##### 








---



##### 



TABLE OF CONTENTS
 PageARTICLE I. Definitions
    
    
    1SECTION 1.1. Defined Terms
    
    
    1SECTION 1.2. Classification of Loans and Borrowings
    
    
    24SECTION 1.3. Terms Generally
    
    
    24SECTION 1.4. Accounting Terms; GAAP
    
    
    24ARTICLE II. The Credits
    
    
    24SECTION 2.1. Commitments
    
    
    24SECTION 2.2. Loans and Borrowings
    
    
    25SECTION 2.3. Requests for Borrowings
    
    
    25SECTION 2.4. [Reserved]
    
    
    26SECTION 2.5. Extension of Maturity Date
    
    
    26SECTION 2.6. Letters of Credit
    
    
    26SECTION 2.7. Funding of Borrowings
    
    
    30SECTION 2.8. Interest Elections
    
    
    31SECTION 2.9. Termination and Reduction of Commitments
    
    
    32SECTION 2.10. Repayment of Loans; Evidence of Debt
    
    
    33SECTION 2.11. Prepayment of Loans
    
    
    33SECTION 2.12. Fees
    
    
    34SECTION 2.13. Interest
    
    
    35SECTION 2.14. Alternate Rate of Interest
    
    
    36SECTION 2.15. Increased Costs
    
    
    36SECTION 2.16. Break Funding Payments
    
    
    37SECTION 2.17. Taxes
    
    
    38SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
    
    
    39SECTION 2.19. Mitigation Obligations; Replacement of Lenders
    
    
    41SECTION 2.20. Increase in Commitment
    
    
    42SECTION 2.21. Funds Transfer Disbursements
    
    
    42ARTICLE III. Representations and Warranties
    
    
    44SECTION 3.1. Organization; Powers
    
    
    44SECTION 3.2. Authorization; Enforceability
    
    
    44SECTION 3.3. Governmental Approvals; No Conflicts
    
    
    44SECTION 3.4. Financial Condition; No Material Adverse Change
    
    
    45SECTION 3.5. Properties
    
    
    46SECTION 3.6. Litigation and Environmental Matters
    
    
    46SECTION 3.7. Compliance with Laws and Agreements
    
    
    46SECTION 3.8. Investment Company Status
    
    
    47SECTION 3.9. Taxes
    
    
    47SECTION 3.10. ERISA
    
    
    47SECTION 3.11. Disclosure
    
    
    47SECTION 3.12. Insurance
    
    
    47SECTION 3.13. [Reserved]
    
    
    47SECTION 3.14. SEC Reports
    
    
    47SECTION 3.15. Representations and Warranties in Loan Documents
    
    
    48
 -i-




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##### 



PageSECTION 3.16. Organizational Documents
    
    
    48SECTION 3.17. REIT Status
    
    
    48SECTION 3.18. OFAC
    
    
    48ARTICLE IV. Conditions
    
    
    48SECTION 4.1. Closing Date
    
    
    48SECTION 4.2. Each Credit Event
    
    
    50ARTICLE V. Affirmative Covenants
    
    
    51SECTION 5.1. Financial Statements and Other Information
    
    
    51SECTION 5.2. Notices of Material Events
    
    
    53SECTION 5.3. Existence; Conduct of Business
    
    
    54SECTION 5.4. Payment of Obligations
    
    
    55SECTION 5.5. Maintenance of Properties; Insurance
    
    
    55SECTION 5.6. Books and Records; Inspection Rights
    
    
    55SECTION 5.7. Compliance with Laws
    
    
    56SECTION 5.8. Use of Proceeds and Letters of Credit
    
    
    56SECTION 5.9. [Reserved]
    
    
    56SECTION 5.10. Solvency of Loan Parties
    
    
    56SECTION 5.11. Further Assurances
    
    
    56SECTION 5.12. Distributions in the Ordinary Course
    
    
    57SECTION 5.13. ERISA Compliance
    
    
    57SECTION 5.14. REIT Status
    
    
    57SECTION 5.15. New Guarantors
    
    
    57SECTION 5.16. Distributions of Income to Borrower
    
    
    58ARTICLE VI. Negative Covenants
    
    
    58SECTION 6.1. Indebtedness and Other Financial Covenants
    
    
    58SECTION 6.2. Liens
    
    
    60SECTION 6.3. Fundamental Changes
    
    
    60SECTION 6.4. Investments, Loans, Advances, Guarantees and Acquisitions
    
    
    60SECTION 6.5. Hedging Agreements
    
    
    62SECTION 6.6. ERISA
    
    
    62SECTION 6.7. Margin Regulations; Securities Laws
    
    
    63SECTION 6.8. Transactions with Affiliates
    
    
    63ARTICLE VII. Events of Default
    
    
    63SECTION 7.1. Events of Default
    
    
    63ARTICLE VIII. The Administrative Agent
    
    
    66SECTION 8.1. Appointment and Authorization
    
    
    66SECTION 8.2. Wells Fargo as Lender
    
    
    67SECTION 8.3. Approvals of Lenders
    
    
    67SECTION 8.4. Notice of Defaults
    
    
    67SECTION 8.5.
Administrative Agents Reliance, Etc.
    
    
    68SECTION 8.6. Indemnification of Administrative Agent
    
    
    68SECTION 8.7.
Lender Credit Decision, Etc.
    
    
    69SECTION 8.8. Successor Administrative Agent
    
    
    70SECTION 8.9. Titled Agents
    
    
    71ARTICLE IX. Miscellaneous
    
    
    71SECTION 9.1. Notices
    
    
    71SECTION 9.2. Waivers; Amendments
    
    
    72
 -ii-




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##### 



PageSECTION 9.3. Expenses; Indemnity; Damage Waiver
    
    
    72SECTION 9.4. Successors and Assigns
    
    
    74SECTION 9.5. Survival
    
    
    76SECTION 9.6. Counterparts; Integration; Effectiveness
    
    
    76SECTION 9.7. Severability
    
    
    77SECTION 9.8. Right of Setoff
    
    
    77SECTION 9.9. Governing Law; Jurisdiction; Consent to Service of Process
    
    
    77SECTION 9.10. WAIVER OF JURY TRIAL
    
    
    78SECTION 9.11. Headings
    
    
    78SECTION 9.12. Confidentiality
    
    
    78SECTION 9.13. Interest Rate Limitation
    
    
    79SECTION 9.14. [Reserved]
    
    
    79SECTION 9.15. Electronic Document Delivery
    
    
    79SECTION 9.16. USA Patriot Act
    
    
    80
 -iii-




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##### 



SCHEDULES
 Schedule 1
    
    CommitmentsSchedule 1.1(a)
    
    CPA REITsSchedule 1.1(b)
    
    Loan PartiesSchedule 3.2
    
    Ownership StructureSchedule 3.3
    
    ConsentsSchedule 3.4
    
    Existing IndebtednessSchedule 3.6
    
    Disclosed MattersSchedule 4.1(f)
    
    Transactions not in the Ordinary CourseEXHIBITS:Exhibit A
    
    Form of Assignment and AcceptanceExhibit B
    
    Form of Borrowing RequestExhibit C
    
    Form of GuarantyExhibit D
    
    Form of Interest Rate ElectionExhibit E
    
    Form of NoteExhibit F-1
    
    Form of Opinion of Reed Smith LLPExhibit F-2
    
    Form of Opinion of Local CounselExhibit G
    
    Financial Calculation Schedule Pursuant to Section 5.1Exhibit H
    
    Form of Intercompany NoteExhibit I
    
    Form of [Quarterly/Annual] Compliance Certificate to Accompany ReportsExhibit J
    
    Form of Transfer Authorizer Designation Form
 -iv-




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##### 



Agreement the  Borrower Administrative Agent Issuing Bank Syndication Agent Documentation Agent Arranger
    ARTICLE I.
 Definitions
 SECTION 1.1. Defined Terms .
 ABR
 Accession Agreement
 Adjusted EBITDA




---



##### 



Administrative Agent
 Administrative Details Form
 Affiliate
 Alternate Base Rate
 Alternate Merger
 Applicable Percentage
 Applicable Rate
 Leverage Ratio
    
    Eurodollar Spread
    
    ABR Spreadless than 55%
    
    
    1.35
    %
    
    
    0.0
    %55%-less than 60%
    
    
    1.45
    %
    
    
    0.0
    %60% or higher
    
    
    1.60
    %
    
    
    0.125
    %
  -2-




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##### 



Arranger
 Assignee
 Assignment and Acceptance Exhibit A
 Availability Period
 Average Unused Commitment Percentage
 Board
 Borrower
 Borrowing
 Borrowing Request Exhibit B
 Business Day provided
 Capital Lease Obligations
 -3-




---



##### 



Capital Lease
 Cash and Cash Equivalents provided
 Change in Control
 Change in Law
 Closing Date
 Code
 Combined Equity Value
 Commitment
 -4-




---



##### 



Schedule 1
 Consolidated Businesses
 Contingent Obligation
 -5-




---



##### 



Control
 CPA 12
 CPA REIT Schedule 1. 1(a) Schedule 1.1(a)
 Credit Event
 Default
 Defaulting Lender
 Disclosed Matters Schedule 3.6
 dollars $
 EBITDA
 Eligible Assignee
 -6-




---



##### 



Environmental Laws
 Environmental Liability
 ERISA
 ERISA Affiliate
 ERISA Event
 -7-




---



##### 



Eurodollar
 Event of Default
 Excluded Subsidiary
      Excluded Taxes
 -8-




---



##### 



Fair Market Value
 Federal Funds Effective Rate
 Financial Officer
 -9-




---



##### 



Financial Statements
 Fixed Charges
 Foreign Lender
 GAAP
 Governmental Authority
 Ground Lease
 Building ID
    
    Tenant
    
    Start Date
    
    Expiration Date
    
    LocationWA0031
    
    Del Monte Corporation
    
    5/1/1996
    
    4/30/2016
    
    Yakima, WATX0671
    
    McCoy Workplace Solutions, L.P.
    
    11/1/2001
    
    11/30/2011
    
    Houston, TXTN0081
    
    Federal Express Corporation
    
    2/1/2000
    
    1/31/2020
    
    Collierville, TN
 Guarantee guarantor
 -10-




---



##### 



primary obligor provided
 Guarantor
 Guaranty Exhibit C
 Hazardous Materials
 Hedging Agreement
 Improvements
 Indebtedness
 -11-




---



##### 



Indemnified Taxes
 Interest Election Request Exhibit D
 Interest Payment Date
 Interest Period provided
 -12-




---



##### 



Investment Grade Credit Rating
 Issuing Bank
 Joint Venture
 Joint Venture Holding
 LC Disbursement
 LC Exposure
 Lease
 Lender Affiliate
 Lenders Schedule 1
 Letter of Credit
 Leverage Ratio
 -13-




---



##### 



LIBO Rate
 Lien provided e.g.
 Loan Parties Schedule 1. 1(b)
 Loan Documents
 Loans
 Margin Stock
 Marketable Securities
 Material Adverse Effect
 -14-




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##### 



Material Indebtedness
 Maturity Date
 Merger
 Merger Agreement
 Merger Transactions
 Moodys
 Mortgage Asset
 Multiemployer Plan
 Net Asset Value
 Net Income (Loss)
 Net Offering Proceeds
 -15-




---



##### 



Nonrecourse Carveouts
 Nonrecourse Indebtedness provided, however provided, further
 Note Exhibit E Notes
 Obligations
 Officers Certificate
 Other Taxes
 -16-




---



##### 



PBGC
 Performance Fees
 Permitted Encumbrances
       provided
 Permitted Investments
   -17-




---



##### 



provided
   Permitted REIT Investments
 Person
 Plan
 Prime Rate
 Project
 -18-




---



##### 



Property
 Real Property Premises
 Register
 REIT et seq
 Related Parties
 Required Lenders provided
 -19-




---



##### 



Restricted Payment
 Revolving Credit Exposure
 Revolving Loan
 S&P
 Secured Indebtedness
 Solvent
      subsidiary parent
 Subsidiary
 Taxes
 -20-




---



##### 



Tenant Allowance
 TI Work
 Total Interest Expense
 Total Liabilities
 Total Outstanding Indebtedness
 -21-




---



##### 



Total Value
 Transactions
 Transfer Authorizer Designation Form Exhibit J
 Triple Net Lease provided Contractual Obligations provided
 -22-




---



##### 



Type
 Unconsolidated Entity
 Unsecured Indebtedness
 Unused Commitment
 Unused Commitment Fee Rate
 Unused Commitment FeeAverage Unused Commitment Percentage
    
    Rateless than or equal to 50%
    
    
    0.125
    %greater than 50%
    
    
    0.175
    %
 Wells Fargo
 wholly-owned Subsidiary
 Withdrawal Liability
 -23-




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##### 



WP Carey Joint Venture
 SECTION 1.2. Classification of Loans and Borrowings . e.g. e.g.
 SECTION 1.3. Terms Generally .
 SECTION 1.4. Accounting Terms; GAAP . provided
 ARTICLE II.
 The Credits
 SECTION 2.1. Commitments .
 -24-




---



##### 



SECTION 2.2. Loans and Borrowings . provided
 provided
 provided provided
  SECTION 2.3. Requests for Borrowings . provided Exhibit B
 -25-




---



##### 



SECTION 2.4. [Reserved] .
 SECTION 2.5. Extension of Maturity Date .
  SECTION 2.6. Letters of Credit . General provided
 -26-




---



##### 



Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions
 Expiration Date
 Participations
 -27-




---



##### 



Reimbursement provided mutatis mutandis
 Obligations Absolute
 -28-




---



##### 



provided
 Disbursement Procedures provided
 Interim Interest provided
 Replacement of the Issuing Bank
 -29-




---



##### 



Cash Collateralization provided
 SECTION 2.7. Funding of Borrowings . provided
 -30-




---



##### 



SECTION 2.8. Interest Elections .
    -31-




---



##### 



SECTION 2.9. Termination and Reduction of Commitments .
 provided
 provided
 -32-




---



##### 



SECTION 2.10. Repayment of Loans; Evidence of Debt .
   prima facie provided
  SECTION 2.11. Prepayment of Loans .
 provided
 -33-




---



##### 



Prepayment Date
  SECTION 2.12. Fees .
 Unused Commitment Fee
Amount
  -34-




---



##### 



provided
   SECTION 2.13. Interest .
   provided
 -35-




---



##### 



SECTION 2.14. Alternate Rate of Interest .
    SECTION 2.15. Increased Costs .
    -36-




---



##### 



provided provided further
 SECTION 2.16. Break Funding Payments .
 -37-




---



##### 



SECTION 2.17. Taxes . provided
     -38-




---



##### 



SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs .
  -39-




---



##### 



provided
   -40-




---



##### 



SECTION 2.19. Mitigation Obligations; Replacement of Lenders .
 provided
 -41-




---



##### 



SECTION 2.20. Increase in Commitment . Additional Commitment Notice Schedule 1
 Exhibit F-1 F-2
 SECTION 2.21. Funds Transfer Disbursements .
 -42-




---



##### 



Generally
 Funds Transfer
 Limitation of Liability
 -43-




---



##### 



ARTICLE III.
 Representations and Warranties
  SECTION 3.1. Organization; Powers .
 SECTION 3.2. Authorization; Enforceability .
 Schedule 3.2
 SECTION 3.3. Governmental Approvals; No Conflicts . Schedule
3.3
 -44-




---



##### 



SECTION 3.4. Financial Condition; No Material Adverse Change .
    -45-




---



##### 



Schedule 3.4 Schedule 3.4
  SECTION 3.5. Properties .
  SECTION 3.6. Litigation and Environmental Matters .
  SECTION 3.7. Compliance with Laws and Agreements .
 -46-




---



##### 



SECTION 3.8. Investment Company Status .
 SECTION 3.9. Taxes .
 SECTION 3.10. ERISA .
 SECTION 3.11. Disclosure . provided
 SECTION 3.12. Insurance .
 SECTION 3.13. [Reserved] .
 SECTION 3.14. SEC Reports . SEC Reports
 -47-




---



##### 



SECTION 3.15. Representations and Warranties in Loan Documents .
 SECTION 3.16. Organizational Documents .
 SECTION 3.17. REIT Status .
 SECTION 3.18. OFAC . http://www.treas.gov/offices/eotffc/ofac/sdn/index.html http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html
 ARTICLE IV.
 Conditions
 SECTION 4.1. Closing Date .
 -48-




---



##### 



Exhibit
F-1 Exhibit F-2
    Schedule 4.1(f)
  -49-




---



##### 



Schedule 3.3
        SECTION 4.2. Each Credit Event . Credit
Event
 -50-




---



##### 



ARTICLE V.
 Affirmative Covenants
  SECTION 5.1. Financial Statements and Other Information .
 Quarterly Reports
 Borrower Quarterly Financial Reports
 -51-




---



##### 



Quarterly Compliance Certificates Quarterly Compliance Certificates Exhibit I Exhibit G
 Annual Reports
 Borrower Financial Statements
 -52-




---



##### 



Annual Compliance Certificates Annual Compliance Certificate Compliance Certificates Exhibit I Exhibit G
 Tenant Bankruptcy Reports
   SECTION 5.2. Notices of Material Events .
 -53-




---



##### 



SECTION 5.3. Existence; Conduct of Business .
 -54-




---



##### 



provided
 SECTION 5.4. Payment of Obligations .
 SECTION 5.5. Maintenance of Properties; Insurance .
  SECTION 5.6. Books and Records; Inspection Rights .
 -55-




---



##### 



SECTION 5.7. Compliance with Laws .
 SECTION 5.8. Use of Proceeds and Letters of Credit .
          SECTION 5.9. [Reserved] .
 SECTION 5.10. Solvency of Loan Parties .
 SECTION 5.11. Further Assurances .
 -56-




---



##### 



SECTION 5.12. Distributions in the Ordinary Course .
 SECTION 5.13. ERISA Compliance .
 SECTION 5.14. REIT Status .
 SECTION 5.15. New Guarantors . Requirement to Become Guarantor
 Release of a Guarantor
 -57-




---



##### 



SECTION 5.16. Distributions of Income to Borrower .
 ARTICLE VI.
 Negative Covenants
  SECTION 6.1. Indebtedness and Other Financial Covenants
 Total Liabilities
 Minimum Combined Equity Value
 Minimum Consolidated Interest Coverage Ratio
 Minimum Yield on Debt
 Minimum Fixed Charge Coverage Ratio
 Maximum Dividend Payout Ratio
 -58-




---



##### 



Restricted Payment
 Other Indebtedness Intercompany Note Exhibit H
 Negative Pledge
 Pro Forma Calculations
 -59-




---



##### 



SECTION 6.2. Liens .
    SECTION 6.3. Fundamental Changes . provided
  SECTION 6.4. Investments, Loans, Advances, Guarantees and Acquisitions .
 -60-




---



##### 



(a)
    
    Permitted Investments;(b)
    
    investments in Real Property (except as otherwise limited in
this Section 6.4);(c)
    
    investments (including loans and advances) in or to the
Subsidiaries;(d)
    
    investments in Joint Ventures which are not Subsidiaries;
provided that the aggregate amount of investments in (i) WP Carey Joint
Ventures shall not exceed 35% of Total Value and (ii) other Joint Ventures
shall not exceed 5% of Total Value;(e)
    
    investments in Real Property located outside the United States;
provided that the aggregate amount of investments in Real Estate located
outside of the United States shall not exceed 15% of Total Value;(f)
    
    investments in notes secured by mortgages on any Real Property
of any Person;(g)
    
    investments in Real Property under construction; provided that
the aggregate amount of investments in Real Property under construction shall
not exceed 5% of Total Value;(h)
    
    investments in Real Property consisting of undeveloped land;
provided that the aggregate amount of investments in Real Property consisting
of undeveloped land shall not exceed 5% of Total Value;(i)
    
    investments in Permitted REIT Investments; provided that the
aggregate amount of investments in Permitted REIT Investments shall not exceed
$25,000,000 (valued at historical cost);(j)
    
    investments in Marketable Securities; provided that the
aggregate amount of investments in Marketable Securities shall not exceed
$25,000,000;(k)
    
    investments in securities of tenants under Leases, including
any capital stock, warrants, stock options or other equity securities of such
tenants and any underlying security thereof, acquired in connection with or
arising out of a leasing transaction with such tenant and any subsequent
exercise of such warrant or stock options and the ownership of such underlying
security thereof;(l)
    
    Guarantees by the Borrower of the Indebtedness or other
obligations of a wholly-owned Subsidiary or of a Joint Venture in which the
Borrower owns, directly or indirectly, a Joint Venture Holding, so long as the
 -61-




---



##### 



Indebtedness under such Guarantees is not otherwise prohibited by Section
6.1(g)(iii) or any other provisions of this Article VI (excluding this
Section 6.4); and(m)
    
    Guarantees by the Borrower or a wholly-owned Subsidiary of
obligations in respect of Nonrecourse Carveouts of a wholly-owned Subsidiary or
of a Joint Venture in which the Borrower owns, directly or indirectly, a Joint
Venture Holding.
  SECTION 6.5. Hedging Agreements .
 SECTION 6.6. ERISA .
       -62-




---



##### 



SECTION 6.7. Margin Regulations; Securities Laws .
 SECTION 6.8. Transactions with Affiliates . provided
 ARTICLE VII.
 Events of Default
 SECTION 7.1. Events of Default . Events of Default
    -63-




---



##### 



provided
   -64-




---



##### 



-65-




---



##### 



ARTICLE VIII.
 The Administrative Agent
 SECTION 8.1. Appointment and Authorization .
 -66-




---



##### 



SECTION 8.2. Wells Fargo as Lender .
 SECTION 8.3. Approvals of Lenders .
 SECTION 8.4. Notice of Defaults .
 -67-




---



##### 



SECTION 8.5. Administrative Agents Reliance, Etc .
 SECTION 8.6. Indemnification of Administrative Agent .
 -68-




---



##### 



SECTION 8.7. Lender Credit Decision, Etc .
 -69-




---



##### 



SECTION 8.8. Successor Administrative Agent .
 -70-




---



##### 



SECTION 8.9. Titled Agents .
 ARTICLE IX.
 Miscellaneous
 SECTION 9.1. Notices .
  th th
 th th
   -71-




---



##### 



SECTION 9.2. Waivers; Amendments .
 provided provided further provided,
further Schedules 3.2 4. 1(f)
 SECTION 9.3. Expenses; Indemnity; Damage Waiver .
 -72-




---



##### 



Indemnitee provided
 provided
  -73-




---



##### 



SECTION 9.4. Successors and Assigns .
 provided
 -74-




---



##### 



Register
  Participant provided
 -75-




---



##### 



provided
 SECTION 9.5. Survival .
 SECTION 9.6. Counterparts; Integration; Effectiveness .
 -76-




---



##### 



SECTION 9.7. Severability .
 SECTION 9.8. Right of Setoff .
 SECTION 9.9. Governing Law; Jurisdiction; Consent to Service of Process .
   -77-




---



##### 



SECTION 9.10. WAIVER OF JURY TRIAL .
 SECTION 9.11. Headings .
 SECTION 9.12. Confidentiality . Information
 -78-




---



##### 



SECTION 9.13. Interest Rate Limitation . Charges Maximum Rate
 SECTION 9.14. [Reserved]
 SECTION 9.15. Electronic Document Delivery .
  -79-




---



##### 



SECTION 9.16. USA Patriot Act .
 [Remainder of Page Intentionally Left Blank]
 -80-




---



##### 



BORROWER:CORPORATE PROPERTY ASSOCIATES 14INCORPORATEDBy:
    
    /s/ Mark J. DeCesarisName: Mark J. DeCesarisTitle: Managing Director
  Signature Page to Credit Agreement




---



##### 



WELLS FARGO BANK, NATIONALASSOCIATION, individually, as IssuingBank and as Administrative AgentBy:
    
    /s/ Jan LaChapelleName:
    
    Jan LaChapelleTitle:
    
    Relationship Manager




---



##### 



PNC BANK, NATIONALASSOCIATIONBy:
    
    /s/ Brian P. KellyName:
    
    Brian P. KellyTitle:
    
    Vice President




---



##### 



CITIZENS BANK OF RHODEISLANDBy:
    
    /s/ Craig E. SchermerhornName:
    
    Craig E. SchermerhornTitle:
    
    Senior Vice President




---



##### 



THE BANK OF NEW YORKBy:
    
    /s/ David Applebaum

Name: David Applebaum 
Title: Vice President




---



##### 



EUROHYPO AG, NEW YORK
BRANCHBy:
    
    /s/ Alfred KochName:
    
    Alfred KochTitle:
    
    Managing DirectorBy:
    
    /s/ Jeff PageName:
    
    Jeff PageTitle:
    
    Executive Director




---



##### 



KBC BANK NVBy:
    
    /s/ Francis X. PayneName:
    
    FRANCIS X. PAYNETitle:
    
    Vice PresidentBy:
    
    /s/ Robart SnaufferName:
    
    Robart SnaufferTitle:
    
    First Vice President




---



##### 



Schedule 1
 Commitments
 Lender
    

    CommitmentWells Fargo Bank, National Association
    
    $
    40,000,000PNC Bank, National Association
    
    $
    25,000,000Citizens Bank of Rhode Island
    
    $
    25,000,000The Bank of New York
    
    $
    22,500,000Eurohypo AG, New York Branch
    
    $
    22,500,000KBC Bank NV
    
    $
    15,000,000




---



##### 



CPA REITS
 1.
    
    Corporate Property Associates 14 Incorporated2.
    
    Corporate Property Associates 15 Incorporated3.
    
    Corporate Property Associates 16 Incorporated




---



##### 








---



##### 



Schedule 3.2
 Ownership Structure
 (Chart)




---



##### 








---



##### 



Portfolio Overview
  CPA: 14 (Pro-Rata)
 Interest
    
    Fixed/
    
    
    
    
    9-30-06
    
    
    Balloon
    
    MaturityTenant/Lease Guarantor
    
    Rate
    
    Variable
    
    Original Balance
    
    Balance
    
    Payment
    
    DateEarle M. Jorgensen Company
    
    
    7.82
    %
    
    Fixed
    
    $
    3,800,000
    
    
    $
    3,615,883
    
    
    $
    3,556,956
    
    
    Feb-08Gibson Guitar Corporation (82.5%)
    
    
    7.57
    %
    
    Fixed
    
    
    1,712,322
    
    
    
    1,525,461
    
    
    
    1,455,135
    
    
    May-08Pacific Logistics (Texas Freezer)
    
    
    5.15
    %
    
    Fixed
    
    
    4,500,000
    
    
    
    3,749,539
    
    
    
    3,504,001
    
    
    Jul-08Perry Graphic Communications, Inc.
    
    
    7.01
    %
    
    Fixed
    
    
    11,000,000
    
    
    
    9,350,390
    
    
    
    8,824,493
    
    
    Aug-08The Bon-Ton Stores, Inc.
    
    
    6.50
    %
    
    Fixed
    
    
    6,900,000
    
    
    
    5,181,372
    
    
    
    4,530,499
    
    
    Dec-08Advanced Micro Devices (66.66%)
    
    
    7.78
    %
    
    Fixed
    
    
    45,500,000
    
    
    
    41,571,182
    
    
    
    39,893,995
    
    
    Jan-09Gensia (50%)
    
    
    8.13
    %
    
    Fixed
    
    
    6,500,000
    
    
    
    1,616,412
    
    
    
    
    
    
    Jan-09Brashear, L.P.
    
    
    7.50
    %
    
    Fixed
    
    
    4,225,000
    
    
    
    3,698,780
    
    
    
    3,442,126
    
    
    Apr-09Compucom Systems, Inc. (66.66%)
    
    
    7.22
    %
    
    Fixed
    
    
    15,333,333
    
    
    
    13,342,640
    
    
    
    12,351,558
    
    
    May-09Production Resource Group (NV)
    
    
    8.31
    %
    
    Fixed
    
    
    5,475,000
    
    
    
    4,898,607
    
    
    
    4,566,197
    
    
    Jul-09Intesys Technologies, Inc.
    
    
    8.08
    %
    
    Fixed
    
    
    13,130,000
    
    
    
    12,161,461
    
    
    
    11,583,578
    
    
    Aug-09Moonlight Molds (fka Scott)
    
    
    8.21
    %
    
    Fixed
    
    
    3,000,000
    
    
    
    2,783,526
    
    
    
    2,653,543
    
    
    Aug-09McLane Foodservice, Inc. (Ameriserve)
    
    
    8.51
    %
    
    Fixed
    
    
    32,000,000
    
    
    
    23,466,322
    
    
    
    24,885,885
    
    
    Sep-09Galyans Trading Company (2),(3)
    
    
    8.79
    %
    
    Fixed
    
    
    14,748,889
    
    
    
    13,870,378
    
    
    
    13,258,846
    
    
    Sep-09Galyans Trading (Fairfax & Lombard) (2)
    
    
    8.75
    %
    
    Fixed
    
    
    16,588,659
    
    
    
    15,593,642
    
    
    
    14,902,267
    
    
    Sep-09Atrium Companies (TX)
    
    
    8.70
    %
    
    Fixed
    
    
    13,123,000
    
    
    
    12,561,533
    
    
    
    12,093,827
    
    
    Jan-10Production Resource Group (CA)
    
    
    7.50
    %
    
    Fixed
    
    
    2,176,623
    
    
    
    2,038,234
    
    
    
    1,882,416
    
    
    Mar-10Amerix Corporation
    
    
    8.66
    %
    
    Fixed
    
    
    14,500,000
    
    
    
    13,249,559
    
    
    
    12,237,419
    
    
    Apr-10RockIsland Corporation (West Union)
    
    
    8.31
    %
    
    Fixed
    
    
    3,300,000
    
    
    
    3,172,187
    
    
    
    3,010,388
    
    
    Jul-10ShopRite Supermarkets, Inc. (45%)
    
    
    7.50
    %
    
    Fixed
    
    
    4,900,500
    
    
    
    4,588,928
    
    
    
    4,198,845
    
    
    Jul-10Randall International
    
    
    7.50
    %
    
    Fixed
    
    
    5,549,909
    
    
    
    5,197,049
    
    
    
    4,732,615
    
    
    Sep-10Amtech Systems Corporation
    
    
    8.09
    %
    
    Fixed
    
    
    3,500,000
    
    
    
    3,321,219
    
    
    
    3,140,889
    
    
    Oct-10Garden Ridge Corporation
    
    
    7.50
    %
    
    Fixed
    
    
    5,510,978
    
    
    
    5,160,592
    
    
    
    4,688,062
    
    
    Oct-10Institutional Jobbers Company
    
    
    8.60
    %
    
    Fixed
    
    
    13,416,187
    
    
    
    12,259,075
    
    
    
    11,026,809
    
    
    Nov-10Barjan Products
    
    
    7.50
    %
    
    Fixed
    
    
    7,151,053
    
    
    
    6,855,044
    
    
    
    6,446,194
    
    
    Nov-10Buffets Holdings, Inc.
    
    
    8.11
    %
    
    Fixed
    
    
    11,785,000
    
    
    
    9,129,467
    
    
    
    8,151,860
    
    
    Dec-10Advance Paradigm, Inc. (PCS)
    
    
    8.00
    %
    
    Fixed
    
    
    24,700,000
    
    
    
    22,665,785
    
    
    
    20,399,141
    
    
    Jan-11Federal Express Corporation (60%)
    
    
    7.50
    %
    
    Fixed
    
    
    27,000,000
    
    
    
    25,308,579
    
    
    
    23,476,705
    
    
    Jan-11




---



##### 



Interest
    
    Fixed/
    
    
    
    
    9-30-06
    
    
    Balloon
    
    MaturityTenant/Lease Guarantor
    
    Rate
    
    Variable
    
    Original Balance
    
    Balance
    
    Payment
    
    DateTowne Holdings, Inc.
    
    
    7.70
    %
    
    Fixed
    
    
    4,800,000
    
    
    
    4,545,308
    
    
    
    4,265,830
    
    
    Jan-11Westell
    
    
    7.40
    %
    
    Fixed
    
    
    12,000,000
    
    
    
    10,235,441
    
    
    
    8,325,084
    
    
    Jan-11McCoy, Inc. (90%)
    
    
    8.25
    %
    
    Fixed
    
    
    3,780,000
    
    
    
    31450,611
    
    
    
    3,080,695
    
    
    Jan-11Upper Deck Company, The (50%)
    
    
    8.43
    %
    
    Fixed
    
    
    7,500,000
    
    
    
    6,000,646
    
    
    
    4,882,776
    
    
    Feb-11Bon-Ton Department Stores, Inc., The
    
    
    7.50
    %
    
    Fixed
    
    
    3,241,555
    
    
    
    3,232,040
    
    
    
    3,021,286
    
    
    Mar-11Nexpak Corporation (GA)
    
    
    7.33
    %
    
    Fixed
    
    
    7,900,000
    
    
    
    7,473,481
    
    
    
    6,959,433
    
    
    Apr-1124 Hour Fitness (Houston)
    
    
    7.50
    %
    
    Fixed
    
    
    4,330,319
    
    
    
    4,054,999
    
    
    
    3,628,989
    
    
    Apr-11Celadon
    
    
    7.50
    %
    
    Fixed
    
    
    2,100,683
    
    
    
    1,967,122
    
    
    
    1,755,939
    
    
    May-11Nexpak B. V. (Helmond, NT)
    
    
    6.41
    %
    
    Fixed
    
    
    4,813,400
    
    
    
    5,927,666
    
    
    
    4,956,869
    
    
    Jun-11Lennar Corporation (U. S. Home Corporation)
    
    
    7.42
    %
    
    Fixed
    
    
    5,000,000
    
    
    
    4,750,508
    
    
    
    4,416,000
    
    
    Jul-11Metaldyne Company LLC
    
    
    7.48
    %
    
    Fixed
    
    
    16,700,000
    
    
    
    15,877,554
    
    
    
    14,766,439
    
    
    Jul-11Special Devices, Inc.
    
    
    7.87
    %
    
    Fixed
    
    
    17,500,000
    
    
    
    16,710,790
    
    
    
    15;627,595
    
    
    Jul-11Gibson Guitar Corporation (82.5%)
    
    
    7.49
    %
    
    Fixed
    
    
    8,250,000
    
    
    
    7,851,135
    
    
    
    7,296,470
    
    
    Aug-11Collins & Aikman Corporation
    
    
    7.35
    %
    
    Fixed
    
    
    17,000,000
    
    
    
    15,722,179
    
    
    
    13,778,139
    
    
    Oct-11DCI Holdings, Inc (New Creative Enterprises)
    
    
    7.35
    %
    
    Fixed
    
    
    10,000,000
    
    
    
    9,520,640
    
    
    
    8,814,694
    
    
    Oct-11Del Monte Corporation (50%)
    
    
    7.35
    %
    
    Fixed
    
    
    6,062,500
    
    
    
    5,606,737
    
    
    
    4,927,386
    
    
    Oct-11Jen-Coat
    
    
    7.30
    %
    
    Fixed
    
    
    7,150,000
    
    
    
    6,803,511
    
    
    
    6,294,530
    
    
    Oct-11Applied Power, Inc.
    
    
    7.10
    %
    
    Fixed
    
    
    17,500,000
    
    
    
    16,131,974
    
    
    
    14,076,622
    
    
    Nov-1124 Hour Fitness Worldwide (UT)
    
    
    7.50
    %
    
    Fixed
    
    
    3,293,647
    
    
    
    3,084,239
    
    
    
    2,709,656
    
    
    Nov-11Atrium Companies (NC, PA)
    
    
    7.25
    %
    
    Fixed
    
    
    14,000,000
    
    
    
    13,341,199
    
    
    
    12,308,814
    
    
    Dec-11PETsMART, Inc. (70%)
    
    
    7.70
    %
    
    Fixed
    
    
    30,187,500
    
    
    
    28,901,573
    
    
    
    26,840,151
    
    
    Dec-11Orbseal
    
    
    7.25
    %
    
    Fixed
    
    
    6,175,000
    
    
    
    5,884,421
    
    
    
    5,429,066
    
    
    Dec-11Sunland Distribution
    
    
    7.50
    %
    
    Fixed
    
    
    5,426,070
    
    
    
    5,081,083
    
    
    
    4,451,784
    
    
    Dec-11Perkin Elmer Inc. 1
    
    
    6.09
    %
    
    Fixed
    
    
    18,148,874
    
    
    
    21,740,790
    
    
    
    15,712,984
    
    
    Dec-11Lincoln Technical Institute, Inc.
    
    
    7.58
    %
    
    Fixed
    
    
    6,300;000
    
    
    
    5,832,850
    
    
    
    5,063,675
    
    
    Jan-12Gerber Scientific
    
    
    7.54
    %
    
    Fixed
    
    
    12,500,000
    
    
    
    11,957,463
    
    
    
    11,066,232
    
    
    Jan-12Nortel Networks Limited
    
    
    7.35
    %
    
    Fixed
    
    
    30,000,000
    
    
    
    28,642,452
    
    
    
    26,433,481
    
    
    Jan-12Best Buy (37%)
    
    
    7.49
    %
    
    Fixed
    
    
    10,545,000
    
    
    
    9,815,020
    
    
    
    8,580,131
    
    
    Feb-12Sandwich Bancorp/Compass Bank
    
    
    7.50
    %
    
    Fixed
    
    
    1,626.518
    
    
    
    1,523,104
    
    
    
    1,327,084
    
    
    Feb-1224 Hour Fitness Worldwide (MO)
    
    
    7.53
    %
    
    Fixed
    
    
    3,800,000
    
    
    
    3,643,740
    
    
    
    3,367,245
    
    
    Mar-12PW Eagle, Inc.
    
    
    7.60
    %
    
    Fixed
    
    
    8,200,000
    
    
    
    7,868,154
    
    
    
    7,278,802
    
    
    Mar-12Stellex Paragon / Stellex Monitor
    
    
    7.50
    %
    
    Fixed
    
    
    10,939,074
    
    
    
    10,243,572
    
    
    
    8,900,190
    
    
    Mar-12Childtime Childcare, Inc.
    
    
    7.50
    %
    
    Fixed
    
    
    6,871,863
    
    
    
    6,434,952
    
    
    
    5,591,046
    
    
    Mar-12Heainer Tire Group
    
    
    8.09
    %
    
    Fixed
    
    
    8,750,000
    
    
    
    8,439,901
    
    
    
    7,854,353
    
    
    Apr-12Newpark Resources, Inc.
    
    
    7.50
    %
    
    Fixed
    
    
    2,530,572
    
    
    
    2,369,680
    
    
    
    2,053,078
    
    
    Apr-12




---



##### 



Interest
    
    Fixed/
    
    
    
    
    9-30-06
    
    
    Balloon
    
    MaturityTenant/Lease Guarantor
    
    Rate
    
    Variable
    
    Original Balance
    
    Balance
    
    Payment
    
    DateR.J. Tower Corporation (Tower Automotive)
    
    
    7.89
    %
    
    Fixed
    
    
    19,878,130
    
    
    
    19,173,913
    
    
    
    17,803,805
    
    
    May-12Rave Reviews
    
    
    7.50
    %
    
    Fixed
    
    
    4,399,119
    
    
    
    4,119,425
    
    
    
    3,558,846
    
    
    May-12Meridian Automotive Systems
    
    
    7.50
    %
    
    Fixed
    
    
    7,316,265
    
    
    
    6,851,100
    
    
    
    5,901,714
    
    
    Jun-12Katun Corporation (IA, MN)
    
    
    7.15
    %
    
    Fixed
    
    
    19,000,000
    
    
    
    18,236,949
    
    
    
    16,664,292
    
    
    Aug-12Sitgan Containers Corporation
    
    
    7.50
    %
    
    Fixed
    
    
    7,236,811
    
    
    
    6,776,698
    
    
    
    5,803,527
    
    
    Aug-12International Garden Products, Inc.
    
    
    7.50
    %
    
    Fixed
    
    
    6,660,000
    
    
    
    6,384,317
    
    
    
    5,790,920
    
    
    Sep-12Vermont Teddy Bear Co., Inc.
    
    
    6.75
    %
    
    Fixed
    
    
    2,909,940
    
    
    
    2,402,810
    
    
    
    1,348,051
    
    
    Sep-12Career Education Corporation (Allentown Bus. School)
(4)
    
    
    6.29
    %
    
    Variable
    
    
    12,500,000
    
    
    
    11,503,395
    
    
    
    10,049,929
    
    
    Oct-12TruServ Corporation (50%)
    
    
    5.83
    %
    
    Fixed
    
    
    13,675,708
    
    
    
    13,033,167
    
    
    
    11,561,872
    
    
    Jan-13TruServ Corporation (50%)
    
    
    5.83
    %
    
    Fixed
    
    
    10,553,156
    
    
    
    10,357,071
    
    
    
    9,187,877
    
    
    Jan-13TruServ Corporation (50%)
    
    
    5.83
    %
    
    Fixed
    
    
    13,775,024
    
    
    
    13,142,558
    
    
    
    11,644,637
    
    
    Feb-13U-Haul International/Mercury Partners, LP (U-Haul)
(11.54%)
    
    
    6.45
    %
    
    Fixed
    
    
    21,118,200
    
    
    
    20,313,855
    
    
    
    16,652,089
    
    
    May-14CheckFree Corporation (50°0)
    
    
    6.18
    %
    
    Fixed
    
    
    15,000,000
    
    
    
    15,000,000
    
    
    
    13,367,848
    
    
    Jun-16Consolidated Theater
    
    
    6.20
    %
    
    Fixed
    
    
    12,000,000
    
    
    
    11,970,475
    
    
    
    9,3881039
    
    
    Jul-16Builders FirstSource, Inc. (GA, O1-I, VA) (60%)
    
    
    7.57
    %
    
    Fixed
    
    
    4,560,000
    
    
    
    4,248,360
    
    
    
    2,968,790
    
    
    Mar-17Carrefour France SAS (1) (2) (6)
    
    
    6.28
    %
    
    Fixed
    
    
    84,655,360
    
    
    
    94,787,173
    
    
    
    39,728,521
    
    
    Apr-17BLP Group PLC(5)
lp Group PLC (5)
    
    
    6.48
    %
    
    Variable
    
    
    5,548,000
    
    
    
    6,649,603
    
    
    
    4,078,523
    
    
    Jan-21Katun Corporation (Gorinchem, NT)(1)
    
    
    6.50
    %
    
    Fixed
    
    
    5,486,000
    
    
    
    6,510,213
    
    
    
    3,024,185
    
    
    Jun-22Universal Technical Institute, Inc. (NASCAR)
    
    
    6.23
    %
    
    Fixed
    
    
    6,700,000
    
    
    
    6,126,054
    
    
    
    
    
    
    Aug-23Waddington North America (expansion)
    
    
    8.01
    %
    
    Fixed
    
    
    11,125,000
    
    
    
    10,314,777
    
    
    
    927,518
    
    
    Jul-26Builders FirstSource, Inc. (NQ
    
    
    6.21
    %
    
    Fixed
    
    
    6,500,000
    
    
    
    6,043,944
    
    
    
    305,863
    
    
    Oct-27Total Limited Recourse Mortgage Debt.
    
    
    
    
    
    
    
    
    
    $
    946,545,740
    
    
    $
    896,545,237
    
    
    $
    740,493,645-
 
 (1)
    
    Current balance based on an exchange rate of 1.2688 USD/EUR at September 30, 2006(2)
    
    Interest rate reflects weighted average for tranches with common, maturity date(3)
    
    Dicks Sporting Goods announced its completed acquisition of Galyans Trading Co. on July
29, 2004(4)
    
    Indicated balloon payment is an estimate(5)
    
    Current balance based on an exchange rate of 1.8726 USD/GBP at September 30, 2006(6)
    
    Represents original mortgage and expansion




---



##### 








---



##### 



Schedule 4.1(f)
Transactions not in the Ordinary Clause
 1.
    
    The Company paid a dividend of $0.1919 per share, for a. total of approximately
$13,106,805, on January 15, 2006.
 2.
    
    The Company paid a dividend of $0.1924 per share, for a total of approximately
$13,167,117, on April 15, 2006.
 3.
    
    The Company paid a dividend of $0.1929 per share and a special dividend of
$0.45 per share, for a total of approximately $44,054,373; on July 15, 2006.
 4.
    
    The Company paid a dividend of $0.1929 per share, for a total of approximately
$13,304,127, on October 15, 2006.
 5.
    
    The Company will pay a special dividend of $0.04 per share, for a total of
approximately $2,759,000, on or about December 15, 2006.
 J-9




---



##### 



Exhibit C
  
      
 *
    
    As of the date of filing of this 10-K, a guaranty in substantially the same form as this
Form of Guaranty has been executed and entered into on behalf of Wells Fargo Bank, National
Association and the lenders by Best (CA) QRS 14-4, Inc., Truck
(IN) QRS 14-3, Inc., DELMO (PA) QRS 12-10, NUTRA (TX) QRS 12-39, Inc., Meta (CA) QRS
14-6, Inc., Film (FL) QRS 14-44, Inc., Projector (FL) QRS 14-45, Inc., Tel (VA) QRS 12-15, Inc. and
Bandwidth (UT) QRS 14-58, Inc.
 C-1




---



##### 



Guaranty
 Guaranty of Payment and Not of Collection
 Guaranty Absolute
 C-2




---



##### 



C-3




---



##### 



Action with Respect to Guarantied Obligations
 Representations and Warranties
 Covenants
 Waiver
 Inability to Accelerate Loan
 Reinstatement of Guarantied Obligations
 C-4




---



##### 



Subrogation provided however
 Payments Free and Clear
 Set-off
 C-5




---



##### 



Subordination
 Avoidance Provisions
 Information
 C-6




---



##### 



Governing Law
 WAIVER OF JURY TRIAL
   C-7




---



##### 



Loan Accounts
 Waiver of Remedies
 Termination
 C-8




---



##### 



Successors and Assigns
 JOINT AND SEVERAL OBLIGATIONS
 Amendments
 Payments
 Notices provided however
 C-9




---



##### 



Severability
 Headings
 Limitation of Liability
 Definitions
 Proceeding
  C-10




---



##### 



C-11




---



##### 



[GUARANTOR]By:Name:Title:Address for Notices for all Guarantors:c/o W.P. Carey & Co. LLC
50 Rockerfeller Plaza, New York
New York, New York 10020
Attention: Mark DeCesaris
Telecopier: 212-492-8922
Telephone: 212-492-1140
 C-12




---



##### 



Accession to Guaranty
 C-13




---



##### 



GOVERNING LAW
 Definitions
  C-14




---



##### 



[NEW GUARANTOR]By:Name:Title:(CORPORATE SEAL)Address for Notices:c/o W.P. Carey & Co. LLC 

50 Rockerfeller Plaza, New York
New York, New York

Attention: Mark DeCesaris 

Telecopier: 212-492-8922

Telephone: 212-492-1140
    By:Name:Title:
 C-15