Document:

exv10w2

Exhibit 10.2

SEPARATION AGREEMENT

          SEPARATION AGREEMENT dated the 12th day of December, 2010 (the “Termination Date”), between
VALEANT PHARMACEUTICALS INTERNATIONAL, INC. (the “Corporation”), BIOVAIL LABORATORIES INTERNATIONAL
SRL (“BLS”) and WILLIAM M. WELLS (“Mr. Wells”).

          WHEREAS Mr. Wells is serving as Non-Executive Chairman of the Corporation and as President and
Chairman of BLS, pursuant to an Agreement entered into on June 20, 2010 (the “2010 Agreement”);

          WHEREAS the parties have agreed that Mr. Wells’ employment with BLS shall terminate, and he
will cease to serve as President and Chairman of BLS, effective as of the Termination Date;

          WHEREAS, concurrently with the execution of this Separation Agreement, Mr. Wells will be
executing a resignation letter, resigning from his positions as officer and director/manager of BLS
and the other Barbados-based subsidiaries of the Corporation;

          WHEREAS as a result of his ceasing to serve as President and Chairman of BLS, Mr. Wells will
be entitled to receive certain payments and benefits provided for in the 2010 Agreement;

          WHEREAS the Corporation, BLS and Mr. Wells desire to enter into this Separation Agreement
(this “Agreement”) to set forth the parties’ agreement as to Mr. Wells’ entitlements and continuing
obligations as a consequence of his termination of employment with BLS.

          NOW THEREFORE IN CONSIDERATION of the mutual covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency whereof is hereby
acknowledged, the parties hereto agree as follows:

	1.	 	Capitalized Terms. Unless otherwise defined herein, capitalized terms shall have the
meaning set forth in the 2010 Agreement.

	2.	 	End of Transition Period. The parties agree that, effective immediately, the
Transition Period is ended, Mr. Wells’ employment as President and Chairman of BLS shall
terminate, and Mr. Wells shall cease to have any obligations to perform Transition Services.

	3.	 	Remuneration Upon Termination. The parties acknowledge that as a result of Mr.
Wells’ termination of employment with BLS:

 

	 	(a)	 	BLS shall pay Mr. Wells previously unpaid amounts in respect of the Transition
Services Fee attributable to Transition Services rendered through the Termination Date;
	 
	 	(b)	 	pursuant to Section 5.02 of the 2010 Agreement, and subject to Mr. Wells
executing the general release of claims attached hereto as Annex A (the “Release”)
within 21 days following the date hereof, and the applicable revocation period elapsing
without Mr. Wells revoking the Release, BLS shall pay Mr. Wells a lump sum amount equal
to the excess of $860,000 over the aggregate amount of the Transition Services Fee
previously paid to Mr. Wells (including any amount paid pursuant to paragraph (a)
above), such amount to be paid within ten days following the execution of the Release
(notwithstanding anything to the contrary in Section 5.02 of the 2010 Agreement);
	 
	 	(c)	 	subject to Mr. Wells executing the Release within 21 days following the date
hereof, and the applicable revocation period elapsing without Mr. Wells revoking the
Release, BLS shall, to the extent transferable, transfer to Mr. Wells the current lease
maintained by BLS for Mr. Wells’ accommodations in Barbados and shall reimburse Mr.
Wells (within ten (10) business days of Mr. Wells submitting a request to BLS for
reimbursement and less applicable withholding taxes) for the rental fees associated
with such lease through the end of the existing lease term; provided, that, if BLS is
unable to transfer the lease, BLS will retain the leased property, and pay the rental
fees, for use by Mr. Wells through the end of the existing lease term and Mr. Wells
will be required to satisfy any taxes owed in respect of the provision of such
property.
	 
	 	(d)	 	subject to Mr. Wells executing the Release within 21 days following the date
hereof, and the applicable revocation period elapsing without Mr. Wells revoking the
Release, BLS shall transfer to Mr. Wells the automobile used by Mr. Wells in Barbados
provided that, prior to the transfer, Mr. Wells satisfies any withholding taxes owed by
Mr. Wells in connection with such transfer;
	 
	 	(e)	 	subject to Mr. Wells executing the Release within 21 days following the date
hereof, and the applicable revocation period elapsing without Mr. Wells revoking the
Release, BLS shall deliver to Mr. Wells a computer and blackberry device with
specifications similar to the specifications of the computer and blackberry device
provided by the Corporation for use by Mr. Wells immediately prior to the Termination
Date and shall transfer to Mr. Wells the telephone number used by Mr. Wells immediately
prior to the Termination Date;
	 
	 	(f)	 	reimbursement for tax preparation services, as described in Section 5.03(e) of
the 2010 Agreement; and
	 
	 	(g)	 	reimbursement of previously unreimbursed expenses, as described in Section
5.03(h) of the 2010 Agreement.

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	 	 	Except as set forth in this Section 3, Mr. Wells shall not be entitled to any additional
remuneration in connection with his termination of employment with BLS.
	 
	4.	 	Continuing Obligations. Mr. Wells acknowledges that the provisions of Article VIII
of the 2010 Agreement shall continue to apply following the Termination Date.

	5.	 	Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and cancels and supersedes any prior
understandings and agreements between the parties with respect thereto, including the 2010
Agreement, except as expressly set forth herein; provided that this Agreement shall not affect
the terms of any separation agreement entered into on or after the date hereof between the
Corporation and Mr. Wells related to Mr. Wells’ positions with the Corporation.

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          IN WITNESS WHEREOF, the parties have executed this Agreement as of the sate first set forth
above.

	 	 	 	 	 	 	 

	 	 	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ J. Michael Pearson
 

J. Michael Pearson, Chief Executive Officer
	 	 
	 
	 	 	 	 	 	 
	 	 	BIOVAIL LABORATORIES INTERNATIONAL SRL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michel Chouinard	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Michel Chouinard, Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ William M. Wells	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	WILLIAM M. WELLS	 	 

4

 

ANNEX A

General Waiver & Release

This Legal Release (“Release”) dated as of the last date executed below (the “Release
Date”) is between Valeant Pharmaceuticals International, Inc. (the “Company”) and William M. Wells
(“Employee”).

     Employee Release. Employee, on behalf of himself, and Employee’s heirs, executors,
administrators, and/or assigns, does hereby RELEASE AND FOREVER DISCHARGE the Company, together
with its parents, subsidiaries (including without limitation, Biovail Laboratories International
SRL), affiliates, predecessors, and successor corporations and business entities, past, present and
future, and its and their agents, directors, officers, employees, shareholders, insurers and
reinsurers, and employee benefit plans (and the trustees, administrators, fiduciaries, agents,
insurers, and reinsurers of such plans) past, present and future, and their heirs, executors,
administrators, predecessors, successors, and assigns (collectively, the “RELEASEES”), of and from
any and all legally waivable claims, causes of actions, suits, lawsuits, debts, and demands
whatsoever in law or in equity, known or unknown, suspected or unsuspected, which Employee or which
Employee’s heirs, executors administrators, or assigns hereafter ever had, now have, or may have,
from the beginning of time to the date Employee executes this Release; provided, however, that the
Employee is not releasing any claims, causes of actions, suits, lawsuits, debts, or demands
whatsoever arising out of or relating to the Employee’s right to enforce the terms of this Release
and the Severance and General Release Agreement dated November 9, 2010. This general waiver and
release does not include any claims, causes of actions, suits, lawsuits, debts, and demands
whatsoever in law or in equity, known or unknown, suspected or unsuspected which may come into
existence post the date of this Release.

     The claims being waived and released include, without limitation:

          a. any and all claims of violation of any foreign or United States federal, state, provincial
and local law arising from or relating to Employee’s recruitment, hire, employment and termination
of employment with the Company;

          b. any and all claims of wrongful discharge, emotional distress, defamation,
misrepresentation, fraud, detrimental reliance, breach of contractual obligations, promissory
estoppel, negligence, assault and battery, and violation of public policy;

          c. all claims to disputed wages, compensation, and benefits, including any claims for
violation of applicable state laws relating to wages and hours of work;

          d. any and all claims for violation of any state or federal statute or regulation relating to
termination of employment, unlawful discrimination, harassment or retaliation under applicable
federal, state and local constitutions, statutes, laws, and regulations (which includes, but is not
limited to, the Age Discrimination in Employment Act, as amended (“ADEA”), Title VII of the
Civil Rights Act of 1964, 42 U.S.C. 1981, the Employee Retirement Income Security Act (“ERISA”),
the Family and Medical Leave Act of 1993, the Americans with Disabilities Act,

Release —  Page 1

 

the Rehabilitation Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act,
the New Jersey Law Against Discrimination and Conscientious Employee Protection Act, the California
Fair Employment and Housing Act and the California Family Rights Act), the Ontario Employment
Standards Act, 2000, Human Rights Code, and Workplace Safety and Insurance Act; and

          e. any and all claims for monetary damages and any other form of personal relief.

     In waiving and releasing any and all claims against the Releasees, whether or not now known to
Employee, Employee understands that this means that, if Employee later discovers facts different
from or in addition to those facts currently known by Employee, or believed by Employee to be true,
the waivers and releases of this Release will remain effective in all respects — despite such
different or additional facts and Employee’s later discovery of such facts, even if Employee would
not have agreed to this Release if Employee had prior knowledge of such facts.

     In order to waive and release any and all claims against the Releasees, whether or not now
known, Employee expressly waives and releases all rights under California Civil Code section 1542
(or under any similar statute in any other jurisdiction) which states (language in parentheses
added):

A general release does not extend to claims which the creditor (e.g., Employee) does
not know or suspect to exist in his favor at the time of executing the release,
which, if known by him, must have materially affected his settlement with the debtor
(e.g., the Company).

     The only claims that are not being waived and released by Employee hereunder are claims
Employee may have for:

          a. unemployment, state disability and/or paid family leave insurance benefits pursuant to the
terms of applicable state law;

          b. continuation of existing participation in Company-sponsored group health benefit plans, at
Employee’s full expense, under the United States federal law known as “COBRA” and/or under any
applicable state counterpart law;

          c. any benefit entitlements that are vested as of the Separation Date pursuant to the terms of
a Company-sponsored benefit plan governed by the United States federal law known as “ERISA;”

          d. stock and/or vested option shares pursuant to the written terms and conditions of
Employee’s existing stock option or other equity award grants and agreements, existing as of the
Separation Date;

          e. violation of any foreign or United States federal, state or local statutory and/or public
policy right or entitlement that, by applicable law, is not waivable;

Release —  Page 2

 

          f. any right Employee may have (1) to enforce his rights under this Release, (2) to
indemnification as an officer, director or employee of the Company (or any affiliate thereof)
pursuant to the articles of incorporation or by-laws (or other governing instruments) of the
Company (or any affiliate thereof) and (3) to a gross-up payment under Section 2.03(e) of that
certain Biovail Corporation Non-Executive Chairman and Biovail Laboratories International SRL
President Agreement by and among the Company, Biovail Laboratories SRL and the Employee dated June
20, 2010 (the “Termination Agreement”) to the extent it is finally determined by a court of
competent jurisdiction that section 280G of the Code applies to any payment to which Employee is
entitled in connection with the consummation of the transactions contemplated by that certain
Agreement and Plan of Merger by and among Valeant Pharmaceuticals International, Biovail
Corporation, Biovail Americas Corp., and Beach Merger Corp. dated as of June 20, 2010 (the
“Merger”) and that a gross up payment is due (for this purpose, Employee acknowledges that the
Company has determined based upon the advice of counsel that, in connection with the Merger,
section 280G of the Code does not apply to individuals employed by, or providing service to,
Biovail Corporation and its affiliates immediately prior to the Merger but instead applies to
individuals employed by, or providing service to, Valeant Pharmaceuticals International and its
affiliates immediately prior to the Merger); and

          g. any wrongful act or omission occurring after the date Employee signs this Release.

     Nothing in this Release, prevents or prohibits Employee from filing a claim with a government
agency, such as the U.S. Equal Employment Opportunity Commission, that is responsible for enforcing
a law. However, Employee understands that, because Employee is waiving and releasing all claims
“for monetary damages and any other forms of personal relief” through the date upon which Employee
signs this Release, Employee may not recover any monetary relief from such a claim and may only
seek and receive non-personal forms of relief through any such claim.

     Company General Waiver & Release. The Company, on behalf of itself and its subsidiaries and
affiliates, does hereby RELEASE AND FOREVER DISCHARGE the Employee, together with Employee’s heirs,
executors, administrators or assigns, of and from any and all legally waivable claims, causes of
actions, suits, lawsuits, debts, and demands whatsoever in law or in equity, known or unknown,
suspected or unsuspected, which the Company ever had, now has, or may have, from the beginning of
time to the date the Company executes this Release; provided, however; that the Company and its
subsidiaries and affiliates are not releasing any claims, causes of actions, suits, lawsuits,
debts, or demands whatsoever arising out of or relating to (i) the Company’s right to enforce the
terms of this Release; or (ii) any illegal or fraudulent conduct by Employee.

     Confidentiality of this Release. Employee agrees, covenants and promises that Employee has not
communicated or disclosed, and will not hereafter communicate or disclose, the terms of this
Release, to any persons with the exception of: (1) members of Employee’s immediate family,
Employee’s attorneys, accountants, tax, or financial advisors, each of whom shall be informed of
this confidentiality obligation and shall agree to be bound by its terms; (2) to the

Release —  Page 3

 

Internal Revenue Service or state or local taxing authority; (3) as is expressly required or
protected by law; or (4) in any action to challenge or enforce the terms of this Release provided
that such disclosure is protected from public disclosure by an appropriate confidentiality order to
the maximum extent permitted by applicable authority. Employee agrees to be liable for any breach
of this Paragraph by the individuals identified in clause (1) above. For the avoidance of doubt,
the Company agrees to continue to be bound to its obligations pursuant to 8.01 of the Termination
Agreement in accordance with the terms thereof.

     No Admission. Nothing about the fact or content of this Release shall considered to be or
treated by Employee or the Company as an admission of any wrongdoing, liability or violation of law
by Employee or by any Releasee.

     Consideration & Revocation Periods; Effective Date. Employee acknowledges that (a) the
Company has advised him of his right to consult with an attorney prior to signing this Release; (b)
he has carefully read and fully understands all of the provisions of this Release, and (c) he is
entering into this Release, including the releases set forth herein, knowingly, freely and
voluntarily in exchange for good and valuable consideration (including, but not limited to, a
general release and waiver by the Company and mutual nondisparagement covenant, to which he would
not be entitled in the absence of signing this Release). Employee has forty-five (45) calendar
days to consider this Release, although he may sign it sooner (“45-day Consideration
Period”).

     In addition, for the period of seven (7) calendar days after the date Employee signs this
Release (“7-day Revocation Period”), Employee may revoke it by delivering written notice of
revocation to the Company by hand-delivery or by facsimile or e-mail transmission using the street,
facsimile or e-mail address for the Company stated below.

     Because of this 7-day Revocation Period, this Release will not become effective and
enforceable until the eighth calendar day after the date Employee signed it, provided that Employee
has delivered Employee’s signed Release to the Company, and Employee did not revoke the Release
(“Effective Date”).

     Delivery to the Company. Employee should return this Release, signed by Employee (and any
notice of revocation, if applicable) to:

Valeant Pharmaceuticals International, Inc.

7150 Mississauga Road

Mississauga, Ontario

L5N 8M5

Attn: Mark Durham, SVP, Human Resources

     Judicial Interpretation/Modification; Severability. In the event that this Release shall be
held to be void, voidable, unlawful or, for any reason, unenforceable, the Release shall be
voidable at the sole discretion of the Company.

Release
—  Page 4

 

     Changes to Release. No changes to this Release can be effective except by another written
agreement signed by Employee and by the Company’s Senior Vice President of Human Resources.

     Complete Agreement. Except for the agreements and benefit plans noted above (including but
not limited to the Restrictive Covenants in the Termination Agreement) and the Biovail Corporation
Non-Executive Chairman and Biovail Laboratories International SRL President Agreement and the
Severance and General Release Agreement entered into with the Employee, this Release, as of the
Effective Date, cancels, supersedes and replaces any and all prior agreements (written, oral or
implied-in-fact or in-law) between Employee and the Company regarding all of the subjects covered
by this Release. This Release is the full, complete and exclusive agreement between Employee and
the Company regarding all of the subjects covered by this Release, and neither the Employee nor the
Company is relying on any representation or promise that is not expressly stated in this Release.

Release
—  Page 5

 

	 	 	 	 	 	 	 

	Dated: December 12, 2010

	 	By:
	 	/s/ J. Michael Pearson
 

J. Michael Pearson, Chief Executive Officer
	 	 

I HAVE READ THIS RELEASE. I UNDERSTAND THAT I AM GIVING UP IMPORTANT RIGHTS. I AM AWARE OF
MY RIGHT TO CONSULT WITH AN ATTORNEY OF MY OWN CHOOSING DURING THE CONSIDERATION PERIOD, AND THAT
THE COMPANY HAS ADVISED ME TO UNDERTAKE SUCH CONSULTATION BEFORE SIGNING THIS RELEASE. I SIGN
THIS RELEASE FREELY AND VOLUNTARILY, WITHOUT DURESS OR COERCION.

	 	 	 	 	 
	 	 	 
	Dated: December 12, 2010 	/s/ William M. Wells
 	 
	 	William M. Wells 	 
	 	 	 
	 

Release
—  Page 6exv10w1

Exhibit 10.1

AGREEMENT FOR SALE AND PURCHASE

     THIS AGREEMENT FOR SALE AND PURCHASE (“Agreement”) made and entered into by and among
CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED, a Maryland corporation (“CPA:14”), whose
address for purposes of this Agreement is c/o Corporate Property Associates 14 Incorporated, 50
Rockefeller Plaza, New York City, NY 10020, and CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL
INCORPORATED, a Maryland corporation (the “Buyer”) on behalf of single purpose entities to
be formed for the purpose of acquiring the Interests (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 CPA:14 shall
sell, and Buyer shall buy, assume and accept, or cause to be bought, assumed and accepted by the
SPV Purchasers, the applicable respective interest of CPA:14, directly or indirectly, in and to the
respective entities (“Owning Entities”) which own the properties, as such properties are
described on Exhibits “A-1” through “A-3” and on Schedule 1 attached hereto and
incorporated herein (singularly, a “Land”, and collectively, the “Lands”), together
with CPA:14’s direct or indirect interest in (i) all buildings and other improvements situated on
the Lands (singularly, a “Building”, and collectively, the “Buildings”), (ii) all
right, title and interest of the Owning Entities 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 the Owning Entities, 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 the Owning Entities and not by Tenants
(collectively, the “Personal Property”), (iv) all right, title and interest of the Owning
Entities, 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:14), (v) all right, title and interest of the Owning
Entities, if any, in and to all strips and gores, all adjacent streets and alleys adjoining the
Lands to the center line thereof, and all right, title and interest of the Owning Entities, 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 the Owning Entities, if any,
in and to the leases, licenses and other occupancy agreements, together with all amendments,
renewals and modifications thereof for the respective Lands and Buildings, or any portions thereof
(collectively, the “Leases”), together with all rents and other sums due under the Leases
and 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 Owning
Entities, 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, use, operation and maintenance of the applicable Land and Building and Personal
Property (collectively, the “Service Agreements”), (viii) all right, title and interest of
the Owning Entities, 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 Owning Entity in
and to any intercompany debt (“Intercompany Debt”) from the shareholders of such Owning Entity to
CPA:14, (xi) all right, title and interest of the Owning Entities in and to any insurance, casualty
and/or condemnation proceeds and awards and any rights or claims thereto relating to any of the
Properties and payable or to be assigned pursuant to Section 19 hereof; (xii) all right, title and
interest of the Owning Entities in and to all accounts, accounts receivable and reserve funds held
by or for the benefit of CPA:14 or a Subsidiary with respect to the operation of the Properties;
and (xiii) all of the Owning Entities’ liabilities and obligations relating to the Land and items
described in clauses (i) – (xii) (the Lands, the Buildings and all of the foregoing items listed in
clauses (i) – (xiii) above being hereinafter sometimes singularly referred to as a
“Property”, and collectively referred to as the “Properties”). The respective
interests of CPA:14 in and to the Owning Entities which own the Properties are collectively
referred to as the “Interests”. The transaction contemplated by this Agreement
contemplates the sale and purchase of all, but not less than all, of the Interests.

     2. PURCHASE PRICE

          (a) The aggregate purchase price (“Purchase Price”) for the Interests
is (i) Fifty Seven Million Four Hundred Sixty Two Thousand Five Hundred Seventy Five and 00/100 Dollars
($57,462,575.00) payable in cash, which shall be allocated among the Interests and Properties in
accordance with the allocation schedule set forth on Exhibit “B” attached hereto and
incorporated herein (“Cash Purchase Price”) and (ii) by Closing, the acknowledgement and
agreement by Buyer and the applicable SPV Purchaser that loans encumbering the applicable Property
identified on Exhibit “C” attached hereto and incorporated herein (“Assumable
Loans”) remain outstanding and an obligation of the respective Owning Entities.

          (b) Buyer acknowledges that following the Closing, the Properties will remain encumbered by
the Assumable Loans and that Buyer shall be obligated to obtain any required approvals from the
lenders of the Assumable Loans to the transfer of the Interests subject to the Assumable Loans 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 transfer of the Interests subject to each Assumable
Loan. Buyer and CPA:14 shall exercise good faith reasonable efforts to obtain lenders’ approvals.

          (c) The Cash Purchase Price, as increased or decreased by prorations and adjustments pursuant
to Section 13 hereof, shall be payable by wire transfer of immediately available funds at the
Closing (as hereinafter defined).

     3. PURCHASE PRICE PAYMENT. CPA:14 may direct that the Cash Purchase Price, as
increased or decreased by prorations and adjustment pursuant to Section 13 hereof, be paid by
confirmed federal wire transfer of immediately available funds to CPA:14, and Buyer agrees to make
such payment as directed.

     4. PROPERTY CONVEYED “AS-IS, WHERE-IS”. Buyer hereby acknowledges that it is 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 8 HEREOF OR IN THE TRANSFER DOCUMENTS, CPA:14 IS
NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER,

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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 THE OWNING ENTITIES’ WARRANTY OF TITLE), 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 CPA:14 OR SUCH OWNING ENTITIES TO BUYER OR ANY OTHER MATTER
OR THING REGARDING ANY OF THE PROPERTIES. UPON CLOSING, THE RESPECTIVE PROPERTIES SHALL BE
DELIVERED, AND BUYER (OR THE APPLICABLE SPV PURCHASER) SHALL ACCEPT DELIVERY OF 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 CPA:14 OR THE OWNING ENTITIES WITH
RESPECT TO ANY OF THE PROPERTIES EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN OR IN ANY OF THE
TRANSFER DOCUMENTS. 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
AND THE REPRESENTATIONS AND WARRANTIES EXPRESSLY PROVIDED HEREIN OR IN ANY OF THE TRANSFER
DOCUMENTS. 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 CPA:14, 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
CPA:14, 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, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT.

     5. BUYER AND CPA:14 CONTINGENCY.

          (a) The obligation of Buyer hereunder to close is subject to satisfaction, (i) as evidenced by
a written confirmation thereof from Corporate Property Associates 16 – Global Incorporated
(“CPA:16”), which written confirmation shall not be unreasonably withheld, delayed or
conditioned, of all conditions precedent to the merger (the “Merger”) of CPA:14 with and
into CPA:16, as set forth and defined in that certain Agreement and Plan of Merger dated as of
December 13, 2010 (“Merger Agreement”) by and among CPA:14, CPA:14 Sub Inc., CPA:16, CPA 16
Acquisition Inc., CPA 16 Merger Sub Inc., CPA 16 Holdings Inc. and W.P. Carey & Co. LLC, 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 and (ii) of CPA:14’s delivery of all the Transfer
Documents that it is required to deliver pursuant to Section 11 hereof. It is understood, however,
that the delivery of certain documents to effectuate the actual Merger of CPA:14 with and into
CPA:16 shall not occur until subsequent to the closing of the transactions contemplated hereby and
is not a contingency to this transaction.

3

 

          (b) The obligation of CPA:14 to close is subject to satisfaction, (i) as evidenced by a
written confirmation thereof from CPA:16, which written confirmation shall not be unreasonably
withheld, delayed or conditioned, of all conditions precedent to the Merger of CPA:14 with and into
CPA:16, 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 and (ii) of Buyer’s delivery of
the Transfer Documents that it is required to deliver pursuant to Section 11 hereof. It is
understood, however, that the delivery of certain documents to effectuate the actual Merger of
CPA:14 with and into CPA:16 shall not occur until subsequent to the closing of the transactions
contemplated hereby and is not a contingency to this transaction.

     6. TITLE COMMITMENTS AND POLICIES. Buyer may order an update of title in order for
First American 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”) and/or obtain a local
counsel due diligence report with respect to the Properties located outside of the United States.
Buyer acknowledges that it is familiar with the title to the Properties and except for any
(i) mortgage, deed of trust, deed to secure debt, assignment of leases and rents, negative pledge,
financing statement and similar instruments encumbering all or any portion of the Properties (other
than first priority mortgages, deeds of trusts, deeds to secure debt, assignments of leases and
rents, negative pledges, financing statements and similar instruments encumbering all or any
portion of the Properties securing the Assumable Loans), (ii) mechanic’s, materialmen’s, broker’s
or similar lien created or caused by the Owning Entities (unless resulting from any act or omission
of Buyer) and (iii) judgment or other monetary lien filed against the Owning Entities
(collectively, “Liens”), which the Owning Entities shall satisfy at Closing, CPA:14 and the
Owning Entities 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.

     7. TIME OF CLOSING. The Closing (“Closing”) shall occur immediately following
satisfaction of the respective Buyer’s and CPA:14’s Contingency set forth in Section 5 above and
prior to closings of the merger of CPA:14 with and into CPA:16 at a time and location mutually
agreed to by CPA:14 and Buyer (“Closing Date”).

     8. REPRESENTATIONS AND COVENANTS OF CPA:14. CPA:14 expressly covenants, represents
and warrants to Buyer as to itself and as to each Property in which such CPA:14 has a direct or
indirect interest in an Owning Entity owning such Property, as follows:

          A. CPA:14 is the owner of a direct or indirect equity interest in the Owning Entity which is
the owner (or one of the owners) of a fee interest in such Property.

          B. CPA:14 and each, if any, entity wholly owned (directly or indirectly ) by CPA:14 which has
an ownership interest in the Owing Entity owning a Property (a “Subsidiary”) 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. CPA:14 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 CPA:14 and each Subsidiary.

          D. The execution and delivery of this Agreement and the Transfer Documents by CPA:14, and the
consummation by CPA:14 of the transaction contemplated hereby and thereby does not and will not,
(i) violate any judgment, order, injunction, decree, regulation or

4

 

ruling of any court or
governmental authority by which CPA:14 is bound, (ii) subject to receipt of applicable consents, if
any, discussed in the Merger Agreement and Schedule of Disclosures thereunder, conflict with,
result in a breach of, or constitute a default under the organizational documents of CPA:14 or any
note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any material
agreement or instrument to which CPA:14 is a party or by which it is bound, or (iii) violate any
law, statute, rule or regulation by which CPA:14 is bound.

          E. There is no legal action pending, or to the knowledge of CPA:14, threatened in writing
against CPA:14, or a Subsidiary or an Owning Entity, which materially and adversely affects the use
and operation or value of a Property or otherwise materially adversely affects the ability of
CPA:14 to perform its obligations hereunder.

          F. 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 CPA:14, any Subsidiary or Owning Entity.

          G. Neither CPA:14 nor any Subsidiary nor an Owning Entity is a foreign person within the
meaning of Section 1445(f) of the Internal Revenue Code of 1986, as amended.

          H. CPA:14, each Subsidiary and each Owning Entity has at all times been in material compliance
with and will continue to be in material 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.

          I. CPA:14 has not received, nor to the best of CPA:14’s knowledge has any Subsidiary or Owning
Entity received, any written notice of any pending or threatened eminent domain or condemnation
proceeding from any governmental authority with respect to all or any part of the Properties which
would materially and adversely affect the use and operation or value of a Property, and, to the
best of CPA:14’s knowledge, no such proceeding exists or is threatened.

          J. CPA:14 has not received, nor to the best of CPA:14’s knowledge has any Subsidiary or Owning
Entity received, any written notice of a material violation of any laws enacted by any federal,
state, local or other governmental agency or regulatory body which remains uncured, outstanding or
in effect which would materially adversely affect the use and operation or value of such Property
or otherwise materially adversely affect the ability of CPA:14 to perform its obligations
hereunder.

          K. CPA:14 has not received, nor to the best of CPA:14’s knowledge has any Subsidiary or Owning
Entity received, written notice of any currently existing violations of Environmental Laws (and to
the best of CPA:14’s knowledge, no such violations currently exist) with respect to any Property or
pending or threatened administrative or other legal proceedings, including, without limitation, any
enforcement proceeding under any Environmental Laws concerning Hazardous Substances, relating to
any Property, or of any settlement thereof which would materially and adversely affect the use and
operation or value of a Property.

5

 

“Environmental Laws” shall mean any law, statute, rule or regulation now or hereafter in
effect pertaining to Hazardous Substances, protection of the environment, or human health and
safety with respect to exposure to any Hazardous Substances, including, but not limited to, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et
seq.), the Hazardous Substances Transportation Act (49 U.S.C. § 1802 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), as amended by the Hazardous and Solid
Wastes Amendments of 1984, the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe
Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Water Act (33 U.S.C. § 1321 et seq.), the
Clean Air Act (42 U.S.C. § 7401 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.),
the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community
Right-to-Know Act of 1986 (42 U.S.C. § 11001 et seq.), the Radon Gas and Indoor Air Quality
Research Act of 1986 (42 U.S.C. § 7401 et seq.), the National Environmental Policy Act (42 U.S.C. §
4321 et seq.), the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), and
the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) and any similar state or local
law, statute, rule or regulation.

“Hazardous Substances” shall mean (a) asbestos, radon gas and urea formaldehyde foam
insulation, (b) any solid, liquid, gaseous or thermal contaminant, including, without limitation,
smoke, vapor, soot, molds, fumes, acids, alkalis, chemicals, solvents, petroleum products or
byproducts, natural gas, natural gas liquids and liquefied natural gas and synthetic gas,
polychlorinated biphenyls, phosphates, lead or other heavy metals and chlorine, (c) any solid or
liquid waste (including, without limitation, hazardous waste), hazardous air pollutant, hazardous
substance, hazardous chemical, hazardous mixture, toxic substance, pollutant, pollution and
regulated substance, and (d) any other chemical, material or substance, in each case to the extent
regulated by any Environmental Laws, whether on or after the date hereof.

     All representations and warranties of CPA:14 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 CPA:14 shall survive the Closing for a period of six (6)
months.

     9. REPRESENTATIONS AND COVENANTS OF BUYER. Buyer expressly covenants, represents
and warrants to CPA:14, 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 in writing against
Buyer which would materially and adversely affect the ability of Buyer to carry out the
transactions contemplated by this Agreement.

          D. The execution and delivery of this Agreement and the Transfer Documents by Buyer, and the
consummation by Buyer of the transaction contemplated hereby and thereby does not and will not,
(i) violate any judgment, order, injunction, decree, regulation or ruling of any court or
governmental authority by which Buyer or an SPV Purchaser is bound, (ii) conflict with, result in a
breach of, or constitute a default under the organizational documents of Buyer or an SPV Purchaser
or any note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any
material agreement or instrument to which Buyer or an SPV Purchaser is a

6

 

party or by which it is
bound, or (iii) violate any law, statute, rule or regulation by which Buyer or an SPV Purchaser is
bound.

          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 Buyer.

          F. Buyer has at all times been in material compliance with and will continue to be in material
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.

          G. At the Closing, Buyer has, and shall have, sufficient resources available to consummate all
the transactions contemplated hereby, including paying the Purchase Price to CPA:14 in cash.

          H. Buyer has not received, nor to the best of Buyer’s knowledge has any SPV Purchaser
received, any written notice of a material violation of any laws enacted by any federal, state,
local or other governmental agency or regulatory body which remains uncured, outstanding or in
effect which could materially adversely affect the ability of Buyer or an SPV Purchaser to perform
its obligations hereunder.

          I. Neither Buyer nor the SPV Purchasers intend to (a) enter into a definitive agreement within
six (6) months after the Closing Date hereunder to sell any of the Interests or their respective
interests in any of the Interests purchased under this Agreement or (b) otherwise sell and close on
the conveyance of a Property or otherwise transfer the Interests purchased under this Agreement
within six (6) months after the Closing Date.

     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.

     10. PERMITTED ENCUMBRANCES. Upon Closing hereunder and transfer of the Interests to
Buyer or the applicable SPV Purchaser, the respective title of the applicable Owning Entity in and
to the applicable Property shall be 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 (collectively, the “Permitted Encumbrances”).

     11. DOCUMENTS FOR CLOSING. At Closing, CPA:14 shall deposit in escrow with First
American Title Insurance Company (the “Escrow Agent”), the following executed documents
(the “Transfer Documents”):

          (1) Instruments transferring and conveying to Buyer (or the applicable SPV Purchaser or SPV
Purchasers) the memberships, shareholders and/or partnership interest of CPA:14 in, as applicable,
the Owning Entity or in the applicable Subsidiary wholly owned

7

 

directly by CPA:14, which Subsidiary
owns directly or indirectly an interest in the Owning Entity which own the respective Properties
(“Transfer Documents”).

          (2) A resolution from the Board of directors of CPA:14 authorizing the sale of the Interests.

          (3) A certificate from CPA:14 and each applicable Subsidiary and Owning Entity certifying that
it is not a “foreign person” or “foreign corporation” within the meaning of Section 1445(f) of the
Internal Revenue Code of 1986, as amended; and

          (4) Such other documents as Buyer or the Title Company shall reasonably request to evidence or
facilitate the sale and transfer of the Interests.

     On or prior to Closing, Buyer shall deposit, or cause to be deposited, in escrow with the
Escrow Agent, the following executed documents:

          (1) Counterparts of the Transfer Documents, including the acceptance of the Interests and
assumptions of all terms, liabilities and obligations thereunder by Buyer and/or the applicable SPV
Purchaser or SPV Purchasers arising and accruing after the Closing;

          (2) A resolution from the Board of Directors of Buyer and the applicable SPV Purchaser or SPV
Purchasers authorizing the purchase of the Interests; and

          (3) Such other documents as CPA:14 or the Title Company shall reasonably request to evidence
or facilitate the purchase of the Interests.

     12. EXPENSES.

          A. Buyer shall pay the following costs:

               (1) The escrow fee;

               (2) The cost to effectuate the transfers of Interest contemplated hereunder;

               (3) Loan assumption fees; and

               (4) Any transfer or conveyance tax and any other tax charged in connection with the transfer
of Interests.

          B. CPA:14 shall pay any costs to be borne by CPA:14 and specifically provided for in this
Agreement.

     13. PRORATION OF RENTS, SECURITY DEPOSITS AND INTEREST ON ASSUMABLE LOANS. CPA:14
shall pay or cause to be paid to Buyer, in cash at Closing, the proportionate share (based on the
percentage of ownership interest in the applicable Owning Entity represented by the Interests; said
percentages being hereinafter collectively called the “Interest Percentages” or
individually for each Property, the “Interest Percentage”) of any security deposits
relating to the Properties (and/or deliver to Buyer at Closing any applicable letters of credit
held by CPA:14 in lieu of security deposits) and the applicable Interest Percentage of the amount
of any prepaid rents and rents paid for the month in which Closing occurs paid to each applicable
Owning Entity by tenants as of the Proration Date. The prorations of prepaid rents and rents 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

8

 

Date (“Delinquent Rents”).
Any Rents collected after Closing shall first be applied to current rent and then to Delinquent
Rents. In addition, the applicable Interest Percentage of interest occurring under the Assumable
Loans shall be prorated as of the Proration Date.

     14. PRORATION DATE. Interest, rents and, if applicable, security deposits of the
Properties and allocable to the Interests shall be prorated through 11:59 P.M. on the day prior to
Closing (“Proration Date”).

     15. 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 CPA:14, to the address as follows:

Corporate Property Associates 14 Incorporated

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

And to:

Greenberg Traurig, LLP

200 Park Avenue

New York, NY 10166

Attn: Judith D. Fryer, Esq.

Fax Number: 212-805-9330

If to Buyer, to the address as follows:

Corporate Property Associates 17 – Global Incorporated

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

9

 

And to:

Clifford Chance US, LLP

31 West 52nd Street

New York, NY 10019-6131

Attn: Kathleen L. Werner, Esq.

Fax Number: 212-878 8375

     16. EFFECTIVE DATE OF AGREEMENT. The effective date (“Effective Date”) of
this Agreement shall be the last date that this Agreement is executed either by CPA:14 or by Buyer.

     17. ATTORNEY’S FEES AND COSTS. 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.

     18. BROKERAGE. Buyer and CPA:14 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 CPA:14 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.

     19. 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. CPA:14 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 CPA:14 shall deliver to Buyer or the applicable SPV Purchaser at the Closing any
proceeds actually received by such CPA:14 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 the rights of CPA:14 to any such proceeds not yet received by it, 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. CPA:14 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 CPA:14 shall either (i) deliver to Buyer or the
applicable SPV Purchaser at the Closing any insurance proceeds actually received by CPA:14
attributable to the Property from such casualty, or (ii) assign to Buyer or the applicable SPV
Purchaser all of the right, title, and interest of CPA:14 in any claim under any applicable
insurance policies in respect of such casualty,

10

 

together with payment to Buyer of an amount equal
to the Interest Percentage of 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.

     20. DEFAULT.

          A. CPA:14 DEFAULT; BUYER’S SOLE REMEDIES. If, after written demand, CPA:14 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 CPA:14 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 that is within the control of Buyer to satisfy), Buyer may either (1)
terminate this Agreement by written notice to CPA:14, 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 the Outside
Closing Date (as hereinafter defined). 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 CPA:14 has a material adverse effect
on the use and operations of the Properties, taken as a whole. In the event of any continuing
default by CPA:14 after Closing in any of its representations, warranties or covenants in this
Agreement which survive Closing or any documents delivered by CPA:14 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; CPA:14’S SOLE REMEDIES. If after written demand, Buyer fails to
consummate this Agreement in accordance with its terms (other than by reason of (i) breach by
CPA:14 of any of its representations or warranties contained in this Agreement; (ii) the continuing
default by CPA:14 of any of its material covenants after ten (10) days’ prior written notice of
such default; (iii) a termination of this Agreement by CPA:14 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 that is within the control of CPA:14 to satisfy), CPA:14 may either terminate
this Agreement, in which event all further rights and obligations of the parties hereunder will
terminate, or CPA:14 may also pursue specific performance of this Agreement; provided, however,
that such action in equity for specific performance is commenced by CPA:14 duly and properly filing
a complaint within sixty (60) days after the Outside Closing Date (as hereinafter defined).
Notwithstanding anything to the contrary in this Agreement, CPA:14 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
CPA:14 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 CPA:14, CPA:14 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:

11

 

               (a) by mutual written consent of Buyer and CPA:14, but conditioned upon the consent of CPA: 16
to such termination, which consent of CPA:16 is not to be unreasonably withheld, delayed or
conditioned;

               (b) by CPA:14, 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 CPA:14 set forth in this Agreement that has a material adverse effect on the Properties, taken
as a whole;

               (d) by either Buyer or CPA:14, 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 CPA:14, 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 CPA:14, if the Closing shall not have occurred before
September 30, 2011
(the “Outside Closing Date”) (subject to automatic extension until December 31, 2011, if a
condition to Closing hereunder which is not satisfied as of September 30, 2011 is reasonably likely to
be satisfied by December 31, 2011). Provided, if the Merger Agreement has been extended, the
Outside Closing Date will be similarly extended until December 31, 2011. Either party may
terminate this Agreement after December 31, 2011.

     21. 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.

     22. 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
singular number shall include the plural, the plural the singular and the use of any gender shall
include all genders.

     23. 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.

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

     25. 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 CPA:14 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 15. The transmittal of an unexecuted
draft of this document for purposes of review shall not be considered an offer to enter into an
agreement.

12

 

     26. AMENDMENT. This Agreement may not be modified or amended, except by an agreement
in writing signed by CPA:14 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.

     27. 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
CPA:14 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 non-governmental 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 either CPA:14 or the Buyer to increase any of its respective liabilities or
obligations hereunder.

     28. EQUITABLE ASSIGNMENT. To the extent the deliverables contemplated by Section 11
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 or Interest, 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 Interest in breach of the applicable restrictions and instead shall
enter into an equitable arrangement providing the Buyer or applicable SPV Purchaser the benefits
and risks of ownership with respect to the Interest for which the consent or waiver has not been
obtained.

     29. THIRD PARTY BENEFICIARIES. Except for the provisions of Section 9.I, of which the
parties intend for the stockholders of CPA:14 to be third party beneficiaries, this Agreement shall
be binding upon and inure solely to the benefit of the parties hereto and their respective
successors and permitted assigns and nothing herein, express or implied, is intended to or shall
confer upon any other person, any legal or equitable right, benefit or remedy of any nature
whatsoever, under or by reason of this Agreement.

     30. SATISFACTION OF OBLIGATIONS. Except for those representations and warranties and
obligations which by their terms expressly survive the Closing and delivery of the Transfer
Documents, all other obligations of CPA:14 and the Buyer hereunder will be deemed satisfied upon
delivery of the Transfer Documents and payment of the Purchase Price.

13

 

	 	 	 	 	 
	 	BUYER:

CORPORATE PROPERTY ASSOCIATES 17 – GLOBAL INCORPORATED,

a Maryland corporation

 	 
	 	By:  	/s/ Mark J. DeCesaris 	 
	 	 	 
	 	Its:  	   Managing Director, Chief Financial Officer and Chief Administrative Officer
 	 

	 	 	 	 	 
	 	CPA 14:

CORPORATE PROPERTY ASSOCIATES 14 INCORPORATED,

a Maryland corporation

 	 
	 	By:  	/s/ Susan C. Hyde	 

	 	 	 	 	 
	 	Its:  	Managing Director and Secretary

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