<SEC-DOCUMENT>0000726728-17-000042.txt : 20170217
<SEC-HEADER>0000726728-17-000042.hdr.sgml : 20170217
<ACCEPTANCE-DATETIME>20170217164905
ACCESSION NUMBER:		0000726728-17-000042
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20170214
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20170217
DATE AS OF CHANGE:		20170217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REALTY INCOME CORP
		CENTRAL INDEX KEY:			0000726728
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330580106
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13374
		FILM NUMBER:		17622031

	BUSINESS ADDRESS:	
		STREET 1:		11995 EL CAMINO REAL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92130
		BUSINESS PHONE:		8582845000

	MAIL ADDRESS:	
		STREET 1:		11995 EL CAMINO REAL
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92130
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k2017planupdates.htm
<DESCRIPTION>2017PLANUPDATES
<TEXT>

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<p align=center style="margin:0in;margin-bottom:.0001pt;margin-top:.5in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">United States</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Securities and Exchange Commission<br>
</font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Washington, D.C. 20549&nbsp;</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Form 8-K</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Current Report</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Pursuant to
Section 13 or 15(d) of the<br>
Securities Exchange Act of 1934 </font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Date of report
(Date of earliest event reported):</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;"> February 14, 2017</font></b></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">REALTY INCOME CORPORATION <br>
</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Exact name of registrant as specified in its charter) </font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:503.950012pt;">
 <tr>
  <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">Maryland</font></b></p>
  </td>
 <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">1-13374</font></b></p>
  </td>
 <td valign=top width=34% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">33-0580106</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(State or Other
  Jurisdiction of Incorporation or Organization)</font></p>
  </td>
 <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(Commission File
  Number)</font></p>
  </td>
 <td valign=top width=34% style="background:white;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(IRS Employer
  Identification No.)</font></p>
  </td>
 </tr>
</table>

</div>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">11995 El Camino
Real, San Diego, California 92130<br>
</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Address of principal executive offices)</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(858) 284-5000<br>
</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Registrant's telephone number, including area code) </font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">N/A<br>
</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(former name or former address, if changed since last report) </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the registrant under any of the following provisions:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>




<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td valign=top width=17% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Item 5.02</font></b></p>
  </td>
 <td valign=top width=83% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Departure of Directors or Certain Officers; Election
  of Directors; Appointment of Certain Officers; Compensatory Arrangements of
  Certain Officers.</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Compensation
Committee (the &#8220;Committee&#8221;) of the Board of Directors of Realty Income
Corporation (the &#8220;Company&#8221;) recently engaged in a review of its incentive
compensation program with the assistance of its independent compensation
consultant, FPL Associates.&#160; On February 14, 2017, the Committee approved a 2017
bonus program (the &#8220;2017 Bonus Program&#8221;) and 2017 long term incentive program
(the &#8220;2017 LTIP&#8221;) applicable to the Company&#8217;s named executive officers (the
&#8220;executives&#8221;).&#160; In connection with the approval of these programs, the Company and
John Case, the Company&#8217;s Chief Executive Officer, entered into an amendment to
Mr. Case&#8217;s employment agreement with the Company. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Bonus Program</font></u></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The 2017 Bonus
Program is intended to tie the Company&#8217;s executives&#8217; annual incentive awards
closely to the Company&#8217;s financial performance. &#160;Each executive is eligible to
participate in the 2017 Bonus Program.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Under the 2017 Bonus
Program, the executives will be eligible to earn annual cash incentive awards based
on the Company&#8217;s achievement in 2017 of performance goals relating to (i) adjusted
FFO per share; (ii) portfolio occupancy; and (iii) fixed charge coverage ratio,
as well as based on the achievement of goals related to the executive&#8217;s
individual performance.&#160; In determining each executive&#8217;s actual annual
incentive award under the 2017 Bonus Program, the goals will be weighted as
follows:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:100.0%;">
 <tr style="height:17.1pt;">
  <td width=54% style="border:solid windowtext 1.0pt;height:17.1pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Criteria</font></b></p>
  </td>
 <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:17.1pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Weighting</font></b></p>
  </td>
 </tr>
<tr style="height:17.5pt;">
  <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.5pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Adjusted FFO per share</font></p>
  </td>
 <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.5pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">40%</font></p>
  </td>
 </tr>
<tr style="height:17.95pt;">
  <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Fixed charge coverage ratio</font></p>
  </td>
 <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">20%</font></p>
  </td>
 </tr>
<tr style="height:17.95pt;">
  <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Portfolio occupancy</font></p>
  </td>
 <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">10%</font></p>
  </td>
 </tr>
<tr style="height:20.65pt;">
  <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:20.65pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Individual</font></p>
  </td>
 <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:20.65pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">30%</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, the
Committee approved the target bonus opportunity under the 2017 Bonus Program for
each executive, as set forth below, with the actual bonus ranging from 0% to
approximately 200% of the target bonus. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;">
 <tr>
  <td valign=top style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Target Bonus</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
  Case</font></p>
  </td>
 <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$1,600,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
  Roy</font></p>
  </td>
 <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$825,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
  Meurer</font></p>
  </td>
 <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$593,750</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
  Pfeiffer</font></p>
  </td>
 <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$450,000</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Annual incentive
awards under the 2017 Bonus Program will be payable in cash.&#160; Each executive
must be employed by the Company through the date of payment in order to be
eligible to receive an annual incentive award under the program, except as may
otherwise be provided in a written agreement between the executive and the
Company.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Long Term Incentive
Program</font></u></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">The 2017 LTIP is intended to
align the interests of management with those of stockholders and to link
executive compensation to the Company&#8217;s long-term performance.&#160; &#160;The 2017 LTIP
consists of awards of Performance Shares and time-vesting restricted stock (or
restricted stock units (&#8220;RSUs&#8221;)) to the executives.&#160;&#160; &#160;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;text-decoration:none;">&nbsp;</font></i></b></p>


<a name="_bclFooter2"></a><DIV>

 <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font></p>


<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>


</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_3"></a><a name="_bclPageBorder3"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Performance
Shares</font></i></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">General</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">.&#160; The
Committee approved the grant to each executive of Performance Share awards in
tandem with dividend equivalent rights.&#160; Pursuant to the Performance Share
awards, each participant is eligible to vest in and receive a number of shares
of the Company&#8217;s common stock ranging from 0% to approximately 200% of the
target number of Performance Shares granted and set forth in the table below
(for each executive, the &#8220;Target Performance Shares&#8221;), based on the attainment
of relative total shareholder return (&#8220;TSR&#8221;) goals, debt-to-EBITDA ratio and
dividend per share growth rate goals during the performance period running from
January 1, 2017 through December 31, 2019 (the &#8220;Performance Period&#8221;).&#160; The approximate
value of the Target Performance Shares granted to each executive is as follows:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<div align=center>

<table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;">
 <tr>
  <td valign=top style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Value of Target Number of </font></b></p>
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Performance Shares Granted</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
  Case</font></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$3,500,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
  Roy</font></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$1,652,778</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
  Meurer</font></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$918,750</font></p>
  </td>
 </tr>
<tr>
  <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
  Pfeiffer</font></p>
  </td>
 <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$661,111</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, each
Performance Share award entitles its holder to a cash payment equal to the
aggregate dividends that would have been paid on the total number of
Performance Shares that vest, had such shares been outstanding on the record
date(s) that occur over the period from January 1, 2017 through the date on
which the shares are issued, if any. Any right to dividends with respect to
Performance Shares that do not vest are forfeited.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Vesting and
Payment</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">.&#160; The number of Performance
Shares that vest is dependent on (i) the Company&#8217;s TSR achieved during the
Performance Period relative to the TSR achieved by the companies in the MSCI
REIT Index, (ii) the Company&#8217;s TSR achieved during the Performance Period relative
to the TSR achieved by the J.P. Morgan Net Lease companies, (iii) the Company&#8217;s
debt-to-EBITDA ratio achieved during the Performance Period and (iv) the
Company&#8217;s dividend per share growth rate achieved during the Performance Period
(each, a &#8220;Performance Objective&#8221;), as well as the satisfaction of continued employment
requirements.&#160; In determining the number of Performance Shares that performance-vest,
the Company&#8217;s relative TSR as compared to the MSCI REIT Index companies and the
J.P. Morgan Net Lease companies are weighted approximately 45% and 26%, respectively,
and the debt-to-EBITDA ratio Performance Objective and the dividend per share growth
rate Performance Objective are weighted approximately 13% and 16%, respectively.&#160;
Fifty percent (50%), one hundred percent (100%) and two hundred percent (200%)
of the Target Performance Shares associated with each Performance Objective will
be eligible to vest based on the achievement of minimum, target and maximum,
respectively, goals related to each Performance Objective.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Additionally, the
number of Performance Shares that performance-vest based on the achievement of
the performance goals will need to also satisfy the service-based vesting
condition as to 50% of such shares on January 1, 2020 and as to 50% of such
shares on January 1, 2021 in order to be vested in full, subject to the
executive&#8217;s continued employment. &#160;&#160;The Performance Share awards are subject to
accelerated vesting on substantially the same terms as apply to similar
Performance Share awards granted to executives of the Company under the LTIP
adopted by us in 2014, 2015 and 2016. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Time-Based Restricted
Shares or RSUs</font></i></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, as
part of the 2017 LTIP, the Committee expects to approve in 2018 grants to each
executive of restricted stock (or RSU) awards subject to service-based vesting
conditions in the dollar-denominated amounts set forth in the table below.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<div align=center>

&nbsp;</div>
<a name="_bclFooter3"></a><DIV>

 <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font></p>


<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>


</DIV>
</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<div align=center><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:280.149994pt;">
 <tr>
  <td valign=top width=36% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
  </td>
 <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">2017 Restricted Stock/RSU Awards</font></b></p>
  </td>
 </tr>
<tr>
  <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
  Case</font></p>
  </td>
 <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$1,000,000</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
  Roy</font></p>
  </td>
 <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$472,222</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
  Meurer</font></p>
  </td>
 <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$262,500</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
  Pfeiffer</font></p>
  </td>
 <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$188,889</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each such award
vests over a period of four years following the grant date, subject to
continued employment. The awards are subject to accelerated vesting on
substantially the same terms as set forth in the applicable previously-filed
form agreement.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Amendment to Case
Employment Agreement</font></u></i></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February 14,
2017, the Company and Mr. Case entered into an amendment (the &#8220;Amendment&#8221;) to Mr.
Case&#8217;s Amended and Restated Employment Agreement, dated September 3, 2013 (the
&#8220;Original Employment Agreement&#8221;).&#160; The Amendment provides that Mr. Case may
earn an annual cash performance bonus targeted at no less than 150% of Mr.
Case&#8217;s base salary, reduced from 200% under the Original Employment Agreement. &#160;In
addition, the Amendment removes the provision under the Original Employment
Agreement which provided that no less than 50% of the annual equity awards
granted to Mr. Case will be time-based awards.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td valign=top width=17% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Item 8.01</font></b></p>
  </td>
 <td valign=top width=83% style="padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Other Events.</font></b></p>
  <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></b></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February 14,
2017, the Board of Directors of the Company (the &#8220;Board&#8221;), approved the Second
Amendment to the Realty Income Corporation 2012 Incentive Award Plan (the
&#8220;Second Amendment&#8221;).</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Second
Amendment institutes minimum vesting provisions on options and stock
appreciation rights granted under the 2012 Incentive Award Plan. Pursuant to
the Second Amendment, such awards shall vest no earlier than the eighteen (18)
month anniversary of the date the award is granted, subject to a limited
basket of 5% of shares of the Company&#8217;s Common Stock authorized for grant under
Plan and the Plan administrator&#8217;s authority to accelerate the vesting of awards
in connection with death, disability, termination of service or the
consummation of a change in control.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The foregoing
description of the Second Amendment is not, and does not purport to be,
complete and is qualified in its entirety by reference to a copy of the Second
Amendment filed as Exhibit 10.1 hereto and incorporated herein by reference.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:24.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">Item
9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits.</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="width:100.0%;">
 <tr>
  <td valign=top width=8% style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Exhibit No.</font></b></p>
  </td>
 <td valign=top width=2% style="padding:0in 0in 1.5pt 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>
  </td>
 <td valign=top width=90% style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Description of Exhibit</font></b></p>
  </td>
 </tr>
<tr style="height:3.7pt;">
  <td valign=top width=8% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">10.1</font></p>
  </td>
 <td valign=top width=2% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 <td valign=top width=90% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Second
  Amendment to Realty Income Corporation 2012 Incentive Award Plan</font></p>
  </td>
 </tr>
<tr style="height:3.7pt;">
  <td valign=top width=8% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 <td valign=top width=2% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 <td valign=top width=90% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:3.7pt;">
  <td valign=top width=8% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 <td valign=top width=2% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 <td valign=top width=90% style="height:3.7pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>

<font face="times new roman" style="line-height:115%;">
</font>


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<p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>

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<p style="line-height:115%;margin:0in;margin-bottom:10.0pt;"><font style="line-height:115%;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">SIGNATURE</font></b></font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </font></p>

<div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:504.000000pt;">
 <tr>
  <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Dated: February 17, 2017</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td colspan=3 valign=top width=57% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">REALTY INCOME CORPORATION</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=5% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;"><br>
  By:</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=49% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;"><br>
  </font><u><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">/s/ MICHAEL R. PFEIFFER&#160;&#160;&#160;&#160;&#160;&#160; </font></u></p>
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=5% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=49% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Michael R. Pfeiffer</font></p>
  </td>
 </tr>
<tr>
  <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=5% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  </td>
 <td valign=top width=49% style="background:white;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive Vice President,
  General Counsel and Secretary</font></p>
  </td>
 </tr>
</table></div>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>




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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>exhibit10secondamendment.htm
<DESCRIPTION>SECONDAMENDMENT
<TEXT>

<HTML>
<HEAD>
   <TITLE>exhibit10secondamendment.htm - Generated by SEC Publisher for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<a name="page_1"></a><a name="_bclPageBorder1"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;text-transform:uppercase;">&nbsp;</font></p>

<p align=center style="line-height:11.0pt;margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></b></p>

<p align=center style="line-height:11.0pt;margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></b></p>

<p style="line-height:normal;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">SECOND
AMENDMENT TO</font></b></p>

<p style="line-height:normal;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">REALTY
INCOME CORPORATION</font></b></p>

<p style="line-height:normal;margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">2012
INCENTIVE AWARD PLAN</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; THIS
SECOND AMENDMENT TO THE REALTY INCOME CORPORATION 2012 INCENTIVE AWARD PLAN
(this &#8220;</font><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Second Amendment</font></u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#8221;) is made and adopted by the Board of Directors
(the &#8220;</font><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Board</font></u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#8221;) of Realty Income Corporation, a Maryland corporation (the
&#8220;</font><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Company</font></u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#8221;) as of February 14, 2017.&#160; Capitalized terms used but not
otherwise defined herein shall have the respective meanings ascribed to them in
the Plan (as defined below).</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">RECITALS</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS,
the Company maintains the Realty Income Corporation 2012 Incentive Award Plan
(the &#8220;</font><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Plan</font></u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#8221;);</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS,
pursuant to Section 14.1 of the Plan, the Plan may be wholly or partially
amended at any time or from time to time by the Board; and </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; WHEREAS,
the Company desires to amend the Plan as set forth herein. </font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; NOW,
THEREFORE, BE IT RESOLVED, that the Plan is hereby amended as set forth herein.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">AMENDMENT</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">1.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Section 11 of the Plan is hereby
amended to include a new Section 11.10 as follows:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#8220;11.10 </font><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Award
Vesting Limitations</font></u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">.&#160; Notwithstanding
any other provision of the Plan to the contrary, but subject to Section 14.2 of
the Plan, Options and Stock Appreciation Rights granted under the Plan shall
vest no earlier than the eighteen (18) month anniversary of the date the Award
is granted; provided, however, that, notwithstanding the foregoing, Options and
Stock Appreciation Rights that result in the issuance of an aggregate of up to
5% of the shares of Common Stock authorized for grant under Section 3.1(a) may
be granted to any one or more Eligible Individuals without respect to such
minimum vesting provisions. Nothing in this Section 11.10 shall preclude the
Administrator from taking action, in its sole discretion, to accelerate the
vesting of any Award in connection with or following a Holder&#8217;s death,
disability, [Termination of Service] or the consummation of a Change in
Control.&#8221;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:1.0in;margin-right:0in;margin-top:12.0pt;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">2.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">This Second Amendment shall be and
is hereby incorporated in and forms a part of the Plan.</font></p>

<p style="margin:0in;margin-bottom:12.0pt;margin-left:1.0in;margin-right:0in;margin-top:12.0pt;text-align:justify;text-indent:-.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">3.</font><font face="times new roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Except as expressly provided
herein, all terms and provisions of the Plan shall remain in full force and
effect.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>


</DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_2"></a><a name="_bclPageBorder2"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; I hereby certify that the foregoing Second
Amendment was duly adopted by the Board of Directors of Realty Income
Corporation on February 14, 2017.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-align:justify;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By:&#160;&#160;&#160;&#160;&#160;&#160; /s/
MICHAEL R. PFEIFFER</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:3.5in;"><u><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></u></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:3.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Michael
R. Pfeiffer</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:3.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">Executive
Vice President, </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:3.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">General
Counsel and Secretary</font></p>

<p style="line-height:11.0pt;margin:0in;margin-bottom:6.0pt;margin-left:45.0pt;margin-right:.25in;margin-top:6.0pt;text-align:justify;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="line-height:11.0pt;margin:0in;margin-bottom:6.0pt;margin-left:45.0pt;margin-right:.25in;margin-top:6.0pt;text-align:justify;text-indent:.5in;"><font face="Times New Roman" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>




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