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EXHIBIT 10.1

PERFORMANCE SHARE UNIT AWARD AGREEMENT
Helix Energy Solutions Group, Inc.
2005 Long-Term Incentive Plan
(As Amended and Restated Effective May 15, 2019)

This Performance Share Unit Award Agreement (this “Agreement”) is made by and between Helix Energy Solutions Group, Inc. (the “Company” or “Helix”) and ______________ (the “Employee”) effective as of January 4, 2021 (the “Grant Date”), pursuant to the Helix Energy Solutions Group, Inc. 2005 Long-Term Incentive Plan (As Amended and Restated Effective May 15,  2019) (the “Plan”), which is incorporated by reference herein in its entirety.

WHEREAS, the Company desires to grant to the Employee the performance share units specified herein (the “Units”), subject to the terms and conditions of this Agreement and the Plan; and

WHEREAS, the Employee desires to be granted the Units subject to the terms and conditions of this Agreement and the Plan;

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

1.The Plan. The Plan, a copy of which has been made available to the Employee, is incorporated by reference and made a part of this Agreement as if fully set forth herein.  This Agreement uses a number of defined terms that are defined in the Plan or in the body of this Agreement.  These defined terms are capitalized wherever they are used.

2.Award.

(a)The Compensation Committee of the Board of Directors of the Company (the “Committee”) has awarded to the Employee, and on the Grant Date, the Company hereby grants to the Employee, _____ Units, which constitute Restricted Stock Units under the Plan and which are subject to the terms and conditions of this Agreement and the Plan.  The Employee has the opportunity to earn up to 200% of the Units granted hereby, based upon the two (2) performance criteria described in Section 2(c).

(b)Depending on the Company’s achievement of the performance goals specified in Section 2(c) during the three-year period beginning January 1, 2021 and ending December 31, 2023 (the “Performance Period”), the Employee shall be entitled to a payment equal to the value of the Units determined pursuant to Section 2(d) if, except as otherwise provided in Section 3, the Employee remains actively employed with the Company and/or its Affiliate(s) through the end of the Performance Period.

(c)The amount paid with respect to the Units shall be based upon the following two components in equal parts:

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i.Total Shareholder Return.  Fifty percent (50%) of the award shall be payable based on the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the Company’s “Peer Group” listed on Schedule A attached hereto, equal to the product of one half (1/2) of the Units awarded (as described in Section 2(a)) multiplied by the Adjustment Factor.  The TSR of the Company and of the Peer Group shall be calculated and certified by the Committee.  The percentile ranking of the Company’s TSR as compared to the TSR of each entity in the Peer Group shall determine the Adjustment Factor using the chart below.  The Adjustment Factor for performance rankings between points on this chart shall be determined by linear interpolation between the values listed.  In no event shall the Adjustment Factor exceed 200%.  If the performance ranking is below the 25th percentile, the Adjustment Factor shall be zero:

						
	Helix’s TSR
Performance Ranking	Adjustment Factor
	80th percentile or above
	200%
	55th percentile (“Target”)
	100%
	Below 25th percentile
	0%

“Total Shareholder Return” or “TSR” = (Ending Stock Price – Beginning Stock Price + Dividends, if any, paid over the Performance Period)/Beginning Stock Price.

“Ending Stock Price” and “Beginning Stock Price” = the average Stock Price for the 20 trading days prior to the ending and beginning dates of the Performance Period.

“Stock Price” = the closing price for the day as reported on the applicable exchange or market.

TSR of the Company or any member of the Peer Group shall be equitably adjusted to reflect any spin off, stock split, reverse stock split, stock dividend, recapitalization, or reclassification or other similar change in the number of outstanding shares of common stock.

ii.Free Cash Flow.  Fifty percent (50%) of the award shall be payable based on the cumulative total Free Cash Flow (“FCF”) generated by the Company during the Performance Period, equal to the product of one half (1/2) of the Units awarded (as described in Section 2(a)) multiplied by the Adjustment Factor.  In the event the Company generates positive FCF during the Performance Period.  The FCF of the Company shall be calculated and certified by the Company’s Chief Financial Officer.  The cumulative total FCF generated by the Company during the Performance Period shall determine the Adjustment Factor using the chart below.  The Adjustment Factor for cumulative FCF between (x) greater than zero dollars ($0) and (y) fifty million dollars ($50,000,000) shall be determined by linear interpolation between one hundred percent (100%) and two hundred percent (200%).  In no event shall the Adjustment Factor exceed 200%.  If the Company does not generate a cumulative positive FCF during the Performance Period, the Adjustment Factor shall be zero:

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	Performance Period
Cumulative FCF	Adjustment Factor
	$50 Million or above	200%
	Greater than $0	100%
	$0 or Below	0%

“Free Cash Flow” or “FCF” = cash flows from operating activities less capital expenditures, net of proceeds from sale of assets.

(d)The amount payable to the Employee pursuant to this Agreement, if any, in respect of the Units earned shall be paid in shares of Stock of the Company with one (1) share of Stock to be issued for each Unit earned, unless the Committee determines to make such payment in whole or in part in cash.  Any Units payable to the Employee shall be calculated by multiplying the number of Units awarded to the Employee by the Adjustment Factor set forth above for the levels of achievement of the performance criteria set forth in Section 2(c)(i)-(ii).  By way of example, if at the end of the Performance Period (x) the Company’s TSR was at the 55th percentile and (y) the Company did not generate a cumulative positive FCF during the Performance Period, then 50% of the Units would be payable to the Employee (comprised of 100% of the Units earned under Section 2(c)(i) and 0% of the Units earned under Section 2(c)(ii)).  Any cash value payable shall be determined by multiplying the number of Units payable by the Fair Market Value of one (1) share of Stock on the date determined by the Committee.

(e)Except as provided in Section 3(b), payment of amounts due shall be made on or before the March 15 immediately following the end of the Performance Period.

3.Early Termination; Change of Control.

(a)In the event of the Employee’s termination of employment prior to the end of the Performance Period due to (i) death, (ii) disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Disability”), or (iii) Retirement (as hereinafter defined), the Employee shall vest in a number of Units determined by multiplying the number of Units granted by a fraction, the numerator of which is the number of full months between the beginning of the Performance Period and the date of termination due to death, Disability or Retirement, and the denominator of which is thirty-six (36).  The Committee shall determine the number of Units vested and the amount to be paid to the Employee or his or her estate in accordance with Section 2(e) based on the performance criteria set forth under Section 2(c)(i)-(ii) for the entire Performance Period.  As used herein, “Retirement” is defined as the voluntary termination of employment at or after age 55 with at least five (5) years of service and the Employee not, at any time on or before the date that is two (2) years following termination of employment, accepting employment with, acquiring a five percent (5%) or more equity or participation interest in, serving as a consultant, advisor, director or agent of, directly or indirectly soliciting or recruiting any employee of the Company who was employed at any time during Employee’s service with the Company, or otherwise assisting in any other capacity or manner any company or enterprise that is directly or indirectly in competition with or acting against the interests of the Company or any of its lines of business, except for any service or assistance that is provided at the request or with the written permission of the Company.  Any accelerated vesting pursuant to this Section 3(a)(i) due to the Employee’s Retirement shall not affect the time of payment under this Agreement.

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(b)In the event of a Change of Control during the Performance Period, the Employee shall vest in all of the Units granted to the Employee under this Agreement.  The amount paid with respect to the Units will be determined based on the performance criteria as set forth in Section 2(c)(i)-(ii); however, (i) the TSR of the Company and the Peer Group and (ii) the cumulative total FCF generated by the Company will be determined over an adjusted performance period, defined as the period beginning on the original beginning date of the Performance Period and ending on the effective date of the Change of Control.  If the award is payable in cash, the cash value payable shall be determined by multiplying the number of Units payable by the Fair Market Value of a share of Stock on the date of the Change of Control.  Payment shall be made to the Employee upon the date of the Change of Control. Notwithstanding the foregoing, if the Change of Control does not qualify as a “change in control event” under Department of Treasury Regulation section 1.409A-3(i)(5)(i), then payment shall be made at the time specified in Section 2(e).

(c)The Units may also vest under circumstances provided in any employment agreement between the Employee and the Company or other severance arrangements established by the Company.  If the Employee is a party to an employment and/or severance agreement with the Company or a participant in a severance plan of the Company that provides for accelerated vesting of restricted stock units that were scheduled to vest within a specified period, the Units will be treated as scheduled to vest within such specified period if the Performance Period for such Units is scheduled to end within such specified period and the performance criteria for the Performance Period results in a payout for the Units in accordance with the criteria set forth in Section 2(c).  By way of example, if an Employee’s employment is terminated by the Company under circumstances that would entitle the Employee to the acceleration of vesting of restricted stock units that are scheduled to vest within the next twelve (12) months, the Employee would receive a payout for those Units in accordance with the terms of this Agreement based on the Company’s TSR and cumulative FCF for the Performance Period.  Any accelerated vesting pursuant to this Section 3(c) shall not affect the time of payment under this Agreement.

4.Tax Withholding. To the extent that the receipt or payout of the Units results in income to the Employee for federal, state or local income or employment tax purposes with respect to which the Company or any of its Affiliates has a withholding obligation, if the payment is in cash the Company or the Affiliate, as applicable, shall withhold all applicable tax from any cash payable for the Units, or if payment is in shares of Stock of the Company, the Employee shall deliver to the Company at the time of receipt such amount of money as the Company may require to meet its or its Affiliate’s obligation under applicable tax laws or regulations, and if the Employee fails to do so, the Company is authorized to withhold from any shares issued under this Agreement sufficient to satisfy the withholding obligation based on the last per share sales price of the Company’s common stock for the trading day immediately preceding the date that the withholding obligation arises.

5.Employment Relationship. For purposes of this Agreement, the Employee shall be considered to be in the employment of the Company and its Affiliates as long as the Employee has an employment relationship with the Company and its Affiliates.  The Committee shall determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on all persons.

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6.Not an Employment Agreement. This Agreement is not an employment agreement, and no provision of this Agreement shall be construed or interpreted to create an employment relationship between the Employee and the Company or its Affiliates or guarantee the right to remain employed by the Company or its Affiliates for any specified term.

7.Notices. Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, facsimile, certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the then-current address of the Company’s Principal Corporate Office, and to the Employee at the Employee’s address indicated beneath the Employee’s signature on the execution page of this Agreement, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means), and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

8.Amendment and Waiver. This Agreement may be amended, modified or superseded only by written instrument executed by the Company and the Employee.  Only a written instrument executed and delivered by the party waiving compliance hereof shall make any waiver of the terms or conditions.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized executive officer of the Company other than the Employee.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner effect the right to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

9.Governing Law and Severability. This Agreement shall be governed by the laws of the State of Texas, without regard to its conflicts of law provisions.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

10.Successors and Assigns. This Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and subject to Section 3(a), to the Employee, the Employee’s permitted assigns, executors, administrators, agents, legal and personal representatives.

11.Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original for all purposes but all of which taken together shall constitute but one and the same instrument.

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12.Section 409A. This Agreement shall be construed and interpreted to be exempt from or to comply with Section 409A of the Code, and any regulations or other guidance promulgated thereunder.  Neither the Company nor the members of the Committee shall be liable for any determination or action taken or made with respect to this Agreement or the Units granted hereunder.

13.Non-Transferability. Neither this Agreement nor the rights of the Employee hereunder shall be transferable by the Employee during his or her life other than by will or pursuant to applicable laws of descent and distribution, subject to Section 3(a) herein.  No rights or privileges of the Employee in connection herewith shall be transferred, assigned, pledged or hypothecated by the Employee or by any other person in any way, whether by operation of law, or otherwise, and shall not be subject to execution, attachment, garnishment or similar process.  In the event of any such occurrence, this Agreement shall automatically be terminated and shall thereafter be null and void.

14.Entire Agreement. The Plan and this Agreement contain the  entire  agreement between the parties with respect to the subject matter contained herein and may not be modified, except as provided herein or in the Plan or as it may be amended from time to time by a written document signed by each of the parties hereto.  Any oral or written agreements, representations, warranties, written inducements, or other communications with respect to the subject matter contained herein made prior to the execution of the Agreement shall be void and ineffective for all purposes.

15.Unsecured Promise to Pay. The Company’s obligation under the Plan and this Agreement is an unsecured and unfunded promise to pay benefits that may be earned in the future.  The Company shall have no obligation to set aside, earmark or invest any fund or money with which to pay its obligations under this Agreement.  The Employee or any successor in interest shall be and remain a general creditor of the Company in the same manner as any other creditor having a general claim for matured and unpaid compensation.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly authorized representative, and the Employee has executed this Agreement, all effective as of the date first above written.

															
				HELIX ENERGY SOLUTIONS GROUP, INC. 
 

				By: 	/s/ Owen Kratz                                   
				Owen Kratz
President and Chief Executive Officer
					
				EMPLOYEE:
				
				                                                                    
				Name:
Address:

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Schedule A

PEER GROUP COMPANIES

[LIST OR DESCRIPTION OF PERFORMANCE PEER GROUP TO BE INSERTED IN ACCORDANCE WITH DETERMINATION OF COMPENSATION COMMITTEE]

If any Peer Group company files for or is the subject of any bankruptcy, insolvency, or liquidation proceeding during the Performance Period, such Peer Group company will remain in the Peer Group positioned below the lowest performing member of the Peer Group in chronological order by bankruptcy, insolvency, or liquidation date.

If a Peer Group company’s TSR shall cease to be available by reason of a business combination, acquisition, merger or similar transformative event, the Committee shall exclude that company from the Peer Group and at the Committee’s discretion, the Committee may select a substitute Peer Group company for the excluded company.

Once a company is removed from the Peer Group as described above, that company shall be treated as having been removed from the Peer Group for the entire Performance Period and if applicable, a substitute Peer Group company shall be treated as included in the Peer Group for the entire Performance Period.

8Exhibit 4.2

 

PRINCIPAL AMOUNT

                    $                                    

REGISTERED NO.: R-

 

CUSIP NO.: 756109 AZ7

ISIN NO.: US756109AZ71

 

REALTY INCOME CORPORATION

0.750% NOTES DUE 2026

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN
THE MEANING SET FORTH IN THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A
DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE
ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND, UNLESS AND UNTIL IT IS EXCHANGED FOR SECURITIES IN DEFINITIVE
FORM AS AFORESAID, MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF
THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ITS NOMINEE TO A SUCCESSOR DEPOSITARY
OR ITS NOMINEE.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), 55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SUCH SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), 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.

 

Realty Income Corporation, a Maryland corporation
(the “Company,” which term shall include any successor under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                     ,
or registered assigns, the principal sum of                                                       
Dollars on March 15, 2026, and to pay interest thereon from and including December 14, 2020, or from and including the most recent
date to which interest has been paid or duly provided for, semi-annually in arrears on March 15 and September 15 of each year (the
 “Interest Payment Dates”), commencing March 15, 2021, at the rate of 0.750% per annum, until the entire principal amount
hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (as defined below) (or one or more
Predecessor Securities) is registered in the Security Register applicable to the Notes at the close of business on March 1 or September
1 (the “Regular Record Dates”), as the case may be, immediately preceding the applicable Interest Payment Date regardless
of whether the Regular Record Date is a Business Day. Any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date, and may either be paid to the Person in whose name this Note (or
one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior
to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully
provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If any principal of
or premium, if any, or interest on any of the Notes is not paid when due, then such overdue principal and, to the extent permitted
by law, such overdue premium or interest, as the case may be, shall bear interest, until paid or until such payment is duly provided
for, at the rate of 0.750% per annum.

 

    1

     

    

 

Payments of principal, premium, if any, and
interest in respect of this Note will be made by the Company in Dollars. If this Note is a Global Security, all payments of principal,
premium, if any, and interest in respect of this Note will be made by the Company by wire transfer of immediately available funds
to an account maintained by the payee located in the United States. If this Note is not a Global Security (a “Certificated
Note”), payments of interest on this Note may, at the Company’s option, be made by mailing a check to the address of
the Person entitled thereto as such address appears in the Security Register for the Notes or by wire transfer to an account maintained
by the payee located in the United States, all on the terms set forth in the Indenture; provided, however, that a Holder of $5
million or more in aggregate principal amount of Certificated Notes will be entitled to receive payments of interest due on any
Interest Payment Date by wire transfer of immediately available funds to an account maintained by such Holder in the United States
so long as such Holder has given appropriate wire transfer instructions to the Trustee or a Paying Agent for the Notes at least
15 calendar days prior to the applicable Interest Payment Date. Any such wire transfer instructions will remain in effect until
revoked by such Holder or until such Person ceases to be a Holder of $5 million or more in aggregate principal amount of Certificated
Notes.

 

Payments of principal of and premium, if any,
and interest on Certificated Notes that are due and payable on the Final Maturity Date (as defined below), any Redemption Date
or any other date on which principal of such Notes is due and payable will be made by wire transfer of immediately available funds
to accounts maintained by the Holders thereof in the United States, so long as such Holders have given appropriate wire transfer
instructions to the Trustee or a Paying Agent for the Notes, against surrender of such Notes to the Trustee or a Paying Agent for
the Notes; provided that installments of interest on Certificated Notes that are due and payable on any Interest Payment Date falling
on or prior to such Final Maturity Date, Redemption Date or other date on which principal of such Notes is payable will be paid
in the manner described in the preceding paragraph to the Persons who were the Holders of such Notes (or one or more Predecessor
Securities) registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions
of the Indenture.

 

This Note is one of a duly authorized issue
of Securities of the Company (herein called the “Notes”), issued as a series of Securities under an indenture dated
as of October 28, 1998 (herein called, together with all indentures supplemental thereto, the “Indenture”), between
the Company and The Bank of New York Mellon Trust Company, N.A. (successor trustee to The Bank of New York), as trustee (the “Trustee,”
which term includes any successor trustee under the Indenture with respect to the Notes), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered. This Note is one of the duly authorized series designated as the “0.750% Notes due 2026.” All terms
used in this Note which are defined in the Indenture and not defined herein shall have the meanings assigned to them in the Indenture.

 

Prior to February 15, 2026 (the “Par
Call Date”), the Notes may be redeemed at any time in whole or from time to time in part at the option of the Company at
a Redemption Price equal to the greater of:

 

(a) 100% of the principal amount of the Notes
to be redeemed, and

 

(b) the sum of the present values
of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (exclusive of interest accrued to
the applicable Redemption Date), assuming that the Notes matured and that accrued and unpaid interest on the Notes was payable
on the Par Call Date, discounted to such Redemption Date on a semiannual basis, assuming a 360-day year consisting of twelve 30-day
months, at the Treasury Rate plus 10 basis points,

 

plus, in the case of both clauses (a) and (b) above, accrued
and unpaid interest on the principal amount of the Notes being redeemed to such Redemption Date.

 

On and after the Par Call Date, the Notes
may be redeemed at any time in whole or from time to time in part at the option of the Company at a Redemption Price equal to 100%
of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the principal amount of the Notes being
redeemed to the applicable Redemption Date.

 

Notwithstanding the foregoing, installments
of interest on Notes whose Stated Maturity is on or prior to a Redemption Date will be payable to the Holders of such Notes (or
one or more Predecessor Securities) registered as such at the close of business on the relevant Regular Record Dates according
to their terms and the provisions of the Indenture.

 

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Notice of any redemption by the Company will
be transmitted at least 15 days but not more than 60 days before the applicable Redemption Date to each Holder of Notes to be redeemed.

 

The Indenture contains provisions for defeasance
at any time of (a) the entire indebtedness of the Company on the Notes and (b) certain restrictive covenants and the related defaults
and Events of Default applicable to the Company, in each case, upon compliance by the Company with certain conditions set forth
in the Indenture, which provisions apply to this Note.

 

In addition to the covenants of the Company
contained in the Indenture, the Company makes the following covenants with respect to, and for the benefit of the Holders of, the
Notes:

 

Limitation on Incurrence of Total Debt.
The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if, immediately after
giving effect to the incurrence of such additional Debt and the application of the proceeds therefrom on a pro forma basis, the
aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance
with GAAP is greater than 60% of the sum of (i) the Company’s Total Assets as of the end of the latest fiscal quarter covered
in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with
the Commission (or, if such filing is not required under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
with the Trustee) prior to the incurrence of such additional Debt and (ii) the increase, if any, in Total Assets from the end of
such quarter including, without limitation, any increase in Total Assets caused by the application of the proceeds of such additional
Debt (such increase together with the Company’s Total Assets are referred to as the “Adjusted Total Assets”).

 

Limitation on Incurrence of Secured Debt.
The Company will not, and will not permit any Subsidiary to, incur any Secured Debt, other than Intercompany Debt, if, immediately
after giving effect to the incurrence of such additional Secured Debt and the application of the proceeds therefrom on a pro forma
basis, the aggregate principal amount of all outstanding Secured Debt of the Company and its Subsidiaries on a consolidated basis
determined in accordance with GAAP is greater than 40% of the Company’s Adjusted Total Assets.

 

Debt Service Coverage. The Company
will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if the ratio of Consolidated Income
Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters
most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1.0, on a pro forma basis
after giving effect to the incurrence of such Debt and the application of the proceeds therefrom, and calculated on the assumption
that (i) such Debt and any other Debt incurred by the Company or any of its Subsidiaries since the first day of such four-quarter
period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four-quarter
period) had occurred on the first day of such period, (ii) the repayment or retirement of any other Debt of the Company or any
of its Subsidiaries since the first day of such four-quarter period had occurred on the first day of such period (except that,
in making such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be
computed based upon the average daily balance of such Debt during such period), and (iii) in the case of any acquisition or disposition
by the Company or any Subsidiary of any asset or group of assets since the first day of such four-quarter period, including, without
limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition had occurred on the first
day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro
forma calculation. If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first
day of the relevant four-quarter period bears interest at a floating rate then, for purposes of calculating the Annual Debt Service
Charge, the interest rate on such Debt shall be computed on a pro forma basis as if the average interest rate which would have
been in effect during the entire such four-quarter period had been the applicable rate for the entire such period.

 

Maintenance of Total Unencumbered Assets.
The Company will maintain at all times Total Unencumbered Assets of not less than 150% of the aggregate outstanding principal amount
of the Unsecured Debt of the Company and its Subsidiaries, computed on a consolidated basis in accordance with GAAP.

 

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Certain Definitions. As used herein,
the following terms have the meanings set forth below:

 

“Annual Debt Service
Charge” as of any date means the amount which is expensed in any 12-month period for interest on Debt of the Company
and its Subsidiaries.

 

“Comparable Treasury
Issue” means, with respect to any Redemption Date for the Notes, the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed (assuming that
the Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be redeemed
(assuming that the Notes matured on the Par Call Date).

 

“Comparable Treasury
Price” means, with respect to any Redemption Date for the Notes:

 

(a)          
if the Company obtains four or more Reference Treasury Dealer Quotations for such Redemption Date, the average of such Reference
Treasury Dealer Quotations after excluding the highest and lowest such Reference Treasury Dealer Quotations, or

 

(b)          
if the Company obtains fewer than four but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the
average of all such Reference Treasury Dealer Quotations, or 

 

(c)        
if the Company obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury Dealer
Quotation.

 

“Consolidated Income
Available for Debt Service” for any period means Consolidated Net Income plus, without duplication, amounts which have
been deducted in determining Consolidated Net Income during such period for (i) Consolidated Interest Expense, (ii) provisions
for taxes of the Company and its Subsidiaries based on income, (iii) amortization (other than amortization of debt discount)
and depreciation, (iv) provisions for losses from sales or joint ventures, (v) provisions for impairment losses, (vi) increases
in deferred taxes and other non-cash charges, (vii) charges resulting from a change in accounting principles, and (viii) charges
for early extinguishment of debt, and less, without duplication, amounts which have been added in determining Consolidated Net
Income during such period for (a) provisions for gains from sales or joint ventures, and (b) decreases in deferred taxes and other
non-cash items.

 

“Consolidated Interest
Expense” for any period, and without duplication, means all interest (including the interest component of rentals on
finance leases, letter of credit fees, commitment fees and other like financial charges) and all amortization of debt discount
on all Debt (including, without limitation, payment-in-kind, zero coupon and other like securities) but excluding legal fees, title
insurance charges, other out-of-pocket fees and expenses incurred in connection with the issuance of Debt and the amortization
of any such debt issuance costs that are capitalized, all determined for the Company and its Subsidiaries on a consolidated basis
in accordance with GAAP.

 

“Consolidated Net Income”
for any period means the amount of consolidated net income (or loss) of the Company and its Subsidiaries for such period determined
on a consolidated basis in accordance with GAAP.

 

“Debt” means
any indebtedness of the Company or any Subsidiary, whether or not contingent, in respect of (i) money borrowed or evidenced by
bonds, notes, debentures or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance,
trust deed, deed of trust, deed to secure debt, security agreement or any security interest existing on property owned by the Company
or any Subsidiary, (iii) letters of credit or amounts representing the balance deferred and unpaid of the purchase price of any
property except any such balance that constitutes an accrued expense or trade payable or (iv) any lease of property by the Company
or any Subsidiary as lessee that is reflected on the Company’s consolidated balance sheet as a finance lease or as indebtedness
in accordance with GAAP, in the case of items of indebtedness under (i) through (iii) above to the extent that any such items (other
than letters of credit) would appear as liabilities on the Company’s consolidated balance sheet in accordance with GAAP,
and also includes, to the extent not otherwise included, any obligation of the Company or any Subsidiary to be liable for, or to
pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness
of another Person (other than the Company or any Subsidiary) of the type referred to in (i), (ii), (iii) or (iv) above (it being
understood that Debt shall be deemed to be incurred by the Company or any Subsidiary whenever the Company or such Subsidiary shall
create, assume, guarantee or otherwise become liable in respect thereof).

 

    4

     

    

 

“Executive Group”
means, collectively, those individuals holding the offices of Chairman, Vice Chairman, Chief Executive Officer, President, Chief
Operating Officer or any Vice President of the Company.

 

“Final Maturity Date”
means March 15, 2026.

 

 “Independent Investment
Banker” means, with respect to any Redemption Date for the Notes, Wells Fargo Securities, LLC and its successors, Citigroup
Global Markets Inc. and its successors, J.P. Morgan Securities LLC and its successors, or TD Securities (USA) LLC and its successors
(whichever shall be appointed by the Company) or, if all such firms or the respective successors, if any, to such firms, as the
case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of
national standing appointed by the Company.

“Intercompany Debt”
means indebtedness owed by the Company or any Subsidiary solely to the Company or any Subsidiary.

 

“New York Business Day”
means any day, other than a Saturday or a Sunday, that is not a day on which banking institutions in The City of New York are authorized
or required by law, regulation or executive order to close.

 

 “Reference Treasury
Dealers” means, with respect to any Redemption Date for the Notes, Wells Fargo Securities, LLC, Citigroup Global Markets
Inc., J.P. Morgan Securities LLC and TD Securities (USA) LLC and their respective successors (or their respective affiliates that
are Primary Treasury Dealers, as defined below); provided, however, that if any such firm or its successor (or, if applicable,
any such affiliate), as the case may be, ceases to be a primary U.S. Government securities dealer in the United States (a “Primary
Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer.

“Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Notes, the average,
as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third New York Business Day preceding the date on which notice of such redemption is given to the Holders of the Notes to be
redeemed as provided in the Indenture.

 

“Secured Debt”
means Debt secured by any mortgage, lien, charge, encumbrance, trust deed, deed of trust, deed to secure debt, security agreement,
pledge, conditional sale or other title retention agreement, finance lease, or other security interest or agreement granting or
conveying security title to or a security interest in real property or other tangible assets.

 

“Subsidiary”
means (i) any corporation, partnership, joint venture, limited liability company or other entity the majority of the shares, if
any, of the non-voting capital stock or other equivalent ownership interests of which (except directors’ qualifying shares)
are at the time directly or indirectly owned by the Company, and the majority of the shares of the voting capital stock or other
equivalent ownership interests of which (except for directors’ qualifying shares) are at the time directly or indirectly
owned by the Company, any other Subsidiary or Subsidiaries, and/or one or more individuals of the Executive Group (or, in the event
of death or disability of any of such individuals, his/her respective legal representative(s), or such individuals’ successors
in office as an officer of the Company), and (ii) any other entity the accounts of which are consolidated with the accounts
of the Company. The foregoing definition of “Subsidiary” shall only be applicable with respect to the covenants set
forth above under the captions “Limitation on Incurrence of Total Debt,” “Limitation on Incurrence of Secured
Debt,” “Debt Service Coverage,” and “Maintenance of Total Unencumbered Assets,” this definition,
the other definitions set forth herein under this caption “Certain Definitions,” and, insofar as Section 801 of the
Indenture is applicable to the Notes, the term “Subsidiary,” as that term is used in Section 801(2) of the Indenture,
shall have the meaning set forth in this definition (instead of the meaning set forth in Section 101 of the Indenture).

 

    5

     

    

 

 “Treasury Rate”
means, with respect to any Redemption Date for the Notes:

 

                 (a)           the yield, under the heading that represents the average for the
immediately preceding week, appearing in, or available through, the most recently published statistical release designated “H.15”
or any successor publication which is published at least weekly by the Board of Governors of the Federal Reserve System (the “Federal
Reserve”) (or, in each case, any companion online data resource published at least weekly by the Federal Reserve) and which
establishes yields on actively traded United States Treasury securities adjusted to constant maturity for the maturity corresponding
to the Comparable Treasury Issue (if no maturity is within three months before or after the Par Call Date yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated
or extrapolated from such yields on a straight-line basis, rounding to the nearest month), or

 

                 (b)           if such release (or any successor publication or release) is not
published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual
equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

For purposes of the immediately preceding sentence,
information shall be deemed “published” by the Federal Reserve if it is made available to the public generally, whether
in physical form, on the Federal Reserve’s website or by other means. The Treasury Rate with respect to any Redemption Date
for the Notes shall be calculated by the Company on the third New York Business Day preceding the date on which notice of such
redemption is given to the Holders of the Notes to be redeemed as provided in the Indenture.

 

“Total Assets”
as of any date means the sum of (i) Undepreciated Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries
determined on a consolidated basis in accordance with GAAP (but excluding accounts receivable and intangibles).

 

“Total Unencumbered Assets”
as of any date means Total Assets minus the value of any properties of the Company and its Subsidiaries that are encumbered by
any mortgage, charge, pledge, lien, security interest, trust deed, deed of trust, deed to secure debt, security agreement, or other
encumbrance of any kind (other than those relating to Intercompany Debt), including the value of any stock of any Subsidiary that
is so encumbered, determined on a consolidated basis in accordance with GAAP; provided, however, that, in determining Total Unencumbered
Assets as a percentage of outstanding Unsecured Debt for purposes of the covenant set forth above under "Maintenance of Total
Unencumbered Assets," all investments in any Person that is not consolidated with the Company for financial reporting purposes
in accordance with GAAP shall be excluded from Total Unencumbered Assets to the extent that such investment would otherwise have
been included. For purposes of this definition, the value of each property shall be equal to the purchase price or cost of each
such property and the value of any stock subject to any encumbrance shall be determined by reference to the value of the properties
owned by the issuer of such stock as aforesaid.

 

“Undepreciated Real Estate
Assets” as of any date means the amount of real estate assets of the Company and its Subsidiaries on such date, before
depreciation and amortization, determined on a consolidated basis in accordance with GAAP.

 

“Unsecured Debt”
means Debt of the Company or any Subsidiary that is not Secured Debt.

 

    6

     

    

 

If an Event of Default with respect to the
Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.

 

As provided in and subject to the provisions
of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or
for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the Notes, the Holders of not less than 25% in principal
amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default as Trustee and offered the Trustee indemnity reasonably satisfactory to it and the Trustee shall not have
received from the Holders of a majority in principal amount of the Notes at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer
of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment
of principal of, or premium, if any, or interest on, this Note on or after the respective due dates therefor.

 

The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Notes under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not
less than a majority in aggregate principal amount of the Outstanding Notes. The Indenture also contains provisions permitting
the Holders of not less than a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all
Notes, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture permit
the Holders of not less than a majority of the aggregate principal amount of the Outstanding Notes to waive, in certain circumstances,
on behalf of all Holders of the Notes, certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no
provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of, and premium, if any, and interest on, this Note at the times, places and rate, and in the coin or currency,
herein prescribed.

 

As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this
Note for registration of transfer at the office or agency of the Company in any Place of Payment for the Notes, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar for the Notes
duly executed by, the Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Notes of authorized
denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees.

 

As provided in the Indenture and subject to
certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of
this series of different authorized denominations, as requested by the Holder surrendering the same.

 

The Notes of this series are issuable only
in registered form, without interest coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name
this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

 

    7

     

    

 

  No recourse shall be had for the
payment of the principal of, or premium, if any, or the interest on this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any past, present or future stockholder,
employee, officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor,
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 BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes as
a convenience to the Holders of the Notes. No representation is made as to the correctness or accuracy of such CUSIP numbers as
printed on the Notes, and reliance may be placed only on the other identification numbers printed hereon.

 

Unless the certificate of authentication hereon
has been executed by the Trustee by manual signature of one of its authorized signatories, this Note shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

 

The headings included in this Note are for
convenience only and shall not affect the construction hereof.

 

[Signature page follows]

 

    8

     

    

 

IN WITNESS WHEREOF, the Company has caused
this instrument to be duly executed.

 

	 	 	REALTY INCOME CORPORATION
	 	 	 	 
	 	 	By:	 
	 	 	 	
        Sumit Roy

        President and Chief Executive Officer

	 	 	 	 
	Attest:	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Michael R. Pfeiffer	 	 	 
	 	Executive Vice President, Chief Administrative Officer, General Counsel and Secretary 	 	 	 

 

    

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Securities of the series
designated therein referred to in the within-mentioned Indenture.

 

	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee	 
	 	 
	By:	 	 
	 	Authorized Signatory	 
	 	 
	Dated:  	 

 

    

     

    

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers to

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

(Please Print or Typewrite Name and Address

including Zip Code of Assignee)

 

	the within Note of REALTY INCOME CORPORATION, and hereby does irrevocably constitute and appoint

 

Attorney to transfer said Note on the books of the within-named
Company with full power of substitution in the premises.

 

Dated:

 

NOTICE: The signature to this assignment must correspond with
the name as it appears on the first page of the within Note in every particular, without alteration or enlargement or any change
whatever.

 

	Signature Guaranty	 	 
	 	(Signature must be guaranteed by a participant in a signature guarantee medallion program)

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