REALTY INCOME CORP
EX-10.12
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<DESCRIPTION>EX-10.12
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.12</font></b></p>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FIRST AMENDMENT TO THE</font></b><br>
<b><font style="font-weight:bold;">2003
INCENTIVE AWARD PLAN</font></b><br>
<b><font style="font-weight:bold;">OF REALTY
INCOME CORPORATION</font></b></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This First
Amendment (&#147;Amendment&#148;) to The 2003 Incentive Award Plan of Realty Income
Corporation (the &#147;Plan&#148;) is made as of May 6, 2003 by Realty Income Corporation,
a Maryland corporation (the &#147;Company&#148;).</font></p>

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<h1 style="font-weight:bold;margin:0in 0in .0001pt;text-align:center;text-decoration:underline;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">W I T N E S S E TH</font></u></b></h1>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Board of
Directors approved the Plan on March 12, 2003 and the Stockholders have
approved the Plan on May 6, 2003; and</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Board of Directors of the Company has
determined that it is appropriate and in the best interests of the Company to
amend the Plan as set forth herein;</font></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW, THEREFORE, in consideration of the foregoing
recitals, the Plan is hereby amended as set forth herein:</font></p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#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; </font>Capitalized
terms used herein which are not otherwise defined herein but are defined in the
Plan shall have the meanings given to such terms in the Plan.</p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#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; </font>Section
5.1 of the Plan is hereby deleted in its entirety and restated in its entirety
to read as follows:</p>

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<h2 style="font-style:italic;font-weight:bold;margin:0in 0in .0001pt 1.0in;text-indent:.5in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:normal;font-weight:normal;">&#147;5.1.&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Option Price</u>.&#160; The price per share of the shares subject to
each Option granted to Employees and Consultants shall be set by the Committee;
<u>provided</u>, <u>however</u>, that such price shall be no less than the Fair
Market Value of a share of Common Stock on the date the Options is granted.&#160; In the case of Incentive Stock Options
granted to an individual then owning (within the meaning of Section 424(d) of
the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or any Subsidiary or parent corporation thereof (within
the meaning of Section 422 of the Code), such price shall not be less than 110%
of the Fair Market Value of a share of Common Stock on the date the Option is
granted (or the date the Option is modified, extended or renewed for purposes
of Section 424(h) of the Code).</font></i></b></h2>

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