Document:

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                                                                    EXHIBIT 10.2

                                ESCROW AGREEMENT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                       -5-
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taxes not yet paid, and may use the sum withheld for that purpose. The Escrow
Agent shall be indemnified and held harmless against any liability for taxes and
for any penalties or interest in respect of taxes on such investment income or
payments in the manner provided in Section 6(e) hereof. The Escrow Agent shall
provide to each Investor or Selected Dealer or Selected Investment Advisor all
information necessary regarding on whose behalf such withholdings have been made
so that the proper adjustments may be made to the escrow interest payment
received by the Investor or to the Investor's account with the Selected Dealer
or Selected Investment Advisor.

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

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

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

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

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

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

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

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

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

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

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

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

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

      To the Escrow Agent:

            Deutsche Bank Trust Company Americas

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

      To the Company:

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

      To the Sales Agent:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                                      -11-
<PAGE>

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

                                    CORPORATE PROPERTY ASSOCIATES 15
                                    INCORPORATED

                                    By:____________________________________
                                    Name:
                                    Title:

                                    DEUTSCHE BANK TRUST COMPANY AMERICAS

                                    By:____________________________________
                                    Name:
                                    Title:

                                    CAREY FINANCIAL CORPORATION

                                    By:____________________________________
                                    Name:
                                    Title:

Exhibit Index
Exhibit A - Fee Schedule

                                      -12-
<PAGE>

                                    EXHIBIT A
                                  FEE SCHEDULE

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

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

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

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

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

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

                                      -13-<PAGE>

                                                                    EXHIBIT 10.4

             CORPORATE PROPERTY ASSOCIATES 16 - GLOBAL INCORPORATED
                              50 ROCKEFELLER PLAZA
                               NEW YORK, NY 10020

                   AMENDED AND RESTATED SALES AGENCY AGREEMENT

                                                               ______ ____, 2004

Carey Financial Corporation
50 Rockefeller Plaza
New York, NY  10020

Ladies and Gentlemen:

         Corporate Property Associates 16 - Global Incorporated, a Maryland
corporation (the "Company"), hereby confirms its agreement with you as follows:

         1. Introduction. This Sales Agency Agreement (the "Agreement") sets
forth the understandings and agreements between the Company and you whereby you
will offer and sell on a best efforts basis for the account and risk of the
Company, along with a group of selected dealers (the "Selected Dealers") and
registered investment advisors (the "Selected Investment Advisors") to be formed
with your assistance, up to 120,000,000 shares of common stock of the Company,
par value $0.001 per share (the "Shares"), registered on Form S-11 at $10 per
share (subject to certain volume discounts). The Shares are more fully described
in the Registration Statement referred to below.

         2. Representations and Warranties of the Company

         The Company represents, warrants and agrees that:

         (a) Registration Statement and Prospectus. The Company has filed with
the Securities and Exchange Commission (the "Commission") a registration
statement on Form S-11 (File No. 333-_______), containing a related preliminary
prospectus, for the registration of the Shares under the Securities Act of 1933,
as amended (the "Securities Act") and the regulations thereunder (the
"Regulations"), and will prepare and file with the Commission any amendments to
the registration statement necessary for them to become effective, including an
amended preliminary prospectus. The registration statement, as amended, and the
amended prospectus on file with the Commission at the time the registration
statement becomes effective (including financial statements, exhibits and all
other documents related thereto filed as a part thereof or incorporated
therein), and any registration statement filed under Rule 462(b) of the
Securities Act, are herein called the "Registration Statement" and the
"Prospectus," respectively, except that if the Registration Statement is amended
by a post-effective amendment, the term "Registration Statement" shall, from and
after the declaration of effectiveness of such post-effective

                                       1
<PAGE>
amendment, refer to the Registration Statement as so amended and the term
"Prospectus" shall refer to the prospectus as so amended, and if the Prospectus
filed by the Company pursuant to Rule 424(b) or 424(c) of the Regulations shall
differ from the Prospectus on file at the time the Registration Statement or any
post-effective amendment shall become effective, the term "Prospectus" shall
refer to the Prospectus filed pursuant to either of such Rules from and after
the date on which it shall have been mailed for filing with the Commission.
Further, if a separate prospectus is filed and becomes effective with respect
solely to the Distribution Reinvestment and Stock Purchase Plan ("DRIP")(a "DRIP
Prospectus"), the term "Prospectus" shall refer to such DRIP Prospectus from and
after the declaration of effectiveness of such DRIP Prospectus.

         (b) Compliance with the Securities Act. The Registration Statement has
been prepared and filed by the Company in conformity with the Securities Act and
the applicable instructions and Regulations. The Commission has not issued any
order preventing or suspending the use of any prospectus or preliminary
prospectus filed with the Registration Statement or any amendments thereto. At
the time the Registration Statement becomes effective (the "Effective Date") and
at the time that any post-effective amendments thereto become effective and at
all times subsequent thereto up to the Termination Date (as defined in Section
3(d) hereof), the Registration Statement and Prospectus (as amended or as
supplemented) will contain all statements which are required to be stated
therein in accordance with the Securities Act and the Regulations and will in
all respects conform to the requirements of the Securities Act and the
Regulations, and will not include any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, and each preliminary prospectus filed as part of the
Registration Statement as originally filed or as part of any amendment thereto,
or filed pursuant to Rule 424 under the Securities Act, complied when so filed
in all material respects with the Securities Act and Regulations and did not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

         (c) The Company. The Company has been duly incorporated and validly
exists as a corporation in good standing under the laws of the State of Maryland
with full power and authority to conduct the business in which it is engaged in
as described in the Prospectus. The Company is duly qualified to do business as
a foreign corporation and is in good standing in each other jurisdiction in
which it owns or leases property of a nature, or transacts business of a type
that would make such qualification necessary.

         (d) The Shares. The Shares, when issued, will be duly and validly
issued, fully paid and non-assessable and will conform to the description
thereof contained in the Prospectus; no holder thereof will be subject to
personal liability for the obligations of the Company solely by reason of being
such a holder; such Shares are not subject to the preemptive rights of any
shareholder of the Company; and all corporate action required to be taken for
the authorization, issue and sale of such Shares has been validly and
sufficiently taken.

         (e) Violations. The Company is not in violation of its Articles of
Incorporation ("Articles") or Bylaws or in default in the performance or
observance of any material obligation,

                                       2
<PAGE>
agreement, covenant or condition contained in any contract, indenture, mortgage,
loan agreement, note, lease or other agreement or instrument to which it is a
party or by which it or any of its properties is bound.

         (f) Taxes. The Company has filed all Federal, state and foreign income
tax returns which have been required to be filed on or before the due date
(taking into account all extensions of time to file) and has paid or provided
for the payment of all taxes indicated by said returns and all assessments
received by the Company to the extent that such taxes or assessment have become
due.

         (g) Pending Action. There is no action, suit or proceeding pending or,
to the best of the knowledge, information and belief of the Company, threatened
to which the Company is a party, before or by any court or governmental agency
or body.

         (h) Financial Statements. The financial statements of the Company filed
as part of the Registration Statement and those included in the Prospectus
present fairly the financial position of the Company as of the date indicated
and the results of its operations for the periods specified; said financial
statements have been prepared in conformity with generally accepted accounting
principles applied on a consistent basis; and PricewaterhouseCoopers LLP, whose
report is filed with the Commission as a part of the Registration Statement, are
independent accountants as required by the Securities Act and the Regulations.

         (i) No Subsequent Material Events. Since the respective dates as of
which information is given in the Registration Statement and the Prospectus,
except as may otherwise be stated in or contemplated by the Registration
Statement and the Prospectus, (a) there has not been any material adverse change
in the condition (financial or otherwise) of the Company or in the earnings,
affairs or business prospects of the Company, whether or not arising in the
ordinary course of business, and (b) there have not been any material
transactions entered into by the Company except in the ordinary course of
business.

         (j) Investment Company Act. The Company does not intend to conduct its
business so as to be an "investment company" as that term is defined in the
Investment Company Act of 1940, as amended and the rules and regulations
thereunder, and it will exercise reasonable diligence to ensure that it does not
become an "investment company" within the meaning of the Investment Company Act
of 1940.

         (k) Authorization of Agreement. This Agreement and the Advisory
Agreement (the "Advisory Agreement") between the Company and Carey Asset
Management Corp. (the "Advisor") have been duly and validly authorized, executed
and delivered by the Company and constitute the valid agreements of the Company
enforceable in accordance with their terms. The execution and delivery of this
Agreement and the Advisory Agreement, the consummation of the transactions
herein and therein contemplated and the compliance with the terms of this
Agreement and the Advisory Agreement by the Company will not conflict with or
constitute a default under the Articles or bylaws or any indenture, mortgage,
deed of trust, lease or other agreement or instrument to which the Company is a
party, or any law, order, rule or regulation, writ, injunction or decree of any
government, governmental instrumentality or court, domestic or

                                       3
<PAGE>
foreign, having jurisdiction over the Company, or any of its property, except to
the extent that the enforceability of the indemnity and/or contribution
provisions contained in Section 8 of this Agreement may be limited under
applicable securities law; and no consent, approval, authorization or order of
any court or other governmental agency or body has been or is required for the
performance of this Agreement or the Advisory Agreement by the Company, or for
the consummation of the transactions contemplated hereby and thereby (except
such as have been obtained under the Securities Act or as may be required under
state securities or "blue sky" laws in connection with the distribution of the
Shares).

         (l) Description of Agreements. The Company is not a party to or bound
by any contract or other instrument of a character required to be described in
the Registration Statement or the Prospectus or to be filed as an exhibit to the
Registration Statement that is not described and filed as required.

         (m) Qualification as a Real Estate Investment Trust. The Company
intends to satisfy the requirements of the Internal Revenue Code of 1986 as
amended (the "Code") for qualification of the Company as a real estate
investment trust. The Company has elected to be treated as a real estate
investment trust under the Code and will direct the investment of the proceeds
of the offering of the Shares in such a manner, and will otherwise operate the
business of the Company, so as to comply with such requirements.

         (n) Description of Properties. On the Effective Date and at all times
subsequent thereto up to the Termination Date, the section of the Prospectus
entitled "Description of Properties" will include, among other things, the
location and general character of all materially important real properties held
or intended to be acquired by the Company, the nature of the Company's title to
or other interest in such properties and the nature and amount of all material
mortgages or other liens or encumbrances against such properties and the
principal terms of any lease of any such properties and the lessee thereof and
such descriptions will be correct in all material respects.

         (o) Gramm-Leach-Bliley Act and USA Patriot Act. The Company complies
with the applicable privacy provision of the Gramm-Leach-Bliley Act and the
applicable provisions of the USA Patriot Act, in all material respects.

         3. Sales of Shares. On the basis of the representations, warranties and
covenants herein contained, but subject to the terms and conditions herein set
forth, the Company hereby appoints you as its sales agent ("Sales Agent") to
solicit purchasers, along with the Selected Dealers and Selected Investment
Advisors (as defined in Section 3(c)), for the Shares during the period (the
"Effective Term") from the Effective Date to the Termination Date, including the
Shares pursuant to the DRIP, each in the manner described in the Registration
Statement. Subject to the performance by the Company of all obligations to be
performed by it hereunder and the completeness and accuracy of all of its
representations and warranties, you agree to use your best efforts as Sales
Agent, promptly following written or telegraphic receipt of notice of the
Effective Date from the Company, to offer and sell such number of Shares as
contemplated by this Agreement at the price stated in the Prospectus.

                                       4
<PAGE>
         (a) Purchase of Shares. The purchase of Shares must be made during the
offering period described in the Prospectus, or after such offering period in
the case of purchases made pursuant to the DRIP (each such purchase hereinafter
defined as an "Order"). Persons desiring to purchase Shares are required to (i)
deliver to you, the appropriate Selected Dealer or Selected Investment Advisor a
check in the amount of $10 per Share purchased (subject to certain volume
discounts or other discounts as described in the prospectus, or such other per
share price as may be applicable pursuant to the DRIP) payable to Deutsche Bank
Trust Company Americas, as escrow agent (the "Escrow Agent"), or (ii) authorize
a debit of such amount to the account such purchaser maintains with you, the
appropriate Selected Dealer or Selected Investment Advisor. For investors
residing in certain states, an order form in the form attached to the Prospectus
(each an "Order Form") must be completed and submitted to the Company. On a
daily basis, you will submit all checks received from investors and transfer,
via Federal Reserve bank wire, the total amount debited from investor accounts
for the purchase of Shares along with a list including the name, address and
telephone number of, the social security number or taxpayer identification
number of, the brokerage account number of (if applicable), the number of Shares
purchased by, any election to participate in the DRIP by, and the total dollar
amount of investment by, each investor on whose behalf checks are submitted or
the wire transfer is made. You also will forward all Order Forms to the Company.
You shall use your best efforts to wire such funds or transmit checks to the
Escrow Agent not later than noon of the next business day after receipt by you
from your customer of each Order. You will advise the Escrow Agent whether the
funds you are submitting are attributable to individual retirement accounts,
Keogh plans, or any other employee benefit plan subject to Title I of the
Employee Retirement Income Security Act of 1974 or from some other type of
investor.

         All Orders solicited by you will be strictly subject to review and
acceptance by the Company and the Company reserves the right in its absolute
discretion to reject any Order or to accept or reject Orders in the order of
their receipt by the Company or otherwise. Within 30 days of receipt of an
Order, the Company must accept or reject such Order. If the Company elects to
reject such Order, within 10 business days after such rejection, it will notify
the purchaser of such fact and cause the return of such purchaser's funds
submitted with such application and any interest earned thereon. If you receive
no notice of rejection within the foregoing time limits or if funds submitted by
the purchaser are released from escrow to the Company within the foregoing time
limits, the Order shall be deemed accepted. You agree to make every reasonable
effort to determine that the purchase of Shares is a suitable and appropriate
investment for each potential purchaser of Shares based on information provided
by such purchaser regarding such purchaser's financial situation and investment
objectives. You agree to maintain, for at least six years, records of the
information used by you to determine whether an investment in Shares is suitable
and appropriate for a potential purchaser of Shares.

         (b) Closing Dates and Delivery of Shares. In no event shall a sale of
shares to an investor be completed until at least five business days after the
date the investor receives a copy of the Prospectus. On the date Shares are
first issued to Shareholders (such date being herein referred to as the "Initial
Closing Date"), the Escrow Agent will at such time and place as instructed by
you and the Company (which instruction shall be subject to the satisfaction on
such date of the conditions contained herein), deliver to the Company or its
designee immediately available funds in an amount equal to the Escrow Funds on
deposit in the Escrow Account prior to the date

                                       5
<PAGE>
designated by the Company. If, after the Initial Closing Date, additional sales
of Shares are made, on each such date (each such date being referred to as an
"Additional Closing Date") and at each such time and place as instructed by you
and the Company (which instruction shall be subject to the satisfaction on each
such date of the conditions contained herein), the Escrow Agent shall be
required to deliver to the Company or its designee immediately available funds
in an amount equal to the Escrow Funds on deposit in the Escrow Account prior to
the date specified by the Company. The Initial Closing Date and each Additional
Closing Date are each herein referred to as a "Closing Date." Closing dates for
purchases made pursuant to the DRIP will be as set forth in the DRIP.

         (c) Selected Dealers and Selected Investment Advisors. The Shares
offered and sold under this Agreement, other than sales made by the Company
directly to its officers and directors, shall be offered and sold only by you as
Sales Agent and by a selling group of brokers or dealers (the "Selected
Dealers"), all of whom must be members in good standing of the National
Association of Securities Dealers, Inc. (the "NASD"), who execute Selected
Dealer Agreements with you substantially in the form attached hereto as Exhibit
A, and Selected Investment Advisors, who execute Selected Investment Advisor
Agreements substantially in the form attached hereto as Exhibit B, all of whom
are acceptable to the Company and you (which acceptance shall not be
unreasonably withheld by you). You will assist the Company in forming the
selling group of Selected Dealers and Selected Investment Advisors. No firm
shall be invited to join the selling group of Selected Dealers or Selected
Investment Advisors if it is (i) currently subject to any suspension or
expulsion pursuant to the rules and regulations of the Commission, the state
securities commissions of any of the fifty states, the New York Stock Exchange,
Inc. or the American Stock Exchange, Inc. as those rules and regulations relate
to broker-dealers and registered investment advisors, or the rules and
regulations of the NASD or (ii) a "discount broker" as that term is commonly
understood in the brokerage industry. The Company and the Advisor or an
affiliate thereof agree to participate in your marketing efforts to the extent
that you may reasonably request and, without limiting the generality of the
foregoing, agree to visit the offices of Selected Dealers and Selected
Investment Advisors as you may reasonably designate.

         (d) Compensation. In consideration for your execution of this
Agreement, and for the performance of your obligations hereunder, the Company
agrees to pay or cause to be paid to you a selling commission (the "Selling
Commission") of six and one-half percent ($0.65) of the price of each Share
(except for Shares sold pursuant to the DRIP) sold by you or by a Selected
Dealer, provided that no commissions shall be paid for shares sold by Selected
Investment Advisors; provided further, however, that your Selling Commission
shall be reduced with respect to volume sales of Shares to single purchasers (as
defined in the Prospectus). In the case of such volume sales to single
purchasers, on orders of $250,000 or more your Selling Commission shall be
reduced by the amount of the Share purchase price discount. In the case of such
volume sales to single purchasers, your selling commission will be reduced for
each incremental share purchase in the total volume ranges set forth in the
table below. Such reduced share price will not affect the amount received by the
Company for investment. The following table sets forth the reduced Share
purchase price and Selling Commission payable to you:

                                       6
<PAGE>
<TABLE>
<CAPTION>
                                  PURCHASE PRICE PER     SELLING COMMISSION PER
      VOLUME DISCOUNT             SHARE FOR INCREMENTAL  SHARE ON TOTAL SALE FOR
      RANGE FOR A                 SHARE IN VOLUME        INCREMENTAL SHARE IN
      SINGLE PURCHASER            DISCOUNT RANGE         VOLUME DISCOUNT RANGE
      ----------------            --------------         ---------------------
<S>                               <C>                    <C>
      $    2,000 -   $  250,000        $10.00                      $0.65
      $  250,001 -   $  500,000         $9.85                      $0.50
      $  500,001 -   $  750,000         $9.70                      $0.35
      $  750,001 -   $1,000,000         $9.60                      $0.25
      $1,000,001 -   $5,000,000         $9.50                      $0.15
</TABLE>

         As an example, a single purchaser would receive 50,380 Shares rather
than 50,000 Shares for his/her or its investment of $500,000 and the Selling
Commission would be $28,940. On the first $250,000 of the investment there would
be no discount and the purchaser would receive 25,000 shares at $10 per share.
On the remaining $250,000, the per share price would be $9.85 and the purchaser
would receive 25,380 shares.

         A refund will be made to the purchaser for any fractional Shares based
on the public offering price if such refund is in excess of $1.00. In the
foregoing example, $7.00 would be refunded for the fractional Share.

         Selling Commissions for purchases of $5,000,000 or more are negotiable
but in no event will the proceeds to the Company be less than $9.35 per Share.
Selling Commissions paid will in all cases be the same for the same level of
sales.

         Notwithstanding the foregoing, Selling Commissions for all purchases
made by an investor pursuant to the DRIP shall be five percent of the purchase
price of each Share purchased pursuant to the DRIP.

         The Company will pay to you for reallowance to Selected Dealers only,
the amount of any due diligence expense reimbursement paid to the Selected
Dealers which you have agreed to pay in the amount of up to one-half percent of
the price of each Share sold by each Selected Dealer to which you have agreed to
pay such a fee.

         From your total commissions, you agree to reallow to each Selected
Dealer with whom you have entered into a Selected Dealer Agreement (no such
reallowance will be made for Selected Investment Advisors) an amount of up to
$0.65 commission per Share (except in the case of Shares purchased under the
DRIP in which case the commission reallowance will be an amount up to $0.50 per
Share) for Shares sold by the Company pursuant to Orders solicited by such
Selected Dealer and up to the full amount of any Selected Dealer Fee paid to you
by the Company on behalf of any Selected Dealer. The Company will also reimburse
you for the amount of the Selected Dealer Fee paid to Selected Dealers, if any,
which fee will be up to two percent of the price of each Share sold by the
Selected Dealer. Additionally, the Company may pay to you the Selected Dealer
Fee of up to two percent for Shares sold directly by you. No payment of
commissions will be made by the Company with respect to Orders placed by the
Selected Investment Advisors and Orders (or portions thereof), which are
rejected by the

                                       7
<PAGE>
Company. Selling Commissions will be paid on any Closing Date with respect to
the Shares sold to purchasers whose Shares are issued on such Closing Date. The
Company will not pay a Selected Dealer Fee for Shares sold through the DRIP.

         The Company represents that neither it nor any of its Affiliates have
offered or sold any Shares pursuant to this Offering, other than directly to the
Company's officers and directors, and agrees that, through the date on which the
Offering is terminated (the "Termination Date"), the Company will not offer or
sell any Shares otherwise than through you as herein provided, except to its
officers and directors.

         (e) Finders Fee. Neither the Company, any Selected Dealer nor any
Selected Investment Advisor participating in the Offering shall, directly or
indirectly, pay or award any finder's fees, commissions or other compensation to
any person engaged by a potential investor for investment advice as an
inducement to such advisor to advise the purchase of Shares; provided, however,
that normal Selling Commissions payable to a registered broker-dealer or other
properly licensed person for selling Shares shall not be prohibited hereby.

         (f) Wholesaling Activities. You hereby agree to provide the following
additional services for the Company:

         (1) developing and preparing sales literature to be used by the Company
in the offer and sale of the Shares, which sales literature shall comply with
the Securities Act and the Regulations thereunder, the Rules of Fair Practice of
the National Association of Securities Dealers, Inc. (the "RFP") and the "blue
sky" laws of any jurisdiction in which such material is used ("Blue Sky Law").
The sales literature may include, but not be limited to, a slide presentation, a
property acquisition report, a brochure and seminar invitations for presentation
and distribution to the public and an audio program, a video program and a
brochure for presentation and distribution to broker-dealers;

         (2) assisting broker-dealers and registered investment advisors
participating in the Offering by coordinating broker-dealer and registered
investment advisor seminars, informational meetings, preparing and distributing
brochures and other sales literature designed for broker-dealers and registered
investment advisors and providing information and answering any questions with
regard to the Offering; and

         (3) assisting the Company in enlisting broker-dealers and registered
investment advisors to participate in the Offering as selected dealers.

         4. Covenants. The Company covenants to you and each Selected Dealer
that it will:

         (a) Commission Orders. Use its best efforts to cause the Registration
Statement and any subsequent amendments thereto, to become effective as promptly
as possible, and will notify you immediately, and confirm the notice in writing,
(i) when the Registration Statement and any post-effective amendment thereto
become effective, (ii) of the issuance by the Commission of any stop order or of
the initiation, or the threatening, of any proceedings for that purpose or of
the suspension of the qualification of the Shares for offering or sale in any
jurisdiction or of the

                                       8
<PAGE>
institution or threatening of any proceedings for any of such purposes, (iii) of
the receipt of any comments from the Commission with respect to the Registration
Statement, and (iv) of any request by the Commission for any amendment to the
Registration Statement as filed or any amendment or supplement to the Prospectus
or for additional information relating thereto. The Company will make every
reasonable effort to prevent the issuance by the Commission of a stop order or a
suspension order and if the Commission shall enter a stop order or suspension
order at any time, the Company will make every reasonable effort to obtain the
lifting of such order at the earliest possible moment.

         (b) Registration Statement. Deliver to you, Selected Dealers and
Selected Investment Advisors without charge such number of copies of each
preliminary prospectus filed with the Registration Statement and each amendment
thereto, and as soon as the Registration Statement or any amendment or
supplement thereto become effective, such number of copies of the Prospectus (as
amended or supplemented), the Registration Statement and supplements and
amendments thereto, if any (without exhibits), as you may reasonably request.
The Company hereby consents to the use of the Prospectus or any amendment or
supplement thereto by you, the Selected Dealers and Selected Investment Advisors
both in connection with the Offering and for such period of time thereafter as
the Prospectus is required to be delivered in connection therewith.

         (c) "Blue Sky" Qualifications. Endeavor in good faith, in cooperation
with you, the Selected Dealers and counsel to the Selected Dealers, at or prior
to the time the Registration Statement becomes effective, to seek the approval
of the Offering by the NASD, and to qualify the Shares for offering and sale
under the securities laws of all 50 states and the District of Columbia, except
in those jurisdictions you may reasonably designate (the "Designated
Jurisdictions"), provided, however, the Company shall not be obligated to
subject itself to taxation as a party doing business in any such jurisdiction.
In each jurisdiction where such qualification shall be effected, the Company
will, unless you agree that such action is not at the time necessary or
advisable, file and make such statements or reports as are or may reasonably be
required by the laws of such jurisdiction.

         (d) Amendments and Supplements. If during the time when a Prospectus is
required to be delivered under the Securities Act, any event relating to the
Company shall occur as a result of which it is necessary, in the opinion of the
Company's counsel, to amend or supplement the Prospectus in order to make the
Prospectus not misleading in light of the circumstances existing at the time it
is delivered to an investor, the Company will forthwith prepare and furnish
without expense to you, the Selected Dealers and Selected Investment Advisors, a
reasonable number of copies of an amendment or amendments of, or a supplement or
supplements to, the Prospectus which will amend or supplement the Prospectus so
that as amended or supplemented it will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances existing at the time the Prospectus is delivered to an investor,
not misleading. During the time when a Prospectus is required to be delivered
under the Securities Act, the Company shall comply so far as it is able with all
requirements imposed upon it by the Securities Act, as from time to time in
force, so far as necessary to permit the continuance of sales of the Shares in
accordance with the provisions hereof and the Prospectus.

                                       9
<PAGE>
         (e) Copies of Reports. During the period the Shares remain outstanding,
you will be furnished with the following:

               (i) as soon as practicable after they have been sent by the
               Company to the Shareholders or to any class of security holders
               of the Company or filed with the Commission, two copies of each
               annual and interim financial and each other report, application
               or document;

               (ii) as soon as practicable, two copies of every press release
               issued by the Company and every material news item and article in
               respect of the Company or its affairs released by the Company;
               and

               (iii) additional documents and information with respect to the
               Company and its affairs as you may from time to time reasonably
               request.

         (f) Sales Material. Will deliver to you from time to time, all
advertising and supplemental sales material (whether designated solely for
broker-dealer use or otherwise) proposed to be used or delivered in connection
with the Offering, prior to the use or delivery to third parties of such
material, and will not so use or deliver, in connection with the Offering, any
such material to which you or your counsel shall reasonably object or disapprove
within seven days of delivery of such material to you or which shall be
reasonably disapproved by your counsel within such seven-day period.

         (g) Use of Proceeds. Apply the proceeds from the sale of Shares as set
forth in the section of the Prospectus entitled "Estimated Use of Proceeds" and
operate the business of the Company in accordance with the descriptions of its
business set forth in the Prospectus.

         (h) Prospectus Delivery. In case you, any Selected Dealer or Selected
Investment Advisor is required to deliver a Prospectus in connection with sales
of any of the Shares at any time nine months or more after the Effective Date,
upon your or such Selected Dealer or Selected Investment Advisor's request, the
Company will, at its expense, prepare and deliver to you, such Selected Dealer
or Selected Investment Advisor as many copies as you may request of an amended
or supplemented Prospectus complying with Section 10(a)(3) of the Securities
Act.

         (i) Financial Statements. Make generally available to its security
holders as soon as practicable, but not later than 60 days after the close of
the period covered thereby, an earnings statement of the Company (in form
complying with the provisions of Rule 158 under the Securities Act) covering a
period of 12 months beginning after the Effective Date but not later than the
first day of the Company's fiscal quarter next following the Effective Date.

         (j) Compliance with Exchange Act. Comply with the requirements of the
Securities Exchange Act of 1934 ("Exchange Act") relating to the Company's
obligation to file periodic reports including annual reports on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form 8-K.

                                       10
<PAGE>
         5. Covenants of the Sales Agent. You covenant and agree with the
Company as follows;

         (a) Compliance with Laws. In connection with the offer and sale of
Shares, you shall comply with any applicable requirements of the Securities Act,
the Exchange Act and the applicable state securities or "blue sky" laws, and the
rules and regulations thereunder.

         (b) Accuracy of Information. No information supplied by you for use in
the Registration Statement will contain any untrue statements of a material fact
or omit to state any material fact necessary to make such information not
misleading.

         (c) No Additional Information. You will not give any information or
make any representation in connection with the offering of the Shares other than
that contained in the Prospectus.

         (d) Sale of Shares. You shall act as Sales Agent and solicit, directly
or through Selected Dealers and Selected Investment Advisors, purchasers of the
Shares only in the jurisdictions in which you have been advised by the Company
that such solicitations can be made and in which you, the soliciting Selected
Dealer or Selected Investment Advisor, as the case may be, are qualified to so
act.

         6. Payment of Expenses.

         (a) Expenses. Whether or not the transactions contemplated in this
Agreement are consummated or if this Agreement is terminated, the Company will
pay, in addition to the underwriting compensation described in Section 3(d)
(which you may retain up to the point of termination unless this agreement is
terminated without any shares being sold, in which case no such underwriting
compensation shall be paid), all fees and expenses incurred in connection with
the formation, qualification and registration of the Company and in marketing,
distributing and processing the Shares under applicable Federal and state law,
and any other fees and expenses actually incurred and directly related to the
offering and sale of the Shares and your other obligations under this Agreement,
including such fees and expenses as: (i) the preparing, printing, filing and
delivering of the Registration Statement (as originally filed and all amendments
thereto) and of any preliminary prospectus and of the Prospectus and any
amendments thereof or supplements thereto and the preparing and printing of the
Selected Dealer Agreements, this Agreement and Order Forms, including the cost
of all copies thereof and any financial statements or exhibits relating to the
foregoing supplied to you, Selected Dealers and Selected Investment Advisors in
quantities reasonably requested by you; (ii) the preparing and printing of the
solicitation material and related documents and the filing and/or recording of
such certified certificates or other documents necessary to comply with the laws
of the State of Maryland for the formation of a corporation and thereafter for
the continued good standing of a Company; (iii) the issuance and delivery of the
Shares, including any transfer or other taxes payable thereon; (iv) any escrow
arrangements in connection with the transactions described herein, including any
compensation or reimbursement to an escrow agent for its services as such; (v)
the qualification or registration of the Shares under state securities or "blue
sky" laws; (vi) the filing fees payable to the Commission and to the NASD; (vii)
the preparation and printing of advertising material in connection with and
relating to the Offering, including the cost of all sales

                                       11
<PAGE>
literature and investor and broker-dealer sales and information meetings; (viii)
the cost and expenses of counsel and accountants of the Company; and (ix) any
other expenses of issuance and distribution of the Shares. The Company shall
also reimburse directly all other entities for the expenses of the type
described in clauses (i) through (ix) of the preceding sentence incurred
directly by those entities at your request.

         (b) Sales Incentive Programs. Subject to the satisfactory completion of
any regulatory reviews and examinations which may be required, the prior review
and approval and the rules of the NASD (including Rule 2710 (c)(6)(B)(xiii)) and
approval by the Company or the Advisor, the Company, the Advisor and Affiliates
of the Advisor may establish sales incentive programs for your associated
persons or the associated persons of Selected Dealers only. Sales incentives
will be deemed to be additional underwriting compensation. The aggregate value
of incentives paid directly to an individual associated person during the
Offering will not exceed $100 in any given year.

         (c) Limitation. Notwithstanding the foregoing, the total underwriting
compensation paid to the Sales Agent and Selected Dealers from any source in
connection with the Offering pursuant to Section 3(d) hereof and this Section 6
shall not exceed 10% of the gross proceeds of the sale of the Shares, plus
one-half of one percent of such gross proceeds for bona fide due diligence
expenses. The Company and you agree to monitor the payment of all fees and
expense reimbursements to assure that this limit is not exceeded.

         7. Conditions of Your Obligations. Your obligations hereunder shall be
subject to the continued accuracy throughout the Effective Term of the
representations, warranties and agreements of the Company, to the performance by
the Company of its obligations hereunder and to the following terms and
conditions:

         (a) Effectiveness of Registration Statement. The Registration Statement
shall have initially become effective not later than 5:30 P.M., Eastern time, on
the date of this Agreement or such later date and time as shall be consented to
in writing by you and, at any time during the term of this Agreement, no stop
order shall have been issued or proceedings therefor initiated or threatened by
the Commission; and all requests for additional information on the part of the
Commission and state securities administrators shall have been complied with to
the reasonable satisfaction of your counsel and no stop order or similar order
shall be in effect in any jurisdiction in which the Company intends to offer
Shares (except in the Designated Jurisdictions).

         (b) Opinion of Counsel. At the Effective Date, you shall receive the
favorable opinion of Reed Smith LLP, counsel for the Company, dated the
Effective Date, addressed to you substantially to the effect that:

                  (i) the Company has been duly incorporated and validly exists
                  as a corporation in good standing under the laws of the State
                  of Maryland and is duly qualified to do business as a foreign
                  corporation and is in good standing in each other jurisdiction
                  in which it owns or leases property of a nature, or transacts
                  business of a type, that would make such qualification
                  necessary;

                                       12
<PAGE>
                  (ii) the Shares have been duly authorized and, after being
                  duly issued and sold in accordance with the terms set forth in
                  the Registration Statement, will be validly issued, fully paid
                  and non-assessable Shares; and no holder thereof is or will be
                  subject to personal liability for the obligations of the
                  Company solely by reason of being such a holder; such Shares
                  are not subject to the preemptive rights of any stockholder of
                  the Company, and all corporate action required to be taken for
                  the authorization, issue and sale of such Shares has been
                  validly and sufficiently taken;

                  (iii) this Agreement has been duly and validly authorized,
                  executed and delivered by or on behalf of the Company and
                  constitutes the valid, binding and enforceable agreement of
                  the Company except: (A) as may be subject to bankruptcy,
                  insolvency, reorganization, moratorium or other similar laws
                  relating to creditors' rights generally; (B) that the remedy
                  of specific performance and injunctive and other forms of
                  equitable relief may be subject to equitable defenses and to
                  the discretion of the court before which any proceedings may
                  be brought; and (C) that rights to indemnity may be limited by
                  federal or state securities laws or the public policy
                  underlying such laws;

                  (iv) the Registration Statement is effective under the
                  Securities Act and, to the best of such counsel's knowledge,
                  no stop order has been issued nor are proceedings for a stop
                  order pending or threatened under the Securities Act;

                  (v) the Advisory Agreement has been duly and validly
                  authorized, executed and delivered by or on behalf of the
                  Company and the Advisor and constitutes the valid, binding and
                  enforceable agreement of the Company and the Advisor except:
                  (A) as may be subject to bankruptcy, insolvency,
                  reorganization, moratorium or other similar laws relating to
                  creditors' rights generally; and (B) that the remedy of
                  specific performance and injunctive and other forms of
                  equitable relief may be subject to equitable defenses and to
                  the discretion of the court before which any proceedings may
                  be brought;

                  (vi) to the best of such counsel's knowledge and information,
                  there is no litigation or governmental proceeding pending or
                  threatened against the Company which might materially and
                  adversely affect the business, properties, condition
                  (financial or otherwise) or earnings of the Company, except as
                  referred to in the Prospectus, and no consent, approval,
                  authorization, registration, qualification, license or order
                  of any court, regulatory or other governmental agency or body
                  is required in connection with the consummation of the
                  transactions contemplated by this Agreement or the
                  Registration Statement and the Prospectus, except such as may
                  be necessary under the Securities Act or state "blue sky" or
                  securities laws in connection with the Offering or such as may
                  have been previously obtained;

                  (vii) neither the execution and delivery of this Agreement or
                  the Advisory Agreement nor compliance with the terms and
                  provisions hereof or thereof will, and consummation of the
                  transactions contemplated herein and in the Prospectus do not

                                       13
<PAGE>
                  and will not, result in any violation of the Articles or
                  bylaws, conflict with or result in a breach of or default (or
                  an event which with the giving of notice or lapse of time or
                  both would constitute a default) under, any of the terms,
                  provisions or conditions of any statute, order, judgment,
                  writ, injunction, decree, agreement, rule, regulation,
                  instrument or organizational document known to such counsel,
                  to which the Company is a party or, to the best of such
                  counsel's knowledge and information, by which the Company is
                  bound;

                  (viii) the Advisor has been duly formed and validly exists as
                  a corporation in good standing under the laws of the State of
                  Delaware with full power and authority to conduct the business
                  in which it proposes to engage as described in the Prospectus
                  and is duly qualified to do business and is in good standing
                  in each other jurisdiction in which it transacts business of a
                  type that would make such qualification necessary;

                  (ix) Carey Financial Corporation has been duly incorporated
                  and validly exists as a corporation in good standing under the
                  laws of the State of Delaware with full power and authority to
                  conduct the business in which it engages as described in the
                  Prospectus. Carey Financial Corporation is duly qualified to
                  do business as a foreign corporation and is in good standing
                  in each other jurisdiction in which it owns or leases property
                  of the nature or transacts business of a type, that would make
                  such qualification necessary;

                  (x) the statements in the Prospectus under the captions "Risk
                  Factors -- Failure to qualify as a REIT would adversely affect
                  our operations and ability to make distributions,"
                  "Description of Shares" and "United States Federal Income Tax
                  Considerations" insofar as they are, or refer to, statements
                  of law or legal conclusions, are correct and fairly present
                  the information required to be shown therein; and

                  (xi) at the time the Registration Statement was filed and at
                  the time it initially became effective, such Registration
                  Statement and the Prospectus (other than the financial
                  statements and the prior performance tables included therein,
                  as to which no opinion is rendered) complied as to form in all
                  material respects with the requirements of the Securities Act
                  and the Regulations and nothing came to such counsel's
                  attention which would lead such counsel to believe that either
                  the Registration Statement or the Prospectus, at the time they
                  initially became effective, contained any untrue statement of
                  a material fact or omitted to state a material fact required
                  to be stated therein or necessary to make the statements
                  therein, in light of the circumstances under which they were
                  made, not misleading.

In rendering the opinions set forth above, counsel may rely, as to matters of
law of states other than Pennsylvania, upon the opinions of other counsel, in
each case satisfactory in form and substance to you, and counsel shall state
such opinions are satisfactory in form and scope to them and that they believe
you may rely on them, and as to matters of fact, upon communications, statements
and certificates from public officials, and certifications and statements from
officers

                                       14
<PAGE>
of the Company.

         (c) Accountant's Letter. On the Effective Date you shall have received
from PricewaterhouseCoopers LLP a letter, in form and substance satisfactory to
you in all respects (including the nonmaterial nature of the changes and
decreases, if any, referred to in clause (iii) herein), advising that:

                  (i) they are independent certified public accountants as
                  required by the Securities Act and the Regulations and the
                  answer to Item 27 of the Registration Statement does not
                  require any statement relating to them;

                  (ii) it is their opinion that the financial statements and
                  supporting schedules filed as part of the Registration
                  Statement and those included in the Prospectus, and covered by
                  their opinions therein, comply as to form in all material
                  respects with the applicable accounting requirements of the
                  Securities Act and the Regulations relating to financial
                  statements in the registration statement on Form S-11;

                  (iii) based on the limited review set forth in detail in such
                  letter, nothing came to their attention that caused them to
                  believe that during the period from the date of the balance
                  sheet of the Company contained in the Prospectus to a
                  specified date not more than five (5) days prior to the date
                  on which the Registration Statement initially becomes
                  effective, there was any change in the stockholder's equity,
                  liabilities or net assets of the Company as compared with the
                  amounts shown in such balance sheet other than as such change
                  may have been contemplated by or set forth in the Registration
                  Statement or Prospectus;

                  (iv) based on procedures consisting of a reading of the
                  percentages and dollar amounts and related text set forth in
                  the Prospectus and the Registration Statement under the
                  captions "Prior Offerings by Affiliates" and "Prior
                  Performance Tables" (including Table VI included as an exhibit
                  to the Registration Statement), and all dollar amounts in the
                  related notes referenced therein, inquiry of officers and
                  other employees of the corporate general partner of Corporate
                  Property Associates, Corporate Property Associates 4, a
                  California limited partnership, Corporate Property Associates
                  6 - a California limited partnership and Corporate Property
                  Associates 9, L.P., (collectively the "CPA(R) Partnerships")
                  and the officers and other employees of Corporate Property
                  Associates 12 Incorporated, Corporate Property Associates 14,
                  Incorporated and Corporate Property Associates 15 Incorporated
                  (collectively the "CPA(R) REITs"), and counsel for the CPA(R)
                  Partnerships and the CPA(R) REITs, they have found such
                  percentages and dollar amounts to be in agreement with the
                  respective relevant accounting and financial records of the
                  CPA(R) Partnerships and CPA(R) REITs; and

                  (v) they have conducted such other procedures as may be
                  mutually agreed by the Company, Selected Dealers and Selected
                  Investment Advisors.

         (d) Stop Orders. On the Effective Date and during the Effective Term no
order

                                       15
<PAGE>
suspending the sale of the Shares in any jurisdiction (except the Designated
Jurisdictions) nor any stop order issued by the Commission shall have been
issued, and on the Effective Date and during the Effective Term no proceedings
relating to any such suspension or stop orders shall have been instituted, or to
the knowledge of the Company, shall be contemplated.

         (e) Information Concerning the Advisor. On the Effective Date, you
shall receive a letter dated the Effective Date from the Advisor, confirming
that: (1) the Advisory Agreement has been duly and validly authorized, executed
and delivered by the Advisor and constitutes a valid agreement of the Advisor
enforceable in accordance with its terms; (2) the execution and delivery of the
Advisory Agreement, the consummation of the transactions therein contemplated
and compliance with the terms of the Advisory Agreement by the Advisor will not
conflict with or constitute a default under its articles of incorporation or
bylaws or any indenture, mortgage, deed of trust, lease or other agreement or
instrument to which the Advisor is a party, or any law, order, rule or
regulation, writ, injunction or decree of any government, governmental
instrumentality or court, domestic or foreign, having jurisdiction over the
Advisor, or any of its property; (3) no consent, approval, authorization or
order of any court or other governmental agency or body has been or is required
for the performance of the Advisory Agreement by the Advisor, or for the
consummation of the transactions contemplated thereby; and (4) the Advisor is a
corporation duly formed, validly existing and in good standing under the laws of
the State of Delaware and is duly qualified to do business as a foreign
corporation in each other jurisdiction in which the nature of its business would
make such qualification necessary.

         If any of the conditions specified in this Section 7 shall not have
been fulfilled when and as required by this Agreement, this Agreement and all
your obligations hereunder may be canceled by you by notifying the Company of
such cancellation in writing or by telecopy at any time, and any such
cancellation or termination shall be without liability of any party to any other
party except as otherwise provided in Sections 3(d), 6, 8, 9 and 10 hereof.

         All certificates, letters and other documents referred to in this
Section 7 will be in compliance with the provisions hereof only if they are
reasonably satisfactory in form and substance to you and your counsel. The
Company will furnish you with conformed copies of such certificates, letters and
other documents, as you shall reasonably request.

         8. Indemnification.

         (a) Indemnification by the Company. Subject to the conditions set forth
below and those included in the Articles and Bylaws, the Company agrees to
indemnify and hold harmless you, each Selected Dealer, each Selected Investment
Advisor and each person, if any, who controls you, any such Selected Dealer or
Selected Investment Advisor within the meaning of Section 15 of the Securities
Act, from and against any and all loss, liability, claim, damage and expense
whatsoever (including but not limited to any and all expenses whatsoever
reasonably incurred in investigating, preparing for, defending against or
settling any litigation, commenced or threatened, or any claim whatsoever)
arising out of or based upon: (1) any untrue or alleged untrue statement of a
material fact contained (i) in the Registration Statement or the Prospectus (as
from time to time amended or supplemented) or any related preliminary
prospectus; or (ii) in any application or other document (in this Section 8
collectively called "application") executed

                                       16
<PAGE>
by the Company or based upon information furnished by the Company and filed in
any jurisdiction in order to qualify the Shares under the securities laws
thereof; or (2) the omission or alleged omission therefrom of a material fact
required to be stated therein or necessary to make the statements therein in
light of the circumstances under which they were made not misleading, unless any
such statement or omission was made in reliance upon and in conformity with
written information furnished to the Company by you expressly for use in the
Registration Statement or related preliminary prospectus or Prospectus or any
amendment or supplement thereof or in any of such applications or in any such
sales as the case may be. Notwithstanding the foregoing, the Company shall not
indemnify the Sales Agent for any losses, liabilities or expenses arising from
or out of an alleged violation of federal or state securities laws unless: (i)
there has been a successful adjudication on the merits of each count involving
alleged securities law violations as to the particular indemnitee, (ii) such
claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the particular indemnitee or (iii) a court of competent
jurisdiction approves a settlement of the claims against a particular indemnitee
and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised
of the position of the Commission and of the published position of any state
securities regulatory authority in which securities of the Company were offered
or sold as to indemnification for violations of Securities laws.

         (b) Indemnification by You. Subject to the conditions set forth below,
you agree to indemnify and hold harmless the Company, each of its directors,
those of its officers who have signed the Registration Statement and each other
person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act to the same extent as the foregoing indemnity from the Company
but only with respect to an untrue statement or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact in the
Registration Statement (as from time to time amended or supplemented) or
Prospectus, or any related preliminary prospectus, any application made in
reliance upon or, in conformity with, written information furnished by you
expressly for use in such Registration Statement or Prospectus or any amendment
or supplement thereto, in any related preliminary prospectus or in any of such
applications.

         (c) Procedure for Making Claims. Each indemnified party shall give
prompt notice to each indemnifying party of any claim or action (including any
governmental investigation) commenced against it in respect of which indemnity
may be sought hereunder, but failure to so notify any indemnifying party shall
not relieve it from any liability that it may have otherwise than on account of
this indemnity agreement. The indemnifying party, jointly with any other
indemnifying parties receiving such notice, shall assume the defense of such
action with counsel chosen by it and approved by the indemnified parties
defendant in such action, unless such indemnified parties reasonably object to
such assumption on the ground that there may be legal defenses available to them
which are different from or in addition to those available to such indemnifying
party. Any indemnified party shall have the right to employ a separate counsel
in any such action and to participate in the defense thereof but the fees and
expenses of such counsel shall be borne by such party unless such party has
objected in accordance with the preceding sentence, in which event such fees and
expenses shall be borne by the indemnifying parties. Except as set forth in the
preceding sentence, if an indemnifying party assumes the defense of such action,
the indemnifying party shall not be liable for any fees and expenses of

                                       17
<PAGE>
separate counsel for the indemnified parties incurred thereafter in connection
with such action. In no event shall the indemnifying parties be liable for the
fees and expenses of more than one counsel for all indemnified parties in
connection with any one action or separate but similar or related actions in the
same jurisdiction arising out of the same general allegations or circumstances.
The indemnity agreements contained in this Section 8 and the warranties and
representations contained in this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party and shall survive any termination of this Agreement. An indemnifying party
shall not be liable to an indemnified party on account of any settlement of any
claim or action effected without the consent of such indemnifying party. The
Company agrees promptly to notify you of the commencement of any litigation or
proceedings against the Company in connection with the issue and sale of the
Shares or in connection with the Registration Statement or Prospectus.

         (d) Contribution. Subject to the limitations set forth in Section 8(a)
hereof and in order to provide for just and equitable contribution where the
indemnification provided for in this Section 8 is unavailable to or insufficient
to hold harmless an indemnified party under subsection (a) or (b) above in
respect of any losses, liabilities, claims, damages or expenses (or actions in
respect thereof) referred to therein, except by reason of the terms thereof, the
Company on the one hand and you on the other shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, liabilities,
claims, damages or expenses (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company on
the one hand and you on the other from the Offering based on the public offering
price of the Shares sold and the Selling Commissions received by you with
respect to such Shares sold. If, however, the allocation provided by the
immediately preceding sentence is not permitted by applicable law, then each
applicable indemnifying party, in lieu of indemnifying such indemnified party,
shall contribute to the amount paid or payable by such indemnified party in such
proportion as is appropriate to reflect not only such relative benefits referred
to above but also the relative fault of the Company on the one hand and you on
the other in connection with the statements or omissions which resulted in such
losses, liabilities, claims, damages or expenses (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and you on the other shall be
deemed to be in the same proportion as the total proceeds from the Offering (net
of underwriting commissions but before deducting expenses) received by the
Company bear to the total underwriting commissions received by you. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a
material fact relates to information supplied by the Company on the one hand or
you on the other. The Company agrees with you that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by pro
rata allocation, or by any other method of allocation which does not take
account of the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified party as a result of the
losses, liabilities, claims, damages or expenses (or action in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), you shall not be required to contribute any
amount in excess of the amount by which the total price of the Shares sold by
you to the public exceeds the amount of any damages which you have otherwise
been required to pay by reason of

                                       18
<PAGE>
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act or Section 10(b) of the Securities Exchange Act of
1934, as amended) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section, any
person that controls you within the meaning of Section 15 of the Securities Act
shall have the same right to contribution as you, and each person who controls
the Company within the meaning of Section 15 of the Securities Act shall have
the same right to contribution as the Company.

         9. Representations and Agreements to Survive. All representations,
warranties and agreements contained in this Agreement or in certificates shall
remain operative and in full force and effect regardless of any investigation
made by any party, and shall survive the Termination Date.

         10. Effective Date, Term and Termination of this Agreement.

         (a) This Agreement shall become effective as of the date it is executed
by all parties hereto. You or the Company may elect to terminate this Agreement
prior to the time the Registration Statement is declared effective by the
Commission without liability of any party to any other party, except as provided
in Section 10(e) hereof.

         (b) You shall have the right to terminate this Agreement at any time
during the Effective Term without liability of any party to any other party
except as provided in Section 10(e) hereof if: (i) any representations or
warranties hereunder shall be found to have been incorrect or misleading; or
(ii) the Company shall fail, refuse or be unable to perform any condition of its
obligations hereunder, or (iii) the Prospectus shall have been amended or
supplemented despite your objection to such amendment or supplement as provided
in subsection (a) of Section 2 hereof, or (iv) all trading on the New York Stock
Exchange or the American Stock Exchange shall have been suspended, or minimum or
maximum prices for trading generally shall have been fixed, or maximum ranges
for prices for all securities shall have been required, on the New York Stock
Exchange or the American Stock Exchange by such exchanges or by order of the
Commission or any other governmental authority having jurisdiction; or (v) the
United States shall have become involved in a war or major hostilities; or (vi)
a banking moratorium shall have been declared by a state or federal authority or
person; or (vii) the Company shall have sustained a material or substantial loss
by fire, flood, accident, hurricane, earthquake, theft, sabotage or other
calamity or malicious act which, whether or not said loss shall have been
insured, will in your opinion make it inadvisable to proceed with the offering
and sale of the Shares; or (viii) there shall have been, subsequent to the dates
information is given in the Registration Statement and the Prospectus, such
change in the business, properties, affairs, condition (financial or otherwise)
or prospects of the Company whether or not in the ordinary course of business or
in the condition of securities markets generally as in your sole judgment would
make it inadvisable to proceed with the offering and sale of the Shares, or
which would materially adversely affect the operations of the Company.

         (c) If this Agreement shall be terminated for reason of any failure on
the part of the Company to perform any undertaking or satisfy any condition of
this Agreement to be performed

                                       19
<PAGE>
or satisfied by them pursuant to Section 7 hereof, you may elect to terminate
this Agreement without liability of any party to any other party except as
provided in Section 10(e) hereof.

         (d) The Company shall have the right to terminate this Agreement
without cause on 60 days' notice in writing to you without penalty, subject to
liability as provided in Section 10(e) hereof.

         (e) In the event this Agreement is terminated by any party pursuant to
Sections 10(a), 10(b), 10(c) or 10(d) hereof, the Company shall pay all expenses
of the Offering as required by Section 6 hereof and no party will have any
additional liability to any other party except for any liability which may exist
under Section 8 hereof; and provided further, that if you terminate your
participation in the Offering in other than good faith, the Company shall not be
responsible for the expenses described in clause (vii) of subsection (a) of
Section 6 hereof other than expenses of counsel to the Selected Dealers or
Selected Investment Advisors. In no event will the Company be liable to
reimburse you for expenses other than your actual out-of-pocket expenses.

         (f) If you elect to terminate this Agreement as provided in this
Section 10, you shall notify the Company promptly by telephone or telegram with
confirmation by letter. If the Company elects to terminate this Agreement as
provided in this Section 10, the Company shall notify you promptly by telephone
or telegram with confirmation by letter.

         11. Notices.

         (a) All communications hereunder, except as herein otherwise
specifically provided, shall be in writing and if sent to you shall be mailed,
or personally delivered, to you at 50 Rockefeller Plaza, New York, New York
10020, and if sent to the Company shall be mailed, or personally delivered, to
the Company at 50 Rockefeller Plaza, New York, New York 10020, Attention: Mr.
Wm. Polk Carey and Mr. Gordon DuGan.

         (b) Notice shall be deemed to be given by you to the Company or by the
Company to you when it is mailed or personally delivered as provided in
subsection (a) of this Section 11.

         12. Parties. This Agreement shall inure solely to the benefit of, and
shall be binding upon you, the Company, and the controlling persons, directors
and officers referred to in Section 8 hereof, and their respective successors,
legal representatives and assigns, and no other person shall have or be
construed to have any legal or equitable right, remedy or claim under or in
respect of or by virtue of this Agreement or any provision herein contained,
except that the Selected Dealers and Selected Investment Advisors shall have the
rights granted to them pursuant to Section 8 hereof. Notwithstanding the
foregoing, this Agreement may not be assigned without the consent of the parties
hereto.

         13. Construction. This Agreement shall be construed in accordance with
the laws of the State of New York applicable to agreements to be made and
performed entirely within such state.

         14. Finders' Fees. You shall have no liability for any finders' fees
owed in connection with the transactions contemplated by this Agreement.

                                       20
<PAGE>
         15. Severability. Any provision of this Agreement, which is invalid or
unenforceable in any jurisdiction, shall be ineffective to the extent of such
invalidity or unenforceability without invalidating or rendering unenforceable
the remaining provisions hereof, and any such invalidity or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provisions in
any other jurisdiction.

         16. Additional Offerings. The terms of this Agreement may be extended
to cover additional offerings of shares of the Company by the execution by the
parties hereto of an addendum identifying the shares and registration statement
relating to such additional offering. Upon execution of such addendum, the terms
"Shares", "Offering", "Registration Statement" and "Prospectus" set forth herein
shall be deemed to be amended as set forth in such addendum.

         If the foregoing correctly sets forth the understanding between you and
the Company, please so indicate in the space provided on the attached page for
that purpose, whereupon this letter shall constitute a binding agreement between
us.

                                     CORPORATE PROPERTY ASSOCIATES 16 -
                                     GLOBAL INCORPORATED

                                     By:
                                         ----------------------------------

                                     Its:
                                          ---------------------------------

Accepted as of the
Date first above
Written:

CAREY FINANCIAL CORPORATION

By:
    -------------------------------------

Its:
     ------------------------------------

Exhibit Index

                                       21
<PAGE>
Exhibit A - Selected Dealer Agreement
Exhibit B - Selected Investment Advisor Agreement

                                       22

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