such payment is received by or on behalf of the Noteholders.

21 (Redemption) (1) Final Redemption. The Notes shall be redeemed at their Final Redemption Amount (as defined below) on 2 August 2017 (the "Maturity Date"). (2) Tax Call. The Notes shall be redeemed at their Optional Redemption Amount at the option of the Issuer in whole, but not in part, at any time, on giving not less than 30 days' notice to the Noteholders (which notice shall be irrevocable) by settlement in cash in accordance with 5 if a Tax Event occurs, whereby "Tax Event" means that (i) on the occasion of the next payment or delivery due under the Notes, the Issuer or the Guarantor has or will become obliged to pay additional amounts as provided or referred to in 6 as a result of any change in, or amendment to, the laws or regulations of the Federal Republic of Germany ("Germany"), the United States of America, The Netherlands, Austria Luxembourg or any political subdivision or any authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the Issue Date; and (ii) such obligation cannot be avoided by the Issuer or the Guarantor taking reasonable measures (but no Substitution of the Issuer pursuant to 10) available to it. Before the publication of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Fiscal Agent a certificate signed by an executive director of the Issuer 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 so to redeem have occurred, and an opinion of independent legal or tax advisers of recognised standing to the effect that the Issuer or the Guarantor has or will become obliged to pay such additional amounts as a result of such change or amendment. (3) Redemption Amounts. For the purposes of this 4 and 8 (Events of Default) the following applies: The "Final Redemption Amount" in respect of each Note shall be its principal amount. "Optional Redemption Amount" shall be an amount in EUR which the Determination Agent, in its sole and absolute discretion, determines is equal to the fair value of a Note, on such day as is selected by the Determination Agent in its sole and absolute discretion (provided that such day is not more than 15 days before the date fixed for redemption of the Notes), less the proportion attributable to that Note of the reasonable cost to the Issuer and/or any affiliate of, or the loss realised by the Issuer and/or any affiliate on, unwinding any related underlying hedging arrangements, the amount of such cost or loss being as determined by the Determination Agent in its sole and absolute discretion. The "Early Redemption Amount" in respect of each Note shall be its principal amount. 5 (Payments) (1) (a) Payment of Principal. Payment of principal in respect of Notes shall be made, subject to applicable fiscal and other laws and regulations, in the Currency and to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System upon presentation and surrender of the Global Note at the specified office of any Paying Agent outside the United States. (b) Payment of Interest. Payment of interest on Notes shall be made, subject to applicable fiscal and other laws and regulations, in the Currency and to the Clearing System or to its order for credit to the relevant account holders of the Clearing System upon presentation of the Global Note at the specified office of any Paying Agent outside the United States.

22 - 22- (2) Business Day. If the date for payment of any amount in respect of any Note is not a Business Day then the Noteholder shall not be entitled to payment until the next Business Day in the relevant place and shall not be entitled to further interest or other payment in respect of such delay. "Business Day" means a day (other than Saturday and Sunday) on which (a) banks are open for business (including dealings in foreign exchange and foreign currency deposits) in London and Frankfurt am Main and (b) all relevant parts of the Trans-European Automated Real-Time Gross Settlement Express Transfer System 2 or any successor system thereto ("TARGET") are operating to effect payments in Euro. (3) United States. "United States" means the United States of America including the States thereof and the District of Columbia and its possessions (including Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands). (4) Discharge. The Issuer or, as the case may be, the Guarantor shall be discharged by payment to, or to the order of, the Clearing System. (5) References to Principal and Interest. References to "principal" shall be deemed to include, as applicable the Final Redemption Amount of the Notes; the Optional Redemption Amount of the Notes; the Early Redemption Amount of the Notes; and any premium and any other amounts which may be payable under or in respect of the Notes. References to "interest" shall be deemed to include, as applicable, any Additional Amounts which may be payable under 6. 6 (Tax Gross-up) All payments of principal and/or interest made by the Issuer in respect of the Notes to the Noteholders shall be made free and clear of, and without withholding or deduction for, any taxes, duties, assessments or governmental charges of whatever nature imposed, levied, collected, withheld or assessed by or within Germany and/or the United States of America and/or The Netherlands and/or Austria and/or Luxembourg or any authority therein or thereof having power to tax (the "Taxing Jurisdiction"), unless such withholding or deduction is required by law. In that event the Issuer shall pay such additional amounts (the "Additional Amounts") as shall result in receipt by the Noteholders of such amounts as would have been received by them had no such withholding or deduction been required, except that no Additional Amounts shall be payable with respect to any Note: (a) (b) (c) as far as German Kapitalertragsteuer (including Abgeltungsteuer, as well as including church tax, if any) to be deducted or withheld pursuant to the German Income Tax Act (Einkommensteuergesetz), even if the deduction or withholding has to be made by the Issuer or its representative and the German Solidarity Surcharge (Solidaritätszuschlag) or any other tax which may substitute the German Kapitalertragsteuer or Solidaritätszuschlag, as the case may be, is concerned; to, or to a third party on behalf of, a Noteholder where such Noteholder (or a fiduciary, settlor, beneficiary, member or shareholder of such Noteholder, if such Noteholder is an estate, a trust, a partnership or a corporation) is liable to such withholding or deduction by reason of having some present or former connection with Germany and/or the United States of America and/or The Netherlands and/or Austria and/or Luxembourg, including, without limitation, such Noteholder (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, other than by reason only of the holding of such Note or the receipt of the relevant payment in respect thereof; to, or to a third party on behalf of, a Noteholder where no such withholding or deduction would have been required to be withheld or deducted if the Notes were credited at the time of payment to a securities deposit account with a bank outside Germany and/or the United States of America and/or The Netherlands and/or Austria and/or Luxembourg;

23 - 23- (d) (e) (f) (g) (h) where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC, any other income tax directive or any law implementing or complying with, or introduced in order to conform to such directive or any arrangements entered into between a EU member state and certain other countries and territories in connection with such directive; to the extent such withholding tax or deduction is payable by or on behalf of a Noteholder who could lawfully avoid (but has not so avoided) such withholding or deduction by complying or procuring that any third party complies with any statutory requirements or by making or procuring that a third party makes a declaration of non-residence or other similar claim for exemption to any tax authority in the place where the payment is effected; to the extent such withholding tax or deduction is payable by or on behalf of a Noteholder who would have been able to avoid such withholding or deduction by effecting a payment via another Paying Agent in a Member State of the European Union, not obliged to withhold or deduct tax; to the extent such withholding tax or deduction is for or on account of the presentation by the Noteholder of any Note for payment on a date more than 30 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; or any combination of items (a)-(g); nor shall any Additional Amounts be paid with respect to any payment on a Note to a Noteholder who is a fiduciary or partnership or who is other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the Taxing Jurisdiction 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 such Additional Amounts had such beneficiary, settlor, member or beneficial owner been the Noteholder of the Note. Notwithstanding anything to the contrary in this section 6, none of the Issuer, the Guarantor, any paying agent or any other person shall be required to pay any additional amounts with respect to any withholding or deduction (i) imposed on or in respect of any Note pursuant to FATCA, the laws of the Federal Republic of Germany implementing FATCA, or any agreement between the Issuer and the United States or any authority thereof entered into for FATCA purposes, or (ii) imposed on or with respect to any "dividend equivalent" payment made pursuant to section 871 or 881 of the United States Internal Revenue Code of 1986, as amended. 7 (Prescription) The presentation period provided in 801 paragraph 1, sentence 1 of the German Civil Code is reduced to ten years for the Notes. 8 (Events of Default) If any of the following events (each an "Event of Default") occurs, the holder of any Note may by written notice to the Issuer at the specified office of the Fiscal Agent declare such Note to be forthwith due and payable, whereupon the Early Redemption Amount of such Note together with accrued interest to the date of payment in accordance with the Day Count Fraction shall become immediately due and payable, unless such Event of Default shall have been remedied prior to the receipt of such notice by the Issuer: (a) any principal has not been paid within 7 days, or interest on such Notes has not been paid within 30 days, following the due date for payment. The Issuer shall not, however, be in default if such sums were not paid in order to comply with a mandatory law, regulation or order of any court of