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                                                                    Exhibit 10.3

                          FORM OF ADVISORY AGREEMENT

      THIS ADVISORY AGREEMENT, dated as of __________, 2001 is between CORPORATE
PROPERTY ASSOCIATES 15 INCORPORATED, a Maryland corporation (the "Company"), and
CAREY ASSET MANAGEMENT CORP., a Delaware corporation and wholly-owned subsidiary
of W. P. Carey & Co. LLC (the "Advisor").

                              W I T N E S S E T H:

      WHEREAS, the Company has filed with the Securities and Exchange Commission
a Registration Statement (No. 333-_______) on Form S-11 covering shares of its
common stock ("Shares"), par value $.001, to be offered to the public, and the
Company may subsequently issue securities other than such Shares ("Securities")
or otherwise raise additional capital;

      WHEREAS, the Company intends to qualify as a REIT (as defined below), and
to invest its funds in investments permitted by the terms of the Registration
Statement and Sections 856 through 860 of the Code (as defined below);

      WHEREAS, the Company desires to avail itself of the experience, sources of
information, advice and assistance of, and certain facilities available to, the
Advisor and to have the Advisor undertake the duties and responsibilities
hereinafter set forth, on behalf of, and subject to the supervision of the Board
of Directors of the Company, all as provided herein; and

      WHEREAS, the Advisor is willing to render such services, subject to the
supervision of the Board of Directors, on the terms and conditions hereinafter
set forth;

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows:

      1.    DEFINITIONS. As used in this Agreement, the following terms have the
definitions hereinafter indicated:

            Acquisition Expenses. Those expenses, including but not limited to
      legal fees and expenses, travel and communications expenses, costs of
      appraisals, nonrefundable option payments on Property not acquired,
      accounting fees and expenses, title insurance and miscellaneous expenses,
      related to selection and acquisition of Properties, whether or not
      acquired. Acquisition Expenses shall not include Acquisition Fees.

            Acquisition Fees. The total of all fees and commissions (including
      any interest thereon) paid by any party to any party in connection with
      the making or investing in mortgage loans or the purchase, development or
      construction of Properties by the Company. A Development Fee or a
      Construction Fee paid to a Person not affiliated with the Sponsor in
      connection with the actual development or construction of a project after
      acquisition of the Property by the Company shall not be deemed an
      Acquisition Fee. Included in the computation of such fees or commissions
      shall be any real estate commission, selection fee, development fee (other
      than as described above), construction fee (other than as described
      above), non-recurring management fee, mortgage placement fee, lease-up
      fee, transaction
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      structuring fee or any fee of a similar nature, however designated.
      Acquisition Fees include Subordinated Acquisition Fees. Acquisition Fees
      shall not include Acquisition Expenses.

            Adjusted Investor Capital. As of any date, the Initial Investor
      Capital for such date reduced by any distributions on or prior to such
      date deemed by the Board to be from Cash from Sales and Financings, but
      only to the extent such distributions exceed the amount necessary to
      satisfy any accrued but unpaid portion of the Preferred Return not
      satisfied by distributions of cash generated through operations through
      the date Cash from Sales or Financings are distributed by the Company.

            Advisor. Carey Asset Management Corp, a corporation organized under
      the laws of the State of Delaware and wholly-owned by W. P. Carey & Co.
      LLC.

            Affiliate. An Affiliate of another Person shall include any of the
      following: (i) any Person directly or indirectly owning, controlling, or
      holding, with power to vote ten percent or more of the outstanding voting
      securities of such other Person; (ii) any Person ten percent or more of
      whose outstanding voting securities are directly or indirectly owned,
      controlled, or held, with power to vote, by such other Person; (iii) any
      Person directly or indirectly controlling, controlled by, or under common
      control with such other Person; (iv) any executive officer, director,
      trustee or general partner of such other Person; or (iv) any legal entity
      for which such Person acts as an executive officer, director, trustee or
      general partner.

            Agreement. This Advisory Agreement.

            Appraised Value. Value according to an appraisal made by an
      Independent Appraiser.

            Articles of Incorporation. Articles of Incorporation of the Company
      under the General Corporation Law of Maryland, as amended from time to
      time, pursuant to which the Company is organized.

            Asset Management Fee. The Asset Management Fee as defined in Section
      9(a) hereof.

            Average Invested Assets. Except as otherwise set forth in the
      penultimate sentence in Section 9(a) and (b) hereof, for any period, the
      average of the aggregate book value of the assets of the Company invested,
      directly or indirectly, in Properties and in Loans secured by real estate,
      before reserves for depreciation or bad debts or other similar non-cash
      reserves, computed by taking the average of such values at the end of each
      month during such period. For the purpose of calculating the Asset
      Management Fee and the Performance Fee, Average Invested Assets shall be
      calculated in accordance with Section 9(a) and 9(b) hereof, respectively.

            Board or Board of Directors. The Board of Directors of the Company.

            Bylaws. The bylaws of the Company.


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            Cash from Financings. Net cash proceeds realized by the Company from
      the financing of Properties or the refinancing of any Company
      indebtedness.

            Cash from Sales. Net cash proceeds realized by the Company from the
      sale, exchange or other disposition of any of its assets after deduction
      of all expenses incurred in connection therewith. Cash from Sales shall
      not include Cash from Financings.

            Cash from Sales and Financings. The total sum of Cash from Sales and
      Cash from Financings.

            Cause. With respect to the termination of this Agreement, fraud,
      criminal conduct, willful misconduct or willful or negligent breach of
      fiduciary duty by the Advisor or a breach of this Agreement by the
      Advisor.

            Change of Control. A change of control of the Company of a nature
      that would be required to be reported in response to the disclosure
      requirements of Schedule 14A of Regulation 14A promulgated under the
      Securities Exchange Act of 1934, as amended (the "Exchange Act"), as
      enacted and in force on the date hereof, whether or not the Company is
      then subject to such reporting requirements; provided, however, that,
      without limitation, a Change of Control shall be deemed to have occurred
      if: (i) any "person" (within the meaning of Section 13(d) of the Exchange
      Act, as enacted and in force on the date hereof) is or becomes the
      "beneficial owner" (as that term is defined in Rule 13d-3, as enacted and
      in force on the date hereof, under the Exchange Act) of securities of the
      Company representing 8.5% or more of the combined voting power of the
      Company's securities then outstanding; (ii) there occurs a merger,
      consolidation or other reorganization of the Company which is not approved
      by the Board of Directors; (iii) there occurs a sale, exchange, transfer
      or other disposition of substantially all of the assets of the Company to
      another entity, which disposition is not approved by the Board of
      Directors; or (iv) there occurs a contested proxy solicitation of the
      Shareholders of the Company that results in the contesting party electing
      candidates to a majority of the Board of Directors' positions next up for
      election.

            Code. Internal Revenue Code of 1986, as amended.

            Company. Corporate Property Associates 15 Incorporated, a
      corporation organized under the laws of the State of Maryland.

            Competitive Real Estate Commission. The real estate or brokerage
      commission paid for the purchase or sale of a property that is reasonable,
      customary and competitive in light of the size, type and location of the
      property.

            Construction Fee. A fee or other remuneration for acting as general
      contractor and/or construction manager to construct improvements,
      supervise and coordinate projects or to provide major repairs or
      rehabilitation on a Property.

            Contract Purchase Price. The amount actually paid for or allocated
      (as of the date of purchase) to the purchase, development, construction or
      improvement of a Property, exclusive of Acquisition Fees and Acquisition
      Expenses.


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            Contract Sales Price. The total consideration received by the
      Company for the sale of a Property.

            Cumulative Return. For the period for which the calculation is being
      made, the percentage resulting from dividing (A) the total Dividends paid
      on each Dividend payment date during such period (not including Dividends
      paid out of Cash from Sales and Financings), by (B) the product of (i) the
      average Adjusted Investor Capital for such period (calculated on a daily
      basis), and (ii) the number of years (including fractions thereof) elapsed
      during such period.

            Development Fee. A fee for the packaging of a Property including
      negotiating and approving plans, and undertaking to assist in obtaining
      zoning and necessary variances and necessary financing for the specific
      Property, either initially or at a later date.

            Directors. The persons holding such office, as of any particular
      time, under the Articles of Incorporation, whether they be the directors
      named therein or additional or successor directors.

            Dividends. Dividends declared by the Board.

            Equity Interest. The stock of or other interests in, or warrants or
      other rights to purchase the stock of or other interests in, any entity
      that has borrowed money from the Company or that is a tenant of the
      Company or that is a parent or controlling Person of any such borrower or
      tenant.

            Final Closing Date. The last date on which purchasers of Shares
      offered pursuant to the Prospectus are issued such Shares.

            Good Reason. With respect to the termination of this Agreement, (i)
      any failure to obtain a satisfactory agreement from any successor to the
      Company to assume and agree to perform the Company's obligations under
      this Agreement; or (ii) any material breach of this Agreement of any
      nature whatsoever by the Company.

            Gross Offering Proceeds. The aggregate purchase price of Shares sold
      pursuant to the Offering.

            Independent Appraiser. A qualified appraiser of real estate as
      determined by the Board, who is not affiliated, directly or indirectly,
      with the Company, the Advisor or their respective Affiliates. Membership
      in a nationally recognized appraisal society such as the American
      Institute of Real Estate Appraisers or the Society of Real Estate
      Appraisers shall be conclusive evidence of such qualification.

            Independent Director. A Director of the Company who is not
      associated and has not been associated within the last two years, directly
      or indirectly, with the Sponsor or the Advisor. A Director shall be deemed
      to be associated with the Sponsor or the Advisor if he or she: (i) owns an
      interest in, is employed by, has any material business or professional
      relationship with, or is an officer or director of, the Sponsor, the
      Advisor, or any of their Affiliates, other than as a director or trustee
      or officer of not more than two other REITs


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      organized by the Sponsor or advised by the Advisor; or (ii) performs
      services, other than as a Director, for the Company. An indirect
      relationship shall include circumstances in which a Director's spouse,
      parents, children, siblings, mothers- or fathers-in-law, sons- or
      daughters-in-law, or brothers- or sisters-in-law is or has been associated
      with the Sponsor, the Advisor, any of their Affiliates or the Company.

            Individual. Any natural person and those organizations treated as
      natural persons in Section 542(a) of the Code.

            Initial Closing Date. The first date on which purchasers of Shares
      offered pursuant to the Prospectus are issued such Shares.

            Initial Investor Capital. The total amount of capital invested from
      time to time by Shareholders (computed at a rate of $10 per Share for
      every Share including those Shares for which reduced selling commissions
      were paid in connection with their purchase from the Company). Upon
      completion of the Offering, the Initial Investor Capital shall be equal to
      the Gross Offering Proceeds.

            Loan Refinancing Fee. The Loan Refinancing Fee as defined in Section
      9(e) hereof.

            Loans. The notes and other evidences of indebtedness or obligations
      acquired or entered into by the Company as lender which are secured or
      collateralized by personal property, or fee or leasehold interests in real
      estate or other assets, including but not limited to first or subordinate
      mortgage loans, construction loans, development loans, loans secured by
      capital stock or any other assets or form of equity interest and any other
      type of loan or financial arrangement, such as providing or arranging for
      letters of credit, providing guarantees of obligations to third parties,
      or providing commitments for loans. The term "Loans" shall not include
      leases which are not recognized as leases for Federal income tax reporting
      purposes.

            Monitoring Fee. The Monitoring Fee as defined in Section 9(k)
      hereof.

            Nasdaq. The national automated quotation system operated by the
      National Association of Securities Dealers, Inc.

            Net Income. For any period, the total revenues applicable to such
      period, less the total expenses applicable to such period excluding
      additions to reserves for depreciation, bad debts or other similar
      non-cash reserves; provided, however, Net Income for purposes of
      calculating total allowable Operating Expenses shall exclude the gain from
      the sale of the Company's assets.

            Offering. The offering of Shares pursuant to the Prospectus.

            Operating Expenses. All operating, general and administrative
      expenses paid or incurred by the Company, as determined under generally
      accepted accounting principles, except the following: (i) interest and
      discounts and other cost of borrowed money; (ii) taxes (including state
      and Federal income tax, property taxes and assessments, franchise taxes
      and taxes of any other nature); (iii) expenses of raising capital,
      including Organization and


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      Offering Expenses, printing, engraving, and other expenses, and taxes
      incurred in connection with the issuance, distribution, transfer,
      registration and stock exchange listing of the Company's Shares and
      Securities; (iv) expenses connected with the acquisition, disposition,
      ownership and operation of real estate interests, mortgage loans, or other
      property, including the costs of foreclosure, insurance premiums, legal
      services, brokerage and sales commissions, maintenance, repair and
      improvement of property; (v) the Acquisition Fee or Subordinated
      Disposition Fee payable to the Advisor or any other party; and (vi)
      non-cash items, such as depreciation, amortization, depletion, and
      additions to reserves for depreciation, amortization, depletion, losses
      and bad debts. Notwithstanding anything herein to the contrary, Operating
      Expenses shall include the Asset Management Fee, the Performance Fee and
      the Loan Refinancing Fee.

            Organization and Offering Expenses. Those expenses payable by the
      Company in connection with the formation, qualification and registration
      of the Company and in marketing and distributing Shares, including, but
      not limited to: (i) the preparing, printing, filing and delivery of the
      Registration Statement and the Prospectus (including any amendments
      thereof or supplements thereto) and the preparing and printing of
      contractual agreements between the Company and the Sales Agent and the
      Selected Dealers (including copies thereof); (ii) the preparing and
      printing of the Articles of Incorporation and Bylaws, solicitation
      material and related documents and the filing and/or recording of such
      documents necessary to comply with the laws of the State of Maryland for
      the formation of a corporation and thereafter for the continued good
      standing of a corporation; (iii) the qualification or registration of the
      Shares under state securities or "Blue Sky" laws; (iv) any escrow
      arrangements, including any compensation to an escrow agent; (v) the
      filing fees payable to the SEC and to the National Association of
      Securities Dealers, Inc.; (vi) reimbursement for the reasonable and
      identifiable out-of-pocket expenses of the Sales Agent and the Selected
      Dealers, including the cost of their counsel; (vii) the fees of the
      Company's counsel and independent public accountants; (viii) all
      advertising expenses incurred in connection with the Offering, including
      the cost of all sales literature and the costs related to investor and
      broker-dealer sales and information meetings and marketing incentive
      programs; and (ix) selling commissions, marketing fees, incentive fees and
      wholesaling fees and expenses incurred in connection with the sale of the
      Shares.

            Performance Fee. The Performance Fee as defined in Section 9(b).

            Person. An Individual, corporation, partnership, joint venture,
      association, company, trust, bank, or other entity, or government or any
      agency or political subdivision of a government.

            Preferred Return. A Cumulative Return of six percent computed from
      the Initial Closing Date through the date as of which such amount is being
      calculated.

            Property or Properties. The Company's partial or entire interest in
      real property (including leasehold interests) and personal or mixed
      property connected therewith.

            Property Management Fee. The Property Management Fee as defined in
      Section 9(f) hereof.


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            Prospectus. The final prospectus of the Company pursuant to which
      the Company will offer up to 50,000,000 Shares, as the same may at any
      time and from time to time be amended or supplemented after the effective
      date of the Registration Statement.

            Registration Statement. The Registration Statement on Form S-11 of
      which the Prospectus is a part.

            REIT. A real estate investment trust, as defined in Sections 856-860
      of the Code.

            Sales Agent. Carey Financial Corporation.

            Securities. Any stock, shares (other than currently outstanding
      Shares and subsequently issued shares of common stock of the Company),
      voting trust certificates, bonds, debentures, notes or other evidences of
      indebtedness, secured or unsecured, convertible, subordinated or otherwise
      or in general any instruments commonly known as "securities" or any
      certificate of interest, shares or participation in temporary or interim
      certificates for receipts (or, guarantees of, or warrants, options or
      rights to subscribe to, purchase or acquire any of the foregoing), which
      subsequently may be issued by the Company.

            Selected Dealer Fee. A due diligence and management fee payable to
      Selected Dealers by the Company (through the Sales Agent) of up to one
      percent of the price of each Share sold by those Selected Dealers to which
      the Sales Agent agrees to pay such due diligence and management fee.

            Selected Dealers. Broker-dealers who are members of the National
      Association of Securities Dealers, Inc. and who have executed an agreement
      with the Sales Agent in which the Selected Dealers agree to participate
      with the Sales Agent in the Offering.

            Shareholders. Those Persons who at any particular time are shown as
      holders of record of Shares on the books and records of the Company.

            Shares. All of the shares of common stock of the Company, $.001 par
      value, and all other shares of common stock of the Company issued in the
      Offering or any subsequent offering.

            Sponsor. W.P. Carey & Co. LLC and any other person directly or
      indirectly instrumental in organizing, wholly or in part, the Company or
      any person who will manage or participate in the management of the
      Company, and any Affiliate of any such person. Sponsor does not include a
      person whose only relationship to the Company is that of an independent
      property manager and whose only compensation is as such. Sponsor also does
      not include wholly independent third parties such as attorneys,
      accountants and underwriters whose only compensation is for professional
      services.

            Subordinated Acquisition Fee. The Subordinated Acquisition Fee as
      defined in Section 9(d).


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            Subordinated Disposition Fee. The Subordinated Disposition Fee as
      defined in Section 9(g) hereof.

            Subordinated Incentive Fee. The Subordinated Incentive Fee as
      defined in Section 9(h) hereof.

            Termination Date. The effective date of any termination of this
      Agreement.

            Termination Fee. An amount equal to 15% of the amount, if any, by
      which (1) the Appraised Value of the Properties on the Termination Date,
      less the amount of all indebtedness secured by such Properties, exceeds
      (2) the total of the Initial Investor Capital on the Final Closing Date
      plus an amount equal to the Preferred Return through the Termination Date
      reduced by the total Dividends paid by the Company from its inception
      through the Termination Date.

            Total Property Cost. With regard to any Property, an amount equal to
      the sum of the Contract Purchase Price of such Property plus the
      Acquisition Fees paid in connection with such Property.

            2%/25% Guidelines. The requirement that, in any 12-month period, the
      Operating Expenses not exceed the greater of two percent of the Company's
      Average Invested Assets during such 12-month period or 25% of the
      Company's Net Income over the same 12-month period.

            Underlying Real Property. Property serving as collateral for any
      Loan.

            Valuation. An estimate of value of the assets of the Company as
      determined by a Person approved by the Independent Directors, which Person
      shall be independent of the Company and the Advisor.

      2.    APPOINTMENT. The Company hereby appoints the Advisor to serve as its
advisor on the terms and conditions set forth in this Agreement, and the Advisor
hereby accepts such appointment.

      3.    DUTIES OF THE ADVISOR. The Advisor undertakes to use its best
efforts to present to the Company potential investment opportunities and to
provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from
time to time by the Directors. In performance of this undertaking, subject to
the supervision of the Directors and consistent with the provisions of the
Registration Statement, Articles of Incorporation and Bylaws of the Company, the
Advisor shall, either directly or by engaging an Affiliate:

            (a)   serve as the Company's investment and financial advisor and
provide research and economic and statistical data in connection with the
Company's assets and investment policies;

            (b)   provide the daily management of the Company and perform and
supervise the various administrative functions reasonably necessary for the
management of the Company;


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            (c)   investigate, select, and, on behalf of the Company, engage and
conduct business with such Persons as the Advisor deems necessary to the proper
performance of its obligations hereunder, including but not limited to
consultants, accountants, correspondents, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents,
banks, builders, developers, property owners, mortgagors, and any and all agents
for any of the foregoing, including Affiliates of the Advisor, and Persons
acting in any other capacity deemed by the Advisor necessary or desirable for
the performance of any of the foregoing services, including but not limited to
entering into contracts in the name of the Company with any of the foregoing;

            (d)   consult with the officers and Directors of the Company and
assist the Directors in the formulation and implementation of the Company's
financial policies, and, as necessary, furnish the Directors with advice and
recommendations with respect to the making of investments consistent with the
investment objectives and policies of the Company and in connection with any
borrowings proposed to be undertaken by the Company;

            (e)   subject to the provisions of Sections 3(g) and 4 hereof: (i)
locate, analyze and select potential investments in Property and Loans; (ii)
structure and negotiate the terms and conditions of transactions pursuant to
which investments in Properties and Loans will be made, purchased or acquired by
the Company; (iii) make investments in Property on behalf of the Company in
compliance with the investment objectives and policies of the Company; (iv)
arrange for financing, and refinancing and make other changes in the asset or
capital structure of, and dispose of, reinvest the proceeds from the sale of or
otherwise deal with the investments in Property and Loans; and (v) enter into
leases and service contracts for Properties and, to the extent necessary,
perform all other operational functions for the maintenance and administration
of such Properties;

            (f)   provide the Directors with periodic reports regarding
prospective investments in Properties and Loans;

            (g)   obtain the prior approval of the Directors (including a
majority of the Independent Directors) for any and all investments in Property
which do not meet all of the requirements set forth in Section 4(b) hereof;

            (h)   negotiate on behalf of the Company with banks or lenders for
loans to be made to the Company, and negotiate on behalf of the Company with
investment banking firms and broker-dealers or negotiate private sales of Shares
and Securities or obtain loans for the Company, but in no event in such a way so
that the Advisor shall be acting as broker-dealer or underwriter; and provided,
further, that any fees and costs payable to third parties incurred by the
Advisor in connection with the foregoing shall be the responsibility of the
Company;

            (i)   obtain reports (which may be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of investments or
contemplated investments of the Company in Property and/or Loans;

            (j)   obtain for, or provide to, the Company such services as may be
required in acquiring, managing and disposing of Company Property and/or Loans,
including, but not


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limited to: (i) the negotiation, making and servicing of Loans; (ii) the
disbursement and collection of Company monies; (iii) the payment of debts of and
fulfillment of the obligations of the Company; and (iv) the handling,
prosecuting and settling of any claims of or against the Company, including, but
not limited to, foreclosing and otherwise enforcing mortgages and other liens
securing the Loans;

            (k)   from time to time, or at any time reasonably requested by the
Directors, make reports to the Directors of its performance of services to the
Company under this Agreement;

            (l)   communicate on behalf of the Company with Shareholders as
required to satisfy the reporting and other requirements of any governmental
bodies or agencies to Shareholders and third parties and otherwise as requested
by the Company;

            (m)   provide or arrange for administrative services and items,
legal and other services, office space, office furnishings, personnel and other
overhead items necessary and incidental to the Company's business and
operations;

            (n)   provide the Company with such accounting data and any other
information so requested concerning the investment activities of the Company as
shall be required to prepare and to file all periodic financial reports and
returns required to be filed with the Securities and Exchange Commission and any
other regulatory agency, including annual financial statements;

            (o)   maintain the books and records of the Company;

            (p)   supervise the performance of such ministerial and
administrative functions as may be necessary in connection with the daily
operations of the Properties and Loans;

            (q)   provide the Company with all necessary cash management
services;

            (r)   do all things necessary to assure its ability to render the
services described in this Agreement;

            (s)   perform such other services as may be required from time to
time for management and other activities relating to the assets of the Company
as the Advisor shall deem advisable under the particular circumstances;

            (t)   deliver to or maintain on behalf of the Company copies of all
appraisals obtained in connection with investments in Properties and Loans; and

            [(u)  NOTIFY THE BOARD OF ALL PROPOSED TRANSACTIONS BEFORE THEY ARE
COMPLETED.]

      4.    AUTHORITY OF ADVISOR.

            (a)   Pursuant to the terms of this Agreement (including the
restrictions included in this Section 4 and in Section 7 hereof), and subject to
the continuing and exclusive authority of the Directors over the management of
the Company, the Directors hereby delegate to the Advisor the authority to: (1)
locate, analyze and select investment opportunities; (2) structure the terms and
conditions of transactions pursuant to which investments will be made or
acquired for the


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Company; (3) acquire Property and make Loans in compliance with the investment
objectives and policies of the Company; (4) arrange for financing or
refinancing, or make changes in the asset or capital structure of, and dispose
of or otherwise deal with, Property and Loans; (5) enter into leases and service
contracts for Properties, and perform other property level operations; (6)
oversee non-affiliated property managers and other non-affiliated Persons who
perform services for the Company; and (7) undertake accounting and other
record-keeping functions at the Property level.

            (b)   Notwithstanding the foregoing, any investment in Property,
including any acquisition of any Property by the Company (as well as any
financing acquired by the Company in connection with such acquisition), will
require the prior approval of the Directors unless, prior to completion of any
such transaction, the Advisor provides the Company with:

                  (i)   an appraisal for the Property indicating that the Total
      Property Cost of the Property does not exceed the Appraised Value of the
      Property; and

                  (ii)  a representation from the Advisor that the Property, in
      conjunction with the Company's other investments and proposed investments,
      at the time the Company is committed to purchase the Property, is
      reasonably expected to fulfill the Company's investment objectives and
      policies as established by the Directors and then in effect.

            (c)   If a transaction requires approval by the Independent
Directors, the Advisor will deliver to the Independent Directors all documents
required by them to properly evaluate the proposed investment in such Property
or such Loan.

      Notwithstanding the foregoing, the prior approval of the Directors,
including a majority of the Independent Directors, will be required for
transactions involving: (a) investments in Properties in respect of which all of
the requirements specified in Section 4(b) hereof have not be satisfied; (b)
investments in Properties made through joint venture arrangements with
Affiliates of the Advisor; (c) investments in Properties which are not
contemplated by the terms of the Prospectus; (d) transactions that present
issues which involve conflicts of interest for the Advisor (other than conflicts
involving the payment of fees or the reimbursement of expenses); and (e) the
lease of assets to the Sponsor, any Director or the Advisor.

      The Directors may, at any time upon the giving of notice to the Advisor,
modify or revoke the authority set forth in this Section 4. If and to the extent
the Directors so modify or revoke the authority contained herein, the Advisor
shall henceforth submit to the Directors for prior approval such proposed
transactions involving investments in Property as thereafter require prior
approval, provided however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to investment
transactions to which the Advisor has committed the Company prior to the date of
receipt by the Advisor of such notification.

      5.    BANK ACCOUNTS. The Advisor may establish and maintain one or more
bank accounts in its own name for the account of the Company or in the name of
the Company and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company,
provided that no funds shall be commingled


                                      -11-
<PAGE>   12
with the funds of the Advisor; and the Advisor shall from time to time render
appropriate accountings of such collections and payments to the Directors and to
the auditors of the Company.

      6.    RECORDS; ACCESS. The Advisor shall maintain appropriate records of
all its activities hereunder and make such records available for inspection by
the Directors and by counsel, auditors and authorized agents of the Company, at
any time or from time to time during normal business hours. The Advisor shall at
all reasonable times have access to the books and records of the Company.

      7.    LIMITATIONS ON ACTIVITIES. Anything else in this Agreement to the
contrary notwithstanding, the Advisor shall refrain from taking any action
which, in its sole judgment made in good faith, would adversely affect the
status of the Company as a REIT, subject the Company to regulation under the
Investment Company Act of 1940, would violate any law, rule, regulation or
statement of policy of any governmental body or agency having jurisdiction over
the Company, its Shares or its Securities, or otherwise not be permitted by the
Articles of Incorporation or Bylaws, except if such action shall be ordered by
the Directors, in which case the Advisor shall notify promptly the Directors of
the Advisor's judgment of the potential impact of such action and shall refrain
from taking such action until it receives further clarification or instructions
from the Directors. In such event the Advisor shall have no liability for acting
in accordance with the specific instructions of the Directors so given.
Notwithstanding the foregoing, the Advisor, its partners and employees, and
partners, stockholders, directors and officers of the Advisor's partners shall
not be liable to the Company, or to the Directors or Shareholders for any act or
omission by the Advisor, its partners or employees, or partners, stockholders,
directors or officers of the Advisor's partners except as provided in Sections
20 and 22 hereof.

      8.    RELATIONSHIP WITH DIRECTORS. Partners and employees of the Advisor
or partners in the Advisor or any corporate parents of a partner, or directors,
officers or stockholders of any partner or corporate parent of a partner may
serve as a Director and as officers of the Company, except that no partner in or
employee of the Advisor or its Affiliates who also is a Director or officer of
the Company shall receive any compensation from the Company for serving as a
Director or officer other than for reasonable reimbursement for travel and
related expenses incurred in attending meetings of the Directors.

      9.    FEES.

            (a)   ASSET MANAGEMENT FEE. The Company shall pay to the Advisor as
compensation for the advisory services rendered to the Company hereunder an
amount equal to one half of one percent per annum of the Average Invested Assets
of the Company (the "Asset Management Fee") calculated as set forth below. The
Asset Management Fee will be calculated monthly, beginning with the month in
which the Company first makes an investment in Properties or Loans, on the basis
of one-twelfth of one half of one percent of the Average Invested Assets for the
preceding month, computed as a daily average. The Asset Management Fee
calculated with respect to each month shall be payable monthly on the last day
of such month, or the first business day following the last day of such month.
If at the end of any fiscal quarter, the Company's Operating Expenses exceed the
2%/25% Guidelines over the immediately preceding 12 months, payment of the Asset
Management Fee will be withheld to


                                      -12-
<PAGE>   13
the extent necessary to cause the Company to satisfy the 2%/25% Guidelines. Any
portion of the Asset Management Fee not paid due to the Company's failure to
satisfy the 2%/25% Guidelines shall be paid at the end of the next fiscal
quarter to the extent such payment would not cause the Company to fail to
satisfy the 2%/25% Guidelines if such payment were to be included in the
Company's Operating Expenses for the 12 months preceding such payment. For
purposes of determining the amount of the Asset Management Fee, the Average
Invested Assets will be, in any particular month, (i) for all months during the
period from inception of the Company through December 31, 2004, the average of
the aggregate book value of the assets of the Company invested, directly or
indirectly, in equity interests, in Properties and in Loans secured by real
estate, before reserves for depreciation or bad debts or other similar non-cash
reserves, all as shown on the books of the Company on each day of such month and
(ii) for all months beginning after December 31, 2004, the estimated value of
all of the Properties determined in accordance with the most recently conducted
Valuation, plus the principal balance of all Loans. Any part of the Asset
Management Fee that has been subordinated pursuant to this subsection (a) shall
not be deemed earned until such time as payable hereunder.

            (b)   PERFORMANCE FEE. In addition to the Asset Management Fee
described in Section 9(a) above, the Company shall also pay to the Advisor as
compensation for the advisory services rendered to the Company hereunder an
amount equal to one half of one percent per annum of the Average Invested Assets
of the Company (the "Performance Fee") calculated as set forth below. The
Performance Fee will be calculated monthly, beginning with the month in which
the Company first makes an investment in Properties or Loans, on the basis of
one-twelfth of one half of one percent of the Average Invested Assets during the
previous month, computed as a daily average. The Performance Fee calculated with
respect to each month shall be payable on a quarterly basis on the last day of
the first month of the immediately following fiscal quarter. Payment of this fee
for any quarter will be subordinated to the preferred return of six percent. Any
portion of the Performance Fee not paid due to the Company's failure to pay the
Preferred Return shall be paid by the Company, to the extent it is not
restricted by the 2%/25% Guidelines as described below, at the end of the next
fiscal quarter through which the Company has paid the Preferred Return. If at
the end of any fiscal quarter, the Company's Operating Expenses exceed the
2%/25% Guidelines over the immediately preceding 12 months, payment of the
Performance Fee will be withheld to the extent necessary to cause the Company to
satisfy the 2%/25% Guidelines. Any portion of the Performance Fee not paid due
to the Company's failure to satisfy the 2%/25% Guidelines shall be paid at the
end of the next fiscal quarter to the extent such payment would not cause the
Company to fail to satisfy the 2%/25% Guidelines if such payment were to be
included in the Company's Operating Expenses for the 12 months preceding such
payment. For purposes of determining the amount of the Performance Fee, the
Average Invested Assets will be, in any particular month, (i) for all months
during the period from inception of the Company through December 31, 2004, the
average of the aggregate book value of the assets of the Company invested,
directly or indirectly, in equity interests, in Properties and in Loans secured
by real estate, before reserves for depreciation or bad debts or other similar
non-cash reserves, all as shown on the books of the Company on each day of such
month and (ii) for all months beginning after December 31, 2004, the estimated
value of all of the Company's Properties determined in accordance with the most
recently conducted Valuation, plus the principal balance of all Loans. Any part
of the Performance Fee that has been subordinated pursuant to this subsection
(b) shall not be deemed earned until such time as payable hereunder.


                                      -13-
<PAGE>   14

            (c)   ACQUISITION FEE. The Advisor may receive as compensation for
services rendered in connection with the investigation, selection and
acquisition (by purchase, investment or exchange) of Property an Acquisition Fee
payable by the seller of such Property or the Company. The total Acquisition
Fees (not including Subordinated Acquisition Fees) payable to the Advisor and
its Affiliates plus Acquisition Fees (not including Subordinated Acquisition
Fees) payable by the Company to any other party may not exceed two-and-a-half
percent of the aggregate Total Property Cost of all Properties purchased by the
Company with proceeds from the Offering (calculated after all such proceeds are
invested) unless a majority of the Directors (including a majority of the
Independent Directors) not otherwise interested in any transaction approve the
excess as being commercially competitive, fair and reasonable to the Company.
The total amount of Acquisition Fees (including Subordinated Acquisition Fees)
and Acquisition Expenses paid by the Company may not exceed six percent of the
aggregate Contract Purchase Price of all Properties purchased by the Company
unless a majority of the Board (including a majority of the Independent
Directors) not otherwise interested in any transaction approves fees in excess
of this limit as being commercially competitive, fair and reasonable to the
Company.


            (d)   SUBORDINATED ACQUISITION FEE. In addition to the Acquisition
Fee described in Section 9(c) above, the Advisor may receive as additional
compensation for services rendered in connection with the investigation,
selection and acquisition (by purchase, investment or exchange) of a Property a
Subordinated Acquisition Fee payable by the seller of such Property or the
Company. The total Subordinated Acquisition Fees payable to the Advisor and its
Affiliates plus Subordinated Acquisition Fees payable by the Company to any
other party may not exceed two percent of the aggregate Total Property Cost of
all Properties purchased by the Company with proceeds from the Offering
(calculated after all such proceeds are invested) unless a majority of the
Directors (including a majority of the Independent Directors) not otherwise
interested in any transaction approve the excess as being commercially
competitive, fair and reasonable to the Company. The unpaid portion of the
Subordinated Acquisition Fee with respect to any Property shall bear interest at
the rate of six percent per annum from the date of acquisition of such Property
until such portion is paid. Subject to the following sentence, the Subordinated
Acquisition Fee with respect to any Property shall be payable in equal annual
installments on January 1 of each of the four calendar years following the first
anniversary of the date such Property was purchased. Accrued interest or all
unpaid Subordinated Acquisition Fees shall also be payable on such dates. The
portion of the Subordinated Acquisitions Fees, and accrued interest thereon,
otherwise payable for any year on January 1 of the following year shall be
payable only if the Shareholders have received a Preferred Return. Any portion
of the Subordinated Acquisitions Fees, and accrued interest thereon, not paid
due to the Company's failure to pay the Preferred Return for the most recently
completed fiscal year shall be paid by the Company on January 1 following the
fiscal year through which the Company has paid the Preferred Return. In the
event that the Shares are listed for trading on a national securities exchange
or are included for quotation on Nasdaq, all Subordinated Acquisition Fees, and
accrued interest thereon, shall be due and payable on the date of such listing
or inclusion.

            (e)   LOAN REFINANCING FEE. The Company shall pay to the Advisor for
all qualifying loan refinancings of Properties a Loan Refinancing Fee in the
amount of one percent of the principal amount of any loan secured by a Property.
Any Loan Refinancing Fee shall be due and payable upon the funding of the
related mortgage loan or as soon thereafter as is


                                      -14-
<PAGE>   15

reasonably practicable. A refinancing will qualify for a Loan Refinancing Fee
only if: the terms of the new loan represent an improvement over the terms of
the refinanced loan, the new loan materially increases the total debt secured by
a particular Property or the maturity date of the refinanced loan (which must
have a term of five years or more) is less than one year from the date of the
refinancing.


            (f)   PROPERTY MANAGEMENT FEE. The Advisor may cause the Company to
pay Property Management Fees for property management services rendered by the
Advisor or its Affiliates in connection with Properties acquired directly or
through foreclosure. The Advisor or an Affiliate will provide property
management services only if a Property becomes vacant or requires more active
management than contemplated at the time such Property is acquired. In either
event, the Company, by approval of the Directors (including a majority of the
Independent Directors), may engage the Advisor or an Affiliate, subject to such
Advisor's or such Affiliate's qualifying as an "independent contractor" pursuant
to Section 856(d)(3) of the Code, to provide property management services. If
such services are rendered by the Advisor or an Affiliate, the maximum Property
Management Fees which may be paid to the Advisor or an Affiliate will be six
percent of gross revenues from commercial Properties and five percent of gross
revenues from residential Properties, plus reimbursed expenses, paid monthly,
where such entity performs property management and leasing, re-leasing and
leasing related services, or three percent of the gross revenues of the Property
if only property management services are performed by such entity. Property
Management Fees payable to the Advisor or an Affiliate for an industrial or
commercial Property leased on a long-term (defined as at least ten years,
excluding renewals) triple net basis, may not exceed one percent of the gross
revenues from such Property, except for a one-time initial leasing fee equal to
three percent of total base rents payable for the first five years of the lease,
payable in five equal annual installments. Such fees to the Advisor or its
Affiliate cannot exceed the usual and customary amounts charged for similar
services in the same geographic area.


            (g)   SUBORDINATED DISPOSITION FEE. If the Advisor or an Affiliate
provides a substantial amount of the services (as determined by a majority of
the Independent Directors) in the sale of a Property, the Advisor or an
Affiliate shall receive a Subordinated Disposition Fee equal to the lesser of:
(i) 50% of the Competitive Real Estate Commission and (ii) three percent of the
Contract Sales Price of such Property. The Subordinated Disposition Fee will be
paid only if Shareholders have received a return of 100% of Initial Investor
Capital (through liquidity or distributions) plus an annual Cumulative Return of
six percent from the date shares were purchased from the Company through the
date payment is made. Once Shareholders have been provided with liquidity the
Advisor will be paid any Subordinated Disposition Fee it has earned and does
earn if the return requirements are satisfied. For these purposes Shareholder
will be deemed to have been provided liquidity if the Shares are listed on a
national security exchange or over-the-counter market, included for quotation on
Nasdaq, if shares can be redeemed through the CPA(R):15 redemption plan on a
quarterly basis without delay or some other liquidity terms has been provided
which enables Shareholders to receive cash or marketable securities for their
Shares no less frequently than quarterly. The return requirement will be deemed
satisfied if the total distributions paid by CPA(R):15 satisfy the six percent
annual Cumulative Return requirement and the market value of CPA(R):15 equals or
exceeds 100% of the capital raised by CPA(R):15 (less any amounts distributed
from the sale of refinancing of any property). The market value will be
calculated on the basis of the average market value of the Shares over the 30
trading days beginning 180 days after the Shares are first listed on a stock
exchange if the Shares are listed or included for quotation. If liquidity is
provided through the redemption plan, the value of CPA(R):15 will be the
redemption price, net of any surrender fee, multiplied by the total number of
outstanding Shares. A similar measurement will be used for other forms of
liquidity. To the extent that Subordinated Disposition Fees are not paid by the
Company on a current basis due to the foregoing limitation, the unpaid fees will
be accrued and paid at such time as the limitation has been satisfied. The
Subordinated Disposition Fee may be paid in addition to real estate commissions
paid to non-Affiliates, provided that the total real estate commissions paid to
all Persons by the Company shall not exceed an amount equal to the lesser of:
(i) six percent of the Contract Sales Price of a Property or (ii) the
Competitive Real Estate Commission. In the event this Agreement is terminated
prior to such time as the Shareholders have received a return of 100% of Initial
Investor Capital plus an amount sufficient to pay a Cumulative Return of six
percent from the date shares were purchased from the Company through the date of
termination of this Agreement, an appraisal of the Properties then owned by the
Company shall be made and the Subordinated Disposition Fee



                                      -15-
<PAGE>   16
on Properties previously sold will be deemed earned if the Appraised Value of
the Properties then owned by the Company plus return to Shareholders received
prior to the date of termination of this Agreement is equal to 100% of Initial
Investor Capital (through liquidity or distributions) plus an amount sufficient
to pay a Cumulative Return of six percent from the date shares were purchased
from the Company through the date of termination of this Agreement. In the event
the Company's Shares are listed on a national securities exchange or included
for quotation on Nasdaq and, at the time of such listing, the Advisor has
accrued a Subordinated Disposition Fee which has not been paid, for purposes of
determining whether the subordination conditions have been satisfied,
Shareholders will be deemed to have received a Dividend in an amount equal to
the product of the total number of outstanding Shares and the average of the
closing prices (or average bid and asked quotes) of the Shares over a period,
beginning 180 days after listing of the Shares, of 30 days during which the
Shares are traded.

            (h)   SUBORDINATED INCENTIVE FEE. The Subordinated Incentive Fee
shall be payable to the Advisor in an amount equal to 15% of Cash from Sales and
Financings distributed to the Shareholders after the Shareholders have received
a return of 100% of Initial Investor Capital (through liquidity or
distributions) plus an annual Cumulative Return of six percent from the date
shares were purchased from the Company through the date of payment. Once
Shareholders have been provided with liquidity the Advisor will be paid any
Subordinated Incentive Fee and any Subordinated Disposition Fee it has earned
and does earn if the return requirements are satisfied. For these purposes
Shareholder will be deemed to have been provided liquidity if the Shares are
listed on a national security exchange or over-the-counter market, included for
quotation on Nasdaq, if shares can be redeemed through the CPA(R):15 redemption
plan on a quarterly basis without delay or some other liquidity terms has been
provided which enables Shareholders to receive cash or marketable securities for
their Shares no less frequently than quarterly. The return requirement will be
deemed satisfied if the total distributions paid by CPA(R):15 satisfy the six
percent annual Cumulative Return requirement and the market value of CPA(R):15
equals or exceeds 100% of the capital raised by CPA(R):15 (less any amounts
distributed from the sale of refinancing of any property). The market value will
be calculated on the basis of the average market value of the Shares over the 30
trading days beginning 180 days after the Shares are first listed on a stock
exchange if the Shares are listed or included for quotation. If liquidity is
provided through the redemption plan, the value of CPA(R):15 will be the
redemption price, net of any surrender fee, multiplied by the total number of
outstanding Shares. A similar measurement will be used for other forms of
liquidity. The Company shall have the option to pay such fee in the form of
cash, a promissory note or any combination thereof. The promissory note shall be
fully amortizing over five years, provide for quarterly payments and bear
interest at the prime rate announced from time to time in The Wall Street
Journal.


            (i)   LOANS FROM AFFILIATES. If any loans are made to the Company by
the Advisor or an Affiliate of the Advisor, the maximum amount of interest that
may be charged by such Affiliate shall be the lesser of (i) one percent above
the prime rate of interest publish in The Wall Street Journal and (ii) the rate
that would be charged to the Company by unrelated lending institutions on
comparable loans for the same purpose in the locality of the Property. The terms
of any such loans shall be no less favorable than the terms available between
non-Affiliated Persons for similar commercial loans.


                                      -16-
<PAGE>   17
            (j)   CHANGES TO FEE STRUCTURE. In the event the Shares are listed
on a national securities exchange or are included for quotation on Nasdaq, the
Company and the Advisor shall negotiate in good faith to establish a fee
structure appropriate for a entity with a perpetual life. A majority of the
Independent Directors must approve the new fee structure negotiated with the
Advisor. In negotiating a new fee structure, the Independent Directors shall
consider all of the factors they deem relevant, including but not limited to:
(a) the size of the Advisory Fee in relation to the size, composition and
profitability of the Company's portfolio; (b) the success of the Advisor in
generating opportunities that meet the investment objectives of the Company; (c)
the rates charged to other REITs and to investors other than REITs by Advisors
performing similar services; (d) additional revenues realized by the Advisor and
its Affiliates through their relationship with the Company, including loan
administration, underwriting or broker commissions, servicing, engineering,
inspection and other fees, whether paid by the Company or by others with whom
the Company does business; (e) the quality and extent of service and advice
furnished by the Advisor; (f) the performance of the investment portfolio of the
Company, including income, conversion or appreciation of capital, frequency of
problem investments and competence in dealing with distress situations; and (g)
the quality of the portfolio of the Company in relationship to the investments
generated by the Advisor for its own account. The new fee structure can be no
more favorable to the Advisor than the current fee structure.


            (k)   PAYMENT. Compensation payable to the Advisor pursuant to this
Section 9 shall be paid in cash; provided, however, that the Asset Management
Fees, Performance Fee, and Proxy Management Fee payable pursuant to Section
9(a)(b), and (f) may be paid, at the option of the Advisor, in
the form of: (i) cash, (ii) common stock of the Company, or (iii) a combination
of cash and common stock. The Advisor shall notify the Company in writing of the
form in which the fee shall be paid. Such notice shall be provided no later than
January 15 of each year. If no such notice is provided, the fee shall be paid in
cash. For purposes of the payment of compensation to the Advisor in the form of
stock, the value of each share of common stock shall be: (i) the Net Asset Value
per Share as determined by the most recent appraisal of the Company's assets
performed as of the end of the immediately preceding year by an Independent
Appraiser, or (ii) if an appraisal has not yet been performed, $10 per share.
The Net Asset Value determined on the basis of such appraisal may be adjusted on
a quarterly basis by the Board of Directors of the Company to account for
significant capital transactions. Fees paid in the form of stock shall be paid
pursuant to the terms of the form of the Restricted Stock Agreement attached
hereto as Exhibit A or such other terms as the Advisor and the Company may from
time to time agree.


      10.   EXPENSES.  In addition to the compensation paid to the Advisor
pursuant to Section 9 hereof, the Company shall pay directly or reimburse the
Advisor for the following expenses:

            (i)   the Company's Organizational and Offering Expenses; provided
      however, that within 60 days after the end of the month in which the
      Offering terminates, the Advisor shall reimburse the Company for any
      Organizational and Offering Expense reimbursements received by the Advisor
      pursuant to this Section 10 to the extent that such reimbursements, when
      added to the balance of the Organizational and Offering Expenses
      (excluding selling commissions, and fees paid and expenses reimbursed to
      the Selected Dealers) paid directly by the Company, exceed four percent of
      the Gross Offering Proceeds; provided further, however, that


                                      -17-
<PAGE>   18
      the Advisor shall be responsible for the payment of all Organizational and
      Offering Expenses (excluding such commissions and such fees and expense
      reimbursements) in excess of four percent of the Gross Offering Proceeds;

            (ii)  Acquisition Expenses incurred in connection with the initial
      investment of the funds of the Company;

            (iii) expenses other than Acquisition Expenses incurred in
      connection with the investment of the funds of the Company;

            (iv)  interest and other costs for borrowed money, including
      discounts, points and other similar fees;

            (v)   taxes and assessments on income or Property and taxes as an
      expense of doing business;

            (vi)  costs associated with insurance required in connection with
      the business of the Company or by the Directors;

            (vii) expenses of managing and operating Properties owned by the
      Company, whether payable to an Affiliate of the Company or a
      non-affiliated Person;

            (viii) fees and expenses of legal counsel for the Company;

            (ix)  fees and expense of non-affiliated auditors and accountants
      for the Company;

            (x)   all expenses in connection with payments to the Directors and
      meetings of the Directors and Shareholders;

            (xi)  expenses associated with listing the Shares and Securities on
      a securities exchange or Nasdaq if requested by the Directors or with the
      issuance and distribution of Shares and Securities, such as selling
      commissions and fees, taxes, legal and accounting fees, listing and
      registration fees, and other Organization and Offering Expenses;

            (xii) expenses connected with payments of Dividends in cash or
      otherwise made or caused to be made by the Directors to the Shareholders;

            (xiii) expenses of organizing, revising, amending, converting,
      modifying, or terminating the Company or the Articles of Incorporation;

            (xiv) expenses of maintaining communications with Shareholders,
      including the cost of preparation, printing and mailing annual reports and
      other Shareholder reports, proxy statements and other reports required by
      governmental entities;


                                      -18-
<PAGE>   19
            (xv)  expenses related to the Properties and Loans and other fees
      relating to making investments including personnel and other costs
      incurred in Property or Loan transactions where a fee is not payable to
      the Advisor; and

            (xvi) all other expenses the Advisor incurs in connection with
      providing services to the Company including reimbursement to the Advisor
      or its Affiliates for the cost of rent, goods, materials and personnel
      incurred by them based upon the compensation of the Persons involved and
      an appropriate share of overhead allocable to those Persons.

      No reimbursement shall be made for the cost of personnel to the extent
that such personnel are used in transactions for which the Advisor receives a
separate fee.

      Expenses incurred by the Advisor on behalf of the Company and payable
pursuant to this Section 10 shall be reimbursed quarterly to the Advisor within
60 days after the end of each quarter. The Advisor shall prepare a statement
documenting the expenses of the Company during each quarter, and shall deliver
such statement to the Company within 45 days after the end of each quarter.

      11.   OTHER SERVICES. Should the Directors request that the Advisor or any
partner or employee thereof render services for the Company other than set forth
in Section 3 hereof, such services shall be separately compensated and shall not
be deemed to be services pursuant to the terms of this Agreement.

      12.   FIDELITY BOND. The Advisor shall maintain a fidelity bond for the
benefit of the Company which bond shall insure the Company from losses of up to
[$5,000,000] and shall be of the type customarily purchased by entities
performing services similar to those provided to the Company by the Advisor.

      13.   REFUND BY ADVISOR. Within 60 days after the end of any fiscal
quarter of the Company which begins following the date the Company first
commences operations, if Operating Expenses of the Company during the fiscal
year, ending at the end of such quarter exceed the greater of (a) two percent of
the Average Invested Assets or (b) 25% of the Net Income of the Company during
that fiscal year and a majority of the Independent Directors find this excess
amount justified based on such unusual and non-recurring factors which they deem
sufficient, the Advisor may be reimbursed in future years for the full amount of
such excess expenses, or any portion thereof, but only to the extent such
reimbursement would not cause the Company's Operating Expenses to exceed the
2%/25% Guidelines in any such year. In no event shall the Operating Expenses
paid by the Company in any twelve month period ending at the end of a fiscal
quarter exceed the 2%/25% Guidelines. All figures used in the foregoing
computation shall be determined in accordance with generally accepted accounting
principles applied on a consistent basis. If the Advisor receives an incentive
fee for the sale of Property, Net Income, for purposes of calculating the
Operating Expenses, shall exclude the gain from the sale of such Property.

      14.   OTHER ACTIVITIES OF THE ADVISOR. Nothing herein contained shall
prevent the Advisor from engaging in other activities, including without
limitation the rendering of advice to other investors (including other REITs)
and the management of other programs advised,


                                      -19-
<PAGE>   20
sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, employee,
partner or shareholder of the Advisor or its Affiliates to engage in any other
business or to render services of any kind to any other partnership,
corporation, firm, individual, trust or association. The Advisor may, with
respect to any investment in which the Company is a participant, also render
advice and service to each and every other participant therein. The Advisor
shall report to the Directors the existence of any condition or circumstance,
existing or anticipated, of which it has knowledge, which creates or could
create a conflict of interest between the Advisor's obligations to the Company
and its obligations to or its interest in any other partnership, corporation,
firm, individual, trust or association. The Advisor or its Affiliates shall
promptly disclose to the Directors knowledge of such condition or circumstance.
If the Sponsor, Advisor, Director or Affiliates thereof have sponsored other
investment programs with similar investment objectives which have investment
funds available at the same time as the Company, it shall be the duty of the
Directors (including the Independent Directors) to adopt the method set forth in
the Registration Statement or another reasonable method by which properties are
to be allocated to the competing investment entities and to use their best
efforts to apply such method fairly to the Company.

      The Advisor shall be required to use its best efforts to present a
continuing and suitable investment program to the Company which is consistent
with the investment policies and objectives of the Company, but neither the
Advisor nor any Affiliate of the Advisor shall be obligated generally to present
any particular investment opportunity to the Company even if the opportunity is
of character which, if presented to the Company, could be taken by the Company.

      In the event that the Advisor or its Affiliates is presented with a
potential investment which might be made by the Company and by another
investment entity which the Advisor or its Affiliates advises or manages, the
Advisor shall consider the investment portfolio of each entity, cash flow of
each entity, the effect of the acquisition on the diversification of each
entity's portfolio, rental payments during any renewal period, the estimated
income tax effects of the purchase on each entity, the policies of each entity
relating to leverage, the funds of each entity available for investment, the
amount of equity required to make the investment and the length of time such
funds have been available for investment. To the extent that a Property might be
suitable for the Company and for another investment entity which is advised or
managed by the Advisor, the Advisor shall give priority to the investment
entity, including the Company, which has uninvested funds for the longest period
of time. The Advisor may consider the Property for private placement only if
such Property is deemed inappropriate for any investment entity which is advised
or managed by the Advisor, including the Company.

      15.   RELATIONSHIP OF ADVISOR AND COMPANY. The Company and the Advisor
agree that they have not created and do not intend to create by this Agreement a
joint venture or partnership relationship between them and nothing in this
Agreement shall be construed to make them partners or joint venturers or impose
any liability as partners or joint venturers on either of them.

      16.   TERM; TERMINATION OF AGREEMENT. This Agreement shall continue in
force until December 31, 2002 and thereafter shall be automatically renewed from
year to year, unless either party shall give notice in writing of non-renewal to
the other party not less than 60 days before the end of any such year.


                                      -20-
<PAGE>   21
      17.   TERMINATION BY COMPANY. At the sole option of a majority of the
Independent Directors, this Agreement may be terminated immediately by written
notice of termination from the Company to the Advisor if, in addition to the
occurrence of events which would constitute Cause, any of the following events
occur:

      (a)   If the Advisor shall violate any material provision of this
      Agreement, and after written notice of such violation, shall not cure such
      default within 30 days or have begun action within 30 days to cure the
      default which shall be completed with reasonable diligence; or

      (b)   If the Advisor shall be adjudged bankrupt or insolvent by a court of
      competent jurisdiction, or an order shall be made by a court of competent
      jurisdiction for the appointment of a receiver, liquidator, or trustee of
      the Advisor, for all or substantially all of its property by reason of the
      foregoing, or if a court of competent jurisdiction approves any petition
      filed against the Advisor for reorganization, and such adjudication or
      order shall remain in force or unstayed for a period of 30 days; or

      (c)   If the Advisor shall institute proceedings for voluntary bankruptcy
      or shall file a petition seeking reorganization under the federal
      bankruptcy laws, or for relief under any law for relief of debtors, or
      shall consent to the appointment of a receiver for itself or for all or
      substantially all of its property, or shall make a general assignment for
      the benefit of its creditors, or shall admit in writing its inability to
      pay its debts, generally, as they become due.

      Any notice of termination under Section 16 or 17 shall be effective on the
date specified in such notice, which may be the day on which such notice is
given or any date thereafter. The Advisor agrees that if any of the events
specified in Section 17 (b) or (c) shall occur, it shall give written notice
thereof to the Directors within 15 days after the occurrence of such event.

      18.   TERMINATION BY EITHER PARTY. This Agreement may be terminated
immediately without penalty by the Advisor by written notice of termination to
the Company upon the occurrence of events which would constitute Good Reason or
by the Company without cause or penalty by action of the Directors, the
Independent Directors or by action of a majority of the Shareholders, in either
case upon 60 days' written notice.

      19.   ASSIGNMENT PROHIBITION. This Agreement may not be assigned by the
Advisor without the approval of a majority of the Directors (including a
majority of the Independent Directors); provided, however, that such approval
shall not be required in the case of an assignment to a corporation,
partnership, association, trust or organization which may take over the assets
and carry on the affairs of the Advisor, provided: (i) that at the time of such
assignment, such successor organization shall be owned substantially by the then
partners of the Advisor or their Affiliates and only if such entity has a net
worth of at least $5,000,000, and (ii) that a general partner of the Advisor
shall deliver to the Directors a statement in writing indicating the ownership
structure and net worth of the successor organization and a certification from
the new Advisor as to its net worth. Such an assignment shall bind the assignees
hereunder in the same manner as the Advisor is bound by this Agreement. The
Advisor may assign any rights to receive fees or other payments under this
Agreement without obtaining the approval of


                                      -21-
<PAGE>   22
the Directors. This Agreement shall not be assigned by the Company without the
consent of the Advisor, except in the case of an assignment by the Company to a
corporation or other organization which is a successor to the Company, in which
case such successor organization shall be bound hereunder and by the terms of
said assignment in the same manner as the Company is bound by this Agreement.

      20.   PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

            (a)   After the Termination Date, the Advisor shall not be entitled
to compensation for further services hereunder except it shall be entitled to
receive from the Company within 30 days after the effective date of such
termination the following:

            (i)   all unpaid reimbursements of Organization and Offering
      Expenses and of Operating Expenses payable to the Advisor;

            (ii)  all earned but unpaid Asset Management Fees and Performance
      Fees payable to the Advisor prior to the termination of this Agreement;

            (iii) all earned but unpaid Subordinated Acquisition Fees and all
      unaccrued Subordinated Acquisition Fees, in each case payable to the
      Advisor relating to the acquisition of any Property prior to the
      termination of this Agreement;

           (iv)  all earned but unpaid Subordinated Disposition Fees payable to
      the Advisor relating to the sale of any Property prior to the termination
      of this Agreement;

            (v)   all earned but unpaid Loan Refinancing Fees payable to the
      Advisor relating to the financing or refinancing of any Property prior to
      the termination of this Agreement; and

            (vi)  all earned but unpaid Property Management Fees payable to the
      Advisor or its Affiliates relating to the management of any property prior
      to the termination of this Agreement.

      Notwithstanding the foregoing, in the event this Agreement is terminated
by the Company for Cause or by the Advisor for other than Good Reason, the
Advisor will not be entitled to receive the sums in subparagraphs 20(a)(i)-(vi),
above. All amounts payable to the Advisor in the event of a termination shall be
evidenced by a non-interest bearing promissory note (the "Note") having a
principal amount of the unpaid amount payable to the Advisor.

      (b)   If this Agreement is terminated by the Company for any reason other
than Cause, by either party in connection with a Change of Control, or by the
Advisor for Good Reason, the Advisor shall be entitled to payment of the
Termination Fee.

      (c)   The Termination Fee shall be paid in a manner determined by the
Directors, but in no event shall any portion of the Termination Fee remain
unpaid three years after the termination, non-renewal or substantial
modification of this Agreement, nor shall the


                                      -22-
<PAGE>   23
Termination Fee be paid in less than 12 equal quarterly installments, with
interest, on the unpaid balance at the prime rate of interest then in effect as
announced by The Bank of New York. Notwithstanding the preceding sentence, any
amounts which may be deemed payable at the date the obligation to pay the
Termination Fee is incurred (i) shall be an amount which provides compensation
to the Advisor only for that portion of the holding period for the respective
Properties during which the Advisor provided services to the Company, (ii) shall
not be due and payable until the Property to which such fees relate is sold or
refinanced, and (iii) shall not bear interest until the Property to which such
fees relate is sold or refinanced. A portion of the Termination Fee shall be
paid as each Property owned by the Company on the Termination Date is sold. The
portion of the Termination Fee payable upon each such sale shall be equal to (i)
the Termination Fee multiplied by (ii) the percentage calculated by dividing the
Appraised Value (at the Termination Date) of the Property sold by the Company
divided by the total Appraised Value (at the Termination Date) of all Properties
owned by the Company on the Termination Date.

      The Note for amounts payable as described above shall mature upon the
liquidation of the Company (or ten years from date of issuance whichever is
earlier) and shall be payable at any time prior to maturity. The compensation
payable under this Subsection shall be paid or delivered to the Advisor within
30 days after funds shall become available to the Company for the making of such
payments.

      (d)   Notwithstanding the foregoing, the Advisor shall not be entitled to
payment of the Termination Fee in the event this Agreement is terminated because
of failure of the Company and the Advisor to establish, pursuant to Section 9(j)
hereof, a fee structure appropriate for an entity with a perpetual life in the
event the Shares are listed on a national securities exchange or are included
for quotation on Nasdaq.

      (e)   The Advisor shall promptly upon termination:

            (i)   pay over to the Company all money collected and held for the
      account of the Company pursuant to this Agreement, after deducting any
      accrued compensation and reimbursement for its expenses to which it is
      then entitled;

            (ii)  deliver to the Directors a full accounting, including a
      statement showing all payments collected by it and a statement of all
      money held by it, covering the period following the date of the last
      accounting furnished to the Directors;

            (iii) deliver to the Directors all assets, including Properties and
      Loans, and documents of the Company then in the custody of the Advisor;
      and

            (iv)  cooperate with the Company to provide an orderly management
      transition.

      21.   INDEMNIFICATION BY THE COMPANY. The Company shall indemnify and hold
harmless the Advisor and its Affiliates, including their respective officers,
directors, partners and employees, from all liability, claims, damages or losses
arising in the performance of their duties hereunder, and related expenses,
including reasonable attorneys' fees, to the extent such liability, claims,
damages or losses and related expenses are not fully reimbursed by insurance,
subject to


                                      -23-
<PAGE>   24
any limitations imposed by the laws of the State of Maryland, the Articles of
Incorporation or the Bylaws of the Company. Notwithstanding the foregoing, the
Advisor shall not be entitled to indemnification or be held harmless pursuant to
this Section 21 for any activity which the Advisor shall be required to
indemnify or hold harmless the Company pursuant to Section 22.

      22.   INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold
harmless the Company from liability, claims, damages, taxes or losses and
related expenses including attorneys' fees, to the extent that such liability,
claims, damages, taxes or losses and related expenses are not fully reimbursed
by insurance and are incurred by reason of the Advisor's bad faith, fraud,
willful misfeasance, misconduct, negligence or reckless disregard of its duties.

      23.   NOTICES. Any notice, report or other communication required or
permitted to be given hereunder shall be in writing unless some other method of
giving such notice, report or other communication is accepted by the party to
whom it is given, and shall be given by being delivered by hand or by overnight
mail or other overnight delivery service to the addresses set forth herein:

               To the Directors     Corporate Property Associates 15
               and to the Company:  Incorporated
                                    50 Rockefeller Plaza
                                    New York, NY  10020

               To the Advisor:      Carey Asset Management Corp.
                                    50 Rockefeller Plaza
                                    New York, NY  10020

      Either party may at any time give notice in writing to the other party of
a change in its address for the purposes of this Section 23.

      24.   MODIFICATION. This Agreement shall not be changed, modified,
terminated, or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or
assignees.

      25.   SEVERABILITY. The provisions of this Agreement are independent of
and severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part.

      26.   CONSTRUCTION. This Agreement shall be governed by, construed and
enforced in accordance with the laws of the State of New York.

      27.   ENTIRE AGREEMENT. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof
control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms hereof. This Agreement may not be modified or
amended other than by an agreement in writing.


                                      -24-
<PAGE>   25
      28.   INDULGENCES, NOT WAIVERS. Neither the failure nor any delay on the
part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver.

      29.   GENDER. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context requires.

      30.   TITLES NOT TO AFFECT INTERPRETATION. The titles of Sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof.

      31.   EXECUTION IN COUNTERPARTS. This Agreement may be executed in any
number of counterparts, each of which shall be deemed to be an original as
against any party whose signature appears thereon, and all of which shall
together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the
signatories.

      32.   NAME. W.P. Carey & Co. LLC has a proprietary interest in the name
"Corporate Property Associates" and "CPA.(R)" Accordingly, and in recognition of
this right, if at any time the Company ceases to retain Carey Asset Management
Corp., or an Affiliate thereof to perform the services of Advisor, the Directors
of the Company will, promptly after receipt of written request from Carey Asset
Management Corp., cease to conduct business under or use the name "Corporate
Property Associates" or "CPA(R)" or any diminutive thereof and the Company shall
use its best efforts to change the name of the Company to a name that does not
contain the name "Corporate Property Associates" or "CPA(R)" or any other word
or words that might, in the sole discretion of the Advisor, be susceptible of
indication of some form of relationship between the Company and the Advisor or
any Affiliate thereof. Consistent with the foregoing, it is specifically
recognized that the Advisor or one or more of its Affiliates has in the past and
may in the future organize, sponsor or otherwise permit to exist other
investment vehicles (including vehicles for investment in real estate) and
financial and service organizations having "Corporate Property Associates" or
"CPA(R)" as a part of their name, all without the need for any consent (and
without the right to object thereto) by the Company or its Directors.

      33.   INITIAL INVESTMENT. The Advisor has contributed to the Company
$200,000 in exchange for 20,000 Shares (the "Initial Investment"). The Advisor
or its Affiliates may not sell any of the Shares purchased with the Initial
Investment during the term of this Agreement. The restrictions included above
shall not continue to apply to any Shares other than the Share acquired through
the Initial Investment acquired by the Advisor or its Affiliates. The Advisor
shall not vote any Shares it now owns or hereafter acquires in any vote for the
election of


                                      -25-
<PAGE>   26
Directors or any vote regarding the approval or termination of any contract with
the Advisor or any of its Affiliates.

      IN WITNESS WHEREOF, the parties hereto have executed this Advisory
Agreement as of the day and year first above written.

                                    CORPORATE PROPERTY ASSOCIATES 15
                                     INCORPORATED


                                    By:_________________________________________
                                    Name:
                                    Title:


                                    CAREY ASSET MANAGEMENT CORP.

                                    By:_________________________________________
                                    Name:
                                    Title:


                                      -26-
<PAGE>   27
EXHIBIT A

RESTRICTED STOCK AGREEMENT

      This RESTRICTED STOCK AGREEMENT dated ________________, by and between
Corporate Property Associates 15 Incorporated ("CPA(R):15"), a Maryland
corporation and Carey Asset Management Corp., a Delaware corporation and
wholly-owned subsidiary of W.P. Carey & Co. LLC (the "Advisor").

WITNESSETH

      WHEREAS, CPA(R):15 and Advisor entered into an Advisory Agreement (the
"Advisory Agreement") pursuant to which Advisor provides various services to
CPA(R):15;

      WHEREAS, pursuant to the Advisory Agreement, CPA(R):15 is required to pay
certain fees to the Advisor and the Advisor may request that certain fees be
paid with common stock of the Company; and

      WHEREAS, the Advisor has requested that CPA(R):15 pay a portion of the
fees due to Advisor in the form of shares of common stock of CPA(R):15.

      NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements contained herein, the parties hereto agree as follows.

            1.    Payment of Fees with Stock.  CPA(R):15 hereby grants to
Advisor __________ shares of common stock of CPA(R):15 (the "Shares").

            2.    Restrictions. The Shares are subject to vesting over a
five-year period. The Shares shall vest ratably over a five-year period with 20%
of the Shares paid in each payment vesting on each of the first through fifth
anniversary of the date hereof. Prior to the vesting of the ownership of the
Shares in the Advisor, the Shares may not be transferred by the Advisor.

            3.    Immediate Vesting. Upon the expiration of the Advisory
Agreement for any reason other than a termination for Cause under paragraph 17
of the Advisory Agreement or upon a "Change of Control" of CPA(R):15 (as defined
below), all Shares granted to the Advisor hereunder shall vest immediately and
all restrictions shall lapse. For purposes of this Agreement, a "Change of
Control" of the Company shall be deemed to have occurred if there has been a


                                       A-1
<PAGE>   28
change in the ownership of the Company of a nature that would be required to be
reported in response to the disclosure requirements of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), as enacted and in force on the date hereof, whether or not
the Company is then subject to such reporting requirements; provided, however,
that, without limitation, a Change of Control shall be deemed to have occurred
if:

            (i) any "person," as such term is used in Sections 13(d) and 14(d)
of the Exchange Act (other than the Company, any of its subsidiaries, any
trustee, fiduciary or other person or entity holding securities under any
employee benefit plan of the Company or any of its subsidiaries), together with
all "affiliates" and "associates" (as such terms are defined in Rule 14b-2 under
the Exchange Act) of such person, shall become the "beneficial owner" (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 25% or more of either (A) the combined
voting power of the Company's then outstanding securities having the right to
vote in an election of the Company's Board of Directors ("Voting Securities") or
(B) the then outstanding common stock of the Company (in either such case other
than as a result of acquisition of securities directly from the Company);

            (ii) persons who, as of the date hereof, constitute the Company's
Board of Directors (the "Incumbent Directors") cease for any reason, including
without limitation, as a result of a tender offer, proxy contest, merger or
similar transaction, to constitute at least a majority of the Board of
Directors, provided that any person becoming a director of the Company
subsequent to the date hereof whose election or nomination for election was
approved by a vote of at least a majority of the Incumbent Directors shall, for
purposes of this Agreement, be considered an Incumbent Director; or

            (iii) the stockholders of the Company shall approve (A) any
consolidation or merger of the Company or any subsidiary where the stockholders
of the Company, immediately prior to the consolidation or merger, would not,
immediately after the consolidation or merger,


                                       A-2
<PAGE>   29
beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, shares representing in the aggregate 50% or more of the
voting equity of the entity issuing cash or securities in the consolidation or
merger (or of its ultimate parent entity, if any), (B) any sale, lease, exchange
or other transfer (in one transaction or a series of transactions contemplated
or arranged by any party as a single plan) of all or substantially all of the
assets of the Company or (C) any plan or proposal for the liquidation or
dissolution of the Company.

            Notwithstanding the foregoing, a "Change of Control" shall not be
deemed to have occurred for purposes of the foregoing clause (i) solely as the
result of an acquisition of securities by the Company which, by reducing the
number of Shares of Common Stock outstanding, increases (A) the proportionate
number of Shares beneficially owned by any person to 25% or more of the Shares
then outstanding, or (B) the proportionate voting power represented by the
Shares beneficially owned by any person to 25% or more of the combined voting
power of all then outstanding voting Securities; provided, however, that if any
person referred to in clause (A) or (B) of this sentence shall thereafter become
the beneficial owner of any additional Shares or other Voting Securities (other
than pursuant to a Share split, Share dividend, or similar transaction), then a
"Change of Control" shall be deemed to have occurred for purposes of the
foregoing clause (i).

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

                                       CORPORATE PROPERTY ASSOCIATES 15
                                       INCORPORATED


                                       By: ___________________________________


                                       CAREY ASSET MANAGEMENT CORP.


                                       By: ___________________________________


                                       A-3