Document:

Exhibit 4.2

 

PRINCIPAL AMOUNT

$550,000,000

REGISTERED NO.:  R-1

CUSIP NO.: 756109AK0

ISIN
NO.:  US756109AK03

REALTY INCOME CORPORATION

6.750% NOTES DUE
2019

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

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

Realty Income Corporation,
a Maryland corporation (the “Company,” which term shall include any successor
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of Five
Hundred Fifty Million Dollars on August 15, 2019, and to pay interest thereon
from September 5, 2007 or from the most recent date to which interest has been
paid or duly provided for, semi-annually in arrears on February 15 and August 15
of each year (the “Interest Payment Dates”), commencing February 15, 2008, at
the rate of 6.750% per annum, until the entire principal amount hereof is paid
or made available for payment.  The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in the Indenture, be paid to the Person in whose
name this Note (or one or more Predecessor Securities) is registered in the
Security Register applicable to the Notes at the close of business on February
1 or August 1 (the “Regular Record Dates”), as the case may be, immediately
preceding the applicable Interest Payment Date regardless of whether the
Regular Record Date is a Business Day. 
Any such interest not so punctually paid or duly provided for shall forthwith
cease to be payable to the Holder on such Regular Record Date, and may either
be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Notes of this series not less than 10 days
prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in the 

Indenture.  Interest will be computed on the basis of a
360-day year of twelve 30-day months.  If
any principal of or premium, if any, or interest on any of the Notes is not
paid when due, then such overdue principal and, to the extent permitted by law,
such overdue premium or interest, as the case may be, shall bear interest,
until paid or until such payment is duly provided for, at the rate of 6.750%
per annum.

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

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

This Note is one of a
duly authorized issue of Securities of the Company (herein called the “Notes”),
issued as a series of Securities under an indenture dated as of October 28,
1998 (herein called, together with all indentures supplemental thereto, the “Indenture”),
between the Company and The Bank of New York Trust Company, N.A. (successor
trustee to The Bank of New York), as trustee (the “Trustee,” which term
includes any successor trustee under the Indenture with respect to the Notes),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered.  This Note is one of the
duly authorized series designated as the “6.750% Notes due 2019,” limited
(subject to exceptions provided in the Indenture and subject to the right of
the Company to reopen such series for the issuance of additional Securities of
such series on the terms and subject to the conditions specified in the
Indenture) in aggregate principal amount to $550,000,000.  All terms used in this Note which are defined
in the Indenture and not defined herein shall have the meanings assigned to
them in the Indenture.

The Notes may be redeemed
at any time at the option of the Company, in whole at any time or from time to
time in part, at a Redemption Price equal to the greater of:

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

(b) the sum of the present values of the remaining
scheduled payments of principal of and interest on the Notes to be redeemed
(exclusive of interest accrued to the applicable Redemption Date) discounted to
such Redemption Date on a semiannual basis, assuming a 360-day year consisting
of twelve 30-day months, at the Treasury Rate plus 35 basis points,

plus, in the case of both
clauses (a) and (b) above, accrued and unpaid interest on the principal amount
of the Notes being redeemed to such Redemption Date.  Notwithstanding the foregoing, installments
of interest on Notes whose Stated Maturity is on or prior to the relevant
Redemption Date will be payable to the Holders of such Notes (or one or more
Predecessor Securities) registered as such at the close of business on the
relevant Regular Record Dates according to their terms and the provisions of
the Indenture.

Notice of any redemption
by the Company will be mailed at least 30 days but not more than 60 days before
the applicable Redemption Date to each Holder of Notes to be redeemed.

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

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

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

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

Debt Service Coverage.  The Company will not, and
will not permit any Subsidiary to, incur any Debt, other than Intercompany
Debt, if the ratio of Consolidated Income Available for Debt Service to the
Annual Debt Service Charge for the period consisting of the four consecutive 

fiscal quarters most
recently ended prior to the date on which such additional Debt is to be
incurred is less than 1.5 to 1.0, on a pro forma basis after giving effect to
the incurrence of such Debt and the application of the proceeds therefrom, and
calculated on the assumption that (i) such Debt and any other Debt incurred by
the Company or any of its Subsidiaries since the first day of such four-quarter
period and the application of the proceeds therefrom (including to refinance
other Debt since the first day of such four-quarter period) had occurred on the
first day of such period, (ii) the repayment or retirement of any other Debt of
the Company or any of its Subsidiaries since the first day of such four-quarter
period had occurred on the first day of such period (except that, in making
such computation, the amount of Debt under any revolving credit facility, line
of credit or similar facility shall be computed based upon the average daily
balance of such Debt during such period), and (iii) in the case of any
acquisition or disposition by the Company or any Subsidiary of any asset or
group of assets since the first day of such four-quarter period, including,
without limitation, by merger, stock purchase or sale, or asset purchase or
sale, such acquisition or disposition had occurred on the first day of such
period with the appropriate adjustments with respect to such acquisition or
disposition being included in such pro forma calculation.  If the Debt giving rise to the need to make
the foregoing calculation or any other Debt incurred after the first day of the
relevant four-quarter period bears interest at a floating rate then, for
purposes of calculating the Annual Debt Service Charge, the interest rate on
such Debt shall be computed on a pro forma basis as if the average interest
rate which would have been in effect during the entire such four-quarter period
had been the applicable rate for the entire such period.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

“Final Maturity
Date” means August 15, 2019.

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

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

 “Reference Treasury Dealer” means with
respect to any Redemption Date for the Notes, Banc of America Securities LLC and
Citigroup Global Markets Inc. and their respective successors (provided,
however, that if any such firm or any such successor, as the case may be,
ceases to be a primary U.S. Government securities dealer in The City of New
York (a “Primary Treasury Dealer”), the Trustee, after consultation with the
Company, shall substitute therefor another Primary Treasury Dealer) and two
other Primary Treasury Dealers selected by the Trustee after consultation with
the Company.

“Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any Redemption Date for the Notes, the average, as determined by the
Trustee, 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 Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such Redemption Date.

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

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

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

(a)           the
yield, under the heading that represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated “H.15(519)” or any successor publication which is published weekly
by 

the Board of Governors of the Federal Reserve System
and which establishes yields on actively traded United States Treasury
securities adjusted to constant maturity under the caption “Treasury Constant
Maturities,” for the maturity corresponding to the Comparable Treasury Issue
(if no maturity is within three months before or after the Final Maturity Date
of the Notes, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue shall be determined and the
Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line
basis, rounding to the nearest month), or

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

The Treasury Rate shall
be calculated on the third Business Day preceding the applicable Redemption
Date.

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

“Total Unencumbered Assets” as of
any date means Total Assets minus the value of any properties of the Company
and its Subsidiaries that are encumbered by any mortgage, charge, pledge, lien,
security interest, trust deed, deed of trust, deed to secure debt, security
agreement, or other encumbrance of any kind (other than those relating to
Intercompany Debt), including the value of any stock of any Subsidiary that is
so encumbered determined on a consolidated basis in accordance with GAAP.  For purposes of this definition, the value of
each property shall be equal to the purchase price or cost of each such
property and the value of any stock subject to any encumbrance shall be
determined by reference to the value of the properties owned by the issuer of
such stock as aforesaid.

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

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

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

As provided in and
subject to the provisions of the Indenture, the Holder of this Note shall not
have the right to institute any proceeding with respect to the Indenture or for
the appointment of a receiver or trustee or for any other remedy thereunder,
unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Notes, the Holders of not less
than 25% in principal amount of the Notes at the time Outstanding shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity and
the Trustee shall not have received from the Holders of a majority in principal

amount of the Notes at
the time Outstanding a direction inconsistent with such request, and shall have
failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. 
The foregoing shall not apply to any suit instituted by the Holder of
this Note for the enforcement of any payment of principal of, or premium, if
any, or interest on, this Note on or after the respective due dates therefor.

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

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

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

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

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

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

No recourse shall be had
for the payment of the principal of, or premium, if any, or the interest on
this Note, or for any claim based hereon, or otherwise in respect hereof, or
based on or in respect of the Indenture or any indenture supplemental thereto,
against any past, present or future stockholder, employee, officer or director,
as such, of the Company or of any successor, either directly or 

through the Company or
any successor, whether by virtue of any constitution, statute or rule of law or
by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

THE INDENTURE AND THE
NOTES, INCLUDING THIS NOTE, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

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

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

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

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

[Seal]

	
  

  	
  REALTY INCOME CORPORATION

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Thomas A. Lewis

  
	
   

  	
   

  	
  Vice Chairman of
  the Board and

  
	
   

  	
   

  	
  Chief Executive
  Officer

  

 

 

	
  Attest:

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Michael R.
  Pfeiffer

  
	
   

  	
  Executive Vice
  President, General Counsel

  
	
   

  	
  and Secretary

  

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION:

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

	
  THE BANK OF NEW YORK TRUST
  COMPANY, N.A., as Trustee

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  
	
   

  
	
   

  
	
  Dated: September
  5, 2007

  

 

ASSIGNMENT
FORM

FOR VALUE RECEIVED, the
undersigned hereby

sells,
assigns and transfers to

	
  PLEASE INSERT SOCIAL

  
	
  SECURITY OR
  OTHER IDENTIFYING

  
	
  NUMBER OF
  ASSIGNEE

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  

 

 

(Please Print or
Typewrite Name and Address

including Zip Code
of Assignee)

	
  the within Note of REALTY
  INCOME CORPORATION, and

  
	
  hereby does irrevocably
  constitute and appoint

  	
   

  
	
   

  
	
   

  
	
   

  

 

 

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

	
  Dated:

  	
   

  	
   

  

 

 

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

	
  Signature Guaranty

  	
   

  	
   

  
	
   

  	
  (Signature must
  be guaranteed by

  
	
   

  	
  a participant in
  a signature

  
	
   

  	
  guarantee
  medallion program)Exhibit
4.3

Officers’ Certificate

Pursuant to Sections 201, 301 and 303 of the Indenture

Dated:
September 5, 2007

The undersigned, Paul M. Meurer, Executive Vice
President, Chief Financial Officer and Treasurer, and Michael R. Pfeiffer,
Executive Vice President, General Counsel and Secretary, of Realty Income
Corporation, a Maryland corporation (the “Company”), hereby certify as follows:

The undersigned, having read the appropriate
provisions of the Indenture dated as of October 28, 1998 (the “Indenture”)
between the Company and The Bank of New York Trust Company, N.A., as successor trustee
(the “Trustee”), including Sections 201, 301 and 303 thereof and the
definitions in such Indenture relating thereto, and certain other corporate
documents and records, and having made such examination and investigation as,
in the opinion of the undersigned, each considers necessary to enable the
undersigned to express an informed opinion as to whether or not conditions set
forth in the Indenture relating to the establishment of the title and terms of
the Company’s 6.750% Notes due 2019 (the “Securities”) and the form of
certificate evidencing the Securities have been complied with, and whether the
conditions in the Indenture relating to the authentication and delivery by the
Trustee of the Securities have been complied with, certify that (i) the
title and terms of the Securities were established by the undersigned pursuant
to authority delegated to them by resolutions duly adopted by the Board of
Directors of the Company on August 22, 2007 (the “Resolutions”) and such terms
are set forth in Annex I hereto (it being understood that, in the event
that Securities are ever issued in definitive certificated form, the legends
appearing as the first two paragraphs on the first page of such form of Securities
may be removed), (ii) the form of certificate evidencing the Securities was
established by the undersigned pursuant to authority delegated to them by the
Resolutions and shall be in substantially the form attached as Annex II
hereto, (iii) a true, complete and correct copy of the Resolutions, which
were duly adopted by the Board of Directors of the Company and are in full
force and effect in the form adopted on the date hereof, are attached as Annex III
hereto and are also attached as an exhibit to the Certificate of the Secretary
of the Company of even date herewith, (iv) the form, title and terms of the Securities
have been established pursuant to and in accordance with Sections 201 and 301
of the Indenture and comply with the Indenture and, in the opinion of the
undersigned, all conditions provided for in the Indenture (including, without
limitation, those set forth in Sections 201, 301 and 303 of the Indenture)
relating to the establishment of the title and terms of the Securities, the
form of certificate evidencing the Securities and the execution, authentication
and delivery of the Securities have been complied with and (v) to the best
knowledge of the undersigned, no Event of Default (as defined in the Indenture)
has occurred and is continuing with respect to the Securities.

[SIGNATURE
PAGE FOLLOWS]

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

	
  

  	
  /s/ Paul M. Meurer

  
	
  

  	
  Paul M. Meurer

  
	
   

  	
  Executive Vice President, Chief Financial Officer

  
	
   

  	
  and Treasurer

  
	
   

  	
   

  
	
   

  	
  /s/ Michael R. Pfeiffer

  
	
   

  	
  Michael R. Pfeiffer

  
	
   

  	
  Executive Vice President, General Counsel and 

  
	
   

  	
  Secretary

  

 

ANNEX I

Capitalized terms
used in this Annex I and not otherwise defined herein have the same
definitions as in the Indenture referred to in the Officers’ Certificate of
which this Annex I constitutes a part.

(1)                                  The Securities of the
series established hereby shall be known and designated as the “6.750% Notes due
2019.”

(2)                                  The aggregate
principal amount of the Securities of such series which may be authenticated
and delivered under the Indenture is limited to $550,000,000, except for
Securities of such series authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the same
series pursuant to Sections 304, 305, 306, 906 or 1107 of the
Indenture.  However, such series may be
re-opened by the Company for the issuance of additional Securities of
such series, so long as any such additional Securities have the same form and
terms (other than the date of issuance and the date from which interest thereon
shall begin to accrue), and carry the same right to receive accrued and unpaid
interest, as the Securities of such series theretofore issued; provided,
however, that, notwithstanding the foregoing, such series may not be reopened
if the Company has effected defeasance or covenant defeasance with respect to
the Securities of such series pursuant to Section 1402 and 1403,
respectively, of the Indenture or has effected satisfaction and discharge with
respect to the Securities of such series pursuant to Section 401 of the
Indenture.

(3)                                  The Securities of
such series are to be issuable only as Registered Securities without coupons
and may, but need not, bear a corporate seal. 
The Securities of such series shall initially be issued in book-entry
form and represented by one or more permanent Global Securities of such series,
the initial depositary (the “Depositary”) for the Global Securities of such
series shall be The Depository Trust Company and the depositary arrangements
shall be those employed by whoever shall be the Depositary with respect to the
Global Securities of such series from time to time.  Notwithstanding the foregoing, certificated
Securities of such series in definitive form may be issued in exchange for
Global Securities of such series under the circumstances contemplated by Section 305
of the Indenture.

(4)                                  The Securities of
such series shall be sold by the Company to the several underwriters named in
the Purchase Agreement dated August 30, 2007, for whom Banc of America
Securities LLC and Citigroup Global Markets Inc. are acting as
representatives, at a price equal to 99.152% of the principal amount thereof
plus accrued interest from September 5, 2007 if settlement occurs after that
date, and the initial price to public of the Securities of such series shall be
99.827% of the principal amount thereof plus accrued interest from September 5,
2007 if settlement occurs after that date, and underwriting discounts and
commissions shall be 0.675% of the principal amount of such Securities.

(5)                                  The final maturity
date of the Securities of such series on which the principal thereof is due and
payable shall be August 15, 2019.

(6)                                  The principal of the
Securities of such series shall bear interest at the rate of 6.750% per annum
from September 5, 2007 or from the most recent date to which interest has been
paid or duly provided for, payable semiannually in arrears on February 15 and
August 15 (each, an “Interest Payment Date”) of each year, commencing February 15,
2008, to the Persons in whose names such Securities (or one or more Predecessor
Securities) are registered at the close of business on the February 1 or August 1,
respectively, immediately prior to such Interest Payment Dates (each, a “Regular
Record Date”) regardless of whether such Regular Record Date is a Business
Day.  Interest on the Securities of such
series will be computed on the basis of a 360-day year of twelve 30-day months.  If any principal of, or premium, if any, or
interest on, any of the Securities of such series is not paid when due, then
such 

overdue principal and, to the extent permitted by law, such overdue
premium or interest, as the case may be, shall bear interest until paid or
until such payment is duly provided for at the rate of 6.750% per annum.

(7)                                  The Borough of
Manhattan, The City of New York is hereby designated as a Place of Payment for
the Securities of such series.  The place
where the principal of and premium, if any, and interest on the Securities of
such series shall be payable, where Securities of such series may be
surrendered for the registration of transfer or exchange, and where notices or
demands to or upon the Company in respect of the Securities of such series and
the Indenture may be served shall be the office or agency maintained by the
Company for such purpose in the Borough of Manhattan, The City of New York,
which shall initially be the office of the Trustee in the Borough of Manhattan,
The City of New York, which on the date hereof is located at The Bank of New
York Trust Company, N.A., Attention: Corporate Trust Administration, 101
Barclay Street, New York, New York 10286.

(8)                                  The Securities of
such series are redeemable at any time, as a whole or from time to time in
part, at the option of the Company on the terms and subject to the conditions
set forth in the Indenture and in the form of Security of such series which
appears as Annex II to the Officers’ Certificate of which this Annex I
is a part.

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

(10)                            The Securities of such
series shall be issued in denominations of $1,000 and integral multiples of
$1,000.

(11)                            The Trustee shall be the
initial trustee, Security Registrar, transfer agent and Paying Agent for the
Securities of such series and the Trustee is the trustee, Security Registrar,
transfer agent and Paying Agent for all other series of Securities heretofore
issued under the Indenture.

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

(13)                            Payment of the principal of
and premium, if any, and interest on the Securities of such series shall be
made in Dollars and the Securities of such series shall be denominated in
Dollars.

(14)                            Other than amounts payable
upon redemption of the Securities of such series at the option of the Company,
the amount of payments of principal of and premium, if any, and interest on the
Securities of such series shall not be determined with reference to an index,
formula or other similar method.

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

(16)                            In addition to the
covenants of the Company set forth in the Indenture, the covenants set forth in
the form of Security of such series attached as Annex II to the Officers’
Certificate of which this Annex I is a part under the captions “Limitation
on Incurrence of Total Debt,” “Limitation on Incurrence of Secured Debt,” “Debt
Service Coverage” and “Maintenance of Total Unencumbered Assets” (collectively,
the “Additional Covenants”) shall be and hereby are added to the Indenture for
the benefit of the Securities of such series and the Holders of the Securities
of such series, and the Additional 

Covenants, together with the defined terms (the “Additional Definitions”)
set forth in such form of Security of such series under the caption “Certain
Definitions,” are hereby incorporated by reference in and made a part of this Annex I
and the Indenture as if set forth in full herein and therein; provided that the
Additional Definitions shall only be applicable with respect to the Securities
of such series and the Additional Definitions and the Additional Covenants set
forth in the Securities of such series shall only be effective for so long as
any of the Securities of such series is Outstanding; provided, further, that
except as set forth in (24) below, the definition of “Subsidiary” set forth in
the form of certificate evidencing the Securities of such series attached as Annex II
to the Officers’ Certificate of which this Annex I is a part shall only be
applicable with respect to the Additional Covenants and the Additional
Definitions set forth in the Securities of such series; and provided, further,
that the definition of “Business Day” set forth in the form of certificate
evidencing the Securities of such series attached as Annex II to the
Officers’ Certificate of which this Annex I is a part shall supersede,
insofar as relates to the Securities of such series, the definition of “Business
Day” appearing in the Indenture.

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

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

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

(20)                            The Securities of such
series will be authenticated and delivered as provided in Section 303 of
the Indenture.

(21)                            The Company shall not be
required to pay Additional Amounts with respect to the Securities of such
series as contemplated by Section 1010 of the Indenture.

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

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

(24)                            Insofar as Section 801
of the Indenture is applicable to the Securities of such series, the term “Subsidiary,”
as used in Section 801(2) of the Indenture, shall have the meaning set
forth in the form of Security of such series attached as Annex II to the
Officers’ Certificate of which this Annex I is a part (instead of the
meaning set forth in Section 101 of the Indenture), and the term “indebtedness,”
as used in Section 801(2) of the Indenture, shall be deemed to include,
without limitation, “Debt” and “Secured Debt” (as such terms are defined in the
form of Security of such series attached as Annex II to the Officers’
Certificate of which this Annex I is a part ).

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

(26)                            The Securities of such
series shall have such other terms and provisions as are set forth in the form
of certificate evidencing the Securities of such series attached as Annex II
to the Officers’ Certificate of which this Annex I is a part, all of which
terms and provisions are incorporated by reference in and made a part of this Annex I
and the Indenture as if set forth in full herein and therein.

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

(28)                            Payments of principal of
and premium, if any, and interest on Global Securities of such series will be
made by the Company by wire transfer of immediately available funds to an
account maintained by the payee located in the United States.  In the event that any Securities of such
series are issued in the form of Certificated Notes (as defined in the form of
Security of such series which appears as Annex II to the Officers’
Certificate of which this Annex I is a part) payments of principal of and
premium, if any, and interest on such Certificated Notes shall be made in the
manner set forth in the form of Security of such series which appears as Annex II
to the Officers’ Certificate of which this Annex I is a part and in the
Indenture.

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