Document:

imci_ex1041.htm

EXHIBIT 10.14
  
 INFINITE GROUP, INC.
 2021 EQUITY INCENTIVE PLAN
  
 Section 1. Purpose
  
 The purpose of the Infinite Group, Inc. 2021 Equity Incentive Plan (the “Plan”) is to promote stockholder value and the future success of Infinite Group, Inc. by providing appropriate retention and performance incentives to the employees and non-employee directors of the Company and its Affiliates (each as defined below), and any other individuals who perform services for the Company or its Affiliates.
  
 Section 2. Definitions
  
 2.1 “Affiliate” means any entity in which the Company has a direct or indirect equity interest of 50 percent or more, any entity included in the audited consolidated financial statements of the Company and any other entity in which the Company has a substantial ownership interest and which has been designated as an Affiliate for purposes of the Plan by the Committee in its sole discretion.
  
 2.2 “Award” means any form of incentive or performance award granted under the Plan to a Participant by the Committee pursuant to any terms and conditions that the Committee may establish and set forth in the applicable Award Agreement. Awards granted under the Plan may consist of: (a) Options granted pursuant to Section 7; (b) Stock Appreciation Rights granted pursuant to Section 8; (c) Restricted Stock granted pursuant to Section 9; (d) Restricted Stock Units granted pursuant to Section 9; and (e) Other Stock-Based Awards granted pursuant to Section 10.
  
 2.3 “Award Agreement” means the written or electronic document(s) evidencing the grant of an Award to a Participant.
  
 2.4 “Board” means the Board of Directors of the Company.
  
 2.5 “Change in Control” means the happening of any of the following:
  
 (a) any Exchange Act Person becomes the owner, directly or indirectly, of securities of the Company representing more than 50 percent of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control will not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities owned by the Subject Person over the designated percentage threshold, then a Change in Control will be deemed to occur;
  
 	 
	
	

	 

  
 (b) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than 50 percent of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than 50 percent of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions relative to each other as their ownership of the outstanding voting securities of the Company immediately prior to such transaction;
  
 (c) there is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the consolidated assets of the Company and its Affiliates, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Affiliates to an entity, more than 50 percent of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions relative to each other as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition;
  
 (d) individuals who, immediately following the Effective Date, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board within any 12-month period; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office (other than as a result of any settlement of a proxy or consent solicitation contest or any action taken to avoid such a contest), such new member will, for purposes of the Plan, be considered as a member of the Incumbent Board; or
  
 (e) the complete dissolution or liquidation of the Company.
  
 Notwithstanding the foregoing, a “Change in Control” will not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the capital stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.
  
 In addition, solely with respect to any Award that constitutes “deferred compensation” subject to Section 409A and that is payable on account of a Change in Control (including any installments that are accelerated on account of a Change in Control), a Change in Control will occur only if such event also constitutes a “change in the ownership,” “change in the effective control,” or a “change in the ownership of a substantial portion of the assets” of the Company as those terms are defined by Section 1.409A-3(i)(5) of the Treasury Regulations, but only to the extent necessary to establish a time or form of payment that complies with Section 409A, without altering the definition of Change in Control for purposes of determining whether a Participant’s rights to such Award become vested or otherwise unconditional upon the Change in Control.
  
 	 
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 2.6 “Code” means the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated and other official guidance issued thereunder.
  
 2.7 “Committee” means: (a) if the shares of Common Stock are not listed on a national securities exchange, the committee appointed by the Board from among its members to administer the Plan, provided that if a separate committee has not been specifically established, the Board shall constitute the Committee, and all references hereunder to the Committee shall refer to the Board; or (b) if the shares of Common Stock are listed on a national securities exchange, the Compensation Committee of the Board, or any successor committee that the Board may designate to administer the Plan, provided such Committee consists of two or more individuals, each of whom must be (i) a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act and (ii) a non-employee director meeting the independence requirements for compensation committee members under the rules and regulations of the Exchange on which the shares of Common Stock are traded. References to “Committee” include persons to whom the Committee has delegated authority pursuant to Section 3.4.
  
 2.8 “Common Stock” means the common stock, par value $0.001 per share, of the Company, and stock of any other class or company into which such shares may thereafter be changed.
  
 2.9 “Company” means Infinite Group, Inc., a Delaware corporation, or any successor thereto.
  
 2.10 “Disability” with respect to a Participant, has the meaning assigned to such term under the long-term disability plan maintained by the Company or an Affiliate in which such Participant is covered at the time the determination is made, and if there is no such plan, means the permanent inability as a result of accident or sickness to perform any and every duty pertaining to such Participant’s occupation or employment for which the Participant is suited by reason of the Participant’s previous training, education and experience; provided that, for Incentive Stock Options, Disability will mean a “permanent and total disability” as defined by Section 22(e) of the Code; and provided further, that to the extent an Award subject to Section 409A is payable upon a Participant’s Disability, a Disability will not be deemed to have occurred for such purposes unless the circumstances would also result in a “disability” within the meaning of Section 409A, unless otherwise provided in the Award Agreement.
  
 2.11 “Effective Date” means the date on which the Plan is approved by the stockholders of the Company.
  
 2.12 “Exchange” means the Nasdaq Stock Market, or such other principal securities market on which the shares of Common Stock are traded.
  
 	 
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 2.13 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the regulations and interpretations thereunder.
  
 2.14 “Exchange Act Person” means any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” will not include (i) the Company or any Affiliate, (ii) any employee benefit plan of the Company or any Affiliate or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Affiliate, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company; or (v) any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the owner, directly or indirectly, of securities of the Company representing more than 50 percent of the combined voting power of the Company’s then outstanding securities.
  
 2.15 “Fair Market Value” of a share of Common Stock as of any specific date means: (a) if the shares of Common Stock are not listed on a national securities exchange, the fair market value of the shares as of such date, as determined by the Committee in its good faith judgment, consistent with the requirements of Section 409A (or Section 422 of the Code for Incentive Stock Options); or (b) if the shares of Common Stock are listed on a national securities exchange, the per share closing price reported by the Exchange on such date, or, if there is no such reported closing price on such date, then the per share closing price reported by the Exchange on the last previous day on which such closing price was reported, or such other value as determined by the Committee in accordance with applicable law. The Fair Market Value of any property other than shares of Common Stock means the market value of such property as determined by the Committee using such methods or procedures as it may establish from time to time.
  
 2.16 “Incentive Stock Option” means an Option that qualifies as an incentive stock option under Section 422 of the Code.
  
 2.17 “Nonqualified Stock Option” means an Option that does not qualify as an Incentive Stock Option or which is designated a Nonqualified Stock Option.
  
 2.18 “Option” means a right to purchase shares of Common Stock at a specified exercise price that is granted subject to certain terms and conditions pursuant to Section 7, and includes both Incentive Stock Options and Nonqualified Stock Options.
  
 2.19 “Other Stock-Based Award” means an Award denominated in shares of Common Stock that is granted subject to certain terms and conditions pursuant to Section 10.
  
 2.20 “Participant” means an individual who has been granted an Award under the Plan, or in the event of the death of such individual, the individual’s beneficiary.
  
 2.21 “Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, or other entity.
  
 	 
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 2.22 “Prior Plans” means the Infinite Group, Inc. 2020 Stock Option Plan and the Infinite Group, Inc. 2019 Stock Option Plan.
  
 2.23 “Restricted Period” means the period during which Restricted Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of.
  
 2.24 “Restricted Stock” means an Award of shares of Common Stock that is granted subject to certain terms and conditions pursuant to Section 9.
  
 2.25 “Restricted Stock Unit” means an Award of a right to receive shares of Common Stock (or an equivalent value in cash or other property, or any combination thereof) that is granted subject to certain terms and conditions pursuant to Section 9.
  
 2.26 “Section 409A” means Section 409A of the Code.
  
 2.27 “Stock Appreciation Right” means a right to receive (without payment to the Company) cash, shares of Common Stock or other property, or any combination thereof, as determined by the Committee, based on the increase in the value of a share of Common Stock over the per share exercise price, that is granted subject to certain terms and conditions pursuant to Section 8.
  
 2.28 “Treasury Regulations” means the tax regulations promulgated under the Code.
  
 Section 3. Administration
  
 3.1 Administration and Authority. Except as otherwise specified herein, the Plan will be administered solely by the Committee. Subject only to Section 3.2, the Committee has all the powers vested in it by the terms of the Plan set forth herein, such powers to include exclusive authority to select the employees and other individuals to be granted Awards under the Plan, to determine the type, size and terms of the Award to be made to each individual selected, to determine the time when Awards will be granted, to establish performance objectives, to prescribe the form of Award Agreement and to modify the terms of any Award that has been granted. The Committee is authorized to interpret the Plan and the Awards granted under the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make any other determinations that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Committee deems necessary or desirable to carry it into effect. Any decision of the Committee in the interpretation and administration of the Plan, as described herein, will lie within its sole and absolute discretion and will be final, conclusive and binding on all parties concerned.
  
 3.2 Non-Employee Director Awards. In respect of Awards granted to non-employee directors of the Company or its Affiliates, the Board has all the powers otherwise vested in the Committee by the terms of the Plan set forth herein, including the exclusive authority to select the non-employee directors to be granted Awards under the Plan, to determine the type, size and terms of the Award to be made to each non-employee director selected, to modify the terms of any Award that has been granted to a non-employee director, to determine the time when Awards will be granted to non-employee directors and to prescribe the form of the Award Agreement embodying Awards made under the Plan to non-employee directors.
  
 	 
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 3.3 Repricing Prohibited Absent Stockholder Approval. Notwithstanding any provision of the Plan, except for adjustments pursuant to Section 11, neither the Board nor the Committee may, without the prior approval of the stockholders of the Company, (a) reduce, directly or indirectly, the per-share exercise price of an outstanding Option or Stock Appreciation Right after it is granted; (b) cancel an Option or Stock Appreciation Right when the exercise price of the Option or Stock Appreciation Right exceeds the Fair Market Value of a share of Common Stock in exchange for cash or another Award (other than in connection with a Change in Control); or (c) take any other action that is treated as a repricing under United States generally accepted accounting principles or by the rules or regulations of the Exchange. 
  
 3.4 Delegation. The Committee may authorize any one or more of its members or any officer of the Company to execute and deliver documents or to take any other action on behalf of the Committee with respect to Awards made or to be made to Participants, subject to the requirements of applicable law, including without limitation, Section 16 of the Exchange Act.
  
 3.5 Indemnification. No member of the Committee and no officer of the Company will be liable for anything done or omitted to be done by him, by any other member of the Committee or by any officer of the Company in connection with the performance of duties under the Plan, except for his own willful misconduct or gross negligence, or as expressly provided by applicable law, and the Company will indemnify each member of the Committee and officer of the Company against any such liability.
  
 Section 4. Participation
  
 4.1 Eligible Individuals. Consistent with the purposes of the Plan, subject to Section 3.2, the Committee will have exclusive power to select the employees and non-employee directors of the Company and its Affiliates and other individuals performing services for the Company and its Affiliates who may participate in the Plan and be granted Awards under the Plan.
  
 4.2 Condition to Receipt of Awards. Unless otherwise waived by the Committee, no prospective Participant will have any rights with respect to an Award unless and until such Participant has executed an Award Agreement evidencing the Award, delivered a fully executed copy thereof to the Company, and otherwise complied with the applicable terms and conditions of such Award.
  
 	 
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 Section 5. Shares Subject to Plan
  
 5.1 Maximum Number of Shares that May Be Issued.
  
 (a) Available Shares. Subject to adjustment as provided in Section 11, the maximum number of shares of Common Stock reserved and available for grant and issuance pursuant to the Plan as of the Effective Date will be (i) 4,500,000, plus (ii) any shares of Common Stock that are subject to options granted under the Prior Plans that expire, are forfeited or canceled or terminate for any other reason without the issuance of shares under the Prior Plans on or after the Effective Date, plus (iii) any shares of Common Stock that are subject to options granted under the Prior Plans that are used to pay the exercise price of an option or withheld to satisfy the tax withholding obligations related to any option under the Prior Plans on or after the Effective Date. If the Plan is approved by the stockholders of the Company on the Effective Date, no new awards may be granted under the Prior Plans after the Effective Date.
  
 (b) Share Counting. For purposes of counting shares against the maximum number of shares of Common Stock that may be issued under the Plan as described in Section 5.1(a), on the date of grant, Awards denominated solely in shares of Common Stock (such as Options and Restricted Stock) and other Awards that may be exercised for, settled in or convertible into shares of Common Stock will be counted against the Plan reserve on the date of grant of the Award based on the maximum number of shares that may be issued pursuant to the Award, as determined by the Committee.
  
 (c) Shares Added Back. Shares of Common Stock related to Awards issued under the Plan that are forfeited, canceled, expired or otherwise terminated without the issuance of shares of Common Stock will be added back and again available for issuance under the Plan. In addition, shares of Common Stock that are retained or reacquired by the Company to satisfy the exercise price or purchase price of an Award or to satisfy the tax withholding obligation in connection with an Award, as well as any shares of Common Stock covered by an Award that is settled in cash, will be added back and again be available for issuance under the Plan.
  
 (d) Source of Shares. Shares of Common Stock issued pursuant to the Plan may be authorized but unissued shares, treasury shares, reacquired shares or any combination thereof.
  
 (e) Assumed or Substituted Awards. Awards granted through the assumption of, or substitution for, outstanding awards previously granted by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines, will not reduce the maximum number of shares of Common Stock that may be issued under the Plan as described in Section 5.1(a).
  
 (f) Fractional Shares. No fractional shares of Common Stock may be issued under the Plan, and unless the Committee determines otherwise, an amount in cash equal to the Fair Market Value of any fractional share of Common Stock that would otherwise be issuable will be paid in lieu of such fractional share of Common Stock. The Committee may, in its sole discretion, cancel, terminate, otherwise eliminate or transfer or pay other securities or other property in lieu of issuing any fractional share of Common Stock.
  
 Section 6. Awards Under Plan
  
 6.1 Types of Awards. Awards under the Plan may include one or more of the following types: Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Stock-Based Awards.
  
 	 
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 6.2 Dividend Equivalents. Other than with respect to Options or Stock Appreciation Rights, the Committee may choose, at the time of the grant of an Award or any time thereafter up to the time of the Award’s payment, to include or to exclude as part of such Award an entitlement to receive cash dividends or dividend equivalents, subject to such terms, conditions, restrictions or limitations, if any, as the Committee may establish. Dividends and dividend equivalents will be paid in such form and manner (i.e., lump sum or installments), and at such times as the Committee will determine.
  
 6.3 Vesting Conditions. The vesting of an Award may be conditioned upon a Participant’s continued employment with or service to the Company and its Affiliates and/or the achievement of specified performance objectives.
  
 6.4 Transferability. An Award and a Participant’s rights and interest under the Award, may not be sold, assigned or transferred, hypothecated or encumbered in whole or in part either directly or by operation of law or otherwise (except in the event of a Participant’s death) including, but not by way of limitation, execution, levy, garnishment, attachment, pledge, bankruptcy or in any other manner; provided, however, that the Committee may allow a Participant to assign or transfer without consideration an Award (other than an Incentive Stock Option) to one or more members of his immediate family, to a partnership of which the only partners are the Participant or members of the Participant’s immediate family, or to a trust established by the Participant for the exclusive benefit of the Participant or one or more members of his immediate family.
  
 6.5 Award Agreement. Unless otherwise determined by the Committee, each Award will be evidenced by an Award Agreement in such form as the Committee will prescribe from time to time in accordance with the Plan, including a written agreement, contract, certificate or other instrument or document containing the terms and conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically. Each Award and Award Agreement will be subject to the terms and conditions of the Plan.
  
 6.6 Method of Payment. The Committee may, in its discretion, settle any Award through the payment of cash, the delivery of shares of Common Stock or other property, or a combination thereof, as the Committee determines or as specified by the Plan or an Award Agreement. Any Award settlement, including payment deferrals, may be subject to conditions, restrictions and contingencies as the Committee determines.
  
 6.7 Death, Disability or Termination. The Committee may include in an Award Agreement provisions related to the death, Disability or termination of employment or service of a Participant, including without limitation the acceleration of the exercisability, vesting or settlement of, or the lapse of restrictions or deemed satisfaction of performance objectives with respect to, an Award.
  
 6.8 Change in Control. The Committee may include in an Award Agreement provisions related to a Change in Control, including without limitation the acceleration of the exercisability, vesting or settlement of, or the lapse of restrictions or deemed satisfaction of performance objectives with respect to, an Award.
  
 	 
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 6.9 Forfeiture Provisions. The Committee may, in its discretion, provide in an Award Agreement that an Award will be canceled if the Participant, without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement, or otherwise engages in activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. Notwithstanding the foregoing, none of the non-disclosure restrictions in this Section 6.9 or in any Award Agreement will, or will be interpreted to, impair the Participant from exercising any legally protected whistleblower rights (including under Rule 21F under the Exchange Act).
  
 6.10 Recoupment Provisions. Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to the extent required by applicable law (including, without limitation, Section 10D of the Exchange Act and any regulations promulgated with respect thereto) or Exchange listing requirement, in each case as in effect from time to time, to recoup compensation of whatever kind paid under the Plan by the Company at any time. No such recoupment of compensation will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any agreement between any Participant and the Company. 
  
 6.11 Non-Employee Director Award Limitation. The aggregate of (a) the grant date fair value for financial reporting purposes of any Awards granted during any fiscal year to a non-employee director, and (b) the total amount of any cash fees or other property paid to such non-employee director during the fiscal year, in respect of the director’s service as a member of the Board during such year, may not exceed $250,000. 
  
 Section 7. Options
  
 7.1 Grant of Options. The Committee may grant Awards of Options. The Committee may grant Incentive Stock Options provided the terms of such grants comply with Section 7.4 and the requirements of Section 422 of the Code. Each Option granted under the Plan will comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion, may establish.
  
 7.2 Exercise Price; Expiration Date. Except for Options granted through the assumption of, or substitution for, outstanding awards previously granted by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines, the exercise price will be equal to or greater than the Fair Market Value of the shares of Common Stock subject to such Option on the date that the Option is granted. The Committee in its discretion will establish the expiration date of an Option; provided that in no event will the expiration date be later than 10 years from the date that the Option is granted. 
  
 	 
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 7.3 Exercisability. The Option will not be exercisable unless the Option has vested, and payment in full of the exercise price for the shares of Common Stock being acquired thereunder at the time of exercise is made in such form as the Committee may determine in its discretion, including, but not limited to:
  
 (a) cash;
  
 (b) if permitted by the Committee, by instructing the Company to withhold a number of shares of Common Stock that would otherwise be issued having a Fair Market Value equal to the applicable portion of the exercise price being so paid;
  
 (c) if permitted by the Committee, by tendering (actually or by attestation) to the Company a number of previously acquired shares of Common Stock that have been held by the Participant for at least six months (or such shorter period, if any, determined by the Committee in consideration of applicable accounting standards) and that have a Fair Market Value equal to the applicable portion of the exercise price being so paid;
  
 (d) if permitted by the Committee, by authorizing a third party to sell, on behalf of the Participant, the appropriate number of shares of Common Stock otherwise issuable to the Participant upon the exercise of the Option and to remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise; or
  
 (e) any combination of the foregoing.
  
 7.4 Limitations for Incentive Stock Options. The terms and conditions of any Incentive Stock Options granted hereunder will comply with the requirements of Section 422 of the Code. Incentive Stock Options may be granted only to employees of the Company or an Affiliate, provided such Affiliate is also a “parent corporation” of the Company within the meaning of Section 424(e) of the Code or a “subsidiary corporation” of the Company within the meaning of Section 424(f) of the Code, on the date of grant. The aggregate Fair Market Value (determined as of the time the Incentive Stock Option is granted) of the shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any individual during any calendar year (under all plans of the Company and its Affiliates) may not exceed $100,000, and any Incentive Stock Option or portions thereof which exceed such limit (according to the order in which they were granted) will be treated as a Nonqualified Stock Option. Incentive Stock Options may not be transferable by a Participant other than by will or the laws of descent and distribution and may only be exercisable during the Participant’s lifetime by the Participant. If, at the time an Incentive Stock Option is granted, the employee recipient owns (after application of the rules contained in Section 424(d) of the Code) shares of Common Stock possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or its subsidiaries, then: (a) the exercise price for such Incentive Stock Option will be at least 110 percent of the Fair Market Value of the shares of Common Stock subject to such Incentive Stock Option on the date of grant; and (b) such Incentive Stock Option will not be exercisable after the date five years from the date such Incentive Stock Option is granted. The maximum number of shares of Common Stock that may be issued under the Plan pursuant to Incentive Stock Options may not exceed, in the aggregate, 4,500,000.
  
 	 
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 Section 8. Stock Appreciation Rights
  
 8.1 Grant of Stock Appreciation Rights. The Committee may grant Awards of Stock Appreciation Rights. Each Award of Stock Appreciation Rights granted under the Plan will comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion, may establish.
  
 8.2 Exercise Price; Expiration Date. Except for Stock Appreciation Rights granted through the assumption of, or substitution for, outstanding awards previously granted by a company acquired by the Company or any Affiliate, or with which the Company or any Affiliate combines, the exercise price will be equal to or greater than the Fair Market Value of the shares of Common Stock subject to such Stock Appreciation Right on the date that the Stock Appreciation Right is granted. The Committee in its discretion will establish the expiration date of a Stock Appreciation Right; provided that in no event will the expiration date be later than 10 years from the date that the Stock Appreciation Right is granted. 
  
 8.3 Exercisability. Stock Appreciation Rights may not be exercisable unless the Stock Appreciation Rights have vested.
  
 8.4 Exercise and Settlement. An Award of Stock Appreciation Rights entitles the Participant to exercise such Award and to receive from the Company in exchange therefore, without payment to the Company, that number of shares of Common Stock having an aggregate Fair Market Value equal to (or, in the discretion of the Committee, less than) the excess of the Fair Market Value of one share of Common Stock, at the date of such exercise, over the exercise price per share, times the number of shares of Common Stock for which the Award is being exercised. The Committee will be entitled in its discretion to elect to settle the obligation arising out of the exercise of a Stock Appreciation Right by the payment of cash or other property, or any combination thereof, as determined by the Committee, equal to the aggregate Fair Market Value of the shares of Common Stock it would otherwise be obligated to deliver.
  
 Section 9. Restricted Stock and Restricted Stock Units
  
 9.1 Grant of Restricted Stock and Restricted Stock Units. The Committee may grant Awards of Restricted Stock or Restricted Stock Units. Each Award of Restricted Stock or Restricted Stock Units under the Plan will comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion, may establish.
  
 9.2 Restricted Stock Issuance. Shares of Common Stock issued to a Participant in accordance with the Award of Restricted Stock may be issued in certificate form or through the entry of an uncertificated book position on the records of the Company’s transfer agent and registrar. The Company may impose appropriate restrictions on the transfer of such shares of Common Stock, which will be evidenced in the manner permitted by law as determined by the Committee in its discretion, including but not limited to (a) causing a legend or legends to be placed on any certificates evidencing such Restricted Stock, or (b) causing “stop transfer” instructions to be issued, as it deems necessary or appropriate.
  
 9.3 Stockholder Rights. Unless otherwise determined by the Committee in its discretion, prior to the expiration of the Restricted Period, a Participant to whom an Award of Restricted Stock has been made will have ownership of such shares of Common Stock, including the right to vote the same and to receive dividends or other distributions made or paid with respect to such shares of Common Stock, subject, however, to the restrictions and limitations imposed thereon pursuant to the Plan or Award Agreement.
  
 	 
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 Section 10. Other Stock-Based Awards
  
 The Committee may grant Other Stock-Based Awards. Each Other Stock-Based Award granted under the Plan will comply with the following terms and conditions, and with such other terms and conditions as the Committee, in its discretion, may establish. The Committee will be entitled in its discretion to settle the obligation under an Other Stock-Based Award by the payment of cash, shares of Common Stock or other property, or any combination thereof.
  
 Section 11. Dilution and Other Adjustments
  
 11.1 Adjustment for Corporate Transaction or Change in Corporate Capitalization. In the event of any change in the outstanding shares of Common Stock of the Company by reason of any corporate transaction or change in corporate capitalization such as a stock split, reverse stock split, stock dividend, split-up, split-off, spin-off, recapitalization, merger, consolidation, rights offering, reorganization, combination, consolidation, subdivision or exchange of shares, a sale by the Company of all or part of its assets, any distribution to stockholders other than a normal cash dividend, partial or complete liquidation of the Company or other extraordinary or unusual event, the Board will make such adjustment in (a) the class and maximum number of shares of Common Stock that may be delivered under the Plan as described in Section 5.1, (b) the class, number and exercise price of outstanding Options and Stock Appreciation Rights, and (c) the class and number of shares subject to any other Awards granted under the Plan (provided that the number of shares of any class subject to Awards will always be a whole number) and the terms of such Awards (including, without limitation, any applicable performance goals), as may be determined to be appropriate by the Board, and such adjustments will be final, conclusive and binding for all purposes of the Plan.
  
 11.2 Adjustment for Merger or Consolidation. In the event of any merger, consolidation or similar transaction as a result of which the holders of shares of Common Stock receive consideration consisting exclusively of securities of the surviving entity (or the parent of the surviving entity) in such transaction, the Board will, to the extent deemed appropriate by the Board, adjust each Award outstanding on the date of such merger, consolidation or similar transaction so that it pertains and applies to the securities which a holder of the number of shares of Common Stock subject to such Award would have received in such merger, consolidation or similar transaction.
  
 	 
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 11.3 Assumption or Substitution of Awards. In the event of a dissolution or liquidation of the Company; a sale of all or substantially all of the Company’s assets (on a consolidated basis); or a merger, consolidation or similar transaction involving the Company in which the holders of shares of Common Stock receive securities and/or other property, including cash, other than shares of the surviving entity in such transaction (or the parent of such surviving entity), the Board will, to the extent deemed appropriate by the Board, have the power to provide for the exchange of each Award (whether or not then exercisable or vested) for an Award with respect to: (a) some or all of the property which a holder of the number of shares of Common Stock subject to such Award would have received in such transaction; or (b) securities of the acquirer or surviving entity (or parent of such acquirer or surviving entity) and, incident thereto, make an equitable adjustment, as determined by the Board, in the exercise price of the Award, or the number of shares or amount of property subject to the Award or provide for a payment (in cash or other property) to the Participant to whom such Award was granted in partial consideration for the exchange of the Award. In addition, the Board will, to the extent deemed appropriate by the Board, have the power to cancel, effective immediately prior to the occurrence of such event, each Award (whether or not then exercisable or vested), and, in full consideration of such cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each share of Common Stock subject to such Award, equal to the value, as determined by the Board, of such Award, provided that with respect to any outstanding Option or Stock Appreciation Right such value will be equal to the excess of (i) the value, as determined by the Board, of the property (including cash) received by the holder of shares of Common Stock as a result of such event, over (ii) the exercise price of such Option or Stock Appreciation Right, provided further that the value of any outstanding Option or Stock Appreciation Right will be zero where the exercise price of such Option or Stock Appreciation Right is greater than the value, as determined by the Board, of the property (including cash) received by the holder of shares of Common Stock as a result of such event; and that no change to the original timing of payment will be made to the extent it would violate Section 409A.
  
 Section 12. Amendment and Termination
  
 12.1 Amendment. The Plan may be amended in whole or in part at any time and from time to time by the Board, and the terms of any outstanding Award under the Plan may be amended from time to time by the Board, in its discretion in any manner that it deems necessary or appropriate; provided however, that no amendment may be made without stockholder approval if such amendment would:
  
 (a) increase the number of shares available for grant specified in Section 5.1(a) (other than pursuant to Section 11);
  
 (b) change the class of persons eligible to receive Incentive Stock Options;
  
 (c) decrease the minimum Option exercise price set forth in Section 7.2 or the minimum Stock Appreciation Rights exercise price set forth in Section 8.2 (in each case, other than changes made pursuant to Section 11);
  
 (d) amend or repeal the prohibition against repricing or exchange set forth in Section 3.3; or
  
 (e) require stockholder approval under applicable law, regulation, rule or Exchange listing requirement.
  
 No such amendment may adversely affect in a material manner any right of a Participant under an Award without his written consent. Any stockholder approval requirement under the Plan will be met if such approval is obtained in accordance with applicable law. Notwithstanding the foregoing, any amendment to the Plan or any outstanding Award under the Plan will be made in a manner as to ensure that an Award intended to be exempt from Section 409A will continue to be exempt from Section 409A and that an Award intended to comply with Section 409A will continue to comply with Section 409A.
  
 	 
	13
	

	 

  
 12.2 Termination. The Plan may be suspended in whole or in part at any time and from time to time by the Board. The Plan will terminate upon the adoption of a resolution of the Board terminating the Plan. No Award may be granted under the Plan after the date that is 10 years from the date the Plan was last approved and adopted by the stockholders of the Company. No termination of the Plan will materially alter or impair any of the rights or obligations of any person, without his consent, under any Award theretofore granted under the Plan.
  
 Section 13. Miscellaneous
  
 13.1 Loans. No loans from the Company or any Affiliate to a Participant will be permitted in connection with the Plan.
  
 13.2 Reservation of Rights of Company. No employee or other person will have any claim or right to be granted an Award under the Plan. Neither the Plan nor any action taken hereunder will be construed as giving any employee or other person any right to continue to be employed by or perform services for the Company or any Affiliate, and the right to terminate the employment of or performance of services by any Participant at any time and for any reason is specifically reserved.
  
 13.3 Non-Uniform Treatment. Determinations made by the Committee under the Plan need not be uniform and may be made selectively among eligible individuals under the Plan, whether or not such eligible individuals are similarly situated.
  
 13.4 General Conditions of Awards. No Participant or other person will have any right with respect to the Plan, the shares of Common Stock reserved for issuance under the Plan or in any Award, contingent or otherwise, until written evidence of the Award has been delivered to the recipient and all the terms, conditions and provisions of the Plan and the Award applicable to such recipient (and each person claiming under or through him) have been met.
  
 13.5 Rights as a Stockholder. Unless otherwise determined by the Committee in its discretion, a Participant holding Options, Stock Appreciation Rights, Restricted Stock Units or Other Stock-Based Awards will have no rights as a stockholder with respect to any shares of Common Stock (or as a holder with respect to other securities), if any, issuable pursuant to any such Award until the date of the issuance of a stock certificate to him or the entry on his behalf of an uncertificated book position on the records of the Company’s transfer agent and registrar for such shares of Common Stock or other instrument of ownership, if any. Except as provided in Section 11, no adjustment will be made for dividends, distributions or other rights (whether ordinary or extraordinary, and whether in cash, securities, other property or other forms of consideration, or any combination thereof) for which the record date is prior to the date such book entry is made or a stock certificate or other instrument of ownership, if any, is issued.
  
 	 
	14
	

	 

  
 13.6 Compliance with Applicable Laws. No shares of Common Stock or other property may be issued or paid hereunder with respect to any Award unless counsel for the Company is satisfied that such issuance will be in compliance with applicable federal, state, local and foreign legal, securities exchange and other applicable requirements. The Company will be under no obligation to effect the registration pursuant to the Securities Act of 1933, as amended, of any shares of Common Stock to be issued hereunder or to effect similar compliance under any state or local laws.
  
 13.7 Withholding of Taxes. The Company and its Affiliates will have the authority and right to deduct or withhold from any payment made under the Plan, or require a Participant to remit to the Company or Affiliate, the federal, state or local income or other taxes required by law to be withheld with respect to the exercise, lapse of restriction, settlement, payment or other taxable event of any Award under the Plan. It will be a condition to the obligation of the Company to issue shares of Common Stock or other property, or any combination thereof, upon exercise, settlement or payment of any Award under the Plan, that the Participant remit to the Company, upon its demand, such amount as may be requested by the Company for the purpose of satisfying any liability to withhold federal, state or local income or other taxes. If the amount requested is not paid, the Company may refuse to issue or pay shares of Common Stock or other property, or any combination thereof. The Committee may, in its discretion, permit an eligible Participant to elect to pay a portion or all of the amount requested by the Company for such taxes with respect to such Award, at such time and in such manner as the Committee deems to be appropriate, including, but not limited to, by authorizing the Company to withhold, or agreeing to surrender to the Company on or about the date such tax liability is determinable, shares of Common Stock or other property, or any combination thereof that would otherwise be distributed, or have been distributed, as the case may be, pursuant to such Award to such person, having a Fair Market Value equal to the minimum amount required to be withheld, or if permitted by the Company, up to such greater amount that will not trigger adverse accounting consequences and is permitted under applicable tax withholding rules.
  
 13.8 Unfunded Nature of Plan. The Plan will be unfunded. The Company will not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any Award under the Plan, and the rights to the payment of Awards will be no greater than the rights of the Company’s general creditors.
  
 13.9 Consent. By accepting any Award or other benefit under the Plan, each Participant and each person claiming under or through him will be conclusively deemed to have indicated his acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee.
  
 13.10 No Warranty of Tax Effect. Although the Company may structure an Award to qualify for favorable federal, state, local or foreign tax treatment, or to avoid adverse tax treatment, no person connected with the Plan in any capacity, including, but not limited to, the Company and its directors, officers, agents and employees, makes any representation, commitment or guarantee that any intended tax treatment will be applicable with respect to any Award under the Plan, or that such tax treatment will apply to or be available to a Participant or his beneficiary. Furthermore, the existence of an Award will not affect the right or power of the Company or its stockholders to take any corporate action, regardless of the potential effect of such action on the tax treatment of an Award under the Plan.
  
 	 
	15
	

	 

  
 13.11 Interpretation. Unless the context indicates otherwise, references to “Sections” in the Plan refer to Sections of the Plan. Headings of Sections herein are inserted only for convenience of reference and are not to be considered in the construction of the Plan. In the Plan, the use of the masculine pronoun will include the feminine and the use of the singular will include the plural, as appropriate.
  
 13.12 Severability. If any provision of the Plan is held unlawful or otherwise invalid or unenforceable in whole or in part by a court of competent jurisdiction, such provision will be deemed limited to the extent that such court of competent jurisdiction deems it lawful, valid or enforceable and as so limited will remain in full force and effect, and will not affect any other provision of the Plan or part thereof, each of which will remain in full force and effect.
  
 13.13 Choice of Law. The validity, construction, interpretation, administration and effect of the Plan, and of its rules and regulations, and rights relating to the Plan and to Awards granted under the Plan, will be governed by the substantive laws, but not the choice of law rules, of the State of Delaware.
  
 13.14 Section 409A. Awards granted under the Plan are intended to qualify for an exception from or comply with Section 409A, and the Plan and Award Agreements will be administered, construed and interpreted in accordance with such intent. Notwithstanding the foregoing, the Company makes no representation that Awards qualify for an exception from or comply with Section 409A and in no event will the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A. Notwithstanding anything in the Plan or any Award Agreement to the contrary, if a Participant is a “specified employee” (within the meaning of Section 409A(2)(B)) as of the date of such Participant’s separation from service (as determined pursuant to Section 409A), then to the extent any Award payable to such Participant on account of such separation from service would be considered nonqualified deferred compensation under Section 409A, such payment or benefit will be paid or provided in a lump sum upon the earlier of the first day of the seventh month following such separation from service and the date of the Participant’s death. Unless the Committee determines otherwise, any provision of the Plan that would cause the grant of an Award or the payment, settlement or deferral thereof to fail exception from or compliance with Section 409A may be amended to qualify for exception from or comply with Section 409A, which may be made on a retroactive basis, in accordance with Section 409A.
  
 * * * * *
  
 	 
	 16Exhibit 4.4

 

Officers’ Certificate

Pursuant to Sections 201, 301 and 303 of the Indenture

 

Dated: January 14, 2022

 

The undersigned, Christie B. Kelly, Executive Vice
President, Chief Financial Officer and Treasurer, and Michelle Bushore, Executive Vice President, Chief Legal Officer, General Counsel
and Secretary, of Realty Income Corporation, a Maryland corporation (the “Company”), hereby certify as follows:

 

The undersigned, having read the appropriate provisions
of the Indenture dated as of October 28, 1998 (the “Indenture”) between the Company and The Bank of New York Mellon Trust
Company, N.A., as successor trustee (the “Trustee”), including Sections 201, 301 and 303 thereof and the definitions
in such Indenture relating thereto, and certain other corporate documents and records, and having made such examination and investigation
as, in the opinion of the undersigned, each considers necessary to enable the undersigned to express an informed opinion as to whether
or not conditions set forth in the Indenture relating to the establishment of the title and terms of the Company’s 1.875% Notes
due 2027 (the “2027 Notes”), which will constitute a new series of the Company’s debt securities under the Indenture,
and the title and terms of the Company’s 2.500% Notes due 2042 (the “2042 Notes” and, together with the 2027 Notes,
the “Securities”), which will also constitute a new series of the Company’s debt securities under the Indenture, and
the respective forms of certificate evidencing the Securities of each such series have been complied with, and whether the conditions
in the Indenture relating to the authentication and delivery by the Trustee of the Securities of each such series have been complied with,
certify that (i) the title and terms of the Securities of each such series were established by the undersigned pursuant to authority
delegated to them by resolutions duly adopted by the Board of Directors of the Company on June 15, 2021 and November 16, 2021 and by a
duly authorized committee of the Board of Directors of the Company on June 24, 2021 (the “Resolutions”) and such terms are
set forth and incorporated by reference in Annex A-1 hereto (in the case of the 2027 Notes) and Annex A-2 hereto (in the case of
the 2042 Notes), (ii) the respective forms of certificate evidencing the Securities of each such series were established by the undersigned
pursuant to authority delegated to them by the Resolutions and shall be in substantially the form attached hereto as Annex B-1 (in
the case of the 2027 Notes) and Annex B-2 hereto (in the case of the 2042 Notes) (it being understood that, in the event that the Securities
of either such series are ever issued in definitive certificated form, the legends appearing on the first page of the form of certificate
evidencing the Securities of such series may be removed), (iii) a true, complete and correct copy of the Resolutions, which
were duly adopted by the Board of Directors of the Company and by any committee designated by the Board of Directors of the Company, and
are in full force and effect in the form adopted on the date hereof, are attached as Annex C hereto and are also attached as an exhibit
to the Certificate of the Secretary of the Company of even date herewith, (iv) the form, title and terms of the Securities of each
such series have been established pursuant to and in accordance with Sections 201 and 301 of the Indenture and comply with the Indenture
and, in the opinion of the undersigned, all conditions provided for in the Indenture (including, without limitation, those set forth in
Sections 201, 301 and 303 of the Indenture) relating to the establishment of the title and terms of the Securities of each such series,
the respective forms of certificate evidencing the Securities of each such series and the execution, authentication and delivery of the
Securities of each such series have been complied with and (v) to the best knowledge of the undersigned, no Event of Default (as
defined in the Indenture) has occurred and is continuing with respect to the Securities of either such series.

 

[SIGNATURE PAGE FOLLOWS]

 

     

     

    

 

IN WITNESS WHEREOF, we have hereunto set our hands
as of the date first written above.

 

	 	/s/ Christie B. Kelly
	 	Christie B. Kelly
	 	Executive Vice President, Chief Financial Officer and Treasurer
	 	 
	 	/s/ Michelle Bushore
	 	Michelle Bushore
	 	Executive Vice President, Chief Legal Officer, General Counsel and Secretary

 

Signature Page to Officers’
Certificate

 Pursuant to Sections 201, 301 and 303 of the Indenture

 

     

     

    

 

ANNEX A-1

 

Terms of the
1.875% Notes due 2027

 

For purposes of this Annex A-1, the term “Securities”
shall have the meaning set forth in Section (1) below, the term “Form of Security” means the form of certificate evidencing
the Securities of the series established by this Annex A-1 that is attached as Annex B-1 to the Officers’ Certificate of which this
Annex A-1 is a part; the term “Indenture” means the Indenture dated as of October 28, 1998 between the Company and the Trustee,
as amended or supplemented from time to time (including as provided in this Annex A-1), and including the terms of the Securities of the
series established by this Annex A-1 set forth and incorporated by reference in this Annex A-1; the terms “U.S. dollars,”
 “USD” and “$” mean “Dollars” (as defined in the Indenture); and the terms “sterling” “£”
and “GBP” mean the lawful currency of the United Kingdom. Other capitalized terms that are used in this Annex A-1 and not
otherwise defined in this Annex A-1 but that are defined in the Indenture have the same respective meanings as in the Indenture.

 

(1)               
A series of debt securities is hereby established under the Indenture, and such series of debt securities shall be known and designated
as the “1.875% Notes due 2027” (the “Securities”).

 

(2)               
The aggregate principal amount of the Securities of such series which may be authenticated and delivered under the Indenture is
limited to £250,000,000, except for Securities of such series authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of such series pursuant to Sections 304, 305, 306, 906 or 1107 of the Indenture; provided,
however, that such series of Securities may be re-opened by the Company from time to time for the issuance of additional Securities of
such series, so long as any such additional Securities of such series have the same form and terms (other than, if applicable, the offering
price, underwriting or other discounts and commissions, the original date of issuance, the first date on which interest thereon shall
be payable and the date from which interest thereon shall begin to accrue), and carry the same right to receive accrued and unpaid interest,
as the Securities of such series theretofore issued; provided, however, that, notwithstanding the foregoing, such series of Securities
may not be reopened if the Company has effected defeasance or covenant defeasance with respect to the Securities of such series pursuant
to Section 1402 and 1403, respectively, of the Indenture or has effected satisfaction and discharge with respect to the Securities
of such series pursuant to Section 401 of the Indenture.

 

(3)               
The Securities of such series are issuable only as Registered Securities without coupons and (notwithstanding anything to the contrary
in the Indenture) may, but need not, bear a corporate seal. The Securities of such series shall initially be issued in book-entry form
and represented by one or more permanent Global Securities of such series, the initial Common Depositary (as defined in the Form of Security)
for the Global Securities of such series shall be The Bank of New York Mellon, London Branch, as Common Depositary for Clearstream (as
defined in the Form of Security) and Euroclear (as defined in the Form of Security), and the depositary arrangements shall be those employed
by Euroclear, Clearstream and the Common Depositary from time to time. Notwithstanding the foregoing, certificated Securities of such
series in definitive form (“Certificated Securities”) may be issued in exchange for Global Securities of such series under
the circumstances contemplated by Section 305 of the Indenture (as amended and supplemented as provided in this Annex A-1).

 

(4)                The
Securities of such series shall be sold by the Company to the several underwriters named in the Purchase Agreement dated January 11,
2022 at a price equal to 98.862% of the principal amount thereof. The initial price to public of the Securities of such series shall
be 99.487% of the principal amount thereof, plus accrued interest from January 14, 2022 if settlement occurs after that date.
Underwriting discounts and commissions shall be 0.625% of the principal amount of the Securities of such series.

 

    A-1-1

     

    

 

(5)               
The final maturity date of the Securities of such series on which the principal thereof is due and payable shall be January 14,
2027.

 

(6)               
The interest rate on the Securities of such series, the manner in which the amount of interest payable on the Securities of such
series shall be calculated, the Persons to whom interest on the Securities of such series shall be payable and the Interest Payment Dates
and the Regular Record Dates of the Securities of such series shall all be as set forth in the Form of Security.

 

(7)               
London, England is hereby designated as a Place of Payment for the Securities of such series (provided that, anything in the Indenture
(including, without limitation, Sections 305 and 1002 thereof) to the contrary notwithstanding, the Company shall not be required to maintain
an office or agency for the registration of transfer or exchange of the Securities of such series, nor shall it be required to maintain
a Security Register or Security Registrar for the Securities of such series, in London, England), and the place in London, England where
the principal of, premium, if any, and interest on, and Additional Amounts (as defined in the Form of Security), if any, in respect of,
the Securities of such series shall be payable shall be the office or agency maintained by the Company for such purpose in London, England
from time to time, which shall initially be an office of The Bank of New York Mellon, London Branch in London, England, which on the date
hereof is located at The Bank of New York Mellon, London Branch, One Canada Square, London E14 5AL, England. In addition, the Company
shall maintain an office or agency in Chicago, Illinois where Securities of such series may be surrendered for the registration of transfer
or exchange, where a Security Register and Security Registrar for the Securities of such series shall be maintained, and where notices
or demands to or upon the Company in respect of the Securities of such series and the Indenture may be served, which office or agency
shall initially be an office of the Trustee in Chicago, Illinois, which on the date hereof is located at The Bank of New York Mellon Trust
Company, N.A., 2 North LaSalle Street, Suite 700, Chicago, Illinois 60602; provided, that, so long as any Certificated Securities of such
series are outstanding, the Borough of Manhattan, The City of New York shall also be a Place of Payment for the Securities of such series
and the Company will maintain an office or agency in the Borough of Manhattan, The City of New York where the principal of and premium,
if any, and interest on, and Additional Amounts, if any, in respect of the Securities of such series shall be payable, where Securities
of such series may be surrendered for registration of transfer or exchange, and where notices or demands to or upon the Company in respect
of the Securities of such series and the Indenture may be served.

 

(8)               
The Securities of such series are redeemable at the option of the Company at the times and on the terms and subject to the conditions
set forth in the Form of Security and the Indenture. If less than all of the Outstanding Securities of such series (including, without
limitation, any Outstanding Securities of such series issued upon a re-opening of such series) are to be redeemed, the Securities of such
series (or portions thereof) to be redeemed shall be selected, in the case of Securities of such series in book-entry form evidenced by
one or more Global Securities, in accordance with the applicable procedures of Euroclear, Clearstream or the Common Depositary, as applicable,
or, in the case of any Certificated Securities of such series, by such method as the Trustee shall deem fair and appropriate, all as further
provided in the Indenture, and, for the avoidance of doubt, it is understood and agreed that the foregoing selection of Securities of
such series (or portions thereof) for redemption shall be made from among all of the Outstanding Securities of such series (including,
without limitation, any Outstanding Securities of such series issued upon a re-opening of such series), treated as a single class. No
Security of such series shall be redeemed in part unless the unredeemed principal amount of such Security is an authorized denomination
as set forth in Section (10) below.

 

    A-1-2

     

    

 

(9)            The Securities of such series shall not be repayable or redeemable at the option of the Holders prior to the final maturity date
of the principal thereof (except as provided in Article Five of the Indenture) and shall not be subject to a sinking fund or analogous
provision.

 

(10)          The
Securities of such series shall be issuable in minimum denominations of £100,000 and integral multiples of £1,000 in excess
thereof.

 

(11)           The
Trustee shall be the initial trustee, Security Registrar and transfer agent for the Securities of such series in Chicago, Illinois. The
Bank of New York Mellon, London Branch shall be the initial Paying Agent for the Securities of such series in London, England.

 

(12)           
The entire outstanding principal amount of the Securities of such series shall be payable upon declaration of acceleration of the
maturity of the Securities of such series pursuant to Section 502 of the Indenture.

 

(13)           
The Securities of such series shall be denominated in GBP and, except under the circumstances set forth in the Form of Security,
payment of the principal of, premium, if any, and interest on, and Additional Amounts, if any, in respect of, the Securities of such series
shall be made in GBP.

 

(14)           
Other than (i) for purposes of calculating (if applicable) any Redemption Price pursuant to the terms set forth in the Form
of Security and (ii) currency exchange rates that may be used to convert amounts payable on the Securities of such series into other
currencies if amounts payable on the Securities of such series shall become payable in a currency other than GBP under the circumstances
set forth in the Form of Security, the amount of payments of principal of, premium, if any, and interest on, and Additional Amounts, if
any, in respect of, on the Securities of such series shall not be determined with reference to an index, formula or other similar method.

 

(15)           
Neither the Company nor the Holders of the Securities of such series shall have any right to elect the currency in which payments
on the Securities of such series are made.

 

(16)           
With respect to the Securities of such series, in addition to the covenants of the Company set forth in the Indenture, the covenants
set forth in the Form of Security under the caption “Additional Covenants” (collectively, the “Additional Covenants”)
shall be and hereby are added to the Indenture for the benefit of the Securities of such series and the Holders of the Securities of such
series, and the Additional Covenants, together with the defined terms set forth in the Form of Security under the caption “Certain
Additional Definitions” (the “Additional Definitions”), are hereby incorporated by reference in and made a part of this
Annex A-1 and the Indenture as if set forth in full herein and therein; provided that the Additional Covenants and Additional Definitions
incorporated by reference in this Annex A-1 and the Indenture, and set forth in the Securities of such series, shall only be applicable
with respect to the Securities of such series; provided, further, that except as set forth in Section (24) below, the definition of “Subsidiary”
set forth in the Form of Security shall only be applicable with respect to the Additional Covenants and the Additional Definitions incorporated
by reference in this Annex A-1 and the Indenture and set forth in the Securities of such series.

 

(17)           
The Securities of such series will not be issuable as Bearer Securities, and temporary global certificates will not be issued.

 

(18)            Except
as otherwise provided in the Indenture with respect to the payment of Defaulted Interest on the Securities of such series, interest
payable on any Security of such series on an Interest Payment Date (as such term is defined in the Form of Security) for the
Securities of such series shall be payable only to the Person in whose name that Security (or one or more Predecessor Securities of
such series) is registered at the close of business on the Regular Record Date (as such term is defined in the Form of Security) for
such interest.

 

    A-1-3

     

    

 

(19)           
Subject to the provisions of the immediately succeeding paragraph, Sections 1402 and 1403 of the Indenture shall apply to
the Securities of such series, provided that (i) the Company may effect defeasance and covenant defeasance pursuant to Section 1402
and 1403, respectively, only with respect to all (and not less than all) of the Outstanding Securities of such series and (ii) in
addition to the covenants specifically referred to by section number in Section 1403 of the Indenture (insofar as such covenants
apply to the Securities of such series), the Additional Covenants applicable to the Securities of such series shall also be subject to
covenant defeasance pursuant to Section 1403.

 

Notwithstanding any discharge
of the Indenture with respect to the Securities of such series pursuant to Section 401 of the Indenture or any defeasance or covenant
defeasance with respect to the Securities of such series pursuant to Article Fourteen of the Indenture, and without limitation to any
of the provisions of the Indenture which, as provided in Section 401 or Article Fourteen of the Indenture, as applicable, shall also survive
any such discharge, defeasance or covenant defeasance, as the case may be, the provisions set forth in the Form of Security under the
caption “Payment of Additional Amounts” (including, without limitation, the obligation of the Company to pay Additional Amounts)
shall survive any such discharge, defeasance or covenant defeasance, as the case may be, and remain in full force and effect and shall
also survive any transfer by a Holder or beneficial owner of its Securities of such series or its beneficial interest in Global Securities
of such series.

 

(20)           
The Securities of such series will be authenticated and delivered as provided in Section 303 of the Indenture; provided that,
notwithstanding anything in Section 303 or elsewhere in the Indenture to the contrary, the Securities of such series may, but need not,
be executed under the Company’s corporate seal (or a facsimile thereof).

 

(21)           
The Company shall be required to pay Additional Amounts with respect to the Securities of such series on the terms and subject
to the conditions set forth in the Form of Security.

 

(22)           
The Securities of such series shall not be convertible or exchangeable into Common Stock or Preferred Stock.

 

(23)           
The Securities of such series will be senior obligations of the Company.

 

(24)           
Insofar as Section 801 of the Indenture is applicable to the Securities of such series, the term “Subsidiary,”
as such term is used in Section 801(2) of the Indenture, shall have the meaning set forth in the Form of Security (instead of the
meaning set forth in Section 101 of the Indenture), and the term “indebtedness,” as used in Section 801(2) of the
Indenture, shall be deemed to include, without limitation, “Debt” and “Secured Debt” (as such terms are defined
in the Form of Security).

 

(25)           
The provisions of Section 1011 of the Indenture shall be applicable with respect to any term, provision or condition set forth
in the Additional Covenants applicable to the Securities of such series, in addition to any term, provision and condition set forth in
Sections 1004 to 1008, inclusive, of the Indenture to the extent applicable with respect to the Securities of such series.

 

(26)           
The Securities of such series shall have such other terms and provisions as are set forth in the Form of Security, all of which
terms and provisions are incorporated by reference in and made a part of this Annex A-1 and the Indenture as if set forth in full herein
and therein.

 

    A-1-4

     

    

 

(27)        As used in the Indenture with respect to the Securities of such series and in the certificates evidencing the Securities of such
series, all references to “premium” on the Securities of such series shall mean any amounts (other than accrued interest)
payable upon the redemption of any Securities of such series in excess of 100% of the principal amount of such Securities.

 

(28)        Payments
of principal of, premium, if any, and interest on, and Additional Amounts, if any, in respect of, Global Securities of such series will
be made by the Company by wire transfer of immediately available funds to an account maintained by the payee. In the event that any Securities
of such series are issued in the form of Certificated Securities of such series, payments of principal of, premium, if any, and interest
on, and Additional Amounts, if any, in respect of, such Certificated Securities of such series shall be made in the manner set forth
in the Form of Security and in the Indenture.

 

(29)        The
following provisions of the Indenture are hereby amended, amended and restated, deleted or supplemented, as the case may be, as set forth
below, provided that such amendments, amendments and restatements, deletions and supplements shall only be applicable insofar as the
Indenture relates to the Securities of such series and shall not be applicable with respect to any other series of debt securities issued
under the Indenture:

 

(a)           The
definition of the term “Additional Amounts” appearing in Section 101 of the Indenture shall have the meaning set forth
in the Form of Security instead of the meaning set forth in the definition of such term in Section 101 of the Indenture.

 

(b)          The
definition of the term “Business Day” appearing in Section 101 of the Indenture shall have the meaning set forth in
the Form of Security instead of the meaning set forth in the definition of such term in Section 101 of the Indenture;

 

(c)          The
definition of the term “CEDEL” appearing in Section 101 of the Indenture is amended and restated to read in full as
follows:

 

“ “Clearstream” means Clearstream Banking
S.A. or any successor securities clearing agency thereto.”

 

All other references to “CEDEL” appearing in the Indenture
are hereby amended to refer instead to “Clearstream”.

 

(d)          The definition of the term “Common Depositary” appearing in Sections 101 and 304 of the Indenture shall have the meaning
set forth in the Form of Security instead of the meaning set forth in the definition of such term in Sections 101 and 304 of the Indenture.

 

(e)          The
definition of the term “Euroclear” appearing in Section 101 of the Indenture is hereby amended and restated to read
in full as follows:

 

“ “Euroclear” means Euroclear Bank SA/NV
or any successor securities clearing agency thereto.”

 

(f)           The
definition of “Government Obligations” appearing in Section 101 of the Indenture is hereby amended by replacing the words
 “United States” wherever such words appear in such definition with the words “United States of America”.

 

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(g)           Clause (ii) of the proviso appearing in the definition of the term “Outstanding” in Section 101 of the Indenture
is hereby amended and restated to read in full as follows:

 

“(ii) the principal amount of any Security denominated
in a Foreign Currency that may be counted in making such determination or calculation and that shall be Outstanding for such purpose shall
be equal to the Dollar equivalent of such principal amount, determined as of the second business day prior to the date of determining
whether Holders of the requisite principal amount of Outstanding Securities have given such request, demand, authorization, direction,
notice, consent or waiver or whether a quorum is present or the date of such calculation, as applicable;”

 

(h)          Section 101
of the Indenture is hereby supplemented by adding the following definition in appropriate alphabetical order:

 

““Sterling,” “£” and “GBP”
mean the lawful currency of the United Kingdom.”

 

(i)           The
definitions of the terms “United States” and “United States Person” appearing in Section 101 of the Indenture
shall have the respective meanings set forth in the Form of Security, instead of the meanings set forth in the respective definitions
of such terms in Section 101 of the Indenture.

 

(j)            Notwithstanding the provisions of the last paragraph of Section 203 of the Indenture, the Global Securities shall not bear
the legend set forth in such paragraph but shall instead bear the legends appearing on the Form of Security or such other or additional
legends as may be required or permitted by the Common Depositary, Euroclear or Clearstream from time to time.

 

(k)          The first three sentences of the fifth paragraph of Section 305 of the Indenture are hereby deleted and replaced with the
following:

 

“Notwithstanding
the foregoing, except as otherwise specified pursuant to Section 301 of this Indenture, any permanent Global Security shall be
exchangeable and transferable only as provided in this paragraph. A Global Security may be transferred, in whole but not in part,
only to the Common Depositary for such Global Security or a nominee of the Common Depositary, or by a nominee of the Common
Depositary to the Common Depositary, or to a successor Common Depositary for such Global Security or a nominee of such successor
Common Depositary. If at any time (i) Euroclear or Clearstream notifies the Company that it is unwilling or unable to continue
as a clearing agency for the Global Securities of any series or if Euroclear or Clearstream ceases to be a clearing agency
registered as such under the Securities Exchange Act of 1934, as amended (or any successor thereto), at any time when it is required
to be so registered in order to act as a clearing agency for the Global Securities of such series and in either such case a
successor clearing agency is not appointed within 90 days after the Company receives such notice or learns of such
ineligibility, (ii) the Company determines that the Securities of such series shall no longer be represented by Global
Securities and executes and delivers to the Trustee an Officers’ Certificate to such effect or (iii) an Event of Default
with respect to the Securities of such series shall have occurred and be continuing and beneficial owners representing a majority in
aggregate principal amount of the Outstanding Securities of such series advise Euroclear and Clearstream to cease acting as clearing
agencies for the Global Securities of such series, then the Company shall execute, and the Trustee shall authenticate and deliver,
definitive Securities of like series, rank, tenor and other terms in definitive form in an aggregate principal amount equal to the
aggregate principal amount of such Global Securities. Any Securities of such series in definitive form issued in exchange for
beneficial interests in Global Securities of such series shall be issued in authorized denominations and will be registered in such
name or names as Euroclear or Clearstream, as applicable, shall instruct the Security Registrar for the Securities of such
series.”

 

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(l)                
The Global Securities of such series need not include the provision that would otherwise be required by the third paragraph of
Section 307 of the Indenture.

 

(m)             
Section 704 is hereby amended by replacing the word “semiannually” each time it appears in such Section with the word
 “annually”.

 

(n)               
Section 801 of the Indenture is hereby amended by replacing the words “United States” appearing in such Section
with the words “United States of America”.

 

(o)               
The provisions of the last paragraph of Section 1002 of the Indenture shall not be applicable with respect to the Securities
of such series unless the Company shall have effected defeasance or covenant defeasance of the Securities of such series pursuant to Article
Fourteen of the Indenture and thereafter a Conversion Event shall have occurred with respect to the Securities of such series, in which
case the Company shall maintain an exchange rate agent to determine the market exchange rate referred to in the second paragraph of Section
1405 of the Indenture for so long as such Conversion Event shall be continuing. Such exchange rate agent shall be a financial institution
or a financial services firm (or a subsidiary of either of the foregoing) of recognized standing appointed by the Company.

 

(p)               
Section 1002 of the Indenture is hereby supplemented by adding the following paragraph immediately after the last paragraph
that currently appears in such Section:

 

“If the Securities of any series
shall become or be payable in a currency (the “new currency”) other than the currency in which the Securities of such series
were originally payable, the Company shall maintain an office or agency where the Securities of such series may be presented or surrendered
for payment and where notices and demands to or upon the Company in respect of the Securities of such series and the Indenture may be
served in a major financial center or major city (selected by the Company in its reasonable discretion) in the country which issues such
new currency and maintain such office or agency for so long as the Securities of such series are payable in such new currency or, if no
single country is the issuer of such new currency, in a major financial center or major city (selected by the Company in its reasonable
discretion) in such country as the Company shall in its reasonable discretion deem appropriate, and such financial center or city, as
applicable, shall be deemed a Place of Payment for the Securities of such series so long as the Securities of such series shall be payable
in such new currency (except that the Company shall not be required to maintain an office or agency in such Place of Payment where Securities
of such series may be surrendered for registration of transfer or exchange or a Securities Registrar or Securities Register in such Place
of Payment); provided that the foregoing provisions of this sentence shall not affect the obligations of the Company to maintain an office
or agency where Securities of such series may be presented or surrendered for payment, where Securities of such series may be surrendered
for registration of transfer or exchange, where a Securities Register or Securities Registrar shall be maintained, or where notices and
demands to or upon the Company in respect of the Securities of such series and this Indenture may be served, as the case may be, in such
place or places as may be required pursuant to the terms of the Securities of such series or this Indenture.”

 

    A-1-7

     

    

 

(q)          Section 1010 of the Indenture is hereby amended by deleting the words “except in the case of Section 502(1)” appearing
in the first paragraph of such Section and by adding the following proviso at the end of the first paragraph of such Section immediately
after the words “express mention is not made” and immediately before the period at the end of such paragraph:

 

“; provided that, notwithstanding the foregoing and also
notwithstanding anything in this Indenture to the contrary, if the Securities of any series (a) provide for the payment of Additional
Amounts and (b) further provide that such Additional Amounts, if any, shall be paid as additional interest on the Securities of such series,
then the references to “principal” and “premium” appearing in clause (2) of the first paragraph of Section 501,
clause (1)(B) of the second paragraph of Section 502 and clause (2) of the first paragraph of Section 503 of this Indenture shall not
include any Additional Amounts that may be payable in respect of the principal of or premium, if any, on the Securities of such series,
and instead the references to Additional Amounts appearing in clause (1) of the first paragraph of Section 501, clause (1)(A) of the second
paragraph of Section 502 and clause (1) of the first paragraph of Section 503 of this Indenture shall include all Additional Amounts payable
in respect of the Securities of such series (including, without limitation, Additional Amounts payable in respect of principal of, or
premium, if any, or interest on, or Additional Amounts, if any, in respect of, the Securities of such series).”

 

(r)           Section 1010
of the Indenture is hereby amended and supplemented by deleting the last paragraph of such Section and inserting the following two new
paragraphs immediately after the first paragraph of such Section, such two new paragraphs to read in full as follows:

 

“If the Securities of any series
provide for the payment of Additional Amount and the Company becomes aware that any deduction or withholding for or on account of any
tax, duty, assessment or other governmental charge set forth or provided for in the Securities of such series shall be required with respect
to payments on such Securities, the Company will deliver to the Trustee and each Paying Agent on a date that is at least 30 days
prior to the date such deduction or withholding will be required (unless the obligation to deduct or withhold such taxes, assessments,
duties or other governmental charges arises less than 30 days prior to that date that such deduction or withholding will be required,
in which case the Company shall notify the Trustee and each Paying Agent promptly after the Company becomes aware that such requirement
has arisen) an Officers’ Certificate stating the fact that such deduction or withholding for or on account of any such taxes, duties,
assessments or other governmental charges will be required and specifying by country the amount, if any, required to be withheld on or
deducted from such payments to the Holders of Securities of that series or related coupons. If the Trustee or any Paying Agent, as the
case may be, shall not so receive the above-mentioned Officers’ Certificate, then the Trustee or such Paying Agent, as applicable
shall be entitled (1) to assume that no such withholding or deduction is required with respect to any payment of principal of, or
premium, if any, or interest on, or Additional Amounts, if any, in respect of the Securities of such series until such time as it shall
have received an Officers’ Certificate advising otherwise and (2) to make all payments of principal of, and premium, if any,
and interest on, and Additional Amounts, if any, in respect of, the Securities of such series and related coupons without withholding
or deductions until otherwise advised.”

 

    A-1-8

     

    

 

“If the
Securities of any series provide for the payment of Additional Amounts and if, at the time of deposit of any funds or Government
Obligations as contemplated by Section 401 or Section 1404 of this Indenture in connection with the satisfaction and
discharge, defeasance or covenant defeasance of the Securities of such series, the Company is required, or is aware that it will be
required, to pay Additional Amounts in respect of any principal of, or premium, if any, or interest on, or Additional Amounts in
respect of, the Securities of such series, then the funds and, if applicable, Government Securities so deposited must also be
sufficient to pay and discharge such Additional Amounts as and when the same shall become due and payable in accordance with the
terms of this Indenture and the Securities of such series.”

 

(s)          The first sentence of Section 1104 of the Indenture is hereby amended by replacing the reference to “30 days”
with “15 days”.

 

(t)           Clause (10) of the third paragraph of Section 1104 of the Indenture is hereby amended and restated to read in full as
follows:

 

“(10)       the ISIN number, CUSIP number and Common Code
of such Securities, if any; and”.

 

(u)          Article
One of the Indenture is hereby supplemented by adding a new Section 115 and a new Section 116, which shall appear in the following
order immediately after Section 114 of the Indenture and shall read in full as follows:

 

“SECTION 115.           ELECTRONIC
SIGNATURES; CORPORATE SEAL

 

“The words
 “execution,” “signed,” “signature,” and words of like import in this Indenture shall include
images of manually executed signatures transmitted by facsimile, email or other electronic format (including, without limitation,
 “pdf,” “tif” or “jpg”) and, except as otherwise set forth in the proviso to the last sentence of
this Section 115, electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronically
transmitted signatures, electronic signatures and electronic records (including, without limitation, any contract or other record
created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and
enforceability as a manually executed signature that is delivered physically or use of a paper-based record-keeping system to the
fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New
York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on
the Uniform Electronic Transactions Act or the Uniform Commercial Code. Without limitation to the foregoing and anything in this
Indenture to the contrary notwithstanding, but subject, however, to the proviso to this sentence, (a) any Security,
supplemental indenture, Officers’ Certificate, Company Order, Company Request, Opinion of Counsel or other opinion of counsel,
instrument, agreement or other document delivered pursuant to this Indenture may be executed, attested and transmitted by any of the
foregoing electronic means and formats and (b) all references in Section 303 or elsewhere in this Indenture to the
execution, attestation or authentication of any Security, coupon or certificate of authentication appearing on or attached to any
Security by means of a manual or facsimile signature shall be deemed to include signatures that are made or transmitted by any of
the foregoing electronic means or formats; provided that, notwithstanding the foregoing, no Security, coupon, Officers’
Certificate delivered pursuant to Section 201, 301 or 303 of this Indenture, Company Order delivered pursuant to Section 303 of this
Indenture or supplemental indenture may be executed or attested by DocuSign, AdobeSign or other electronic signature and no
certificate of authentication on any Security may be executed by DocuSign, AdobeSign or other electronic signature and, as provided
in the last paragraph of Section 303 of the Indenture, each certificate of authentication must be executed by the Trustee by
manual signature of an authorized signatory.

 

    A-1-9

     

    

 

“SECTION 116.           ELECTRONIC INSTRUCTIONS

 

“The Trustee shall have the right
to accept and act upon instructions from the Company, including funds transfer instructions (“Instructions”) given pursuant
to this Indenture and delivered using Electronic Means (as defined below); provided, however, that the Company shall provide to the Trustee
an incumbency certificate listing officers with the authority to provide such Instructions (“Relevant Officers”) and containing
specimen signatures of such Relevant Officers, which incumbency certificate shall be amended by the Company whenever a person is to be
added or deleted from the listing.  If the Company elects to give the Trustee Instructions using Electronic Means and the Trustee
in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling
in the absence of negligence or bad faith.  The Company understands and agrees that the Trustee cannot determine the identity of
the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent
by a Relevant Officer listed on the incumbency certificate provided to the Trustee have been sent by such Relevant Officer.  The
Company shall be responsible for ensuring that only Relevant Officers transmit such Instructions to the Trustee and that the Company and
all Relevant Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords
and/or authentication keys upon receipt by the Company.  The Trustee shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding that such directions
conflict or are inconsistent with a subsequent written instruction, other than losses, costs or expenses arising from the Trustee’s
negligence or bad faith.  The Company agrees: (i) to assume (in the absence of negligence or bad faith on the part of the Trustee)
all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the
Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed
of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more
secure methods of transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if any) to
be followed in connection with its transmission of Instructions provide to the Trustee a commercially reasonable degree of protection
in light of its particular needs and circumstances ; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized
use of the security procedures.

 

“As used in this Section 116, "Electronic
Means" shall mean the following communications methods: e-mail, facsimile transmission, secure electronic transmission containing
applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the
Trustee as available for use in connection with its services hereunder.

 

“The foregoing provisions of this
Section 116 shall not limit the provisions of Section 115 but are subject to the prohibition on the use of DocuSign, AdobeSign or other
electronic signatures under the circumstances set forth in Section 115.”

 

(30)        Anything
in the Indenture, the Form of Security or this Annex A-1 to the contrary notwithstanding, in the event of any conflict between the terms
set forth in the Form of Security and the terms set forth in this Annex A-1, the terms set forth in the Form of Security shall govern,
and in the event of any conflict between the terms set forth in the Form of Security or this Annex A-1, on the one hand, and the terms
set forth in the Indenture, on the other hand, the terms of the Form of Security or this Annex A-1, as applicable, shall govern.

 

    A-1-10

     

    

 

 

ANNEX A-2

 

Terms of the
2.500% Notes due 2042

 

For purposes of this Annex A-2, the term “Securities”
shall have the meaning set forth in Section (1) below, the term “Form of Security” means the form of certificate evidencing
the Securities of the series established by this Annex A-2 that is attached as Annex B-2 to the Officers’ Certificate of which this
Annex A-2 is a part; the term “Indenture” means the Indenture dated as of October 28, 1998 between the Company and the Trustee,
as amended or supplemented from time to time (including as provided in this Annex A-2), and including the terms of the Securities of the
series established by this Annex A-2 set forth and incorporated by reference in this Annex A-2; the terms “U.S. dollars,”
 “USD” and “$” mean “Dollars” (as defined in the Indenture); and the terms “sterling” “£”
and “GBP” mean the lawful currency of the United Kingdom. Other capitalized terms that are used in this Annex A-2 and not
otherwise defined in this Annex A-2 but that are defined in the Indenture have the same respective meanings as in the Indenture.

 

(1)               
A series of debt securities is hereby established under the Indenture, and such series of debt securities shall be known and designated
as the “2.500% Notes due 2042” (the “Securities”).

 

(2)               
The aggregate principal amount of the Securities of such series which may be authenticated and delivered under the Indenture is
limited to £250,000,000, except for Securities of such series authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of such series pursuant to Sections 304, 305, 306, 906 or 1107 of the Indenture; provided,
however, that such series of Securities may be re-opened by the Company from time to time for the issuance of additional Securities of
such series, so long as any such additional Securities of such series have the same form and terms (other than, if applicable, the offering
price, underwriting or other discounts and commissions, the original date of issuance, the first date on which interest thereon shall
be payable and the date from which interest thereon shall begin to accrue), and carry the same right to receive accrued and unpaid interest,
as the Securities of such series theretofore issued; provided, however, that, notwithstanding the foregoing, such series of Securities
may not be reopened if the Company has effected defeasance or covenant defeasance with respect to the Securities of such series pursuant
to Section 1402 and 1403, respectively, of the Indenture or has effected satisfaction and discharge with respect to the Securities
of such series pursuant to Section 401 of the Indenture.

 

(3)               
The Securities of such series are issuable only as Registered Securities without coupons and (notwithstanding anything to the contrary
in the Indenture) may, but need not, bear a corporate seal. The Securities of such series shall initially be issued in book-entry form
and represented by one or more permanent Global Securities of such series, the initial Common Depositary (as defined in the Form of Security)
for the Global Securities of such series shall be The Bank of New York Mellon, London Branch, as Common Depositary for Clearstream (as
defined in the Form of Security) and Euroclear (as defined in the Form of Security), and the depositary arrangements shall be those employed
by Euroclear, Clearstream and the Common Depositary from time to time. Notwithstanding the foregoing, certificated Securities of such
series in definitive form (“Certificated Securities”) may be issued in exchange for Global Securities of such series under
the circumstances contemplated by Section 305 of the Indenture (as amended and supplemented as provided in this Annex A-2).

 

(4)               
The Securities of such series shall be sold by the Company to the several underwriters named in the Purchase Agreement dated January
11, 2022 at a price equal to 97.820% of the principal amount thereof. The initial price to public of the Securities of such series shall
be 98.445% of the principal amount thereof, plus accrued interest from January 14, 2022 if settlement occurs after that date. Underwriting
discounts and commissions shall be 0.625% of the principal amount of the Securities of such series.

 

    A-2-1

     

    

 

(5)               
The final maturity date of the Securities of such series on which the principal thereof is due and payable shall be January 14,
2042.

 

(6)               
The interest rate on the Securities of such series, the manner in which the amount of interest payable on the Securities of such
series shall be calculated, the Persons to whom interest on the Securities of such series shall be payable and the Interest Payment Dates
and the Regular Record Dates of the Securities of such series shall all be as set forth in the Form of Security.

 

(7)               
London, England is hereby designated as a Place of Payment for the Securities of such series (provided that, anything in the Indenture
(including, without limitation, Sections 305 and 1002 thereof) to the contrary notwithstanding, the Company shall not be required to maintain
an office or agency for the registration of transfer or exchange of the Securities of such series, nor shall it be required to maintain
a Security Register or Security Registrar for the Securities of such series, in London, England), and the place in London, England where
the principal of, premium, if any, and interest on, and Additional Amounts (as defined in the Form of Security), if any, in respect of,
the Securities of such series shall be payable shall be the office or agency maintained by the Company for such purpose in London, England
from time to time, which shall initially be an office of The Bank of New York Mellon, London Branch in London, England, which on the date
hereof is located at The Bank of New York Mellon, London Branch, One Canada Square, London E14 5AL, England. In addition, the Company
shall maintain an office or agency in Chicago, Illinois where Securities of such series may be surrendered for the registration of transfer
or exchange, where a Security Register and Security Registrar for the Securities of such series shall be maintained, and where notices
or demands to or upon the Company in respect of the Securities of such series and the Indenture may be served, which office or agency
shall initially be an office of the Trustee in Chicago, Illinois, which on the date hereof is located at The Bank of New York Mellon Trust
Company, N.A., 2 North LaSalle Street, Suite 700, Chicago, Illinois 60602; provided, that, so long as any Certificated Securities of such
series are outstanding, the Borough of Manhattan, The City of New York shall also be a Place of Payment for the Securities of such series
and the Company will maintain an office or agency in the Borough of Manhattan, The City of New York where the principal of and premium,
if any, and interest on, and Additional Amounts, if any, in respect of the Securities of such series shall be payable, where Securities
of such series may be surrendered for registration of transfer or exchange, and where notices or demands to or upon the Company in respect
of the Securities of such series and the Indenture may be served.

 

(8)               
The Securities of such series are redeemable at the option of the Company at the times and on the terms and subject to the conditions
set forth in the Form of Security and the Indenture. If less than all of the Outstanding Securities of such series (including, without
limitation, any Outstanding Securities of such series issued upon a re-opening of such series) are to be redeemed, the Securities of such
series (or portions thereof) to be redeemed shall be selected, in the case of Securities of such series in book-entry form evidenced by
one or more Global Securities, in accordance with the applicable procedures of Euroclear, Clearstream or the Common Depositary, as applicable,
or, in the case of any Certificated Securities of such series, by such method as the Trustee shall deem fair and appropriate, all as further
provided in the Indenture, and, for the avoidance of doubt, it is understood and agreed that the foregoing selection of Securities of
such series (or portions thereof) for redemption shall be made from among all of the Outstanding Securities of such series (including,
without limitation, any Outstanding Securities of such series issued upon a re-opening of such series), treated as a single class. No
Security of such series shall be redeemed in part unless the unredeemed principal amount of such Security is an authorized denomination
as set forth in Section (10) below.

 

    A-2-2

     

    

 

(9)             
 The Securities of such series shall not be repayable or redeemable at the option of the Holders prior to the final maturity date
of the principal thereof (except as provided in Article Five of the Indenture) and shall not be subject to a sinking fund or analogous
provision.

 

(10)           
The Securities of such series shall be issuable in minimum denominations of £100,000 and integral multiples of £1,000
in excess thereof.

 

(11)           
The Trustee shall be the initial trustee, Security Registrar and transfer agent for the Securities of such series in Chicago, Illinois.
The Bank of New York Mellon, London Branch shall be the initial Paying Agent for the Securities of such series in London, England.

 

(12)           
The entire outstanding principal amount of the Securities of such series shall be payable upon declaration of acceleration of the
maturity of the Securities of such series pursuant to Section 502 of the Indenture.

 

(13)           
The Securities of such series shall be denominated in GBP and, except under the circumstances set forth in the Form of Security,
payment of the principal of, premium, if any, and interest on, and Additional Amounts, if any, in respect of, the Securities of such series
shall be made in GBP.

 

(14)           
Other than (i) for purposes of calculating (if applicable) any Redemption Price pursuant to the terms set forth in the Form
of Security and (ii) currency exchange rates that may be used to convert amounts payable on the Securities of such series into other
currencies if amounts payable on the Securities of such series shall become payable in a currency other than GBP under the circumstances
set forth in the Form of Security, the amount of payments of principal of, premium, if any, and interest on, and Additional Amounts, if
any, in respect of, on the Securities of such series shall not be determined with reference to an index, formula or other similar method.

 

(15)           
Neither the Company nor the Holders of the Securities of such series shall have any right to elect the currency in which payments
on the Securities of such series are made.

 

(16)           
With respect to the Securities of such series, in addition to the covenants of the Company set forth in the Indenture, the covenants
set forth in the Form of Security under the caption “Additional Covenants” (collectively, the “Additional Covenants”)
shall be and hereby are added to the Indenture for the benefit of the Securities of such series and the Holders of the Securities of such
series, and the Additional Covenants, together with the defined terms set forth in the Form of Security under the caption “Certain
Additional Definitions” (the “Additional Definitions”), are hereby incorporated by reference in and made a part of this
Annex A-2 and the Indenture as if set forth in full herein and therein; provided that the Additional Covenants and Additional Definitions
incorporated by reference in this Annex A-2 and the Indenture, and set forth in the Securities of such series, shall only be applicable
with respect to the Securities of such series; provided, further, that except as set forth in Section (24) below, the definition of “Subsidiary”
set forth in the Form of Security shall only be applicable with respect to the Additional Covenants and the Additional Definitions incorporated
by reference in this Annex A-2 and the Indenture and set forth in the Securities of such series.

 

(17)           
The Securities of such series will not be issuable as Bearer Securities, and temporary global certificates will not be issued.

 

(18)            Except
as otherwise provided in the Indenture with respect to the payment of Defaulted Interest on the Securities of such series, interest
payable on any Security of such series on an Interest Payment Date (as such term is defined in the Form of Security) for the
Securities of such series shall be payable only to the Person in whose name that Security (or one or more Predecessor Securities of
such series) is registered at the close of business on the Regular Record Date (as such term is defined in the Form of Security) for
such interest.

 

    A-2-3

     

    

 

(19)           
Subject to the provisions of the immediately succeeding paragraph, Sections 1402 and 1403 of the Indenture shall apply to
the Securities of such series, provided that (i) the Company may effect defeasance and covenant defeasance pursuant to Section 1402
and 1403, respectively, only with respect to all (and not less than all) of the Outstanding Securities of such series and (ii) in
addition to the covenants specifically referred to by section number in Section 1403 of the Indenture (insofar as such covenants
apply to the Securities of such series), the Additional Covenants applicable to the Securities of such series shall also be subject to
covenant defeasance pursuant to Section 1403.

 

Notwithstanding any discharge
of the Indenture with respect to the Securities of such series pursuant to Section 401 of the Indenture or any defeasance or covenant
defeasance with respect to the Securities of such series pursuant to Article Fourteen of the Indenture, and without limitation to any
of the provisions of the Indenture which, as provided in Section 401 or Article Fourteen of the Indenture, as applicable, shall also survive
any such discharge, defeasance or covenant defeasance, as the case may be, the provisions set forth in the Form of Security under the
caption “Payment of Additional Amounts” (including, without limitation, the obligation of the Company to pay Additional Amounts)
shall survive any such discharge, defeasance or covenant defeasance, as the case may be, and remain in full force and effect and shall
also survive any transfer by a Holder or beneficial owner of its Securities of such series or its beneficial interest in Global Securities
of such series.

 

(20)           
The Securities of such series will be authenticated and delivered as provided in Section 303 of the Indenture; provided that,
notwithstanding anything in Section 303 or elsewhere in the Indenture to the contrary, the Securities of such series may, but need not,
be executed under the Company’s corporate seal (or a facsimile thereof).

 

(21)           
The Company shall be required to pay Additional Amounts with respect to the Securities of such series on the terms and subject
to the conditions set forth in the Form of Security.

 

(22)           
The Securities of such series shall not be convertible or exchangeable into Common Stock or Preferred Stock.

 

(23)           
The Securities of such series will be senior obligations of the Company.

 

(24)           
Insofar as Section 801 of the Indenture is applicable to the Securities of such series, the term “Subsidiary,”
as such term is used in Section 801(2) of the Indenture, shall have the meaning set forth in the Form of Security (instead of the
meaning set forth in Section 101 of the Indenture), and the term “indebtedness,” as used in Section 801(2) of the
Indenture, shall be deemed to include, without limitation, “Debt” and “Secured Debt” (as such terms are defined
in the Form of Security).

 

(25)           
The provisions of Section 1011 of the Indenture shall be applicable with respect to any term, provision or condition set forth
in the Additional Covenants applicable to the Securities of such series, in addition to any term, provision and condition set forth in
Sections 1004 to 1008, inclusive, of the Indenture to the extent applicable with respect to the Securities of such series.

 

(26)           
The Securities of such series shall have such other terms and provisions as are set forth in the Form of Security, all of which
terms and provisions are incorporated by reference in and made a part of this Annex A-2 and the Indenture as if set forth in full herein
and therein.

 

    A-2-4

     

    

 

(27)           
 As used in the Indenture with respect to the Securities of such series and in the certificates evidencing the Securities of such
series, all references to “premium” on the Securities of such series shall mean any amounts (other than accrued interest)
payable upon the redemption of any Securities of such series in excess of 100% of the principal amount of such Securities.

 

(28)           
Payments of principal of, premium, if any, and interest on, and Additional Amounts, if any, in respect of, Global Securities of
such series will be made by the Company by wire transfer of immediately available funds to an account maintained by the payee. In the
event that any Securities of such series are issued in the form of Certificated Securities of such series, payments of principal of, premium,
if any, and interest on, and Additional Amounts, if any, in respect of, such Certificated Securities of such series shall be made in the
manner set forth in the Form of Security and in the Indenture.

 

(29)           
The following provisions of the Indenture are hereby amended, amended and restated, deleted or supplemented, as the case may be,
as set forth below, provided that such amendments, amendments and restatements, deletions and supplements shall only be applicable insofar
as the Indenture relates to the Securities of such series and shall not be applicable with respect to any other series of debt securities
issued under the Indenture:

 

(a)               
The definition of the term “Additional Amounts” appearing in Section 101 of the Indenture shall have the meaning
set forth in the Form of Security instead of the meaning set forth in the definition of such term in Section 101 of the Indenture.

 

(b)               
The definition of the term “Business Day” appearing in Section 101 of the Indenture shall have the meaning set
forth in the Form of Security instead of the meaning set forth in the definition of such term in Section 101 of the Indenture;

 

(c)               
The definition of the term “CEDEL” appearing in Section 101 of the Indenture is amended and restated to read in
full as follows:

 

    “ “Clearstream” means Clearstream Banking
S.A. or any successor securities clearing agency thereto.”

 

All other references to “CEDEL” appearing in the Indenture
are hereby amended to refer instead to “Clearstream”.

 

(d)               
The definition of the term “Common Depositary” appearing in Sections 101 and 304 of the Indenture shall have the meaning
set forth in the Form of Security instead of the meaning set forth in the definition of such term in Sections 101 and 304 of the Indenture.

 

(e)               
The definition of the term “Euroclear” appearing in Section 101 of the Indenture is hereby amended and restated
to read in full as follows:

 

    “ “Euroclear” means Euroclear Bank SA/NV
or any successor securities clearing agency thereto.”

 

(f)                
The definition of “Government Obligations” appearing in Section 101 of the Indenture is hereby amended by replacing
the words “United States” wherever such words appear in such definition with the words “United States of America”.

 

    A-2-5

     

    

 

(g)         
 Clause (ii) of the proviso appearing in the definition of the term “Outstanding” in Section 101 of the Indenture
is hereby amended and restated to read in full as follows:

 

“(ii) the principal amount of any Security denominated
in a Foreign Currency that may be counted in making such determination or calculation and that shall be Outstanding for such purpose shall
be equal to the Dollar equivalent of such principal amount, determined as of the second business day prior to the date of determining
whether Holders of the requisite principal amount of Outstanding Securities have given such request, demand, authorization, direction,
notice, consent or waiver or whether a quorum is present or the date of such calculation, as applicable;”

 

(h)         
Section 101 of the Indenture is hereby supplemented by adding the following definition in appropriate alphabetical order:

 

““Sterling,” “£” and “GBP”
mean the lawful currency of the United Kingdom.”

 

(i)          
The definitions of the terms “United States” and “United States Person” appearing in Section 101 of
the Indenture shall have the respective meanings set forth in the Form of Security, instead of the meanings set forth in the respective
definitions of such terms in Section 101 of the Indenture.

 

(j)           
Notwithstanding the provisions of the last paragraph of Section 203 of the Indenture, the Global Securities shall not bear
the legend set forth in such paragraph but shall instead bear the legends appearing on the Form of Security or such other or additional
legends as may be required or permitted by the Common Depositary, Euroclear or Clearstream from time to time.

 

(k)          
The first three sentences of the fifth paragraph of Section 305 of the Indenture are hereby deleted and replaced with the
following:

 

“Notwithstanding the foregoing,
except as otherwise specified pursuant to Section 301 of this Indenture, any permanent Global Security shall be exchangeable and
transferable only as provided in this paragraph. A Global Security may be transferred, in whole but not in part, only to the Common
Depositary for such Global Security or a nominee of the Common Depositary, or by a nominee of the Common Depositary to the Common
Depositary, or to a successor Common Depositary for such Global Security or a nominee of such successor Common Depositary. If at any
time (i) Euroclear or Clearstream notifies the Company that it is unwilling or unable to continue as a clearing agency for the
Global Securities of any series or if Euroclear or Clearstream ceases to be a clearing agency registered as such under the
Securities Exchange Act of 1934, as amended (or any successor thereto), at any time when it is required to be so registered in order
to act as a clearing agency for the Global Securities of such series and in either such case a successor clearing agency is not
appointed within 90 days after the Company receives such notice or learns of such ineligibility, (ii) the Company
determines that the Securities of such series shall no longer be represented by Global Securities and executes and delivers to the
Trustee an Officers’ Certificate to such effect or (iii) an Event of Default with respect to the Securities of such
series shall have occurred and be continuing and beneficial owners representing a majority in aggregate principal amount of the
Outstanding Securities of such series advise Euroclear and Clearstream to cease acting as clearing agencies for the Global
Securities of such series, then the Company shall execute, and the Trustee shall authenticate and deliver, definitive Securities of
like series, rank, tenor and other terms in definitive form in an aggregate principal amount equal to the aggregate principal amount
of such Global Securities. Any Securities of such series in definitive form issued in exchange for beneficial interests in Global
Securities of such series shall be issued in authorized denominations and will be registered in such name or names as Euroclear or
Clearstream, as applicable, shall instruct the Security Registrar for the Securities of such series.”

 

    A-2-6

     

    

 

(l)                
The Global Securities of such series need not include the provision that would otherwise be required by the third paragraph of
Section 307 of the Indenture.

 

(m)             
Section 704 is hereby amended by replacing the word “semiannually” each time it appears in such Section with the word
 “annually”.

 

(n)               
Section 801 of the Indenture is hereby amended by replacing the words “United States” appearing in such Section
with the words “United States of America”.

 

(o)               
The provisions of the last paragraph of Section 1002 of the Indenture shall not be applicable with respect to the Securities
of such series unless the Company shall have effected defeasance or covenant defeasance of the Securities of such series pursuant to Article
Fourteen of the Indenture and thereafter a Conversion Event shall have occurred with respect to the Securities of such series, in which
case the Company shall maintain an exchange rate agent to determine the market exchange rate referred to in the second paragraph of Section
1405 of the Indenture for so long as such Conversion Event shall be continuing. Such exchange rate agent shall be a financial institution
or a financial services firm (or a subsidiary of either of the foregoing) of recognized standing appointed by the Company.

 

(p)               
Section 1002 of the Indenture is hereby supplemented by adding the following paragraph immediately after the last paragraph
that currently appears in such Section:

 

“If the Securities of any series
shall become or be payable in a currency (the “new currency”) other than the currency in which the Securities of such series
were originally payable, the Company shall maintain an office or agency where the Securities of such series may be presented or surrendered
for payment and where notices and demands to or upon the Company in respect of the Securities of such series and the Indenture may be
served in a major financial center or major city (selected by the Company in its reasonable discretion) in the country which issues such
new currency and maintain such office or agency for so long as the Securities of such series are payable in such new currency or, if no
single country is the issuer of such new currency, in a major financial center or major city (selected by the Company in its reasonable
discretion) in such country as the Company shall in its reasonable discretion deem appropriate, and such financial center or city, as
applicable, shall be deemed a Place of Payment for the Securities of such series so long as the Securities of such series shall be payable
in such new currency (except that the Company shall not be required to maintain an office or agency in such Place of Payment where Securities
of such series may be surrendered for registration of transfer or exchange or a Securities Registrar or Securities Register in such Place
of Payment); provided that the foregoing provisions of this sentence shall not affect the obligations of the Company to maintain an office
or agency where Securities of such series may be presented or surrendered for payment, where Securities of such series may be surrendered
for registration of transfer or exchange, where a Securities Register or Securities Registrar shall be maintained, or where notices and
demands to or upon the Company in respect of the Securities of such series and this Indenture may be served, as the case may be, in such
place or places as may be required pursuant to the terms of the Securities of such series or this Indenture.”

 

    A-2-7

     

    

 

(q)         
 Section 1010 of the Indenture is hereby amended by deleting the words “except in the case of Section 502(1)” appearing
in the first paragraph of such Section and by adding the following proviso at the end of the first paragraph of such Section immediately
after the words “express mention is not made” and immediately before the period at the end of such paragraph:

 

“; provided that, notwithstanding the foregoing and also
notwithstanding anything in this Indenture to the contrary, if the Securities of any series (a) provide for the payment of Additional
Amounts and (b) further provide that such Additional Amounts, if any, shall be paid as additional interest on the Securities of such series,
then the references to “principal” and “premium” appearing in clause (2) of the first paragraph of Section 501,
clause (1)(B) of the second paragraph of Section 502 and clause (2) of the first paragraph of Section 503 of this Indenture shall not
include any Additional Amounts that may be payable in respect of the principal of or premium, if any, on the Securities of such series,
and instead the references to Additional Amounts appearing in clause (1) of the first paragraph of Section 501, clause (1)(A) of the second
paragraph of Section 502 and clause (1) of the first paragraph of Section 503 of this Indenture shall include all Additional Amounts payable
in respect of the Securities of such series (including, without limitation, Additional Amounts payable in respect of principal of, or
premium, if any, or interest on, or Additional Amounts, if any, in respect of, the Securities of such series).”

 

(r)           Section 1010 of the Indenture is hereby amended and supplemented by deleting the last paragraph of such Section and inserting
the following two new paragraphs immediately after the first paragraph of such Section, such two new paragraphs to read in full as follows:

 

“If the Securities of any series
provide for the payment of Additional Amount and the Company becomes aware that any deduction or withholding for or on account of any
tax, duty, assessment or other governmental charge set forth or provided for in the Securities of such series shall be required with respect
to payments on such Securities, the Company will deliver to the Trustee and each Paying Agent on a date that is at least 30 days
prior to the date such deduction or withholding will be required (unless the obligation to deduct or withhold such taxes, assessments,
duties or other governmental charges arises less than 30 days prior to that date that such deduction or withholding will be required,
in which case the Company shall notify the Trustee and each Paying Agent promptly after the Company becomes aware that such requirement
has arisen) an Officers’ Certificate stating the fact that such deduction or withholding for or on account of any such taxes, duties,
assessments or other governmental charges will be required and specifying by country the amount, if any, required to be withheld on or
deducted from such payments to the Holders of Securities of that series or related coupons. If the Trustee or any Paying Agent, as the
case may be, shall not so receive the above-mentioned Officers’ Certificate, then the Trustee or such Paying Agent, as applicable
shall be entitled (1) to assume that no such withholding or deduction is required with respect to any payment of principal of, or
premium, if any, or interest on, or Additional Amounts, if any, in respect of the Securities of such series until such time as it shall
have received an Officers’ Certificate advising otherwise and (2) to make all payments of principal of, and premium, if any,
and interest on, and Additional Amounts, if any, in respect of, the Securities of such series and related coupons without withholding
or deductions until otherwise advised.”

 

    A-2-8

     

    

 

“If the Securities of any
series provide for the payment of Additional Amounts and if, at the time of deposit of any funds or Government Obligations as
contemplated by Section 401 or Section 1404 of this Indenture in connection with the satisfaction and discharge,
defeasance or covenant defeasance of the Securities of such series, the Company is required, or is aware that it will be required,
to pay Additional Amounts in respect of any principal of, or premium, if any, or interest on, or Additional Amounts in respect of,
the Securities of such series, then the funds and, if applicable, Government Securities so deposited must also be sufficient to pay
and discharge such Additional Amounts as and when the same shall become due and payable in accordance with the terms of this
Indenture and the Securities of such series.”

 

(s)         
The first sentence of Section 1104 of the Indenture is hereby amended by replacing the reference to “30 days”
with “15 days”.

 

(t)          
Clause (10) of the third paragraph of Section 1104 of the Indenture is hereby amended and restated to read in full as
follows:

 

“(10)      the ISIN number, CUSIP number and Common Code
of such Securities, if any; and”.

 

(u)         
Article One of the Indenture is hereby supplemented by adding a new Section 115 and a new Section 116, which shall appear
in the following order immediately after Section 114 of the Indenture and shall read in full as follows:

 

“SECTION 115.         ELECTRONIC
SIGNATURES; CORPORATE SEAL

 

“The words
 “execution,” “signed,” “signature,” and words of like import in this Indenture shall include
images of manually executed signatures transmitted by facsimile, email or other electronic format (including, without limitation,
 “pdf,” “tif” or “jpg”) and, except as otherwise set forth in the proviso to the last sentence of
this Section 115, electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronically
transmitted signatures, electronic signatures and electronic records (including, without limitation, any contract or other record
created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and
enforceability as a manually executed signature that is delivered physically or use of a paper-based record-keeping system to the
fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New
York State Electronic Signatures and Records Act and any other applicable law, including, without limitation, any state law based on
the Uniform Electronic Transactions Act or the Uniform Commercial Code. Without limitation to the foregoing and anything in this
Indenture to the contrary notwithstanding, but subject, however, to the proviso to this sentence, (a) any Security,
supplemental indenture, Officers’ Certificate, Company Order, Company Request, Opinion of Counsel or other opinion of counsel,
instrument, agreement or other document delivered pursuant to this Indenture may be executed, attested and transmitted by any of the
foregoing electronic means and formats and (b) all references in Section 303 or elsewhere in this Indenture to the
execution, attestation or authentication of any Security, coupon or certificate of authentication appearing on or attached to any
Security by means of a manual or facsimile signature shall be deemed to include signatures that are made or transmitted by any of
the foregoing electronic means or formats; provided that, notwithstanding the foregoing, no Security, coupon, Officers’
Certificate delivered pursuant to Section 201, 301 or 303 of this Indenture, Company Order delivered pursuant to Section 303 of this
Indenture or supplemental indenture may be executed or attested by DocuSign, AdobeSign or other electronic signature and no
certificate of authentication on any Security may be executed by DocuSign, AdobeSign or other electronic signature and, as provided
in the last paragraph of Section 303 of the Indenture, each certificate of authentication must be executed by the Trustee by
manual signature of an authorized signatory.

 

    A-2-9

     

    

 

“SECTION 116.          ELECTRONIC INSTRUCTIONS

 

“The Trustee shall have the right
to accept and act upon instructions from the Company, including funds transfer instructions (“Instructions”) given pursuant
to this Indenture and delivered using Electronic Means (as defined below); provided, however, that the Company shall provide to the Trustee
an incumbency certificate listing officers with the authority to provide such Instructions (“Relevant Officers”) and containing
specimen signatures of such Relevant Officers, which incumbency certificate shall be amended by the Company whenever a person is to be
added or deleted from the listing.  If the Company elects to give the Trustee Instructions using Electronic Means and the Trustee
in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions shall be deemed controlling
in the absence of negligence or bad faith.  The Company understands and agrees that the Trustee cannot determine the identity of
the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent
by a Relevant Officer listed on the incumbency certificate provided to the Trustee have been sent by such Relevant Officer.  The
Company shall be responsible for ensuring that only Relevant Officers transmit such Instructions to the Trustee and that the Company and
all Relevant Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords
and/or authentication keys upon receipt by the Company.  The Trustee shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Trustee’s reliance upon and compliance with such Instructions notwithstanding that such directions
conflict or are inconsistent with a subsequent written instruction, other than losses, costs or expenses arising from the Trustee’s
negligence or bad faith.  The Company agrees: (i) to assume (in the absence of negligence or bad faith on the part of the Trustee)
all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the
Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed
of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more
secure methods of transmitting Instructions than the method(s) selected by the Company; (iii) that the security procedures (if any) to
be followed in connection with its transmission of Instructions provide to the Trustee a commercially reasonable degree of protection
in light of its particular needs and circumstances ; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized
use of the security procedures.

 

“As used in this Section 116, "Electronic
Means" shall mean the following communications methods: e-mail, facsimile transmission, secure electronic transmission containing
applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the
Trustee as available for use in connection with its services hereunder.

 

“The foregoing provisions of this
Section 116 shall not limit the provisions of Section 115 but are subject to the prohibition on the use of DocuSign, AdobeSign or other
electronic signatures under the circumstances set forth in Section 115.”

 

(30)            Anything
in the Indenture, the Form of Security or this Annex A-2 to the contrary notwithstanding, in the event of any conflict between the
terms set forth in the Form of Security and the terms set forth in this Annex A-2, the terms set forth in the Form of Security shall
govern, and in the event of any conflict between the terms set forth in the Form of Security or this Annex A-2, on the one hand, and
the terms set forth in the Indenture, on the other hand, the terms of the Form of Security or this Annex A-2, as applicable, shall
govern.

 

    A-2-10

     

    

 

 

ANNEX B-1

 

Form of 1.875% Note due 2027

 

     

     

    

 

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

 

[FOR GLOBAL SECURITIES — UNLESS THIS
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK SA/NV (“EUROCLEAR,” WHICH TERM INCLUDES ANY SUCCESSOR
SECURITIES CLEARING AGENCY THERETO) OR CLEARSTREAM BANKING S.A. (“CLEARSTREAM,” WHICH TERM INCLUDES ANY SUCCESSOR CLEARING
AGENCY THERETO, AND TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SUCH SECURITY ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY
(NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS
MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, THE
BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN.]

 

PRINCIPAL AMOUNT:
£

REGISTERED NO.: R-

CUSIP NO.: 756109 BM5

ISIN NO.: XS2433105124

Common Code: 243310512

 

REALTY INCOME CORPORATION

 

1.875% NOTES DUE 2027

 

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 Pounds Sterling (as defined below) on
January 14, 2027 (the “Final Maturity Date”), and to pay interest thereon from and including January 14, 2022, or from
and including the most recent date to which interest has been paid or duly provided for, annually in arrears on January 14 of each
year (each, an “Interest Payment Date”), commencing January 14, 2023, at the rate of 1.875% 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 the
Regular Record Date (as defined below) immediately preceding such Interest Payment Date (regardless of whether such Regular Record
Date is a Business Day (as defined below)). 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 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 on the Notes will be computed on the basis of the actual number of days in the period for which interest is
being calculated and the actual number of days from and including the last date on which interest was paid on the Notes (or from and
including January 14, 2022 if no interest has been paid on the Notes) to but excluding the next scheduled Interest Payment Date.
This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market
Association. If any principal of, premium, if any, or interest on, or Additional Amounts (as defined below), if any, in respect of,
any of the Notes is not paid when due, then such overdue principal and, to the extent permitted by law, such overdue premium,
interest or Additional Amounts, as the case may be, shall bear interest, until paid or until such payment is duly provided for, at
the rate of 1.875% per annum.

 

    B-1-1

     

    

 

If any Interest Payment Date, the Final Maturity
Date, any Redemption Date, any Maturity or any other date on which the principal of, or premium, if any, or interest on, or Additional
Amounts, if any, in respect of, a Note becomes due and payable falls on a day that is not a Business Day, the required payment may be
made on the next succeeding Business Day with the same force and effect as if it were made on such Interest Payment Date, Final Maturity
Date, Redemption Date, Maturity or other date on which any such amount becomes due and payable and no interest will accrue on the amount
so payable for the period from and after such Interest Payment Date, Final Maturity Date, Redemption Date, Maturity or other date on which
any such amount becomes due and payable, as the case may be.

 

Except as provided in the next paragraph and in the
proviso to this sentence, all payments of principal of, and premium, if any, and interest on, and Additional Amounts, if any, in respect
of, the Notes will be made in GBP (as defined below); provided that if GBP is unavailable to the Company due to the imposition of exchange
controls or other circumstances beyond its control, then all payments in respect of the Notes will be made in Dollars until GBP is again
available to the Company. In such circumstances, the amount payable on any date in GBP will be converted into Dollars at the rate mandated
by the Board of Governors of the U.S. Federal Reserve System (or any successor thereto) as of the close of business on the second Business
Day prior to the relevant payment date or, if the Board of Governors of the U.S. Federal Reserve System (or any successor thereto) has
not mandated a rate of conversion, on the basis of the most recent Dollar/GBP exchange rate published in The Wall Street Journal (or any
successor thereto) on or prior to the second Business Day prior to the relevant payment date. Any payment in respect of the Notes so made
in Dollars under such circumstances will not constitute an Event of Default with respect to the Notes under the Indenture. Neither the
Trustee nor any Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

The Notes may also be payable in a currency other
than GBP if (a) the Company effects defeasance or covenant defeasance with respect to the Notes pursuant to Article Fourteen of the Indenture
and (b) thereafter a Conversion Event occurs with respect to GBP and shall be continuing, all as more fully provided in Section 1405 of
the Indenture.

 

If this Note is a Global Security, all payments of
principal of, premium, if any, and interest on, and Additional Amounts, if any, 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. If this Note is not a Global Security (a “Certificated
Note”), payments of interest on this Note may be made, at the Company’s option, 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, all on the terms set forth in the Indenture; provided, however, that a Holder of £4.0 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 specified by such Holder so long as such Holder has given appropriate wire transfer instructions to the
Trustee or a Paying Agent for the Notes at least 10 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 £4.0 million or more
in aggregate principal amount of Certificated Notes.

 

Payments of principal of, and premium, if any,
and interest on, and Additional Amounts, if any, in respect of, Certificated Notes that are due and payable on the Final Maturity
Date, any Redemption Date, any Maturity 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 specified by the Holders thereof, so long as such Holders have given appropriate
wire transfer instructions to the Trustee or a Paying Agent, against surrender of such Notes to the Trustee or a Paying Agent;
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, Maturity 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 Date according to the terms and provisions of
the Notes and the Indenture.

 

    B-1-2

     

    

 

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 “1.875% Notes due 2027.” 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.

 

Optional Redemption

 

Prior to October 14, 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 an annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate plus 15 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 for the Notes will be payable 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.

 

“Comparable
Government Bond Rate” means, with respect to any Redemption Date for the Notes, the price, expressed as a percentage (rounded
to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes to be redeemed, if they
were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross redemption
yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond
prevailing at 11:00 a.m. (London time) on such Business Day as determined by an independent investment bank selected by the Company.

 

“Comparable
Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an
independent investment bank selected by Company, a United Kingdom government bond whose maturity is closest to the Par Call
Date or, if such independent investment bank in its discretion determines that such similar bond is not in issue, such other United
Kingdom government bond as such independent investment bank may, with the advice of the three brokers of, and/or market makers in,
United Kingdom government bonds selected by the Company, determine to be appropriate for determining the Comparable Government Bond
Rate.

 

    B-1-3

     

    

 

Redemption for Changes in Taxes

 

If (1)(a) as a result of any change in, or amendment
to, the laws (or any regulations or rulings promulgated thereunder) or treaties of the United States (as defined below) or any political
subdivision or taxing authority thereof or therein having power to tax (each, a “Relevant Taxing Jurisdiction”), or any change
in, or amendment to, any official position regarding the application, administration or interpretation of such laws, treaties, regulations
or rulings (including by virtue of a holding, judgment or order by a court of competent jurisdiction or a change in published administrative
practice), which change or amendment becomes effective on or after January 11, 2022, the Company becomes or will become obligated to pay
any Additional Amounts or (b) any act is taken by a Relevant Taxing Jurisdiction on or after January 11, 2022, whether or not such act
is taken with respect to the Company or any affiliate of the Company, that results in a substantial probability that the Company will
or may be required to pay any Additional Amounts, and (2) the Company determines, in its business judgment, that the obligation to pay
Additional Amounts cannot be avoided by taking reasonable measures available to it, including by making payments through a different Paying
Agent (provided that such reasonable measures do not include substitution of another entity as the obligor under the Notes), then the
Company may, at its option, redeem the Notes, in whole but not in part, at a Redemption Price equal to 100% of the principal amount of
the Notes, plus accrued and unpaid interest on the Notes to the applicable Redemption Date. Notwithstanding the foregoing, installments
of interest on Notes whose Stated Maturity is on or prior to a Redemption Date for the Notes will be payable 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. No redemption pursuant to this paragraph may be made unless the Company
has received a written opinion of independent counsel to the effect that, as a result of such change or amendment the Company has become
or will become obligated to pay, or that such act taken by a Relevant Taxing Jurisdiction has resulted in a substantial probability that
the Company will or may be required to pay, any Additional Amounts, and the Company shall have delivered to the Trustee such legal opinion
together with an Officers’ Certificate stating that, based on such opinion, the Company is entitled to redeem the Notes pursuant
to the provisions described in this paragraph and the other provisions of the Notes and the Indenture. The Trustee shall be entitled to
rely on such Officers’ Certificate and opinion of counsel as sufficient evidence of the existence and satisfaction of the conditions
precedent as described above in this paragraph, in which event it will be conclusive and binding on the Holders of the Notes.

 

As used in this Note, the term “United States”
means the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction.

 

Notice of Redemption

 

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 the Holders of Notes (or portions of Notes) to be
redeemed.

 

Payment of Additional Amounts

 

All payments of principal of, and premium, if any,
and interest on the Notes will be made free and clear of and without withholding or deduction for or on account of any present or future
tax, duty, assessment or other governmental charge of whatsoever nature (collectively, “Taxes”) imposed by any Relevant Taxing
Jurisdiction, unless the withholding or deduction of such Taxes is required by law or the official interpretation or administration thereof.

 

    B-1-4

     

    

 

In the event that any withholding or deduction
from or on any payments on or in respect of the Notes for or on account of any Taxes is required by a Relevant Taxing Jurisdiction,
the Company will, subject to the exceptions and limitations set forth below, pay, as additional interest on the Notes, such
additional amounts (“Additional Amounts”) as will result in receipt by each holder of a Note that is not a United States
Person (as defined below) of such amounts (after all such withholding or deduction, including from or on any Additional Amounts) as
would have been received by such holder had no such withholding or deduction been required. The Company will not be required,
however, to make any payment of Additional Amounts for or on account of:

 

(1) any Taxes that are imposed or withheld by reason of a holder
of Notes (or the beneficial owner for whose benefit such holder holds such Note) (or a fiduciary, settlor, beneficiary, member or shareholder
of the holder if the holder is an estate, trust, partnership or corporation, or a Person holding a power over an estate or trust administered
by a fiduciary holder) being considered as:

 

(a) being or having been present or engaged in a trade or
business in the United States or having or having had a permanent establishment in the United States;

 

(b) having a current or former relationship with the United
States, including a relationship as a citizen or resident thereof;

 

(c) being or having been a foreign or domestic personal holding
company, a passive foreign investment company or a controlled foreign corporation with respect to the United States or a corporation that
has accumulated earnings to avoid United States federal income tax;

 

(d) being or having been a “10 percent shareholder”
of the Company within the meaning of section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”),
or any successor provision;

 

(e) being a controlled foreign corporation that is related
to the Company within the meaning of Section 864(d)(4) of the Code or any successor provision; or

 

(f) being or having been a bank receiving interest described
in section 881(c)(3)(A) of the Code or any successor provision;

 

(2) any holder that is not the sole beneficial owner of the
Note, or a portion thereof, or that is a fiduciary, limited liability company or partnership, but only to the extent that a beneficiary
or settlor with respect to the fiduciary or a beneficial owner or member of the partnership or limited liability company would not have
been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) any Taxes that are imposed or withheld by reason of the
failure to (a) comply with certification, identification or information reporting requirements concerning the nationality, residence,
identity or connection with a Relevant Taxing Jurisdiction of the holder or beneficial owner of such Note, if compliance is required by
statute or by regulation of the Relevant Taxing Jurisdiction as a precondition to relief or exemption from such Taxes (including the submission,
if applicable, of a United States Internal Revenue Service (“IRS”) Form W-8 (with any required attachments)) or (b) comply
with any information gathering and reporting requirements or to take any similar action (including entering into any agreement with the
IRS), in each case, that are required to obtain the maximum available exemption from withholding by a Relevant Taxing Jurisdiction that
is available to payments received by or on behalf of the holder or beneficial owner;

 

(4) any Taxes that are imposed otherwise than by withholding
from the payment;

 

(5) any Taxes that are imposed or withheld by reason of a change
in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due
or is duly provided for, whichever occurs later;

 

    B-1-5

     

    

 

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

 

(7) any Taxes required to be withheld by any Paying Agent from
any payment of principal of, or premium, if any, or interest on, any Note, if such payment can be made without such withholding by any
other Paying Agent;

 

(8) any Taxes that are imposed or levied by reason of the presentation
(where presentation is required in order to receive payment) of such Notes for payment on a date more than 30 days after the date on which
such payment became due and payable, except to the extent that the holder or beneficial owner thereof would have been entitled to Additional
Amounts had the Notes been presented for payment on any date during such 30-day period;

 

(9) any backup withholding or any Taxes imposed under Sections
1471 through 1474 of the Code (or any successor provisions thereto), any current or future regulations or official interpretations thereof,
any agreements entered into pursuant to Section 1471(b)(1) of the Code (or any successor provision thereto), or any fiscal or regulatory
legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation
of such sections of the Code (or any successor thereto); or

 

(10) any combination of any items (1) through (9).

 

Except as specifically provided under this caption
 “Payment of Additional Amounts,” the Company shall not be required to make any payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority thereof or therein on any payment of principal
of, premium, if any, or interest on, or Additional Amounts in respect of, the Notes.

 

If the Company becomes aware that it will be obligated
to pay Additional Amounts with respect to any payment under or with respect to the Notes, the Company will deliver to the Trustee and
each Paying Agent on a date that is at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts
arises less than 30 days prior to that payment date, in which case the Company shall notify the Trustee and each Paying Agent promptly
after the Company becomes aware that such obligation has arisen) an Officers’ Certificate stating the fact that Additional Amounts
will be payable and the amount to be so payable. The Officers’ Certificate must also set forth any other information reasonably
necessary to enable the Paying Agents to pay such Additional Amounts to Holders on the relevant payment date. The Trustee and each Paying
Agent shall be entitled to rely solely on such Officers’ Certificate as conclusive proof that such payments are necessary.

 

As used in this Note, the term “United States
Person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation,
partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District
of Columbia (other than a partnership that is not treated as a United States Person under any applicable U.S. Treasury Regulations), any
estate the income of which is subject to United States federal income taxation regardless of its source, or any trust if a court within
the United States is able to exercise primary supervision over the administration of the trust or one or more United States fiduciaries
have the authority to control all substantial decisions of the trust.

Except as otherwise provided in the proviso to
this sentence, whenever there is mentioned, in any context, in the Notes the payment of principal of, or premium, if any, or
interest on, or any other amounts payable in respect of, any Note or Notes, such mention shall be deemed to include mention of the
payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the terms of the Notes or the Indenture, and express mention of the payment of Additional Amounts anywhere in
the Notes shall not be construed as excluding Additional Amounts elsewhere in the Notes where such express mention is not made;
provided that, notwithstanding the foregoing and also notwithstanding anything in the Indenture to the contrary, because, as set
forth above under this caption “Payment of Additional Amounts,” the Company will pay Additional Amounts, if any, as
additional interest on the Notes, the references to “principal” and “premium” appearing in clause (2) of the
first paragraph of Section 501, clause (1)(B) of the second paragraph of Section 502 and clause (2) of the first paragraph of
Section 503 of the Indenture shall not include any Additional Amounts that may be payable in respect of the principal of or premium,
if any, on the Notes, and instead the references to Additional Amounts appearing in clause (1) of the first paragraph of Section
501, clause (1)(A) of the second paragraph of Section 502 and clause (1) of the first paragraph of Section 503 of the Indenture
shall include all Additional Amounts payable in respect of the Notes (including, without limitation, Additional Amounts payable in
respect of principal of, or premium, if any, or interest on, or Additional Amounts, if any, in respect of, the Notes).

 

    B-1-6

     

    

 

Notwithstanding any discharge of the Indenture with
respect to the Notes pursuant to Section 401 of the Indenture or any defeasance or covenant defeasance with respect to the Notes pursuant
to Article Fourteen of the Indenture, and without limitation to any of the provisions of the Indenture which, as provided in Section 401
or Article Fourteen, as applicable, of the Indenture shall survive any such discharge, defeasance or covenant defeasance, as the case
may be, the provisions set forth under this caption “Payment of Additional Amounts” (including, without limitation, the obligation
of the Company to pay Additional Amounts) shall survive any such discharge, defeasance or covenant defeasance, as the case may be, and
remain in full force and effect and shall also survive any transfer by a Holder or beneficial owner of its Notes or its beneficial interest
in Global Securities.

 

Defeasance; Covenant Defeasance

 

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; provided that, as set forth in the immediately preceding paragraph and in the Indenture,
certain provisions of the Notes and the Indenture will survive any such defeasance or covenant defeasance, as the case may be, and remain
in full force and effect.

 

Additional Covenants

 

In addition to the covenants of the Company contained
in the Indenture and elsewhere in this Note, 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, 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.

 

    B-1-7

     

    

 

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.

 

Certain Additional Definitions

 

As used in this Note, 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.

 

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

 

“Clearstream” means
Clearstream Banking S.A., including any successor securities clearing agency thereto.

 

“Common Depositary”
means The Bank of New York Mellon, London Branch, as common depositary of the Notes for Clearstream and Euroclear, or any successor in
such capacity.

 

“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.

 

    B-1-8

     

    

 

“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).

 

“Euroclear” means
Euroclear Bank SA/NV, including any successor securities clearing agency thereto.

 

“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.

 

“GBP,” “Pounds
Sterling” and “£” mean the lawful currency of the United Kingdom.

 

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

 

“Regular Record Date”
means (i) in the case of Notes represented by a Global Security, the business day (for this purpose, a day on which Clearstream and Euroclear
are open for business) immediately preceding the applicable Interest Payment Date and (ii) in all other cases, the 15th day prior to the
applicable Interest Payment Date.

 

“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 “Additional Covenants—Limitation on Incurrence of Total Debt,” “Additional
Covenants—Limitation on Incurrence of Secured Debt,” “Additional Covenants—Debt Service Coverage,” and
 “Additional Covenants—Maintenance of Total Unencumbered Assets,” this definition, the other definitions set forth
herein under this caption “Certain Additional 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).

 

    B-1-9

     

    

 

“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 “Additional Covenants—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.

 

Other

 

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, premium, if any, or interest on, or Additional Amounts,
if any, in respect of, 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.

 

    B-1-10

     

    

 

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, premium, if any, and interest on, and Additional Amounts, if any, in respect of, this Note at the times, places and rate,
and in the amounts, 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 Chicago, Illinois and in such other places where the Company may from time to time
maintain an office or agency for the registration of transfer and exchange of 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 £100,000 and integral multiples of £1,000 in excess thereof. No Note shall
be redeemed in part unless the unredeemed principal amount of such Note is an authorized denomination as set forth in the immediately
preceding sentence. No service charge shall be made for any registration of transfer or exchange of Notes, 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.

 

No recourse shall be had for the payment of the principal
of, premium, if any, or interest on, or Additional Amounts, if any, in respect of, 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.

 

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]

 

    B-1-11

     

    

 

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

 

	 	 	REALTY INCOME CORPORATION
	 	 	 	 
	 	 	By:	 
	 	 	 	
    Name:

    Title:

	 	 	 	 
	Attest:	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Name: 	 	 	 
	 	Title: 	 	 	 

 

[Company Signature Page to Note]

 

    B-1-12

     

    

 

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:

 

 [Trustee Authentication Page to Note]

 

    B-1-13

     

    

 

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)

 

     

     

    

  

ANNEX B-2

 

Form of 2.500% Note due 2042

 

    

     

    

 

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

 

[FOR GLOBAL SECURITIES — UNLESS THIS
SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK SA/NV (“EUROCLEAR,” WHICH TERM INCLUDES ANY SUCCESSOR
SECURITIES CLEARING AGENCY THERETO) OR CLEARSTREAM BANKING S.A. (“CLEARSTREAM,” WHICH TERM INCLUDES ANY SUCCESSOR CLEARING
AGENCY THERETO, AND TOGETHER WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SUCH SECURITY ISSUED IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY
(NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS
MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH OTHER ENTITY AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, THE
BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED, HAS AN INTEREST HEREIN.]

 

 

PRINCIPAL AMOUNT:
£

REGISTERED NO.: R-

CUSIP NO.: 756109 BN3

ISIN NO.: XS2433105470

Common Code: 243310547

 

REALTY INCOME CORPORATION

 

2.500% NOTES DUE 2042

 

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
                   Pounds Sterling (as
defined below) on January 14, 2042 (the “Final Maturity Date”), and to pay interest thereon from and including January
14, 2022, or from and including the most recent date to which interest has been paid or duly provided for, annually in arrears on
January 14 of each year (each, an “Interest Payment Date”), commencing January 14, 2023, at the rate of 2.500% 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 the Regular Record Date (as defined below) immediately preceding such Interest Payment Date (regardless of
whether such Regular Record Date is a Business Day (as defined below)). 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 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 on the Notes will be computed on the basis of the actual number of days in the period for
which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the
Notes (or from and including January 14, 2022 if no interest has been paid on the Notes) to but excluding the next scheduled
Interest Payment Date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the
International Capital Market Association. If any principal of, premium, if any, or interest on, or Additional Amounts (as defined
below), if any, in respect of, any of the Notes is not paid when due, then such overdue principal and, to the extent permitted by
law, such overdue premium, interest or Additional Amounts, as the case may be, shall bear interest, until paid or until such payment
is duly provided for, at the rate of 2.500% per annum.

 

    B-2-1

     

    

 

If any Interest Payment Date, the Final Maturity
Date, any Redemption Date, any Maturity or any other date on which the principal of, or premium, if any, or interest on, or Additional
Amounts, if any, in respect of, a Note becomes due and payable falls on a day that is not a Business Day, the required payment may be
made on the next succeeding Business Day with the same force and effect as if it were made on such Interest Payment Date, Final Maturity
Date, Redemption Date, Maturity or other date on which any such amount becomes due and payable and no interest will accrue on the amount
so payable for the period from and after such Interest Payment Date, Final Maturity Date, Redemption Date, Maturity or other date on which
any such amount becomes due and payable, as the case may be.

 

Except as provided in the next paragraph and in the
proviso to this sentence, all payments of principal of, and premium, if any, and interest on, and Additional Amounts, if any, in respect
of, the Notes will be made in GBP (as defined below); provided that if GBP is unavailable to the Company due to the imposition of exchange
controls or other circumstances beyond its control, then all payments in respect of the Notes will be made in Dollars until GBP is again
available to the Company. In such circumstances, the amount payable on any date in GBP will be converted into Dollars at the rate mandated
by the Board of Governors of the U.S. Federal Reserve System (or any successor thereto) as of the close of business on the second Business
Day prior to the relevant payment date or, if the Board of Governors of the U.S. Federal Reserve System (or any successor thereto) has
not mandated a rate of conversion, on the basis of the most recent Dollar/GBP exchange rate published in The Wall Street Journal (or any
successor thereto) on or prior to the second Business Day prior to the relevant payment date. Any payment in respect of the Notes so made
in Dollars under such circumstances will not constitute an Event of Default with respect to the Notes under the Indenture. Neither the
Trustee nor any Paying Agent shall have any responsibility for any calculation or conversion in connection with the foregoing.

 

The Notes may also be payable in a currency other
than GBP if (a) the Company effects defeasance or covenant defeasance with respect to the Notes pursuant to Article Fourteen of the Indenture
and (b) thereafter a Conversion Event occurs with respect to GBP and shall be continuing, all as more fully provided in Section 1405 of
the Indenture.

 

If this Note is a Global Security, all payments of
principal of, premium, if any, and interest on, and Additional Amounts, if any, 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. If this Note is not a Global Security (a “Certificated
Note”), payments of interest on this Note may be made, at the Company’s option, 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, all on the terms set forth in the Indenture; provided, however, that a Holder of £4.0 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 specified by such Holder so long as such Holder has given appropriate wire transfer instructions to the
Trustee or a Paying Agent for the Notes at least 10 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 £4.0 million or more
in aggregate principal amount of Certificated Notes.

 

Payments of principal of, and premium, if any,
and interest on, and Additional Amounts, if any, in respect of, Certificated Notes that are due and payable on the Final Maturity
Date, any Redemption Date, any Maturity 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 specified by the Holders thereof, so long as such Holders have given appropriate
wire transfer instructions to the Trustee or a Paying Agent, against surrender of such Notes to the Trustee or a Paying Agent;
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, Maturity 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 Date according to the terms and provisions of
the Notes and the Indenture.

 

    B-2-2

     

    

 

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 “2.500% Notes due 2042.” 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.

 

Optional Redemption

 

Prior to July 14, 2041 (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 an annual basis (ACTUAL/ACTUAL (ICMA)) at the Comparable Government Bond Rate
plus 20 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 for the Notes will be payable 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.

 

“Comparable
Government Bond Rate” means, with respect to any Redemption Date for the Notes, the price, expressed as a percentage (rounded
to three decimal places, with 0.0005 being rounded upwards), at which the gross redemption yield on the Notes to be redeemed, if they
were to be purchased at such price on the third Business Day prior to the date fixed for redemption, would be equal to the gross redemption
yield on such Business Day of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond
prevailing at 11:00 a.m. (London time) on such Business Day as determined by an independent investment bank selected by the Company.

 

    B-2-3

     

    

 

“Comparable
Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an independent
investment bank selected by Company, a United Kingdom government bond whose maturity is closest to the Par Call Date or, if such independent
investment bank in its discretion determines that such similar bond is not in issue, such other United Kingdom government bond as such
independent investment bank may, with the advice of the three brokers of, and/or market makers in, United Kingdom government bonds selected
by the Company, determine to be appropriate for determining the Comparable Government Bond Rate. 

 

Redemption for Changes in Taxes

 

If (1)(a) as a result of any change in, or amendment
to, the laws (or any regulations or rulings promulgated thereunder) or treaties of the United States (as defined below) or any political
subdivision or taxing authority thereof or therein having power to tax (each, a “Relevant Taxing Jurisdiction”), or any change
in, or amendment to, any official position regarding the application, administration or interpretation of such laws, treaties, regulations
or rulings (including by virtue of a holding, judgment or order by a court of competent jurisdiction or a change in published administrative
practice), which change or amendment becomes effective on or after January 11, 2022, the Company becomes or will become obligated to pay
any Additional Amounts or (b) any act is taken by a Relevant Taxing Jurisdiction on or after January 11, 2022, whether or not such act
is taken with respect to the Company or any affiliate of the Company, that results in a substantial probability that the Company will
or may be required to pay any Additional Amounts, and (2) the Company determines, in its business judgment, that the obligation to pay
Additional Amounts cannot be avoided by taking reasonable measures available to it, including by making payments through a different Paying
Agent (provided that such reasonable measures do not include substitution of another entity as the obligor under the Notes), then the
Company may, at its option, redeem the Notes, in whole but not in part, at a Redemption Price equal to 100% of the principal amount of
the Notes, plus accrued and unpaid interest on the Notes to the applicable Redemption Date. Notwithstanding the foregoing, installments
of interest on Notes whose Stated Maturity is on or prior to a Redemption Date for the Notes will be payable 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. No redemption pursuant to this paragraph may be made unless the Company
has received a written opinion of independent counsel to the effect that, as a result of such change or amendment the Company has become
or will become obligated to pay, or that such act taken by a Relevant Taxing Jurisdiction has resulted in a substantial probability that
the Company will or may be required to pay, any Additional Amounts, and the Company shall have delivered to the Trustee such legal opinion
together with an Officers’ Certificate stating that, based on such opinion, the Company is entitled to redeem the Notes pursuant
to the provisions described in this paragraph and the other provisions of the Notes and the Indenture. The Trustee shall be entitled to
rely on such Officers’ Certificate and opinion of counsel as sufficient evidence of the existence and satisfaction of the conditions
precedent as described above in this paragraph, in which event it will be conclusive and binding on the Holders of the Notes.

 

As used in this Note, the term “United States”
means the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction.

 

Notice of Redemption

 

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 the Holders of Notes (or portions of Notes) to be
redeemed.

 

    B-2-4

     

    

 

Payment of Additional Amounts

 

All payments of principal of, and premium, if any,
and interest on the Notes will be made free and clear of and without withholding or deduction for or on account of any present or future
tax, duty, assessment or other governmental charge of whatsoever nature (collectively, “Taxes”) imposed by any Relevant Taxing
Jurisdiction, unless the withholding or deduction of such Taxes is required by law or the official interpretation or administration thereof.

 

In the event that any withholding or deduction from
or on any payments on or in respect of the Notes for or on account of any Taxes is required by a Relevant Taxing Jurisdiction, the Company
will, subject to the exceptions and limitations set forth below, pay, as additional interest on the Notes, such additional amounts (“Additional
Amounts”) as will result in receipt by each holder of a Note that is not a United States Person (as defined below) of such amounts
(after all such withholding or deduction, including from or on any Additional Amounts) as would have been received by such holder had
no such withholding or deduction been required. The Company will not be required, however, to make any payment of Additional Amounts for
or on account of:

 

(1) any Taxes that are imposed or withheld by reason of a holder
of Notes (or the beneficial owner for whose benefit such holder holds such Note) (or a fiduciary, settlor, beneficiary, member or shareholder
of the holder if the holder is an estate, trust, partnership or corporation, or a Person holding a power over an estate or trust administered
by a fiduciary holder) being considered as:

 

(a) being or having been present or engaged in a trade or
business in the United States or having or having had a permanent establishment in the United States;

 

(b) having a current or former relationship with the United
States, including a relationship as a citizen or resident thereof;

 

(c) being or having been a foreign or domestic personal holding
company, a passive foreign investment company or a controlled foreign corporation with respect to the United States or a corporation that
has accumulated earnings to avoid United States federal income tax;

 

(d) being or having been a “10 percent shareholder”
of the Company within the meaning of section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended (the “Code”),
or any successor provision;

 

(e) being a controlled foreign corporation that is related
to the Company within the meaning of Section 864(d)(4) of the Code or any successor provision; or

 

(f) being or having been a bank receiving interest described
in section 881(c)(3)(A) of the Code or any successor provision;

 

(2) any holder that is not the sole beneficial owner of the
Note, or a portion thereof, or that is a fiduciary, limited liability company or partnership, but only to the extent that a beneficiary
or settlor with respect to the fiduciary or a beneficial owner or member of the partnership or limited liability company would not have
been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial
or distributive share of the payment;

 

(3) any Taxes that are imposed or withheld by reason of the
failure to (a) comply with certification, identification or information reporting requirements concerning the nationality, residence,
identity or connection with a Relevant Taxing Jurisdiction of the holder or beneficial owner of such Note, if compliance is required by
statute or by regulation of the Relevant Taxing Jurisdiction as a precondition to relief or exemption from such Taxes (including the submission,
if applicable, of a United States Internal Revenue Service (“IRS”) Form W-8 (with any required attachments)) or (b) comply
with any information gathering and reporting requirements or to take any similar action (including entering into any agreement with the
IRS), in each case, that are required to obtain the maximum available exemption from withholding by a Relevant Taxing Jurisdiction that
is available to payments received by or on behalf of the holder or beneficial owner;

 

(4) any Taxes that are imposed otherwise than by withholding
from the payment;

 

    B-2-5

     

    

 

(5) any Taxes that are imposed or withheld by reason of a change
in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due
or is duly provided for, whichever occurs later;

 

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

 

(7) any Taxes required to be withheld by any Paying Agent from
any payment of principal of, or premium, if any, or interest on, any Note, if such payment can be made without such withholding by any
other Paying Agent;

 

(8) any Taxes that are imposed or levied by reason of the presentation
(where presentation is required in order to receive payment) of such Notes for payment on a date more than 30 days after the date on which
such payment became due and payable, except to the extent that the holder or beneficial owner thereof would have been entitled to Additional
Amounts had the Notes been presented for payment on any date during such 30-day period;

 

(9) any backup withholding or any Taxes imposed under Sections
1471 through 1474 of the Code (or any successor provisions thereto), any current or future regulations or official interpretations thereof,
any agreements entered into pursuant to Section 1471(b)(1) of the Code (or any successor provision thereto), or any fiscal or regulatory
legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation
of such sections of the Code (or any successor thereto); or

 

(10) any combination of any items (1) through (9).

 

Except as specifically provided under this caption
 “Payment of Additional Amounts,” the Company shall not be required to make any payment with respect to any tax, assessment
or governmental charge imposed by any government or a political subdivision or taxing authority thereof or therein on any payment of principal
of, premium, if any, or interest on, or Additional Amounts in respect of, the Notes.

 

If the Company becomes aware that it will be obligated
to pay Additional Amounts with respect to any payment under or with respect to the Notes, the Company will deliver to the Trustee and
each Paying Agent on a date that is at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts
arises less than 30 days prior to that payment date, in which case the Company shall notify the Trustee and each Paying Agent promptly
after the Company becomes aware that such obligation has arisen) an Officers’ Certificate stating the fact that Additional Amounts
will be payable and the amount to be so payable. The Officers’ Certificate must also set forth any other information reasonably
necessary to enable the Paying Agents to pay such Additional Amounts to Holders on the relevant payment date. The Trustee and each Paying
Agent shall be entitled to rely solely on such Officers’ Certificate as conclusive proof that such payments are necessary.

 

As used in this Note, the term “United States
Person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation,
partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District
of Columbia (other than a partnership that is not treated as a United States Person under any applicable U.S. Treasury Regulations), any
estate the income of which is subject to United States federal income taxation regardless of its source, or any trust if a court within
the United States is able to exercise primary supervision over the administration of the trust or one or more United States fiduciaries
have the authority to control all substantial decisions of the trust.

 

    B-2-6

     

    

 

Except as otherwise provided in the proviso to
this sentence, whenever there is mentioned, in any context, in the Notes the payment of principal of, or premium, if any, or
interest on, or any other amounts payable in respect of, any Note or Notes, such mention shall be deemed to include mention of the
payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to the terms of the Notes or the Indenture, and express mention of the payment of Additional Amounts anywhere in
the Notes shall not be construed as excluding Additional Amounts elsewhere in the Notes where such express mention is not made;
provided that, notwithstanding the foregoing and also notwithstanding anything in the Indenture to the contrary, because, as set
forth above under this caption “Payment of Additional Amounts,” the Company will pay Additional Amounts, if any, as
additional interest on the Notes, the references to “principal” and “premium” appearing in clause (2) of the
first paragraph of Section 501, clause (1)(B) of the second paragraph of Section 502 and clause (2) of the first paragraph of
Section 503 of the Indenture shall not include any Additional Amounts that may be payable in respect of the principal of or premium,
if any, on the Notes, and instead the references to Additional Amounts appearing in clause (1) of the first paragraph of Section
501, clause (1)(A) of the second paragraph of Section 502 and clause (1) of the first paragraph of Section 503 of the Indenture
shall include all Additional Amounts payable in respect of the Notes (including, without limitation, Additional Amounts payable in
respect of principal of, or premium, if any, or interest on, or Additional Amounts, if any, in respect of, the Notes).

 

Notwithstanding any discharge of the Indenture with
respect to the Notes pursuant to Section 401 of the Indenture or any defeasance or covenant defeasance with respect to the Notes pursuant
to Article Fourteen of the Indenture, and without limitation to any of the provisions of the Indenture which, as provided in Section 401
or Article Fourteen, as applicable, of the Indenture shall survive any such discharge, defeasance or covenant defeasance, as the case
may be, the provisions set forth under this caption “Payment of Additional Amounts” (including, without limitation, the obligation
of the Company to pay Additional Amounts) shall survive any such discharge, defeasance or covenant defeasance, as the case may be, and
remain in full force and effect and shall also survive any transfer by a Holder or beneficial owner of its Notes or its beneficial interest
in Global Securities.

 

Defeasance; Covenant Defeasance

 

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; provided that, as set forth in the immediately preceding paragraph and in the Indenture,
certain provisions of the Notes and the Indenture will survive any such defeasance or covenant defeasance, as the case may be, and remain
in full force and effect.

 

Additional Covenants

 

In addition to the covenants of the Company contained
in the Indenture and elsewhere in this Note, 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, 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.

 

    B-2-7

     

    

 

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.

 

Certain Additional Definitions

 

As used in this Note, 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.

 

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

 

“Clearstream” means
Clearstream Banking S.A., including any successor securities clearing agency thereto.

 

“Common Depositary”
means The Bank of New York Mellon, London Branch, as common depositary of the Notes for Clearstream and Euroclear, or any successor in
such capacity. 

 

“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.

 

    B-2-8

     

    

 

“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).

 

“Euroclear” means
Euroclear Bank SA/NV, including any successor securities clearing agency thereto.

 

“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.

 

“GBP,” “Pounds
Sterling” and “£” mean the lawful currency of the United Kingdom.

 

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

 

“Regular Record Date”
means (i) in the case of Notes represented by a Global Security, the business day (for this purpose, a day on which Clearstream and Euroclear
are open for business) immediately preceding the applicable Interest Payment Date and (ii) in all other cases, the 15th day prior to the
applicable Interest Payment Date.

 

“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 “Additional Covenants—Limitation on Incurrence of Total Debt,” “Additional
Covenants—Limitation on Incurrence of Secured Debt,” “Additional Covenants—Debt Service Coverage,” and
 “Additional Covenants—Maintenance of Total Unencumbered Assets,” this definition, the other definitions set forth
herein under this caption “Certain Additional 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).

 

    B-2-9

     

    

 

“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 “Additional Covenants—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.

 

Other

 

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, premium, if any, or interest on, or Additional Amounts,
if any, in respect of, this Note on or after the respective due dates therefor.

 

    B-2-10

     

    

 

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, premium, if any, and interest on, and Additional Amounts, if any, in respect of, this Note at the times, places and rate,
and in the amounts, 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 Chicago, Illinois and in such other places where the Company may from time to time
maintain an office or agency for the registration of transfer and exchange of 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 £100,000 and integral multiples of £1,000 in excess thereof. No Note shall
be redeemed in part unless the unredeemed principal amount of such Note is an authorized denomination as set forth in the immediately
preceding sentence. No service charge shall be made for any registration of transfer or exchange of Notes, 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.

 

No recourse shall be had for the payment of the principal
of, premium, if any, or interest on, or Additional Amounts, if any, in respect of, 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.

 

    B-2-11

     

    

 

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]

 

    B-2-12

     

    

 

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

 

	 	 	REALTY INCOME CORPORATION
	 	 	 	 
	 	 	By:	 
	 	 	 	
    Name:

    

	 	 	 	Title:
	 	 	 	 
	Attest:	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	Name: 	 	 	 
	 	Title: 	 	 	 

  

[Company Signature Page to Note]

 

    B-2-13

     

    

 

 

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:  	 
	 	 	 

  

 [Trustee Authentication Page to Note]

 

    B-2-14

     

    

 

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)

 

    B-2-15

     

    

 

ANNEX C

 

Resolutions

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