Document:

Exhibit 4.2

    

  

   

  

  
    Steelcase Inc.

     

    

    Officers’ Certificate

     

          

    David C. Sylvester, Senior Vice President, Chief Financial Officer, and Rajesh K. Mehan, Vice President, Finance &
        Treasurer, of Steelcase Inc., a Michigan corporation (the “Company”), pursuant to Sections 2.01 and 13.06 of the Indenture, dated as of August 7, 2006 (the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A.
        (successor in interest to J.P. Morgan Trust Company, National Association), as trustee (the “Trustee”), each hereby certifies in the name of the Company as follows:

     

      

    The aforesaid officers hereby establish, pursuant to resolutions duly adopted by the Board of Directors of the Company or a
        committee thereof (true, correct and complete copies of such resolutions certified by the Assistant Secretary of the Company being separately delivered on the date hereof), a series of Securities (as that term is defined in the Indenture) to be
        issued under the Indenture, which Securities shall be in the form attached hereto as Exhibit A with such terms and in such form as determined by or pursuant
        to such resolutions, as follows:

     

      

    1. The title of the Securities shall be: “5.125% Senior
        Notes due 2029” (the “Notes”).

     

      

    2. The aggregate principal amount of the Notes which may
        be authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to or as contemplated by Section 2.05, 2.06, 2.07, 3.03 or
        9.04 of the Indenture or Section 11 herein) shall initially be $450,000,000.

     

      

    The Company may, from time to time, without giving notice or seeking the consent of the existing Holders of the Notes, issue additional
        Securities having the same terms and conditions as the Notes, except for the issue date, issue price and, in some cases, the initial interest payment date; provided that if the additional Securities are not fungible with the Notes for U.S. federal income tax purposes, the additional Securities will have a separate CUSIP number, and any such additional Securities may be consolidated
        and form a single series with the Notes.

     

      

    3. The Stated Maturity of the Notes shall be January 18,
        2029.

     

      

    4. The Notes shall bear interest from January 18, 2019 or
        from the most recent Interest Payment Date (as defined below) to which interest has been paid or duly provided for, at the rate of 5.125% per annum, payable semiannually on January 18 and July 18 of each year (each, an “Interest Payment Date”),
        commencing on July 18, 2019, to the persons in whose names the Notes are registered on the close of business on January 1 or July 1, as the case may be, next preceding such Interest Payment Date.

     

      

    Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

    
      
        

    

    
    5. The Notes shall be the Company’s senior unsecured
        obligations and shall rank equally in right of payment with all existing and future unsecured and unsubordinated debt of the Company.

     

      

    6. The principal of and interest on the Notes of such
        series shall be payable at the office or agency of the Company maintained for such purpose in the Borough of Manhattan, The City of New York; provided,
        however, that, at the option of the Company, payment of interest may be made by check mailed to the address of the Person entitled thereto as
        such address shall appear in the Security Register for such series.

     

      

    7. The Notes shall not have any provisions providing for
        the extension of interest payment periods or the deferral of interest payments.

     

      

    8. The Notes shall be redeemable, in whole or in part, at
        the Company’s option at any time or from time to time (a “Redemption Date”). The redemption price (the “Redemption Price”) will be equal to (a) at any time prior to October 18, 2028 (the “Par Call Date”) the greater of (i) 100% of the principal
        amount of any Notes being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date and calculated as if the maturity date of such
        Notes was the Par Call Date) discounted to the Redemption Date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below), plus 40 basis points; and (b) at any time on or after the Par
        Call Date, 100% of the principal amount of any Notes being redeemed.  In addition, in each case, accrued and unpaid interest, if any, will be paid to, but not including, the Redemption Date.

     

      

    Notwithstanding the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates falling on or prior to a
        Redemption Date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the relevant record date in accordance with the Notes and the Indenture.

     

      

    Notice of any redemption will be mailed or sent electronically at least 15 days, but not more than 60 days, before the Redemption Date to each
        registered Holder of the Notes to be redeemed, except that notices of redemption may be delivered more than 60 days prior to a redemption date if the notice is issued in connection with a legal or covenant defeasance of the Notes pursuant to
        Section 11.02 of the Indenture or a satisfaction and discharge of the Indenture pursuant to Section 11.01 of the Indenture. Once the notice is mailed, the Notes called for redemption will become due and payable on the Redemption Date and at the
        applicable Redemption Price, plus accrued and unpaid interest to, but not including, the Redemption Date.

    
      2

      
        

    

    On and after the Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes called for redemption (unless the
        Company defaults in the payment of the Redemption Price and accrued interest). On or before the Redemption Date, the Company will deposit with a paying agent (or the Trustee) money sufficient to pay the Redemption Price of, and accrued interest on,
        the Notes to be redeemed on such Redemption Date. If less than all of the Notes are to be redeemed on such redemption Date, and the Notes are Global Securities then held by The Depository Trust Company (“DTC”), the Notes to be redeemed will be
        selected by DTC in accordance with its standard procedures.  If the Notes to be redeemed are not Global Securities then held by DTC, the Notes to be redeemed will be selected by the Trustee by lot.

     

      

    As used above:

     

      

    “Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable
        to the remaining term of the Notes to be redeemed (assuming, for the purposes of this definition, that such Notes mature on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in
        pricing new issues of corporate debt notes of comparable maturity to the remaining term of the Notes (assuming, for the purposes of this definition, that such Notes mature on the Par Call Date).

     

      

    “Comparable Treasury Price” means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for such
        Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Trustee is provided with fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations or (C) if
        only one Reference Treasury Dealer Quotation is received, such quotation.

     

      

    “Reference Treasury Dealer” means (A) any of J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (or their
        respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of those entities ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute
        for those entities another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Company.

     

      

    “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and
        asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
        business day preceding such redemption date.

     

      

    “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the
        Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

     

      

    9. The Notes shall not be entitled to any sinking fund or
        analogous provisions.

     

      

    10. Section 4.07 of the Indenture shall not apply to the
        Notes.

    
      3

      
        

    

    11. Upon the occurrence of a Change of Control Triggering
        Event (as defined below), unless the Company has previously exercised its right to redeem the Notes in whole as described in Section 8
        above, the Company shall notify the Trustee and make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase
        price equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, to, but not including, the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event
        or, at the Company’s option, prior to any Change of Control, but after the public announcement of an impending Change of Control, the Company shall, or shall cause the Trustee to, send a notice to each Holder describing the transaction or
        transactions that constitute or may constitute the Change of Control Triggering Event and stating: (1) that a Change of Control Offer is being made pursuant to this Section and that all Notes properly tendered will be accepted for payment; (2) the
        purchase price and the purchase date, which shall be no earlier than 15 days and no later than 60 days from the date such notice is sent (the “Change of Control Payment Date”); (3) that any Notes not tendered will continue to accrue interest; (4)
        that, unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment Date; (5) that Holders
        electing to have any Notes, with the form entitled “Option of Holder to Elect Purchase” attached to the Global Security completed, purchased pursuant to a Change of Control Offer will be required to surrender such Notes to the Trustee or paying
        agent at the address specified in the notice prior to the close of business on the third Business Day preceding the Change of Control Payment Date; (6) that Holders will be entitled to withdraw their election if the Trustee or paying agent
        receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes
        delivered for purchase, and a statement that such Holder is withdrawing its election to have such Notes purchased; (7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased
        portion of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000 thereof; and (8) if sent prior to the date of consummation of the Change of Control, that the offer to
        purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the Change of Control Payment Date specified in the notice.

     

      

    The Company shall comply with the requirements of Rule 14e–1 under the Exchange Act and any other securities laws and regulations thereunder to
        the extent such laws and regulations are applicable in connection with the repurchase of Notes in connection with a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with this
        Section, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section by virtue of such conflict.

    
      4

      
        

    

    On the Change of Control Payment Date, the Company shall, to the extent lawful, (1) accept for payment all Notes or portions thereof properly
        tendered pursuant to the Change of Control Offer, (2) deposit with the Trustee or paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof properly tendered and (3) deliver or cause to be delivered
        to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of such Notes or portions thereof being purchased by the Company. The Trustee or paying agent shall promptly pay to each Holder
        of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion
        of the Notes surrendered by such Holder, if any; provided, that each such new Note shall be in a principal amount of $2,000 or an integral
        multiple of $1,000 thereof.

     

      

    The Company will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third Person makes the Change
        of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section and all other provisions of the Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes
        properly tendered and not withdrawn under such Change of Control Offer.

     

      

    As used above:

     

      

    “Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition
        (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any “person” (as that term is used in
        Section 13(d)(3) of the Exchange Act) other than the Company or one of its Subsidiaries; (2) the adoption of a plan relating to the liquidation or dissolution of the Company; (3) the consummation of any transaction (including, without limitation,
        any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of
        our Voting Stock; or (4) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a transaction shall not be deemed to result in a Change of Control if (a) the
        Company becomes a wholly-owned subsidiary of a holding company and (b) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s voting stock
        immediately prior to that transaction.

     

      

    “Change of Control Triggering Event” means the occurrence of both a
          Change of Control and a Rating Event.

     

        

    “Moody’s” means Moody’s Investors Service, Inc.

     

      

    “Rating Agency” means each of S&P and Moody’s, or if S&P or Moody’s or both shall not make a rating on the Securities publicly
        available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a Board Resolution) which shall be substituted for S&P or Moody’s, or both, as the case may be.

    
      5

      
        

    

    “Rating Event” means with respect to a Change of Control, if the Notes carry immediately prior to the first public notice of an arrangement that
        could result in a Change of Control:

        

      

    (a) an investment grade credit rating
        (BBB-/Baa3, or equivalent, or better) from both Rating Agencies, the rating from both Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period
        following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either
        downgraded to a non-investment grade credit rating (BB+/Ba1 or equivalent, or worse) or withdrawn and is not within such period subsequently (in the case of a downgrade) upgraded to an investment grade credit rating or (in the case of a withdrawal)
        replaced by an investment grade credit rating;

     

      

    (b) a non-investment grade credit rating
        (BB+/Ba1, or equivalent, or worse) from both Rating Agencies, the rating from both Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period
        following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either
        downgraded by one or more notches (for illustration, Ba1 to Ba2 being one notch) or withdrawn and is not within such period subsequently (in the case of a downgrade) upgraded to its earlier credit rating or better or (in the case of a withdrawal)
        replaced by its earlier credit rating or better; or

     

      

    (c) both an investment grade credit
        rating (BBB-/Baa3, or equivalent, or better) from one Rating Agency and a non-investment grade credit rating (BB+/Ba1, or equivalent, or worse) from the other Rating Agency and (i) the investment grade credit rating on any date from the date of the
        public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes
        is under publicly announced consideration for possible downgrade by either Rating Agency) is either downgraded to a non-investment grade credit rating (BB+/Ba1, or equivalent, or worse) or withdrawn and is not within such period subsequently (in
        the case of a downgrade) upgraded to an investment grade credit rating by such Rating Agency or (in the case of a withdrawal) replaced by an investment grade credit rating from such Rating Agency and (ii) the non-investment grade credit rating on
        any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so
        long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either downgraded by one or more notches (for illustration, Ba1 to Ba2 being one notch) or withdrawn and is not within such
        period subsequently (in the case of a downgrade) upgraded to its earlier credit rating or better by such Rating Agency or (in the case of a withdrawal) replaced by its earlier credit rating or better by such Rating Agency;

    
      6

      
        

    

    provided that in making the relevant
        decision(s) referred to above to downgrade or withdraw such ratings, as applicable, the relevant Rating Agency announces publicly or confirms in writing to the Company that such decision(s) resulted, in whole or in part, from the occurrence of such
        Change of Control or the first public notice of an arrangement that could result in a Change of Control.

     

      

    “S&P” means S&P Global Ratings, a division of S&P Global, Inc.

     

      

    12. The Notes shall be issued initially in the form of a
        registered Global Security which shall be deposited with, or on behalf of, DTC, as depositary, and registered in the name of Cede & Co., as DTC’s nominee, or shall remain in the custody of the Trustee on behalf of DTC or DTC’s nominee. 
        Beneficial interests in the Global Security shall be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC.  Investors may elect to hold interests in the
        Global Security through DTC, if they are participants of DTC, or indirectly through organizations which are participants in these systems.

     

      

    13. Principal of and interest on the Notes shall be
        payable in U.S. dollars.

     

      

    14. The Notes shall not be convertible into or
        exchangeable for shares of common stock, preferred stock or other securities or property of the Company.

     

      

    15. The Trustee shall initially be the Paying Agent,
        Transfer Agent and Security Registrar for the Notes. The Security Register for the Notes shall be maintained by the Security Registrar in the Borough of Manhattan, The City of New York.

     

      

    16. The Notes shall initially constitute Global Securities
        (as defined in the Indenture).

     

      

    17. The Notes shall be issued in denominations of $2,000
        and any integral multiple of $1,000 in excess thereof.

     

      

    18. The Notes shall be defeasible pursuant to Section
        11.02 of the Indenture. Any such defeasance election shall be evidenced by a Board Resolution.

     

      

    19. Unless the context otherwise requires, for purposes of
        the Notes, an accounting term used in this Certificate, the Indenture or the Notes and not otherwise defined has the meaning assigned to it in accordance with United States generally accepted accounting principles as in effect on the date of the
        applicable calculation or determination.

     

      

    20. In case of any conflict between this Certificate and
        the Notes in the form referred to above, the Notes shall control. In case of any conflict between this Certificate and the Indenture, this Certificate shall control to the extent permitted by the Indenture.

    
      7

      
        

    

    Each of the aforesaid officers further states pursuant to Sections 2.01 and 13.06 of such Indenture that (i) he has read the
        applicable covenants and conditions related to the issuance, authentication and delivery of the Notes provided for in the Indenture and the respective definitions relating thereto; (ii) the statements made in this Certificate are based upon the
        examination or investigation of the applicable provisions of the Indenture and the relevant books and records of the Company; (iii) in his opinion, he has made such examination or investigation as is necessary to enable him to express an informed
        opinion as to whether or not such covenants or conditions related to the issuance, authentication and delivery of the Notes pursuant to the Indenture have been complied with; and (iv) in his opinion, such conditions and covenants have been complied
        with.

     

      

    Capitalized terms defined in the Indenture and not otherwise defined herein have the respective meanings provided for
        therein.

    
      8

      
        

    

    IN WITNESS WHEREOF, we have hereunto signed our names on behalf of the Company this 18th day of January, 2019.

    

    

    	 	
            STEELCASE INC.

          
	 	 
	 	
            By:

          	
            

            

          	
            /s/ David C. Sylvester

          
	 	 	
            Name:

          	
            David C. Sylvester

          
	 	 	
            Title:

          	
            Senior Vice President, Chief Financial Officer

          

    

    

    	 	
            By:

          	
            

            

          	
            /s/ Rajesh K. Mehan

          
	 	 	
            Name:

          	
            Rajesh K. Mehan

          
	 	 	
            Title:

          	
            Vice President, Finance & Treasurer

          

    

    

    Officers’ Certificate

    
      
        

    

    Exhibit A

     

          

     

          

     

          

     

          

     

          

     

          

     

          

     

          

     

          

    
      
        

    

    

    

    5.125% SENIOR NOTE DUE 2029

     

          

    THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
        OR THE NOMINEE OF A DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, TO STEELCASE INC. (THE “COMPANY”) OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
        REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

      

    EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.11 OF THE INDENTURE, THIS SECURITY MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER
        NOMINEE OF DTC OR TO A SUCCESSOR DEPOSITARY SELECTED AND APPROVED BY THE COMPANY OR TO A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

    
      
        

    

    
    STEELCASE INC.

     

      

    5.125% Senior Note Due 2029

     

      

    CUSIP NO. 858155 AE4

    ISIN NO. US858155AE40

    

    

    
      	No. 01 	$450,000,000

      

      

    STEELCASE INC., a corporation duly organized and existing under the laws of Michigan (herein called the “Company”, which term
        includes any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or its registered assigns, the principal sum of $450,000,000 (FOUR HUNDRED FIFTY MILLION U.S. DOLLARS) on January 18,
        2029, and to pay interest thereon from January 18, 2019 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semiannually on January 18 and July 18 in each year (each, an “Interest Payment Date”),
        commencing on July 18, 2019 at the rate of 5.125% per annum, until the principal hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date shall, as provided in the
        Indenture hereinafter referred to, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest, which shall be the immediately
        preceding January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest that is 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 Security (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 which special record date shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after receipt by the Trustee of the notice of proposed payment, notice of which shall be
        given to Holders of Securities of this series not less than 10 days prior to such special record date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of
        this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.

     

      

    Payments of interest on this Security shall include interest accrued to but excluding the respective Interest Payment Dates.
        Interest payments for this Security shall be computed and paid on the basis of a 360-day year consisting of twelve 30-day months.  In the event that any date on which interest is payable on this Security is not a Business Day, then payment of the
        interest payable on such date shall be made on the next succeeding day that is a Business Day, with the same force and effect as if made on the date the payment was originally payable.

    
      A-2

      
        

    

    
    The Company shall maintain in the Borough of Manhattan, The City of New York, an office or agency where this Security may be
        surrendered for registration of transfer or exchange and an office or agency where this Security may be presented for payment or for exchange. The Company has initially appointed The Bank of New York Mellon Trust Company, N.A. as its Registrar,
        Transfer Agent and Paying Agent.  On the date hereof, the office of the Registrar, Transfer Agent and Paying Agent is located at 2 N. LaSalle Street, Suite 700 Chicago, IL 60602.  The Company reserves the right at any time to vary or terminate the
        appointment of any Paying Agent, Transfer Agent or Registrar, to appoint additional or other Paying Agents or other Registrars and to approve any change in the office through which any Paying Agent, Transfer Agent or Registrar acts.  The principal
        of and interest on this Security shall be paid in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.  Payment of interest (including interest on an Interest
        Payment Date) shall be made, subject to such surrender where applicable, at the option of the Company, by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.

     

      

    The Notes (as defined on the reverse hereof) shall be senior unsecured obligations of the Company and shall rank equally in
        right of payment with all of the other senior unsecured and unsubordinated indebtedness of the Company from time to time outstanding. The Notes shall rank senior in right of payment to any subordinated indebtedness of the Company.

     

      

    REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS
        SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.

     

      

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

    
      A-3

      
        

    

    IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

     

      

    Dated: _____________ ___, 2019

    

    

    	 	
            STEELCASE INC.

          
	 	 
	 	
            By:

          	 	 
	 	 	
            Name:

          	 
	 	 	
            Title:

          	 

    

    

    	
            Attest:

          	 	 
	 	 	 
	 	 	 
	  	 
	
            Name:

          	 	 
	
            Title:

          	 	 

    
      
        

    

    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

          	 

    
      
        

    

    [REVERSE SIDE OF NOTE]

     

      

    This Security is one of a duly authorized issue of Securities of the Company issued and issuable in one or more series under an Indenture dated
        as of August 7, 2006 (the “Indenture”; capitalized terms used and not defined herein shall have the meaning ascribed to such terms in the Indenture), between the Company and The Bank of New York Mellon Trust Company, N.A. (successor in interest to
        J.P. Morgan Trust Company, National Association), as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture 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 Securities issued thereunder and of the terms upon which said Securities are, and are to be, authenticated and delivered.  This Security is one of the
        series of Securities of the Company issued pursuant to the Indenture and designated as “5.125% Senior Notes due 2029” (the “Notes”), initially limited in aggregate principal amount to $450,000,000. The Company may, from time to time, without giving
        notice or seeking the consent of the existing Holders of the Notes, issue additional Securities having the same terms and conditions as the Notes, except for the issue date, issue price and, in some cases, the initial interest payment date; provided that if the additional Securities are not fungible with the Notes for U.S. federal income tax purposes, the additional Securities will have
        a separate CUSIP number, and any such additional Securities may be consolidated and form a single series with the Notes.

     

      

    Notes in Definitive Form

     

      

    This Security is exchangeable in whole or from time to time in part for Notes of this series in definitive registered form only as provided
        herein and in the Indenture. If (1) at any time the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary shall no longer be registered or in good standing under
        the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation, and a successor Depositary is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the
        case may be, (2) an Event of Default has occurred and is continuing with regard to the Notes represented by this Security or (3) the Company determines that this Security shall no longer be represented by a Global Security and executes and delivers
        to the Trustee an Officers’ Certificate evidencing such determination, this Security shall be exchangeable for Notes of this series in definitive registered form; provided that the definitive Notes so issued in exchange for this Security shall be in any approved denominations requested by or on behalf of the Depositary, without coupons, and in an aggregate principal amount equal
        to the principal amount of this Security to be exchanged. Except as provided above, owners of beneficial interests in this Security shall not be entitled to have Notes registered in their names, shall not receive or be entitled to physical delivery
        of Notes in definitive registered form and shall not be considered the Holders thereof for any purpose under the Indenture.

      

    
      
        

    

    
    Default

     

      

    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, with the effect and subject to the conditions provided in the Indenture.

     

      

    Amendment and Modification

     

      

    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 Notes at the time Outstanding.
        The Indenture also permits the Holders of specified percentages 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 and certain
        past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Note issued upon the
        registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

     

      

    Optional Redemption of the Notes

     

      

    The Notes shall be redeemable, in whole or in part, at the Company’s option at any time or from time to time (a “Redemption Date”). The
        redemption price (the “Redemption Price”) will be equal to (a) at any time prior to October 18, 2028 (the “Par Call Date”) the greater of (i) 100% of the principal amount of any Notes being redeemed and (ii) the sum of the present values of the
        remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the Redemption Date and calculated as if the maturity date of such Notes was the Par Call Date) discounted to the Redemption Date on a semiannual basis
        (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below), plus 40 basis points; and (b) at any time on or after the Par Call Date, 100% of the principal amount of any Notes being redeemed.  In addition,
        in each case, accrued and unpaid interest, if any, will be paid to, but not including, the Redemption Date.

        

      

    Notwithstanding the foregoing, installments of interest on Notes that are due and payable on Interest Payment Dates falling on or prior to a
        Redemption Date will be payable on the Interest Payment Date to the registered Holders as of the close of business on the relevant record date in accordance with the Notes and the Indenture.

     

      

    Notice of any redemption will be mailed or sent electronically at least 15 days, but not more than 60 days, before the Redemption Date to each
        registered Holder of the Notes to be redeemed, except that notices of redemption may be delivered more than 60 days prior to a redemption date if the notice is issued in connection with a legal or covenant defeasance of the Notes pursuant to
        Section 11.02 of the Indenture or a satisfaction and discharge of the Indenture pursuant to Section 11.01 of the Indenture. Once the notice is mailed, the Notes called for redemption will become due and payable on the Redemption Date and at the
        applicable Redemption Price, plus accrued and unpaid interest to, but not including, the Redemption Date.

      

    
      R-2

      
        

    

    On and after the Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes called for redemption (unless the
        Company defaults in the payment of the Redemption Price and accrued interest). On or before the Redemption Date, the Company will deposit with a paying agent (or the Trustee) money sufficient to pay the Redemption Price of, and accrued interest on,
        the Notes to be redeemed on such Redemption Date. If less than all of the Notes are to be redeemed on such redemption Date, and the Notes are Global Securities then held by DTC, the Notes to be redeemed will be selected by DTC in accordance with
        its standard procedures.  If the Notes to be redeemed are not Global Securities then held by DTC, the Notes to be redeemed will be selected by the Trustee by lot.

     

      

    As used above:

     

      

    “Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable
        to the remaining term of the Notes to be redeemed (assuming, for the purposes of this definition, that such Notes mature on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in
        pricing new issues of corporate debt notes of comparable maturity to the remaining term of the Notes (assuming, for the purposes of this definition, that such Notes mature on the Par Call Date).

     

      

    “Comparable Treasury Price” means, with respect to any Redemption Date, (A) the average of the Reference Treasury Dealer Quotations for such
        Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Trustee is provided with fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations or (C) if
        only one Reference Treasury Dealer Quotation is received, such quotation.

     

      

    “Reference Treasury Dealer” means (A) any of J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated (or their
        respective affiliates which are Primary Treasury Dealers), and their respective successors; provided, however, that if any of those entities ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), the Company will substitute
        for those entities another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Company.

     

      

    “Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average of the bid and
        asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company and the Trustee by such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third
        business day preceding such redemption date.

    
      R-3

      
        

    

    “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the
        Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

     

      

    Sinking Fund

     

      

    The Notes shall not be entitled to any sinking fund or analogous provisions.

     

      

    Repurchase at the Option of Holders

     

      

    Section 4.07 of the Indenture shall not apply to the Notes.

     

      

    Upon the occurrence of a Change of Control Triggering Event (as defined below), unless the Company has previously exercised its right to redeem the Notes in whole as described above under “Optional Redemption of the Notes”, the Company shall notify the Trustee and make
        an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of each Holder’s Notes at a purchase price equal to 101% of the aggregate principal amount
        thereof plus accrued and unpaid interest, if any, to, but not including, the date of purchase (the “Change of Control Payment”). Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of
        Control, but after the public announcement of an impending Change of Control, the Company shall, or shall cause the Trustee to, send a notice to each Holder describing the transaction or transactions that constitute or may constitute the Change of
        Control Triggering Event and stating: (1) that a Change of Control Offer is being made pursuant to this Section and that all Notes properly tendered will be accepted for payment; (2) the purchase price and the purchase date, which shall be no
        earlier than 15 days and no later than 60 days from the date such notice is sent (the “Change of Control Payment Date”); (3) that any Notes not tendered will continue to accrue interest; (4) that, unless the Company defaults in the payment of the
        Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment Date; (5) that Holders electing to have any Notes, with the form entitled “Option
        of Holder to Elect Purchase” attached hereto completed, purchased pursuant to a Change of Control Offer will be required to surrender such Notes to the Trustee or paying agent at the address specified in the notice prior to the close of business on
        the third Business Day preceding the Change of Control Payment Date; (6) that Holders will be entitled to withdraw their election if the Trustee or paying agent receives, not later than the close of business on the second Business Day preceding the
        Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing its election to have
        such Notes purchased; (7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion must be equal to $2,000 in
        principal amount or an integral multiple of $1,000 thereof; and (8) if sent prior to the date of consummation of the Change of Control, that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the
        Change of Control Payment Date specified in the notice.

      

    
      R-4

      
        

    

    The Company shall comply with the requirements of Rule 14e–1 under the Exchange Act and any other securities laws and regulations thereunder to
        the extent such laws and regulations are applicable in connection with the repurchase of Notes in connection with a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with this
        Section, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section by virtue of such conflict.

     

      

    On the Change of Control Payment Date, the Company shall, to the extent lawful, (1) accept for payment all Notes or portions thereof properly
        tendered pursuant to the Change of Control Offer, (2) deposit with the Trustee or paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof properly tendered and (3) deliver or cause to be delivered
        to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of such Notes or portions thereof being purchased by the Company. The Trustee or paying agent shall promptly pay to each Holder
        of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion
        of the Notes surrendered by such Holder, if any; provided, that each such new Note shall be in a principal amount of $2,000 or an integral
        multiple of $1,000 thereof.

     

      

    The Company will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third Person makes the Change
        of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section and all other provisions of the Indenture applicable to a Change of Control Offer made by the Company and purchases all Notes
        properly tendered and not withdrawn under such Change of Control Offer.

     

      

    As used above:

     

      

    “Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition
        (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Company and its Subsidiaries taken as a whole to any “person” (as that term is used in
        Section 13(d)(3) of the Exchange Act) other than the Company or one of its Subsidiaries; (2) the adoption of a plan relating to the liquidation or dissolution of the Company; (3) the consummation of any transaction (including, without limitation,
        any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding number of shares of
        our Voting Stock; or (4) the first day on which a majority of the members of the Company’s Board of Directors are not Continuing Directors. Notwithstanding the foregoing, a transaction shall not be deemed to result in a Change of Control if (a) the
        Company becomes a wholly-owned subsidiary of a holding company and (b) the holders of the voting stock of such holding company immediately following that transaction are substantially the same as the holders of the Company’s voting stock
        immediately prior to that transaction.

    
      R-5

      
        

    

    “Change of Control Triggering Event” means the occurrence of both a
          Change of Control and a Rating Event.

     

        

    “Moody’s” means Moody’s Investors Service, Inc.

     

      

    “Rating Agency” means each of S&P and Moody’s, or if S&P or Moody’s or both shall not make a rating on the Securities publicly
        available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a Board Resolution) which shall be substituted for S&P or Moody’s, or both, as the case may be.

     

      

    “Rating Event” means with respect to a Change of Control, if the Notes carry immediately prior to the first public notice of an arrangement that
        could result in a Change of Control:

     

      

    (a) an investment grade credit rating
        (BBB-/Baa3, or equivalent, or better) from both Rating Agencies, the rating from both Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period
        following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either
        downgraded to a non-investment grade credit rating (BB+/Ba1 or equivalent, or worse) or withdrawn and is not within such period subsequently (in the case of a downgrade) upgraded to an investment grade credit rating or (in the case of a withdrawal)
        replaced by an investment grade credit rating;

     

      

    (b) a non-investment grade credit rating
        (BB+/Ba1, or equivalent, or worse) from both Rating Agencies, the rating from both Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period
        following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either
        downgraded by one or more notches (for illustration, Ba1 to Ba2 being one notch) or withdrawn and is not within such period subsequently (in the case of a downgrade) upgraded to its earlier credit rating or better or (in the case of a withdrawal)
        replaced by its earlier credit rating or better; or

    
      R-6

      
        

    

    (c) both an investment grade credit
        rating (BBB-/Baa3, or equivalent, or better) from one Rating Agency and a non-investment grade credit rating (BB+/Ba1, or equivalent, or worse) from the other Rating Agency and (i) the investment grade credit rating on any date from the date of the
        public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of the Notes
        is under publicly announced consideration for possible downgrade by either Rating Agency) is either downgraded to a non-investment grade credit rating (BB+/Ba1, or equivalent, or worse) or withdrawn and is not within such period subsequently (in
        the case of a downgrade) upgraded to an investment grade credit rating by such Rating Agency or (in the case of a withdrawal) replaced by an investment grade credit rating from such Rating Agency and (ii) the non-investment grade credit rating on
        any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of the Change of Control (which 60-day period shall be extended so
        long as the rating of the Notes is under publicly announced consideration for possible downgrade by either Rating Agency) is either downgraded by one or more notches (for illustration, Ba1 to Ba2 being one notch) or withdrawn and is not within such
        period subsequently (in the case of a downgrade) upgraded to its earlier credit rating or better by such Rating Agency or (in the case of a withdrawal) replaced by its earlier credit rating or better by such Rating Agency;

     

      

    provided that in making the relevant
        decision(s) referred to above to downgrade or withdraw such ratings, as applicable, the relevant Rating Agency announces publicly or confirms in writing to the Company that such decision(s) resulted, in whole or in part, from the occurrence of such
        Change of Control or the first public notice of an arrangement that could result in a Change of Control.

     

      

    “S&P” means S&P Global Ratings, a division of S&P Global, Inc.

     

      

    Miscellaneous

     

      

    No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company,
        which is absolute and unconditional, to pay the principal of and interest on this Security at the time, place and rate, and in the coin or currency, herein and in the Indenture prescribed.

     

      

    Any money that the Company deposits with the Trustee or any Paying Agent or that the Company holds in trust for the payment of principal or any
        interest on this Note that remains unclaimed for two years after the date upon which the principal and interest are due and payable, shall be repaid to the Company on May 31 of each year or (if then held by the Company) discharged from the trust. 
        After that time, unless otherwise required by mandatory provisions of any unclaimed property law, the Holder of this Security shall be able to seek any payment to which such Holder may be entitled to collect only from the Company.

     

      

    As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security
        Register, upon surrender for transfer of this Security at the office or agency of the Company designated for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company or the Registrar and
        duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of the same series as the Security presented for a like aggregate amount, shall be issued to the designated transferee or
        transferees.  No service charge shall be made for any such exchange or registration of transfer, but the Company shall require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

    
      R-7

      
        

    

    Prior to due presentment of this Security for registration of transfer, the Company, the Trustee, any Paying Agent and the Registrar may deem
        and treat the Person in whose name this Security is registered as the absolute owner hereof for all purposes, whether or not this Security be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the
        Registrar, and none of the Company, the Trustee, any Paying Agent or the Registrar shall be affected by notice to the contrary.

     

      

    The Notes are issuable only in registered form without coupons in denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
        As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of a different authorized denomination, as requested by the Holder surrendering the same upon
        surrender of the Note or Notes to be exchanged at the office or agency of the Company.

     

      

    No recourse shall be had for payment of the principal of or interest on this Security, or for any claim based hereon, or otherwise in respect
        hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or director, past, present or future, as such, of the Company or of any predecessor or successor corporation, whether by virtue of any constitution,
        statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

     

      

    THIS SECURITY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE INTERNAL LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN
        ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

    
      R-8

      
        

    

    OPTION OF HOLDER TO ELECT PURCHASE

    

    

    If you want to elect to have this Note purchased by the Company pursuant to the Change of Control Offer (as defined in the Global Security
        certificate), check the box below:

    

    

    ☐ Change of Control Offer

    

    

    If you want to elect to have only part of the Note purchased by the Company pursuant to the Change of Control Offer, state the amount you elect
        to have purchased: $ _________

    

    

    	
            Date:

          	 	 	
            Your Signature:

          
	 	 	 	 
	 	 	 	 
	 	 	 
	 	 	
            (Sign exactly as your name appears on the face of the Note)

          

    

    

    	
            Tax Identification No:

          	 	 
	 	 	 
	 	 	 
	
            Signature Guarantee*:

          	 	 
	 	 	 
	 	 	 
	 	 
	
            (*Participant in a Recognized Signature Guarantee Medallion Program)Exhibit

Exhibit 10.1

REALTY INCOME CORPORATION
EXECUTIVE SEVERANCE PLAN

Realty Income Corporation, a Maryland corporation (the “Company”), has adopted this Realty Income Corporation Executive Severance Plan, including the attached Exhibits (the “Plan”), for the benefit of Participants (as defined below) on the terms and conditions hereinafter stated.  The Plan, as set forth herein, is intended to provide severance protections to a select group of management or highly compensated employees (within the meaning of ERISA (as defined below)) in connection with certain qualifying terminations of employment.

1.    Defined Terms.  Capitalized terms used but not otherwise defined herein shall have the meanings indicated below:

1.1    “Annual Base Salary” means the Participant’s annual base salary in effect immediately prior to the Participant’s Termination Date.

1.2    “Average Bonus” means (i) with respect to a Participant who was eligible to earn an annual cash bonus for each of the three fiscal years of the Company immediately preceding the Participant’s Termination Date, the average annual cash bonus earned by such Participant for such fiscal years, or (ii) with respect to a Participant who was eligible to earn an annual cash bonus for at least one, but fewer than three, of the three fiscal years of the Company immediately preceding the Participant’s Termination Date, the average annual cash bonus earned by such Participant for such fiscal year(s), or (iii) with respect to a Participant who was not eligible to earn an annual cash bonus for any of the three fiscal years of the Company immediately preceding the Participant’s Termination Date, the Participant’s target annual cash bonus, if any, for the year in which the Participant’s Termination Date occurs.

1.3    “Board” means the Board of Directors of the Company.

1.4    “Cash Severance” means, with respect to any Participant, an amount equal to the product of (x) the sum of (i) the Participant’s Annual Base Salary plus (ii) the Participant’s Average Bonus, multiplied by (y) in the event that the Participant experiences a Qualifying Termination other than a CIC Termination, the Participant’s Qualifying Termination Cash Severance Multiple, or, in the event that the Participant experiences a CIC Termination, the Participant’s CIC Termination Cash Severance Multiple.
 
1.5    “Cause,” with respect to a Participant, means (a) the Participant’s theft, dishonesty or falsification of any employment or Company records; (b) the Participant’s malicious or reckless disclosure of the Company’s confidential or proprietary information; (c) the Participant’s commission of any immoral or illegal act or any gross or willful misconduct, where the Company reasonably determines that such act or misconduct has (1) seriously undermined the ability of the Company’s management to entrust the Participant with important matters or otherwise work effectively with the Participant, (2) contributed to the Company’s loss of significant revenues or business opportunities, or (3) significantly and detrimentally affected the business or reputation of 

1

the Company or any of its subsidiaries; (d) the Participant’s engagement in any activity that is a material violation of the Company policy on sexual harassment, sexual misconduct, discrimination or other workplace misconduct which is a material violation of Company policy applicable thereto, or (2) brings or would reasonably be expected to bring the Participant, the Company or its subsidiaries into widespread public disrepute, contempt, scandal or ridicule, and/or (e) the Participant’s failure or refusal to work diligently to perform tasks or achieve goals reasonably requested by the Board, provided such breach, failure or refusal continues after the receipt of reasonable notice in writing of such failure or refusal and an opportunity to correct the problem.  “Cause” shall not mean a Participant’s physical or mental disability.

1.1    “Change in Control” shall have the meaning provided in the Realty Income Corporation 2012 Incentive Award Plan, as amended from time to time, or any successor equity incentive plan established by the Company.

1.2    “CIC Termination” means a Qualifying Termination which occurs on the date of, or during the twelve (12) month period immediately following, a Change in Control.

1.3    “CIC Termination Cash Severance Multiple” means a number determined by the Company and set forth in a Participant’s Participation Agreement used for purposes of calculating the Participant’s Cash Severance.

1.4    “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

1.5    “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.

1.6    “Committee” means the Compensation Committee of the Board, or such other committee as may be appointed by the Board to administer the Plan.

1.7    “Constructive Termination” means the Participant’s resignation of employment within sixty (60) days of one or more of the following events which remains uncured thirty (30) days after the Participant’s delivery of written notice thereof, and which resignation is effective not more than thirty (30) days following the expiration of such cure period:

(i)the delegation to the Participant of duties or the reduction of the Participant’s duties, either of which substantially reduces the nature, responsibility, or character of the Participant’s position immediately prior to such delegation or reduction; 

(ii)a material reduction by the Company in the Participant’s annual base salary in effect immediately prior to such reduction;

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(iii)the Company’s relocation of the Participant’s principal work location to a place more than forty (40) miles from the Participant’s then-current principal work location (except that reasonably required travel on the Company’s business shall not be considered a relocation).

1.8    “Death/Disability Termination” means a termination of a Participant’s employment with the Company or a subsidiary of the Company, as applicable, by reason of the Participant’s death or Disability.

1.9    “Disability” means the total and permanent incapacity of the Participant due to physical or mental impairment, to engage in any gainful activity, which disability can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, and which disability shall be determined on the basis of medical evidence by a licensed physician designated by the Company.

1.10    “Employee” means an individual who is an employee (within the meaning of Section 3401(c) of the Code) of the Company or any subsidiary of the Company.

1.11    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

1.12    “Healthcare Continuation Period” means, with respect to any Participant, the number of months during which the Participant is entitled to Continued Health Insurance (as defined below) in the event the Participant experiences a Qualifying Termination (other than a CIC Termination) or a CIC Termination, as applicable, as determined by the Company and set forth in the Participant’s Participation Agreement.

1.13    “Initial Participant” means each Employee who, concurrently with the Committee’s adoption of the Plan, is selected by the Company to participate in the Plan and is provided with (and executes) a Participation Agreement in accordance with Section 11.2 hereof.

1.14    “Participant” means each Employee who, prior to or at the time of his or her termination of employment, is selected by the Company to participate in the Plan and is provided with (and executes) a Participation Agreement in accordance with Section 11.2 hereof.

1.15    “Participation Agreement” means a Participation Agreement in a form prescribed by the Company that is executed and delivered by the Company and a Participant.

1.16    “Performance-Based Equity Award” means an equity-based award granted by the Company which vests based on the satisfaction of performance goals.

1.17    “Qualifying Termination” means a termination of the Participant’s employment with the Company or a subsidiary of the Company, as applicable, by the Company or such subsidiary, as applicable, without Cause or by the Participant by reason of a Constructive Termination.  For the avoidance of doubt, a Death/Disability Termination shall not constitute a Qualifying Termination.

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1.18    “Qualifying Termination Cash Severance Multiple” means a number determined by the Company and set forth in a Participant’s Participation Agreement used for purposes of calculating such Participant’s Cash Severance.

1.19    “Severance Benefits” means, collectively, the Cash Severance, the Continued Health Insurance (as defined in Section 4.2(b)) and the RSA/RSU Acceleration (as defined in Section 4.2(c)), as applicable, to which a Participant may become entitled pursuant to the Plan.

1.20    “Subsequent Participant” means each Participant who is not an Initial Participant. 

1.21    “Termination Date” means the effective date of the termination of the Participant’s employment with the Company.

2.    Effectiveness of the Plan.  The Plan shall become effective on the date on which it is duly adopted by the Committee.  

3.    Administration.  Subject to Section 11.4 hereof, the Plan shall be interpreted, administered and operated by the Committee (the “Plan Administrator”), which shall have complete authority, subject to the express provisions of the Plan, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.  The Plan Administrator may delegate any of its duties hereunder to a subcommittee, or to such person or persons from time to time as it may designate.  All decisions, interpretations and other actions of the Plan Administrator (including with respect to whether a termination of employment, Qualifying Termination, CIC Termination or Death/Disability Termination has occurred) shall be made in good faith and be final, conclusive and binding on all parties who have an interest in the Plan, subject to the Participant’s rights pursuant to Section 10 hereof.

4.    Severance Benefits. 

4.1    Eligibility; Accrued Compensation.  Employees who qualify as Participants and who experience a Qualifying Termination or Death/Disability Termination are eligible to receive applicable Severance Benefits under the Plan.  In addition to any Severance Benefits paid or provided to a Participant hereunder, in the event of a termination of a Participant’s employment with the Company for any reason, the Company shall pay to the Participant the amount of the Participant’s accrued but unpaid wages (including all earned commission pay, if any, payable pursuant to a separate commissions agreement) and accrued but unused vacation, if any, as of the Participant’s Termination Date.

4.2    Qualifying Termination.  In the event that a Participant experiences a Qualifying Termination (including a CIC Termination), then, subject to the Participant’s execution and, to the extent applicable, non-revocation of the Release in accordance with Section 4.4 below, and subject 

4

to any additional requirements specified in the Plan, the Company shall pay or provide to the Participant the following Severance Benefits:

(a)    Cash Severance Payment.  The Company shall pay to the Participant a lump-sum cash payment in an amount equal to the Participant’s Cash Severance.  Subject to Section 6.2 below, the Cash Severance shall be paid to the Participant on the sixtieth (60th) day following the Termination Date.
 
(b)    Continued Health Benefits.  Subject to the requirements of the Code, if the Participant properly elects health care continuation coverage under the Company’s group health plans pursuant to COBRA, then the Company shall continue to provide the Participant with group health insurance at the Company’s expense (whether through reimbursement of COBRA premiums or otherwise in the Company’s discretion) for a period commencing on the Termination Date and ending on the earlier of the end of the month during which the Participant’s Healthcare Continuation Period ends or the date on which the Participant becomes covered under another group health insurance plan (the “Continued Health Insurance”).  Notwithstanding the foregoing, (i) if any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A of the Code under Treasury Regulation Section 1.409A-1(a)(5), or (ii) the Company is otherwise unable to continue to cover the Participant under its group health plans without penalty under applicable law (including without limitation, Section 2716 of the Public Health Service Act), then, in either case, an amount equal to each remaining premium payment shall thereafter be paid to the Participant in substantially equal monthly installments over the Healthcare Continuation Period (or the remaining portion thereof).

(c)    Equity Award Treatment.  

(i)    Restricted Stock/Restricted Stock Units.  Except as otherwise determined by the Plan Administrator and provided in the Participant’s Participation Agreement, all then-outstanding unvested Company time-vesting restricted stock awards and time-vesting restricted stock unit awards held by the Participant on the Termination Date shall vest in full as of the Termination Date (together with the accelerated vesting set forth in Section 4.3 below, the “RSA/RSU Acceleration”).

(ii)    Performance-Based Equity Awards.  Each outstanding Performance-Based Equity Award which is held by the Participant on the Termination Date shall be treated in accordance with the terms of the applicable plan and award agreement governing the Performance-Based Equity Award.

4.1    Death/Disability Termination.  In the event that a Participant experiences a Death/Disability Termination, except as otherwise determined by the Plan Administrator and provided in the Participant’s Participation Agreement, all then-outstanding unvested Company time-vesting 

5

restricted stock awards and time-vesting restricted stock unit awards held by the Participant on the Termination Date shall vest in full as of the Termination Date.

4.2    Release.  Notwithstanding anything herein to the contrary, no Participant shall be eligible or entitled to receive or retain any Severance Benefits under Section 4.2 of the Plan unless he or she executes a Severance Agreement and General Release in the form attached hereto as Exhibit A (the “Release”) within twenty-one (21) days (or forty-five (45) days if necessary to comply with applicable law) after the Termination Date and, if he or she is entitled to a seven (7) day post-signing revocation period under applicable law, does not revoke such Release during such seven (7) day period.

4.3    Resignation of Director and Officer Positions.  Upon a termination of the Participant’s employment for any reason, unless otherwise specified in a written agreement between the Participant and the Company, the Participant shall be deemed to have resigned from all offices, directorships, and other employment positions if any, then held with the Company and its subsidiaries, and shall take all actions reasonably requested by the Company to effectuate the foregoing.

5.        Limitations.  Notwithstanding any provision of the Plan to the contrary, if a Participant’s status as an Employee is terminated for any reason other than due to a Qualifying Termination or Death/Disability Termination, the Participant shall not be entitled to receive any Severance Benefits under the Plan, and the Company shall not have any obligation to such Participant under the Plan.

6.        Section 409A.

6.1    General.  To the extent applicable, the Plan shall be interpreted and applied consistent and in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder.  Notwithstanding any provision of the Plan to the contrary, to the extent that the Plan Administrator determines that any payments or benefits under the Plan may not be either compliant with or exempt from Section 409A of the Code and related Department of Treasury guidance, the Plan Administrator may in its sole discretion adopt such amendments to the Plan or take such other actions that the Plan Administrator determines are necessary or appropriate to (i) exempt the compensation and benefits payable under the Plan from Section 409A of the Code and/or preserve the intended tax treatment of such compensation and benefits, or (ii) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance; provided, however, that this Section 6.1 shall not create any obligation on the part of the Plan Administrator to adopt any such amendment or take any other action, nor shall the Company have any liability for failing to do so.

6.2    Potential Six-Month Delay.  Notwithstanding anything to the contrary in the Plan, no amounts shall be paid to any Participant under the Plan during the six-month period following such Participant’s “separation from service” (within the meaning of Section 409A(a)(2)(A)(i) of the Code and Treasury Regulation Section 1.409A-1(h)) to the extent that the Plan Administrator 

6

determines that paying such amounts at the time or times indicated in the Plan would result in a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code.  If the payment of any such amounts is delayed as a result of the previous sentence, then on the first business day following the end of such six-month period (or such earlier date upon which such amount can be paid under Code Section 409A without resulting in a prohibited distribution, including as a result of the Participant’s death), the Participant shall receive payment of a lump-sum amount equal to the cumulative amount that would have otherwise been payable to the Participant during such six-month period without interest thereon.

6.3    Reimbursements.  To the extent that any payments or reimbursements provided to a Participant under the Plan are deemed to constitute compensation to the Participant to which Treasury Regulation Section 1.409A-3(i)(1)(iv) would apply, such amounts shall be paid or reimbursed reasonably promptly, but not later than December 31st of the year following the year in which the expense was incurred.  The amount of any such payments eligible for reimbursement in one year shall not affect the payments or expenses that are eligible for payment or reimbursement in any other taxable year, and the Participant’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.

6.4    Installments.  For purposes of applying the provisions of Section 409A of the Code to the Plan, each separately identified amount to which a Participant is entitled under the Plan shall be treated as a separate payment.  In addition, to the extent permissible under Section 409A of the Code, the right to receive any installment payments under the Plan shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii).  Whenever a payment under the Plan specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company.

1.        No Mitigation.  No Participant shall be required to seek other employment or attempt in any way to reduce or mitigate any Severance Benefits payable under the Plan and the amount of any such Severance Benefits shall not be reduced by any other compensation paid or provided to any Participant following such Participant’s termination of service.

2.        Successors.    

2.1    Company Successors.  The Plan shall inure to the benefit of and shall be binding upon the Company and its successors and assigns.  Any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company under the Plan.

2.2    Participant Successors.  The Plan shall inure to the benefit of and be enforceable by each Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, legatees or other beneficiaries.  If a Participant dies while any amount remains 

7

payable to such Participant hereunder, all such amounts shall be paid in accordance with the terms of the Plan to the executors, personal representatives or administrators of such Participant’s estate.  Neither the Participant nor his or her spouse or estate shall have any right to commute, encumber or dispose of any right to receive payments under the Plan, it being agreed that such payments and the rights thereto are non-assignable and nontransferable.

3.        Notices.  All communications relating to matters arising under the Plan shall be in writing and shall be deemed to have been duly given when hand delivered, faxed, emailed or mailed by reputable overnight carrier or United States certified mail, return receipt requested, addressed, if to a Participant, to the address on file with the Company or to such other address as the Participant may have furnished to the other in writing in accordance herewith and, if to the Company, to such address as may be specified from time to time by the Plan Administrator, except that notice of change of address shall be effective only upon actual receipt.

4.        Claims Procedure.

4.1    Claims.  Generally, Participants are not required to present a formal claim in order to receive benefits under the Plan.  If, however, any person (the “Claimant”) believes that benefits are being denied improperly, that the Plan is not being operated properly, that fiduciaries of the Plan have breached their duties, or that the Claimant’s legal rights are being violated with respect to the Plan, the Claimant must file a formal claim, in writing, with the Plan Administrator.  This requirement applies to all claims that any Claimant has with respect to the Plan, including claims against fiduciaries and former fiduciaries, except to the extent the Plan Administrator determines, in its sole discretion that it does not have the power to grant all relief reasonably being sought by the Claimant.  A formal claim must be filed within ninety (90) days after the date the Claimant first knew or should have known of the facts on which the claim is based, unless the Plan Administrator consents otherwise in writing.  The Plan Administrator shall provide a Claimant, on request, with a copy of the claims procedures established under Section 10.2.  

4.2    Claims Procedure.  The Plan Administrator has adopted procedures for considering claims (which are set forth in Exhibit B attached hereto), which it may amend or modify from time to time, as it sees fit.  These procedures shall comply with all applicable legal requirements.  The right to receive benefits under the Plan is contingent on a Claimant using the prescribed claims procedures to resolve any claim; provided, however, that nothing contained in the Plan or in such claims procedures shall limit the rights of any Claimant to pursue any other rights or remedies available to such Claimant under law or in equity once such Claimant has exhausted the claims procedures prescribed by the Plan Administrator.

5.        Miscellaneous.

5.1    Entire Plan; Relation to Other Agreements.  The Plan, together with any Participation Agreement issued in connection with the Plan, contains the entire understanding of the parties relating to the subject matter hereof and supersedes any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary 

8

of the Company, on the other hand, with respect to the subject matter hereof.  Severance Benefits payable under the Plan are not intended to duplicate any other severance benefits payable to a Participant by the Company.  By participating in the Plan and accepting the Severance Benefits hereunder, the Participant acknowledges and agrees that any prior agreement, arrangement and understanding between any Participant, on the one hand, and the Company and/or any subsidiary of the Company, on the other hand, with respect to the subject matter hereof is hereby revoked and ineffective with respect to the Participant.

5.2    Participation Agreements.  The Company shall have the authority, in its sole discretion, to select Employees to participate in the Plan.  Each Employee so selected shall execute a Participation Agreement as a condition to his or her participation in the Plan.  

5.3    No Right to Continued Service.  Nothing contained in the Plan shall (i) confer upon any Participant any right to continue as an employee of the Company or any subsidiary of the Company, (ii) constitute any contract of employment or agreement to continue employment for any particular period, or (iii) interfere in any way with the right of the Company to terminate a service relationship with any Participant, with or without Cause.

5.4    Termination and Amendment of Plan.  The Board or the Committee may terminate or amend the Plan in its sole discretion from time to time and for any reason (or for no reason); provided, however, that (i) no termination or amendment of the Plan shall be effected at any time which adversely affects the rights of any Initial Participant without such Initial Participant’s advance written consent, (ii) no termination or amendment of the Plan shall be effected upon or following a Change in Control which adversely affects the rights of any Subsequent Participant without such Subsequent Participant’s advance written consent, and (iii) no termination or amendment of the Plan which adversely affects the rights of any Subsequent Participant shall be effected prior to a Change in Control without such Subsequent Participant’s advance written consent, unless the Company provides such affected Subsequent Participant at least twelve (12) month’s advance written notice thereof.  

5.5    Participant Covenants.  A Participant’s right to receive and/or retain the Severance Benefits payable under the Plan is conditioned upon (x) the Participant’s continued compliance with any confidentiality, non-solicitation and other restrictive covenants with respect to which the Participant is bound pursuant to any agreement with the Company and/or any subsidiary of the Company (including the Participant’s Participation Agreement), and (y) within five (5) days following the date of the Participant’s Qualifying Termination or Death/Disability Termination, as applicable, the Participant’s return to the Company of all Company documents (and all copies thereof) and other Company property (in each case, whether physical, electronic or otherwise) in the Participant’s possession or control.

5.6    Severance Benefit Obligations.  Notwithstanding anything contained herein, Severance Benefits paid or provided under the Plan may be paid or provided by the Company or any subsidiary employer, as applicable.

9

5.7    Withholding.  The Company shall have the authority and the right to deduct and withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld with respect to any Severance Benefits payable under the Plan.  

5.8    Benefits Not Assignable.  Except as otherwise provided herein or by law, no right or interest of any Participant under the Plan shall be assignable or transferable, in whole or in part, either directly or by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment, pledge or in any manner; no attempted assignment or transfer thereof shall be effective; and no right or interest of any Participant under the Plan shall be liable for, or subject to, any obligation or liability of such Participant.  When a payment is due under the Plan to a Participant who is unable to care for his or her affairs, payment may be made directly to his or her legal guardian or personal representative.

5.9    Applicable Law.  The Plan is intended to be an unfunded “top hat” welfare plan within the meaning of U.S. Department of Labor Regulation Section 2520.104-24 and shall be interpreted, administered, and enforced as such in accordance with ERISA.  To the extent that state law is applicable, the statutes and common law of the State of California, excluding any that mandate the use of another jurisdiction’s laws, will apply.  

5.10    Severability.  In the event any term, phrase, clause, paragraph, section, restriction, covenant or agreement contained in the Plan or any Participation Agreement shall be held to be invalid or unenforceable, the same shall be deemed, and it is hereby agreed that the same are meant to be several and shall not defeat or impair the remaining provisions hereof or thereof.

5.11    Captions.  The captions contained in the Plan are for convenience only and shall have no bearing on the meaning, construction or interpretation of the Plan’s provisions.

5.12    Expenses.  The expenses of administering the Plan shall be borne by the Company or its successor, as applicable.

5.13    Unfunded Plan.  The Plan shall be maintained in a manner to be considered “unfunded” for purposes of ERISA.  The Company shall be required to make payments only as benefits become due and payable.  No person shall have any right, other than the right of an unsecured general creditor against the Company, with respect to the benefits payable hereunder, or which may be payable hereunder, to any Participant, surviving spouse or beneficiary hereunder.  If the Company, acting in its sole discretion, establishes a reserve or other fund associated with the Plan, no person shall have any right to or interest in any specific amount or asset of such reserve or fund by reason of amounts which may be payable to such person under the Plan, nor shall such person have any right to receive any payment under the Plan except as and to the extent expressly provided in the Plan.  The assets in any such reserve or fund shall be part of the general assets of the Company, subject to the control of the Company.

*  *  *  *  *

10

I hereby certify that the foregoing Plan was duly adopted by the Compensation Committee of the Board of Directors of Realty Income Corporation on January 15, 2019.

	
		
	Signature:
	 

	 
	 

	Name:
	 

	Title:
	 

11

EXHIBIT A
SEVERANCE AGREEMENT AND GENERAL RELEASE

This Severance Agreement and General Release (this “Severance Agreement”) is entered into as of _____________________, 20___, by and between Realty Income Corporation (the “Company”), and ____________________ (hereinafter, the “Participant”).
IN CONSIDERATION of the severance compensation as herein provided, to which the Participant is not otherwise entitled, the Participant does hereby unconditionally, irrevocably and absolutely release and discharge the Company, and any parent and subsidiary corporations, divisions and other affiliated entities, past and present, as well as its past and present directors, officers, employees, shareholders, agents, successors and assigns (collectively, “Released Parties”), from any and all loss, liability, claims, demands, causes of action, or suit of any type related directly or indirectly or in any way connected to the transactions or occurrences between the Participant and the Released Parties to date, to the fullest extent permitted by applicable law.  This release includes, but is not limited to, any losses, liabilities, claims, demands, causes of action, known or unknown, suspected or unsuspected, arising directly out of or in any way related to the Participant’s employment with the Company, or the termination of the Participant’s employment.  This release is intended to have the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other statutory claims, as well as alleged violations of the California Labor Code, any applicable California Industrial Welfare Commission order, the California Business and Professions Code, Title VII of the Civil Rights Act of 1964, the California Fair Employment and Housing Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Age Discrimination in Employment Act of 1967, all as amended, and all claims for attorneys’ fees, costs and expenses.  However, this release shall not apply to claims for workers’ compensation benefits or unemployment insurance benefits, any challenge made by the Participant to the validity of his or her release of claims under the Age Discrimination in Employment Act, or any other claims of the Participant that cannot, by statute, lawfully be waived by this Severance Agreement.  The Participant is not waiving his or her rights to enforce this Severance Agreement, not waiving vested rights under any other agreement between the parties, not waiving indemnification and not waiving legal fees with respect thereto.
IN FURTHER CONSIDERATION THEREOF, the Participant hereby waives all rights he or she may have to any personal relief or recovery from any charge or complaint, for events or causes of action occurring or accruing on or before the Effective Date of this Severance Agreement, before any federal, state, or local administrative agency against the Released Parties, except as such waiver is prohibited by statutory provision.  The Participant further waives all rights to file or join in any action before any federal, state, or local court against the Released Parties for any events or causes of action occurring or accruing on or before the Effective Date of this Severance Agreement.  The Participant also acknowledges that he or she does not have any current charge or claim against the Released Parties pending before any local, state or federal agency regarding his employment.  Except as prohibited by statutory provision, in the event that any claims are filed, they shall be dismissed with prejudice upon presentation of this Severance Agreement, and the Participant shall reimburse the Company for the costs, including reasonable attorneys’ fees, of defending any such 

Exhibit A

action.  The attorneys’ fee provision in the previous sentence shall not apply to any action by the Participant to challenge the enforceability of his or her waiver of rights under the Age Discrimination in Employment Act.
As consideration for entering into this Severance Agreement, the Participant shall receive the following severance compensation payable in accordance with the terms of Section 4.2 of that certain Realty Income Corporation Executive Severance Plan (as may be amended from time to time, the “Plan”):
a)    The total gross sum of [______] ($[______]), payable in a lump sum, and subject to applicable withholdings;
b)    Continued group health insurance at the Company’s expense for the Participant and his or her dependents (if currently covered) through [______], [____], or until the Participant becomes covered under another group health insurance plan, whichever occurs first.  The Participant shall immediately notify the Company upon becoming eligible for coverage under another group health insurance plan; and
c)    All then-outstanding unvested Company time-vesting restricted stock awards and time-vesting restricted stock unit awards held by the Participant on the Termination Date (as defined in the Plan) shall vest in full as of the Termination Date.
Except as set forth in this Severance Agreement, or as otherwise mandated by applicable law, the Participant shall not be entitled to any benefits as an employee or former employee of the Company.
As a condition of the foregoing payments and benefits, the Participant agrees to preserve the confidentiality of all trade secrets and other confidential information of the Released Parties, and will not now or in the future disrupt, damage, impair or interfere with the business of the Released Parties, whether by way of using or disclosing the Released Parties’ trade secrets and confidential information to compete against them, interfering with or raiding their employees, or otherwise unlawfully disrupting their relationships with customers, agents, representatives or vendors.  The Participant agrees to comply, in all respects, with the any confidentiality, non-solicitation, and other restrictive covenants with respect to which the Participant is bound pursuant to any agreement with the Company and/or any of its subsidiaries (including the the Participant’s Participation Agreement under the Plan).  Notwithstanding the foregoing, nothing in this Severance Agreement is intended to or shall prevent the Participant from communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to, any federal, state or local government regulator (including, but not limited to, the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission, or the U.S. Department of Justice) for the purpose of reporting or investigating a suspected violation of law, or from providing such information to the Participant’s attorney or in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Nothing in this Severance Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

Exhibit A

The Participant agrees to cooperate with the Company in accomplishing a smooth and orderly transition in the transfer of responsibilities of the Participant to other employees of the Company, particularly including pending matters of which the Participant has the principal knowledge and background information.  In this regard, the Participant agrees to respond in a timely fashion to the questions which may be presented occasionally by the Company.  Such cooperation and responses shall not entitle the Participant to any additional compensation beyond the severance compensation specified herein above, so long as such cooperation and responses do not unreasonably interfere with the Participant’s other gainful employment or efforts to secure gainful employment.
By signing this Severance Agreement, the Participant represents, warrants and agrees as follows:
(1)    The Participant has carefully read this Severance Agreement and understands all of its respective terms.
(2)    The Participant does expressly waive all of the benefits and rights granted to him or her pursuant to California Civil Code Section 1542, which provides and reads as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
The Participant does certify that he or she has read all of this Severance Agreement and the quoted Civil Code Section, and that he or she fully understands all of the same, and that he or she has been given the opportunity, if he or she desires, to review the terms of this Severance Agreement and with counsel of his choosing.
(3)    The Participant expressly declares and represents that no promise, inducement or agreement not herein expressed has been made to him or her and that this Severance Agreement contains the entire agreement between the parties concerning the subject matter of this Severance Agreement and supersedes all prior negotiations, discussions or agreements relating to the subject matter of this Severance Agreement; provided, however, that the Plan is incorporated and made a part of this Severance Agreement and remains in full force and effect.
(4)    The Participant agrees that this Severance Agreement may be pled as a full and complete defense to, and may be used as the basis for an injunction against, any action, suit or other proceeding which may be prosecuted, instituted or attempted by the Participant in breach hereof.  The Participant further agrees that in the event an action or proceeding is instituted by the Participant or the Company or any party released hereby in order to enforce the terms or provisions hereof, the prevailing party shall be entitled to an award of reasonable costs and attorneys’ fees.  This attorneys’ fee provision shall not apply to an action brought by the Participant to challenge the enforceability of his or her waiver of rights under the Age Discrimination in Employment Act.

Exhibit A

(5)     The parties agree that this Severance Agreement shall bind the Participant, his or her heirs, successors, agents, representatives and assigns, and each of them, and shall inure to the benefit of the successors and assigns of the respective parties hereto.
(6)    The Participant has signed this Severance Agreement knowingly and voluntarily, and no promises or representations have been made to him or her to induce him or her to sign this Severance Agreement.
(7)    If the Participant is under age 40 as of the date he or she signs this Severance Agreement, he or she understands that the acceptance procedures of this Paragraph 7 apply to him or her.  The Participant understands that he or she may take up to twenty-one (21) days to sign this Severance Agreement and the Severance Agreement shall be effective immediately upon the date of his or her signature (“Effective Date”).
(8)    If the Participant is age 40 or over as of the date he or she signs this Severance Agreement, he or she understands that the acceptance procedures of this Paragraph 8 apply to him or her.  The Participant acknowledges and agrees that:  a) he or she has been advised to consult with an attorney before executing this Severance Agreement; b) he or she has been given at least twenty-one (21) days to consider and sign this Severance Agreement; c) the Participant may revoke his or her acceptance of this Severance Agreement within seven days after he or she signs it by delivering a written revocation to the [______] of the Company so that such written revocation is received by no later than the seventh day; d) this Severance Agreement shall not be binding and enforceable until the eighth day after the Participant signs this Severance Agreement without revoking it (“Effective Date”); and e) this Severance Agreement does not waive or release any rights or claims that the Participant may have under the Age Discrimination in Employment Act that arise after execution of this Severance Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Severance Agreement and General Release as of the date first above written.
	
			
	REALTY INCOME CORPORATION
	 
	PARTICIPANT

	 
	 
	 

	By:
	 
	 

	 
	 
	 

	Title:
	 
	 

Exhibit A

EXHIBIT B
DETAILED CLAIMS PROCEDURES

1.    Initial Claims.  All claims will be presented to the Plan Administrator in writing.  Within ninety (90) days after receiving a claim, a claims official appointed by the Plan Administrator will consider the claim and issue his or her determination thereon in writing.  The claims official may extend the determination period for up to an additional ninety (90) days by giving the Claimant written notice.  The initial claim determination period can be extended further with the consent of the Claimant.  Any claims that the Claimant does not pursue in good faith through the initial claims stage will be treated as having been irrevocably waived.  
2.    Claims Decisions.  If the claim is granted, the benefits or relief the Claimant seeks will be provided.  If the claim is wholly or partially denied, the claims official will, within ninety (90) days (or a longer period, as described above), provide the Claimant with written notice of the denial, setting forth, in a manner calculated to be understood by the Claimant: (i) the specific reason or reasons for the denial; (ii) specific references to the provisions on which the denial is based; (iii) a description of any additional material or information necessary for the Claimant to perfect the claim, together with an explanation of why the material or information is necessary; and (iv) appropriate information as to the steps to be taken if the Claimant wishes to submit his or her claim for review, including the time limits applicable to such procedures, and a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse decision upon review.  If the Claimant can establish that the claims official has failed to respond to the claim in a timely manner, the Claimant may treat the claim as having been denied by the claims official.
3.    Appeals of Denied Claims.  Each Claimant will have the opportunity to appeal the claims official’s denial of a claim in writing to an appeals official appointed by the Plan Administrator (which may be a person, committee, or other entity).  A Claimant must appeal a denied claim within sixty (60) days after receipt of written notice of denial of the claim, or within sixty (60) days after it was due if the Claimant did not receive it by its due date.  The Claimant (or his or her duly authorized representative) may review pertinent documents in connection with the appeals proceeding and may present issues, comments and documents in writing relating to the claim.  The review will take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit claim determination.  Any claims that the Claimant does not pursue in good faith through the appeals stage, such as by failing to file a timely appeal request, will be treated as having been irrevocably waived.
4.    Appeals Decisions.  The decision by the appeals official will be made not later than sixty (60) days after the written appeal is received by the Plan Administrator, unless special circumstances require an extension of time, in which case a decision will be rendered as soon as possible, but not later than one hundred twenty (120) days after the appeal was filed, unless the Claimant agrees to a further extension of time.  The appeal decision will be in writing, will be set forth in a manner calculated to be understood by the Claimant, and will include specific reasons for the decision, specific references to the provisions on which the decision is based, if applicable, a statement that 

Exhibit B

the Claimant is entitled to receive upon request and free of charge reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim for benefits, as well as a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.  If a Claimant does not receive the appeal decision by the date it is due, the Claimant may deem his or her appeal to have been denied.
5.    Procedures.  The Plan Administrator will adopt procedures by which initial claims will be considered and appeals will be resolved; different procedures may be established for different claims.  All procedures will be designed to afford a Claimant full and fair consideration of his or her claim.
6.    Remedies.  Nothing contained in the Plan or in these claims procedures shall limit the rights of any Claimant to pursue any other rights or remedies available to such Claimant under law or in equity once such Claimant has exhausted the claims procedures set forth herein.
The procedures set forth herein are intended to comply with United States Department of Labor Regulation Section 2560.503‐1 and should be construed in accordance with such regulation.  In no event shall the foregoing claims procedure be interpreted as expanding the rights of any Participant beyond what is required by United States Department of Labor Regulation Section 2560.503‐1.

Exhibit B

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