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                                                                    EXHIBIT 10.2

                                ESCROW AGREEMENT

      ESCROW AGREEMENT dated as of December _____, 2003, by and among CORPORATE
PROPERTY ASSOCIATES 16 - GLOBAL INCORPORATED, a Maryland corporation (the
"Company"), CAREY FINANCIAL CORPORATION, a Delaware corporation (the "Sales
Agent"), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation (the "Escrow Agent").

      WHEREAS, the Company has filed with the Securities and Exchange Commission
(the "Commission") a registration statement on Form S-11 (File No. 333-_______),
containing a related preliminary prospectus, for the registration of the Shares
under the Securities Act of 1933, as amended (the "Securities Act") and the
regulations thereunder (the "Regulations"), the registration statement and any
amendments thereto, and any registration statement related thereto filed under
Rule 462(b) of the Securities Act are herein called the "Registration
Statement." Any prospectus relating to such Registration Statement and any
amendments thereto are herein called the "Prospectus."

      WHEREAS, the Company and the Sales Agent will enter into a Sales Agency
Agreement (the "Sales Agency Agreement"), pursuant to which the Sales Agent and
a group of selected dealers (each a "Selected Dealer," collectively the
"Selected Dealers") and a group of selected investment advisors (each a
"Selected Investment Advisor," collectively the "Selected Investment Advisors")
will offer and sell to the public on a best efforts bases of 120,000,000 shares
of common stock of the Company (including any additional shares registered on a
registration statement filed under Rule 462(b) relating hereto, the "Shares").

      WHEREAS, the Company has sole discretion in determining whether to accept
or reject any orders for the Shares;

      WHEREAS, the Company, in compliance with the terms of the proposed
offering described in the Registration Statement and Rule 15c2-4 under the
Securities Exchange Act of 1934, as amended, (the "Exchange Act") proposes to
establish an escrow account with the Escrow Agent for the deposit of payments
for the Shares; and

      WHEREAS, the foregoing recitals are statements of the Company and the
Sales Agent and not of the Escrow Agent;

      NOW, THEREFORE, in consideration of the mutual promises herein made and
for other good and valuable consideration, the parties hereby agree as follows:

      1. Subject to Section 6 hereof, for the period commencing on the date of
the Prospectus and terminating not later than 60 days following: (a) the date
two years from the date of the Prospectus, or (b) the date on which the offering
of the Shares otherwise terminates, whichever first occurs, but in no case prior
to 60 days after the final disposition of the money and property held in escrow
hereunder, the parties hereby appoint the Escrow Agent in accordance with the
terms and conditions set forth herein, and the Escrow Agent hereby accepts such
appointment and agrees to receive, hold and disburse the proceeds from the sale
of the Shares in
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accordance herewith. The Company and the Sales Agent agree to promptly notify
the Escrow Agent of the date of the Prospectus (or if the offering of the Shares
is extended, the date of termination of such extension) and the date, if any,
referred to in clause (b) above.

      2. (a) The Sales Agent shall deliver, and shall cause each Selected Dealer
or Selected Investment Advisor to directly or indirectly deliver, proceeds (the
"Escrow Funds") received from purchasers of the Shares (each an "Investor") to
the Escrow Agent at Deutsche Bank Trust Company Americas, 60 Wall Street, 27th
Floor, New York, New York 10004, by noon of the next business day after receipt
of the proceeds by the Selected Dealer. The Escrow Agent shall have no
obligation or responsibility to determine whether the Sales Agent or any
Selected Dealer or Selected Investment Advisor has delivered to the Escrow Agent
all or any part of the proceeds received from an Investor. All deliveries of
proceeds shall be accompanied by: (i) the name and address of, the social
security number or taxpayer identification number of, the brokerage account
number of (if applicable), the number of Shares purchased by and the total
dollar amount of the investment by, each Investor on whose behalf proceeds are
delivered to the Escrow Agent, and (ii) a statement advising the Escrow Agent of
the aggregate amount of Escrow Funds delivered attributable to individual
retirement accounts, Keogh plans, or any other employee benefit plan subject to
Title I of the Employee Retirement Income Security Act of 1974 ("ERISA") (these
investors collectively referred to as "Plan Investors") or from some other type
of investor ("Non-Plan Investors"). Funds delivered to the Escrow Agent may be
in the form of checks payable to "Deutsche Bank Trust Company Americas, as
Escrow Agent" and drawn on an account of an Investor, Selected Dealer or
Selected Investment Advisor or wire transfer from the Sales Agent or certain
Selected Dealers or Selected Investment Advisors identified to the Escrow Agent
by the Company or the Sales Agent. The Company shall comply fully with the
Interest and Dividend Tax Compliance Act of 1983, and the Escrow Agent shall
have no responsibility thereunder.

            (b) Prior to the delivery of any payments from Investors, the
Company shall deliver to the Escrow Agent a copy of the Prospectus, certified by
the Company to be a true copy, and a copy of the order of the Commission
declaring effective the Registration Statement as soon as practicable after the
Company's receipt thereof. It is understood that the copy of the Prospectus is
being delivered to the Escrow Agent solely for the purpose of notifying the
Escrow Agent of the effective date of the Registration Statement and that the
Escrow Agent is not charged with any duty to review the Prospectus or to inquire
into the effectiveness of the Registration Statement.

            (c) All Escrow Funds shall be invested in the Cash Reserve Account
or similar account meeting the requirements of Rule 15c2-4, including a Reserve
Balance Account while the escrow is handled by Deutsche Bank Trust Company
Americas. All investments attributable to Escrow Funds shall be made by the
Escrow Agent in the name of "Deutsche Bank Trust Company Americas, as Escrow
Agent." The income derived from such investments shall be distributed to the
Company unless the funds contributed by those Investors remained such account
for more than 20 calendar days.

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      3. (a) Upon receipt by the Escrow Agent of instructions signed by the
Sales Agent and the Company, the Escrow Agent will from time to time pay to the
Company and/or to any other person designated in such instructions the Escrow
Funds in accordance with such instructions. Such instructions also shall include
the times and places at which such Escrow Funds are to be paid and the amount
and method of payment. The Company shall give the Escrow Agent two business days
advance oral notification of the contents of such instructions. Within fifteen
calendar days after the date on which Escrow Funds are paid to the Company or
other designated person pursuant to the instructions described above, the Escrow
Agent shall remit interest earned on such Escrow Funds, if and only if, such
Escrow Funds have been held by the Escrow Agent for at least twenty days, or
more, ("Escrow Interest") to Investors on whose behalf such Escrow Funds were
deposited or, to Selected Dealers or Selected Investment Advisors for the
account of such Investors, as applicable, each Investor's pro-rata share of
interest earned on all Escrow Funds maintained in the escrow account based on
the length of time its subscription payment has been held by the Escrow Agent,
as recorded by the Transfer Agent for the Company. Such remission shall be made
either directly to, or pursuant to instruction received from, the Investor or an
investment advisor acting on behalf of such Investor, in a lump sum directly to
Selected Dealers or Selected Investment Advisors, for the account of such
Investors, as applicable. The payment of Escrow Interest to Selected Dealers and
Selected Investment Advisors shall be accompanied by a listing, in a form
acceptable to Selected Dealers and Selected Investment Advisors, of the
Investors to whom interest should be paid and their respective account numbers.

      Escrow Interest earned, but not payable to Investors pursuant to the above
shall be paid to the Company, as instructed in writing.

      The Escrow Agent will provide the Transfer Agent with the total Escrow
Interest and the daily rate of interest for the Escrow Funds held in the escrow
account. The Transfer Agent will generate the pro-rata share of Escrow Interest
earned based upon the deposit date it has recorded for each Investor. The
Transfer Agent will supply the Escrow Agent with the Escrow Interest allocated
for each Investor.

            (b) If, during the period any Escrow Funds are held by the Escrow
Agent, the Company determines that: (i) an Investor will not be issued Shares
because the Company determines that such Investor is not acceptable, or (ii) a
portion of an Investor's order is rejected, the Company shall: (A) furnish the
Escrow Agent with the name of such Investor and the amount of such Investor's
order which must be returned, and (B) direct the Escrow Agent to, and the Escrow
Agent shall, return to such Investor or for the account of such Investor, within
eight business days of the Escrow Agent's receipt of such information, the
amount of such Investor's order (including any Escrow Interest attributable to
such amount) which must be returned.

            (c) In the event that, prior to the date, one year from the date of
the Prospectus (the "Anniversary Date"), the Registration Statement is withdrawn
from registration with the Commission or, if not so withdrawn, the Escrow Agent
has not received the instructions described in Section 3(a) hereof, the Escrow
Agent shall, within 10 business days following the

                                       -3-
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Anniversary Date, or after receipt of written notice from the Company and the
Sales Agent that the Registration Statement has been withdrawn, as the case may
be, remit to or for the account of each Investor its respective share of the
Escrow Funds then held by the Escrow Agent on behalf of such Investor, together
with such Investor's respective share of Escrow Interest, based on the length of
time such Investor's payments have been held by the Escrow Agent and determined
in accordance with Section 3(a) hereof. Such remission shall be made either
directly to, or pursuant to instructions received from, the Investor or an agent
acting on behalf of such Investor or, in the case of AMEX Investors, in a lump
sum to Selected Dealers or Selected Investment Advisors for the account of such
Investors. Notwithstanding the foregoing, the Escrow Agent shall use its best
efforts to remit such Escrow Funds and Escrow Interest to or for the account of
each Investor within five business days following the earlier of the dates
specified above.

      4. (a) The Escrow Agent shall perform the following functions with respect
to funds it receives from the Sales Agent, Selected Dealers or Selected
Investment Advisors by check drawn on an Investor's account or wire transfers on
behalf of Investors:

            (i)   Collect the mail received at the address referred to Section
                  2(a) hereof prior to 12:00 noon New York time on each business
                  day;

            (ii)  Before the close of business on the business day on which
                  funds are received from Investors, deposit checks or wire
                  transfers attributable to such Investors into the account
                  established pursuant to Section 2(c) hereof;

            (iii) Verify that, for each Investor whose name was submitted to the
                  Escrow Agent by the Sales Agent or any Selected Dealer or
                  Selected Investment Advisor in connection with the delivery of
                  funds to the Escrow Agent, payment for the Shares subscribed
                  for by such Investor has been made either by check or by wire
                  transfer as described in Section 2(a) hereof and notify the
                  Company in writing as soon as practicable if any such payment
                  is not received or if payment on any check is refused by the
                  bank or financial institution on which such check is drawn.

            (iv)  Before the close of business on the business day on which
                  funds are received, send to the Company and to the Company's
                  transfer agent by electronic mail or other same day delivery
                  service, a report listing the aggregate face amount of all
                  checks and the amount of wire transfers received and the
                  Selected Dealer or Selected Investment Advisor the funds were
                  received from.

            (v)   Before the close of business on the business day, send to the
                  Company and to the Company's Transfer Agent by electronic mail
                  or other same day delivery service scanned images of all Order
                  Forms received that business day.

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      5. (a) Notwithstanding anything to the contrary contained in this Escrow
Agreement, the Escrow Agent shall in no case or event be liable for the failure
of any of the conditions of this Escrow Agreement or damage caused by the
exercise of its duties, if acting in good faith, in any particular manner, or
for any reason (including, without limitation, the liquidation of investments of
the Escrow Funds), for any mistake of fact or law, for any error of judgment, or
for any action taken or omitted by it, or any action suffered by it to be taken
or omitted, except gross negligence or willful misconduct with reference to the
Escrow Funds or Escrow Interest, and the Escrow Agent, if acting in good faith,
shall not be liable or responsible for its failure to ascertain the terms or
conditions, or to comply with any of the provisions, of any agreement, contract
or other document delivered to it or referred to herein, nor shall the Escrow
Agent, if acting in good faith, be liable or responsible for forgeries or false
personation or for its good faith determination of the authority of any person
executing this Escrow Agreement or for the value or validity or genuineness or
collection of any check from an Investor delivered to the Escrow Agent
hereunder. The Escrow Agent shall have no responsibility with respect to the use
or application of any funds or other property paid or delivered by the Escrow
Agent to the Company pursuant to the provisions hereof. The Escrow Agent shall
not be liable to the other parties hereto or to anyone else for any loss, which
may be incurred by reason of any investment of any monies it holds hereunder in
its capacity as Escrow Agent.

            (b) In the absence of gross negligence or willful misconduct on the
part of the Escrow Agent, the Escrow Agent may rely conclusively upon and shall
not be liable for, and shall be indemnified and held harmless for, acting upon
any order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth, completeness and
acceptability of any information therein contained) which is believed by the
Escrow Agent to be genuine and to be signed or presented by the proper person or
persons. The Escrow Agent shall not be bound by any notice or demand, or any
waiver, modification, termination or rescission of this Escrow Agreement or any
of the terms hereof, unless evidenced by a writing delivered to the Escrow Agent
signed by the proper party or parties and, if the duties or rights of the Escrow
Agent are affected, unless it shall give its prior written consent thereto.

            (c) The Escrow Agent shall have the right to assume, in the absence
of written notice to the contrary from the proper person or persons, that a fact
or an event by reason of which an action would or might be taken by the Escrow
Agent does not exist or has not occurred, without incurring liability for any
action taken or omitted, or any action taken or omitted by it or to be taken or
omitted, in good faith and in the exercise of its own best judgment, in reliance
upon such assumption.

            (d) To the extent that the Escrow Agent becomes liable for the
payment of taxes, including withholding taxes, in respect of income derived from
the investment of funds held hereunder or any payment made hereunder, the Escrow
Agent may pay such taxes from the funds held. The Escrow Agent may withhold from
any payment of monies held by it hereunder such amount as the Escrow Agent
estimates to be sufficient to provide for the payment of such

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taxes not yet paid, and may use the sum withheld for that purpose. The Escrow
Agent shall be indemnified and held harmless against any liability for taxes and
for any penalties or interest in respect of taxes on such investment income or
payments in the manner provided in Section 6(e) hereof. The Escrow Agent shall
provide to each Investor or Selected Dealer or Selected Investment Advisor all
information necessary regarding on whose behalf such withholdings have been made
so that the proper adjustments may be made to the escrow interest payment
received by the Investor or to the Investor's account with the Selected Dealer
or Selected Investment Advisor.

            (e) The Escrow Agent shall be indemnified and held harmless by the
Company and the Sales Agent, jointly and severally, from and against any costs,
liabilities, claims, judgments and other expenses, including reasonable counsel
fees and disbursements, or loss suffered by the Escrow Agent in connection with
or directly or indirectly arising out of or relating to this Escrow Agreement,
the services of the Escrow Agent hereunder, the money or other property held by
it hereunder or any income earned from investment of such money, provided,
however, that such indemnification shall not apply to any such expenses, losses,
claims or demands caused by the gross negligence or willful misconduct of the
Escrow Agent or its officers, employees or agents. Promptly after the receipt by
the Escrow Agent of notice of any demand or claim or the commencement of any
action, suit or proceeding, the Escrow Agent shall, if a claim in respect
thereof is to be made against any of the other parties hereto, notify such other
parties thereof in writing; but the failure by the Escrow Agent promptly to give
such notice shall not relieve any party from any liability which such party may
have to the Escrow Agent hereunder. For the purposes hereof, the term "expense
or loss" shall include all amounts paid or payable to satisfy any claim, demand
or liability, or in settlement of any claim, demand, action, suit or proceeding
settled with the express written consent of the Escrow Agent, all reasonable
costs and expenses, including, but not limited to, counsel fees and
disbursements, paid or incurred in investigating or defending against any claim,
demand, action, suit or proceeding. Notwithstanding anything in this subsection
(e) to the contrary, an indemnifying party shall not be liable for any
settlement of any such claim, demand, action, suit or proceeding effected
without its written consent.

            (f) Should any dispute or conflicting claims arise with respect to
the payment or ownership or right of possession of the Escrow Funds or Escrow
Interest, the Escrow Agent shall be entitled, in its sole discretion, to refuse
to comply with any and all claims, demands, or instructions with respect to, and
to retain possession of, such Escrow Funds or Escrow Interest so long as such
dispute or conflict shall continue and the Escrow Agent shall not be liable for
its failure or refusal to comply with such conflicting claims, demands or
instructions. The Escrow Agent shall be entitled to refuse to act until such
disputes or conflicting claims have been settled either by mutual agreement
among the parties concerned or by the final order, decree or judgment of a court
or other tribunal of competent jurisdiction in the United States of America and
the expiration of time for appeal without perfection of any appeal, but the
Escrow Agent shall be under no duty whatsoever to institute or defend any such
proceeding.

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            (g) The Escrow Agent's duties are only such as are herein
specifically provided, being purely ministerial in nature, and that the Escrow
Agent shall use reasonable diligence in the performance of its obligations
hereunder, but shall incur no liability whatever, except for willful misconduct
or gross negligence, so long as the Escrow Agent has acted in good faith. The
Escrow Agent shall have no duty to enforce any obligation of any person to make
any payment or delivery, or to direct or cause any payment or delivery to be
made, or to enforce any obligation of any person to perform any other act. The
Escrow Agent shall be under no liability to the other parties hereto or to
anyone else by reason of any failure on the part of any party hereto or any
maker, guarantor, endorser or other signatory of any document or any other
person to perform such person's obligations under any such document. Except for
amendments to this agreement referred to below and except for joint instructions
given to the Escrow Agent by the other parties hereto relating to the escrow
deposit under this agreement, the Escrow Agent shall not be obligated to
recognize any agreement between any or all of the persons referred to herein,
notwithstanding that references thereto may be made herein and whether or not it
has knowledge thereof. The Escrow Agent is not a party to, and is not bound by,
any agreement or other document out of which this Escrow Agreement may arise or
any other agreement or other document in connection with the Company.

      6. Notwithstanding anything to the contrary contained in this Escrow
Agreement, the Escrow Agent (a) may resign from its duties under this Escrow
Agreement by giving 30 calendar days' prior written notice of such resignation
to the other parties hereto and (b) may be discharged from its duties under this
Escrow Agreement upon the receipt from each of the other parties hereto of 30
calendar days' prior written notice of such discharge. Upon the resignation or
discharge of the Escrow Agent, the Company shall retain a substitute escrow
agent to perform the functions theretofore performed by the Escrow Agent under
this Escrow Agreement. As soon as practicable after its resignation, the Escrow
Agent shall turn over to a successor escrow agent appointed by the other parties
hereto all money and property held hereunder upon presentation of a document
appointing the new escrow agent and its acceptance thereof. If no new escrow
agent is so appointed prior to the effectiveness of such resignation or
discharge, the Escrow Agent may deposit the aforesaid money and property with
any court it deems appropriate.

      7. (a) The Company shall compensate the Escrow Agent in accordance with
the fee schedule attached hereto as Exhibit A.

            (b) It is understood that fees and usual charges agreed upon for the
Escrow Agent's services hereunder shall be considered compensation for its
ordinary services as contemplated by this Escrow Agreement and in the event the
conditions of this Escrow Agreement are not promptly fulfilled by parties other
than the Escrow Agent or that the Escrow Agent renders any service hereunder not
provided for in, or contemplated by, this Escrow Agreement, or that there is any
modification hereof, or that any controversy arises hereunder or that the Escrow
Agent is made a party to, or intervenes in, or that there is, any litigation
pertaining to this Escrow Agreement or the subject matter thereof, the Escrow
Agent and its legal counsel shall be reasonably compensated for services
rendered in connection with, and reimbursed for all reasonable costs and
expenses occasioned by, such events and the Escrow

                                       -7-
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Agent shall have the right to retain all documents and/or other things of value
at any time held by it hereunder, except Escrow Funds, Escrow Interest or
subscription material, until such fees, costs and expenses shall be paid. The
Company hereby promises to pay the foregoing sums upon demand.

            (c) It is understood that from time to time on and after the date
hereof, the other parties hereto shall deliver or cause to be delivered to the
Escrow Agent such further documents and instruments and shall do and cause to be
done such further acts as the Escrow Agent reasonably shall request (it being
understood that the Escrow Agent shall have no obligation to make any such
request) to carry out more effectively the provisions and purposes of this
Escrow Agreement, to evidence compliance herewith or to assure itself that it is
protected in acting hereunder.

      8. If, after the receipt by the Escrow Agent of any check or instrument
pursuant hereto, the Escrow Agent shall inform the Company and the Sales Agent
that such check or instrument has been entered for collection by it hereunder
and is uncollectable and payment of the funds represented by such check or
instrument has been made pursuant to the terms of this Escrow Agreement, then
the Company shall immediately reimburse the Escrow Agent for such payment plus
interest thereon, and the Escrow Agent shall deliver the returned check or
instrument to the Company provided, however, that nothing contained herein shall
require the Escrow Agent to invest or pay out funds which it has reason to
believe are uncollectable or prior to funds respecting such check or instrument
having been paid (it being understood that the Escrow Agent shall be under no
duty to investigate the collectability of any such funds). The Escrow Agent
shall have no duty or responsibility to enforce collection of any check
delivered to the Escrow Agent hereunder. Notwithstanding anything to the
contrary contained herein, the Escrow Agent shall not be required to advance its
own funds to the Company, the Sales Agent or any Selected Dealer, Selected
Investment Advisor or any Investor for any purpose under this Agreement.

      9. All distributions of payments for Shares by the Escrow Agent to
Investors or to any other person or entity pursuant to this Escrow Agreement
shall be made by check, payable in accordance with Section 3(a) hereof. All
payments by the Escrow Agent to the Company shall be made in immediately
available funds, if and to the extent that the funds on deposit with the Escrow
Agent are immediately available at the time of such payment.

      10. The Company may at any time assign its right to receive up to 85% of
the amount of the Escrow Funds attributable to Non-Plan Investors as security
for borrowings from third parties, provided that any such assignment shall be
subordinate to the rights of Investors to receive, and no such assignment shall
in any way prevent the return to Investors of, the Escrow Funds and Escrow
Interest in accordance with Sections 3(a) and (b) hereof. The Escrow Agent shall
accept and acknowledge instructions for the payment of the Escrow Funds in
accordance with the provisions of Section 3(a) hereof designating any such third
party for such payment. It is specifically understood that, in order for the
parties hereto to change such instructions pursuant to this Escrow Agreement,
any party that has been assigned the right to receive Escrow Funds

                                       -8-
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shall join in the execution of an agreement changing such instructions or shall
otherwise give its written consent to such agreement. The Escrow Agent may rely
on any instructions it receives pursuant to this Section 10 until it receives
properly executed instructions, which specifically supersede such previously
received instructions. The Company hereby agrees not to submit instructions
altering previously submitted instructions concerning payment of Escrow Funds to
third parties unless such new instructions are signed or consented to in writing
by such third party. All reasonable expenses incurred by the Escrow Agent as a
result of any such assignment referred to above shall be paid by the Company.

      11. All notices, requests, demands, communications and instructions
required or desired to be given under this Escrow Agreement shall be in writing
and shall be deemed to be duly given if delivered personally or sent by
registered or certified U.S. mail, postage prepaid, return receipt requested, to
the following addresses:

      To the Escrow Agent:

            Deutsche Bank Trust Company Americas

            Corporate Trust and Agency Services
            60 Wall Street, 27th Floor
            MS NYC 2710
            New York, NY 10005

      To the Company:

            Corporate Property Associates 15 Incorporated
            50 Rockefeller Plaza
            New York, New York 10020
            Attention: Susan Hyde, Executive Director and Secretary

      To the Sales Agent:

            Carey Financial Corporation
            50 Rockefeller Plaza
            New York, NY 10020
            Attention: Stephen H. Hamrick, Chairman

or to such other address and to the attention of such other person as any of the
above may have furnished to the other parties by personal delivery or registered
or certified mail, return receipt requested.

      12. The Company shall deliver to the Escrow Agent a certificate of the
secretary of the Company as to: (a) the authority of certain officers thereof to
act on behalf of the Company both in connection with this Escrow Agreement, and
(b) the incumbency and signatures of such

                                       -9-
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officers, and the Escrow Agent may act in reliance on such certificate and upon
the instructions or directions, or any other certificate, communication or other
document, given to it in accordance with the terms of this Escrow Agreement by
the Company through a person authorized so to act in such certificate.

      13. The Sales Agent shall deliver to the Escrow Agent a certificate of the
secretary or any assistant secretary of the Sales Agent as to: (a) the authority
of certain officers thereof to act on behalf of the Sales Agent in connection
with this Escrow Agreement, and (b) the incumbency and signatures of such
officers, and the Escrow Agent may act in reliance on such certificate and upon
the instructions or directions, or any other certificate, communication or other
document, given to it in accordance with the terms of this Escrow Agreement by
the Sales Agent through a person authorized so to act in such certificate.

      14. Nothing in this Escrow Agreement is intended to or shall confer upon
anyone other than the parties hereto any legal or equitable right, remedy or
claim. This Escrow Agreement shall be deemed to be an agreement made under the
laws of the State of New York and for all purposes shall be construed and
enforced in accordance with and governed by the laws of New York applicable to
agreements made and to be wholly performed within such State. Notwithstanding
the foregoing, each party recognizes that each Investor is a third party
beneficiary of this Escrow Agreement. Each of the other parties hereto hereby
irrevocably consents to the jurisdiction of the courts of the State of New York
and of any Federal court located in such state in connection with any action,
suit or other proceeding arising out of or relating to this Escrow Agreement or
any action taken or omitted hereunder, and waives personal service of any
summons, complaint or other process and agrees that the service thereof may be
made by certified or registered mail directed to such person at such person's
address for purposes of notices hereunder. Should the person so served fail to
appear or answer within the time prescribed by law, that person shall be deemed
in default and judgment may be entered by the Escrow Agent against that person
for the amount of other relief as demanded in any summons, complaint or other
process so served.

      15. This Escrow Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, and all such counterparts, shall
constitute but one and the same instrument.

      16. This agreement shall terminate on the final disposition of the monies
and property held in escrow hereunder, provided that the rights of the Escrow
Agent and the obligations of the other parties hereto under Sections 5, 7 and 14
hereof shall survive the termination hereof.

      17. The Escrow Agent represents and warrants to the Company and the Sales
Agent that it satisfies the requirements of Section 3(a)(6) of the Exchange Act
and the requirements of NASD Notice to Members 84-7 with respect to
qualifications of escrow agents.

      18. (a) All amounts referred to herein are expressed in United States
Dollars and all payments by the Escrow Agent shall be made in such dollars.

                                      -10-
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            (b) If, for any reasons, the escrow deposit is not received by the
Escrow Agent as contemplated herein, the other parties hereto shall reimburse
the Escrow Agent for all expenses, including counsel fees and disbursements,
paid or incurred by it, in making preparations for providing the services
contemplated hereby.

            (c) This Escrow Agreement shall be construed without regard to any
presumption or other rule requiring construction against the party causing such
instrument to be drafted. The terms "hereby," "hereof", "hereto," "hereunder"
and any similar terms, as used in this agreement, refer to this agreement in its
entirety and not only to the particular portion of this agreement where the term
is used. The word "person" shall mean any natural person, partnership,
corporation, government and any other form of business or legal entity. All
words or terms used in this agreement, regardless of the number or gender, in
which they are used, shall be deemed to include any other number and any other
gender as the context may require. This agreement shall not be admissible in
evidence to construe the provision of any prior agreement. The rule of ejusdem
generis shall not be applicable herein to limit a general statement, which is
followed by or referable to an enumeration of specific matters, to matters
similar to the matters specifically mentioned.

            (d) This agreement and the rights and obligations hereunder of any
party hereto may be assigned by those parties only to a successor to the
relevant party's entire business with the prior written consent of all other
parties. This agreement shall be binding upon and inure to the benefit of each
party's respective successors, heirs and permitted assigns. No other person
shall acquire or have any rights under or by virtue of this agreement. This
Escrow Agreement constitutes the entire agreement of the parties and supersedes
all other prior agreements or understandings, written or oral, among the parties
with respect to the subject matter hereof and may not be waived or modified, in
whole or in part, except by a writing signed by each of the parties hereto. No
waiver of any provision of this Escrow Agreement in any instance shall be deemed
to be a waiver of the same or any other provision in any other instance. Failure
of any party to enforce any provision of this Escrow Agreement shall not be
construed as a waiver of its rights under such provision.

            (e) The representations and warranties contained in this agreement
shall survive the execution and delivery hereof.

                                      -11-
<PAGE>

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

                                    CORPORATE PROPERTY ASSOCIATES 15
                                    INCORPORATED

                                    By:____________________________________
                                    Name:
                                    Title:

                                    DEUTSCHE BANK TRUST COMPANY AMERICAS

                                    By:____________________________________
                                    Name:
                                    Title:

                                    CAREY FINANCIAL CORPORATION

                                    By:____________________________________
                                    Name:
                                    Title:

Exhibit Index
Exhibit A - Fee Schedule

                                      -12-
<PAGE>

                                    EXHIBIT A
                                  FEE SCHEDULE

<TABLE>
<S>                                                                    <C>
Initial Fee                                                            $  15,000

Covers acceptance of appointment as Escrow
Agent, including complete study of drafts of
Escrow Agreement and all supporting documents
in connection therewith, conferences until
final Agreement is agreed upon, execution of
final Agreement, deposit of funds into the
escrow account and maintenance and custody
thereof.

Annual Administration Fee:                                             $  85,000
(Payable each year in advance)

Payment by check, per check
(only if interest is paid out)                                         $   10.00

Wire transfer of funds, per wire
(only if interest is paid out)                                         $   25.00

Preparation and filing appropriate
Federal tax forms, per 1099                                            $     N/A
</TABLE>

                                      -13-