Document:

AMENDMENT AND FEE WAIVER AGREEMENT
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     This  Amendment  and Fee Waiver  Agreement  dated as of June 30,  2006 (the
"Amendment and Fee Waiver  Agreement") is entered into by and between  Windswept
Environmental Group, Inc., a Delaware  corporation (the "Borrower"),  and Laurus
Master Fund, Ltd., a Cayman Islands company  ("Laurus").  Capitalized terms used
herein without  definition shall have the meanings ascribed to such terms in the
Securities  Purchase  Agreement  (as  defined  below)  and the Note (as  defined
below).

     WHEREAS, the Borrower filed a registration statement on October 3, 2005 (as
amended,  modified or supplemented,  the "Initial Registration  Statement"),  in
order to  register a portion of the shares of the  Borrower's  Common  Stock (as
amended, modified or supplemented, the "Common Stock") underlying (a) an Amended
and Restated  Secured  Convertible  Term Note the  Borrower  issued to Laurus on
October 6, 2005 in the aggregate  original  principal  amount of $7,350,000  (as
amended,  modified or  supplemented,  the  "Note")  pursuant to the terms of the
Securities Purchase  Agreement,  dated as of June 30, 2005, between the Borrower
and Laurus ( as amended,  modified or  supplemented,  the  "Securities  Purchase
Agreement"  and together  with the Related  Agreements as defined  therein,  the
"Loan  Documents");  (b) a warrant  issued by the Borrower to Laurus on June 30,
2005 to purchase 13,750,000 shares of the Common Stock (as amended,  modified or
supplemented, the "Warrant"); and (c) an option issued by the Borrower to Laurus
on June 30,  2005 to purchase  30,395,179  shares of Common  Stock (as  amended,
modified or supplemented, the "Option");

     WHEREAS,  the Borrower and Laurus  entered  into  Amendment  and Fee Waiver
Agreements dated as of November 23, 2005,  January 13, 2006,  February 28, 2006,
March 20, 2006, May 11, 2006 and June 12, 2006 (the "Amendments");

     WHEREAS,  pursuant  to Section 3.7 of the Note and Section 1 of each of the
Amendments,  the  Borrower  is  obligated  to reserve  from its  authorized  and
unissued shares of Common Stock a sufficient number of shares to provide for the
issuance of shares upon the full conversion and/or exercise of the Warrant,  the
Option and the Note after the  earlier to occur of (x)  November 1, 2006 and (y)
the  date  of  the  Borrower's  next   shareholders   meeting  (the  "Additional
Authorization Date"), which Additional Authorization Date shall be maintained;

     WHEREAS, pursuant to Section 6 of the Option and Section 1 of each of
the Amendments, the Borrower is obligated to reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance
of shares upon the full exercise of the Option, after the Additional
Authorization Date;

     WHEREAS,  pursuant to Section 6 of the Warrant and Section 1 of each of the
Amendments,  the  Borrower  is  obligated  to reserve  from its  authorized  and
unissued Common Stock a sufficient  number of shares to provide for the issuance
of  shares  upon  the  full  exercise  of  the  Warrant,  after  the  Additional
Authorization Date;

     WHEREAS,  the Securities Purchase Agreement sets forth, among other things,
the terms of the issuance of the Note, the Option and the Warrant;

<PAGE>

     WHEREAS,  pursuant to Section 4.3(d) of the Securities  Purchase  Agreement
and Section 1 of each of the  Amendments,  the  Borrower is obligated to reserve
from its authorized and unissued  Common Stock a sufficient  number of shares to
provide for the issuance of shares upon the full  conversion  and/or exercise of
the Note, the Warrant and the Option, after the Additional Authorization Date;

     WHEREAS,  the Borrower  entered into a registration  rights  agreement with
Laurus on June 30, 2005 (the  "Registration  Rights  Agreement") in order to set
forth  Borrower's  obligations to register the shares of Common Stock underlying
the  Note,  the  Option  and  the  Warrant  with  the  Securities  and  Exchange
Commission;

     WHEREAS,  the  parties  have  previously  agreed  that  in  order  to  most
efficiently  expedite the accomplishment of their respective goals, to: (a) work
toward having the Initial  Registration  Statement,  with the current  number of
shares included therein (but not including any shares  underlying the $1,350,000
note issued on October 6, 2005),  declared  effective as soon as  possible;  (b)
after the Initial  Registration  Statement is effective,  file a proxy statement
and hold a shareholders  meeting to approve the intended  increase in the number
of  authorized  shares;  and  (c)  after  the  shareholders  meeting  and  after
Borrower's June 30, 2006 audited  financial  statements are final, file a new or
post-effective  Registration  Statement(s)  to cover all of the shares of common
stock required to be registered  pursuant to the  Registration  Rights Agreement
(the "Second Registration Statement");

     WHEREAS,  to reassess the  foregoing  plan and to formulate a new plan that
accomplishes  the  objectives  of Laurus and the  Borrwer,  Laurus has agreed to
extend the deadline for the Borrower to have its Initial Registration  Statement
declared effective under the Registration Rights Agreement until July 21, 2006;

     WHEREAS,  the parties have concurred that,  until a new plan is formulated,
to  maintain  the  deadline  for the  Borrower  to have its Second  Registration
Statement declared effective under the Registration Rights Agreement at December
30, 2006;

     WHEREAS,  pursuant to Section 2(b) of the Registration Rights Agreement and
Section 2 of each of the  Amendments,  the  Borrower  is required to pay a daily
amount  in cash  equal to  one-thirtieth  (1/30th)  of the  product  of the then
outstanding  principal  amount  of the Note  multiplied  by the  following  (the
"Fees") if the  Registration  Statement has not been  declared  effective by the
Securities and Exchange Commission (prior to giving effect to this Amendment and
Fee Waiver Agreement):

         o        1.5% for the first 30 day period beginning on July 1, 2006;

         o        2.0% thereafter and

     WHEREAS,  Laurus has hereby  agreed to postpone  the date by which any Fees
may accrue  and  become  payable  until  July 22,  2006 with  respect to Initial
Registration Statement, but

<PAGE>

will,  until a new plan is formulated,  remain December 31, 2006 with respect to
the Second Registration Statement.

     NOW,  THEREFORE,  in consideration of the mutual promises set forth herein,
and for other good and valuable  consideration,  the receipt and  sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

     1. Extension of Deadline by which the Borrower must have the Securities and
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Exchange Commission Declare Effective its Initial Registration Statement. Laurus
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hereby  agrees to  postpone  the  deadline by which the  Borrower  must have the
Securities and Exchange  Commission  declare effective its Initial  Registration
Statement from June 30, 2006 until July 21, 2006. This modification  shall apply
to the Registration Rights Agreement only.

     2.  Postponement.  Laurus  hereby  agrees to postpone the date by which any
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Fees may accrue  and become  payable  until  July 22,  2006 with  respect to the
Initial Registration Statement.

     3. Laurus  Representations.  Laurus hereby  represents  and warrants to the
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Borrower  that Laurus is an  "accredited  investor" as defined in Rule 501(a) of
Regulation  D  promulgated  under the  Securities  Act of 1933 and a  "qualified
institutional  buyer" as defined in Rule 144A under the  Securities  Act of 1933
and has knowledge and experience in financial and business  matters such that it
is capable of  evaluating  the  merits  and risks of the  investment  to be made
hereunder.

     4. Borrower Representations. The Borrower hereby represents and warrants to
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Laurus  that (i) no Event of Default  exists on the date  hereof,  after  giving
effect to this Amendment and Fee Waiver Agreement,  (ii) on the date hereof, all
representations,  warranties  and  covenants  made by the Borrower in connection
with the Loan  Documents  are true,  correct and  complete and (iii) on the date
hereof, all the Borrower's and its Subsidiaries' covenant requirements have been
met.

     5. From and after the date hereof, all references in the Loan Documents and
in the other Related Agreements to the Post-Closing Letter shall be deemed to be
references to the Post-Closing Letter, as the case may be, as modified hereby.

     6. No Other Amendments. Except as expressly set forth in this Amendment and
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Fee Waiver  Agreement  no other term or  provision  of any Loan  Document or any
other  Amendment is hereby amended or affected in any way and the Loan Documents
and the Amendments shall remain in full force and effect after the date hereof.

     7. The Borrower understands that the Borrower has an affirmative obligation
to make prompt public disclosure of material amendments to such agreements.

     8. Governing Law. This Amendment and Fee Waiver Agreement shall be governed
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by and construed in accordance  with the laws of the State of New York,  without
regard to principles of conflicts of laws.

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<PAGE>

     9.  Facsimile  Signatures;  Counterparts.  This  Amendment  and Fee  Waiver
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Agreement  may  be  executed  by  facsimile  signatures  and in  any  number  of
counterparts,  each of which  shall be an  original,  but all of which  together
shall constitute one instrument.

     IN WITNESS  WHEREOF,  the parties  hereto have executed this Amendment as a
sealed instrument as of the date set forth in the first paragraph hereof.

                                  WINDSWEPT ENVIRONMENTAL GROUP, INC.

                             By:  /s/ Michael O'Reilly
                                  ---------------------------------
                                  Name:  Michael O'Reilly
                                  Title: President and Chief Executive Officer

                                  LAURUS MASTER FUND, LTD.

                             By:  /s/ David Grin
                                  -------------------------------
                                  Name:  David Grin
                                  Title: Director

                                       4Exhibit 10.1 

AGREEMENT FOR SALE AND PURCHASE 

     THIS AGREEMENT FOR SALE
AND PURCHASE (“Agreement”)
made and entered into  by and among Corporate Property Associates 12 Incorporated,
a Maryland corporation (“CPA:12”),
and the entities listed on Schedule 1 attached hereto and incorporated herein
(individually, a “Seller”,
and together, the “Sellers”),
each of whose address for purposes of this Agreement is c/o Corporate Property
Associates 12  Incorporated, 50 Rockefeller Plaza, New York City, NY 10020, CAREY
ASSET MANAGEMENT CORP., a Delaware corporation (“CAM”), and W.P. CAREY & CO.
LLC, a Delaware limited liability company, (the “Buyer”)
on behalf of single purpose entities to be formed for the purpose of acquiring
the Properties (as defined below) and assuming the Assumable Loans (as defined
below) (collectively, the
“SPV Purchasers” and
individually, a “SPV Purchaser”)
whose address is 50 Rockefeller Plaza, New York City, NY 10020. 

WITNESSETH:

     1. Subject to the terms and conditions hereinafter set forth, and for good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree that Sellers shall sell and
CPA:12 shall cause Sellers to sell, their respective interests in, and Buyer shall buy, assume and accept the properties, or the interest of the Sellers in and to the entities which own the properties, as such properties are described on
Exhibits “A-1” through “A-13” and on Schedule 1 attached hereto and incorporated herein (singularly, a “Land”, and collectively, the “Lands”), together with (i) all buildings and other improvements situated on the Lands (singularly, a “Building”, and collectively, the “Buildings”), (ii) all right, title and interest of Sellers in and to all easements, rights of way,
reservations, privileges, appurtenances, and other estates pertaining to the Lands and the Buildings, (iii) all right, title and interest of Sellers, if any, in and to the fixtures, machinery, equipment, supplies and other articles of personal
property attached or appurtenant to the Lands or the Buildings owned by Sellers and not by Tenants (collectively, the “Personal Property”), (iv) all right, title and interest of
Sellers, if any, in and to the trade name(s) of the Buildings and all other names, designations, logos, service marks and the appurtenant goodwill used in connection with the Properties (except for names and logos registered as CPA and CPA:12), (v)
all right, title and interest of Sellers, if any, in and to all strips and gores, all alleys adjoining the Lands to the center line thereof, and all right, title and interest of Sellers, if any, in and to any award made or to be made in lieu thereof
and in and to any unpaid award for any taking by condemnation or any damages to the Lands or the Buildings by reason of a change of grade of any street, road or avenue, (vi) all right, title and interest of Sellers, if any, in and to the leases for
the respective Lands and Buildings, together with any security deposits, letters of credit, guaranties, and/or together with any warrants delivered in connection with any of the leases, (vii) all right, title and interest of Sellers, if any, in, to
and under those purchase orders, equipment leases, and managements, service, advertising, franchise and license agreements and other contracts and agreements relating to the ownership and use of the applicable Land and Building and Personal Property
(collectively, the “Service Agreements”), (viii) all right, title and interest of Sellers, if any, in, to and under all
guaranties, warranties and agreements (express or implied) from contractors, subcontractors, vendors and suppliers, if any, regarding their performance, quality of workmanship and quality of materials supplied in connection with the construction,
manufacture, development, installation and operation of any and all Buildings and Personal Property (collectively, the “Warranties”), (ix) to the extent transferable, certificates,
licenses, permits, authorizations, consents, authorizations, approvals and variances, if any, by any governmental or quasi-governmental authority, including, without limitation, a letter or certificate regarding the zoning of each of the Lands from
the applicable local office(s) (collectively, the “Permits”), (x) all right, title and interest of the Sellers in and to any intercompany debt (“Intercompany Debt”) from the shareholders of any Seller to such Sellers and (xi) all liabilities and obligations relating to the Land and items 

 

described in clauses (i) - (xi) (the Lands, the Buildings and all of the foregoing items listed in clauses (i) - (xi) above being hereinafter sometimes singularly referred to as a “Property”, and collectively referred to as the “Properties”). The transaction contemplated by this Agreement contemplates the sale
and purchase of all, but not less than all, of the Properties. Each Seller executes this Agreement for the sole purpose of agreeing to the provisions of this Agreement as the same relate to the Property owned by such Seller as indicated on the
applicable Exhibit “A-1 through A-13”. The rights, obligations, representations, warranties and liabilities of each Seller pertain only to such Seller and to the Property owned by
said Seller as indicated on the applicable Exhibit “A-1 through A-13”. 

     2. PURCHASE PRICE. 

          (a) The aggregate purchase price (“Purchase Price”) for the Properties is
One Hundred Ninety-Nine Million, Two Hundred Forty-Two Thousand, Four Hundred Fifty-Three and No/100 Dollars [($199,242,453.00)], which shall be allocated among the Properties in accordance with the allocation schedule set forth on Exhibit “B” attached hereto and incorporated herein. The Purchase Price shall be payable (i) in cash in the amounts set forth in the Cash Purchase Price column opposite the applicable Property on
Exhibit B attached hereto and incorporated herein (“Cash Purchase Price”) and (ii) by the assumption of the loans encumbering the applicable Property identified on Exhibit “C” attached hereto and incorporated herein (“Assumable Loans”); provided, that the amounts set forth on Exhibit B
shall be binding on Buyer for purposes of the Cash Purchase Price payable at Closing (as defined below) under this Section 2; and provided further, that promptly following the Closing, Buyer and CPA:14 (as successor to CPA:12) shall adjust the
Purchase Price to reflect the actual outstanding loan balances of all the Assumable Loans on the Closing Date, and to the extent that the outstanding loan balances on the Closing Date are less than those balances reflected on Exhibit B, CPA:14 (as
successor to CPA:12) shall promptly make payment to Buyer of such difference. The obligation of Buyer and CPA:14 (as successor to CPA:12) shall survive the Closing and the Merger. 

          (b) Buyer shall be obligated to assume the Assumable Loans and to obtain any required approvals from the lenders thereof and to pay, in
addition to the Purchase Price, any assumption fees, transfer fees and/or other costs and expenses incurred in connection with the assumption of each Assumable Loan; if an Assumable Loan is not permitted to be assumed, Buyer shall pay the Loan in
full, and in addition to the Purchase Price, any applicable prepayment penalty or other fee or costs payable in connection with, or associated with, the prepayment of such loan. Buyer and Seller shall exercise good faith reasonable efforts to obtain
the lenders’ approval. 

          (c) The Cash Purchase Price shall be payable by wire transfer of immediately available funds at the Closing (as hereinafter defined). Buyers
and Sellers further agree that Sellers may continue to market and sell any or all of the Properties prior to the Closing, and if any of the Properties are sold and closed prior to the Closing (any such Property, a “Transferred Property”), such Transferred Property shall be released from the terms hereof, and the Purchase Price hereunder shall be reduced
by the amount of the Purchase Price allocated to such Transferred Property as set forth on Exhibit “B”. 

     3. PURCHASE PRICE PAYMENT. 

          (a) CPA:12 or Sellers may direct that the Cash Purchase Price be paid by confirmed federal wire transfer of immediately available funds to
CPA:12 or to Sellers, and Buyer agrees to make such payment as directed. 

2 

          (b) It is understood that CPA:12 will designate a paying agent (“Paying
Agent”) to receive and distribute the Additional Consideration to CPA:12’s stockholders on behalf of CPA:12, and will notify Buyer of the identity of such Paying Agent as soon as
practicable.

     4. PROPERTY CONVEYED “AS-IS, WHERE-IS”. Buyer hereby acknowledges that through a wholly-owned
subsidiary it has been managing the Properties for the Sellers and is intimately familiar with the Properties and all portions thereof, and the titles thereto, encumbrances thereon, physical condition thereof and of all improvements thereon, leases
affecting portions thereof, tenants and occupants thereof, Service Agreements and operations (including all costs, expenses and revenues from the ownership of each Property). As a result thereof, Buyer agrees as follows: 

     EXCEPT AS SPECIFICALLY
    SET  FORTH IN SECTION 10 HEREOF, NO SELLER IS MAKING AND HAS NOT AT ANY TIME
    MADE ANY WARRANTIES OR REPRESENTATIONS OF
    ANY KIND OR CHARACTER, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE PROPERTIES,
    INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY,
    MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S WARRANTY
    OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, PHYSICAL
    OR ENVIRONMENTAL CONDITION, OPERATING HISTORY OR PROJECTIONS, VALUATION,
    GOVERNMENTAL APPROVALS, GOVERNMENTAL REGULATIONS, THE TRUTH, ACCURACY OR
    COMPLETENESS OF THE ITEMS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF
    OF SUCH SELLER TO BUYER OR ANY OTHER MATTER OR THING REGARDING ANY OF THE
    PROPERTIES. UPON CLOSING, EACH SELLER SHALL SELL AND CONVEY TO BUYER, AND
    BUYER SHALL ACCEPT THE RESPECTIVE PROPERTIES “AS IS, WHERE IS, WITH
    ALL FAULTS.” BUYER
    HAS NOT RELIED UPON AND WILL NOT RELY UPON EITHER DIRECTLY OR INDIRECTLY,
    ANY REPRESENTATION OR WARRANTY OF ANY SELLER WITH RESPECT TO ANY OF THE PROPERTIES
    EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN.
    BUYER HAS PREVIOUSLY CONDUCTED SUCH INVESTIGATIONS
    OF THE PROPERTIES, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL
    CONDITIONS THEREOF, AS BUYER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE
    CONDITION OF THE PROPERTIES AND WILL RELY  SOLELY UPON SAME. UPON CLOSING,
    BUYER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED
    TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY NOT HAVE BEEN REVEALED BY BUYER’S INVESTIGATIONS. BUYER,
UPON CLOSING, HEREBY WAIVES, RELINQUISHES AND RELEASES SELLERS, AND EACH OF THEM,
FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF  ACTION (INCLUDING CAUSES
OF ACTION IN TORT [I.E., NEGLIGENCE AND STRICT LIABILITY]), LOSSES, DAMAGES,
LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES
AND COURT COSTS) (COLLECTIVELY, “CLAIMS”)
OF ANY KIND AND EVERY KIND OR CHARACTER, KNOWN
OR UNKNOWN, WHICH BUYER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLERS, AND EACH
OF THEM, AT ANY TIME BY REASON OF OR ARISING OUT OF ANY CONSTRUCTION DEFECTS,
PHYSICAL AND ENVIRONMENTAL CONDITIONS, THE VIOLATION
OF ANY APPLICABLE LAWS AND ANY AND ALL OTHER MATTERS REGARDING THE PROPERTIES,
OR ANY OF THEM.

     5. BUYER AND SELLER CONTINGENCY. 

          (a) The obligation of Buyer hereunder to close is subject to satisfaction, as evidenced by a written confirmation thereof from Corporate
Property Associates 14, 

3 

Incorporated, a Maryland corporation (“CPA14”), of all conditions precedent to the merger (the “Merger”) of CPA:12 with and into CPA:14 (or, if applicable, in accordance with the provisions for an “Alternate Merger” as set forth and defined in that certain Agreement and Plan of Merger dated June 29, 2006 (“Merger
Agreement”) by and among CPA:12, CPA:14, CPA 14 Acquisition, Inc., CPA 12 Merger Sub Inc. and CPA Holdings Incorporated), other than the closing of the transactions contemplated by this Agreement and other than those which by their nature, are
satisfied at closing of the Merger. It is understood, however, that the delivery of certain documents to effectuate the actual Merger of CPA:12 with and into CPA:14 (or, if applicable, in accordance with the provisions for an Alternate Merger under
the Merger Agreement)shall not occur until subsequent to the closing of the transactions contemplated hereby and is not a contingency to this transaction. 

          (b) The obligation of CPA:12 to close and to cause each Seller hereunder to close and the obligation of each Seller hereunder to close, is
subject to satisfaction, as evidenced by a written confirmation thereof from CPA:14 of all conditions precedent to the Merger of CPA:12 with and into CPA:14 (or, if applicable, or in accordance with the provisions for the Alternate Merger under the
Merger Agreement), other than the closing of the transactions contemplated by this Agreement and other than those which by their nature, are satisfied at closing of the Merger. It is understood, however, that the delivery of certain documents to
effectuate the actual Merger of CPA:12 with and into CPA:14 (or, if applicable, in accordance with the provisions for the Alternate Merger under the Merger Agreement) shall not occur until subsequent to the closing of the transactions contemplated
hereby and is not a contingency to this transaction.

     6. ADDITIONAL CONSIDERATION. 

          (a) As an additional material inducement to the Sellers to enter into this Agreement, Buyer covenants and agrees that if (i) an SPV Purchaser
or its affiliates enters into a definitive agreement within six (6) months after the Closing Date hereunder to sell any of the Properties or its respective interests in any of the Properties and does thereafter sell, convey or transfer said Property
or its interest in said Property in accordance with the terms of said definitive agreement (whether or not the closing of such subsequent sale occurs within said six (6) months after the Closing Date), or (ii) if an SPV Purchaser or its affiliates
otherwise sells and closes on the conveyance of a Property or other transfer of its interest in and to a Property within six (6) months after the Closing Date, then, in either such event, such SPV Purchaser or its affiliates will promptly pay to the
Paying Agent following receipt of the Net Proceeds (as hereinafter defined) and completion of the process specified in Section 6(d) or (e), as applicable, an amount equal to eighty-five percent (85%) of the positive difference, if any, between (a)
the Total Cost paid to Seller hereunder for the purchase of such Property or interest therein by such SPV Purchaser [“Total Cost” shall mean the sum of the Purchase Price allocated
thereto per Exhibit “B” attached hereto, less the Assumable Loan, if any, applicable to said Property and outstanding on the Closing Date and less all third party costs and legal
fees incurred by such SPV Purchaser in connection with such purchase (including the portion of the costs and expenses to close the purchase of the Property, or interests therein, by the applicable SPV Purchaser reasonably allocated by the Buyer to
such Property)] and (b) the Net Proceeds received by such SPV Purchaser from the sale and closing of such Property or interest therein (for purposes hereof, Net Proceeds will be equal to the purchase price paid to Buyer or SPV Purchaser or its
affiliates for such Property or interest therein, less (i) any loan(s) assumed by said purchaser of the Property, (ii) all third party costs and legal fees incurred by Buyer to close such sale (but excluding any fees paid or payable to Buyer in
respect of such sale), (iii) the cost for any improvements made to the Property during Buyer’s ownership and (iv) the cost of any prepayment premium or to purchase any defeasance collateral). Sellers hereby acknowledge that Buyers shall have
sole and unlimited discretion to determine the purchase price and terms and provisions relating to sale, of any of the Properties or interest of Sellers therein and shall have no 

4 

obligation to market or sell any Property). Notwithstanding the foregoing, the amount retained by the Buyer or its affiliates as a fee, incentive or similar payment or benefit in respect of such sale, shall not exceed the fee that
would have been payable to CAM under the Acquisition Services Agreement (as hereinafter defined) by CPA: 12 had CPA: 12 sold the applicable Property directly to the third party buyer as of immediately prior to the termination of the Acquisition
Services Agreement. 

          (b) The Buyer and Seller acknowledge that the right to receive additional consideration pursuant to subparagraph (a) above is, (i) not intended
in any way to constitute a security of Buyer, (ii) an integral part of the consideration for the sale of the Properties hereunder and is not an investment or ownership interest in Buyer, (iii) a contract right, and (iv) once distributed to
stockholders of CPA:12, not transferable under any circumstances (including by merger), except with respect to a trust or a natural person by operation of the laws of descent and inheritance or similar such transfer. Sellers hereby further agree
that upon payment of any Additional Consideration payable by Buyer to the Paying Agent designated by CPA:12, Buyer is released from any further liability or obligation with respect to the sold Property and from any obligation for the proper
distribution of such Additional Consideration by the Paying Agent. 

          (c) CPA:12 shall designate on or prior to the Closing a person who shall serve as the CPA:12 shareholders’ representative for purposes of
the determination of the Additional Consideration (the “Designee”) and shall provide written notice of the name and address of the Designee on or prior to the Closing. The Designee
shall be entitled to act on behalf of such shareholders and Buyer shall be entitled to rely upon the actions, communications and agreements of the Designee with respect to the Additional Consideration. CPA:12 may replace the Designee with not less
than three (3) Business Days advance written notice to Buyer. 

          (d) Buyer’s determination of any Additional Consideration shall be forwarded to the Designee no later than ten (10) business days after
the determination by Buyer of such Additional Consideration. Buyer shall provide the Designee with detailed back-up documentation underlying the determination and with access to the data it used to determine the Additional Consideration upon
request, including reasonable access to the employees of Buyer who calculated the Additional Consideration and contributed to such calculation. Designee shall review the calculation of the Additional Consideration within fifteen (15) business days
after delivery thereof and notify Buyer in writing of any disagreement with such calculation. If within such fifteen (15) business days following delivery Designee does not object in writing thereto, then Buyer’s determination of the Additional
Consideration shall be conclusive. 

          (e) If Designee so objects in writing to Buyer’s computation, then Buyer and Designee shall negotiate in good faith and attempt to resolve
their disagreement. Should such negotiation not result in an agreement within twenty (20) business days of receipt by Buyer of Designee’s objection, then the matter shall be submitted to arbitration by an independent accounting firm. All fees
and expenses relating to appointment of an independent accounting firm and the work, if any, to be performed by such independent accounting firm will allocated 50% to Buyer and 50% to CPA:14, as successor to CPA:12; provided that the accounting firm shall be instructed to make a determination to equitably allocate such costs to Buyer or to CPA:14, as successor to CPA:12 if the firm determines there is a compelling
equitable reason to do so instead of allocating the costs equally, and in such case the costs shall be so allocated. The independent accounting firm shall deliver to Buyer and Designee a written determination (such determination to include a
worksheet setting forth all material calculations used in arriving at such determination and to be based solely on information provided to the independent accounting firm by Buyer and Designee, or their respective affiliates) of the disputed items
within thirty (30) days of receipt of the disputed items, which determination shall be final, binding and conclusive on the parties in the absence of manifest error. 

5 

          (f) Promptly following agreement on or determination of the final, binding and conclusive calculation of the Additional Consideration, Buyer
shall pay such Additional Consideration to the Designee or as directed by Designee as soon as practicable. 

          (g) Unless there is a clear commercial reason or justification for doing so, other than to avoid having to pay excess gain as Additional
Consideration hereunder, Buyer agrees not to (and agrees to use its reasonable best efforts to cause other parties under Buyer’s control, or acting on Buyer’s behalf not to) delay the signing of a transaction that would be taken into
account in determining the Additional Consideration if such transaction was consummated. 

     7. TITLE COMMITMENTS AND POLICIES. Buyer may order an update of title in order for Fidelity National Title
Insurance Company (“Title Company”) to issue title commitments (collectively, “Commitments”) for the
Properties, together with copies of all documents shown as title exceptions in the Commitments (“Title Documents”). Buyer acknowledges that it is familiar with the title to the
Properties and except for any mortgage/deed of trust (other than first priority mortgages/deeds of trusts securing the Assumable Loans), judgment or other monetary lien created or caused by Sellers (collectively, “Liens”), which Sellers shall satisfy at Closing, Sellers shall have no obligation to eliminate or cure any other title exceptions, and Buyer will proceed to Closing subject to all other matters
affecting the title to the Properties.

     8. TIME OF CLOSING. The Closing (“Closing”) shall occur immediately following satisfaction of the respective Buyer’s and Seller’s Contingency set forth in Section 5 above and prior to closings of the merger of CPA:12 with and into CPA:14 (or, if applicable,
pursuant to the Alternate Merger under the Merger Agreement), at a time and location mutually agreed to by Sellers and Buyer (“Closing Date”). 

     9. POSSESSION. Possession of the Properties shall be delivered as of the Closing Date subject to all leases and matters of record or apparent from an inspection of the Property or as may be shown on a survey.

     10. REPRESENTATIONS AND COVENANTS OF SELLERS. Each Seller expressly covenants, represents and warrants to
Buyer as to itself and as to each Property in which such Seller has an interest, as follows: 

          A. Such Seller is the fee simple owner of such Property. 

          B. Such Seller is a duly formed and validly existing entity in good standing under the laws of its state of organization and is qualified to do
business in the state(s) in which it is legally required to be so qualified. 

          C. Such Seller has full right, power and authority to execute, deliver and perform its obligations under this Agreement and has taken or will
take all necessary action and obtained all necessary consents to authorize the execution, delivery and performance of this Agreement and all documentation required to effectuate the full intent and purposes of this Agreement, and this Agreement is
enforceable against such Seller. 

          D. There is no legal action pending, or to the knowledge of such Seller, threatened against such Seller, which relates and materially adversely
affects such Property or otherwise materially adversely affects such Seller’s ability to perform such Seller’s obligations hereunder. 

6 

          E. No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of creditors, or petition seeking reorganization or
arrangement or other action under federal or state bankruptcy laws is pending against or contemplated by such Seller. 

          F. Such Seller is not a foreign person within the meaning of Section 1445(f) of the Internal Revenue Code of 1986, as amended. 

          G. Such Seller has at all times been in compliance with and will continue to be in compliance through the Closing Date with (a) the Patriot
Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the Money Laundering Control Act of 1986, and laws relating to the prevention and detection of money laundering in 18 U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the
International Emergency Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms Export Control Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app.
§§ 1-44), and 13 U.S.C. Chapter 9 and (c) the Foreign Asset Control Regulations contained in 31 C.F.R., Subtitle B, Chapter V. 

     All representations and warranties of each Seller set forth in this Agreement and the conditions and circumstances contained herein shall be effective, valid, true and correct on the Closing Date and
the representations and warranties of each Seller shall survive the Closing for a period of six (6) months. 

     11. REPRESENTATIONS AND COVENANTS OF BUYER. Buyer expressly covenants, represents and warrants to Sellers, as
follows: 

          A. Buyer is a duly formed and validly existing limited liability company in good standing under the laws of the State of Delaware. 

          B. Buyer has full right, power and authority to execute, deliver and perform its obligations under this Agreement and has taken all necessary
action and obtained all necessary consents to authorize the execution, delivery and performance of this Agreement and all documentation required to effectuate the full intent and purposes of this Agreement, and this Agreement is enforceable against
Buyer. 

          C. There is no legal action pending or to Buyer’s knowledge threatened against Buyer which would materially affect the ability of Buyer to
carry out the transactions contemplated by this Agreement. 

          D. No petition in bankruptcy (voluntary or otherwise), assignment for the benefit of creditors, or petition seeking reorganization or
arrangement or other action under federal or state bankruptcy laws is pending against or contemplated by Buyer. 

          E. Buyer has at all times been in compliance with and will continue to be in compliance through the Closing Date with (a) the Patriot Act, Pub.
L. No. 107-56, the Bank Secrecy Act, 31 U.S.C. § 5311 et seq., the
Money Laundering Control Act of 1986, and laws relating to the prevention and detection of money laundering in 18 U.S.C. §§ 1956 and 1957; (b) the Export Administration Act (50 U.S.C. §§ 2401-2420), the International Emergency
Economic Powers Act (50 U.S.C. § 1701, et seq.), the Arms Export Control Act (22 U.S.C. §§ 2778-2994), the Trading With The Enemy Act (50 U.S.C. app. §§ 1-44), and
13 U.S.C. Chapter 9; (c) the Foreign Asset Control Regulations contained in 31 C.F.R., Subtitle B, Chapter V; and (d) any other civil or criminal federal or state laws, regulations, or orders of similar import. 

          F. Buyer has, and shall have, sufficient resources available to consummate all the transactions contemplated hereby, including paying the
Purchase Price to Sellers in cash. 

7 

     All representations and warranties of Buyer set forth in this Agreement and the conditions and circumstances contained herein shall be effective, valid, true and correct on the Closing Date and the
representations and warranties of Buyer shall survive the Closing for a period of six (6) months. 

     12. CONVEYANCE. Except as otherwise set forth in Section 14 below, Sellers shall convey title to the
Properties to Buyer by Special or Limited Warranty Deeds (collectively, “Deeds”) subject only to: (i) zoning and/or restrictions and prohibitions imposed by governmental
authorities to which Buyer has not objected; (ii) covenants, conditions, restrictions, easements and other matters of record or apparent from an inspection of the Properties or a survey of the Properties, (iii) the Assumable Loans and the documents
evidencing or securing the Assumable Loans; and (iv) taxes and assessments which are a lien, but not yet due and payable. 

     13. DOCUMENTS FOR CLOSING. At Closing, Sellers shall deposit in escrow with Fidelity National Title Insurance
Company (the “Escrow Agent”), the following executed documents (the “Transfer Documents”): 

          (1) Special/Limited Warranty Deeds for each Property; 

          (2) Bills of Sale for each Property; 

          (3) FIRPTA Affidavits for each Seller; 

          (4) Counterparts of the Assignment and Assumption of Leases for each Property; 

          (5) Counterparts of the Assignment and Assumption of Service Agreements for each Property; 

          (6) Security Deposits/Letters of Credit released or amended, together with any warrants held
            under or in connection with any lease; 

          (7) Counterparts of the Assignment and Assumption of Intercompany Debt Documents for such applicable Property; 

          (8)
  A resolution from the Board of directors of CPA:12 authorizing the sale of each Property; and 

          (9) Such other documents as Buyer shall reasonably request to evidence
                  the purchase and transfer of the Properties. 

     At Closing, Buyer shall deposit in escrow with the Escrow Agent, the following executed documents: 

          (1) Counterparts of the Assignment of and
  Assumption of Leases; 

          (2) Counterparts of the Assignment and Assumption of Contracts; and 

          (3) Counterpart of the Assignment and
      Assumption of the Intercompany Debt Documents for such applicable Property. 

     14. TRANSFER OF INTERESTS IN LIEU OF CONVEYANCE OF PROPERTY TITLE.

8 

          (a) In lieu of the Transfer Documents to convey title in and to the Properties referenced in Section 13 above, transfer of one or more of the
Properties may be implemented and effectuated through a merger of the applicable Seller with and into the applicable SPV Purchaser or SPV Purchasers and/or through a transfer and conveyance of membership, shareholder and/or partnership interests of
the member, shareholder and/or partner of the applicable Seller or Sellers to the applicable SPV Purchaser or SPV Purchasers (or to another entity or entities affiliated with the Buyer and/or applicable SPV Purchaser designated in writing by the
Buyer and/or applicable SPV Purchaser). 

          (b) Buyer may designate, upon written notice to the applicable Seller, which transactions will be implemented through a merger transaction
and/or a transfer and conveyance of such membership, partnership or shareholder interest, and such Seller will cooperate with Buyer to effectuate such merger(s) and/or transfers of interests.

          (c) With respect to such merger or transfer of an interest transaction, the applicable Seller shall provide one or more of the documents
specified in Section 13, modified as applicable, to reflect the structure of the transfer.

     15. EXPENSES. 

          A. Buyer shall pay the following costs: 

               (1) The escrow fee; 

               (2) The cost of recording the Transfer Documents and/or to effectuate the mergers and/or transfers of interest contemplated under Section 14
above; 

               (3) Loan assumption fees; and 

               (4) Any transfer or conveyance tax charged on or for the recording of the Transfer Documents and
    any tax charged in connection with any merger and/or the transfer of interests consummated pursuant to Section 14 above. 

          B. Sellers shall pay any costs to be borne by Sellers and specifically provided for in this Agreement and the cost of the Paying Agent and the
Designee.

     16. PRORATION
OF TAXES (REAL AND PERSONAL); UTILITIES; CONTRACTS.
Escrow Agent shall prorate all taxes and assessments as of the date of Closing
according to the calendar year, using the last available County Treasurer’s/local
taxing body’s
tax duplicate or tax bills for the purpose of closing the transaction. When the
actual amount of such taxes becomes known, Sellers and Buyer shall adjust the
actual tax proration between themselves. To the extent utilities are in the name
of any Seller, Sellers and Buyer shall work together to notify utility companies
and vendors of the Closing and transfer all utilities as of the Closing Date.
Sellers shall provide Buyer with a letter of authorization in customary form
to assist with this process. Sellers shall be entitled to a refund of all utility
deposits and shall pay all utilities up to and including the Closing. Buyer shall
be responsible for all utilities and Service Agreements assumed by Buyer from
and after the Proration Date (as hereinafter defined). Buyer and Sellers agree
that the proration provided for in this section shall take place promptly following
the Merger and shall not be reflected on the Settlement statement(s) to be delivered
at Closing and shall not affect the Cash Purchase Price payable by Buyer at Closing;
the obligation of Buyers and Sellers hereunder shall survive the Closing and
the Merger. 

     17. PRORATION OF RENTS AND INTEREST ON ASSUMABLE LOANS AND ON THE INTERCOMPANY
DEBT. Sellers shall pay or cause to be paid to Buyer, in cash at 

9 

Closing, the amount of any security deposits relating to the Properties (and/or deliver to Buyer at Closing any applicable letters of credit held by such Sellers in lieu of security deposits) and prepaid rents paid to Sellers by
tenants as of the Proration Date. The prorations shall be computed on a monthly basis based upon the actual number of days in the calendar month. No proration shall be made for rents delinquent as of the Closing Date (“Delinquent Rents”). Any Rents collected after Closing shall first be applied to current rent and then to Delinquent Rents. In addition, interest occurring under the Assumable Loans and on the
Intercompany Debt shall be prorated the Proration Date. Buyer and Sellers agree that the proration provided for in this section shall take place promptly following the Merger and shall not be reflected on the Settlement statement(s) to be delivered
at Closing and shall not affect the Cash Purchase Price payable by Buyer at Closing; the obligation of Buyers and Sellers hereunder shall survive the Closing and the Merger. 

     18. PRORATION DATE. Taxes and assessments, insurance, assumed interest, rents, and other expenses and revenue
of the Properties shall be prorated through 11:59 P.M. on the day prior to Closing (“Proration Date”). 

     19. TERMINATION
       OF ACQUISITION SERVICES AGREEMENT AND AMENDED
       AND RESTATED ADVISORY AGREEMENT; WAIVER AND DISCHARGE..
       CPA:12 and CAM hereby agree to and do terminate that certain Acquisition
       Services Agreement ("Acquisition Services Agreement"),
       dated as of June 28, 2000, between the Seller and CAM, as amended, effective
       concurrently with the Closing hereunder, and CPA:12 and Buyer agree to
       and do terminate that certain Amended and Restated Advisory Agreement
       ("Advisory Agreement") dated as of February 17, 2005, by and between CPA:12 and Buyer, effective
concurrently with the Closing. In connection with such mutual termination of the Acquisition Services Agreement, (A) CPA:12 (or its successors) agrees to pay CAM at Closing in full (i) the “Termination Fee” as defined in the Acquisition
Services Agreement and (ii) the “Subordinated Disposition Fees” as
defined in the Acquisition Services Agreement, and (B) CAM and its affiliates
hereby waive any right to collect any other fees under such agreement from CPA:12
or its successors and assigns, including CPA:14, and agree that as of the Closing
and upon such payment of the sums under (A) above, all of CPA:12's obligations
under such agreement will have been fully and completely discharged. In connection
with the mutual termination of the Advisory Agreement, (X) CPA:12 (or its successors)
shall pay in full at Closing all amounts payable under Section 20(a) of the Advisory
Agreement and (Y) Buyer and its affiliates waive any right to collect any other
fees under such agreement from CPA:12 or its successors and assigns, including
CPA:14, and agree that as of the Closing and upon payment of the sums under (X)
above, all of CPA:12's obligation under such agreement will have been fully and
completely discharged. This section may be enforced by the successors and assigns
of CPA:12 and purchasers of a substantial portion of its assets. 

     20. COMMUNICATIONS. All notices, demands, requests, consents, approvals, waivers or other communications shall
be in writing and shall be deemed to be delivered (i) when mailed, upon receipt or refusal thereof, (ii) when delivered by a nationally recognized overnight courier service, upon confirmation of delivery by the courier service or refusal thereof or
(iii) when sent by confirmed telecopy, upon receipt, and addressed to the parties as follows: 

  
    If to Sellers, to the applicable Seller or Sellers

      addressed as follows:

      [Name of Seller] 

      c/o Corporate
        Property Associates 12 Incorporated

      50 Rockefeller Plaza

      New York City, NY
      10020

      Attn: Director, Asset Management 

  

10 

  
    
      Fax Number: 212-492-8922 

    
      with a copy to: 

      Clifford Chance US, LLP

      31 West 52nd Street

      New
      York, NY 10019-6131

      Attn: Kathleen L. Werner, Esq.

      Fax Number: 212-878 8375 

    
      And to: 

      Greenberg, Traurig, LLP

      200 Park Avenue

      New York,
      NY 10166

      Attn: Ivan J. Presant,
      Esq.

      Fax Number: 212-801-6400 

    
      If to Buyer, to the address as follows:

      W.P. Carey & Co.
        LLC

      50 Rockefeller Plaza

      New York City, NY 10020

      Attn: Director, Asset Management

      Fax Number: 212-492-8922 

    
      with a copy to:

      Reed Smith, LLP

      599 Lexington, Avenue

      New York, NY 10022-7650

      Attn: Ruth S. Perfido, Esq.

      Fax
      Number: 212 521-5450

  

     21. EFFECTIVE DATE OF AGREEMENT. The effective date (“Effective
Date”) of this Agreement shall be the last date that this Agreement is executed either by Sellers or by Buyer. 

     22. ATTORNEY’S FEES AND COSTS. Subject to the terms of Section 6 hereinabove, in connection with any
litigation arising out of this Agreement, each party shall pay its own legal fees and costs incurred in connection with such litigation, appellate proceedings and post-judgment proceedings. 

     23. BROKERAGE. Buyer and Sellers each represent and warrant to the other that neither has had any dealings
with any person, firm, broker or finder in connection with the negotiations of this Agreement and/or the consummation of the purchase and sale contemplated hereby, and no broker or person, firm or entity is entitled to any commission or
finder’s fee in connection with this Agreement or this transaction. Buyer and Sellers do each hereby indemnify, defend, protect and hold the other harmless from and against any costs, expenses or liability for compensation, commission or
charges which may be claimed by any broker, finder or other similar party by reason of any actions of the indemnifying party.

11 

     24. CONDEMNATION AND CASUALTY. 

          A. CONDEMNATION. Buyer hereby agrees to assume the risk during the term of this Agreement for any threatened
or commenced condemnation or eminent domain. Sellers shall promptly notify Buyer of any threatened or commenced condemnation or eminent domain proceedings affecting any Property. In the event that all or any portion of a Property shall be taken in
condemnation or by conveyance in lieu thereof or under the right of eminent domain or formal proceedings have been initiated therefor after the Effective Date and before the Closing Date, Buyer, nonetheless, shall be obligated to proceed to close
the transaction contemplated herein pursuant to the terms hereof, in which event the applicable Seller or Sellers shall deliver to Buyer or the applicable SPV Purchaser at the Closing any proceeds actually received by such Sellers attributable to
such Property from such condemnation or eminent domain proceeding or conveyance in lieu thereof and assign to Buyer or the applicable SPV Purchaser such Sellers’ rights to any such proceeds not yet received by such Sellers, and there shall be
no reduction in the allocated portion of the Purchase Price for such Property.

          B. CASUALTY. Buyer hereby agrees to assume the risk during the term of this Agreement for any casualty or
damage affecting any Property. Sellers shall promptly notify Buyer of any casualty affecting any Property. In the event that all or any portion of a Property shall be damaged or destroyed by fire or other casualty after the Effective Date and before
the Closing Date, Buyer, nonetheless, shall be obligated to close the transaction contemplated herein according to the terms hereof, notwithstanding such casualty loss, and Sellers shall either (i) deliver to Buyer or the applicable SPV Purchaser at
the Closing any insurance proceeds actually received by Sellers attributable to the Property from such casualty, or (ii) assign to Buyer or the applicable SPV Purchaser all of Sellers’ right, title, and interest in any claim under any
applicable insurance policies in respect of such casualty, together with payment to Buyer of an amount equal to the deductible(s), if any, applicable to such loss under the insurance policy(ies), and there shall be no reduction in the allocated
portion of the Purchase Price for such Property. 

     25. DEFAULT. 

          A. SELLERS’ DEFAULT; BUYER’S SOLE REMEDIES. If, after written demand, any Seller fails to consummate
this Agreement in accordance with its terms (other than by reason of (i) Buyer’s breach of any of its representations or warranties contained in this Agreement; (ii) Buyer’s continuing default of any of its material covenants hereunder
after ten (10) days’ prior written notice of such default; (iii) a termination of this Agreement by Sellers or Buyer pursuant to a right to do so expressly provided for in this Agreement; or (iv) the failure of the satisfaction of any condition
or contingency herein), Buyer may either (1) terminate this Agreement by written notice to Sellers, in which event all further rights and obligations of the parties hereunder will terminate or (2) pursue specific performance of this Agreement,
provided, however, that such action in equity for specific performance is commenced by Buyer duly and properly filing and serving a complaint within sixty (60) days after a default by Seller. Notwithstanding
anything to the contrary in this Agreement, the Buyer may not terminate this
Agreement or refuse to close the transactions contemplated hereby unless the
breach of a representation, warranty or covenant by a Seller has a material adverse
effect on the Properties, taken as a whole. In the event of any Seller’s
continuing default after Closing in any of its representations, warranties or
covenants in this Agreement which survive Closing or any documents delivered
by any Seller at Closing, and such default continues for more than thirty (30)
days after written notice of such default from Buyer, Buyer shall be entitled
to pursue its remedies available at law or in equity. 

          B. BUYER’S DEFAULT; SELLERS’ SOLE REMEDIES. If after written demand, Buyer fails to consummate this
Agreement in accordance with its terms (other than by reason of (i) Sellers’ breach of any of its representations or warranties contained in this 

12 

Agreement; (ii) Sellers’ continuing default of any of its material covenants after ten (10) days’ prior written notice of such default; (iii) a termination of this Agreement by Sellers or Buyer pursuant to a right to do
so expressly provided for in this Agreement; or (iv) the failure of the satisfaction of any condition or contingency herein), Sellers may either terminate this Agreement, in which event all further rights and obligations of the parties hereunder
will terminate, or Seller may also pursue specific performance of this Agreement. Notwithstanding anything to the contrary in this Agreement, the Sellers may not terminate this Agreement or refuse to close the transactions contemplated hereby unless
the breach of a representation, warranty or covenant by the Buyer has a material adverse effect on the Properties, taken as a whole. Buyer acknowledges that monetary damages are not sufficient to adequately compensate Sellers for a default by Buyer
hereunder. In the event of Buyer’s continuing default after Closing in any of its representations, warranties or covenants in this Agreement which survive Closing or any documents delivered by Buyer at Closing, and such default continues for
more than thirty (30) days after written notice of such default from Sellers, Sellers shall be entitled to pursue any remedies available at law or in equity. 

          C. NO DEFAULT; MUTUAL TERMINATION. This Agreement may be terminated at any time prior to the Closing Date:

               (a) by mutual written consent of each of Buyer and Sellers, but conditioned upon the consent of CPA: 14 to such termination, which consent of CPA:14 is not to be unreasonably withheld, delayed
  or conditioned; 

               (b) by Sellers, upon a breach of any representation, warranty, covenant or agreement on the part of Buyer set forth in this Agreement that has a material adverse effect on the
    Properties, taken as a whole; 

               (c) by Buyer, upon a breach of any representation, warranty, covenant or agreement on the part of Sellers set forth in this Agreement that has a material adverse
      effect on the Properties, taken as a whole; 

               (d) by either Buyer or Seller, if any judgment, injunction, order, decree or action by any governmental entity of competent authority preventing the
        consummation of the transactions contemplated hereby shall have become final and non-appealable after the parties have used reasonable best efforts to have such judgment, injunction, order, decree or action removed, repealed or overturned;
        

               (e) by either Buyer or Seller, if the agreement and plan of merger referred to in Section 5 hereof is terminated prior to the Closing hereunder pursuant to its terms; and 

               (f) by either Buyer or Seller, if the Closing shall not have occurred before December 31, 2006 (subject to automatic extension until March 31, 2007 if a condition to Closing hereunder, which is not satisfied
            as of December 31, 2006 is reasonably likely to be satisfied by March 31, 2007). Provided, if the Merger Agreement has been extended, this Agreement will be similarly extended until March 31, 2007. Either party may terminate this Agreement after
            March 31, 2007. 

     26. TIME. Any time period provided for herein which shall end on Saturday, Sunday or state or national legal
holiday shall extend to 5:00 P.M. Eastern Time of the next business day. 

     27. PERSONS BOUND. The benefits and obligations of the covenants herein shall inure to and bind the respective
successors and assigns of the parties hereto. Whenever used, the 

13 

singular number shall include the plural, the plural the singular and the use of any gender shall include all genders. 

     28. FINAL AGREEMENT. This Agreement represents the final agreement of the parties and no agreements or
representations, unless incorporated into this Agreement, shall be binding on any of the parties.

     29. GOVERNING LAW. This Agreement shall be governed and construed in all respects with the laws of the State
of New York.

     30. EXECUTION AND COUNTERPARTS; FACSIMILES. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same agreement. This Agreement shall not bind Sellers or Buyer as an offer or an agreement unless signed by the person or party sought to be bound. Facsimile
transmissions and other copies of executed documents shall serve the same purpose as originals in connection with the terms of this Agreement and any notices required to be or given hereunder may be delivered by facsimile transmission in the manner
provided in Section 20. The transmittal of an unexecuted draft of this document for purposes of review shall not be considered an offer to enter into an agreement. 

     31. AMENDMENT. This Agreement may not be modified or amended, except by an agreement in writing signed by
Sellers and Buyer. The parties may waive any of the conditions contained herein or any of the obligations of the other party hereunder, but any such waiver shall be effective only if in writing and signed by the party waiving such conditions or
obligations. 

     32. REASONABLE BEST EFFORTS. Upon the terms and subject to the conditions set forth in this Agreement and
compliance with applicable law and the other terms of this agreement, each of the Sellers and the Buyer agrees to use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, and to assist and cooperate
with the other in doing, all things necessary, proper or advisable to fulfill all conditions applicable to such party pursuant to this Agreement and to consummate and make effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement, including (i) the obtaining of all necessary actions or nonactions, waivers, consents and approvals from governmental entities and the making of all necessary registrations and filings and the taking of all reasonable
steps as maybe necessary to obtain an approval, waiver or exemption from any governmental entity, (ii) the obtaining of all necessary consents, approvals, waivers or exemption from nongovernmental third parties; and (iii) the execution and delivery
of any additional instruments necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement. Nothing herein however, shall require any of the Sellers or the Buyer to increase any of its respective
liabilities or obligations hereunder. 

     33. EQUITABLE ASSIGNMENT. To the extent the deliverables contemplated by Section 13 are third party consents
or waivers which are required to be obtained under applicable law or the terms of a governing agreement in order to effect the transactions hereunder with respect to an applicable Property, but such consents or waivers have not been obtained at
Closing, if the parties are otherwise required to close under the terms of Section 5, then the parties shall close the transactions hereunder but with respect to such outstanding deliverables, the parties shall continue to seek to obtain such
consent or waiver, and until such time as it is obtained, the parties shall not transfer the Property in breach of the applicable restrictions and instead shall enter into an equitable arrangement providing the purchasers the benefits and risks of
ownership with respect to the Property for which the consent or waiver has not been obtained. 

     34. CAM COOPERATION. CAM agrees to use reasonable best efforts to deliver the documents referenced in Section
5.1(e) of the Merger Agreement. 

14 

(signature blocks on the following pages)

 

 

 

15

  	BUYER: 

         W.P. CAREY & CO. LLC,

  a Delaware limited liability company 

	 	 	 	 
	 	By:	Carey Management LLC,

        managing
          member 
	 	 	 	 
	 	 	By:	/s/ T. E. Zacharias 
	 	 	 	

	 	 	Its:	Managing Director 
	 	 	 	

  

  	 SELLERS: 

           CORPORATE PROPERTY ASSOCIATES 12

INCORPORATED,

          a Maryland corporation 

	 	 	 	 
	By:	/s/
          Elizabeth P. Munson
	 	

	Its:	 Director  
	 	

  

  	BUILD (CA) QRS 12-24, INC.,

      a California corporation 

      
	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
      CEO 
	 	

  

  	 BUD Limited Liability
              Company,

      a Tennessee limited liability company 

      
	 	 	 	 
	 	By:	SEEDS (TN) QRS 12-9, Inc.,

a Tennessee corporation, managing member 
	 	 	 	 
	 	 	By:	/s/ Gordon F. DuGan 
	 	 	 	

	 	 	Print Name:  	Gordon F. DuGan 
	 	 	 	

	 	 	Title:  	Director and CEO  
	 	 	 	

  

  

  

  	GGAP (MA) QRS 12-31, INC.,

      a Massachusetts corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
          CEO 
	 	

  

  	 AFD (MN) LLC,

      a Delaware limited liability company 

	 	 	 	 
	 	By:	FAST (DE) QRS 14-22, Inc.,

a Delaware corporation, managing member 
	 	 	 	 
	 	 	By:	/s/ Gordon F. DuGan 
	 	 	 	

	 	 	Print Name:  	Gordon F. DuGan 
	 	 	 	

	 	 	Title:  	Director and CEO 
	 	 	 	

  

  	 WALS (IN) QR 12-5, INC.,

      an Indiana corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
          CEO 
	 	

  

  	ABI (TX) QRS 12-11, Inc.,

      a Texas corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
          CEO 
	 	

  

  	 BRI (MN) QRS 12-52, Inc.,

      a Delaware corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
          CEO 
	 	

    

    	 SPEC (CA) QRS 12-20,
                Inc.,

        a California corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
            CEO 
	 	

    

    	 24 HR-TX (TX) LIMITED
                PARTNERSHIP,

        a Delaware limited partnership 

	 	 	 	 
	 	By:	24 HR-TX GP (TX) QRS 12-66,
              Inc.,

a Delaware corporation 
	 	 	 	 
	 	 	By:	/s/ Gordon F. DuGan 
	 	 	 	

	 	 	Print
            Name:  	Gordon F. DuGan 
	 	 	 	

	 	 	Title:  	Director and CEO 
	 	 	 	

    

    	 Corporate Property
                Associates 12 Incorporated,

a Maryland corporation,

in its capacity as a member of

        ET LLC d/b/a ET QRS LLC 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
            CEO 
	 	

    

    	 CARE (PA) QRS 12-43,
                Inc.,

        a Delaware corporation 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
            CEO 
	 	

    

  	Corporate Property Associates
              12 Incorporated,

a Maryland corporation,

in its capacity as a shareholder of 

      MAPI INVEST Sprl, 

	 	 	 	 
	By:	/s/ Gordon F. DuGan
	 	

	Print Name: 	Gordon F. DuGan
	 	 	

	Title:  	 Director and
          CEO 
	 	

  

  	For purposes of Sections
              19 and 34 only: 

         CAREY ASSET MANAGEMENT CORP.,

        a Delaware corporation 

	 	 	 	 
	By:	/s/ T. E. Zacharias
	 	

	Print Name: 	Thomas E. Zacharias
	 	 	

	Title:  	 Managing
          Director
	 	

  

    SCHEDULE I 

  

	

		

		
                                              Sellers
		
Properties Location
	
	

		

		

		

	
	
1
		
.
		
Build (CA) QRS 12-24, Inc., a California
		
San Leandro, CA
	
	

		

		
corporation
		

	
	

		

		

		

	
	
2
		
.
		
BUD Limited Liability Company, a Tennessee
		
Chattanooga, TN
	
	

		

		
limited liability company
		

	
	

		

		

		

	
	
3
		
.
		
GGAP (MA) QRS 12-31, Inc., a Massachusetts
		
Milford, MA
	
	

		

		
corporation
		

	
	

		

		

		

	
	
4
		
.
		
AFD (MN) LLC, a Delaware limited liability
		
Grand Rapids, MI
	
	

		

		
company
		

	
	

		

		

		

	
	
5
		
.
		
WALS (IN) QRS 12-5, Inc., an Indiana
		
Greenfield, IN
	
	

		

		
corporation
		

	
	

		

		

		

	
	
6
		
.
		
ABI (TX) QRS 12-11, Inc., a Texas corporation
		
Austin, TX (4 Lots)
	
	

		

		

		

	
	
7
		
.
		
BRI (MN) QRS 12-52, Inc., a Delaware
		
Mendota Heights, MN
	
	

		

		
corporation
		

	
	

		

		

		

	
	
8
		
.
		
SPEC (CA) QRS 12-20, Inc., a California
		
Sunnyvale, CA
	
	

		

		
corporation
		

	
	

		

		

		

	
	
9
		
.
		
24 HR-TX (TX) Limited Partnership, a Delaware
		
Austin, TX (SPA)
	
	

		

		
limited partnership
		

	
	

		

		

		

	
	
10
		
.
		
ET LLC, a Delaware limited liability company,
		
Hayward, CA
	
	

		

		
d/b/a ET QRS LLC*
		

	
	

		

		

		

	
	
11
		
.
		
CARE (PA) QRS 12-43, Inc., a Delaware
		
Mechanicsburg, PA
	
	

		

		
corporation
		

	
	

		

		

		

	
	
12
		
.
		
CARLOG *
		
France (8 properties)
	
	

		

		

		

	
	
13
		
.
		
SCI MAP INVEST *
		
France (6 properties)
	

*       Transfer will be of interest of CPA:12 in listed entity or in a parent corporation of the listed entity. 

EXHIBITS “A-1 through A-13”

LEGAL DESCRIPTIONS 

EXHIBIT “B” 

ALLOCATION OF PURCHASE PRICE

	 Property 	 Purchase Price 	  Cash 

Purchase Price 	  Assumable
            Loan

  Balances as of

March 31, 2006  	
	 	 	 	 	 	 	 		 	
	
1
		
San Leandro, CA
		
$
		
1,492,000
		 	
$
		
1,492,000
		

		
----
		
	
	

		

		

		

		
	

		

		

		

		

	
	
2
		
Chattanooga, TN
		
$
		
6,230,000
		 	
$
		
6,230,000
		

		
----
		

	
	

		

		

		

		
	

		

		

		

		

	
	
3
		
Milford, MA
		
$
		
4,500,000
		 	
$
		
2,093,074
		
$
		
2,406,926
		

	
	

		

		

		

		
	

		

		

		

		

	
	
4
		
Grand Rapids, MI
		
$
		
2,880,160
		 	
$
		
52,538
		
$
		
2,827,622
		

	
	

		

		

		

		
	

		

		

		

		

	
	
5
		
Greenfield, IN
		
$
		
5,970,000
		 	
$
		
5,970,000
		

		
----
		

	
	

		

		

		

		
	

		

		

		

		

	
	
6
		
Austin, TX / Pharmco
		
$
		
17,940,000
		 	
$
		
17,940,000
		

		
---
		

	
	

		

		

		

		
	

		

		

		

		

	
	
7
		
Mendota Heights, MN
		
$
		
16,890,000
		 	
$
		
9,758,482
		
$
		
7,131,518
		

	
	

		

		

		

		
	

		

		

		

		

	
	
8
		
Sunnyvale, CA
		 $
		
7,080,000
		 	
$
		
7,080,000
		

		
----
		

	
	

		

		

		

		
	

		

		

		

		

	
	
9
		
Austin, TX /
		

		

			

		

		

		

		

	
	

		
24 Hour Fitness
		
$
		
9,290,000
		 	
$
		
6,245,448
		
$
		
3,044,552
		

	
	

		

		

		

		
	

		

		

		

		

	
	
10
		
  Hayward, CA
		
$
		
62,996,800
		*	
$
		
42,359,488
		
$
		
20,637,392
		
*
	
	

		

		

		

		
	

		

		

		

		

	
	
11
		
  Mechanicsburg, PA
		
$
		
5,740,000
		 	
$
		
5,740,000
		

		
----
		

	
	

		

		

		

		
	

		

		

		

		

	
	
12
		
  Carrefour II
		
$
		
37,315,593
		*	
$
		
7,722,613
		
$
		
29,592,980
		
*
	
	

		

		

		

		
	

		

		

		

		

	
	
13
		
  Medica
		
$
		
20,917,820
		*	
$
		
7,813,333
		
$
		
13,104,487
		
*
	
	

		

		

		

		
	

		

		

		

		

	
	
Total
		 	
$
		
199,242,453
		 	
$
		
120,496,977
		
$
		
78,745,476
		

	
	 	 	 	 	 	 	 	 	 	
	 	 	 	 	 	 	 	 	 	
	* 	 Purchase Prices
        and Loan balances reflect the percentage of CPA:12’s interest in
        the entity that is the Owner of the Property and the Borrower on the
        Assumable Loan (or of the parent corporation of the Owner and the Borrower
    in the Carrefour II and Medica transactions). 

 

EXHIBIT “C” 

 LIST OF ASSUMABLE LOANS

	
Property
		 	
Lender
		
Initial Principal Amount
	
	 	 	 	 
	
    

  	
    

  	
    

  	
    

  
	
1.
		
Milford, MA
		 First Allmerica Financial
	    Life

		
      $3,200,000
	
	

		

		
Insurance Company
		

	
	

		

		

		

	
	
2.
		
Grand Rapids, MI
		
Column Financial, Inc.
		
$15,100,000 (encumbers other
	
	

		

		

		
property in Burlington NJ)
	
	

		

		

		

	
	
3.
		
Mendota Heights, MN
		 Secore Financial
	    Corporation

		 $7,385,836.00
	
	

		

		
MSMC Loan 00-08174
		

	
	

		

		

		

	
	
4.
		
Austin, TX / 24 Hour Fitness
		
P&M Commercial Funding, Inc.
		
      $3,282,993.88
	
	

		

		
c/o Midland Loan Services, Inc.
		

	
	

		

		

		

	
	
5.
		
Hayward, CA
		
Teachers Insurance and Annuity
		
Series A - $15,000,000
	
	

		

		
Association of America
		
Series B - $30,000,000
	
	

		

		

		

	
	
6.
		
Carrefour II
		
AAReal Bank AG
		 $103,098,473
	
	

		

		

		

	
	
7.
		
Medica / French Properties
		
Crédit Foncier de France
		 $34,013,940

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